Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 424
                                     H.D. 2

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


     Your Committee on Finance, to which was referred H.B. No.
424, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Protect investments already made in forestry; and 

     (2)  Allow the planting and maintenance of additional
          commercial timber;

by applying moneys accrued from the harvest of forest products
from state lands and the sale of tree seedlings from state

     Specifically, this bill:

     (1)  Provides for the reforestation and maintenance of
          harvested plantation areas on state lands;

     (2)  Enhances the management of public forest reserves to
          improve Hawaii's natural environment and economy; and

     (3)  Develops environmental education and training programs.

     The Department of Land and Natural Resources, the Department
of Hawaiian Home Lands, the Big Island Farm Bureau, the Hawaii

                                 STAND. COM. REP. NO. 1004
                                 Page 2

Forest Industry Association, the Hawaii Farm Bureau Federation,
the Nature Conservancy of Hawaii, C.A.M. Resource Management, and
the Hawaii Agriculture Research Center testified in support of
this measure.  The Board of Trustees of the Office of Hawaiian
Affairs testified in support of the intent of this measure.

     Your Committee has amended this measure by making technical,
nonsubstantive amendments for clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
424, H.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as H.B. No. 424, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,

                                   DWIGHT Y. TAKAMINE, Chair