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The Honolulu Advertiser
Posted on: Tuesday, July 31, 2007

Hawaiian trust ideas bears close watch

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In the midst of Year 8 in the push for federal recognition of Native Hawaiians, chances of its passage have improved, but not its chances of becoming law.

The shift in majority to the Democrats may prove helpful if, later in the year, Hawai'i's congressional delegation can help push the issue onto the calendar for a floor vote.

However, those sympathetic to the so-called Akaka bill do not hold the super-majority needed to overcome a likely veto from the White House. Getting even the bill-friendly Republicans and fence-sitters to vote against their party's president will be a long shot.

Nevertheless, it's right that the delegation press for passage anyway.

Demonized as it's been, the Akaka bill still represents a viable approach. It would enable Native Hawaiian representatives to negotiate a final settlement of disputed lands and resources overtaken by the federal government with the overthrow of the monarchy and the subsequent annexation of Hawai'i to the U.S.

Persuading the holdouts that Hawaiians deserve a political status similar to what's accorded to Native Americans and Native Alaskans will take more work, it seems, and final success may not come until a president supportive of the idea sits in the White House.

Meanwhile, the Office of Hawaiian Affairs — custodians of what assets the state has designated for Native Hawaiian benefits — is contemplating a "Plan B" strategy, as it should.

The question is: Will that strategy really make trust funds for Hawaiian programs safer than they are today?

OHA attorneys are reviewing a proposal to create a nonprofit limited liability company (LLC) in which to transfer some of the assets, an idea being pursued by OHA trustee Oswald "Oz" Stender. Stender said this might offer some protection for Hawaiian funds that in theory could be challenged legally and withdrawn.

Of course, OHA has prevailed in such challenges so far, which suggests there is another motive. Stender said it is this: An LLC would be able to pursue real estate and other investments more in the manner of a business, with a measure of privacy that the state's sunshine law wouldn't allow.

This ought to at least give pause to a Native Hawaiian beneficiary, who should have the information needed to hold investors accountable.

They need to watch OHA in the next month, when this project is likely to come to open discussion, and ask how and by whom the nonprofit would be run. A Plan B is a useful concept, but the devil is in the details here.