OHA sues to resume
land revenuesThe agency says that the
state failed in its fiduciary
duties as trustee of the lands
The Office of Hawaiian Affairs, the agency responsible for distributing benefits to Hawaiians, has gone back to court to get the state to resume paying ceded land revenues it owes.
The complaint, filed yesterday in Circuit Court, is the latest development in the long-standing ceded land dispute. The state attorney general could not be reached for comment.
Under the state Constitution, OHA is entitled to income and proceeds from ceded lands, former crown or public lands that were ceded to the Republic of Hawaii after the overthrow of the monarchy in 1893.
In 1990 the Legislature passed Act 304 to provide a mechanism for determining the amount of ceded land revenues owed to OHA. The law specified that OHA is entitled to 20 percent of revenue from the ceded lands.
Three years later the state paid OHA $19 million and agreed to make annual revenue payments. OHA filed a lawsuit in 1994 to resolve all remaining back-payment issues.
On Sept. 12, 2001, the Hawaii Supreme Court ruled that Act 304 conflicted with the 1998 "Forgiveness Act" passed by Congress, which prohibited further payment of airport revenues for claims related to ceded lands, and was therefore invalid. However, the high court reaffirmed OHA's right to benefit from the ceded lands trust.
Based on the ruling, then-Gov. Ben Cayetano ordered state departments to stop payments to OHA. He offered to settle the issue of repayment in 1999 with a global settlement of $251 million and 360,000 acres of ceded lands, but OHA declined.
Lawmakers introduced a bill last legislative session to reinstate Act 304 but did not have enough support. A committee was formed instead to review it.
OHA's complaint alleges the state breached its fiduciary duties as trustee of the public land trust when it failed to oppose the Federal Aviation Administration's position that payments to OHA from airport revenues were illegal and were not a permissible use of airport revenues.
OHA is asking that the court order the state to reinstate Act 304, make airport-related payments from other sources and appoint an independent trustee to resolve issues, including reinstating Act 304 and payment of revenues from other sources other than airport revenues. The agency also seeks an injunction to prohibit state officials from opposing its efforts.
OHA alleges the state is liable for damages in the 1994 case and amounts due under Act 304 that have yet to be paid.