80_FR_27225 80 FR 27134 - Land Exchange Procedures and Procedures To Amend the Hawaiian Homes Commission Act, 1920

80 FR 27134 - Land Exchange Procedures and Procedures To Amend the Hawaiian Homes Commission Act, 1920

DEPARTMENT OF THE INTERIOR
Office of the Secretary

Federal Register Volume 80, Issue 91 (May 12, 2015)

Page Range27134-27141
FR Document2015-11401

This rule would remove ambiguities the State of Hawai`i faces in administration of the Hawaiian Homes Commission Act. It would facilitate the goal of the rehabilitation of the Native Hawaiian community, including the return of native Hawaiians to the land, consistent with the Hawaiian Homes Commission Act, the State of Hawai`i Admission Act, and the Hawaiian Home Lands Recovery Act. The rule clarifies the land exchange process, the documents required, and the respective responsibilities of the Department of the Interior, the Department of Hawaiian Home Lands, and other entities engaged in land exchanges of Hawaiian home lands. It also clarifies the documents required and the responsibilities of the Secretary of the Interior in the approval process for proposed amendments by the State of Hawai`i to the Hawaiian Homes Commission Act, 1920, as amended.

Federal Register, Volume 80 Issue 91 (Tuesday, May 12, 2015)
[Federal Register Volume 80, Number 91 (Tuesday, May 12, 2015)]
[Proposed Rules]
[Pages 27134-27141]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-11401]


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DEPARTMENT OF THE INTERIOR

Office of the Secretary

43 CFR Parts 47 and 48

RIN 1090-AA98


Land Exchange Procedures and Procedures To Amend the Hawaiian 
Homes Commission Act, 1920

AGENCY: Office of the Secretary, Interior.

ACTION: Proposed rule.

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SUMMARY: This rule would remove ambiguities the State of Hawai`i faces 
in administration of the Hawaiian Homes Commission Act. It would 
facilitate the goal of the rehabilitation of the Native Hawaiian 
community, including the return of native Hawaiians to the land, 
consistent with the Hawaiian Homes Commission Act, the State of Hawai`i 
Admission Act, and the Hawaiian Home Lands Recovery Act. The rule 
clarifies the land exchange process, the documents required, and the 
respective responsibilities of the Department of the Interior, the 
Department of Hawaiian Home Lands, and other entities engaged in land 
exchanges of Hawaiian home lands. It also clarifies the documents 
required and the responsibilities of the Secretary of the Interior in 
the approval process for proposed amendments by the State of Hawai`i to 
the Hawaiian Homes Commission Act, 1920, as amended.

DATES: Comments must be submitted on or before July 13, 2015.

ADDRESSES: You may submit comments on the rulemaking by either of the 
methods listed below. Please use Regulation Identifier Number 1090-AA98 
in your message.
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow 
the instructions on the Web site for submitting comments.
    2. U.S. mail, courier, or hand delivery: Office of Native Hawaiian 
Relations, Department of the Interior, 1849 C Street NW., Washington, 
DC 20240.

FOR FURTHER INFORMATION CONTACT: Ka`i`ini Kimo Kaloi, Director, Office 
of Native Hawaiian Relations, telephone (202) 208-7462.

SUPPLEMENTARY INFORMATION:

I. Background

    In 1921, Congress enacted the Hawaiian Homes Commission Act (HHCA), 
42 Stat. 108, to provide a homesteading program for native Hawaiians by 
placing approximately 200,000 acres of land (known as Hawaiian home 
lands) into trust. The HHCA and the Hawaiian Home Lands Trust are 
administered by the Department of Hawaiian Home Lands (DHHL), an agency 
of the State of Hawai`i. The HHCA provides the DHHL the authority to 
propose to the Secretary of the Interior the exchange of Hawaiian home 
lands for land privately or publicly owned in furtherance of the 
purposes of the HHCA.
    The Hawaiian Homes Commission Act, among other things, created a 
series of funds HHCA section 213, 42 Stat. 108 (as amended). The intent 
of one of these funds is the ``rehabilitation of native Hawaiians,'' 
which includes the rehabilitation of ``the educational, economic, 
political, social, and cultural processes by which the general welfare 
and conditions of native Hawaiians are thereby improved and 
perpetuated.'' Id. The Department of the Interior interprets the term 
``rehabilitation'' to include political, cultural and social 
reorganization that would facilitate the stated goals of 
rehabilitation.\1\ By providing a clear process for the Department's 
review and approval of land exchanges and HHCA amendments, this 
regulation will further the goals of the HHCA, including 
rehabilitation.
---------------------------------------------------------------------------

