STAND. COM. REP. NO.  1195

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 995

      S.D. 2

      H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committees on Water, Land, & Ocean Resources and Judiciary, to which was referred S.B. No. 995, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE OFFICE OF HAWAIIAN AFFAIRS,"

beg leave to report as follows:

     The purpose of this bill is to resolve the claims relating to the portion of income and proceeds from the public trust lands owing to the Office of Hawaiian Affairs (OHA) between November 7, 1978, and July 1, 2009. 

     Specifically, this bill calls for a two-step transfer of lands valued at $200,000,000 to OHA in satisfaction of the claims.  For the first step, this bill transfers to OHA certain parcels in Kakaako Makai valued at $92,719,415, subject to OHA's right to reject any or all parcels after performing due diligence.  The second step envisions conveyance in 2010 of parcels to OHA valued at $107,280,585. 

     OHA testified in support of this bill with amendments.  The Office of the Attorney General opposed this bill.  Several concerned individuals submitted comments.

     Your Committees have amended this bill by:

     (1)  Clarifying that the time period of the claims addressed by this bill runs from November 7, 1978, and July 1, 2008;

     (2)  Clarifying that the valuation of the Kakaako Makai parcels proposed to be conveyed by this bill is the tax assessed value established during tax year 2007-2008;

     (3)  Deleting the exemption of TMK 2-1-058:41 and 2-1-058:110 from the parcels proposed to be conveyed;

     (4)  Deleting the requirement to transfer the management and control of the conveyed parcels to a sovereign native Hawaiian entity upon its recognition by the United States and the State; and

     (5)  Making technical, nonsubstantive changes for style, clarity, and consistency.

     Your Committees recognize that this bill deals only with past claims of OHA up to July 1, 2008, and does not represent a global settlement of the issue.  Your Committees encourage OHA and the Administration to continue negotiations to resolve all claims pursuant to this issue and respectfully request that the Conference Committee in considering this bill include any settlement reached by the parties as to future payments.  In addition, your Committees recognize that in the negotiations between OHA and the Administration to date, the parcels proposed to be conveyed by this bill are the parcels agreed upon by the parties.   Accordingly, your Committees encourage the conferees to respect this agreement and refrain from including other parcels in this measure.

     As affirmed by the records of votes of the members of your Committees on Water, Land, & Ocean Resources and Judiciary that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 995, S.D. 2, H.D. 1, as amended herein, and recommend that it be referred to the Committee on Finance in the form attached hereto as S.B. No. 995, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committees on Water, Land, & Ocean Resources and Judiciary,

____________________________ JON RIKI KARAMATSU, Chair

____________________________ KEN ITO, Chair