Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 643, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to prohibit the sale or transfer of biological resources and biological diversity on trust lands.

In addition, this measure exempts the sale or commercial processing of fish, marine and aquaculture products, or agricultural products, including edibles and ornamental flowers, and is not intended to infringe on the traditional and customary rights exercised by native Hawaiians.

This measure also establishes a temporary Bioprospecting Advisory Commission, which is placed within the Office of Hawaiian Affairs for administrative purposes, to develop a comprehensive plan for the preservation and use of the biological diversity and biological resources of the trust lands. This measure appropriates funds to the Office of Hawaiian Affairs to enable the temporary Bioprospecting Advisory Commission to fulfill its mandate.

Your Committee finds that Hawaii's biological diversity and biological resources are assets of the public trust that are culturally, economically, medicinally, spiritually, and otherwise significant to the general public and native Hawaiians. These resources of the trust lands, which the Hawaiian people have customarily used in accordance with their traditional, cultural, and subsistence practices, are also of great potential economic benefit in the areas of medicine, scientific research, biotechnology, and commercial development for native Hawaiians and the general public.

Your Committee finds, however, that the State is experiencing a tremendous loss of biodiversity due to the conversion of natural habitat for development, environmental degradation, and nonsustainable consumptive practices. Your Committee finds that this measure is necessary to fulfill the State's trust obligation to ensure the preservation, sustainable use, and equitable sharing of the benefits of Hawaii's biological resources.

Your Committee further finds that the University of Hawaii currently: seeks to maintain ownership and control of biological and genetic resources collected by faculty members over years of scholarship and conservation; and works to encourage and pursue joint partnerships with local, mainland, and international research institutions and private entities for research and development of these valuable resources for the benefit of the people of Hawaii and the world.

Your Committee finds that this measure, as currently drafted, would bring to an end all collaborations that the University of Hawaii has entered into in this regard. Furthermore, it will effectively terminate biological research at the University and throughout the State because it would prevent the University's researchers from transferring biological materials to other cooperating researchers, both in Hawaii and around the world. Your Committee further finds that most of the biological materials that are available for screening at the University are not endemic, indigenous, or introduced by the ancient Hawaiians, but in fact come from all around the world.

Accordingly, your Committee has amended this measure by:

1. Exempting the University of Hawaii from the prohibition on the sale or transfer of biological resources and biological diversity on trust lands;
2. Adding a penalty provision for violating this prohibition;
3. Changing the effective date of the bill in order to promote continuing discussion on this measure; and
4. Making technical nonsubstantive changes for the purposes of clarity and consistency.

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. 643, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 643, S.D. 2.