STAND. COM. REP. NO. 314

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 438
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Water and Land Use, to which was referred
H.B. No. 438 entitled: 

     "A BILL FOR AN ACT RELATING TO WATERSHED MANAGEMENT,"

begs leave to report as follows:

     The purpose of this bill is to create a watershed protection
trust fund for watershed management activities.  

     Your Committee received testimony as follows:

     1.   Board of Land and Natural Resources, Nature
          Conservancy, Sierra Club Hawaii Chapter, in support; 

     2.   County of Kauai Department of Water, City and County of
          Honolulu Board of Water Supply, in opposition; and

     3.   University of Hawaii Environmental Center, offering
          comment.  

     Your Committee finds that watershed lands are the most
important source of water for Hawaii's population.  Establishment
of a fund will enable Hawaii to manage and sustain its watershed
resources and ensure a source of water for the future.  

     Your Committee revised the bill by:  

     1.   Transferring jurisdiction over watershed management
          from the Commission on Water Resource Management to the
          Department of Land and Natural Resources Forest
          Reserves; 

     2.   Changing the name of the fund to the watershed
          protection special fund; 

 
                                 STAND. COM. REP. NO. 314
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     3.   Removing references to the watershed surcharge; and 

     4.   Making technical, non-substantive changes for the
          purposes of style and clarity.  

     As affirmed by the record of votes of the members of your
Committee on Water and Land Use that is attached to this report,
your Committee is in accord with the intent and purpose of H.B.
No. 438, as amended herein, and recommends that it pass Second
Reading in the form attached hereto as H.B. No. 438, H.D. 1, and
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water and Land
                                   Use,



                                   ______________________________
                                   Romy M. Cachola, Chair