SB1677.DOC

SECTION 1. In January 2008, the Hawaii Supreme Court in Office of Hawaiian Affairs v. Housing and Community Development Corporation of Hawaii, 117 Hawaii 174, 177 P.3d 884 (2008), enjoined the State from selling or otherwise transferring to third parties any ceded lands from the public lands trust until the claims of the native Hawaiian people to the ceded lands have been resolved.

In April 2008, the governor directed the attorney general to petition the United States Supreme Court for a writ of certiorari on whether the passage of Public Law 103-150, otherwise known as the Apology Resolution, strips the State of Hawaii of the authority to sell, exchange, or transfer ceded lands unless or until the State reaches a political settlement with native Hawaiians about the status of these lands. In October 2008, the United States Supreme Court granted the State's petition for certiorari in the foregoing case.

In light of these developments, the legislature believes that it is necessary to reassert its constitutional authority in that it has the sole authority to resolve this issue on behalf of the State and to dispose of lands under the control of the State as it deems appropriate.

The purpose of this Act is to require the adoption of a concurrent resolution by two-thirds majority vote of each house of the legislature to sell or exchange ceded lands.

SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . CEDED LANDS

§171- Sale of ceded lands under the control of state departments and agencies; legislative approval required. (a) This section applies to the following lands:

(1) Land defined as public lands under section 171‑2;

(2) Land set aside pursuant to law for the use of the United States;

(3) Land to which the United States relinquished the absolute fee and ownership under section 91 of the Organic Act prior to the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the state constitution, or other laws;

(4) Land to which the University of Hawaii holds title;

(5) Land to which the Hawaii housing finance and development corporation in its corporate capacity holds title;

(6) Land to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;

(7) Land that is set aside by the governor to the Aloha Tower development corporation; land leased to the Aloha Tower development corporation by any department or agency of the State; or land to which the Aloha Tower development corporation holds title in its corporate capacity;

(8) Land that is set aside by the governor to the agribusiness development corporation; land leased to the agribusiness development corporation by any department or agency of the State; or land to which the agribusiness development corporation in its corporate capacity holds title; or

(9) Land to which the high technology development corporation in its corporate capacity holds title.

(b) Notwithstanding any law to the contrary, no sale of lands under subsection (a) in fee simple, including land sold for roads and streets, shall occur without the prior approval of the sale by the legislature by concurrent resolution to be adopted by each house by at least a two-thirds majority vote of the members to which each house is entitled in a regular or special session at which a concurrent resolution is submitted for approval of the sale.

(c) The state department or agency proposing to sell state land under subsection (b) shall submit for introduction to the legislature a concurrent resolution for review of any sale of state land. The concurrent resolution shall contain a list of all sales of state land proposed by the state department or agency. The concurrent resolution shall contain the following information:

(1) The location and area of the parcels of land to be sold;

(2) The appraisal value of the land to be sold;

(3) The names of all appraisers performing appraisals of the land to be sold;

(4) The date of the appraisal valuation;

(5) The purpose for which the land is being sold; and

(6) A detailed summary of any development plans for the land to be sold.

(d) If the legislature fails to approve the concurrent resolution by at least a two-thirds majority vote of both houses, the transaction shall not be consummated by the state department or agency.

§171- Exchange of lands under the control of state departments and agencies for private land; legislative approval required. (a) This section applies to the following lands:

(1) Land defined as public land under section 171‑2;

(2) Land set aside pursuant to law for the use of the United States;

(4) Land to which the University of Hawaii holds title;

(5) Land to which the Hawaii housing finance and development corporation in its corporate capacity holds title;

(9) Land to which the high technology development corporation in its corporate capacity holds title.

(b) Notwithstanding any law to the contrary, no exchange of lands under subsection (a), including land being used for roads and streets, shall occur without the prior approval of the sale by the legislature by concurrent resolution to be adopted by each house by at least a two-thirds majority vote of the members to which each house is entitled in a regular or special session at which a concurrent resolution is submitted for approval of the exchange.

(c) The state department or agency proposing the exchange shall submit for introduction to the legislature a concurrent resolution for review of any exchange. The concurrent resolution shall contain a list of all exchanges proposed by the state department or agency and shall be submitted with the proposed exchange deeds for the exchanges to be executed by the parties, together with the following information:

(1) The location and area of the parcels of land to be exchanged;

(2) The appraisal value of the lands to be conveyed by the State and the private party;

(3) The names of all appraisers performing appraisals of the parcels of land to be exchanged;

(4) The date of the appraisal valuation;

(5) The purpose for which the parcels of land are being exchanged; and

(6) A detailed summary of any development plans for the parcels of land to be exchanged.

(d) If the legislature fails to approve the concurrent resolution by at least a two-thirds majority vote of both houses, the transaction shall not be consummated by the state department or agency."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1677
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII