STAND. COM. REP. NO. 19

Honolulu, Hawaii

RE:    S.B. No. 162

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred S.B. No. 162 entitled:

"A BILL FOR AN ACT RELATING TO IOLANI PALACE,"

begs leave to report as follows:

     The purpose of this measure is to exempt Iolani Palace from the standards and conditions related to the receipt of funds under chapter 42F, Hawaii Revised Statutes.

     Testimony in support of this measure was submitted by the Friends of Iolani Palace; the Association of the Hawaiian Civic Clubs; and the Oahu Council, Association of the Hawaiian Civic Clubs.  Testimony in opposition was submitted by the Department of Land and Natural Resources.

     Iolani Palace is a historic treasure and the only official state residence of royalty in the United States.  During the monarchy period, the Palace was the center of social and political activity in the Kingdom of Hawaii.  The Palace relies heavily upon private donations and small state subsidies to cover its operation, repair, and preservation costs.  Your Committee finds that providing an exemption for Iolani Palace from the standards and conditions under chapter 42F, Hawaii Revised Statutes, relating to the receipt of funds, will provide relief in the financial operations and budget of the Palace.  Furthermore, the exemption will provide the Palace the same relief that is granted for the Bernice Pauahi Bishop Museum under section 6E-40, Hawaii Revised Statutes.

     The intent of this measure is to recognize the historic significance of Iolani Palace.  This type of exemption will enable the Friends of Iolani Palace to preserve, restore, interpret, and share the sacred, cultural, and historic significance of the Palace for future generations.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 162 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

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

____________________________

RUSSELL S. KOKUBUN, Chair