Category Archives: Legislature

Red flags surround bill on public land redevelopment

I received this information yesterday about a bill that morphed into something potentially quite dangerous. In the worst case, it would allow the privatization of public lands through perpetual leases.

HB 1469 started out as a way to redevelop the hotels on Banyan Drive – urban lands classified for resort development that do need to be redeveloped.

But somewhere along the way, it morphed into a sweetheart deal for existing tenants on any state land, including UH and TMT.

Under existing law, leases of state lands can’t exceed 65 years. Then they need to go back out for auction. The policy is that any lease longer for 65 years is essentially a sale of land. So to be fair, you put it up for auction to allow new parties to bid.

The conference committee just signed off on a final version of the bill that amends the section of the law that governs all state leases – and eliminates the 65-year limit on any new or existing lease on any state lands. Basically, it’s turning tenants into potential owners of state land.

It also eliminates the Land Board’s rights to access certain information from lessees (making it optional) who sell, assign or sublease state land. Which means an existing tenant can get an extension of a lease, turn around and sell it or sublease it for a profit, and the state can’t necessarily take action.

Then some language that specifically applies to the TMT lease was added:

· Allows the Land Board to extend a lease in perpetuity to any person or entity, including any school, government entity or non profit organization upon approval of a development agreement proposed by the lessee to make substantial improvements or construct new improvements. (pp. 20-21). No auction or separate public process needed.

So the Land Board could extend the UH and/or TMT lease at the same time it approves the construction or agreement to improve the area.

This bill raises all kinds of red flags. While the new authority to expend leases without limits likely wouldn’t be abused routinely, it opens the door to special sweetheart deals that will essentially privatize certain state lands, including ceded lands.

It is scheduled to be up for final floor votes in House and Senate Tuesday, May 2. It will be buried in the long list of bills awaiting final approval.

Bill to slash judges’ retirement benefits died in conference committee

SB 249, which would have singled out future judges and justices for a 33% cut in retirement benefits, died at 5 p.m. on Friday afternoon, just before a 6 p.m. deadline. I’m awaiting more news on how the conference negotiations played out in the end.

Meanwhile, I’m attaching the bill’s history (below). More information, including each version of the bill, committee reports, and testimony, is available on its status page.

Also see:
Ian Lind: Hawaii Lawmakers Needlessly Renew Assault On The Judiciary
Civil Beat / January 26, 2017

Legislature’s attacks on judges tied to past failure to fund Hawaiian Homes
Posted on April 26, 2017

SB249 SD2 HD1 Submit

Measure Title: RELATING TO RETIREMENT.
Report Title: Retirement; Pension; Judges; Employees’ Retirement System
Description: Reduces the percentage of average final compensation used to calculate the retirement allowance for a member who first earned credited service as a judge after June 30, 2050, to two per cent. (SB249 HD1)
Companion: HB987
Package: None
Current Referral: LAB, FIN
Introducer(s): KEITH-AGARAN, INOUYE, Dela Cruz, Kim

