STAND. COM. REP. NO. 2594

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2513
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred
S.B. No. 2513, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CONVEYANCE TAX,"

begs leave to report as follows:

     The purpose of this measure is to authorize the use of a
portion of conveyance tax proceeds to fund watershed management
projects.

     Your Committee finds that with over half of Hawaii's
remaining natural lands in private ownership, the Legislature in
1991, established the natural area partnership program and the
forest stewardship program to provide incentives for private
landowners to provide long-term protection of important natural
resources on private lands.  These incentives were in the form of
state matching funds to landowners willing to dedicate their
lands to conservation.  

     The Legislature also provided for a permanent, dedicated
source of funding for the programs by earmarking twenty-five per
cent of the conveyance tax revenues for these programs.  The
Legislature's intent was to enhance private participation in the
protection and management of conservation lands.

     Since the inception of the natural area partnership and
forest stewardship programs, significant efforts have given rise
to another innovative public-private undertaking involving the
collaboration of major landowners and stakeholders to protect

 
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thousands of acres of critical watershed areas.  This effort
began with the formation of the East Maui Watershed Partnership
in 1991, followed by the West Maui Watershed Partnership in 1998,
and the Koolau Watershed Partnership, and East Molokai Watershed
Partnership in 1999.  Collectively, these partnerships involve
some 260,000 acres of land and include an array of major
landowners and government agencies including the United States
Fish and Wildlife Services, National Park Services, the
Department of Land and Natural Resources, the Department of
Hawaiian Home Lands, county boards of water supply, and numerous
other agencies.

     Your Committee believes that, just as the natural area
reserves system needed funds to accomplish its goals, so too does
the effort to protect critical watershed areas.  

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of
S.B. No. 2513, S.D. 1, and recommends that it pass Third Reading.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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