CONFERENCE COMMITTEE REPORT NO. 51

                            Honolulu, Hawaii
                                            , 2000

                            RE:   S.B. No. 2513
                                  S.D. 1
                                  H.D. 1
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 2513, S.D. 1, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO CONVEYANCE TAX," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to authorize the use of a
portion of conveyance tax proceeds to fund watershed management
projects.

     Your Committee finds that with over half of Hawaii's
remaining natural lands in private ownership, the Legislature in
1991, established the natural area partnership program and the
forest stewardship program to provide incentives for private
landowners to provide long-term protection of important natural
resources on private lands.  These incentives were in the form of
state matching funds to landowners willing to dedicate their
lands to conservation.

 
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     The Legislature also provided for a permanent, dedicated
source of funding for the programs by earmarking twenty-five per
cent of the conveyance tax revenues for these programs.  The
Legislature's intent was to enhance private participation in the
protection and management of conservation lands.

     Since the inception of the natural area partnership and
forest stewardship programs, significant efforts have given rise
to another innovative public-private undertaking involving the
collaboration of major landowners and stakeholders to protect
thousands of acres of critical watershed areas.  This effort
began with the formation of the East Maui Watershed Partnership
in 1991, followed by West Maui Watershed Partnership in 1998, and
Koolau Watershed Partnership and East Molokai Watershed
Partnership in 1999.  Collectively, these partnerships involve
some 260,000 acres of land and include an array of major
landowners and government agencies including the United States
Fish & Wildlife Services, National Park Services, the Department
of Land and Natural Resources, the Department of Hawaiian Home
Lands, county boards of water supply, and numerous other
agencies.

     Your Committee believes that, just as the natural area
reserves system needed funds to accomplish its goals, so too does
the protection of critical watershed areas.

     Upon further consideration, your Committee has amended the
measure by amending both versions of section 247-7, Hawaii
Revised Statutes, one that will expire on June 30, 2001, and the
other that will take effect on July 1, 2001.  Your Committee has
also amended the effective date of the measure to reflect the
insertion of the prospective change in statutory language and
made technical amendments for purposes of clarity and style.

     Your Committee finds that the measure, as received by your
Committee, amended the version of section 247-7, Hawaii Revised
Statutes, that is to be repealed on June 30, 2001, and amended
section 2 of Act 170, Session Laws of Hawaii 1998, which contains
a version of section 247-7, Hawaii Revised Statutes, that will
take effect on July 1, 2001.  Regardless of this amendment, the
intent of the House Draft 1 was substantially similar to the
Senate Draft 1.  However, the methodology used in drafting the
House Draft 1 (amending section 2 of Act 170, Session Laws of
Hawaii 1998 and the effective date language contained in section
5 of the House Draft 1) made interpretation of the measure's
intent unclear.

     Your Committee believes that the amended measure is more
readily understood and accomplishes the same purpose.

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     As affirmed by the record of votes of the managers of your
Committee on Conference that is attached to this report, your
Committee on Conference is in accord with the intent and purpose
of S.B. No. 2513, S.D. 1, H.D. 1, as amended herein, and
recommends that it pass Final Reading in the form attached hereto
as S.B. No. 2513, S.D. 1, H.D. 1, C.D. 1.

                                   Respectfully submitted on
                                   behalf of the managers:

  ON THE PART OF THE HOUSE           ON THE PART OF THE SENATE




_____________________________     _______________________________
Rep. ROMY M. CACHOLA              Sen. COLLEEN HANABUSA
Co-Chair                          Co-Chair



_____________________________     _______________________________
Rep. EZRA R. KANOHO               Sen. BOB NAKATA
Co-Chair                          Co-Chair

 
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