REPORT TITLE:
Ceded Land Revenues


DESCRIPTION:
Provides a process to resolve ceded land revenue issues.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

Relating To Public Land Trust.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that in 1997, Act 329,
 
 2 Session Laws of Hawaii 1997 (Act 329) established a two-year
 
 3 process to resolve the controversy over the proper management and
 
 4 disposition of the lands subject to the public land trust and the
 
 5 proceeds and income therefrom the office of Hawaiian affairs was
 
 6 entitled to.  The Act also established a joint committee to
 
 7 gather information, facilitate discussion, and secure
 
 8 recommendations to address issues relating to the lands subject
 
 9 to the public land trust.  Act 329 attempted to clarify the
 
10 statutory definition of "revenue" under section 10-2, Hawaii
 
11 Revised Statutes, established a nonlitigious mechanism to
 
12 inventory and map public trust lands, and tried to assure an
 
13 adequate level of funding to the office of Hawaiian affairs by
 
14 providing a lump-sum annual payment of $15,100,000 during the
 
15 two-year review process.
 
16      However, in the past two years, few meetings were conducted
 
17 by the joint committee, no inventory was completed, and strong
 
18 dissatisfaction with the two-year cap on revenues was voiced by
 
19 the office of Hawaiian affairs and its beneficiaries.  Although
 

 
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 1 the parties have been meeting, there is still no settlement with
 
 2 little chance of settlement because of major disagreements over
 
 3 the scope and amount of the settlement.
 
 4      The legislature also finds that the Hawaii Supreme Court is
 
 5 presently reviewing Judge Heely's ruling under Office of Hawaiian
 
 6 Affairs v. State of Hawaii, Circuit Court of the First Circuit,
 
 7 State of Hawaii Civil No. 94-0205-01, and is awaiting the outcome
 
 8 of the negotiations between the State and office of Hawaiian
 
 9 affairs.  The Supreme Court has expressed frustration at the pace
 
10 and lack of forward movement in the negotiations between the
 
11 parties and is preparing to make a ruling that may be devastating
 
12 to both parties.
 
13      The legislature believes that it is in the public's
 
14 interest, due to the difficulty, time, uncertainty, disruption of
 
15 public purposes, impact on the public land trust, and expense of
 
16 judicial resolution of disputed claims, that another approach be
 
17 taken.  This new approach should result in the repair of the
 
18 State's fiduciary obligations to native Hawaiians as it relates
 
19 to the public land trust and the final resolution of claims
 
20 against the State under the Heely decision.  Such a resolution is
 
21 necessary and in the best interests of the State and the
 
22 beneficiaries of the public land trust.
 
23      To bring closure to these issues, based on fairness and
 

 
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 1 equity, the legislature finds it necessary to provide assistance
 
 2 to the parties.  The intent of this Act is to:
 
 3      (1)  Further clarify the intent of Act 329, Session Laws of
 
 4           Hawaii 1997;
 
 5      (2)  Settle past due amounts claimed by the office of
 
 6           Hawaiian affairs under the Heely decision;
 
 7      (3)  Settle future revenues claimed by the office of
 
 8           Hawaiian affairs, by eliminating any and all disputes
 
 9           over the definition of what activities generate
 
10           "revenues" subject to the office of Hawaiian affairs'
 
11           twenty per cent allocation;
 
12      (4)  Bring stability to the State's economy by eliminating
 
13           the need for further litigation surrounding ceded land
 
14           issues;
 
15      (5)  Set up a payment and accounting process to better
 
16           administer the ceded land revenue payments to the
 
17           office of Hawaiian affairs;
 
18      (6)  Facilitate the identification of the public trust lands
 
19           by first having the auditor recommend the scope of
 
20           review; then coordinate a comprehensive inventory and
 
21           mapping of those lands; and
 
22      (7)  Authorize the continuing efforts of the joint committee
 
23           to examine the issues surrounding the public land trust
 

 
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 1           and explore the possibility of a better and permanent
 
 2           setup in the management and disposition of the ceded
 
 3           lands.
 
 4      SECTION 2.  Act 329, Session Laws of Hawaii 1997, is amended
 
 5 as follows:
 
 6      1.   By amending subsection (c) of section 3 to read:
 
 7      "(c) The joint committee shall:
 
 8      (1)  Submit a progress report to the legislature no later
 
 9           than twenty days prior to the convening of the regular
 
10           session of [1998;] 2000;
 
11      (2)  Submit a final report to the legislature no later than
 
12           twenty days prior to the convening of the regular
 
13           session of [1999;] 2001; and
 
14      (3)  Cease to exist on June 30, [1999.] 2001."
 
15      2.  By amending section 4 to read:
 
16      "SECTION 4.  (a) By December 31, [1998,] 2001, the
 
17 [department of land and natural resources,] auditor, with the
 
18 cooperation as requested by the department of land and natural
 
19 resources [of], the office of Hawaiian affairs, and any other
 
20 state department and agency that uses or manages public lands,
 
21 shall complete a comprehensive inventory and map database of all
 
22 lands currently subject to section 5(f) of the Admission Act.
 
