Clarifies the public land trust and public land trust revenues. Makes appropriations to the office of Hawaiian affairs. Sets standards for the making of grants, subsidies, and purchases of services.

A BILL FOR AN ACT

SECTION 1. The legislature finds that Act 304, Session Laws of Hawaii 1990, amended chapter 10, Hawaii Revised Statutes, to clarify that it is all the revenues from the public land trust, rather than all the funds from the trust, for which the office of Hawaiian affairs is authorized to expend twenty per cent for the betterment of the conditions of native Hawaiians. In Office of Hawaiian Affairs v. State of Hawaii, 96 Haw. 388, 31 P.3d 901 (2001), the state supreme court ruled that Act 304 as applied to revenue derived from the Honolulu International Airport conflicted with federal legislation, and by its own terms the act was effectively repealed. The supreme court further ruled that in the absence of Act 304, there were no judicially discoverable or manageable standards adequate to permit a judicial determination of how much the office of Hawaiian affairs was entitled to receive from the State to fulfill the State's constitutional trust obligation to native Hawaiians.

As was appropriate at the time of the passage of Act 304, Session Laws of Hawaii 1990, the legislature finds it incumbent to enact legislation that gives effect to and recognizes the right of native Hawaiians to benefit from the ceded lands trust. The legislature further finds it necessary to provide legislative clarification to resolve facial statutory inconsistencies, to establish the continued funding of the office of Hawaiian affairs under chapter 10, Hawaii Revised Statutes, and fulfill the mandate of article XII, sections 4, 5, and 6 of the Hawaii state constitution.

The purposes of this Act are to:

The legislature does not intend this Act to replace or affect the claims of native Hawaiians and Hawaiians with regard to reparations from the federal government.

SECTION 2. Chapter 10, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§10- Standards for awarding grants, subsidies, and purchase of service contracts from trust funds. The office shall award grants, subsidies, and purchases of service from trust funds pursuant to this chapter. The requirements of chapters 42F and 103F or any other law shall not apply to grants, subsidies, and purchases of service.

The legislature hereby delegates to the office of Hawaiian affairs the authority to manage the income and proceeds from the public land trust for bettering conditions of native Hawaiians. The office shall be responsible for developing standards and procedures necessary and appropriate to provide accountability in the handling of the funds. The standards and requirements of chapters 42F and 103F may be used as guides until replaced by actual standards adopted by the office."

SECTION 3. Section 10-5, Hawaii Revised Statutes, is amended to read as follows:

"§10-5 Board of trustees; powers and duties. The board shall have the power in accordance with law to:

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $17,000,000, or so much thereof as may be necessary for fiscal year 2002-2003, to provide funds pursuant to sections 10-2 and 10-13.5, Hawaii Revised Statutes.

SECTION 5. The sum appropriated shall be expended by the office of Hawaiian affairs for the betterment of the conditions of native Hawaiians.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.