STAND. COM. REP. NO. 1694

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.C.R. No. 195
                                        




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

Sir:

     Your Committee on Ways and Means, to which was referred
S.C.R. No. 195 entitled:

     "SENATE CONCURRENT RESOLUTION AUTHORIZING THE LEASE OF BOTH
     FAST AND SUBMERGED LANDS AT KEAUHOU, NORTH KONA, ON THE
     ISLAND OF HAWAII TO A PRIVATE ENTITY FOR MAINTENANCE
     PURPOSES,"

begs leave to report as follows:

     The purpose of this Concurrent Resolution is to allow the
Board of Land and Natural Resources to grant easements to
specified lands, subject to prior approval by the Governor and
authorization by the Legislature, for maintenance purposes.

     In 1988, a seawall in Keauhou, North Kona, was severely
damaged by high storm surf.  The Blue Chip Corporation (BCC)
gunnited the seaward face of the wall to stabilize the damage.
In the process, some gunnite was accidentally slurried on the
rock outcrops below the seawall.  BCC later received a notice of
a special management area violation from the County of Hawaii and
a notice of violation from the Department of Land and Natural
Resources for application of gunnite without a permit.

     The Office of Environmental Quality Control determined that
staining the gunnited areas black would be the best mitigative
solution.  BCC and DLNR are working out the final requirements of
the settlement, which will require BCC to periodically stain the

 
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                                   STAND. COM. REP. NO. 1694
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gunnited area.  Your Committee finds that BCC will need to obtain
an easement to allow it to come onto state land as necessary to
stain the gunnited area, and that the provisions of this
Concurrent Resolution will assist in resolving this situation.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee concurs with the intent and purpose of S.C.R. No. 195,
and recommends its adoption.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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