HOUSE OF REPRESENTATIVES             H.C.R. NO.177         
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE CONCURRENT
                        RESOLUTION
REQUESTING THE STATE AUDITOR TO CONDUCT AN ACTUARIAL STUDY OF THE
   IMPACT OF SETTLEMENT OF CEDED LAND CLAIMS. 


 1       WHEREAS, ceded lands were formerly crown lands that were
 2   transferred to the Republic of Hawaii in 1893 and ceded to the
 3   United States five years later with the annexation of Hawaii;
 4   and
 5   
 6       WHEREAS, the 1959 Admissions Act granted statehood to
 7   Hawaii and returned most of the ceded lands provided that the
 8   lands be held in trust for five purposes:  support of public
 9   schools and other educational institutions, betterment of the
10   conditions of Hawaiians as defined by the Hawaiian Homes
11   Commission Act of 1920, development of farm and home ownership
12   on as widespread a basis as possible, making of public
13   improvements, and provision of lands for public use; and
14   
15       WHEREAS, the 1980 Legislature determined that twenty
16   percent of all revenue derived from the public land trust shall
17   be expended by the Office of Hawaiian Affairs for the
18   betterment of the conditions of native Hawaiian; and
19   
20       WHEREAS, the State of Hawaii has made ceded land payments
21   to the Office of Hawaiian Affairs of $210 million in addition
22   to annual general funds for the office's operations and
23   programs; but other claims remain in dispute and are under
24   negotiation; and
25   
26       WHEREAS, the lack of resolution of ceded land payments has
27   affected the State of Hawaii's bond rating and has raised other
28   unanticipated problems related to ceded lands; and
29   
30       WHEREAS, an end to the dispute over amounts claimed to be
31   due to the Office of Hawaiian Affairs from ceded land revenue
32   is advantageous to all, as continued litigation is a wasteful
33   use of both human and financial resources and neither the State
34   nor the Office of Hawaiian Affairs can reasonably determine the
35   financial assets at their disposal to fulfill their roles as
36   set forth in the State Constitution so long as the claims
37   remain unsettled; and

 
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                                  H.C.R. NO.177         
                                                        
                                                        

 
 1       WHEREAS, public comments from those involved in the
 2   negotiations confirm that the Office of Hawaiian Affairs and
 3   the State seek a fair settlement without bankrupting the State;
 4   and
 5   
 6       WHEREAS, the Legislature is highly concerned that the State
 7   of Hawaii may not have sufficient revenues to fund public
 8   programs, services, fringe benefits, bond obligation debts, and
 9   other mandated payments if ceded land payments are set at an
10   estimated amount from $300 million to $1.2 billion; and
11   
12       WHEREAS, the Legislature needs to be kept informed of the
13   future impact on any of the various payment options under
14   consideration; now, therefore,
15   
16       BE IT RESOLVED by the House of Representatives of the
17   Twentieth Legislature of the State of Hawaii, Regular Session
18   of 1999, the Senate concurring, that the State Auditor is
19   requested to conduct an actuarial study on the impact to the
20   State of various settlement levels within the estimated
21   settlement range of $300 million to $1.2 billion; and
22   
23       BE IT FURTHER RESOLVED that the Auditor include within the
24   actuarial study the impact to the State of payments of ceded
25   land revenue for future years for the various settlement levels
26   studied under the assumption that payments from future revenues
27   will be in accord with the settlement level reached; and 
28   
29       BE IT FURTHER RESOLVED that the Auditor determine, for each
30   settlement level analyzed, how the State can pay the settlement
31   amount and make all future revenue payments without raising
32   taxes; and 
33   
34       BE IT FURTHER RESOLVED that the Auditor include the
35   actuarial assumptions used in the actuarial study; and
36   
37       BE IT FURTHER RESOLVED that the Auditor report the findings
38   and recommendations to the Legislature no later than twenty
39   days before the convening of the Regular Session of 2000; and
40   
41       BE IT FURTHER RESOLVED that certified copies of this
42   Concurrent Resolution be transmitted to the State Auditor, the
43   Governor, the Trustees of the Office of Hawaiian Affairs, and
44   the Director of the Department of Budget and Finance.
45 
46 
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48                         OFFERED BY:  ____________________________