Sort by Date Status Text
1/20/2017 S Introduced.
1/23/2017 S Passed First Reading.
1/23/2017 S Referred to JDL, WAM.
2/1/2017 S The committee(s) on JDL has scheduled a public hearing on 02-08-17 9:00AM in conference room 016.
2/8/2017 S The committee(s) on JDL recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in JDL were as follows: 3 Aye(s): Senator(s) Keith-Agaran, K. Rhoads, Kim; Aye(s) with reservations: none ; 2 No(es): Senator(s) Gabbard, L. Thielen; and 0 Excused: none.
2/14/2017 S Reported from JDL (Stand. Com. Rep. No. 185) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
2/14/2017 S Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
2/27/2017 S The committee(s) on WAM will hold a public decision making on 03-01-17 9:45AM in conference room 211.
3/1/2017 S The committee(s) on WAM deferred the measure until 03-02-17 10:05AM in conference room 211.
3/2/2017 S The committee(s) on WAM recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in WAM were as follows: 8 Aye(s): Senator(s) Tokuda, Dela Cruz, English, Galuteria, Inouye, K. Kahele, Shimabukuro, Wakai; Aye(s) with reservations: none ; 3 No(es): Senator(s) Harimoto, Riviere, Taniguchi; and 0 Excused: none.
3/3/2017 S Reported from WAM (Stand. Com. Rep. No. 872) with recommendation of passage on Third Reading, as amended (SD 2).
3/3/2017 S 48 Hrs. Notice 03-07-17.
3/7/2017 S Report Adopted; Passed Third Reading, as amended (SD 2). Ayes, 19; Aye(s) with reservations: Senator(s) Espero, Ihara, K. Rhoads. Noes, 5 (Senator(s) Gabbard, Harimoto, Riviere, Taniguchi, L. Thielen). Excused, 1 (Senator(s) English). Transmitted to House.
3/7/2017 H Received from Senate (Sen. Com. No. 106) in amended form (SD 2).
3/9/2017 H Pass First Reading
3/9/2017 H Referred to LAB, FIN, referral sheet 27
3/17/2017 H Bill scheduled to be heard by LAB on Tuesday, 03-21-17 10:00AM in House conference room 309.
3/21/2017 H The committees on LAB recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 5 Ayes: Representative(s) Johanson, Holt, Keohokalole, Nakashima, Yamashita; Ayes with reservations: none; 1 Noes: Representative(s) Matsumoto; and Excused: none.
3/24/2017 H Reported from LAB (Stand. Com. Rep. No. 1356) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
3/24/2017 H Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with Representative(s) Kobayashi, LoPresti, Oshiro, Souki, Tokioka, Tupola, Ward voting aye with reservations; Representative(s) Matsumoto, Say voting no (2) and Representative(s) Aquino, DeCoite, Har, Ichiyama, C. Lee, Thielen excused (6).
3/31/2017 H Bill scheduled to be heard by FIN on Tuesday, 04-04-17 2:00PM in House conference room 308.
4/4/2017 H The committees on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 15 Ayes: Representative(s) Luke, Cullen, Choy, Gates, Holt, Lowen, Nakamura, Quinlan, Yamashita; Ayes with reservations: Representative(s) Cachola, DeCoite, Keohokalole, Kobayashi, LoPresti, Tokioka; 2 Noes: Representative(s) Tupola, Ward; and Excused: none.
4/7/2017 H Reported from FIN (Stand. Com. Rep. No. 1762), recommending passage on Third Reading.
4/11/2017 H Passed Third Reading with Representative(s) Cachola, McKelvey, San Buenaventura, Souki, Takumi, Tokioka voting aye with reservations; Representative(s) DeCoite, Har, Kobayashi, LoPresti, Matsumoto, McDermott, Oshiro, Say, Takayama, Thielen, Tupola, Ward voting no (12) and none excused (0). Transmitted to Senate.
4/13/2017 S Received from House (Hse. Com. No. 583).
4/13/2017 S Senate disagrees with House amendments.
4/13/2017 H Received notice of disagreement (Sen. Com. No. 677).
4/17/2017 H House Conferees Appointed: Johanson, Luke Co-Chairs; Nakashima, Yamashita.
4/17/2017 S Received notice of appointment of House conferees (Hse. Com. No. 587).
4/18/2017 S Senate Conferees Appointed: Keith-Agaran Chair; Tokuda Co-Chair; Kim.
4/18/2017 H Received notice of Senate conferees (Sen. Com. No. 681).
4/19/2017 S Conference committee meeting scheduled for 04-20-17 1:30PM in conference room 325.
4/20/2017 S Conference committee meeting to reconvene on 04-27-17 1:30PM in conference room 325.
4/27/2017 S Conference committee meeting to reconvene on 04-28-17 11:00AM in conference room 325.
4/28/2017 S Conference committee meeting to reconvene on 04-28-17 2:30PM in conference room 309.
4/28/2017 S Conference committee meeting to reconvene on 04-28-17 4:45PM in conference room 309.

