Land trust revision
may dedicate some
funds to UH

The trust may be modeled after
the Common School Fund Trust
in 29 western states

By Pat Omandam
Star-Bulletin

KAHULUI -- The way the state handles its controversial public land trust may soon become history.

The state Department of Land and Natural Resources is drawing up plans to make changes to the laws governing the public land trust that, among other things, could lead to the University of Hawaii getting 20 percent of the revenue generated from public lands -- just like the Office of Hawaiian Affairs.

Dean Y. Uchida, state land division administrator, briefed the UH Board of Regents yesterday at Maui Community College on his idea to radically alter the way public lands are classified. Uchida suggests modeling Hawaii's unique land trust after the Common School Fund Trust found in 29 western states, most notably Washington state and Oregon.

There, certain public lands are set aside specifically for public schools and institutions.

The lands, in turn, are used to generate revenue -- such as forestry in those two states -- with the money going to a permanent trust that distributes revenue to beneficiaries, namely the schools.

"It's kind of a novel concept tied to revenue," said Uchida, who will be presenting the proposal to the Board of Land and Natural Resources.

The state Legislature in 1996 directed the DLNR to conduct a comprehensive review of its public lands to address various problems faced by lessees of state lands. Uchida said the Common School Fund Trust model provides a "philosophical focus" for revisions to Hawaii's laws.

The model is centered on the general principals of trust management, which are clarity, accountability, enforcement and perpetuity, he said.

Uchida said his proposal calls for reorganizing all public lands -- including those held by the Department of Hawaiian Home Lands, the Hawaii Housing Authority, the state Department of Transportation and the University of Hawaii -- into four separate portfolios of land:

The first would be a "revenue" portfolio that would contain public lands that can be used by the state to compete with the private sector for commercial, industrial, hotel, resort and other uses.

The second would be a "resource" portfolio for lands suitable for agriforestry, forestry, wildlife preservation, watershed preservation, archaeology and historic preservation and conservation.

The third portfolio would be a "hybrid" portfolio containing lands suitable for agriculture that does not undermine the land's current and future use as a resource, such as for pasture and aquaculture uses.

The last portfolio would include public lands suitable for schools, parks, harbors, airports, military installations, medical centers and other government facilities set aside by order of the governor, Uchida said.

With micromanaging and restrictions in the current set-up of the public land trust, Uchida said the land division needs to reorganize the trust so the state can compete in the private sector.

The land board will be briefed on the plan next month, after which public hearings will be held. The 1998 state Legislature will decide on its merits, he said.

For example, Uchida told regents, the revisions allow lawmakers to decide how to distribute the remaining 80 percent of revenue generated from public lands after paying OHA the required 20 percent. Since education is one of the five uses of the public trust stated in the Admissions Act, lawmakers could decide to give the UH 20 percent of the revenue, he said.

UH President Kenneth P. Mortimer yesterday said the plan has substantial potential for improving the economic condition of the university, and urged regents to support it next session.