STAND. COM. REP. NO. 689

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1248
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Energy and Environmental Protection, to
which was referred H.B. No. 1248 entitled: 

     "A BILL FOR AN ACT RELATING TO NATURAL AND CULTURAL
     RESOURCES,"

begs leave to report as follows:

     The purpose of this bill is to establish both the Hawaii
environmental authority (HEA) and an environmental protection
special fund (Fund).  The HEA would oversee the State's
environmental protection policies and strategies and would
utilize monies from the Fund, which would be partially funded by
a portion of the Transit Accommodation Tax (TAT).  

     The intent of this bill is to implement the governor's
recommendations to devise an executive board, to better manage
the state's natural and cultural resources for the tourism
industry.   

     Testimony in support of this measure was submitted by:
Hawaii Thousand Friends, Vegetarian Society of Honolulu, Hawaii
Green Party, University of Hawaii Environmental Center, Hawaii
Audubon Society, Sierra Club, the No Name Coalition, Na Leo Pohai
and one individual.  The Department of Land and Natural Resources
supports the intent of the bill, but has reservations regarding
the dollar-for-dollar TAT allocation between the Hawaii Tourism
Authority and the HEA.  The Department of Taxation had no
position on this measure.


 
 
                                 STAND. COM. REP. NO. 689
                                 Page 2

 
     The State Auditor notes that linkage does occur between
tourists paying for environmental protection and the benefits
received.  However, at present, it is still unclear whether the
Fund will be self-sustaining, due to undetermined costs for some
HEA activities.

     Your Committee acknowledges the interrelationship between
the health of the natural environment and the visitor industry.
The future state of the visitor industry is dependent upon how
well managed the "product" is; in this case the product is our
natural resources and native culture.  To garner available
private and federal grant monies for natural resource management,
the state must increase its funding share.  Your Committee would
like discussion on this measure to continue, and such discussion
will involve many diverse interests and concerns.  
 
     As affirmed by the record of votes of the members of your
Committee on Energy and Environmental Protection that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 1248 and recommends that it pass Second
Reading and be referred to the Committee on Tourism.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Energy and
                                   Environmental Protection,



                                   ______________________________
                                   HERMINA M. MORITA, Chair