Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 5, 1 May 1996 — S.B. 1698 HD 3 Highlights [ARTICLE+ILLUSTRATION]

S.B. 1698 HD 3 Highlights

Senate bill 1698, HD 3 would remove key revenue generators from the list of those now providing moneys to OHA. These include: • Moneys derived frotn the incidental rental of puhlie facilities • Moneys received by the Department of Health from contractual patient fees • Moneys received from the operation of rental housing programs developed or administered by the Hawai'i Housing Authority • Money derived from the recreational use of puhlie facilities • Moneys received by the airports and harbors divisions of the department of transportation The most critical of these sources are moneys received by the airports ($7.4 million) and harbors ($4.4 million) divisions of the Department of Transportation. A large portion of the airport revenues are derived from landing fees and concession revenues. The bill is an amendment of Act 304 (passed in 1990) that was a first attempt by the Legislature to clarify what ceded lands revenue OHA was to receive. It was agreed then that OHA would only get what is known as proprietary ineome - moneys generated by certain fees, and rents - and not sovereign revenues, moneys generated by what are termed sovereign functions of the state. These include things such as taxes, penalties, and tuition from the University of Hawai'i. What the Governor's bill would do is reclassify certain revenues - making what was onee proprietary, sovereign. Airports and harbors, never explicitly called sovereign functions of the state, would now be called just that.

Trustee Moses Keale (right) offers ho'okupu to Nā Koa O Pu'ukoholā at the April 23 unity rally to protest SB 1698 HD 3. OHA Chairman Clayton Hee looks on. The ceremony was part of an hour-long event at the Capitol Rotunda that included hula performances, a lua demonstration, and speeches by individuals opposed to the bill. Close to 1000 peopie attended the rally.