STAND. COM. REP. NO. 1019-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2529
                                     S.D. 1
                                     H.D. 1




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

Sir:

     Your Committee on Water and Land Use, to which was referred
S.B. No. 2529, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO A LAND EXCHANGE IN NORTH
     KONA, HAWAII,"

begs leave to report as follows:

     The purpose of this bill is to approve the land exchange
between the State and Earl E. Bakken for lands located in the
Kiholo Bay vicinity of North Kona on the island of Hawaii and
repeals authorization on June 30, 2001.

     The state proposes to enter into a land exchange with Earl
E. Bakken involving private lands located on the coast of Kiholo
Bay, and nine acres of public lands located inland of Kiholo Bay.
The coastal property to be acquired by the State is surrounded by
state lands and has significant recreational, environmental, and
cultural value to the people.  The acquisition of this property
would consolidate the State's holdings around Kiholo Bay and
improve public access from mauka public lands to the shoreline.
It also represents a critical parcel in the future development of
a State Park at Kiholo Bay.  The inland property to be acquired
by Bakken is of significantly less public value due to its very
limited recreational resources, but is located adjacent to
Bakken's current residence.

     The Office of Hawaiian Affairs (OHA) testified in opposition
to this bill.

 
 
                                 STAND. COM. REP. NO. 1019-00
                                 Page 2

 
     The Department of Land and Natural Resources (DLNR) offered
comments and takes no position on this bill.

     Your Committee finds that in processing this land exchange
request, a Conservation Use District Application (CDUA) must be
approved by the Board of Land and Natural Resources (BLNR).  As
part of the CDUA, numerous requirements must be met before legal
documents are fully executed.  Throughout this process, the
general public is given the opportunity to comment on the
proposal.

     The CDUA was accepted on December 10, 1999, for processing.
The 180-day processing period on the CDUA expires on June 7,
2000. DLNR has sent out the CDUA and draft environmental
assessment (DEA) for agency comment to DLNR divisions, OHA, the
Department of Health, and the County of Hawaii Planning
Department for comment. In accepting the CDUA, a public hearing
was held in Kona in February.  No contested case hearing was
requested as a result of that hearing.

     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 S.B.
No. 2529, S.D. 1, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2529, S.D.
1, 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