STAND. COM. REP. NO. 171-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2309
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Water and Land Use, to which was referred
H.B. No. 2309 entitled: 

     "A BILL FOR AN ACT RELATING TO LAND EXCHANGE IN NORTH KONA,
     HAWAII,"

begs leave to report as follows:

     The purpose of this bill allows the exchange of private and
public lands located in North Kona, Hawaii.

     The state proposes to enter into a land exchange with Earl
E. Bakken involving private lands located on the coast of Kiholo
Bay, and nine acres of public lands located inland of Kiholo Bay.
The coastal property to be acquired by the State is surrounded by
state lands and has significant recreational, environmental, and
cultural value to the people.  The acquisition of this property
would consolidate the State's holdings around Kiholo Bay and
improve public access from mauka public lands to the shoreline.
It also represents a critical parcel in the future development of
a State Park at Kiholo Bay.  The inland property to be acquired
by Bakken are of significantly less public value due to their
very limited recreational resources, but is located adjacent to
Bakken's current residence.

     Your Committee received testimony as follows:
     
     1.   The Hawaii Leeward Planning Conference, four private
          citizens, and a representative of the Bakkens, in
          support;

     2.   The Office of Hawaiian Affairs, in opposition; and

     3.   The Department of Land and Natural Resources (DLNR),
          which took no position.

 
                                 STAND. COM. REP. NO. 171-00
                                 Page 2

 
     Your Committee finds that this land exchange is an unusual
circumstance that requires special legislation to deviate from
the general policy for reasons that have a benefit to the public.
Dr. Earl E. Bakken has improved the health care industry in the
Kona/Kohala Coast of the island of Hawaii.  He has improved the
overall health care available to residents and visitors in the
area.  Therefore, the proposed land exchange is an attempt to
improve Dr. Bakken's personal safety, security and emergency
response, as the Bakkens are reaching a time in their lives that
may require some assistance. 

     In accordance with the statutes, this public land exchange
must be of substantially equal value to that of the private land.
In addition, it is your Committee's intent that the lands
acquired would take on the status of ceded lands, thereby keeping
the corpus of the Public Land Trust whole.

     A Conservation Use District Application for this land
exchange request has been accepted by DLNR for processing with a
public hearing tentatively scheduled for March.

     Chapter 171, Hawaii Revised Statues, provides for
legislative oversight after the land exchange has been completed.

     As affirmed by the record of votes of the members of your
Committee on Water and Land Use that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 2309 and recommends that it pass Second Reading and be
referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water and Land
                                   Use,



                                   ______________________________
                                   ROMY M. CACHOLA, Chair