STAND. COM. REP. NO. 1063

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 806
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred H.B. No. 806, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO LAND EXCHANGE,"

begs leave to report as follows:

     The purpose of this measure is to approve the exchange of
public lands in North Kona for private lands along the Kona coast
to develop a new motor speedway industry.

     The Hawaii International Motor Speedway testified in support
of the measure.  The Department of Business, Economic
Development, and Tourism and the Department of Land and Natural
Resources had no objections to the measure.  Six area residents
opposed passage of the measure.

     Your Committee finds that Hawaii International Motor
Speedway owns land in South Kohala and is willing to exchange the
title to these lands for public lands in North Kona.

     Your Committee also finds that the proposed land exchange
will allow for the development of a raceway on otherwise unusable
land near the airport in North Kona, helping the island of Hawaii
capitalize on the rapidly growing motorsports industry.

     Your Committee has amended the measure to state that the
authority granted to the Department of Land and Natural Resources

 
a                                                     HB806 SD1
 
                                   STAND. COM. REP. NO. 1063
                                   Page 2


to negotiate and enter into a land exchange agreement with Hawaii
International Motor Speedway shall expire on June 30, 2000.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 806, H.D. 2, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 806, H.D. 2, 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, and
                                   Hawaiian Affairs,



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
a                                                     HB806 SD1