STAND. COM. REP. NO. 2022

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2514
                                        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 S.B. No. 2514 entitled: 

     "A BILL FOR AN ACT RELATING TO WATERSHED PROTECTION,"

begs leave to report as follows:

     The purpose of this bill is to protect the State's
watersheds by providing a dedicated revenue source for that
purpose.

     Specifically, the measure accomplishes this objective by
establishing a Watershed Protection Tax.  The tax imposed is a 5
cent per one thousand gallon tax on domestic water use to be
collected by each county's water agency.  The proceeds of this
tax would be deposited into a Watershed Protection Trust Fund
which would be used to fund projects or activities that manage
and protect watershed management areas.  Qualifying projects and
activities include watershed maintenance and enhancement projects
within the watershed management areas, erosion prevention and
control, reforestation, alien species control and eradication,
exclusion of stock, and control of feral animals.

     The measure also establishes a Watershed Protection Trust
Fund Review Board to identify watershed management areas.

     Testimony in support of the bill was received from the
Department of Land and Natural Resources (provided that certain
amendments be made), the Nature Conservancy of Hawaii, the

 
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Wailuku Agribusiness Company, Inc., the Ala Wai Watershed
Association, and four private citizens.

     The Honolulu Board of Water Supply, the County of Kauai's
Department of Water, and a private citizen submitted testimony in
opposition to the measure.

     The Tax Foundation provided comments on the bill.

     Your Committee recognizes that fresh water is not an
infinite resource and that its high quality, quantity, and
sustainability are essentially linked to the existence of
forested watersheds.  By establishing a dedicated source of funds
to protect, preserve, and enhance important watershed areas, your
Committee believes that the State will be better able to ensure
that these essential and sustainable sources of fresh water will
exist for future generations' use.

     Your Committee has amended the measure by:

     (1)  Changing references to "watershed management areas" to
          "water recharge and protection areas" to broaden the
          scope of protection of the State's water resources;

     (2)  Altering the composition of the Watershed Protection
          Trust Fund Review Board by lowering the number of
          members with degrees in either hydrology or geology to
          two, and adding two members with degrees in either
          biology or ecology;

     (3)  Amending the qualifications of the members discussed in
          paragraph (2) to allow persons with degrees in related
          fields to serve on the Watershed Protection Trust Fund
          Review Board; and

     (4)  Making numerous technical, nonsubstantive amendments
          for purposes of style and clarity.

     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 S.B. No. 2514, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 2514, S.D. 1, and be referred to the Committee on Ways and
Means.


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



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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