STAND. COM. REP. NO. 6

Honolulu, Hawaii

RE:    S.B. No. 5

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred S.B. No. 5 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LAND TRUST REVENUES,"

begs leave to report as follows:

     The purpose of this measure is to appropriate moneys out of the funds derived from the public land trust described under section 10-3(1), Hawaii Revised Statutes, for the repair and maintenance of Iolani Palace.

     Testimony in support of this measure was submitted by the Department of Land and Natural Resources, the Office of Hawaiian Affairs, the Friends of Iolani Palace, and the Daughters of Hawaii.  The Department of the Attorney General submitted comments on the measure.

     Iolani Palace is a Hawaiian national treasure and the only official state residence of royalty in the United States.  During the monarchy period, the Palace was the center of social and political activity in the Kingdom of Hawaii.  The restoration and preservation of the palace continues today through the efforts of concerned individuals and interest groups, so that the Palace may maintain its grandeur and historic significance.

     Under section 10-3(1), Hawaii Revised Statutes, the Office of Hawaiian Affairs is authorized to hold and use a portion of the funds derived from the public land trust for the betterment of the conditions of Native Hawaiians.  Your Committee finds that Iolani Palace is a significant cultural asset for Native Hawaiians and their history, and funding from the public land trust for the repair and maintenance of the Palace fulfils the purpose of improving conditions for Native Hawaiians.

     Being that the intent of this measure is to provide funding from the public land trust for the repair and maintenance of royal palaces with Native Hawaiian cultural and historic significance, your Committee has amended this measure by broadening its scope to include Queen Emma Summer Palace in Nuuanu Valley on Oahu and Hulihee Palace in Kailua-Kona on the Big Island.  Your Committee notes that there are three palaces located in Hawaii, Iolani Palace, Queen Emma Summer Palace, and Hulihee Palace, which are all royal palaces with Native Hawaiian cultural significance.  Your Committee also notes that, according to the testimony submitted by the Daughters of Hawaii, Hulihee Palace sustained damage due to the October, 2006, earthquake and is in need of repair and maintenance.  Although the Daughters of Hawaii have requested and applied for federal emergency funding and have established a private fundraising campaign, supplemental funding will assist in covering the repair costs that are estimated in the hundreds of thousands of dollars.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 5, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 5, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Agriculture, and Hawaiian Affairs,

____________________________

RUSSELL S. KOKUBUN, Chair