Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 424
                                        H.D. 2
                                        S.D. 1

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


     Your Committees on Economic Development and Water, Land, and
Hawaiian Affairs, to which was referred H.B. No. 424, H.D. 2,


beg leave to report as follows:

     The purpose of this measure is to authorize the Department
of Land and Natural Resources (DLNR) to deposit moneys from the
harvest of forest products from forest reserves and the sale of
tree seedlings from state nurseries into the forest stewardship
fund for:

     (1)  Reforestation and maintenance of timber management

     (2)  Enhancement of the management of public forest reserves
          with an emphasis on restoring degraded koa forests; and

     (3)  Development of environmental education and training
          programs pertaining to sustainable forestry.

     Your Committees received testimony in support of this
measure from the DLNR, Hawaii Farm Bureau Federation, the Hawai`i
Forest Industry Association, the Hawaii Society of American
Foresters, and C.A.M. Resource Management.  The University of
Hawaii Environmental Center and the Office of Hawaiian Affairs
submitted comments.

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                                   STAND. COM. REP. NO. 1190
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     Your Committees find that DLNR faces a number of
difficulties in managing public forest reserves.  Management
plans for the areas are outdated, and noxious weeds have taken
over many areas of the forests, while increased uses and
expectations are putting more pressure on forest resources.  At
the same time, general fund support for the forest products
program has dropped over forty-five percent since 1991.

     Your Committees further find that despite the legal mandate
to make the forest reserve system as self sustaining as possible,
current law does not provide for the distribution of receipts
from forest products revenue to fund enhancement of these areas
or support efforts to achieve sustainable forest management.

     Your Committees are supportive of the DLNR's efforts to
improve management of Hawaii's forests.  Your Committees have
amended this measure to:

     (1)  Restrict the harvest of native forest products to those
          from degraded forests as defined in Section 186-5.5,
          Hawaii Revised Statutes, within forest reserves; and

     (2)  Make nonsubstantive, technical amendments.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Water, Land, and Hawaiian
Affairs that are attached to this report, your Committees are in
accord with the intent and purpose of H.B. No. 424, H.D. 2, as
amended herein, and recommend that it pass Second Reading in the
form attached hereto as H.B. No. 424, 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
                                   Committees on Economic
                                   Development and Water, Land,
                                   and Hawaiian Affairs,

____________________________       ______________________________

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