State representatives disagree with state senators on what property to give the Office of Hawaiian Affairs to settle a long-standing dispute over the agency's share of income generated by the use of ceded lands.

The House Hawaiian Affairs Committee yesterday voted to amend Senate Bill 995 to specify that the package would be worth $200 million and include acreage in Kaka'ako Makai and parcels to be determined later.

That differs from the Senate's version, which also included a number of other parcels, including lands in Kahana Valley, Ke'ehi Lagoon and the summit of Mauna Kea.

The bill now goes to three House committees: Water, Land and Ocean Resources; Judiciary; and Finance.

State Attorney General Mark Bennett yesterday testified against the Senate version, arguing that it specified no dollar value for what is to be handed over. It also allows OHA to reject any parcels listed, Bennett told the committee.

"It just doesn't strike me as good government," Bennett said.

OHA Trustee Walter Heen said the agency supports the intent of the Senate version, but prefers that OHA gain title to the Kaka'ako Makai lands first, and negotiate later the issue of what else the agency would get. Heen said the proposal regarding Mauna Kea and other lands "need further review and analysis before any conclusions can be reached about whether the properties can be effectively employed by OHA for the benefit of our beneficiaries."

OHA Administrator Clyde Namu'o said the agency has been researching the potential for development on the Kaka'ako Makai parcel.

In addressing concerns raised by the Friends of Kewalo Basin Park Association, Namu'o said the focus has been on "low-rise commercial" development rather than high-rise residential. "Open markets, that kind of thing," he said.

While Kaka'ako Makai was one of the parcels OHA proposed as part of the settlement at the beginning of this year's Legislature, the Mauna Kea, Ke'ehi and other lands were inserted late last month by Senate Hawaiian Affairs Chairman Clayton Hee. Most have some cultural or historical significance to Native Hawaiians, and at least some were part of a failed settlement package originally proposed by former Gov. Ben Cayetano in the 1990s when Hee was an OHA trustee. The total value is less than $200 million, Hee said.

Tomorrow, Hee's Senate committee will hear the House version of the settlement, which includes Kaka'ako Makai and other lands to be determined later.

A package last year that included Kaka'ako Makai, lands along Hilo's Banyan Drive and property in Kalaeloa was endorsed by OHA and Gov. Linda Lingle, but failed to get the Legislature's approval.

The 1959 Admission Act entrusted more than 1.2 million acres of "ceded" lands to the new state of Hawai'i as a "public" trust to be used for five purposes, including the betterment of Native Hawaiians. OHA was designated the administrator of the Native Hawaiian share after the agency was established in 1980. That same year, the Legislature passed Act 173, which stipulated "20 percent of funds derived from the public land trust" is to be spent by OHA. OHA, state administrations, the Legislature and the courts have grappled over the issue ever since.

Also moving out of the Hawaiian Affairs Committee yesterday was Senate Bill 1085, which calls for a moratorium on the sale of ceded lands by the state until unresolved claims to those lands are dealt with.

OHA and Bennett are awaiting a U.S. Supreme Court decision on the state's appeal of a state Supreme Court decision prohibiting any sales until the claims are resolved,

Last Friday, a joint hearing of the Water, Land and Ocean Resources Committee and the Judiciary Committee passed out its version of Senate Bill 1677, which now stipulates that the sale of any public lands — not just ceded lands — would be subject to a two-thirds approval of both the House and Senate.

Rep. Sharon Har, vice chairwoman of the Water, Land and Ocean Resources Committee, said the panel made the change to avoid potential constitutional challenges.

The sale of remnant parcels would be allowed, as already stipulated by the courts.