Give OHA its fair share of ceded land revenues

`Ano`ai kakou…  In 2006, Senate Bill 2948 established the amount of interim revenue to be transferred to the OHA from the public land trust, each fiscal year beginning with fiscal year 2005-2006, at $15,100,000.

While I was not opposed to the $15,100,000 that was negotiated, I did have serious concerns about how the amounts were calculated.  I also questioned whether OHA’s negotiation team considered all of the facts and figures that were available to come up with a fair and justifiable amount.  The last discussion that I am aware of was in December 2005, when our attorney told us that the state owed a past due amount between $17-$30 million.

Despite my inquires, I have never gotten a satisfactory answer on how the final $15.1 million figure was calculated nor why this amount is lower than the $17-$30 million range that was discussed.  I did receive bits-and-pieces of information from the negotiation team from time-to-time.  However, even very important information, such as the calculations and figures compiled by OHA’s accountant in the past, had changed over the years and I questioned whether they were even considered.  There also did not appear to be a clear formula by which the negotiators calculated the amounts owed or even the future payments to be paid to OHA.

At no time was I ever privy to the formula which the negotiation team used to calculate the settlement with the Governor’s office, nor was I given any real numbers that showed exactly how the team had arrived at the numbers that they were suggesting.  Much of the specific details of the negotiations were kept a closely guarded secret.

On February 1, 2006, the State House Committee on Hawaiian Affairs had a hearing on Senate Bill 2948.  During the questions and answers period, committee members asked the State Attorney General about where the revenue would come from.  The AG replied that they were looking at receipts from the airport shops, the University of Hawaii Bookstore, U.H. parking, etc.  State Representative Ezra Kanoho asked if those sources were included in the $15.1 million and the answer was “yes.”  This was confusing since those revenues have been in dispute with the state since the Heely case.  This begged the question – Was the state now settling a part of the Heely case with this settlement?

By the time I found out that the negotiating team and the Governor’s office had come up with a deal, it was too late for me to express my other concerns.  For example:

  1. By what method was the past due amounts determined to be $17-$30 Million?
  2. Was inflation factored into the equation?
  3. Did they consider the fact that the state has been re-negotiating leases every year and, consequently, the revenue stream is now much higher? The $15.1 million figure goes way back to 1995.
  4. What about the interest that is owed to OHA on the unpaid amounts?

I have always felt that our negotiating team was too secretive about how they came up with the final $15.1 million figure.  I also haven’t heard a convincing argument that justifies the amount.  It is critical that we revisit this issue and finally convince the state to give OHA and its beneficiaries a fair share of the ceded land revenue.  As the past OHA Chair I did ask Governor Ige to reconvene the taskforce of 2016 to resolve the unpaid debt to OHA but as of this date I’ve had no response.  Aloha Ke Akua.

Cayetano offered better ceded land deal

By: Trustee Rowena Akana
Monday, February 4, 2008

Source: Honolulu Star Bulletin

I am writing to confirm former Gov. Ben Cayetano’s statement in the Star-Bulletin’s Jan. 22 article that his ceded lands settlement offer to the Office of Hawaiian Affairs, while he was in office, was a better deal for native Hawaiians than the proposal now before the Legislature. I was the chairwoman of the Office of Hawaiian Affairs in 1999 when he offered OHA $251 million plus 20 percent of the ceded lands, which is estimated at 365,000 acres.

Following OHA’s victory in the Heely court case, the state of Hawaii appealed to the Hawaii Supreme Court, which then ordered the state and OHA to negotiate a settlement.

After only a few months, Haunani Apoliona, Colette Machado, Frenchy DeSoto, Louis Hao and Mililani Trask voted to halt the negotiations because they didn’t understand that the $251 million was for the past due revenues to OHA and the 20 percent of the ceded lands was to settle future claims.

While it would have been a final settlement, imagine how great that would have been for our people if we had received the 20 percent of all of the ceded lands back then. Not only that, Gov. Cayetano was willing to consider many of the lands that OHA wanted. Our intention was to take the offer out into the community for input, but we never had the chance because of the shortsightedness of those trustees. As a result of OHA walking away from the table, the Supreme Court ruled the Heely act void, and told OHA to go back to the Legislature for a remedy.

