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The Honolulu Advertiser
Posted on: Thursday, February 13, 2003

State resumes payments of ceded-land revenue

By Vicki Viotti
Advertiser Staff Writer

The Office of Hawaiian Affairs yesterday celebrated the resumption of payments from state ceded-land revenues after a 17-month dry spell, but its officials emphasized that lawmakers still have work to complete before the legal entanglements surrounding the money are cleared.

OHA received the first installment of $2.8 million yesterday, partial payment for the nearly $12.4 million owed from July 1, 2001 through Dec. 31, 2002, said Haunani Apoliona, chairwoman of the OHA board of trustees.

The ceded lands are 1.4 million acres of former crown lands held in trust by the state. Native Hawaiians are among the beneficiaries of money those lands earn.

State legislators must appropriate the remaining back payment of about $9.5 million, she said, citing statements by Gov. Linda Lingle's administration that the money is available in existing accounts. The Lingle administration concluded the appropriation is required for the remaining money because it was collected during the past fiscal year, Apoliona said.

On Tuesday, Lingle also signed an executive order directing state departments to resume future ceded land payments to OHA as well, allotting the office the same 20 percent share of revenues that had been paid before a Hawai'i Supreme Court decision 17 months ago threw the entire payment scheme in question.

On Sept. 12, 2001, that decision invalidated the law that enables the payments because of a legal conflict affecting the distribution of airport revenues. But when former Gov. Ben Cayetano ceased all payments to OHA, trustees protested that a large share was never questioned by the court.

Apoliona said OHA is seeking a revision in the law to solve the legal conflict and emphasized the outstanding $9.5 million debt.

She thanked state officials and OHA beneficiaries for their support so far.

"This is only the first step of two steps," Apoliona said. "To make it whole, it requires the commitment and action by all our partners."