Hawaii-2013-SCR184-Introduced

WHEREAS, the Legislature finds that the State is currently dealing with a financial crisis; and

WHEREAS, as a result of the recent economic downturn, state and county governments have had to reduce or eliminate various public services; and

WHEREAS, all eighteen of the state principal departments, including the Department of Education and University of Hawaii, are underfunded and understaffed; and

WHEREAS, in the wake of this shortfall in revenue, the State is also faced with growing debt and unfunded pension and welfare obligations in the billions of dollars; and

WHEREAS, adding to this already challenging situation is the recent decision of the Hawaii Supreme Court, which held in Nelson v. Hawaiian Homes Commission, 127 Haw. 185 (2012), that the State must provide "sufficient funds" to cover the administrative and operational expenses of the Department of Hawaiian Home Lands, which obligation, currently valued at $15,000,000 per year, not only runs in perpetuity but also requires a back payment; and

WHEREAS, the Department of Hawaiian Home Lands is also facing a fiscal crisis, and the $600,000,000 settlement awarded to the Department of Hawaiian Home Lands in 1995 was largely spent by prior administrations and will likely be completely diminished in about two years; and

WHEREAS, other states allow the format of Native Corporations with authority to serve as vehicles for advancement of the Native Peoples in their states; and

WHEREAS, in 1965 the State of Hawaii established the State Foundation on Culture and the Arts, which has enhanced the State's awareness, appreciation, and knowledge of numerous projects or programs pertaining to the arts, music, dance, cultural customs, and traditions for almost fifty years; and

WHEREAS, the success of the State Foundation on Culture and the Arts makes it a potential model for an entity to enhance the financial resources of Native Hawaiians; and

WHEREAS, the Office of Hawaiian Affairs holds assets, both financial and real estate, in trust for its beneficiaries; and

WHEREAS, Act 195, Session Laws of Hawaii 2011, recognized the Native Hawaiian people as the only indigenous, aboriginal, maoli people of Hawaii and established a roll that would list Native Hawaiians eligible to participate in the organization of a Native Hawaiian governing entity; and

WHEREAS, this entity, once formed, may be the most appropriate entity to receive and manage all Native Hawaiian lands; and

WHEREAS, there are unresolved issues needing study relating to the appropriate constitutional and statutory missions, and beneficiary and constituent groups, of the Department of Hawaiian Home Lands, Department of Land and Natural Resources, and Office of Hawaiian Affairs; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2013, the House of Representatives concurring, that the Department of Hawaiian Home Lands; Office of Hawaiian Affairs; Department of Land and Natural Resources; Department of Budget and Finance; Department of Business, Economic Development, and Tourism; and Department of the Attorney General are requested to convene a working group to discuss and propose legislation which:

(1) Provides a vehicle that would ensure that "sufficient funds" are provided by the State to the Department of Hawaiian Home Lands;

(2) Generates much needed revenues for the general fund and the Department of Hawaiian Home Lands;

(3) Considers the costs and benefits of authorizing creation of native Hawaiian corporate entities to serve as vehicles to enhance the financial resources of native Hawaiians and the scope of powers and functions for such corporate entities, including whether the creation of a foundation or an endowment is an appropriate vehicle;

(4) Creates a vehicle to obtain revenue that will not require the State or the Department of Hawaiian Home Lands to bear up-front costs, including the appropriate use of public-private joint ventures; and

(5) Utilizes lands and assets that are not Hawaiian home land trust lands to generate revenue; and

BE IT FURTHER RESOLVED that the working group include the following members; provided that the working group may call upon advice or guidance from other persons in the community that have experience in, or a demonstrated expertise in, the establishment of corporate entities:

(1) Chairperson of the Hawaiian Homes Commission, or the Chairperson's designee;

(2) Chairperson of the Board of Trustees of the Office of Hawaiian Affairs, or the Chairperson's designee;

(3) Chairperson of the Board of Land and Natural Resources, or the Chairperson's designee;

(4) Director of Finance, or the Director's designee;

(5) Director of Business, Economic Development, and Tourism, or the Director's designee; and

(6) Attorney General, or the Attorney General's designee; and

BE IT FURTHER RESOLVED that the working group is requested to jointly submit a report detailing their findings and proposed legislation to the Legislature no later than twenty days prior to the convening of the Regular Session of 2014 and be dissolved on June 30, 2014; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chairperson of the Hawaiian Homes Commission; Chairperson of the Board of Trustees of the Office of Hawaiian Affairs; Chairperson of the Board of Land and Natural Resources; Director of Finance; Director of Business, Economic Development, and Tourism; and the Attorney General.

	OFFERED BY:	_____________________________

Report Title:

Enhancement of Native Hawaiian Financial Resources Working Group

THE SENATE	S.C.R. NO.	184
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII