REPORT TITLE:
OHA, DHHL


DESCRIPTION:
Transfers all OHA's assets and resources to the Hawaiian Homes
Commission.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2698
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO HAWAIIANS.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The Hawaiian Homes Commission Act is amended by
 
 2 adding a new title to be appropriately designated and to read as
 
 3 follows:
 
 4                 "TITLE :  SERVICES TO HAWAIIANS
 
 5      §A.  Assets.  The department shall be entitled to receive
 
 6 the pro rata portion of revenues from the lands granted to the
 
 7 State by section 5(b) of the Admissions Act, as well as any
 
 8 additional moneys appropriated for the benefit of Hawaiians by
 
 9 the legislature.  The department shall also fold and administer
 
10 any assets transferred to the department by the office of
 
11 Hawaiians affairs.
 
12      §B.  Services and programs.  (a)  The department shall use
 
13 the assets transferred to it under section    -A for the general
 
14 welfare and benefit of Hawaiians and native Hawaiians.  Permitted
 
15 uses for the assets shall include services and programs in the
 
16 areas of:
 
17      (1)  Health;
 
18      (2)  Education;
 
19      (3)  Culture;
 

 
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 1      (4)  Language;
 
 2      (5)  Social services;
 
 3      (6)  Employment; and
 
 4      (7)  Economic development.
 
 5      Moneys received from section 5(b) of the Admissions Act
 
 6 shall be used only for the benefit of native Hawaiians.
 
 7      (b)  The department shall prepare and make public, for its
 
 8 responsibilities under this title:
 
 9      (1)  Statements of statewide objectives and program
 
10           objectives;
 
11      (2)  Program plans that describe the programs that implement
 
12           the statewide objectives and program objectives;
 
13      (3)  Program performance reports that assess the
 
14           effectiveness in attaining the objectives;
 
15      (4)  Program costs; and
 
16      (5)  Long-range financial plans.
 
17      §C.  Annual report.  The department shall prepare and make
 
18 public an annual report, which shall include an enumeration of
 
19 the department's activities, income, and expenditures during the
 
20 year.  Expenditures of revenues from the section 5(b) lands shall
 
21 be enumerated separately. 
 
22      The annual report for the previous fiscal year shall be
 
23 submitted to the governor and the legislature ten days prior to
 

 
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 1 the convening of each regular session of the legislature.  The
 
 2 department shall prepare and submit special reports as may be
 
 3 required by the legislature."
 
 4      SECTION 2.  Section 101, Hawaiian Homes Commission Act, is
 
 5 amended to read as follows:
 
 6      "[[]§101.  Purpose.[]]  (a)  The Congress of the United
 
 7 States and the State of Hawaii declare that the policy of this
 
 8 Act is to enable native Hawaiians to return to their lands in
 
 9 order to fully support self-sufficiency for native Hawaiians and
 
10 the self-determination of native Hawaiians in the administration
 
11 of this Act, and the preservation of the values, traditions, and
 
12 culture of native Hawaiians.  The policy of this Act is also to
 
13 support Hawaiians and native Hawaiians in general betterment,
 
14 including but not limited to the areas of health, education,
 
15 culture, language, social services, employment, and economic
 
16 development.
 
17      (b)  The principal purposes of this Act include but are not
 
18 limited to:
 
19      (1)  Establishing a permanent land base for the benefit and
 
20           use of native Hawaiians, upon which they may live,
 
21           farm, ranch, and otherwise engage in commercial or
 
22           industrial or any other activities as authorized in
 
23           this Act;
 

 
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 1      (2)  Placing native Hawaiians on the lands set aside under
 
 2           this Act in a prompt and efficient manner and assuring
 
 3           long-term tenancy to beneficiaries of this Act and
 
 4           their successors;
 
 5      (3)  Preventing alienation of the fee title to the lands set
 
 6           aside under this Act so that these lands will always be
 
 7           held in trust for continued use by native Hawaiians in
 
 8           perpetuity;
 
 9      (4)  Providing adequate amounts of water and supporting
 
10           infrastructure, so that homestead lands will always be
 
11           usable and accessible; [and]
 
12      (5)  Providing financial support and technical assistance to
 
13           native Hawaiian beneficiaries of this Act so that by
 
14           pursuing strategies to enhance economic self-
 
15           sufficiency and promote community-based development,
 
16           the traditions, culture and quality of life of native
 
17           Hawaiians shall be forever self-sustaining[.]; and
 
18      (6)  Providing for the general betterment of Hawaiians and
 
19           native Hawaiians.
 
