Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 911 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify what revenues derived from the public land trust constitute the Office of Hawaiian Affairs' pro rata share of public land trust revenues that are to be used for the betterment of conditions of native Hawaiians.

In addition, this measure clarifies the lands comprising the public lands under chapter 10, Hawaii Revised Statutes.

Your Committee finds that the Legislature passed enabling legislation to effectuate a portion of article XII, section 4, of the Hawaii Constitution addressing the public land trust. In 1980, the Legislature mandated that "[t]wenty per cent of all revenue derived from the public land trust shall be expended by the office [of Hawaiian affairs] for the betterment of native Hawaiians." Act 273, Session Laws of Hawaii 1980, section 1, subsequently codified as section 10-13.5, Hawaii Revised Statutes.

Yet, for some time, the Office of Hawaiian Affairs did not receive from the State the funds required by section 10-13.5, Hawaii Revised Statutes. Following a lawsuit and settlement on this matter, Act 304, Session Laws of Hawaii 1990 (Act 304), was enacted in a legislative effort to effectuate the essence of the settlement agreement and to define exactly what constituted revenues derived from the public land trust. The definition of revenue provided under Act 304 enabled the State to more readily calculate exactly what amounts were owed to the Office of Hawaiian Affairs in fulfillment of its obligation to pay over twenty per cent of public land trust revenues.

Following a Hawaii Supreme Court decision on an appeal on the Office of Hawaiian Affairs lawsuit, Act 304 was effectively repealed. While the Hawaii Supreme Court acknowledged the State's constitutional obligation to native Hawaiians, the court left it up to the Legislature for determination. This again left open the matter of to what revenues that the Office of Hawaiian Affairs public land trust was entitled.

Your Committee believes that with this measure, the State's constitutional obligation will be furthered and that it will give effect to the right of native Hawaiians to benefit from the public land trust. In doing so, the State will finally take a significant step in effecting a lasting reconciliation with all Hawaiians.

Upon further review, your Committee amended this measure by:

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. 911, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 911, S.D. 1.