Report Title:

Trust Lands, Condemnation, Protect

Description:

Proposes a constitutional amendment to protect trust lands that benefit Hawaiians from condemnation by the State and counties. (HB675 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

675

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

PROPOSING AN AMENDMENT TO THE HAWAII CONSTITUTION TO PREVENT CONDEMNATION OF TRUST LANDS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Historically, charitable trusts were developed to do public good by providing aid to the community in addition to governmental assistance. In recognition of the provision of these important societal benefits, the federal government adopted specific laws to identify these charitable trusts and to exempt qualifying charitable trusts from paying federal and state income taxes. This law reflects the public policy of supporting charities that relieve the government from the burden of financing all community services.

Recently, the city and county of Honolulu attempted to pass a law patterned after Hawaii's Land Reform Act that had been enacted to break up the large land holdings to provide more affordable housing opportunities. Testimony at the public hearings on this law raised the significant concern that by doing so, landowners that are also charitable trusts, like the Queen Liliuokalani Trust, would have their assets stripped. Even if compensated, given the current economic climate, it is doubtful that they would be able to find another type of investment with the same level of return. The trusts would then be unable to continue their activities that significantly benefit the public.

The legislature finds that charitable trusts whose beneficiaries are Hawaiians--often called "Ali`i trusts"--provide a significant amount of social services in this State. If the charitable trusts fail, many segments of Hawaii's Hawaiian population--the poor, the elderly, women, children, the disabled, and the mentally ill--would lose their safety net. The State would be hard-pressed to finance these services itself.

The purpose of this Act is to ensure that the real property assets of these charitable trusts are able to be preserved by prohibiting the State or the counties from condemning land held in fee by those charitable trusts.

SECTION 2. Article XVI of the Constitution of the State of Hawaii is amended by adding a new section to be designated and to read as follows:

"Section    . Neither the State nor any political subdivision of the State may institute or participate in a condemnation action of land owned by a charitable trust, the beneficiaries of which are Hawaiians.

For the purposes of this section:

"Charitable trust" means a trust created for charitable purposes that has its principal place of administration in this State and whose income is not taxable under the Internal Revenue Code.

"Hawaiian" means any descendant of the aboriginal peoples inhabiting the Hawaiian Islands which exercised sovereignty and subsisted in the Hawaiian Islands in 1778, and which thereafter have continued to reside in Hawaii."

SECTION 3. The question to be printed on the ballot shall be as follows:

"Shall the State and counties be prevented from condemning land owned by any charitable trust sited in this State whose beneficiaries are Hawaiians?"

SECTION 4. New constitutional material is underscored.

SECTION 5. This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.