Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred H.B. No. 295 entitled:

begs leave to report as follows:

The purpose of this bill is to facilitate the establishment of a comprehensive information system for providing an inventory of, and maintaining information about, lands of the public land trust.

The Hawaiian Political Action Council of Hawaii submitted testimony in support of this bill. The Office of Hawaiian Affairs (OHA) submitted testimony in support of the intent of this bill. The Department of Budget & Finance and the Department of Land and Natural Resources submitted comments.

Your Committee finds that there are serious questions relating to the need to update the ceded lands inventory and its applicability in determining resolution given the accuracy of land valuation figures as well as lease rents for extremely valuable property sometimes based on overall economic benefits rather than actual land value and a percentage of gross receipts, or both. The prohibitive costs also need to be considered in conducting the needed appraisals as well as the time required to conduct the appraisals. Reliance on the inventory to effect resolution could mean a delay of many, many years.

While there is a compelling need to vigorously proceed towards permanent resolution of this long-standing, complex, and controversial issue, your Committee finds that with back and interim payments in place, a resolution need not and should not be rendered during this legislative session, even if a perfect solution was developed. Your Committee believes that the process of arriving at a solution is, in many ways, more important than the solution itself. It is imperative that the Hawaiian people be given the opportunity to meaningfully participate in this process so that they may embrace the final outcome. Neglecting to do so would likely result in the solution being rejected.

While this measure as currently drafted reflects "work in progress", your Committee envisions community forums on all islands conducted jointly by the Legislature and OHA. The legislative panel and OHA shall collaborate to determine presentation content which may include but not be limited to historical perspectives, provisions of the Admissions Act, State Constitution, and enabling statutes, enacted legislation to address issues, payments rendered, litigation and the results of such actions, current factors being addressed, and the options for consideration towards permanent resolution.

Your Committee has amended this bill by deleting its contents and inserting provisions allowing for an all-encompassing approach, which will provide for payment resolution through participation by the Hawaiian people.

The amended bill requires the Legislature and OHA to continue to address and to resolve the matter of just payment throughout the 2003 legislative session with special focus on:

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 295, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 295, H.D. 1, and be referred to the Committee on Finance.