The Commissioner may include in any patent, agreement, or lease a condition requiring the inclusion of the land in any irrigation project formed or to be formed by the Territorial agency responsible therefor and making the land subject to assessments made or to be made for such irrigation project, which assessment shall be a first charge against the land. For failure to pay the assessments or other breach of the condition the land may be forfeited and sold pursuant to the provisions of this Act, and, when sold, so much of the proceeds of sale as are necessary therefor may be used to pay any unpaid assessments.
All officers and employees under the jurisdiction of the commissioner shall be appointed by him, subject to the Territorial laws of Hawaii relating to the civil service of Hawaii, and all such officers and employees shall be subject to such civil service laws.
Within the meaning of this section, the management of lands set aside for public purposes may, if within the scope of authority conferred by the legislature, include the making of leases by the Hawaii aeronautics commission with respect to land set aside to it, on reasonable terms, for carrying out the purposes for which such land was set aside to it, such as for occupancy of land at an airport for facilities for carriers or to serve the traveling public. No such lease shall continue in effect for a longer term than fifty-five years. If, at the time of the execution of any such lease, the governor shall have approved the same, then and in that event the governor shall have no further authority under this or any other Act to set aside any or all of the lands subject to such lease for any other public purpose during the term of such lease.
The term "remnant" shall mean a parcel of land landlocked or without access to any public highway, and, in the case of an urban area, no larger than five thousand square feet in size, or, in the case of a suburban or rural area, no larger than one and one-half acres in size.
Any person or persons holding an unpatented homestead under a special homestead agreement, entered into prior to the effective date of this paragraph, excluding those homesteads under the control of the Hawaiian Homes Commission as provided in section 203 of the Hawaiian Homes Commission Act, 1920, shall be entitled to a reamortization of the indebtedness due the Territory of Hawaii on account of such special homestead agreement upon filing an application for the reamortization of said indebtedness with the commissioner within six months after the effective date of this paragraph. Upon the filing of any such application, the commissioner shall determine the balance due the Territory in the following manner: The amount of the principal which would have been paid during the full period of payment provided for in the special homestead agreement had the agreement been duly performed according to its terms and the amount of the interest which would have been paid under the special homestead agreement prior to the effective date of this paragraph had the agreement been duly performed according to its terms shall be computed and added together; from the sum of these amounts there shall be deducted all moneys that have been actually paid to the Territory on account of the special homestead agreement, whether as principal or as interest. The balance thus determined shall be the total amount remaining due and payable for the homestead covered by such special homestead agreement, any other terms, conditions, or provisions in any of said agreements, or any provisions of law to the contrary notwithstanding: Provided, however, That nothing herein contained shall be deemed to excuse the payment of taxes and other charges and assessments upon unpatented homestead lands as provided in said agreements, nor to excuse or modify any term, condition, or provision of said agreements other than such as relate to the principal and interest payable to the Territory. The total amount remaining due, determined as hereinabove provided, shall be payable in fifteen equal biennial installments. Simple interest at the rate of three per centum per annum shall be charged upon the unpaid balance of such installments, whether matured or unmatured, said interest to be computed from the effective date of this paragraph and to be payable semi-annually. The first payment on account of principal shall be due two years subsequent to the effective date of this paragraph, and thereafter the due dates of principal payments shall be at regular two-year periods; the first payment on account of interest shall be due six months subsequent to the effective date of this paragraph, and thereafter the due dates of interest payments shall be at regular six-month periods. In case of default in payments of principal or interest on the due dates as hereby fixed the commissioner may, with the approval of the governor, with or without legal process, notice, demand, or previous entry, take possession of the land covered by any such special homestead agreement and thereby determine the estate created by such agreement as hereby modified, whereupon liability for payment of any balance then due under such special homestead agreement shall terminate. When the aforesaid payments have been made to the Territory of Hawaii, and all taxes, charges, and assessments upon the land have been paid as provided by said agreements, and all other conditions therein stipulated have been complied with, except as herein excused or modified, the said special homestead agreements shall be deemed to have been performed by the holders thereof, and land-patent grants covering the land described in such agreements shall be issued to the parties mentioned therein, or their heirs or assigns, as the case may be.
