STAND. COM. REP. NO. 455-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2578
                                     H.D. 1




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. 2578 entitled: 

     "A BILL FOR AN ACT RELATING TO THE NATURAL AREA RESERVE
     FUND,"

begs leave to report as follows:

     The purpose of this bill is to authorize the one-time
transfer of $500,000 from the Natural Area Reserve Fund,
determined to be in excess of the requirements of the Fund, to
the General Fund for fiscal year (FY) 2000-2001. 

     The Department of Land and Natural Resources (DLNR)
testified in support of this bill.
 
     Testimony in opposition to this bill was received by the
Hawaii Audubon Society and the Earthjustice Legal Defense Fund.

     Your Committee finds that in anticipation of the State
experiencing serious fiscal pressures due to annual expenditures
exceeding annual revenues, the Administration has been looking
into making fundamental and sweeping changes in state government
in order to bring expenditures in line with revenues.  The
Governor has instructed all state departments to partake in a
statewide program review to identify and prioritize the
objectives for which agencies exist.  Part of this exercise has
resulted in departments identifying program areas where budget
adjustments can be made while still providing basic services.


 
 
                                 STAND. COM. REP. NO. 455-00
                                 Page 2

 
     Your Committee has revised this bill by changing the
appropriation to $1 for the purpose of continued discussion.

     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. 2578, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 2578, H.D. 1, 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