STAND. COM. REP. NO. 2046

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2323
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Water, Land, and Hawaiian Affairs and
Transportation and Intergovernmental Affairs, to which was
referred S.B. No. 2323 entitled: 

     "A BILL FOR AN ACT RELATING TO CEDED LAND REVENUES,"

beg leave to report as follows:

     The purpose of this bill is to require the State to pay to
the Office of Hawaiian Affairs an amount equivalent to the pro
rata share of ceded land revenues obtained from the Honolulu
International Airport.

     Testimony in support of the measure was received from the
Office of Hawaiian Affairs.

     Your Committees find that the Office of Hawaiian Affairs has
been waiting for a substantial period of time to receive the pro
rata share owed to them from revenues generated at the Honolulu
International Airport.  These moneys represent the largest single
amount owed to the Office of Hawaiian Affairs as compared to any
other single ceded land revenue source.  Although the Office of
Hawaiian Affairs does receive a statutorily established interim
amount in lieu of the actual revenues, the deprivation of such
revenues and the uncertainty as to whether the amount will be
reduced, severely impacts on the Office of Hawaiian Affairs'
ability to effectively manage its trust portfolio.

     Therefore, your Committees believe that the Office of
Hawaiian Affairs is entitled to the full pro rata amount and that

 
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                                   STAND. COM. REP. NO. 2046
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the administration should make every effort to fulfill its
financial obligation to the Office of Hawaiian Affairs so that
the Office of Hawaiian Affairs may, in turn, fulfill its
obligation to its beneficiaries.

     As affirmed by the records of votes of the members of your
Committees on Water, Land, and Hawaiian Affairs and
Transportation and Intergovernmental Affairs that are attached to
this report, your Committees are in accord with the intent and
purpose of S.B. No. 2323 and recommend that it pass Second
Reading and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Water, Land, and
                                   Hawaiian Affairs and
                                   Transportation and
                                   Intergovernmental Affairs,



____________________________       ______________________________
CAL KAWAMOTO, Chair                COLLEEN HANABUSA, Chair

 
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