STAND. COM. REP. NO. 2829

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2574
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred H.B. No. 2574, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE SPECIAL LAND AND
     DEVELOPMENT FUND,"

begs leave to report as follows:

     The purpose of this measure is to direct the moneys
generated by the disposition of mineral and water rights into the
Department of Land and Natural Resources' Special Land and
Development Fund and to authorize the Commission on Water
Resource Management to use the moneys contained in that fund for
its programs.

     The Department of Land and Natural Resources supported this
measure.  The Office of Hawaiian Affairs testified in opposition
to the measure.

     Your Committee finds that since 1994, the Commission on
Water Resource Management's budget has been reduced by eighteen
percent.  While the Special Land and Development Fund accounts
for roughly six percent of the Commission's funding, the
remaining ninety-three percent of its budget is derived from
state general funds.  As such, during these fiscally trying
times, the Commission's budget has constantly been a target for
further cutbacks.


 
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                                   STAND. COM. REP. NO. 2829
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     Your Committee believes that a consistent source of funding
through the redirection of moneys generated by the disposition of
mineral and water rights into the Special Land and Development
Fund would allow the Commission to not only base more of its
budget needs on that fund, but also enable it to fully carry out
its responsibilities and to implement monitoring, management,
enforcement, and resource protection programs/activities that are
necessary to sustain the State's limited water resources.

     Your Committee has amended the bill by changing the
effective date of the measure from July 1, 2000, to July 1, 3000.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 2574, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 2574, H.D. 1, S.D. 1, and be referred to the
Committee on Ways and Means.

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



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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