Honolulu, Hawaii

, 2019


RE: H.B. No. 1326

H.D. 2





Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii




Your Committee on Finance, to which was referred H.B. No. 1326, H.D. 1, entitled:




begs leave to report as follows:


The purpose of this measure, as received by your Committee, is to address the disposition of revocable water rights permits by extending the availability of one-year holdover permits, which may be obtained for a maximum of three years, and Departmental reporting requirements by seven years.


For the purpose of a public hearing on this measure, your Committee circulated a proposed H.B. No. 1326 H.D. 2 (Proposed Draft), and notified the public that it would be accepting testimony on this proposal which preserves the content of the measure as received by your Committee and adds new language that:


(1) Amends section 171-58(c), Hawaii Revised Statutes, to allow for ten consecutive one-year holdovers of water permits; and


(2) Requires the automatic continuation of water permits during the pendency of contested cases until the completion of the proceedings.

The Department of Agriculture; Maui Fire Department; Maui County Farm Bureau; Hawaii Farm Bureau; East Kauai Water Users' Cooperative; Hawaiian Electric Company, Inc. and its subsidiary utilities Maui Electric Company, Limited and Hawaii Electric Light Company, Inc.; Hawaii Crop Improvement Association; Kau Mahi, LLC; Kau Soil and Water Conservation District Board; Mahi Pono; Hawaii Cattlemen's Council; Land Use Research Foundation of Hawaii; The Chamber of Commerce Hawaii; Go Maui, Inc.; Kauai Island Utility Cooperative; Hawaii Coffee Association; Kalepa Koalition; Kau Agricultural Water Cooperative District; Bayer; Hawaii Agriculture Research Center; Hawaii Floriculture and Nursery Association; Maui Cattle Company; Maui Chamber of Commerce; Kapapala Ranch; Larry Jefts Farms, LLC; and many individuals submitted testimony in support of the Proposed Draft.


The Aha Moku Advisory Committee; Office of Hawaiian Affairs; a Kauai County Councilmember; Hawaii Alliance for Progressive Action; Maui Tomorrow Foundation, Inc.; Environmental Caucus of the Democratic Party of Hawaii; Hawaii Advocates for Consumer Rights; Hawaii Center for Food Safety; Young Progressives Demanding Action; GMO Free Kauai; Ke One O Kākuhihewa; We Are One, Inc.; Hakipuu Learning Center; Our Revolution Hawaii; Sierra Club of Hawaii; Hawaiian Affairs Caucus of the Democratic Party of Hawaii; Hawaii Audubon Society; Sustainable Agriculture Committee; Makaainana O Ta Motu Kauai; Earthjustice; The Association of Hawaiian Civic Clubs; Prince Kūhiō Hawaiian Civic Club; Hui O Malama Aina LLC; and numerous individuals submitted testimony in opposition to the Proposed Draft.


The Department of Land and Natural Resources; Department of Hawaiian Home Lands; Maui County Mayor; Kauai County; and a few individuals offered comments on the Proposed Draft.


After careful consideration, your Committee has amended this measure, as received by your committee, by adopting the Proposed Draft.


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. 1326, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1326, H.D. 2.

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