23 The inventory shall include but not be limited to:
 

 
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 1      (1)  Identification of fast land parcels by tax map key
 
 2           number;
 
 3      (2)  Identification of submerged lands;
 
 4      (3)  Identification of the agency that has legal
 
 5           jurisdiction of each parcel;
 
 6      (4)  Land use and zoning designations;
 
 7      (5)  Program uses;
 
 8      (6)  Terms of any leases or other dispositions; and
 
 9      (7)  Revenues generated by amount, category, and source.
 
10      (b) In undertaking the inventory and mapping provided in
 
11 subsection (a), the [department of land and natural resources]
 
12 auditor shall coordinate with the joint committee referenced in
 
13 section 3 and, to the extent feasible, shall comply with the
 
14 joint committee's requests.
 
15      (c) In complying with the requirements of this section, the
 
16 department shall be exempt from the provisions of chapters 76,
 
17 77, and 103D, Hawaii Revised Statutes.
 
18      (d) The [department of land and natural resources] auditor
 
19 shall submit:
 
20      (1)  A progress report to the legislature no later than
 
21           twenty days prior to the convening of the regular
 
22           session of [1998;] 2000; and
 
23      (2)  A final report to the legislature with copies of the
 

 
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 1           inventory and maps by December 31, [1998.] 2000."
 
 2      SECTION 3.  Section 10-13.3, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "[[]§10-13.3[]]  Interim revenue.  Notwithstanding the
 
 5 definition of revenue contained in this chapter and the
 
 6 provisions of section 10-13.5, and notwithstanding any claimed
 
 7 invalidity of Act 304, Session Laws of Hawaii 1990, the income
 
 8 and proceeds from the pro rata portion of the public land trust
 
 9 under article XII, section 6 of the state constitution for
 
10 expenditure by the office of Hawaiian affairs for the betterment
 
11 of the conditions of native Hawaiians for each of fiscal year
 
12 1997-1998 and fiscal year 1998-1999 shall be $15,100,000.  For
 
13 fiscal year 1999-2000 and fiscal year 2000-2001, the annual
 
14 amount appropriated shall be $16,060,000.  The amounts
 
15 appropriated and transferred to the office of Hawaiian affairs
 
16 under this section shall be credited toward any sum owed by the
 
17 State to finally resolve any claim made by the office of Hawaiian
 
18 affairs against the State for a pro rata share of revenues owed
 
19 for the disposition of ceded lands."
 
20      SECTION 4.  There is appropriated out of the general
 
21 revenues of the State of Hawaii the sum of $16,060,000, or so
 
22 much thereof as may be necessary for fiscal year 1999-2000, and
 
23 the same sum, or so much thereof as may be necessary for fiscal
 

 
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 1 year 2000-2001, to be transferred to and expended by the office
 
 2 of Hawaiian affairs for the purposes of section 10-13.3, Hawaii
 
 3 Revised Statutes.
 
 4      SECTION 5.  The joint committee established under section 3
 
 5 of Act 329, Session Laws of Hawaii 1997, shall reconvene to study
 
 6 and make recommendations on all outstanding anticipated issues
 
 7 identified by the joint committee as currently or potentially
 
 8 relating to the public land trust, including as to the possible
 
 9 set aside and transfer of title to a portion of the public land
 
10 trust to the office of Hawaiian affairs as partial or full
 
11 satisfaction of any past or future obligations under article XII,
 
12 section 6, of the Constitution of the State of Hawaii.  Existing
 
13 or replacement members shall reconvene its meeting as soon as
 
14 practicable and on a monthly basis thereafter.  The same
 
15 requirements established for the joint committee under Act 329,
 
16 Session Laws of Hawaii 1997, as to its makeup, meetings, and
 
17 reporting to the legislature shall apply, except the time period
 
18 for the existence of the joint committee is extended to June 30,
 
19 2001.
 
20      SECTION 6.  There is appropriated out of the general
 
21 revenues of the State of Hawaii the sum of $500,000, or so much
 
22 thereof as may be necessary for fiscal year 1999-2000, and the
 
23 same sum, or so much thereof as may be necessary for fiscal year
 

 
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 1 2000-2001, for the purposes of defraying the expenses incurred by
 
 2 the joint committee reestablished in section 4 of this Act, and
 
 3 expenses incurred by the auditor pursuant to this Act; provided
 
 4 that no funds shall be expended unless separately matched on a
 
 5 dollar-for-dollar basis by the office of Hawaiian affairs and the
 
 6 department of Hawaiian home lands.
 
 7      The sums appropriated under this section shall be expended
 
 8 by the auditor for the purposes of this Act.
 
 9      SECTION 7.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 8.  This Act shall take effect upon its approval;
 
12 provided that sections 4 and 6 shall take effect on July 1, 1999.