STAND. COM. REP. NO. 1176-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.C.R. No. 39
                                     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.C.R. No. 39 entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF
     LAND AND NATURAL RESOURCES TO WORK WITH SERVICE PROVIDERS
     AND THE DEPARTMENT OF HEALTH TO DETERMINE A REASONABLE
     RENTAL FEE TO IMPROVE INFRASTRUCTURE ON THE WAIMANO TRAINING
     SCHOOL AND HOSPITAL GROUNDS,"

begs leave to report as follows:

     The purpose of the resolution is to request the Department
of Land and Natural Resources (DLNR) to negotiate with service
providers and the Department of Health (DOH) to determine a
reasonable rental fee to improve the infrastructure on the
Waimano training school and hospital grounds.

     Kokua Mau Center, Home and Community Services of Hawaii, and
a concerned mother of a Kokua Mau Center client testified in
support of this resolution.

     DOH testified in support of the intent of this resolution.

     DLNR testified in opposition to this resolution.

     Your Committee finds that rental rates charged by the DOH
were not sufficient to cover the day-to-day operating and
maintenance cost of running the facility.  The rental rates are
not set at the present time since the rates must be reflective of
operational costs, maintenance costs, market rates and occupancy

 
 
                                 STAND. COM. REP. NO. 1176-00
                                 Page 2

 
rates.  The providers were asked to budget approximately $1 per
square foot as a possible rental rates when DLNR takes over the
facilities on July 1, 2000.

     Your Committee further finds that DLNR is willing to take
the initiative in negotiating with the parties affected but in
the face of continued budget cuts, DLNR does not have the funds
to support the missions of other State departments, by
subsidizing private agencies which provide health services.
Without legislative appropriations to pay for the necessary
costs, DLNR has no recourse but to charge the Waimano agencies.

     Your Committee revised this resolution by:

     (1)  Excluding for-profit organizations;

     (2)  Deleting the rental fee amount since it reflects only
          Kokua Mau Work Center;

     (3)  Deleting language relating to what DOH has done to
          maintain the Waimano infrastructure;

     (4)  Replacing alternatives for DLNR to consider with
          language asking that DLNR take the initiative to
          facilitate discussions with the parties involved; and

     (5)  Making technical, non-substantive changes for the
          purpose of style and clarity.

     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 concurs with the intent and purpose of H.C.R. No.
39, as amended herein, and recommends that it be referred to the
Committee on Finance, in the form attached hereto as H.C.R. No.
39, H.D. 1.

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



                                   ______________________________
                                   ROMY M. CACHOLA, Chair