Land and Sovereignty

By: Trustee Rowena Akana
February 3, 1999

No two words have so captured the attention of this archipelago’s residents as “land” and “sovereignty”. Despite developments since the 100-year anniversary of the 1893 illegal overthrow of the Hawaiian Monarchy, as well as the United States’ apology and admission of the illegality of the overthrow, many people do not grasp what either word means or will mean for their future.

The general goal of sovereignty advocates is the transfer of control of Hawaiian Home Lands and ceded lands directly to a native Hawaiian government. Currently, the state and federal government hold in trust about 1.2 million acres of land for the benefit of Hawaiians. Yet, the first people to these lands have seen very few benefits.

Hawaiian Home Lands are scattered tracts comprising about 197,075 acres, which Congress set aside in 1920 for native Hawaiian homesteaders. Ceded lands are the remains of an estimated 1.8 million acres of public, private and crown land illegally annexed by resolution from a provisional government to the United States in 1898.

Hawaiian land, once farmed communally, is now some of the most expensive real estate on Earth. Housing prices, driven up by mainland retirees and foreign speculators, are out of reach for Hawaiians living, working and raising families in the islands.

Hawaiian waters, once kept in ecological balance with humans through a complex kapu system, are now oversold to the highest bidder, or treated as a toilet for raw sewage.

Hawaiian culture, once a living history of genealogy, geography, and spirituality, was nearly obliterated by Calvinist missionaries and is usually obscured with tourist-pleasing luaus.

Today, 70-80,000 people (depending on the source) – of Hawaii’s more than one million residents are full-blooded Hawaiians. One fifth, or about 225,000 people claim some Hawaiian blood. Yet Hawaiians remain the poorest, sickest, least educated, worst housed, and most frequently imprisoned segment of Hawaii’s population.

Since Kamehameha the Great, foreigners have enjoyed some measure of control over Hawaiian land. The concept of land ownership was foreign to Hawaiians. How can you own what belongs to God? The king and his chief provided land grants to the people–some of them outsiders, who chose to grow large tracts of crops to be sold overseas, rather than to be eaten at home.

In 1825, when 12-year-old Kamehameha III ascended to the throne, the Council of Chiefs adopted the western practice of inheritance after the death of a king. However, foreigners, protective of their agricultural interest, sought more secure forms of land tenure. They and their governments applied considerable pressure on the young king.

In 1840, the year he drew up Hawaii’s first constitution, Kamehameha III granted the right to property by declaring that all land belonged to the chiefs and the people, with the king as trustee. In 1848, true ownership of land came to Hawaii, when the king accepted a land apportionment plan, called the Great Mahele, or division.

The Mahele completed the transition from a feudal redistribution land system to a fee simple land ownership system, by dividing the land among the king, government, chiefs and the people. The land was split into three parts: about 1 million acres of crown lands to which the king held title; 1.5 million acres of government lands for public use; and, the remaining 1.5 million of Konohiki lands set aside for individual ownership by the chiefs and the people.

The Mahele was an unmitigated disaster for the maka’ainana, the people of the land, or commoners. While the king intended to make available one-third of Hawaii’s lands to maka’ainana, they received much less than one percent of the total land. The maka’ainana’s land holdings and rights were further diluted in 1850, with the passage of additional legislation which authorized ownership and conveyance of the land, regardless of citizenship.

The stage was set for a massive land grab by Westerners. In the next half century, with a population no larger than 2,000, Westerners took control of most of Hawaii’s land, and manipulated the economy for their own profit.

Many Native Hawaiians pleaded with their last elected monarch, Queen Lili’uokalani, to protect the sovereignty of Hawaii. At the urging of her people, the queen attempted to regain some of the monarchy’s power, which had been lost during the reign of her predecessor and brother, King Kalakaua through the Bayonet Constitution.

Her efforts to change Hawaii’s Constitution and cabinet unnerved a group of the wealthiest American merchants and sugar planters. These men wanted to be part of the United States to avoid high import tariffs. So, backed by a contingent of 162 U.S. Marines, the businessmen imprisoned the queen, and took over the islands, including the acreage that was supposed to be available to the maka’ainana.

