Ka Wai Ola - Office of Hawaiian Affairs, Volume 16, Number 4, 1 April 1999 — Ceded land nego tiations update [ARTICLE+ILLUSTRATION]

Ceded land nego tiations update

OHA CONTINUES to work with the state on resolving Heely. I eommend eaeh board member for working hard to resolve the ceded land negotiations, putting aside differences and reaching unanimity on how to proceed. The significance of this issue has brought us together in the process of reaching consensus. Here's a brief recap on the background of Heely. In 1980, Act 273 amended Hawai'i Revised Stamtes to authonze OHA to e\pend 20 percent of all funds derived from the pubfic land trust as described in Section 10-3. Between 1981 and 1990, an average of $1.4 million was transferred to OHA. This figure was significantly lower than the amount owed,

and OHA initiated discussions with the state for resolution. In 1982, the legislature passed Act 121, whieh authorized the legislative auditor to complete the inventory of ceded lands and to smdy related legal and fiscal issues, as well as the use and distribution of ceded land revenue. In 1983, OHA trastees filed a lawsuit against the state to obtain 20 percent of the ineome and proceeds from lands surrounding harbors, Sand Island, Honolulu International .\irport and Aloha Tower. In 1986, the legislative auditor completed the ceded lands smdy and submitted the iinal report. The auditor found problems with the inventory of ceded and nonceded lands completed by the Department of Land and Natural Resources. The auditor recommended that all pubfic lands be included in the public land trast. Subsequent to fitigation filed m 1987 and after 18 months of negotiations of a ceded lands dispute, OHA and the state reached a settlement, whieh defined both the trast and the revenues allo-

cated to OHA. In 1990, this was codified in Act 304. In 1993, under the Waihe'e administration, the state settled litigation with OHA for $136 million, whieh covered the state's obfigation to Native Hawaiians for the unsegregated use of ceded lands between 1981 to 1990. This figure represented the amount both parties agreed was owed for lands for whieh the state agreed the 20 percent appfied. Although the settlement resolved some issues, additional

claims remained. The state and OHA agreed to continue to negotiate these issues. However, after the eleehon in 1994, the new administration refused to negotiate. Consequently, in 1994, OHA had to file another lawsuit against the state. The Heely decision focused on revenue owed for the last two decades from the four most important sources: the Waikīkī Duty Free store, Hilo Hospital patient services, Hawai'i Housing Authority and Housing Finance and Development Corporation, as well as interest on these revenues as provided by law.

In 1996, Judge Heely agreed with OHA that the state owed OHA the 20 percent revenue share from these four areas, with the exception of Medicaid and Medicare from Hilo Hospital. The state filed an appeal with the Hawai'i Supreme Court. Negotiations began in April 1998, after the Supreme Court urged the parties to reach an agreement rather than wait for its rafing on the Heely decision. It is important for you to know that when we settle Heely, we will be settfing Heely only. We will not be signing off on all future claims for Hawaiians. We ean only settle issues that were raised in Heely. We cannot settle undefined issues for amounts unknown at this time. Although we took a short break when settlement negotiations broke off, we continue to meet with the state on a weekly basis to resolve the ceded land issues. I ask for your patience, your understanding, your support and your trast. E waikahi ka pono i mānalo. It is well to be united in thought that all may have peaee. Aloha pumehana. ■

"I commend eaeh board member for workinp hard to resolve the ceded land negotiations/'

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TRUSTEE MESSAGES

CHAIRPERSON'S MESSAGE

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