20      (c)  In recognition of the solemn trust created by this Act,
 
21 and the historical government to government relationship between
 
22 the United States and Kingdom of Hawaii, the United States and
 
23 the State of Hawaii hereby acknowledge the trust established
 

 
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 1 under this Act and affirm their fiduciary duty to faithfully
 
 2 administer the provisions of this Act on behalf of the native
 
 3 Hawaiian beneficiaries of the Act.
 
 4      (d)  Nothing in this Act shall be construed to:
 
 5      (1)  Affect the rights of the descendants of the indigenous
 
 6           citizens of the Kingdom of Hawaii to seek redress of
 
 7           any wrongful activities associated with the overthrow
 
 8           of the Kingdom of Hawaii; or
 
 9      (2)  Alter the obligations of the United States and the
 
10           State of Hawaii to carry out their public trust
 
11           responsibilities under section 5 of the Admission Act
 
12           to native Hawaiians and other descendants of the
 
13           indigenous citizens of the Kingdom of Hawaii."
 
14      SECTION 3.  Section 201, Hawaiian Homes Commission Act, is
 
15 amended by adding a new definition to be appropriately inserted
 
16 and to read as follows:
 
17      "The term "Hawaiian" means any descendant of the blood of
 
18 the races inhabiting the Hawaiian islands previous to 1778."
 
19      SECTION 4.  Section 10-2, Hawaii Revised Statutes, is
 
20 amended by deleting the definitions of "public land trust" and
 
21 "revenue".
 
22      [""Public land trust" means those lands:
 
23      (1)  Which were ceded to the United States by the Republic
 

 
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 1           of Hawaii under the joint resolution of annexation,
 
 2           approved July 7, 1898 (30 Stat. 750), or acquired in
 
 3           exchange for lands so ceded, and which were conveyed to
 
 4           the State of Hawaii by virtue of section 5(b) of the
 
 5           Act of March 18, 1959 (73 Stat. 4, the Admission Act),
 
 6           (excluding therefrom lands and all proceeds and income
 
 7           from the sale, lease, or disposition of lands defined
 
 8           as "available lands" by section 203 of the Hawaiian
 
 9           Homes Commission Act, 1920, as amended);
 
10      (2)  Retained by the United States under section 5(c) and
 
11           5(d) of the Act of March 18, 1959, and later conveyed
 
12           to the State under section 5(e) of the Act of March 18,
 
13           1959; and
 
14      (3)  Which were ceded to and retained by the United States
 
15           under section 5(c) and 5(d) of the Act of March 18,
 
16           1959, and later conveyed to the State pursuant to the
 
17           Act of December 23, 1963 (Public Law 88-233, 77 Stat.
 
18           472).
 
19      "Revenue" means all proceeds, fees, charges, rents, or other
 
20 income, or any portion thereof, derived from any sale, lease,
 
21 license, permit, or other similar proprietary disposition,
 
22 permitted use, or activity, that is situated upon and results
 
23 from the actual use of lands comprising the public land trust,
 

 
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 1 and including any penalties or levies exacted as a result of a
 
 2 violation of the terms of any proprietary disposition, but
 
 3 excluding any income, proceeds, fees, charges, or other moneys
 
 4 derived through the exercise of sovereign functions and powers
 
 5 including:
 
 6      (1)  Taxes;
 
 7      (2)  Regulatory or licensing fees;
 
 8      (3)  Fines, penalties, or levies;
 
 9      (4)  Registration fees;
 
10      (5)  Moneys received by any public educational institution,
 
11           including the University of Hawaii, and the community
 
12           college system, from its educational programs and
 
13           ancillary services, such as tuition, registration fees,
 
14           meals, books, grants, or scholarships;
 