Despite Lili’uokalani’s steadfast belief that the United States government would honor its treaties with the Kingdom and reject the provisional government, Hawaii went from a sovereign nation to an American colony in five years. In 1898, under President William McKinley, Hawaii was annexed to the United States constellation, along with Puerto Rico, Guam and the Philippines.

President Grover Cleveland, who had opposed the coup, but failed to reverse it, wrote after leaving office: Hawaii is ours. But as look back upon the first steps in this miserable business, and as I contemplate the means to complete this outrage, I am ashamed of the whole affair.”

Meanwhile, the provisional government sold chunks of crown and Konohiki lands to fellow merchants and planters. When the islands were annexed illegally to the United States, Hawaii’s government acknowledged that this acreage (now 1.8 million acres) belonged to Native Hawaiians, and ceded it with the stipulation that it be held in trust for Native Hawaiians. The federal government summarily lopped off about 20 percent of the land for its own use, mostly for military bases and parks.

By 1920, the plight of the true inhabitants, Native Hawaiians, had become desperate. The population had dropped as much as 96 percent. Some scholars estimate that a one-time population of 1 million Hawaiians in pre-contact Hawaii had plummeted to 40,000.

However, a bill was being prepared that would allow Native Hawaiians to lease a small sliver of their former land. The Hawaiian Homes Commission Act began as a well meaning effort by Prince Jonah Kuhio, the Hawaiian territorial delegate to Congress, who saw urban slums and disease rapidly killing off Hawaiians, and hoped that returning Hawaiians to their aina, their agricultural land, could save them. In 1920, he said: “The Hawaiian race is passing, and if conditions continue to exist as they do today, this splendid race of people, my race, will pass from the face of this earth.”

No sooner did Prince Kuhio float his plan in Congress than it was co-opted by pineapple and sugar planters, who saw it as a way to secure their own uncertain futures. Their leases on 26,000 fertile acres were about to expire, and a general homestead law threatened to transfer their lucrative holdings to other hands.

So the planters struck a deal with territorial politicians: Get rid of general homesteading, allow us to keep our lands, and in exchange, you may allot 200,000 acres of “fourth class” lands to native Hawaiians for homestead. This land was arid, inaccessible, soilpoor, without infrastructure, and otherwise unfit for cultivation. Before long, Hawaiians abandoned agrarianism, and the bulk of homestead awards became simple house lots.
The sugar planters ensured that the Hawaiian Home Lands’ first executive was an ally. Its executive secretary was George Cooke, of Castle & Cooke, one of the Big Five plantation powers. The planters even pushed the 50 percent Hawaiian blood requirement, believing that interracial marriages would dilute the native population to extinction.

After statehood in 1959, responsibility for managing the homestead program was transferred from the federal government to the state Department of Hawaiian Home Lands (DHHL). Because the state failed to appropriate sufficient funding, until recently, the DHHL’s main source of revenue to manage and improve the land was income from general use leases granted non-Hawaiians on land “not immediately needed” for homestead. As a result, DHHL leased more land to non-Hawaiians than to Hawaiians.

For decades, the administration of the Hawaiian Home Lands trust went unquestioned. Subsequent investigations revealed mismanagement of the trust by both the federal and state governments. DHHL estimates that territorial and state governors issued between forty and sixty executive orders, which set aside Hawaiian Home Lands for military use. In 1978, a federal district court ruled that all governors’ executive orders were illegal.

In 1984, Governor Ariyoshi rescinded nearly thirty of these illegal acts, covering 30,000 acres. The Hawaii Attorney General also decreed that the U.S. Navy’s occupation of 1,400 acres of prime homelands near Honolulu was a “fundamental breach of trust”.

Rather than evicting the offending land users, which included state and federal agencies, the DHHL opted for monetary settlements totaling less than $10 million.

As of June 30,1997, only 6,428 homestead leases were awarded statewide, representing a mere 20.5 percent of the total Hawaiian Home Lands property. Meanwhile there are an estimated 29,162 qualified applicants on the Hawaiian Homes waiting list, many of whom have been waiting for forty years or more. Many have died waiting.

