Ka Wai Ola - Office of Hawaiian Affairs, Volume 20, Number 8, 1 August 2003 — OHA prepares to enter ceded lands negotiations with state, seeks input from Hawaiian community [ARTICLE+ILLUSTRATION]

OHA prepares to enter ceded lands negotiations with state, seeks input from Hawaiian community

By Clyde Namu'o As part of her campaign promise, Gov. Linda Lingle partially restored ceded lands

revenue payments to the Office of Hawaiian Affairs in the early days of the 2003 legislative session. It was a dramatic and welcomed action after years of dispute with

the State. However, the governor's action did not extinguish many significant unresolved issues. OHA is preparing to enter discus-

sions with the State Administration on ways to resolve these disputes. The hope is for talks to begin in the fall, in preparation for presentation of an agreement to the Legislature in 2004. Trustees Apoliona, Mossman, Stender and Carpenter were selected to OHA's negotiating team by their fellow trustees. What are at stake are funds that benefit native Hawaiians and eommunities in hundreds of ways through grants, business loans, educational programs, scholarships, and advocacy efforts on behalf of all Hawaiians as mandated by law. In addition, OHA funds such entities as Alu Like ine.,

Nā Pua No'eau and the Native Hawaiian Legal Corporation. Ceded land revenues paid to OHA have current and future benefits for native Hawaiians and communities. The revenues are invested and held in a trust fund. Upon the establishment and recognition of a Hawaiian nation, the trust fund will be transferred to the nation. What are the ceded land revenue disputes, and how did they eome about? Here are the major questions negotiators will need to ponder and resolve: • What will take the plaee of the See CEDED LANDS on page 3

Namu'o

CEDED LANDS from page 1 state law (Act 304) that defines ceded lands, ceded land revenues, and the way that revenues are ealculated - since it was invalidated by the State Supreme Court for a technieal reason? The Court said the State has a "constitutional obligation to native Hawaiians." Should the law be simply reinstated? • The same court case that invalidated Act 304 also said that OHA's claims for a number of unpaid revenue sources have merit, such as monies collected from Duty Free in Waikiki, and hospitals and housing built on ceded lands. These are not included in current payments. How will OHA and the State resolve these claims? • Most of the State's airports are built on ceded lands. A portion of landing fees (equal to about 50 cents per passenger) were paid as part of the 1990 settlement, and then stopped after a 1997 federal law was passed. The federal law said that money cannot be taken from the airport trust fund as ceded land revenue payment. The law also pointed out that this federal action does not change the State's obligation to Hawaiians. How will OHA and the State resolve this issue? • Some legislators believe that the cost of running programs and property improvements should be subtracted from revenues, and OHA should only be entitled to so-called

"net revenues." Since the State does not take these costs into account when they establish fees and rents, this will mean 20 percent of nothing in most cases. Will this "net revenue theory" prevail? • Any settlement is likely to be quite costly. Exactly how costly is not known at this time, as an accounting is underway to determine the amount of revenue collected by the State on ceded lands in various categories. Should OHA accept payments over time? How about land in lieu of some of the payment? • After the past disputes are settled, what will be the future formula for ceded land revenue to OHA for native Hawaiians? • In the past, OHA has taken the position that it will only negotiate ceded land revenue issues. Other ceded land claims - such as any claims to the lands by native Hawaiians and the future nation - were not to be discussed and most definitely not included in any settlement with the State. OHA trustees have believed these other issues to be the kuleana of the future nation. Will the State attempt to push for a so-called "global settlement" These are complex issues requiring thoughtful and timely resolution by OHA and the State. We will keep you informed as the discussions proceed. ■

r_^&> I I ! What is your mana'o on the ! ! ceded lands revenue talks? ! i i i i i OHA wants to hear what you think about ceded lands to help | ! guide upcoming negotiations with the state. Please provide your | | mana'o on these and any other questions or concerns you have | i concerning ceded lands: | i • Should land be considered as part of a settlement package? | I I I I I I I I I I I I I I I I I I i • Should OHA eonhnue to reject any "global" settlement that | | would extinguish the claims of the future Hawaiian nation? | I I I I I I I I I I I I I I I I I I i • What question or issue would you like to be addressed in a | i future article on the subject of ceded land revenues? | I I I I I I I I I I I I I I I I I I | Other comments: |l ! i i i i i i i i i i i i i i i i i , i I Feel free to attach your comments on additional sheets and I I mail to: Ceded Lands Survey '03, Office of Hawaiian Affairs, \ \ 711 Kapi'olani Blvd., Ste. 500, Honolulu, Hl 9681 3. i | Email your comments to kwo@oha.org. Mahalo a nui loa. ■ j I I I I I I I I

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Ni'I Hon