STAND. COM. REP. NO. 1414-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2108
                                     S.D. 2
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2108, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE PUBLIC LAND TRUST,"

begs leave to report as follows:

     The purpose of this bill is to require the Legislative
Auditor to initiate and coordinate an inventory of lands within
the public land trust (Trust) by:      

     (1)  Facilitating the identification of lands within the
          trust, including their assets and natural resources;
          and

     (2)  Working with the Department of Land and Natural
          Resources (DLNR), the Office of Hawaiian Affairs (OHA),
          and other state agencies in completing a comprehensive
          inventory and mapping database of all lands within the
          Trust.

     OHA testified in support of this measure and commented
positively on the ongoing discussions with the Auditor and
legislators.  DLNR submitted comments.

     Delayed for years, your Committee finds that work on a
comprehensive and accurate inventory must begin immediately to
ensure that:


 
 
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     (1)  The State meets its fiduciary responsibility as the
          trustee of the Trust; and

     (2)  The obligations under section 5(f) of the Admission Act
          are fulfilled.

     Your Committee has amended this measure by deleting its
substance and inserting language directing the Auditor to:

     (1)  Establish a comprehensive Trust inventory of all lands
          within section 5(f) of the Admission Act, which will
          identify all lands of the Trust and document title
          history for those parcels alienated or acquired since
          Statehood in 1959;

     (2)  Facilitate the establishment of a Trust information
          system consisting of the Trust inventory and detail
          information about each of the parcels; and

     (3)  Consult with OHA on:

          (a)  Developing recommendations to the Legislature;

          (b)  Specifications for obtaining contractors'
               services; and

          (c)  Executing all other responsibilities imposed by
               this measure.

     Your Committee is aware that with varying degrees of
accuracy, comprehensiveness, and detail, inventories of the Trust
lands are currently available at and used by DLNR, OHA, the
Department of Hawaiian Home Lands, the Airports and Harbors
Division of the Department of Transportation, and other federal,
state, and county agencies.

     As such, your Committee has further amended this measure by
directing the Auditor to prescribe the approach or detailed
directions for consolidating and developing the Trust inventory
and Trust information system without duplicating past efforts.

     Your Committee notes that the narrowed scope of the
inventory is attributed in part to current fiscal constraints.
and that an incremental, manageable approach will ensure a more
timely completion in planned stages.  The inventory is not
intended to preclude subsequent legislative actions to obtain
information relating to:

     (1)  Inventory of public lands prior to 1959;

 
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     (2)  Modernization of public lands; 

     (3)  Revenues generated from public lands; and

     (4)  Whether lease rents are being set at appropriate
          levels.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2108, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 2108,
S.D. 2, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair