WASHINGTON, D.C. -- United States Senator Daniel K. Inouye announced that the Senate approved a provision to "forgive" the State of Hawaii from its obligation to repay $30 million owed to the Airport Revenue Fund for ceded land payments to the Office of Hawaiian Affairs (OHA).

Senator Inouye prevailed on his colleagues and the airlines to allow the forgiveness of the debt. There was no malice involved, but rather the good faith belief on the part of the State of Hawaii that these funds were part of the airport's operating expenses. Additionally, in light of the unique history of Hawaii's ceded lands and the obligations that flow from these lands for the betterment of the Native Hawaiian people, the provision was accepted to ensure that OHA would not be required to return funds already in its possession.

This provision also codifies the Inspector General's ruling, and requires that no further or future airport revenues be used for ceded land payments, whether characterized as operating expenses or rent, to OHA.

Senator Inouye commented, "The Inspector General's ruling was very clear, and the State's failure to repay the funds and comply with its mandate would have resulted in penalties, and the withholding of federal aviation funding which it needs to operate the Hawaii airport system."

In addition, at Senator Inouye's request, the Senate clarified the ceded land "forgiveness" provision to ensure that it not be construed to negate the State of Hawaii's obligations to OHA under state law.

The following is Senator Inouye's floor statement.

"Mr. President, I rise to expound upon a provision in the Transportation Appropriations bill to "forgive" the State of Hawaii from its obligation to repay $30 million owed to the Airport Revenue Fund for ceded land payments to the Office of Hawaiian Affairs (OHA).

Current law states that airport revenues can only be used for airport purposes. The U.S. Department of Transportation's Inspector General found in September of 1996 that the approximately $30 million in ceded land payments made from the Hawaii Airport Revenue Fund were not in compliance with the law. In April of this year, the U.S. Department of Transportation affirmed the decision, and is seeking the repayment of those monies.

A continuation of the status quo -- continued ceded land payments from the Airport Revenue Fund -- was not possible. It was counter to the U.S. Department of Transportation's position and policy. I did not have the support of my colleagues to legislate its continuation. At this time, forgiveness of the $30 million debt was possible and achievable. I thank my colleagues for allowing for the Congressional forgiveness of an airport revenue diversion in order to aid the State of Hawaii and the Office of Hawaiian Affairs.

However, I would like to make clear that as a result of the U.S. Department of Transportation ruling and the pending legislation, the removal of the Airport Revenue Fund for use by the State of Hawaii as a source of compensating the Office of Hawaiian Affairs for use of ceded lands upon which the airports sit, should not equate to a like reduction in the State's obligation to OHA under state law. This forgiveness provision should not be construed as a forgiveness of the State's obligation to OHA.

The airports continue to sit on ceded lands. The State's obligation to compensate OHA for the use of the land upon which the airports sit should also continue. The only difference would now be the source the State will draw upon to satisfy its obligation. I have viewed my role as aiding in alleviating the accumulated debt to reduce the pressure, and thereby allow the State and OHA to return to the negotiating table to work toward a mutually acceptable course of action that accepts as a premise, the existence of an obligation.

To ensure that my intent is clear in this regard, I have requested the inclusion of the following provision in Section 335:

"Nothing in this Act shall be construed to affect any existing statutes of the several states that define the obligations of such states to Native Hawaiians, Native Americans or Alaskan Natives in connection with ceded lands, except to make clear that airport revenues may not be used to satisfy any such obligations."

Mr. President, in light of the unique history of Hawaii's ceded lands and the obligations that flow from these lands for the betterment of the Native Hawaiian people, I believe that this is more than a fiscal matter, this is a fiduciary matter -- one of trust and obligation. Section 335 ensures that the State of Hawaii and OHA would not be required to return funds already in their possession. It is my expectation that this will calm the waters and clear the way for reasoned negotiations as the State, in good faith, looks to satisfy its obligations from other sources."

These provisions are included in the Fiscal Year 1998 Department of Transportation Appropriations Bill which now faces a joint House-Senate Conference and final Senate vote before its transmittal to the White House.