Ka Wai Ola - Office of Hawaiian Affairs, Volume 7, Number 3, 1 Malaki 1990 Edition 02 — State, OHA Announee Agreement On Native Hawaiian Entitlements [ARTICLE+ILLUSTRATION]

State, OHA Announee Agreement On Native Hawaiian Entitlements

The Office of Hawaiian Affairs and the state of Hawai'i have reached a tentative agreement for past ineome due OHA under provisions of the state constitution. This settlement, announced jointly on February 8, 1990, now must be ratified by the state legislature. It resolves nearly 10 years of legal maneuvering between OHA and the state over implementation of Article XII of the state constitution. Govemor Waihee hailed the settlement as a major milestone in the history of Hawaiian entitlements. "This is a longstanding issue in our state, one that desperately needed to be resolved, and a lot of time and effort went into making this historic day possible," the govemor said. Thomas K. Kaulukukui, Sr., chairman of the OHA board of trustees, said OHA is extremely pleased to finally reach this settlement. "We believe that an equitable settlement has been reached with regard to OHA's native Hawaiian trust." Kaulukukui said the agreement clarifies provisions of Chapter 10 of the Hawai'i Revised Statutes, the law adopted in 1980 whieh implements Article XII. This article provides that OHA shall receive, on behcilf of native Hawaiians, a pro rata portion of the ineome and proceeds derived from certain public lands that were transferred or "ceded" to the United States at the time of annexation. Chapter 10 sets 20 percent as the pro rata share of ineome due OHA from these lands, part of the crown, public and govemment lands of the kingdom of Hawai'i. But it does not specify the type of ineome to be shared. This agreement differentiates between "proprietary" ineome, i.e., that whieh comes from lease rents and similar use of the land, and "sovereign" ineome, or that

whieh comes from state power, such as taxes. Twenty percent, of the former is due OHA, but not the latter. OHA and the state have agreed that the amount due OHA will be based on actual proprietary revenues that were collected or have resulted from the actual use of the public land tmst. In the next fiscal year, OHA's pro rata share of 199091 revenues relating to this tmst, under the proposed agreement, will be $8.5 million. This is an increase of $7.2 million over the $1 .3 million currently budgeted for OHA. Under the proposed agreement, a plan will be presented to the 1991 state legislature whieh settles on the amount due OHA retroactively and the method of payment, whieh may include land and cash. The govemor said this settlement, covering OHA trust obligations to native Hawaiians (those with 50 percent or more native blood), is only part of a bigger picture. In 1 983 , OHA sued the state for past payment that had been withheld from OHA p>ending a resolution of the issue. But in 1987 the state Supreme Court sent the issue back to the legislature labeling it a political and not a legal matter. The legislature responded in 1988 by adopting the "Right-to-Sue" bill.

This bill directs the govemor to present a proposal to the legislature prior to the 1 99 1 session, resolving all eontroversies relating to state tmst obligations to Hawaiians and native Hawaiians. Still to eome are settlements of (1) state obligations to Hawaiian Home Lands, and (2) state obligations to OHA for all Hawaiians, including those with less than 50 percent native blood. Those settlements are expected later this year, along with a proposal for payment method of the past-due amount. Both the govemor and Kaulukukui emphasized that this settlement in no way absolves the U.S. govemment of its part in the overthrow of the Hawaiian Kingdom in 1893, or the illegal taking of Hawaiian lands upon annexation. Kaulukukui said OHA will eonhnue to press the federal govemment for restitution, and for the retum of ceded lands it still holds.

Th« fuU terms of the agreement are explained in the report of the Board's Committee on Ceded Lands Entitlement. The text of this report is featured on the inside of this special feature. Co-chaired by Trustees Rod Burgess and A. Frenchy DeSoto, the eommiUee has been meeting for more than two years to reach agreement with representatives of the Governor's Office.