Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred S.B. No. 1164 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify that moneys deposited into the forest stewardship fund from the conveyance tax may be used to administer the program and to appropriate $20,000 from the fund for this purpose.

Your Committee received testimony in support of this measure from the Department of Land and Natural Resources (DLNR) and the Hawaii Forest Industry Association.

Your Committee finds that since its enactment in 1991, the administrative costs of the forest stewardship program have been funded through federal grants. While demand for the program has increased, federal funds have declined and future grants are uncertain.

Your Committee is supportive of the forest stewardship program, and finds that the proposed appropriation is modest. However, your Committee is concerned that there are many demands for the moneys in the fund and suggests that DLNR report back to the Committee on the expenditures from the forest stewardship fund.

As affirmed by the record of votes of the members of your Committee on Water, Land, Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1164 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.