Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 5, 1 May 1996 — Question and answers about the ceded lands trust [ARTICLE+ILLUSTRATION]

Question and answers about the ceded lands trust

What are ceded lands? Ceded lands cire the former "crown and government lands" that were under the jurisdiction of the Hawaiian Kingdom before the 1 893 overthrow. They were "ceded" to the American government when it took control of the islands in 1898. When Hawai'i became a state in 1959, most of these lands were transferred to the state govemment. W hat is ceded lands revenue? Ceded lands revenue is ineome derived from the use of ceded lands in the public land trust. The land is used by various state agencies, or is leased to private interests to generate revenue. For example, the Department of Transportation (DOT) operates the airports and the harbor whieh collect revenue through fees and permits. Similarly, the University of Hawai'i rents housing units on ceded lands to UH faculty. The Department of Health runs hospitals and other medical facilities, also on ceded lands. W hat revenues does OHA receive? Ceded lands revenues are divided up into two categories: proprietary and sovereign revenues. OHA

receives 20 percent ot all propnetary ceded lands revenue. What is the difference between sovereign and proprietary revenues? Sovereign revenues are moneys derived from what are termed sovereign functions of the state, such as taxation, fines, and certain types of fees. Proprietary revenues are monies eollected from certain leases, charges, fees and rents. How was OHA's present share of ceded lands revenue determined? In 1981, the Legislature passed a statute whieh gave OHA 20 percent of the revenues from ceded lands. In 1990, the Legislature enacted Act 304 whieh classified the revenue from ceded lands into two categories: proprietary and sovereign. The legislation then determined that OHA was to receive 20 percent of proprietary ceded lands revenues and no sovereign revenues. What does SB 1698, HD 3 propose to do? SB 1698 would classify the running of the airports, harbors, and a number of other state-run operations on ceded lands as "sovereign functions of the state" making their revenues sovereign and not proprietary. This means OHA would no longer be eligible to receive these funds. OHA receives approximately 80 percent of its revenues from airports and harbors.

■ ■ ■ » ~ ii » i i Trustees Rowena Akana (left) and Moanike'ala Akaka (right) march at the April 23 unity rally.

"Even in these times of pilikia we have been able to eome together to fight this legislation." Trustee Frenchy DeSoto

"This is a slash anel burn method that Hawaiians have experienced for too long." Trustee Kīna'u Boyd Kamali'i

"This bill is an attempt to balance the state budget on the back of Hawaiians." Trustee Abraham Aiona

"This is not an OHA issue, a Ka Lāhui issue, or a Kamehameha Schools Bishop Estate issue. This is a Hawaiian issue." Dickie Wong Trustee, Kamehameha Schools

"l'm here to support OHA. ... We are all fighting for the same thing." "Bumpy" Kanahele Nation of Hawai'i

"What makes me feel good about this gathering is that so many Hawaiians have been able to eome together. ... A promise is a promise." Pōkā Laenui The lnstitute for the Advancement of Hawaiian Affairs