STAND. COM. REP. NO.  564

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 840

      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. 840 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 direct the Auditor to conduct a procurement audit of the Land Division of the Department of Land and Natural Resources to examine all land leases and revocable permits issued and managed by the Division.

Your Committee received testimony in support of this measure from the Building Industry Association of Hawaii, Hawaii Fishermen's Alliance for Conservation and Tradition, Inc., and several individuals.  The Department of Land and Natural Resources, Office of the Auditor, and The Chamber of Commerce Hawaii submitted comments.

     Your Committee has amended this measure by:

     (1)  Specifying that the requested audit should be a performance audit, rather than a procurement audit;

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

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

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

     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. 840, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 840, 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