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The Honolulu Advertiser
Posted on: Wednesday, April 2, 2003

Ceded lands bill stirs objections

By Johnny Brannon
Advertiser Staff Writer

Office of Hawaiian Affairs leaders say changes to a ceded land revenue bill would slash unfairly the amount of money the agency should receive each year, making it harder to pay for programs to benefit Native Hawaiians.

Senate Bill 1151, due for a vote today before the House Finance Committee, would restore a formula to calculate the payments after a 2001 Hawai'i Supreme Court decision tossed out the earlier structure.

OHA Chairwoman Haunani Apoliona said an amendment proposed by House lawmakers "is taking it to an extreme that is unacceptable." The change would entitle OHA to a portion of the money generated by the lease of ceded land, but not from buildings and other improvements built on the land, she said.

That would reduce the expected annual payment of $9 million by at least three quarters, said OHA administrator Clyde Namu'o.

House Speaker Calvin Say said the proposal is meant to foster debate and lead to a compromise.

"The intent was not malicious," he said. "I hope the discussion is very educational for the members of the Finance Committee."

Say questioned why OHA should receive income from buildings it did not pay for, and said he hoped a formula could be worked out that would be fair to everyone.

Apoliona said the payments are just because OHA cannot decide what is built on ceded land, so it has no assurance the property earns top dollar.

The land in question, about 1.8 million acres once controlled by the Hawaiian monarchy and ceded to the United States with annexation, went to Hawai'i with statehood.

The state and OHA have long disagreed on how much money from the public land trust should go to the agency, leading to repeated court battles. Apoliona said the proposed change would invite more litigation.

"This is not about OHA threatening the state," she said. "It's about fairness."

The Supreme Court struck down the law that structured previous payments, saying it conflicted with federal law by requiring that OHA receive a portion of money earned by Honolulu International Airport, which sits partially on ceded land.

Federal law requires that money generated by airports be used solely for airport operation or expansion. OHA thus proposes that the state provide an equivalent amount from other sources.

Say said he hoped a solution to all ceded land issues could be reached soon, but that questions likely would remain at the end of this legislative session.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.