[Senate Report 105-19]
[From the U.S. Government Publishing Office]



                                                        Calendar No. 54
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-19
_______________________________________________________________________


 
                     HAWAIIAN HOMES COMMISSION ACT

                                _______
                                

                  May 16, 1997.--Ordered to be printed

_______________________________________________________________________


  Mr. Murkowski, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                      [To accompany H.J. Res. 32]

    The Committee on Energy and Natural Resources, to which was 
referred the joint resolution (H.J. Res. 32) to consent to 
certain amendments enacted by the Legislature of the State of 
Hawaii to the Hawaiian Homes Commission Act, 1920, having 
considered the same, reports favorably thereon without 
amendment and recommends that the joint resolution do pass.

                         purpose of the measure

    The legislation provides the consent of the United States 
to two amendments to the Hawaiian Homes Commission Act of 1920 
made by the State of Hawaii (Act 339 of the Session Laws, 1993, 
and Act 37 of the Session Laws, 1994) as required by the 
Admissions Act for the State of Hawaii.

                          background and need

    The Hawaiian Homes Commission Act (HHCA) was enacted by the 
United States Congress in 1921 as a homesteading program to 
place native Hawaiians--defined as those of 50 percent or more 
Hawaiian blood--on lands in Hawaii designated for that purpose. 
Approximately 200,000 acres were defined as ``available lands'' 
under the Act. The Hawaiian Statehood Act in 1959 (Public Law 
86-3, 73 Stat. 4) conveyed title to the ``available lands'' to 
the new State, and generally placed responsibility for the 
administration of the Hawaiian Homes Commission Act in the 
State.
    Section 4 of the Statehood Act provides that the HHCA is to 
be included in the Constitution of the new State as a 
``compact'' with the United States, and that, with certain 
exceptions, the HHCA can be amended by the State ``only with 
the consent of the United States''. The exceptions are 
amendments relating to administration and to the powers and 
duties of certain State officers. Section 4 contains other 
restrictions as well: the qualifications to lessees cannot be 
changed, certain encumbrances on Hawaiian Home Lands cannot be 
increased, and the benefits to lessees cannot be diminished 
without United States consent. There is also an absolute bar to 
the impairment or reduction of certain named funds and to the 
use of income from ``available lands'' for any purpose other 
than as specified under Section 5(f) of the Statehood Act.
    The program itself has a history of controversy. In 1983, a 
State-Federal Task Force completed a review of the program to 
determine whether it was meeting its purposes. The Task Force 
documented many deficiencies including: a lack of 
accountability for the lands, improper use of lands by 
ineligible persons and the state, poor financial investments, 
and long waiting lists for leases. The Task Force also 
identified confusion regarding the rights and responsibilities 
of the Federal Government, state government and the program 
beneficiaries. The Task Force made numerous recommendations 
which have been the focus of efforts to improve program 
performance.
    In addition, court judgments (particularly Keaukaha-Panaewa 
Community Assoc. v.  Hawaiian Homes Commission, 588 F.2d 1216 
(1978)), have found that ``the state is the trustee'' under the 
program, and that ``The United States has only a somewhat 
tangential supervisory role * * *''. The courts have also 
defined the limited extent of the beneficiaries right to sue 
for breach of trust. Given the limited supervisory role of the 
United States, it is important that any proposed changes be 
carefully reviewed.
    As a prophylactic measure, since the mid-1970's, all 
amendments have been submitted to Congress for approval, even 
those limited to administrative matters. In 1990, Congress 
withheld consent from act 75 due to a concern that provisions 
permitting non-native Hawaiians to obtain leases in certain 
circumstances could lead to the effective alienation of the 
lands. Hawaii later changed the law.
    Legislation identical to H.J. Res. 32 was introduced by 
Senator Akaka and Inouye on August 2, 1996 (S.J. Res. 59).
    The two acts affected by this legislation are act 339 of 
1993 that authorized the Department of Hawaiian Home Lands to 
obtain insurance coverage under the Hawaiian Hurricane Relief 
fund for Hawaiian Home lessees and act 37 that allows homestead 
lessees to designate grandchildren who are at least 25% Native 
Hawaiian as successors. The full text of the two measures is 
set forth in the Appendix to the House Report to accompany this 
measure (H. Rept. 105-16).

