STAND. COM. REP. NO.  1447

Honolulu, Hawaii

                , 2007

RE:   S.B. No. 162

      S.D. 1

      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 S.B. No. 162, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Designate the Friends of Iolani Palace as the State of Hawaii Museum of Monarchy History; and

     (2)  Exempt the Friends of Iolani Palace from the standards and conditions related to the recipient of funds contained in Chapter 42F, Hawaii Revised Statutes (HRS).

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

     Your Committee has amended this bill by:

(1)  Clarifying that Iolani Palace, instead of the Friends of Iolani Palace, is designated as the State of Hawaii Museum of Monarchy History;

(2)  Further explaining in the purpose section the histories of both Iolani Palace and the Friends of Iolani Palace;

(3)  Expressing the Legislature's intent to support Iolani Palace through an unspecified appropriation in the state budget;

(4)  Requiring the Friends of Iolani Palace to submit annual reports to the Legislature on the use of state funds; and

(5) Authorizing the Comptroller and the State Auditor to examine the use of state funds appropriated to the State of Hawaii Museum of Monarchy History.

     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 S.B. No. 162, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 162, S.D. 1, 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