STAND

STAND. COM. REP. NO. 61-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2157

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred H.B. No. 2157 entitled:

"A BILL FOR AN ACT RELATING TO THE FUNDING OF A HABITAT CONSERVATION PLAN,"

begs leave to report as follows:

The purpose of this bill is to provide landowners with additional financial flexibility to assure their performance in carrying out the obligation required under an approved habitat conservation plan. This bill:

(1) Gives the landowner the option of providing an irrevocable letter of credit, insurance, surety bond, or other similar financial tools; and

(2) Requires that all types of assurance funding be deposited into the Endangered Species Trust Fund (Trust Fund) instead of the Wildlife Revolving Fund (Revolving Fund).

The Department of Land and Natural Resources, The Nature Conservancy of Hawaii, Koa Timber, Inc., and Hawaii Leeward Planning Conference testified in support of this measure.

Currently, a landowner must either post a bond or deposit a sum of money to assure that the habitat conservation plan will be carried out and monitored. The problem is that few bonding companies issue natural resource management bonds. Moreover, it may be difficult for some small companies or landowners to come up with a cash payment.

Directing the assurance fund to the Trust Fund is appropriate, because this fund is specifically set up to address the management of endangered species. On the other hand, the Revolving Fund focuses on hunting and wildlife management.

Your Committee has amended this bill by:

(1) Exempting amounts deposited into the Trust Fund by an applicant as security for habitat conservation plan funding from central service and administrative expenses of government; and

(2) Rewording the purpose section accordingly.

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2157, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2157, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water, Land Use, and Hawaiian Affairs,

		____________________________ EZRA R. KANOHO, Chair