STAND. COM. REP. NO. 36

                                Honolulu, Hawaii
                                                  , 1999

                                RE:  S.B. No. 1061
                                     S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

   Your Committee on Economic Development, to which was
referred S.B. No. 1061 entitled: 

   "A BILL FOR AN ACT RELATING TO IRRIGATION WATER
   DEVELOPMENT,"

begs leave to report as follows:
   
   The purpose of this measure is to assess only cultivatable
lands within the irrigation district boundaries.

   Your Committee received testimony in support of this measure
from the Department of Agriculture.

   Your Committee finds that current assessments are based on
total acreage, and do not take into account restrictions on the
use of the acreage.  More recent environmental laws and resource
management regulations, such as Special Management Areas, the
Coastal Zone Management Act, conservation district uses, and
underground injection line regulations, restrict or prevent
cultivation of stream beds, dry gulches, and others.

   Your Committee agrees that if the water user cannot derive
income from the acreage, the restricted portions should not be
included in the assessed revenue base.

   Your Committee has amended this measure to make a technical,
nonsubstantive amendment for the purpose of style.


 
a                                                    SB1061 SD1
 
                                STAND. COM. REP. NO. 36
                                Page 2


   As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1061, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1061,
S.D. 1, and be referred to the Committee on Ways and Means.

                                Respectfully submitted on
                                behalf of the members of the
                                Committee on Economic
                                Development,



                                ______________________________
                                LORRAINE R. INOUYE, Chair

 
a                                                    SB1061 SD1