    \1\ See generally Hearings on the Rehabilitation and 
Colonization of Hawaiians and Other Proposed Amendments to the 
Organic Act of the Territory of Hawai'i before the House Committee 
on the Territories, H.R. Rep. No. 839, 66th Cong., 2d Sess., at 4 
(1920) (Sen. John H. Wise testified, ``The Hawaiian people are a 
farming people and fishermen, out-of-door people, and [being] frozen 
out of their lands . . . is one of the reasons why the Hawaiian 
people are dying. Now, the only way to save them, I contend, is to 
take them back to the lands and give them the mode of living that 
their ancestors were accustomed to and in that way rehabilitate 
them.'').
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    In 1959, Congress enacted the Hawai`i Admission Act, 73 Stat. 4, to 
admit the State of Hawai`i into the United States. In compliance with 
the Hawai`i Admission Act, and as a compact between the State of 
Hawai`i and the United States relating to the management and 
disposition of the Hawaiian home lands, the State of Hawai`i adopted 
the HHCA, as amended, as a law of the State through Article XII of the 
Constitution of the State. Because Congress in the HHCA section 223 
reserved the right to alter, amend, or repeal Title 2 of the HHCA, 
section 4 of the Hawai`i Admission Act provides that the HHCA is 
subject to amendment or repeal by the State of Hawai`i only with the 
consent of the United States. Recognizing, however, that it was 
granting the State administrative authority, Congress in section 4 also 
provided exceptions within which the State could amend certain 
administrative provisions of the HHCA without the consent of the United 
States.
    During the territorial period of Hawai`i, the HHCA was included in 
the compilation of the Revised Laws of Hawai`i. Following Hawai`i's 
statehood, the HHCA was not repealed and remains in effect with 
elements of both Federal and State law. The compilation of the HHCA was 
removed from the text of the United States Code and inserted into a 
note in the Code, recognizing the State's authority to amend provisions 
of the HHCA that do not alter the responsibilities of the United States 
or infringe upon its interests or the interests of the beneficiaries.

[[Page 27135]]

    The HHCA is a compound of interdependent Federal and State law. 
Congress enacted the Hawaiian Home Lands Recovery Act, 1995, (HHLRA), 
Public Law 104-42, 109 Stat. 357, which provides that the Secretary of 
the Interior shall determine whether a proposed amendment to the HHCA 
requires the consent of the United States under section 4 of the 
Hawai`i Admission Act. It is appropriately the function of the United 
States to ensure conformance with the limitations in the Admissions Act 
and protect the integrity of this statutory framework.
    The HHLRA also clarified the role of the Secretary in the oversight 
of the Hawaiian Home Lands Trust. Section 204(a)(3) of the HHCA, in 
conjunction with Section 205 of the HHLRA, requires the approval or 
disapproval of the Secretary of the Interior for the exchange of 
Hawaiian home lands. The HHLRA details the Secretary's responsibilities 
to ensure that Hawaiian home lands are administered in a manner that 
advances the interests of the beneficiaries.
    The HHLRA clarifies the scope of two of the continuing 
responsibilities of the Federal Government with regard to the HHCA. It 
clarifies the role of the Secretary in land exchanges and requires the 
State of Hawai`i to notify the Secretary of the Interior of any 
amendment it proposes to the HHCA and requires the Secretary to 
determine whether the State is proposing to amend the Federal 
responsibilities under the HHCA, or infringe on Federal interests or 
those of the beneficiaries, thus requiring Congress to approve the 
proposed amendment. 43 CFR part 47 of the proposed regulations sets 
forth the Secretary's process for approving or disapproving land 
exchanges of Hawaiian home lands conducted by DHHL under the HHCA and 
HHLRA. 43 CFR part 48 of the proposed regulations establishes the 
review and approval process for State of Hawai`i proposed amendments to 
the HHCA.

