Ka Wai Ola - Office of Hawaiian Affairs, Volume 21, Number 1, 1 January 2004 — Ceded lands bill tops OHA's 2004 legislative agenda [ARTICLE+ILLUSTRATION]

Ceded lands bill tops OHA's 2004 legislative agenda

By Sterling Kini Wong As the Office of Hawaiian Affairs' package of bill proposals takes shape leading up to the start of this year's state legislative session on Jan. 21, foremost on OHA's list of priorities is the revival of a bill that would clarify the formula for payment of ceded land revenue. The ceded land revenue bill, called SB 1151, is one of four bills in OHA's package that did not pass during last year's session. Because 2004 is the second half of the 22nd Legislature's two-year term, the bills were allowed to

carry over with necessary amendments. Beside SB 1151, those bills include: A SB 1152 SD1 HD 1, whieh would require the governor to appoint one member eaeh to the Board of Land and Natural Resources, the Land Use Commission, and the public advisory body for coastal zone management from lists of three nominees submitted by OHA. A SB 1 155 SD1, whieh would revise the method by whieh OHA trustees ean include prior years of service in their recently allowed retirement benefits. A SB 1157, whieh would set a eap on the OHA

administrator's salary at no higher than that of the Hawai'i State Superintendent of Education, whieh is currently $150,000 per year. In addition, four other bills are currently being drafted by OHA staff and, pending the Board of Trustees' approval, could be included in the agency's package. One proposal would strengthen the state's shoreline certification process; another would prevent the exchange, alienation or sale of ceded lands; a third would increase the authority of the state Island Burial Councils; and the last would improve the regulation of oeean pollution by cruise ships. See BILLS on page 5

BILLS from page 1 However, the question of exactly how mueh of the revenue derived from use of ceded lands OHA is entitled to remains, as it was last year, the agency's top legislative priority. "SB 1151 represents OHA's attempts at assuring that the ceded land revenue stream remains fair and consistent for all Hawaiians," said OHA Administrator Clyde Nāmu'o. "We would urge the Legislature to look closely at this measure." Latest chapter in long struggle The struggle over this issue has been going on for a quarter century. In 1978, OHA was created by constitutional amendment to fulfill the state's trust obligation to Native Hawaiians, whieh was delineated in the Admission Act of 1959. In 1980, the Legislature determined that OHA would be allocated 20 percent of all funds derived from over a million acres of puhlie trust lands, the former crown and government lands of the Kingdom of Hawai'i that were ceded to the U.S. upon annexation. However, that figure has repeatedly been challenged in the years since. The latest chapter in the ceded land revenue dispute began in September 2001, when the state Supreme Court nullified Act 304, whieh clarified a previous payment process. The court repealed the law after it found that a provision providing OHA with revenue from Honolulu International Airport, a third of whieh sits on ceded lands, was in conflict with federal law prohibiting the use of airport revenues for activities unrelated to the actual

operation of the airport. Although the Supreme Court did not dispute the state's trust obligation to pay OHA non-airport derived revenue and directed OHA to seek a legislative solution to the issue, former Gov. Ben Cayetano halted all ceded land revenue payments to OHA beginning on July 1, 2001. Some of those payments have since been reinstated by executive order of Gov. Linda Lingle. In an effort to secure a more comprehensive solution to the issue, OHA attempted to reinstate Act 304 in the form of SB 1151 in the 2003 legislative session. The bill, however, was shelved in the House, after an amended version (SB 1151/HD2) met with strong opposition from the Hawaiian community because the amended bill included a caveat stipulating that all ceded lands would be valued as raw, undeveloped land - even if there were buildings and improvements to the land that raised its real property value. The version of SB 1151 that OHA is planning to put before the Legislature this year does not include those controversial amendments. ■

Carry-over b i 1 1 s from 2003: #SB 1151: Cededlands revenue #SB 1152 SD1 HD 1: Appointments to the Board of Land and Natural Resources, the Land Use Commission, and the coastal zone management advisory body. # SB1155 SD1: Trustee retirement benefits. # SB 1157: Administrator salary eap.

OHA Chairperson Haunani Apoliona testified last year against the amended version of SB 1151, whieh would have reduced the amount of ceded lands revenue due tO OHA. Photo: Naomi Sodetani