Honolulu Star-Bulletin Local News
Bill to nullify payment
to OHA mulled

A court decision requires the state
to pay up to $1.2 billion to the
Office of Hawaiian affairs

By Mike Yuen
Star-Bulletin

A bill that would nullify a state court decision requiring the state to make a payment of perhaps as much as much as $1.2 billion to the Office of Hawaiian Affairs is now before the House Finance Committee.

The complex measure would also set up a mechanism for the state and OHA to sidestep what could be a protracted and costly legal fight.

Instead, they would work out a settlement to the debate over ceded land revenues.

The Finance Committee is also considering a bill that would not recognize about $100 million in claims sought by native Hawaiians against the Department of Hawaiian Home Lands for an alleged breach of trust.

The measures have fiscal implications for lawmakers scrambling to balance the budget. They also go to the heart of one of the most emotional and divisive issues confronting Hawaii: the state's financial obligation to native Hawaiians.

House Finance chairman Calvin Say (D, Palolo), who in recent years has tried to balance the state's responsibility to both Hawaiians and non-Hawaiians, said he will examine the bills carefully.

If the definition of ceded land revenues is clarified, that will be a significant step forward, Say said.

House Hawaiian Affairs chairman Ed Case (D, Manoa) said his committee decided to void last summer's decision on ceded land revenue by then-Circuit Judge Daniel Heely because it believes Heely misinterpreted legislative intent.

Under current law, the state must pay OHA 20 percent of all revenues it gets from public and crown land that was once controlled by the Hawaiian monarchy.

But Heely's ruling expanded the definition of what was covered to include 20 percent of all revenues from community hospitals and public housing on ceded lands and even a 20 percent share of airport duty-free concessions that were off-site.

The bill makes clear what is excluded from the 20 percent, Case said.

The measure, which Case termed "a stand-still agreement" until Gov. Ben Cayetano's administration and OHA can resolve their dispute, would end the use of of the 20 percent revenue standard and replace it with giving OHA a flat amount.

That would allow OHA to receive a predictable revenue source, and also allow the state to know precisely how much it would be paying, Case said.

Although the bill doesn't yet specify what that amount would be, discussions have focused on $10 million to $15 million, what OHA has received annually.

And to allay OHA's fears, the proposal would impose a moratorium on the conveyance of ceded lands until there is a settlement. An eight-member committee - with four members appointed by Gov. Cayetano and the other four by the majority of OHA trustees - would be charged with formulating recommendations to resolve the dispute.

Case said the other bill clarifies that the Legislature never intended for the Hawaiian Home Lands Individual Claims Review Panel to accept general, or "class action," claims whose sole argument was that homesteads weren't awarded because Hawaiian Homes wasn't moving fast enough.

The 1991 law establishing the panel was meant to rectify specific breaches, such as an incorrect disqualification rather than general inaction, Case said.

The state's $600 million Hawaiian homestead back rent and land claims settlement in 1995 covered all general claims against the land trust from statehood in 1959 to 1988, except for "pure" individual claims, Case said.




Text Site Directory:
[News] [Business] [Features] [Sports] [Editorial] [Community]
[Info] [Letter to Editor] [Stylebook] [Feedback]



© 1997 Honolulu Star-Bulletin
http://starbulletin.com