STAND. COM. REP. NO. 2659

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 35
                                        




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. 35 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION TO MATCH FEDERAL
     FUNDS FOR THE HAWAII FORESTRY AND COMMUNITIES INITIATIVE,"

begs leave to report as follows:

     The purpose of this bill is to provide a matching
appropriation to the Hawaii Forestry and Communities Initiative
(HFCI).

     Your Committee finds that HFCI has made great strides in
diversifying Hawaii's economy by creating quality jobs in the
forestry industry.  HFCI's partnership approach leverages the
resources of agencies and communities throughout the State to
improve its efficiency and effectiveness.  HFCI's involvement is
helping forestry evolve in Hawaii with a community focus that
encourages outside investments.

     HFCI, however, is dependent on matching federal and state
assistance to continue its successful programs.  Although HFCI
has been able to match federal grants through in-kind services
over the past two years, it has been hard pressed to complete key
projects without state funds.  The following projects could be
fully implemented in fiscal year 2000-2001 with state assistance:


 
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                                   STAND. COM. REP. NO. 2659
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     Project                              Cost

     Industry analysis                    $ 23,000
     UHH classes                          $ 30,000
     Best Management Practice Training    $ 39,000
     Kapapala Survey                      $  8,000
     Inventory                            $100,000
                    Total:                $200,000

     Additionally, the lack of state funds has placed Hawaii's
congressional delegation, which has been instrumental in securing
additional federal funds through the U.S. Forest Service, in an
awkward and sensitive position when requesting federal funding.

     Inasmuch as your Committee finds substantial merit with HFCI
and its programs, certain issues with respect to matching federal
funding requirements remain unresolved.  In order to allow for
further discussion on this measure while additional research is
conducted on this matter, your Committee is recommending passage
of the bill with a blank dollar amount.

     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. 35
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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