Legislature’s attacks on judges tied to past failure to fund Hawaiian Homes

With a key legislative deadline looming Thursday at midnight, the Legislature still on a collision course with the State Supreme Court as it pursues an apparent game of chicken in a dispute over the power of the courts to enforce provisions of the state Constitution.

House and Senate conferees are scheduled to meet at 1:30 Thursday afternoon on a bill that would strip future state judges and justices of 1/3 of the retirement benefits they would earn under current law.

The conference committee meeting is set just hours before Thursday’s midnight deadline for final decking of non-budget bills, which have to be filed in their final form in order in order to be voted on before the annual legislative session wraps up next week.

The bill, SB 249, which faced virtually unanimous opposition during public hearings, is widely seen as a bargaining chip in a behind-the-scenes effort by legislative leaders to muscle the Hawaii Supreme Court into backing off from enforcing a constitutional provision requiring the legislature to provide “sufficient” funds for the administrative and operational budget of the Department of Hawaiian Home Lands.

The bill, introduced by Senator Gil Keith-Agaran, is the latest in a series of anti-Judiciary bills introduced over the past several years, and has gotten farther than any of the prior measures. The only difference between the House and Senate versions is their effective dates, a technical change often inserted simply to force a bill to conference. Observers say agreement seems simple to reach, if legislators want to push this battle to the next stage.

And that next stage is already set. The lawsuit challenging the insufficient funding for Hawaiian Homes, Nelson v. Hawaiian Homes Commission, will return to the Hawaii Supreme Court for consideration of an appeal by the state, and a counter-appeal by the original plaintiffs, on July 6.

The focus of that hearing seems to be on arguments in a legal brief filed on behalf of the Legislature which asserts the courts do not have the power to determine just what the Legislature must do to comply with the constitution. In particular, the Legislature objects to the courts putting a dollar value on what would be a “sufficient” DHHL budget to comply with the constitution.

The Amicus brief filed by former Attorney General Mark J. Bennett, now in private practice, argues that a 2015 Supreme Court decision was misinterpreted in later proceedings, which he asserts caused a major violation of legislative prerogatives under the “separation of powers” doctrine.

The Hawaii Legislature respectfully submits that neither this Court, nor any judge or justice, has the power to either determine the amount of any appropriation, order any appropriation, or impose any penalty should the Hawaii Legislature, in fulfilling its constitutional role, decide how much to appropriate (or not appropriate) to DHHL.

There’s a long history to this case.

A 1978 amendment to the state constitution adopted by voters was intended to take away the Legislature’s discretion and assure these Hawaiian programs adequate funding in the future, according to records of that year’s constitutional convention.

But despite the constitutional amendment, the increased funding never materialized. In the Hawaii Supreme Court’s 2012 decision in the case, the high court found the Legislature had failed to meet the constitution’s funding requirement for most of the past 40 years. And a subsequent 2015 ruling by First Circuit Court Judge Jeanette Castagnetti found that more than $28 million was required to comply with the constitutional mandate in 2016.

Legislative leaders called it a violation of the separation of powers, an argument which had been raised before the Supreme Court but proved unpersuasive. So in fit of legislative pique, they launched a thinly disguised campaign of intimidation aimed at judges and justices, putting forward bills threatening to require Senate approval for reappointment of any sitting judges, calling for judicial elections rather than merit selection, and in the latest case, singling out judges for a large cut to retirement benefits. All the measures were seen as undermining the independence of the courts.

You could almost hear House and Senate leaders taunting the high court. “If you want your independence, you’d better keep your hands off of ours,” they seemed to be loudly signaling.

But plaintiffs in the Nelson case accuse the Legislature of using the separation of powers argument as a smokescreen, “nothing more than a rhetorical gambit.”

They argue that the courts didn’t create the constitutional mandate. It came from the people when voters approved the 1978 constitutional amendment.

