STAND. COM. REP. NO. 181

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 571
                                        S.D. 1




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

Sir:

     Your Committee on Water, Land and Hawaiian Affairs, to which
was referred S.B. No. 571 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to extend 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.

     Testimony in support of the measure was received from the
Hawaiian Home Lands Trust Individual Claims Review Panel, the
Native Hawaiian Legal Corporation, the State Council of Hawaiian
Homestead Associations, the director of the Waimea Hawaiian
Homesteaders' Association, Inc., a representative of the Aged
Hawaiians, the Kukahi Coalition, and two concerned citizens.

     The Department of Hawaiian Home Lands and the Attorney
General asked that decision making on the measure be deferred
until after a public hearing on S.B. No. 1316, a bill that
provides an alternative formula for resolving individual claims
of breach of the Hawaiian Home Lands Trust, could be conducted.

     Your Committee finds that Chapter 674, Hawaii Revised
Statutes, established a process by which to resolve individual
claims of breaches of the Hawaiian Home Lands Trust.  The
process, as originally conceived, was supposed to be concluded by

 
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                                   STAND. COM. REP. NO. 181
                                   Page 2


1997.  Due to complications and the sheer volume of claims filed,
not all claims could have been 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.

     Your Committee 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 believes that a further extension is
necessary.

     Your Committee has amended the measure by making technical
amendments to ensure that adequate time exists for claimants to
file an action in Circuit Court if compensation is disputed.

     As affirmed by the record of votes of the members of your
Committee on Water, Land and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 571, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B.
No. 571, S.D. 1, and be referred to the Committee on Ways and
Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water, Land, and
                                   Hawaiian Affairs,



                                   ______________________________
                                   COLLEEN HANABUSA, Chair

 
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