Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2476, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to specify interim revenue for the Office of Hawaiian Affairs.

In 1997, a court decision threw into question the amount of funds due to the Office of Hawaiian Affairs under the state constitution. The Legislature passed section 10-13.3 to provide for interim revenue for fiscal years 1997-1998 and 1998-1999 while the issue was undergoing clarification. In fiscal years 1999-2000 and 2000-2001, the Legislature funded the Office of Hawaiian Affair's budget.

More recently, in 2001, another court decision effectively cut off the ceded land revenue to the Office of Hawaiian Affairs due to it under the state constitution. Your Committee finds that the Legislature must do its part to provide funding for the Office of Hawaiian Affairs to continue its mission until a settlement can be reached. Your Committee acknowledges and reaffirms the State's responsibilities for Hawaiians and Native Hawaiians, which are the basis for the creation of the Office of Hawaiian Affairs.

Your Committee has amended this measure by reinstating it in its original form, which better represents legislative intent. In reverting this measure to its original form, your Committee has removed the requirement of an annual report and the definition of "public land trust", and deleted the conforming changes to chapter 10, Hawaii Revised Statutes, with the exception of the amendment to section 10-13.3 specifying the amount of interim revenue for 2002-2003. Your Committee has further amended the interim revenue provision by deleting the appropriation section. Your Committee kept the appropriation section contained in S.B. No. 2477 to provide this funding. The bill also deletes language from the purpose section that stated a purpose outside the scope of the title of the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2476, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2476, S.D. 2.