After nearly a century, the U.S. government for the first time is proposing administrative rules to clarify its oversight of the federally created land trust designed to benefit thousands of Native Hawaiians.
The proposed regulations will address the process the Department of the Interior uses to evaluate changes sought by the state to the Hawaiian Homes Commission Act, the federal law that established the roughly 200,000-acre trust in 1921.
The rules, being made public Friday, also would spell out procedures the agency will use for reviewing land exchanges involving trust property.
If adopted after a 60-day public-comment period, the administrative rules would be the first dealing with Interior’s oversight of the trust, which is managed by the state Department of Hawaiian Home Lands.
The trust was created by Congress to serve as a land base for developing residential, farming and ranching homesteads in Hawaii for those at least 50 percent Hawaiian, considered trust beneficiaries. The lots are leased for 99 years at $1 per year.
After the legislation was signed into law, the typical process of establishing administrative rules to implement a new statute never happened, leaving room for wide interpretations of the more ambiguous sections of the law. Statutory requirements and administrative policy over the years shaped oversight, but the latter could change with new administrations.
Some beneficiaries said they believe the absence of federal rules has contributed to lax oversight of the trust, which historically has been plagued by mismanagement and a slow pace of developing homesteads.
MORE THAN 26,000 beneficiaries are on waitlists, including some who applied decades ago and still have no lots.
"The Department of Interior takes our responsibilities for the Hawaiian Home Lands Trust and its beneficiaries seriously," Kris Sarri, the agency’s principal deputy assistant secretary for policy, management and budget, said in a statement. "The trust is vital to the health and strength of the Native Hawaiian community and especially to the beneficiaries who live on the lands or are on the waiting list for a homestead lease."
Robin Danner, the former Council for Native Hawaiian Advancement chief executive who met two years ago with President Obama to ask that the rule-making process start, was elated when she heard about the latest development.
After nearly 95 years without rules, Danner said, the start of the rule-making process marks a significant step that proponents say will lead to more federal regulations, providing clear parameters for holding the state accountable and paving the way for more trust lands going to beneficiaries.
"We were high-fiving," Danner said upon learning the news. "It means the door is open and it can’t be shut."
An Interior spokeswoman told the Honolulu Star-Advertiser that her agency does not expect to issue additional proposed rules beyond what is being made public this week.
"That’s very disheartening," said Kauai resident Bill Fernandez, a retired judge who believes more rules are needed to hold the state accountable for its trust obligations.
But Danner, who is policy chairwoman for the Sovereign Councils of the Hawaiian Homelands Assembly, said the Obama administration was asked to start with two basic "housekeeping" areas for practical and strategic reasons — Obama’s term ends in January 2017 — and that beneficiaries will advocate for more rules once the next administration takes office.
"This is just the beginning of what I anticipate will be five to six years of rule-making," she said.
"I think this is amazing," added Michelle Kauhane, head of the Native Hawaiian Advancement group, which several years ago made federal rule-making a top priority. "It’s an important step in the right direction."
Interior said the proposed rules seek to clarify the federal government’s responsibilities in helping to ensure trust management occurs in a fair, transparent and sustainable manner.
ONE SET OF regulations outlines the standards to be used in reviewing land exchanges, including the requirement that applicable U.S. laws, such as the National Historic Preservation Act, be followed and appraisals meet federal thresholds.
The other set clarifies the steps Interior will take and the standards it will use to evaluate proposed amendments to the 1921 act.
The proposed rules are expected to be available for public review beginning Friday morning at www.doi.gov/ohr/notifications.
