Ka Wai Ola - Office of Hawaiian Affairs, Volume 18, Number 10, 1 October 2001 — Court scraps Heely decision, Act 304 [ARTICLE+ILLUSTRATION]

Court scraps Heely decision, Act 304

By Ryan Mielke

In a decision impacting the entire Hawaiian community, Hawai'i's Supreme Court has determined that an earlier decision favorable to the Office of Hawaiian Affairs by Circuit

Judge Daniel Heely, thought to have been a watershed revenue win for OHA, cannot be realized, due to a eonflict between state and federal law. The decision, released Sept. 12 by the court, also renders moot Act 304, whieh outlines the areas from whieh ceded land payments to OHA would be

derived, because of a clause in the ae that states if any of the act conflictf with federal law, then the entire act if invalid. The court found such a conflici with the "Forgiveness Act" of 1997. The U.S. Department ol See COURT on page 19

[?]

Ali'iolanl Hale in downtown Honolulu houses the State Supreme Court. Photo: Miehoei MeOonaw

COURT (rom page 1 Transportation's Inspector General found in September 1996 that the approximately $30 million in ceded land payments made from the Hawai'i Airport Revenue Fund were not in eomplianee with the law. The Forgiveness Act, ushered to the legislative forefront by Sen. Daniel lnouye, forgave the state of its $30 million debt to the Hawai'i Airport Revenue Fund, money it already paid to OHA as part of its ceded land obligation. The decision by the Supreme Court

places the entire question of how mueh is owed to OHA and from where, back in the laps of State legislators who will take up the issue in 2002. In 1996, Circuit Judge Daniel G. Heely ruled in OHA vs. State of Hawai'i that the state, as trustee of the Public Land Trust, was not paying a substantial portion of the trust funds mandated to benefit Hawaiians and that OHA is entitled to a 20 percent share of eaeh of the Waikīkī Duty-Free Shop, public housing, the Hilo Hospital and the interest ineome from

unpaid fees. The case was then appealed to the Hawai'i Supreme Court. On July 15, 1998, after being urged by the Hawai'i Supreme Court, Governor Ben Cayetano, on behalf of the state, and then-Board of Trustees Chairperson Frenchy DeSoto, on behalf of OHA, formally agreed to enter negotiations. In April 1999 OHA trustees voted to end all negotiations with the state of Hawai'i for a settlement in OHA vs. State of Hawai'i.

OHA Chairman Clayton Hee and then-Chairwoman Rowena Akana, were among the dissenting trustees, opposing the vote to end negotiations. For his part, Hee told trustees at the Sept. 18 OHA Board reorganization that his immediate eoneem is to meet with Governor Cayetano and other Hawai'i leaders to determine the state's current position regarding OHA. Making difficult decisions that eall for compromise, negotiation and settlement takes what Hee called "political will" and "courage." ■

/ PO (uwlHin) - SuttwS BOict1 Combined land area of approximately 4 million acres

1—1795 Kamehameha I conquers O'ahu, Ē secures kingdom. Parcels of land are I given to foreign advisors and chiefs I loyal to the king. I — 1819 Kamehameha dies. Kamehameha II I upholds his father's land gifts. — 1845 Land Commission formed to assess lands given as private property. 1848 Māhele divides lands: King (1.5 million I acres). the chiefs ( 1 .5 million acres) and the maka'āinana ( I million acres). 1850 Kuleana Land Act authorizes land commission to award fee simple plots to native tenants. Only 26 percent of adult males receive lands due impart to laek of understanding of the concepts of land ownership. 1855 Land commission dissolved, only 29,000 acres of the maka'āinana land share claimed. 1893 lllegal overthrow of Hawaiian government 1894 Republic government claims title to all I crown and government lands. 1898 1 .8 million acres ceded to the U.S. upon annexation. 1900 Organic Act confirmed cession of those| lands. Majority of lands would remain under management of territorial government 1921 1 88,000 acres of ceded lands designated for use by Hawaiian Homes Commission. 1959 Hawai'i named as 50th state. Admission Act gives control of i ceded lands to state. Native Hawaiians I named as beneficiaries of Public Land 1 Trust Federal government controls I more than 370,000 acres for parks 1 and military, with 30,000 acres under 1 65-year lease. [ V_200l 1 .4 million acres of ceded land eontrolled by state, managed by the Department of Land an Natural Resources.

Ceded Lands at a glance ,

[?]

Source: OHA-funded PBR study. lnformation graphlc by Miehael McDonald \