RESOLUTION

WHEREAS, ceded lands held today by the State and federal government comprise the former crown and government lands of the Kingdom of Hawaii that were seized by the United States through the Joint Resolution of Annexation; and

WHEREAS, the United States returned or ceded about 1.4 million acres of land to the State of Hawaii with the proviso that the lands granted together with the proceeds from the sale or other disposition of any such lands and income therefrom, shall be held by the State as a public trust for the support of five purposes, one of which is the betterment of the conditions of native Hawaiians; and

WHEREAS, section 4, article XII of the State Constitution provides that the State shall hold the land as a public trust for two beneficiaries -- native Hawaiians and the general public; and

WHEREAS, in light of this responsibility, the State has an obligation to accurately account for revenues derived from the public land trust; and

WHEREAS, the methodologies used by the various state departments in verifying the amounts of revenue from ceded lands under their respective jurisdictions should be reliable and consistent with generally accepted accounting principles; and

WHEREAS, the use of the Mauna Kea summit by the University of Hawaii and the Research Corporation of the University of Hawaii for astronomy research presents unique ceded land issues that are particularly difficult to resolve, including adequate compensation, further development, environmental impacts, and the sacred nature of the land; and

WHEREAS, the Mauna Kea summit area on the Big Island, home to thirteen telescopes on an 11,288 acre site known as the Mauna Kea Science Preserve, is ceded land; and

WHEREAS, the Mauna Kea summit area is managed by the University of Hawaii under a lease with the Department of Land and Natural Resources; and

WHEREAS, the University of Hawaii leases the Mauna Kea land for one dollar per year to observatories; and

WHEREAS, native Hawaiians consider the Mauna Kea summit to be the sacred home of the goddess Poliahu; and

WHEREAS, the development of Mauna Kea observatories, with more telescopes currently in planning including NASA's four to six new telescopes at the Keck Observatory, is touted as critical to the economic development of the State and the County of Hawaii; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2003, the House of Representatives concurring, that the Auditor is requested to conduct an audit of the Department of Land and Natural Resources, the University of Hawaii, and the Research Corporation of the University of Hawaii, particularly as to Mauna Kea, regarding their methodologies in verifying the amounts of ceded land revenues, with particular emphasis on the reliability and consistency of such methodologies with generally accepted accounting principles; and

BE IT FURTHER RESOLVED that the Auditor report findings and recommendations to the Legislature no later than twenty days prior to the convening of the Regular Session of 2004; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor, Chairperson of the Board of Land and Natural Resources, President of the University of Hawaii, Board of Trustees of the Office of Hawaiian Affairs, and the Auditor.

Report Title:

Ceded Land Revenues Audit