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.C.R. No. 200, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to request an audit of the Department of Land and Natural Resources (DLNR).

The Office of Hawaiian Affairs, the Hanalei Watershed Hui, the Hawaii Boaters Political Action Association, Hawaii's Thousand Friends, Kahea-the Hawaiian-Environmental Alliance, the Sierra Club, the Windward Ahupua'a Alliance, and two individuals submitted testimony in support of this measure. The Department of Land and Natural Resources and the Nature Conservancy submitted comments on this measure.

The State Constitution provides that "the State and its political subdivisions shall conserve and protect Hawaii's natural beauty and all natural resources including land, water, air, minerals and energy sources." However, years of continuing budgetary restrictions and personnel reductions imposed by both executive and legislative actions have significantly affected DLNR's ability to fulfill its responsibilities.

Audits over the past two decades conducted by the State Auditor (Auditor) have focused on programs, finances, and organizational units within the DLNR and have revealed weaknesses in the management of DLNR's responsibilities over the State's natural resources; however, there has never been a department-wide management audit of DLNR.

Recently, there has been a growing concern that managerial vacancies, the large number of vacant operating positions, and chronic lack of funding may accelerate an irreparable and irretrievable loss of public trust resources. Thus, this measure requests the Auditor to conduct an audit of DLNR that addresses specific policies, procedures, and performance indicators.

Your Committee finds that the scope of the audit is too broad and should be narrowed to address significant jurisdictional, procedural, and administrative problems raised with regard to the DLNR's Division of Conservation and Resources Enforcement's fiscal and management practices. Accordingly, your Committee has amended this measure by replacing its contents with the contents of S.C.R. No. 147, S.D. 1. As amended, this measure requests the Auditor to conduct a financial and management audit of the DLNR's Division of Conservation and Resources Enforcement.

Your Committee noted that DLNR would like the Auditor not only to identify, assess, and evaluate problem areas within its Division of Conservation and Resources Enforcement but also to suggest recommendations for improving problem areas. As such, your Committee believes that suggestions for improving problem areas is important and should be done.

Your Committee further noted in testimony from DLNR that it was told by the courts to not implement bail schedules. Thus, the bail schedules did not "expire."

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 concurs with the intent and purpose of H.C.R. No. 200, H.D. 1, as amended herein, and recommends its adoption in the form attached hereto as H.C.R. No. 200, H.D. 1, S.D. 1.