Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred S.B. No. 633 entitled:

begs leave to report as follows:

The purpose of this bill is to appropriate an unspecified sum to match federal funds for the Hawaii Forestry and Communities Initiative (HFCI).

Testimony in support of the bill was received from the Department of Hawaiian Home Lands, Department of Agriculture, Department of Land and Natural Resources, Hawaii Forest Industry Association, Hawaii Society of American Foresters, Hawaii Agriculture Research Center, and College of Tropical Agriculture and Human Resources of the University of Hawaii.

Your Committee finds that HFCI was formed in April 1997, to coordinate the State's mission to diversify Hawaii's economy with sustainable forest practices through public and private partnerships, job training, and capacity building projects. Over 40 state departments, agencies, and other organizations participate in HFCI. Since 1995, over 65,000 acres statewide have been publicly committed to commercial forestry, reflecting the efforts of the State to encourage forestry as a rural land use alternative. Forestry is an agricultural crop that has real economic potential. A 1993 report estimated that 600 acres of native trees from renewable forests result in a value of production totaling about $29,000,000.

Although $1,250,000 has been granted the State and HFCI since 1997, only $350,000 has been appropriated by the Legislature over the same period to match it. The appropriation will be matched by the USDA Forest Service, and, by cash and in-kind contributions from the private sector. This infusion of funds will diversify and strengthen the state's economy by expanding the forest industry.

Your Committee has amended this measure by inserting the appropriation amount of $200,000.

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. 633, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 633, H.D. 1, and be referred to the Committee on Finance.