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The Honolulu Advertiser
Posted on: Thursday, February 28, 2008

Ceded-lands deal may hinge on state Senate

By Gordon Y.K. Pang
Advertiser Staff Writer

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The state House, the Lingle administration and the Office of Hawaiian Affairs now appear to all be on the same page regarding a settlement of a longstanding dispute over ceded land revenues.

That could leave the fate of the $200 million settlement package in the hands of the 25 members of the state Senate. A key senator was noncommittal on the new proposal's chances in that body.

Three House committees yesterday voted to approve House Bill 266, House Draft 2, which OKs the state to hand over three parcels of land valued at $187 million and $13 million in cash to OHA. The proposal is intended to settle a dispute between the state and OHA over the agency's share of the revenues collected over the past 30 years from lands "ceded" to the state.

The full House is now expected to approve its version of the proposal and hand it over to the Senate for its consideration. Some senators have voiced strong reservations about the proposed settlement, although the original proposal in the form of Senate Bill 2733 is moving toward a final vote in that body as well.

"The significance of the (House) bill is that it sets the stage for a settlement agreement to go forward," said Rep. Ken Ito, who chairs the Committee on Water, Land, Ocean Resources and Hawaiian Affairs. Ito, D-48th (Kane'ohe), said attorneys from OHA, the House majority and Attorney General Mark Bennett's office worked to craft the latest version.

"It's going to move over to the Senate," predicted House Majority Leader Kirk Caldwell, D-24th (Manoa), who also was part of the team that helped put the new compromise together. The full House likely will vote on the bill in the next week or so.

There are two key differences between SB 2733 — the original bill — and HB 266, the bill passed by the three committees yesterday:

  • The House bill states OHA will get a minimum of $15.1 million in future years as its share of ceded land revenues. A biennial report would be submitted from the state Department of Land and Natural Resources, which would analyze the amount of money derived from ceded lands, and the Legislature would determine how much OHA would ultimately get. The original bill calls for a flat $15.1 million annual payment, a key sticking point for some Native Hawaiians.

  • The House bill deletes all references to a "settlement." Caldwell said: "I believe this legislation sets a policy that enables a settlement but does not set the terms of the settlement. We're the policymaking branch of government."

    OHA BACKING

    Both Bennett and OHA Administrator Clyde Namu'o said they can work with the new bill.

    Bennett said the version hashed out among OHA, House leaders and himself is "a version that we can support." He singled out Caldwell, with whom he has disagreed on other issues, for helping put the plan together.

    "I think (this bill) protects the state and it effectuates the settlement, so I think it's a very positive step," Bennett said.

    The OHA board of trustees won't meet to vote on the House plan until its next regularly scheduled meeting March 6, Namu'o said.

    However, Namu'o added, "we think the House bill represents an improvement and would urge the Senate to review and support it."

    Senate Hawaiian Affairs Chairman Jill Tokuda, D-24th (Kailua, Kane'ohe), said she and other senators are taking a wait-and-see approach on the House proposal.

    Just as senators wanted OHA to take the original proposal out to the public for comment, "we believe that the beneficiaries and the public need to have an opportunity to provide input on ... the new proposed settlement on the table," Tokuda said. "This raises some new questions."

    Tokuda said the Senate is expected to pass SB 2733 and move it to the House. But she also said senators are waiting to hear back from OHA and the administration on public feedback from the past month's public hearings sponsored by OHA and other parties. The Senate gave OHA and the administration until March 26, she said.

    Not all representatives are on board with the House version.

    Rep. Sylvia Luke, D-26th (Pacific Heights, Pauoa, Punchbowl) voted against the bill, while Reps. Karl Rhoads, D-28th (Kaka'ako, Iwilei) and Clifton Tsuji, D-3rd (S. Hilo, Puna, Kea'au) voted in support but with reservations.

    CONCERN EXPRESSED

    Luke said homesteaders in her district, specifically those living in Papakolea, had expressed strong concerns about the proposal.

    "If there's any group of people who should benefit, it's the Native Hawaiians," Luke said. "The homesteads of Papakolea are beneficiaries of the bill, and I value their opinion."

    Many were upset that OHA did not first approach them for their thoughts on the plan, she said.

    Rhoads said "my impression is, from the people I talked to, the Native Hawaiian community is still sort of digesting (the proposal) and is not entirely sure. Obviously, there are different camps in the Hawaiian community and they still have doubts whether this is the best deal or not."

    Tsuji said that while he initially had reservations, especially since the land being turned over would include the property under all of Hilo's main hotel district, he likely will vote without reservations when the bill comes before the full House.

    Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com.

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