HOUSE OF REPRESENTATIVES	H.C.R. NO.	341
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

REQUESTING THE AUDITOR TO CONDUCT A FINANCIAL AND MANAGEMENT AUDIT OF THE DEPARTMENT OF AGRICULTURE'S MANAGEMENT OF THE MOLOKAI IRRIGATION SYSTEM.

     WHEREAS, the Board of Agriculture and the Department of Agriculture are charged with the maintenance and operation of the Molokai irrigation system, including, pursuant to section 167-l1, Hawaii Revised Statutes, the setting of all rates and charges; and

     WHEREAS, section 167-11, Hawaii Revised Statutes, grants the Board of Agriculture the power to fix and adjust rates and charges so the revenues derived therefrom shall be sufficient to cover the cost of operation, maintenance, replacement, any bond debt service, and other charges necessary to cover the capital cost of the system; and

     WHEREAS, those rates and charges for the Molokai irrigation system are set forth in section 4-152-22, Hawaii Administrative Rules (Department of Agriculture); and

     Whereas, the Department of Agriculture may be diverting some of the revenues it derives from the Molokai irrigation system to manage and maintain other irrigation systems it has under its jurisdiction or to support other department operations; and

     WHEREAS, the homesteaders and farmers who are users of the Molokai irrigation system are concerned that rates and charges for irrigation water that they are paying are being diverted to other uses when the Molokai irrigations system itself is in need of many capital and operational improvements; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, the Senate concurring, that the Auditor is requested to conduct a financial and management audit of the Department of Agriculture's operation of the Molokai irrigation system; and

     BE IT FURTHER RESOLVED that the Auditor is requested to determine the following:

     (1)  The total annual revenues of the Molokai irrigation system for the last five years and projected revenues for the next three years;

     (2)  The total costs of operating and maintaining the Molokai irrigation system for the last five years and the projected costs for operation and maintenance for the next three years;

     (3)  The total capital improvement costs made for the Molokai irrigation system in the last five years and the projected or anticipated capital improvement costs that may be required in the next three years; and

     (4)  If any revenues from rates and charges charged to users of the Molokai irrigation system have been diverted to uses other than the operation and maintenance of the Molokai irrigation system; and

     BE IT FURTHER RESOLVED that the Auditor is requested to submit findings and recommendations, including any proposed legislation, to the Legislature not later than twenty days prior to the convening of the Regular Session of 2008; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor, the Chairperson of the Board of Agriculture, and the Chairperson of the Molokai Irrigation System Water Users Advisory Board.

OFFERED BY:

_____________________________

Report Title: 

Auditor; Molokai Irrigation System.