CONFERENCE COMMITTEE REPORT NO. 177

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 1675
                                  H.D. 1
                                  S.D. 1
                                  C.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 1675, H.D. 1, S.D. 1, entitled:

    "A BILL FOR AN ACT RELATING TO HAWAIIAN HOME LANDS TRUST
    INDIVIDUAL CLAIMS,"

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to extend the time to process
individual Hawaiian home lands trust claims and provide funding
to compensate claimants who received favorable judgments from the
Hawaiian Home Lands Trust Individual Claims Review Panel.

     Specifically, the measure:

     (1)  Extends the Hawaiian Home Lands Trust Individual Claims
          Review Panel and the process to resolve individual
          claims of breaches of the Hawaiian Home Lands Trust for
          two more years to the year 2001;

 
 
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     (2)  Adds language that establishes a special account in the
          Hawaiian Home Lands Trust Fund for the purpose of
          compensating successful claimants who were awarded a
          monetary judgment by the Hawaiian Home Lands Trust
          Individual Claims Review Panel under Chapter 674,
          Hawaii Revised Statutes;

     (3)  Transfers the cash value credit ($14,498,565) the State
          sought to obtain from the Department of Hawaiian Home
          Lands for lands conveyed by Act 95, Session Laws of
          Hawaii 1996, for settlement payments owed under Chapter
          673, Hawaii Revised Statutes, to the special account in
          the Hawaiian Home Lands Trust Fund;

     (4)  Authorizes the issuance of general obligation bonds in
          the amount of $1,936,111, to cover the additional
          amount necessary to compensate successful claimants who
          were awarded a monetary judgment by the Hawaiian Home
          Lands Trust Individual Claims Review Panel under
          Chapter 674, Hawaii Revised Statutes;

     (5)  Sunsets the special account on June 30, 2004; and

     (6)  States that the awards authorized by the Hawaiian Home
          Lands Trust Individual Claims Review Panel in either
          their 1997 or 1999 report and settled under this
          measure shall not serve as a precedent for any other
          unresolved claims brought under Chapter 674, Hawaii
          Revised Statutes.

     Your Committee on Conference finds that Chapter 674, Hawaii
Revised Statutes, established a process to resolve individual
claims of breaches of the Hawaiian Home Lands Trust.  The
process, as originally conceived, was supposed to be concluded by
1997.  Due to complications and the sheer volume of claims to be
filed, not all claims could be filed by the original closing
date.  To remedy these problems the Legislature enacted Act 382,
Session Laws of Hawaii 1997, which in part, extended the claims
resolution process until December 31, 1999, and required the
Attorney General, the Director of Finance, the Chairperson of the
Hawaiian Homes Commission, and the Chairperson of the Hawaiian
Home Lands Trust Individual Claims Review Panel to convene and
establish a revised formula by which to compensate claimants.  In
1998, Circuit Court Judge Marie Milks opined that the composition
of the group to determine a revised formula had the appearance of
bias and, therefore, ruled that the group was unconstitutional,
thereby further slowing down the claims resolution process.


 
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     Your Committee on Conference believes that justice must
prevail for those beneficiaries who have faithfully and patiently
waded through the complex claims resolution process only to be
put off year after year.  Unfortunately, with the recent Circuit
Court ruling which has clouded the issue of the amount of
compensation owed to claimants, your Committee on Conference
believes that a further extension is necessary.

     Your Committee on Conference additionally finds that since
the enactment of Chapter 674, Hawaii Revised Statutes, the State
has fallen on hard financial times.  Although your Committee on
Conference believes that the Legislature remains committed to
resolving past breaches of trust with individual claimants,
general revenues to fund such a compensation package are
virtually nonexistent.

     In order to find innovative alternatives to compensate
successful claimants who have been awarded monetary judgments by
the Hawaiian Home Lands Trust Individual Claims Review Panel
established pursuant to section 674-3, Hawaii Revised Statutes,
without adversely impacting on the State's general fund, your
Committee has amended the measure by:

     (1)  Extending the life of the Hawaiian Home Lands Trust
          Individual Claims Review Panel for one more year
          instead of two years;

     (2)  Deleting sections 6 through 11 of the measure which
          provide specific methods of financing to provide
          compensation to claimants who received favorable
          judgments from the Hawaiian Home Lands Trust Individual
          Claims Review Panel;

     (3)  Inserting provisions which establish a Hawaiian Home
          Lands Trust Individual Claims Compensation Commission
          to develop alternative solutions for compensating
          claimants; and

     (4)  Requiring the Hawaiian Home Lands Trust Individual
          Claims Compensation Commission to report its
          recommendations to the Legislature prior to the regular
          session of 2000.


 
 
 
 
 
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     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 1675, H.D. 1, S.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 1675, H.D. 1, S.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
COLLEEN HANABUSA, Co-Chair         PAUL T. OSHIRO, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
CAROL FUKUNAGA, Co-Chair           SCOTT K. SAIKI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
ANDREW LEVIN, Co-Chair             ERIC G. HAMAKAWA, Member
                                   
                                   
                                   
______________________________     ______________________________
JONATHAN CHUN, Member              BRIAN Y. YAMANE, Member
                                   
                                   
                                   
______________________________     ______________________________
BOB NAKATA, Member                 BARBARA MARUMOTO, Member



______________________________
JOE TANAKA, Member



______________________________
WHITNEY ANDERSON, Member