Ka Wai Ola - Office of Hawaiian Affairs, Volume 39, Number 2, 1 February 2022 — WHAT YOU NEED TO KNOW ABOUT THE PUBLIC LAND TRUST [ARTICLE+ILLUSTRATION]

WHAT YOU NEED TO KNOW ABOUT THE PUBLIC LAND TRUST

WHAT IS THE PUBLIC LANDTRUST? The Public Land Trust (PLT) comprises some 1.4 million acres of land conveyed to the State of Hawai'i from the federal government in 1959 when Hawai'i transitioned from being a U.S. "Territory" to a U.S. "State." These lands were formerly known as "ceded lands" and are what remain of the "Crown" and "Government" lands of the Hawaiian Kingdom that were seized from Queen Lili'uokalani in the aftermath of the illegal overthrow in 1893. WHAT IS OHA'S CONNECTION T0 THE PLT? OHA was established as an outcome of the 1978 Hawai'i State Constitutional Convention specifically to "manage all ineome and proceeds from that pro rata portion of the public land trust for Native Hawaiians" (Article XII). Respected kūpuna such as Aunty Frenchy DeSoto, former governor John Waihe'e and Unele Walter Ritte participated in the 1978 Con Con and were instrumental in helping to create OHA as a state agency tasked with the kuleana of bettering the conditions of the lāhui. HOW WAS IT DECIDED THAT OHA SH0ULD RECEIVE 20% 0F PLT REVENUES? In 1980, Act 273 enacted section 10-13-5 of the Hawai'i Revised Statutes establishing OHA's pro rata share of PLT revenues at 20% to be expended by OHA. The "betterment of the conditions of Native Hawaiians" is one of the five expressed purposes of PLT revenues in the 1959 Admission Act. So, 20% reflects one-fifth of PLT revenues. WHY IS 0HA 0NLY RECEIVING $15.1 MILLI0N ANNUALLY? H0W WAS THAT DECIDED? In 2006, in the absence of an accurate accounting of PLT revenues, the legislature enacted Act 178 whieh set the "interim revenue" amount to be conveyed to OHA at $15.1 million per year. It also established a requirement for state agencies to provide an accounting of annual PLT inventory and receipts and revenues generated by the PLT lands they administer.

WHAT IS 0HA'S R0LE 0NCE THE PLT FUNDS ARE RECEIVED? WH0 WILL GETTHE M0NEY? OHA was established in 1978 to serve as the manager of the PLT revenues designated forthe betterment of the conditions of Native Hawaiians. The state constitution sets apart the PLT obligations to Native Hawaiians and charges the OHA Board of Trustees to administer those funds for Native Hawaiians. Since 2006, OHA has responsibly managed its annual allotment of $15.1 million in PLT funds by disbursing it in the community through its various Beneficiary and Community lnvestments to other Native Hawaiian-serving organizations. WHAT D0ES THE PLT BILLASK F0R? OHA has submitted the PLT bill (HB1474 / SB21 22) to ask the State of Hawai'i to fulfill its constitutional obligation to Native Hawaiians by: • Establishing $78.9 million as OHA's annual share of the ineome and proceeds of the PLT for Native Hawaiians, beginning in fiscal year 2022-2023; • Transferring to OHAthe sum of $638 million for ineome and proceeds due from the use of the PLT lands between July 1, 2012, and June 30, 2022, that were misallocated, underreported or underpaid to OHA and; • Requiring the continued annual accounting of all receipts from lands described in section 5(f) of the Admission Act, per the requirements of 2006's Act 178.

ANNUALALL0CATI0N DUE HAWAIIANS ARE T0 0HA BY STATE LAW CURRENTLY RECEIVING 20% = $78.9 MILLI0N 3.8% = $15.1 MILLI0N

H0W WILL 0HA USE THE M0NEY? OHA deploys funding to its beneficiaries in a number of ways, all of whieh align to its new 15-year Mana i Mauli Ola Strategic Plan. The additional PLT money received will be allocated bythe Board ofTrustees to fund programs related to OHA's four strategic directions (Education, Health, Housing and Eeonomie Stability). The money is allocated via Beneficiary and Community lnvestments (the "umbrella" term for all OHA's funding programs) and includes grants and sponsorships to organizations; contracts to provide beneficiary services; and loans and financial assistance to individuals. IS THERE A PRECEDENT F0R A BACK PAYMENT? The 1959 Admission Act directs the state to utilize PLT revenues for the "betterment of the conditions of Native Hawaiians" along with four other public purposes. The allocation of a 20% share (one-fifth) of PLT revenue to OHA was codified into law in 1980. The state established the "interim" allocation of $15.1 million in 2006, and then in 2012 transferred 30-acres of land at Kaka'ako Makai to OHA in lieu of cash as a back payment for unpaid PLT revenues from 19802012. In doing so, the state acknowledged that it owes Native Hawaiians PLT revenues. The Federal Government's 1993 "Apology Resolution" also sets a precedent. IS 0HA 0PEN T0 FUTURE LAND C0NVEYANCES (LIKE IN 2012) T0 ADDRESS THE ISSUE 0F BACK PAYMENT? Yes H0W DID 0HA ARRIVE AT ITS $78.9 MILLI0N PER YEAR NUMBER AS DETAILED IN THE 2022 BILL? In a 2018 financial review, PLT revenues were determined to be approximately $394.3 million peryear, whieh means OHA's 20% share of those revenues should be $78.9 million peryear. H0W DID 0HA CALCULATE THE $638 MILLI0N NUMBER F0R BACK PAYMENTS FR0M 2012 T0 2022? $78.9 million per year less the $15.1 million per year that OHA has received equals $63.8 million peryear. So OHA has been underpaid by $63.8 million per year for 10 years (2012-2022). $63.8 million times 10 years equals $638 million.

"To our Kanaka Maoli: tbese are yourfunds. We want to lift our neonle out ofnovertv , out of " " v lv U I L L LL/ L LJ L l/ U I p L 17 lv L/ U L L / J |/ L/ L/ L/ / j L/ U L L /J

poor circumstances, so that they heeome business owners, homeowners,job holders, students with high leuel degrees. We encourage all Native Hawaiians to eome testify and tell the State of Hawai'i that its failure to uphold its constitutional and statutory obligation to all Native Hawaiians is not pono. It's notjust about money, it's about what is pono." - NA'UNANIKINA'U KAMALI'I, OHA CHIEF ADVOCATE