STAND. COM. REP. NO.  563

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 839

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Water & Land, to which was referred H.B. No. 839 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF LAND AND NATURAL RESOURCES,"

begs leave to report as follows:

The purpose of this measure is to require the Auditor to conduct a procurement audit of the Department of Land and Natural Resources to review the procurement activity of its Management and Administration Division, Division of Forestry and Wildlife, and Special Land and Development Fund.

The Hawaii Fishermen's Alliance for Conservation and Tradition, Inc., Building Industry Association of Hawaii, and many individuals supported this measure.  The Chamber of Commerce Hawaii supported the intent of this measure.  The Department of Land and Natural Resources and Office of the Auditor provided comments.

     Your Committee has amended this measure by:

     (1)  Clarifying that the Auditor shall conduct a performance audit, rather than a procurement audit, of the Department of Land and Natural Resources' Management and Administration Division, Division of Forestry and Wildlife, and Special Land and Development Fund, including a review of contracts, grants, and memoranda of understanding entered into, awarded by, or involving the identified divisions and fund;

     (2)  Changing the appropriation to an unspecified amount; and

     (3)  Changing the effective date to July 1, 2050 to encourage further discussion.

     Should your Committee on Finance deliberate on this measure further, your Committee on Water and Land respectfully requests that it consider appropriating $300,000 for the hiring of two analysts, one senior analyst, and consultants as necessary, to conduct the audit of the Department of Land and Natural Resources pursuant to this Act.

     As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 839, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 839, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

RYAN I. YAMANE, Chair