Neither the Territory of Hawaii nor any of its officers, agents or representatives shall be liable to any holder of any special homestead agreement, past or present, whether or not a patent shall have issued thereon, or to any other person, for any refund or reimbursement on account of any payment to the Territory in excess of the amount determined as provided by the preceding paragraph, and the legislature shall not recognize any obligation, legal or moral, on account of such excess payments.
HRS § 73
The effective date of the last two paragraphs was June 12, 1940.
Exemptions From Section 73
(1) The Act of July 10, 1937, c 484, 50 Stat 508, (48 U.S.C.A. 562g) provides in part:
"That the Legislature of the Territory of Hawaii may create a public corporate authority to engage in slum clearance, or housing undertakings, or both, within such Territory. ***The legislature*** may, without regard to any federal Acts restricting the disposition of public lands of the Territory, authorize the commissioner of public lands, the Hawaiian homes commissioners, and any other officers of the Territory having power to manage and dispose of its public lands, to grant, convey, or lease to such authority parts of the public domain, and may provide that any of the public domain or other property acquired by such authority may be mortgaged by it as security for its bonds.***"
(2) The Act of February 27, 1920, c 89, 41 Stat 452, (16 U.S.C.A. 392) provided that the provisions of section 73 relating to exchanges should not apply with respect to the acquisition of privately owned lands within Hawaii National Park.
(3) The Act of August 7, 1946, c 787, 60 Stat 884, provided that the provisions relating to exchange should not apply to the acquisition of certain lands in Hilo.
(4) See Act of August 24, 1954, c 888, 68 Stat 781, authorizing the commissioner of public lands to sell public lands to certain lessees, permittees and others.
General Notes
The amendments of July 9, 1921, are part of the "Hawaiian Homes Commission Act, 1920," the homes commission proper part of which is set forth in full hereinafter, following the Organic Act. See Joint Resolution of Annexation and the note thereto, RLH 1955, page 13, in regard to the cession of public lands to the United States, their status, disposition thereof, application of the proceeds thereof, and grants of franchises, between annexation and the establishment of territorial government; see Chronological Note of Acts Affecting Hawaii for Acts of Congress, Presidential proclamations and Executive orders relating to public lands, RLH 1955, page 9ff, see also the note to section 91; also §§75, 89, 91, 95, 97 and 99 of this act on public lands; also laws in this Revision relating to public lands. As to shores, harbors, etc. see §106. Quaere, whether the federal statute (29 Stat 618, 8 U.S.C.A. 71-77) relating to disabilities of aliens to hold land in territories in general applies to Hawaii.
Under this § and §91, the public lands are under the territorial laws, but the President may set aside such as he deems proper for the uses of the United States, 24 Ops. 600. Lands reserved by Executive order in the Territory for use of War Department may be returned by Executive order when purposes for which they were set aside have been served, 35 Ops. 205. The Territory may acquire private lands by exchange, and these may then be so set aside by the President: 24 Ops. 600.
Surplus water rights pass to owner of ili kupono on which lies source, 31 H. 376, aff. 52 F.2d 356.
The legislature may add to the duties of the commissioner of public lands: 18 H. 490. Before the amendment of May 27, 1910, the commissioner's powers were subject to those of the superintendent of public works in respect of certain classes of lands under §75: 17 H. 540 et seq. (town lots); 18 H. 226, 231 (power of exchange).
