House panel advances temporary increase in public land trust transfers to OHA amid dispute over what constitutes 20%

The House Judiciary and Hawaiian Affairs Committee on Feb. 12 advanced House Bill 2,584, a measure that would temporarily increase the portion of public land trust revenues transferred to the Office of Hawaiian Affairs (OHA).

OHA trustees told the committee that the agency currently receives about $21.5 million a year—roughly 5% of public land trust income—well short of the 20% share OHA says is required by state law. Trustee Carmen Hulu Lindsey testified, "I stand in strong and unequivocal support of House Bill 2,584 to ensure the fair and lawful allocation of revenues from the public land trust," saying full funding would expand programs for housing, education, health and economic stability for Native Hawaiians.

Representatives of OHA and other testifiers cited an Act 61 carry‑forward account with about $55 million as evidence there are identifiable funds that could be applied to OHA's share. OHA and supporters argued the disparity is not merely budgetary but an issue of legal compliance and long‑standing underfunding.

The attorney general's office urged caution. An AG representative told the committee that while the constitution and the 1959 Admission Act refer to a "pro rata share," they do not themselves define a 20% floor. The AG recommended removing statutory language that would require payment of a fixed 20% absent clearer standards, citing uncertainty about whether 20% should be calculated on gross versus net revenue or which income streams count toward the trust.

Department of Land and Natural Resources officials warned that without a specified dollar amount the bill's fiscal effects on other special funds and management programs were unclear. Committee members pressed both sides about practical options: temporarily raising or removing the statutory cap on OHA payments, using the existing carry‑forward account, or inserting a temporary fixed increase while the Public Land Trust working group completes its inventory and recommendations.

The committee advanced the measure with technical amendments and asked the finance committee to determine the specific appropriation amount, referencing the Public Land Trust working group's findings. In discussion the chair said the committee's intent is to signal that current payments are inadequate and that finance should weigh available revenue and the working group's report when setting a temporary annual payment.

What happens next: the committee moved HB 2,584 forward with amendments and a defective effective date; the finance committee will be asked to set a temporary increase in the annual payment, taking into account the PLT working group's report and the state's fiscal capacity.