It will be much more difficult for the state to sell off ceded lands under a bill signed by Gov. Linda Lingle yesterday.

Act 09-176, formerly Senate Bill 1677, requires the governor to obtain a two-thirds majority vote from both the House and Senate before being able to sell any of the roughly 1.2 million acres of ceded lands in the state.

The lawsuit that first brought on the law, however, remains alive. University of Hawai'i Hawaiian studies professor Jonathan Osorio, one of the original plaintiffs, is not party to the agreement and is expected to continue with the case in the Hawai'i Supreme Court.

The Office of Hawaiian Affairs and four Native Hawaiians, including Osorio, sued in 1994 to bar the state from selling ceded lands until claims by Native Hawaiians to those lands are resolved. The U.S. Supreme Court on March 31 ruled that the Hawai'i Supreme Court erred in relying on the 1993 Congressional Apology Resolution as the legal basis in ruling for a moratorium that essentially agreed with the plaintiffs.

The high court sent the case back to the Hawai'i court, although lawyers for the state and OHA have different opinions as to what the Hawai'i justices are allowed to do.

Senate Bill 1677, signed by Lingle this morning, is seen as a compromise among OHA, the Lingle administration and key state lawmakers to remove the uncertainty of an impending Hawai'i Supreme Court ruling.

But Osorio will continue with the case, said Yuklin Aluli, one of his attorneys. "He doesn't believe that the bill the governor signed is a sufficient remedy," Aluli said.

The next step calls for state Attorney General Mark Bennett to formally notify the Hawai'i Supreme Court that the bill has become law. That will allow the court to establish a briefing schedule for the lawsuit.

The ceded lands, which comprise nearly all the lands now owned by the state government, were under the control of the Hawaiian government at the time of the 1893 overthrow and, after annexation, transferred to the state under the 1959 Admission Act.

OHA administrator Clyde Namu'o applauded Lingle's action, and said the agency will now follow Bennett's lead.

"We believe that dismissing this appeal is in the best interest of the Hawaiian community," Namu'o said.

Jocelyn Doane, one of the co-founders of the Kupu'aina Coalition formed to stop the sale of ceded lands, said she is happy that Lingle signed the bill and that she sees the benefit of a settlement.

On the other hand, Doane said she and others also support Osorio and his efforts.

The Lingle administration has stated repeatedly that it has no immediate plans to sell ceded lands, but wants to simply maintain the state's right to do so.