15      (6)  Interagency and intra-agency administrative fees or
 
16           assessments;
 
17      (7)  Moneys derived from or provided in support of penal
 
18           institutions and programs;
 
19      (8)  Grants, carry-overs, and pass-throughs;
 
20      (9)  Federal moneys, including federal-aid, grants,
 
21           subsidies, and contracts;
 
22     (10)  Moneys collected from the sale or dissemination of
 
23           government publications;
 

 
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 1     (11)  Department of defense proceeds on state-improved lands;
 
 2           and
 
 3     (12)  Moneys derived from the development of housing projects
 
 4           as defined under section 201G-1 and 201G-112 after the
 
 5           conveyance of the public land trust to the housing and
 
 6           community development corporation of Hawaii except as
 
 7           provided under section 10-13.6."]
 
 8      SECTION 5.  Section 10-5, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§10-5 Board of trustees; powers and duties.  The board
 
11 shall have the power in accordance with law to:
 
12     [(1)  Manage, invest, and administer the proceeds from the
 
13           sale or other disposition of lands, natural resources,
 
14           minerals, and income derived from whatever sources for
 
15           native Hawaiians and Hawaiians, including all moneys
 
16           received by the office equivalent to that pro rata
 
17           portion of the revenue derived from the public land
 
18           trust referred to in section 10-2;
 
19      (2)  Exercise control over real and personal property set
 
20           aside to the office by the State of Hawaii, the United
 
21           States of America, or any private sources, and
 
22           transferred to the office for native Hawaiians and
 
23           Hawaiians; provided that all of the properties acquired
 

 
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 1           by the office shall be controlled and managed for the
 
 2           purposes of this chapter, subject to any limitations of
 
 3           the trust provisions established by article XII,
 
 4           sections 5 and 6, of the state Constitution;
 
 5      (3)  Collect, receive, deposit, withdraw, and invest money
 
 6           and property on behalf of the office;
 
 7      (4)] (1)  Formulate policy relating to the affairs of native
 
 8           Hawaiians and Hawaiians, provided that such policy
 
 9           shall not diminish or limit the benefits of native
 
10           Hawaiians under article XII, section 4, of the state
 
11           Constitution;
 
12     [(5)] (2)  Otherwise act as a trustee as provided by law;
 
13     [(6)] (3)  Delegate to the administrator, its officers and
 
14           employees such powers and duties as may be proper for
 
15           the performance of the powers and duties vested in the
 
16           board;
 
17     [(7)] (4)  [Provide] Apply for federal grants and provide
 
18           grants to public or private agencies for pilot
 
19           projects, demonstrations, or both, where those projects
 
20           or demonstrations fulfill criteria established by the
 
21           board;
 
22     [(8)] (5)  Make available technical and financial assistance
 
23           and advisory services to any agency or private
 

 
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 1           organization for native Hawaiian and Hawaiian programs,
 
 2           and for other functions pertinent to the purposes of
 
 3           the office of Hawaiian affairs.  Financial assistance
 
 4           may be rendered through contractual arrangements as may
 
 5           be agreed upon by the board and any such agency or
 
 6           organization; and
 
 7     [(9)] (6)  Adopt and use a common seal by which all official
 
 8           acts shall be authenticated."
 
 9      SECTION 6.  Section 10-13, Hawaii Revised Statutes, is
 
10 amended by amending subsection (b) to read as follows:
 
11      "(b)  Income derived from the sale of goods or services [and
 
12 all moneys received by the office equivalent to that pro rata
 
13 portion of the revenue derived from the public land trust
 
14 described in section 10-2,] shall be credited to special or other
 
15 funds; provided that upon the recommendation of the office, the
 
16 comptroller shall establish such other separate accounts or
 
17 special funds for other designated revenues as may be directed by
 
18 the board or its authorized representative."
 
19      SECTION 7.  Section 10-13.5, Hawaii Revised Statutes, is
 
20 repealed.
 
21      ["§10-13.5  Use of public land trust proceeds.  Twenty per
 
22 cent of all revenue derived from the public land trust shall be
 
23 expended by the office for the betterment of the conditions of
 

 
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 1 native Hawaiians."]
 