In 1959, when the Admissions Act turned responsibility for the remaining 1.5 million acres of ceded lands over to the new State of Hawaii, the federal government “retained” several hundred thousand acres for its national parks and military installations. Today, more than 100 facilities crowd the eight Hawaiian Islands, a land area approximately the size of Rhode Island and Connecticut combined. All the military bases occupy some ceded lands, and at least six occupy Hawaiian Home Lands, without consent or compensation.

Responsibility for these ceded lands rests with the Department of Land and Natural Resources (DLNR). For the state’s first twenty years, DLNR managed ceded lands without scrutiny. Among other abuses, it allowed use of ceded lands by other state departments without compensation. It also executed a slew of summary land swaps.

State and federal laws already mandate that Hawaiians receive priority for water, to support development, traditional agriculture, and gathering rights over subdivisions, hotels and golf courses — promises seemingly forgotten. The state’s Commission on Water Resources has ignored the “Hawaiian Rights” clause of the water code, the clause that guarantees adequate reserves of water for current and foreseeable development of Hawaiian Home Lands.

At the 1978 Constitutional Convention, the state admitted that it was derelict in its duty to provide for the Hawaiian community. The Office of Hawaiian Affairs (OHA) was created to receive 20 percent of all revenue generated by ceded lands for use for the benefit of Hawaiians.

Between 1980 and 1990, instead of 20 percent, OHA only received about $12.5 million in such proceeds. In 1993, OHA received $129 million from the state in settlement of those claims, including interest for back payment of monies owed by the state from 1980 – 1990, during the Waihee Administration.

In 1994, OHA initiated litigation to require the state to pay OHA past due amounts owed to Hawaiians that were not included in the $129 million settlement. In October 1996, Judge Heely granted OHA’s motion for partial summary judgment. The State filed an appeal. In December 1998, the Hawaii Supreme Court directed the parties to try to resolve the matter expeditiously. Negotiations continue.

As indigenous and first people to these islands, Hawaiians have essentially been under siege since foreign contact. In November 1993, President Clinton signed a Joint Resolution, which recognized the illegal procedure by which Hawaii was annexed to the United States, and apologized to Native Hawaiians on Behalf of the United States for the Overthrow of the Kingdom of Hawaii. This legal recognition has offered Hawaiians a unique opportunity to lead a renewed battle for the resurrection of the powerful principle of sovereignty. Sovereignty is not a foreign concept to Hawaiians, to Native Americans, or to states in general.

To the great nineteenth century orator, Stephen Douglas, states incorporated legally into the Union were co-equal and sovereign unto themselves. In his celebrated debates with Lincoln (echoing the Declaration of Independence, which states that “these United States are, and of right ought to be Free and Independent States”), Douglas said:

“THIS GOVERNMENT WAS MADE UPON THE GREAT BASIS OF THE SOVEREIGNTY OF THE STATES, THE RIGHT OF EACH STATE TO REGULATE ITS OWN DOMESTIC INSTITUTIONS TO SUIT ITSELF, AND THAT RIGHT WAS CONFERRED WITH THE UNDERSTANDING AND EXPECTATION THAT INASMUCH AS EACH LOCALITY HAD SEPARATE INTERESTS, EACH LOCALITY MUST HAVE DIFFERENT AND DISTINCT LOCAL DOMESTIC INSTITUTIONS, CORRESPONDING TO ITS WANTS AND INTERESTS.”

Native governments have formed under the federal government through the Department of the Interior. There are hundreds of recognized nations within the territorial United States, in which the United States is but one. The others consist of American Indians. If it is OK for American Indians to form sovereign nations, why not Hawaiians? Failure to do so would, in fact, be discrimination against Hawaiians.

As indigenous people, Hawaiians are seeking recognition from the federal government of their right to sovereignty and self determination. Hawaiians have no desire to be dependent on the state or federal government. If Hawaiians had control of their lands, they could take care of their own people. They would not be a drain on the economy. There would be no homeless Hawaiians.

Fundamental to any sovereignty concept is control over land. Hawaiians have never prospered on land held on their behalf, but outside their reach. Lands at issue consist of the 1.2 million acres currently under the control of the state and federal government, as well as lands set aside as Hawaiian Home Lands. Hawaiians are not talking about privately owned land.

