Ka Wai Ola - Office of Hawaiian Affairs, Volume 20, Number 3, 1 March 2003 — State agrees to pay OHA $12.4 million in ceded lands payments [ARTICLE+ILLUSTRATION]

State agrees to pay OHA $12.4 million in ceded lands payments

By Naomi Sodetani The State of Hawai'i and Office of Hawaiian Affairs have reached agreement on undisputed moneys due to OHA. On Feb. 12, the state tendered the first installment on the full $42.3 million it acknowledges is owed OHA since July 1, 2001. At a press conference, OHA trustees celebrated receipt of a "good faith" down payment on an overdue bill in the form of six checks totaling $2.8 million. The remaining $9.5 million will be authorized by legislation, said OHA Chairperson Haunani Apoliona. She stressed the need for diligent follow-up to cement the agreement between OHA and the state. "This is only the first step of two steps," she said. "To make it whole, it requires the continued commitment and action by all our partners." The agreement to promptly resolve the back-payment issue and restore ongoing payments successfully concludes negotiations that began when Gov. Linda Lingle took office. "We are very pleased all parties could eome to an agreement whieh is in the best interest of Native Hawaiians and all the people of Hawai'i," Gov. Linda Lingle said in a statement issued at the press conference. The governor requested the legislature's "immediate eonsideration" and passage of "emergency appropriations totaling $9,552,974 from the general fund and from other special funds" in whieh moneys derived ftom the public trust lands are deposited. By Executive Order, Lingle further directed the Department of Land and Natural Resourees and other state departments to immediately resume making payment on "20 percent of funds derived See AGREEMENT on page 3

'Shoulder to shoulder' — OHA trustees announee agreement wlth the state on und!sputed back payments due. On tab)e are slx state-lssued checks totating $2.8 mlllton. L-R: Trustee Oz Stender, Trustee Unda Deta Cruz. OHA Attorney Robert Kieln, OHA Chalrperson Haunanl Apollona, Trustee Boyd Mossman (behlnd), Trustee Rowena Akana, OHA Admlnlstrator Clyde Nōmu'o.

AGREEMENT from page 1 from puhlie land trust land to OHA... with the payment for the current quarter to be made in accordance with previous practice, shortly after the end of eaeh quarter." The state Constitution says OHA is entitled to a share of the revenue generated from 1.8 million acres of former crown lands held in trust by the State. OHA is seeking a new law this session to define how those revenue payments should be made. On Sept. 12, 2001, the Hawai'i Supreme Court struck down a law that defined those payments, citing a legal conflict concerning the distribution of airport revenues. Though the justices did not dispute payments made from non-airport sources of revenue, former Gov. Ben Cayetano summarily halted all ceded lands revenue payments to OHA. OHA made a demand for payment of the undisputed funds to Cayetano on Nov. 1 — whieh he refused, deferring the issue to legislators, who also did not act. The $2,800,417 million in checks were paid directly from current fiscal year funds. OHA and the state agree that the undisputed sum due for fiscal year 2002 is $8,305,112. An additional $1,247,862 for the two quarters ending Dec. 31, 2002 bring the appropriation bill total to $9,552,974. Legislation is required as this amount was collected during the past fiscal year.

Opponents have threatened to sue if payments resumed, claiming that they constitute racial discrimination. But OHA and state counsel determined that the method of transfer is legal, appropriate and in the best interest of OHA and the State. OHA Board Attorney Robert Klein, a retired Hawai'i Supreme Court justice, said, "We're not worried about lawsuits." "We will continue to work everyday toward resolving the state's obligations to Native Hawaiians, as we See AGREEMENT on page 18

OHA critic WUIiam Burgess. a ptalntlff In lawsults seeklng to halt Native Hawallan entttlements as unconstttutlonal, testhfles at Senate hearing to btock fundtng of OHA and DHHL

AGREEMENT from page 3

uphold our responsibility as leaders to address these type of issues expeditiously," Lingle said. "As we move forward we will continue to restore the trust and integrity all people of our state have in government." Apoliona thanked Gov. Linda Lingle for her "steadfast commitment" and the legislative leaders for their "spirit of cooperation and leadership" to fulfill the state's statutory and constitutional mandates relating to Hawaiians. The chairperson especially praised the "courageous, disciplined, focused" OHA beneficiaries for "keeping the faith and hope alive by marching in our rallies, standing shoulder to shoulder with us in the sun and in the rain, through these times of political and spiritual challenge. "To you all we are humbly grateful, and our ancestors embrace you," Apoliona said. ■