Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred H.B. No. 1308, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish permanent adequate funding for land conservation.

The Department of Agriculture, the Department of Land and Natural Resources, the University of Hawaii Environmental Center, two council members from the Hawaii County Council, the County of Kauai Planning Department, the American Farmland Trust, the Big Island Farm Bureau, the Conservation Council for Hawaii, the Hanalei Watershed Hui, the Hawaii Agriculture Research Center, the Hawaii Invasive Species Management and Education Corporation, Kauai Public Land Trust, the Kona Land Trust, the League of Women Voters of Honolulu, Malama Maha'ulepu, the Maui Coastal Land Trust, Maui Land and Pineapple Company, Inc., Moanalua Gardens Foundation, Naaluhu Main Street, the Nature Conservancy, Pahala Plantation Cottages, the Rocky Mountain Institute, the Sierra Club, Sustain Hawaii, the Trust for Public land, and one hundred eleven individuals submitted testimony in support of this measure. The Department of Taxation and the Land Use Research Foundation of Hawaii submitted testimony in opposition to this measure. The Tax Foundation of Hawaii submitted comments on this measure.

Your Committee finds that Hawaii's natural resources are vital to the State's economy, culture, and quality of life. However, there is very little funding allocated to protect and

manage Hawaii's precious natural and cultural assets. Thus, this measure provides a better-equipped funding mechanism for land conservation and allows grants to acquire interests in lands having a value as a resource to the State.

Your Committee finds that a companion measure, S.B. No. 1897, S.D. 1, was heard and approved by this Committee and was subsequently heard and approved, with amendments, by the Committee on Ways and Means. Your Committee has amended this measure to reflect the provisions in S.B. No. 1451, S.D. 2, by:

Your Committee also notes that federal funds are available to this State annually to purchase lands for conservation. However, state funds must be dedicated to contribute to a portion of the purchase price of the property in order to receive the federal funds. Some of these programs will match $3 for every dedicated state dollar. Thus, your Committee amended this measure to appropriate funds from the general fund and the Land Conservation fund, created by this measure, to purchase two conservation properties, the Honu'apu estuary lands in Ka'u on the island of Hawaii and land located in Moanalua valley on the island of Oahu, in conjunction with the appropriate federal programs.

Your Committee further noted a suggestion to contemplate using another funding source, rather than the conveyance tax, for the Land Conservation fund. Your Committee specifically noted a suggestion that money be used from taxes collected from the tourism industry to pay for the conservation of the State's lands. Thus, your Committee requests that the Committee on Ways and Means examine alternate ways of funding the Land Conservation funds and determine the most adequate funding source.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1308, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1308, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.