Hawaiians’ Court Victories Could be Short-Lived

By: Trustee Rowena Akana
March 14, 1997

Source: Star Bulletin Viewpoint

Bills before Legislature attempt to reverse gains by Hawaiians

Two recent rulings, one from the Hawaii Supreme Court and the other from a Circuit Court, almost convinced Hawaiians that justice is alive and well in our islands.

I am referring to Public Access Shore Hawaii v. County of Hawaii Planning Commission, or the PASH decision, in which Judge Robert Klein held that our “legitimate traditional and customary practices must be protected,” and to OHA v. State of Hawaii in which Judge Dan Heely defined an augmented basis for OHA’s ceded lands revenues. And I say almost convinced us because of two bills recently referred out of committee this legislative session.

The provisions of Senate Bill 8, which would have gutted PASH, are, for this session, history thanks to a massive show of force by the very people the bill’s authors are claiming to benefit. The companion bill in the House had already died in its sleep, Rep. Ed Case, chairman of the Hawaiian Affairs Committee, having decided the better part of valor would be to defer it indefinitely. Then Case, a descendant of missionaries, determined to live up to the injustices perpetrated by his ancestors, got down to the serious business of voiding the Circuit Court decision in OHA v. State of Hawaii, House Bill 2207.

This monstrous piece of legislation, which revokes language in the Constitution, the Admissions Act, and Act 304, begins with a discussion of how wrongheaded Judge Heely was in misreading the Legislature’s intent when he ruled in OHA’s favor. Unlike the bill that would have nullified PASH, this one got no public hearing at all.

Like PASH, however, it is couched in terms of doing a big favor for everyone, especially OHA.

“It is in the public interest,” the measure reads (not to menton Case’s interest given the clientele his law firm represents), “that existing ambiguities be clarified, judicial misinterpretations of legislative intent be corrected, immediate threats to the state’s overall financial condition be mitigated, the ability of the state to carry out its sovereign functions be preserved, and a mechanism for the resolution of all outstanding issues between the state and the Office of Hawaiian Affairs outside of the litigation process and which involves representatives of both be provided.”

Case would pull all that off through a ceded lands inventory compiled in the state’s favor by the Department of Land and Natural Resources, a basis that excludes many lucrative sources of income, fixed income to OHA far below the currently mandated 20 percent of ceded land revenues, among other mechanisms designed ultimately to reduce Hawaiian entitlements.

Case seriously needs a lesson in contemporary U.S history. As a feature of statehood, the lands currently referred to as ceded were conveyed back to the state by the federal government in trust for the Hawaiian people. For some 20 years, the state barely acknowledged its fiduciary duty to us. This pattern of dereliction continued even when the state Constitution was redrafted and state statutes were enacted to provide for partial compliance with this duty.

I emphasize the word partial because the current system provides for the Hawaiian people to receive only a 20 percent share of one type of revenue these lands yields. OHA had to take the state to court to obtain a modicum of compliance with a duty ignored since 1959. Now it not only balks at obeying a subsequent court order, but wants to overturn it after the fact — not through any process of appeals but by providing that House Bill 2207 be applied to the judge’s decision retroactively.

The law does not look favorably on retroactivity and Case, in spite of his concern that future meetings between the state and OHA take place somewhere other than in court, fully expects OHA to challenge this bill. The bill’s unbelievably amateurish Section 10 seems to presume we will be successful in our attack since it starts off with the clause, “Even if the retroactive effect is held invalid…” The bill then goes on to provide that its statement of the intent of Act 304 is correct no matter what.

In other words, it remains retroactive even if a court says it’s not. While I happen to agree with Case that OHA will prevail in any challenge (including to Section 10), I believe that its most vulnerable feature is not its retroactivity but its fundamental injustice.

But don’t expect House Bill 2207 to die quietly. House Speaker Joe Souki is behind it and so is Calvin Say, Chairman of the House Finance Committee, whose committee members, for the most part, couldn’t be bothered with the hearing on this bill. This is a bill that saw the light of day for one reason: The state cannot pay OHA because it has been squandering the money meant for the Hawaiian people.

