Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Economic Development and Business Concerns, to which was referred S.B. No. 643, S.D. 2, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to acknowledge that the State has a trust obligation to ensure the preservation, sustainable use, and equitable sharing of benefits of Hawaii's biological resources by:

The Hawaii State Commission on the Status of Women, Ahahui Siwila Hawaii o Kapolei, Women's Coalition, Life of the Land, Oahu Council of the Association of Hawaiian Civic Clubs, Hawaii Chapter of the Sierra Club, Ilioulaokalani Coalition, Waikiki Hawaiian Civic Club, Ewa-Puuloa Hawaiian Civic Club, First Unitarian Church, Queen Emma Hawaiian Civic Club, King Kamehameha Hawaiian Civic Club, and several concerned individuals submitted testimony in support of this measure.

The Native Hawaiian Legal Corporation, Office of Hawaiian Affairs, and Hawaii Audubon Society supported this measure with amendments. The Department of Agriculture, Hawaii Agriculture Research Center, and DBEDT supported the intent of this measure with amendments. The University of Hawaii (UH) supported the intent of this measure with concerns. The Maui County Farm Bureau and Hawaii Farm Bureau Federation opposed this measure.

Your Committee recognizes that the key issue at-hand is the claim that the State and native Hawaiians have to the biological resources of the State. Your Committee also recognizes the importance of stating this claim without causing unintended consequences, such as to the agricultural research and development community.

Your Committee recognizes that although an agreement on this measure has been reached between the native Hawaiian community and UH, an agreement has not yet been reached with the agricultural community. Due to its importance, your Committee encourages further discussion on this issue as it moves through the legislative process so that a resolution may be reached.

Your Committee notes that UH's claim in the Diversa contract that it has the rights to "provide ... material to Diversa without the violation of any applicable statute, regulation, agency rule, administrative or judicial order, or contract" is in potential conflict with the public trust clause in Article 12, section 4 of the State Constitution.

Your Committee has amended this bill by:

As affirmed by the record of votes of the members of your Committee on Economic Development and Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 643, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 643, S.D. 2, H.D. 2.