Ka Wai Ola - Office of Hawaiian Affairs, Volume 12, Number 6, 1 June 1995 — DHHL settlement passes [ARTICLE]

DHHL settlement passes

$30 million-a-year payments for 20 years

by Deborah L. Ward The Hawai'i state Legislature has passed a historic bill resolving breaches of the Hawaiian home lands trust since statehood. One of its most significant aspects is the creation of a Hawaiian home lands trust fund into whieh a $600 million payment to DHHL will be deposited at a rate of $30 million annually over a period of up to 20 years. The bill does aUow the state flexi-

bility in meeting this future obligation — for example, the state has the right to prepay amounts owed, and to transfer land into the trust that is of equivalent value at the "fair market" value at the time of transfer. Critics have said the $600 million settlement is a compromise that falls short of an estimated $900 million to $1.2 hillion in lost value in land and revenue. The settlement also bars future claims for past breaches of the

trust that are not specified in the bill. The settlement concludes eight years of negotiations between an administration task force made up of representatives from DHHL, the Office of State Planning, and departments of the Attorney General, Transportation, and Land and Natural Resources. An independent representative for homestead beneficiaries was appointed in the last months of the negotiations as a result of a suit filed by Hawaiian homesteaders. The settlement avoids potential costly and lengthy litigation for separate claims. More importantly, it will provide DHHL a steady funding stream to make needed improvements to home lands infrastructure. This in turn will allow accelerated development of the home lands and awards to native Hawaiians. Calling it "a momentous event in the history of Hawai'i," the continued on page 7

DHHL settlement opens new era for homesteading

from page 1 legislative conference committee acknowledged the work of many people over many years to resolve the long-standing controversy relating to the trust. The bifl follows most recommendations set forth in a Dec. 1, 1994 memorandum of understanding between the Office of

State Planning, the Department of the Attorney General, DHHL and the Independent Representative of Hawaiian Home Lands Beneficiaries. The bill does not seek to resolve non-title claims against the federal government, but does release the state from liability for claims that might be made by the federal government against the state. Because the state budget was delivered to the Governor's offtce late, the Legislature has to go into special session to revote all bills with money attached to

Highlights of the settlement: • A Hawaiian home lands trust fund will be established with the requirement that the state make 20 annual deposits of $30 million. The authorization allows for optional forms of payment with Hawaiian Homes Commission approval, discounted advance payments, and interest for funds due and not paid. A total of $60 million was appropriated, in cash and general oblieation bonds, for fiscal

biennium 1995-1997 payments into the fund. • The settlement assures DHHL its regular and undiminished entitlement to funding under the state constitution Article XII, section 1. • All disputes involving 39,000 acres at Waimānalo, O'ahu and at Anahola, Kamalomalo and Moloa'a on Kaua'i will be settled by transfer of lands and mutual withdrawal of claims. In partial remedy of the Waimānalo claims, upon return to the state of any ceded lands at Bellows Air Force Station, DHHL gets first selection

of up to 200 acres; • Compensation of $2.39 million for all remaining confimed uncompensated public uses of Hawaiian home lands; • A $2.3 million payment for advance rent for use of land under Nānāikapono Elementary School from 1996 to 2002. • Land exchanges to end the uncompensated use of Hawaiian home lands for state roads

and highways; • Settlement of all remaining claims filed with the Task Force through establishment of a settlement trust fund; • Continued pursuit of Hawaiian home lands trust claims against the federal government; • Payment of $1.54 million on DHHL's 30 percent entitlement for the use of Hanapepe, Kaua'i public lands formerly under lease for sugarcane cultivation; and

• Keattirmation or ali lana patent grants issued on lands affected by the Hawaiian Homes Commission Act, to bring certainty to all titles and to quiet title to lands no longer in the trust but in the hands of public and private owners. This assures all affected land owners that their title is free and clear.