If ours were a private trust, instead of a public one, such irresponsibility would not be tolerated. Imagine a well intentioned uncle setting up a trust for his nieces and nephews with their stepfather authorized to administer it. Not a court in the country would allow the stepfather to reduce payments to his beneficiaries while he used their trust income to pay his own expenses as well as the debts he ran up living beyond his means.

Our stepfather/state is just as outrageous, if not worse “I can’t pay you,” the state is trying to tell us, “because I spent all my money and yours, too.” House Bill 2207 must be killed.

Rowena Akana is an at-large trustee of the Office of Hawaiian Affairs. The opinions in View Point columns are the authors’ and are not necessarily shared by the Star Bulletin.

Hawaiians Are Not the Enemy of the General Public

By Trustee Rowena Akana
February 8, 1997

A chaotic assault on Native Hawaiian entitlements got underway during the first week of the 1997 legislature. First, we heard the House Committee on Hawaiian Affairs take a swat at OHA’s submission for general funds, our only source of assistance for Hawaiians who do not meet the legislatively imposed fifty-percent blood quantum. Then we saw the House judiciary committee Chair Terrence Tom bully out of committee a Constitutional Convention, structured to give our legislators summer jobs gutting Native Hawaiian entitlements in 1998. On top of that, there is a measure afoot to repeal the statute that allows us access to justice and lets us sue the State when it fails to comply with its trust obligation to Hawaiians.

Clearly, many of our lawmakers have bought into the Governor’s public relations blitz targeting Hawaiians as Public Enemy Number One. While the same old cronyism and mismanagement–woes he vowed to fix–continue, the Governor is trying to shift the blame for the State’s cloudy fiscal future to the Office of Hawaiian Affairs. Some very smart people are following his camera when they should be focusing elsewhere.

So that we are all on the same page, I’ll set out the numbers again. The State gets 80 percent of ceded land revenues, or the lion’s share of land leases and rents. Until OHA took the State to court and won a determination to the contrary, the State was assured of ALL of the “sovereign” income from the big-ticket tenants such as the airport, Duty Free Shops, the University of Hawaii, etc. In addition, it collects revenues via the highest income tax in the United States, the most inequitable and pervasive general excise tax and other sources of funding extracted from its citizens, including Hawaiians. The Office of Hawaiian Affairs gets 20 percent of the income from ceded land leases and rents. Period. While Circuit Court Judge Dan Heely determined that OHA should be getting a percentage of “sovereign” income too, OHA has never received any. In an attempt to make sure we never do, the State is appealing Judge Heely’s decision. Currently Cayetano & Co. are floating the rumor that a hired gun from the Mainland will replace their consistently losing team from the Attorney General’s Office. In case this suit is, once again, decided on the merits, there is a bill in the hopper, drafted last year and brought back from the dead by Representatives Calvin Say and Nathan Suzuki, the Governor’s bag men in the House, excluding “sovereign” income from the ceded lands formula.

All this leads to the conclusion that the State is following the federal example in reneging on its treaties with Native people. Sadly, it has successfully stirred up public resentment so that the betrayal appears justified. A recent Honolulu Star Bulletin article called for OHA’s revenue percentage to be reduced, and I would not be surprised to see a bill proposing such a reduction this session. The State has not told the public that the 20 percent figure represents a compromise by OHA, the legislature, and the Governor, ratified by the voters in 1978. What would prevent the State from claiming a new, lower figure is still too much? Clearly, Hawaiians cannot have any confidence in the State even when it commits its word to law.

And there is an even bigger shibai going on, one affecting Hawaiians and non-Hawaiians alike. Whether the legislature chews up Hawaiian entitlements piecemeal during this session or swallows them whole during a Constitutional Convention, the financial bottom line will not change. Considering the entire State budget, the annual sum owed OHA based on 20 percent is very small, hovering around one percent. Paying it in full and on time should not bankrupt a fiscally responsible State. On the other hand, eliminating the payment won’t be the solution to poor management. The real bottom line here is that no one should trust the State’s representations when it comes to Hawaiian entitlements. The non-Hawaiian public should realize that Hawaiians are sharing 80 percent of our trust with them. To take more from us than we are already giving would be unconscionable.