STAND. COM. REP. NO. 929

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 423
                                        H.D. 1
                                        S.D. 1




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

Sir:

     Your Committee on Water, Land, and Hawaiian Affairs, to
which was referred H.B. No. 423, H.D. 1, entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION TO MATCH FEDERAL
     FUNDS FOR THE HAWAII FORESTRY AND COMMUNITIES INITIATIVE,"

begs leave to report as follows:

     The purpose of this measure is to appropriate funds to match
federal funds for the Hawaii Forestry and Communities Initiative.

     Testimony in support of the measure was received from the
Departments of Land and Natural Resources, Agriculture, and
Hawaiian Home Lands, the Nature Conservancy of Hawaii, the Hawaii
Farm Bureau, the Big Island Farm Bureau, the Hawaii Society of
American Foresters, the Hawaii Forest Industry Association, the
Forestry Management Consultants-Hawaii, and C.A.M. Resource
Management.

     Your Committee finds that according to the Department of
Land and Natural Resources, Hawaii's forest industry is a
productive, value adding industry that generates net revenues of
$29,000,000, and employs over eight hundred people.  Through the
Hawaii Forestry and Communities Initiative program, the State has
the opportunity to assist the private sector in expanding the
forest industry, not only by leasing state land for such
activities, but also with job training and helping with
inventory, marketing, and research.


 
a                                                     HB423 SD1
                                   STAND. COM. REP. NO. 929
                                   Page 2


     Your Committee amended the measure by:

     1.   Deleting the appropriated amount; and

     2.   Making technical, nonsubstantive changes for the
          purposes of style and clarity.

     Your Committee believes that supporting the Hawaii Forestry
and Communities Initiative will play an important role in
bringing focus and direction to the State's forest industry.

     As affirmed by the record of votes of the members of your
Committee on Water, Land, and Hawaiian Affairs that is attached
to this report, your Committee is in accord with the intent and
purpose of H.B. No. 423, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 423, H.D. 1, S.D. 1, and be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water, Land, and
                                   Hawaiian Affairs,



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
a                                                     HB423 SD1