 2      SECTION 8.  Section 10-13.6, Hawaii Revised Statutes, is
 
 3 repealed.
 
 4      ["§10-13.6  Public land trust conveyed for the development
 
 5 of housing projects.(a)  This section applies to the revenue
 
 6 derived from any land of the public land trust which is conveyed
 
 7 by the department of land and natural resources to the housing
 
 8 and community development corporation of Hawaii for the
 
 9 development of housing projects as defined under section 201G-1
 
10 and 201G-112.  The amount due to the office shall be determined
 
11 by multiplying the fair market value of the land by twenty per
 
12 cent.  For the purpose of this section, "fair market value" means
 
13 the amount of money which a purchaser willing but not obliged to
 
14 buy the land would pay to an owner willing but not obliged to
 
15 sell it, taking into consideration the highest and best use of
 
16 the land.  For the purpose of this section, "highest and best
 
17 use" means the most profitable, probable, and legal use to which
 
18 the land can be put.
 
19      (b)  Fair market value shall be determined on a per acre
 
20 basis pursuant to appraisals performed in conformance with the
 
21 uniform standards of professional appraisal practice as adopted
 
22 by the department of commerce and consumer affairs, not more than
 
23 ninety days before the conveyance of the land to the housing and
 

 
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 1 community development corporation of Hawaii.  The appraisals
 
 2 shall be performed by two disinterested appraisers each of whose
 
 3 services shall be contracted by the department of land and
 
 4 natural resources and the office, respectively.  If the land is
 
 5 of the public land trust and sugarcane lands, as defined by
 
 6 Article XII, Section 1 of the State Constitution, the office and
 
 7 the department of Hawaiian home lands shall contract the services
 
 8 of one appraiser.  The parties shall contract the services of the
 
 9 appraisers within thirty working days after the department of
 
10 land and natural resources gives written notice to the office,
 
11 together with the department of Hawaiian home lands if the land
 
12 is of the public land trust and sugarcane lands, of the proposed
 
13 conveyance of the land to the housing and community development
 
14 corporation of Hawaii.
 
15      If any party fails or refuses to contract the services of an
 
16 appraiser, then the other party may petition the presiding judge
 
17 of the circuit court of the State in the county where the land is
 
18 located to appoint the other of the two appraisers.  If the two
 
19 appraisers are unable to agree on a fair market value, then
 
20 within thirty days thereafter, the department of land and natural
 
21 resources and the office, together with the department of
 
22 Hawaiian home lands if the land is of the public land trust and
 
23 sugarcane lands, shall contract for the services of a mutually
 

 
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 1 selected third appraiser and the decision of the majority of the
 
 2 appraisers shall be final with respect to determination of the
 
 3 fair market value.  If the department of land and natural
 
 4 resources and the office, together with the department of
 
 5 Hawaiian home lands if the land is of the public land trust and
 
 6 sugarcane lands, are unable to agree on the selection of the
 
 7 third appraiser, any party may petition the presiding judge of
 
 8 the circuit court of the State in the county where the land is
 
 9 located to appoint the third appraiser.
 
10      (c)  The amount due to the office shall be due and payable
 
11 by the State on the date of conveyance of the land to the housing
 
12 and community development corporation of Hawaii.  Payment to the
 
13 office may be in the form of public lands or moneys.  If payment
 
14 is to be in the form of public lands, the lands shall be mutually
 
15 agreed upon by the department of land and natural resources and
 
16 the office, and shall be of value comparable to the amount due to
 
17 the office.  Any monetary payment shall be an obligation of the
 
18 housing and community development corporation of Hawaii.  Any
 
19 portion of that amount that is not paid on the date of conveyance
 
20 shall be subject to simple interest annually, established
 
21 pursuant to the fifteen year treasury rate at the time of the
 
22 conveyance and payable annually by the State to the office.
 
