STAND. COM. REP. NO.  553

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 959

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Water, Land, Ocean Resources & Hawaiian Affairs, to which was referred H.B. No. 959 entitled:

"A BILL FOR AN ACT RELATING TO IOLANI PALACE,"

begs leave to report as follows:

     The purpose of this bill is to provide some relief for the costs of operations and maintenance of the Iolani Palace from the restrictions on obtaining funding by exempting the Iolani Palace from the qualifying standards and conditions related to the receipt of funds contained in Chapter 42F, Hawaii Revised Statutes (HRS), provided that the conditions apply to recipients and providers contracting with the Palace.

     The Friends of Iolani Palace, the Association of Hawaiian Civic Clubs, the Hawaiian Civic Club of Hilo, and the Pearl Harbor Hawaiian Civic Club testified in support of this bill.  The Office of Hawaiian Affairs supported the intent of the measure.  The Department of Land and Natural Resources (DLNR) provided comments.

     Your Committee has amended this bill by:

     (1)  Changing the effective date to July 1, 2050, to                    encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for style,         clarity, and consistency.

     Your Committee notes that the Iolani Palace is state-owned under the jurisdiction of DLNR State Parks Division, but maintained under the stewardship of the Friends of Iolani Palace.  Therefore, unlike the Bishop Museum, which is also exempted from Chapter 42F, HRS, placement of this exemption in Chapter 6E, HRS, may be inappropriate.  Your Committee requests the subsequent referral committee, the Committee on Finance, to make further inquiry into the appropriate chapter in which to place the provisions of this bill to ensure the Friends of Iolani Palace is able to take advantage of this exemption.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Ocean Resources & Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 959, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 959, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Ocean Resources & Hawaiian Affairs,

____________________________

KEN ITO, Chair