STAND. COM. REP. NO. 2433

Honolulu, Hawaii

RE:    S.B. No. 2661

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Hawaiian Affairs and Water and Land, to which was referred S.B. No. 2661 entitled:

"A BILL FOR AN ACT RELATING TO UNDERGROUND WATER,"

beg leave to report as follows:

     The purpose and intent of this measure is to establish a Hawaiian home lands water permit fee, in addition to the water permit fee required under section 174C-61, Hawaii Revised Statutes, for the withdrawal or use of water beneath the surface of Hawaiian home lands and require the Hawaiian home lands water permit fees collected to be deposited into the Hawaiian home operating fund.

     Your Committees received testimony in support of this measure from the Department of Hawaiian Home Lands and one individual.  Your Committees received testimony in opposition to this measure from the Department of Land and Natural Resources.

     Your Committees find that any additional source of revenue for the Department of Hawaiian Home Lands will assist the department in fulfilling its obligation to its beneficiaries.  A water permit is especially appropriate due to the diminishing revenues the department is receiving from its share of state receipts derived from water licenses pursuant to article XII of the state constitution.  The increased funds will be used for construction, operation, and maintenance of revenue-producing improvements intended to serve occupants of Hawaiian home lands.

     Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the records of votes of the members of your Committees on Hawaiian Affairs and Water and Land that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2661, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2661, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________ MALAMA SOLOMON, Chair

____________________________ MAILE S.L. SHIMABUKURO, Chair