HOUSE OF REPRESENTATIVES             H.R. NO.162           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE 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
38   
39       WHEREAS, public comments from those involved in the
40   negotiations confirm that the Office of Hawaiian Affairs and
41   the State seek a fair settlement without bankrupting the State;
42   and

 
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                                  H.R. NO.162           
                                                        
                                                        

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