                          legislative history

    H.J. Res. 32 was introduced on January 21, 1997 and 
referred to the Committee on Resources. The measure was 
reported without amendment, passed the House of Representatives 
on March 11, 1997, and was referred to the Committee on Energy 
and Natural Resources. The Committee held a hearing on S. 210, 
which contains language identical to section 10, on February 6, 
1997. At the business meeting on May 14, 1997, the Committee on 
Energy and Natural Resources ordered H.J. Res. 32 favorably 
reported without amendment.

            committee recommendation and tabulation of votes

    The Committee on Energy and Natural Resources, in open 
business session on May 14, 1997, by a unanimous vote of a 
quorum present, recommends that the Senate pass H.J. Res. 32 
without amendment.

                      section-by-section analysis

    The language of the bill is self-explanatory.

                   cost and budgetary considerations

    The following estimate of the cost of this measure has been 
provided by the Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 15, 1997.
Hon. Frank H. Murkowski,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.J. Res. 32, a joint 
resolution to consent to certain amendments enacted by the 
Legislature of the State of Hawaii to the Hawaiian Homes 
Commission Act, 1920.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Victoria V. 
Heid.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.J. Res. 32--A joint resolution to consent to certain amendments 
        enacted by the Legislature of the State of Hawaii to the 
        Hawaiian Homes Commission Act, 1920

    H.J. Res. 32 would grant the consent of the United States 
to a number of amendments to the Hawaiian Homes Commission Act, 
1920, already adopted by the state of Hawaii. These amendments 
generally concern the administration of the Hawaiian home 
lands.
    CBO estimates that enacting this resolution would have no 
effect on the federal budget. Because the resolution would not 
affect direct spending or receipts, pay-as-you-go procedures 
would not apply. H.J. Res. 32 contains no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act of 1995 and would impose no costs on state, local, 
or tribal governments.
    CBO prepared a cost estimate for H.J. Res. 32 as ordered 
reported by the House Committee on Resources on March 5, 1997. 
The two versions of the resolution are identical, as are the 
cost estimates.
    The CBO staff contact for this estimate is Victoria V. 
Heid. This estimate was approved by Paul N. Van de Water, 
Assistant Director for Budget Analysis.

                      regulatory impact evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out H.J. Res. 32. The bill is not a regulatory measure 
in the sense of imposing Government-established standards or 
significant economic responsibilities on private individuals 
and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of H.J. Res. 32, as ordered reported.

                        executive communications

    Although the Committee did not request a formal legislative 
report on H.J. Res. 32 from the administration, the 
administration did testify in support of identical language 
during hearings on S. 210, legislation dealing with various 
issues affecting the territories, freely associated states, and 
the State of Hawaii. The pertinent portions of the 
administration statement on S. 210 are set forth below.

  STATEMENT OF ALLEN P. STAYMAN, DIRECTOR, OFFICE OF INSULAR AFFAIRS, 
                       DEPARTMENT OF THE INTERIOR

    Mr. Chairman and members of the Senate Committee on Energy 
and Natural Resources, I am pleased to be here today to discuss 
the provisions of S. 210. Additionally, I have comments on 
several other island issues that you may wish to consider for 
inclusion in the bill.
    S. 210 contains eleven provisions designed to address a 
number of island issues.
          * * * * * * *
    Consent to Hawaiian Homes Commission Act Amendments. 
Section 10 would approve two laws of the state of Hawaii 
relating to the Hawaiian Homes Commission Act. Such approval is 
required before these Hawaii laws may take effect. Act 339 of 
the Session Laws of Hawaii (1993) established the Hawaiian 
Hurricane Relief fund and authorizes the Department of Hawaiian 
Home Lands to obtain homeowners' insurance coverage for 
Hawaiian Home Lands lessees. Act 37 of the Session Laws of 
Hawaii (1994) allows Hawaiian Home Lands homestead lessees to 
designate as a successor to the lease a grandchild who is at 
least twenty-five percent Native Hawaiian.
    The Administration recommends approval of these Hawaiian 
amendments and supports enactment of section 10 of S. 210.

                        changes in existing law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee notes that no 
changes in existing law are made by the joint resolution, H.J. 
Res. 32, as ordered reported.