“Constitutions are the work of the people, not of the courts, not of the legislature. It was neither the courts nor any other branch of government that decided to impose a mandate upon the State to fund DHHL. It was the people of the state of Hawai`i who made this social contract with the beneficiaries of the Hawaiian homelands trust.

It is the essential role of this court to uphold and enforce this social contract. The amicus brief asks the Court to abdicate this role. Under the guise of the separation of powers doctrine, the amicus brief asks our courts to cede their power to declare whether the constitution has been violated and to order appropriate relief.”

And plaintiffs paint the underlying issue this way:

If not the courts, then to whom does the legislature answer when their actions run afoul of the Hawaii Constitution and the mandates embodied therein? And if not now, after running afoul for more than forty years, then when if ever will the legislature be held to answer?

They point out that although the courts initially held back in order to give the state, and the Legislature, time to address the lack of DHHL funding in their own manner, the Legislature and the state did not act.

Lawyers for DHHL point to testimony during an evidentiary phase of the case in which the state’s representative said they did not know what it cost to operate the Department of Hawaiian Home Lands, and had not set up any mechanism for determining what would be sufficient. Instead, they were waiting on the court to provide a framework for making that determination.

But now the Legislature asserts that by doing just that, the courts have improperly trampled on legislative turf.

It’s an ugly scene. On the one hand, you’ve got judges and justices trying to apply the law, as they are required to do. On the other side, legislators hiding in the shadows, none of them willing to publicly explain or even acknowledge what they’re doing, are pushing bills like SB249 that have not a shred of public support.

They appear to be saying, “forget the law, just stay out of our business.”

If it were simply a legal issue, the appeal of the ruling would have been enough, and we wouldn’t have seen this spate of bills aimed at punishing the Judiciary, and its judges and justices.

At least we don’t have long to wait to find out just how far this strategy of extra-legal intimidation of the courts is going to be pursued by the Legislature. The final decking deadline is tomorrow night.

Reso on federal constitutional convention needs to be killed

Thanks to Sophie Cocke for the update in today’s Honolulu Star-Advertiser on HCR 50, a resolution now pending in the State Senate that would put Hawaii on record favoring a “limited-purpose” federal constitutional convention to “restore free and fair elections.”

The idea of rolling back the U.S. Supreme Court’s ruling in the case of Citizens United, which gave corporations the same rights as individuals to throw money behind candidates and issues in elections, is certainly appealing.

The problem, as pointed out in testimony offered by the state’s Attorney General, is that it is legally unclear whether a constitutional convention can be contained to a limited subject, as called for in this resolution.

“…[M]ost importantly, it is not known whether an Article V convention can be limited to one topic or must be a general convention, which could hypothetically propose amendments for any provision of the federal constitution, or propose a totally novel amendment unrelated to existing constitutional provisions.

I was stunned by a statement by Sen. Karl Rhoads, quoted in Cocke’s story.

“If we don’t do anything we take a risk; if we do something we take a risk,” Rhoads is quoted as saying. “But I’m looking for the downside risk, and I don’t know if I see it.”

Apparently Senator Rhoads hasn’t noticed all the downside risk we’re experiencing these days, with Congressional district gerrymandering, voter intimidation and suppression, a federal attorney general who doesn’t think its right for courts to hold presidential power in check, ethics laws ignored, and rights being eroded, not to mention that pesky Russian interference.

We have everything to lose, and that’s very real downside risk, whether Rhoads wants to admit it or not.

As Common Cause Hawaii noted in its testimony: “Simply put, a Constitutional Convention would create an unpredictable Pandora’s Box. There is far too much at stake to risk putting the entire Constitution up for a wholesale re-write as part of a Constitutional Convention.”

You can find recent testimony on this bill by going to its status page, and clicking on links to testimony on the right side of the page.

Update: The reso has been quietly recommitted to committee. This appears to mean that it is dead for this year, at least.