REPORT TITLE:
Ceded Land Revenues


DESCRIPTION:
Provides a process to resolve ceded land revenue issues.  (SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   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.
 

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

 
 
 
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 1      (7)  Authorize the continuing efforts of the joint committee
 
 2           to examine the issues surrounding the public land trust
 
 3           and explore the possibility of a better and permanent
 
 4           setup in the management and disposition of the ceded
 
 5           lands.
 
 6      SECTION 2.  Act 329, Session Laws of Hawaii 1997, is amended
 
 7 as follows:
 
 8      1.   By amending subsection (c) of section 3 to read:
 
 9      "(c) The joint committee shall:
 
10      (1)  Submit a progress report to the legislature no later
 
11           than twenty days prior to the convening of the regular
 
12           session of [1998;] 2000;
 
13      (2)  Submit a final report to the legislature no later than
 
14           twenty days prior to the convening of the regular
 
15           session of [1999;] 2001; and
 
16      (3)  Cease to exist on June 30, [1999.] 2001."
 
17      2.  By amending section 4 to read:
 
18      "SECTION 4.  (a) By December 31, [1998,] 2001, the
 
19 [department of land and natural resources,] auditor, with the
 
20 cooperation as requested by the department of land and natural
 
21 resources [of], the office of Hawaiian affairs, and any other
 
22 state department and agency that uses or manages public lands,
 

 
 
 
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 1 shall complete a comprehensive inventory and map database of all
 
 2 lands currently subject to section 5(f) of the Admission Act.
 
 3 The inventory shall include but not be limited to:
 
 4      (1)  Identification of fast land parcels by tax map key
 
 5           number;
 
 6      (2)  Identification of submerged lands;
 
 7      (3)  Identification of the agency that has legal
 
 8           jurisdiction of each parcel;
 
 9      (4)  Land use and zoning designations;
 
10      (5)  Program uses;
 
11      (6)  Terms of any leases or other dispositions; and
 
12      (7)  Revenues generated by amount, category, and source.
 
13      (b) In undertaking the inventory and mapping provided in
 
14 subsection (a), the [department of land and natural resources]
 
15 auditor shall coordinate with the joint committee referenced in
 
16 section 3 and, to the extent feasible, shall comply with the
 
17 joint committee's requests.
 
18      (c) In complying with the requirements of this section, the
 
19 department shall be exempt from the provisions of chapters 76,
 
20 77, and 103D, Hawaii Revised Statutes.
 
21      (d) The [department of land and natural resources] auditor
 
22 shall submit:
 

 
 
 
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 1      (1)  A progress report to the legislature no later than
 
 2           twenty days prior to the convening of the regular
 
 3           session of [1998;] 2000; and
 
 4      (2)  A final report to the legislature with copies of the
 
 5           inventory and maps by December 31, [1998.] 2000."
 
 6      SECTION 3.  Section 10-13.3, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "[[]§10-13.3[]]  Interim revenue.  Notwithstanding the
 
 9 definition of revenue contained in this chapter and the
 
10 provisions of section 10-13.5, and notwithstanding any claimed
 
11 invalidity of Act 304, Session Laws of Hawaii 1990, the income
 
12 and proceeds from the pro rata portion of the public land trust
 
13 under article XII, section 6 of the state constitution for
 
14 expenditure by the office of Hawaiian affairs for the betterment
 
15 of the conditions of native Hawaiians for each of fiscal year
 
16 1997-1998 and fiscal year 1998-1999 shall be $15,100,000.  For
 
17 fiscal year 1999-2000 and fiscal year 2000-2001, the annual
 
18 amount appropriated shall be $       .  The amounts appropriated
 
19 and transferred to the office of Hawaiian affairs under this
 
20 section shall be credited toward any sum owed by the State to
 
21 finally resolve any claim made by the office of Hawaiian affairs
 
22 against the State for a pro rata share of revenues owed for the
 

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

 
 
 
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 1 for the existence of the joint committee is extended to June 30,
 
 2 2001.
 
 3      SECTION 6.  There is appropriated out of the general
 
 4 revenues of the State of Hawaii the sum of $        , or so much
 
 5 thereof as may be necessary for fiscal year 1999-2000, and the
 
 6 same sum, or so much thereof as may be necessary for fiscal year
 
 7 2000-2001, for the purposes of defraying the expenses incurred by
 
 8 the joint committee reestablished in section 4 of this Act, and
 
 9 expenses incurred by the auditor pursuant to this Act; provided
 
10 that no funds shall be expended unless separately matched on a
 
11 dollar-for-dollar basis by the office of Hawaiian affairs and the
 
12 department of Hawaiian home lands.
 
13      The sums appropriated under this section shall be expended
 
14 by the auditor for the purposes of this Act.
 
15      SECTION 7.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 8.  This Act shall take effect upon its approval;
 
18 provided that sections 4 and 6 shall take effect on July 1, 1999.