Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1097
                                        S.D. 2

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


     Your Committee on Ways and Means, to which was referred S.B.
No. 1097, S.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to provide additional sources of
revenue for the forest stewardship program.

     Specifically, this bill requires that all revenues from the:

     (1)  Harvest of non-native forest products; or

     (2)  Sale of tree seedlings from state nurseries;

be deposited into the forest stewardship fund to provide for the
replanting, managing, and maintaining of timber management areas.

     This bill also requires the Board of Land and Natural
Resources to identify reforestation and related management issues
along with annual reporting of the financial condition of the
forest stewardship fund.

     Your Committee finds that if the forest industry is to be
viable and help to replace lost revenues from sugar, it must be
carefully financed and managed.  Allowing the revenues from the
sale of forest products to be deposited into the forest

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                                   STAND. COM. REP. NO. 606
                                   Page 2

stewardship fund is an important step to provide a self-
sustaining industry.

     Your Committee has amended this measure by deleting the
appropriation and making other technical nonsubstantive

     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 is in accord with the intent and purpose of S.B. No.
1097, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 1097,
S.D. 2.

                                 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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