STAND. COM. REP. NO. 1044-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2914
                                     S.D. 1
                                     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
S.B. No. 2914, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE SPECIAL FUNDS OF THE LAND
     DIVISION,"

begs leave to report as follows:

     The purpose of this bill is to allow for the deposit of
moneys collected from lessees of public lands within industrial
parks into the Special Land and Development Fund (Fund). This
bill also abolishes the Industrial Special Fund and transfers the
fund balance and liabilities to the Special Land and Development
Fund.

     The Department of Land and Natural Resources (DLNR)
testified in support of this bill.

     Your committee finds that in response to the current fiscal
condition of the State and the need to generate general fund
savings, DLNR is proposing to convert its Land Division operating
budget, including all personnel, from general to special funds.
This bill makes the statutory changes necessary to implement this
plan and accompanies the Administration's budget request to
convert this program to special funds.

     The Land Division generates revenues through the leasing of
public lands.  Presently, some of these revenues are deposited
into two special funds.  Revenues from non-ceded lands and fees,

 
 
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                                 Page 2

 
fines and other administrative charges under chapter 171, Hawaii
Revised Statutes, are deposited into the Fund.  Revenues from
designated industrial parks developed and managed by the Land
Division are deposited into the Industrial Park Special Fund.

     Act 160, Session Laws of Hawaii 1999, expanded the uses of
the Fund to allow for the planning, development, management,
operations or maintenance of all lands and improvements under the
control and management of the Board of Land and Natural
Resources, which includes designated industrial parks.  

     Your Committee amended this bill by removing language
regarding Article XII, section 6, of the State Constitution, to
avoid duplication of the transfer of moneys.

     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 S.B.
No. 2914, S.D. 1, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2914, S.D.
1, 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