23      (d)  Twenty per cent of the revenue received by the housing
 

 
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 1 and community development corporation of Hawaii from commercial,
 
 2 industrial, or other non-residential use of the land shall be
 
 3 paid annually to the office, provided that:
 
 4      (1)  The office shall not receive payment under this
 
 5           subsection until the housing and community development
 
 6           corporation of Hawaii recovers all moneys previously
 
 7           paid to the office for that portion of land used for
 
 8           commercial, industrial, or other non-residential
 
 9           purposes;
 
10      (2)  If borrowed moneys are used to finance the development
 
11           of land for commercial, industrial, or other non-
 
12           residential purposes, annual payments due to the office
 
13           under this subsection shall be made pursuant to the
 
14           following order of priority:
 
15           (A)  The housing and community development corporation
 
16                of Hawaii satisfies as a first priority the amount
 
17                computed annually on the pro rata portion (not the
 
18                total debt service over the life of the debt) of
 
19                its total debt service on the borrowed moneys;
 
20           (B)  The housing and community development corporation
 
21                of Hawaii satisfies as a second priority its
 
22                operating expense obligations (directly incurred
 
23                from the development and operating of land used
 

 
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 1                for commercial, industrial, or other non-
 
 2                residential purposes) in an amount not exceeding
 
 3                one per cent of the revenues for the project;
 
 4           (C)  After the first and second priorities are
 
 5                satisfied, the housing and community development
 
 6                corporation of Hawaii shall make annual payments
 
 7                due to the office under this subsection from any
 
 8                remaining revenues; and
 
 9      (3)  In the event of a sale of land used for commercial,
 
10           industrial, or other non-residential purposes, the
 
11           office shall receive twenty per cent of the revenue
 
12           received by the housing and community development
 
13           corporation of Hawaii."]
 
14      SECTION 9.  Section 10-15.5, Hawaii Revised Statutes, is
 
15 repealed.
 
16      ["[§10-15.5  Annual report; use of land trust proceeds.]
 
17 The office of Hawaiian affairs shall submit an annual report to
 
18 the governor and the legislature not less than thirty days before
 
19 the convening of each regular session.  The report shall describe
 
20 the use of the public land trust proceeds for the betterment of
 
21 the conditions of the native Hawaiians and provide detailed
 
22 information, including, but not limited to, the following:
 
23      (1)  Statements of statewide objectives and program
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1           objectives;
 
 2      (2)  Program plans that describe the programs that implement
 
 3           the statewide objectives and program objectives;
 
 4      (3)  Program performance reports that assess the
 
 5           effectiveness in attaining the objectives;
 
 6      (4)  Program costs; and
 
 7      (5)  Long-range financial plans."] 
 
 8      SECTION 10.  Section 10-13.3, Hawaii Revised Statutes, is
 
 9 repealed.
 
10      ["[§10-13.3]  Interim revenue.  Notwithstanding the
 
11 definition of revenue contained in this chapter and the
 
12 provisions of section 10-13.5, and notwithstanding any claimed
 
13 invalidity of Act 304, Session Laws of Hawaii 1990, the income
 
14 and proceeds from the pro rata portion of the public land trust
 
15 under article XII, section 6 of the state constitution for
 
16 expenditure by the office of Hawaiian affairs for the betterment
 
17 of the conditions of native Hawaiians for each of fiscal year
 
18 1997-1998 and fiscal year 1998-1999 shall be $15,100,000."]
 
19      SECTION 11.  Chapter 10, part II, Hawaii Revised Statutes,
 
20 is repealed.
 
21      SECTION 12.  All assets and revenues of the office of
 
22 Hawaiian affairs, other than federal grants and private
 
23 contributions, shall be transferred to the Hawaiian Homes
 

 
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 1 Commission.
 
 2      SECTION 13.  In codifying the new title added to the
 
 3 Hawaiian Homes Commission Act, by section 1 of this Act, the
 
 4 revisor of statutes shall substitute appropriate section numbers
 
 5 for the letters used in the designation of the new sections in
 
 6 this Act.
 
 7      SECTION 14.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 15.  This Act shall take effect upon its approval;
 
10 provided that sections 1 and 2 of this Act shall become effective
 
11 upon the approval by Congress of the amendments proposed by
 
12 sections 1 and 2 of this Act.
 
13 
 
14                           INTRODUCED BY:_________________________