The title of the government to crown lands cannot be questioned by the courts: 18 H. 645. Quaere, whether continuing the Hawaiian land laws in force until Congress otherwise provides, makes them federal laws so as to permit an appeal to the federal supreme court on the ground that a federal question is involved: 211 U.S. 442. Leasehold interest in public land may be assessed at value of fee; quaere whether that provision of the tax law was continued in force by this § as part of laws relating to public lands: 23 H. 624. Provision for reimbursement of homesteader for appraised value of improvements, on forfeiture, was continued in force by this § (before its am.) and legislature cannot appropriate additional amount on theory that appraisement was too low: 25 H. 409. Likewise legislature cannot appropriate money to reimburse purchaser in part on theory that purchase price was appraised too high: 26 H. 106. Assignment of mortgage is within inhibition against transfers without written consent of commissioner and governor: 27 H. 4. A franchise granted by the legislature on the day (July 7, 1898) the joint resolution of annexation was passed by Congress, whether ratified or not by this §, is not a federal franchise exempt from territorial taxation: 18 H. 18, 20; 211 U.S. 142, the latter holding also that a franchise granted July 7, 1898, was not excluded from the franchises granted between that day and a later date, which were ratified by this §. See §55 on grants of franchises by the territorial legislature.
Referred to in 16 Hawai'i. 245; 21 H. 137; 30 H. 210; 32 H. 310; 40 H. 675.
See RLH 1955, cc 99 to 99D, 103A.
Discretionary powers given to commissioner not unlawful delegation. 41 H. 461.
Land laws of Hawaii, including section 73, will continue as state laws, notwithstanding section 15 of the Admission Act prescribing a cut-off date. Att. Gen. Op. 61-68. But laws relating to management and disposition of public lands were repealed by L. 1962, c 32, §3.
Other Related Legislation
a. Federal Acts:
(1) Act of April 6, 1956, c 184, 70 Stat 104, and Act of Aug. 29, 1958, Pub L 85-694, 72 Stat 686, authorizing the amendment of certain patents of government lands by removing the conditions therein restricting use of such lands.
(2) Act of August 18, 1958, Pub L 85-677, 72 Stat 628, grants status of public lands to certain reef lands. See also RLH 1955 c 99D, HRS c 173.
(3) Act of August 21, 1958, Pub L 85-713, 72 Stat 707, authorizes exchange of public lands for private lands of equal value required for highway purposes.
(4) Act of August 28, 1958, Pub L 85-834, 72 Stat 987, permits certain sales and exchanges of public lands to persons who suffered substantial real property losses due to tidal wave of March 9, 1957.
b. Territorial Acts: Effective upon approval by Congress of legislation making the acts valid without approval by Congress, or upon ratification by the state legislature.
(1) L. 1957, c. 39, permits holders of certain public lands to mortgage the land without necessity of obtaining governor's consent.
(2) L. 1959, c. 180, s. 2, amends the second paragraph of section 73(r) to read: "The term 'remnant' shall mean a parcel of land unsuitable for development as a separate unit, and, in case of an urban area, no larger than five thousand square feet in size, or in case of a suburban or rural area, no larger than one and one-half acres in size."
(3) L. 1959, c. 269, authorizes the subdivision, improvement and leasing of public lands for residential purposes to qualified persons selected by drawing without public auction.
(4) L. 1959, J.R. 2, s. 1, amends section 73(g) by adding to the first sentence the proviso to read: "Provided, That if consent be given to a mortgage or other transfer for security purposes to an established lending agency and such agency be the Federal Housing Administration or other similar federal or territorial agency or a corporation authorized to do business as a lending agency in the Territory or elsewhere in the United States, no further consent shall be required for: (1) any subsequent assignment or reassignment made by such agency or assignee thereof to a like lending agency for refinancing or other security purposes; or (2) any transfer made at a foreclosure sale held pursuant to the provisions of said mortgage or transfer for security purposes; or (3) any subsequent transfer made by the purchaser at said foreclosure sale if the transferor shall be such agency or assignee thereof, provided that all other or further disposition shall be made only in accordance with the provisions of this act."
Law Journals and Reviews
The Lum Court and Native Hawaiian Rights. 14 UH L. Rev. 377.
The Crown Lands Trust: Who Were, Who Are, the Beneficiaries? 38 UH L. Rev. 213 (2016).