II. Summary of Impacts

1. Regulatory Planning and Review (Executive Orders 12866 and 13563.)

    Executive Order 12866 provides that the Office of Information and 
Regulatory Affairs will review all significant rules. The Office of 
Information and Regulatory Affairs determined that this rule is not 
significant.
    Executive Order 13563 reaffirms the principles of E.O. 12866 while 
calling for improvements in the nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The executive order directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. E.O. 13563 emphasizes further 
that regulations must be based on the best available science and that 
the rulemaking process must allow for public participation and an open 
exchange of ideas. This proposed rule is consistent with these 
requirements.

2. Regulatory Flexibility Act

    The Department of the Interior certifies that this proposed rule 
will not have a significant economic effect on a substantial number of 
small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et 
seq.).

3. Small Business Regulatory Enforcement Fairness Act (SBREFA)

    This is not a major rule under 5 U.S.C. 804(2), the Small Business 
Regulatory Enforcement Fairness Act. This proposed rule:
    (a) Does not have an annual effect on the economy of $100 million 
or more.
    (b) Will not cause a major increase in costs or prices for 
consumers, individual industries, Federal, State, or local government 
agencies, or geographic regions.
    (c) Does not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

4. Unfunded Mandates Reform Act

    This proposed rule does not impose an unfunded mandate on State, 
local, or tribal governments or the private sector of more than $100 
million per year. The proposed rule does not have a significant or 
unique effect on State, local or tribal governments or the private 
sector. A statement containing the information required by the Unfunded 
Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required.

5. Takings (E.O. 12630)

    In accordance with Executive Order 12630, the rule does not have 
significant takings implications. A takings implication assessment is 
not required.

6. Federalism (E.O. 13132)

    In accordance with Executive Order 13132, the proposed rule does 
not have sufficient federalism implications to warrant the preparation 
of a Federalism Assessment. It would not substantially and directly 
affect the relationship between the Federal and state governments. The 
Secretary of the Department of the Interior has oversight to ensure 
that land under the HHCA is administered in a manner that advances the 
interests of the beneficiaries. A Federalism Assessment is not 
required.

7. Civil Justice Reform (E.O. 12988)

    In accordance with Executive Order 12988, the Office of the 
Solicitor determined that this proposed rule does not unduly burden the 
judicial system and meets the requirements of sections 3(a) and 3(b)(2) 
of the Order.

8. Consultation With Indian Tribes (E.O. 13175)

    Under the criteria in Executive Order 13175, the Department 
evaluated this proposed rule and determined that it has no potential 
effects on federally recognized Indian tribes. This proposed rule does 
not have tribal implications that impose substantial direct compliance 
costs on Indian Tribal governments.

9. Paperwork Reduction Act

    This proposed rule does not require an information collection from 
10 or more parties and a submission under the Paperwork Reduction Act 
is not required. An OMB form 83-I is not required.

10. National Environmental Policy Act

    This proposed rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. A 
detailed statement under the National Environmental Policy Act, 1969, 
is not required. Under Departmental Manual 516 DM 2.3A(2), Section 1.10 
of 516 DM 2, Appendix 1 excludes from documentation in an environmental 
assessment or impact statement ``policies, directives, regulations and 
guidelines of an administrative, financial, legal, technical or 
procedural nature; or the environmental effects of which are too broad, 
speculative or conjectural to lend themselves to meaningful analysis 
and will be subject later to the NEPA process, either collectively or 
case-by-case.''

11. Effects on the Energy Supply (E.O. 13211)

    This proposed rule is not a significant energy action under the 
definition in Executive Order 13211. A Statement of Energy Effects is 
not required. This proposed rule will not have a significant effect on 
the nation's energy supply, distribution, or use.

[[Page 27136]]

12. Clarity of This Regulation

    The Department is required by Executive Orders 12866 and 12988 and 
by the Presidential Memorandum of June 1, 1998, to write all rules in 
plain language. This means that each rule the Department publishes 
must:
    (a) Be logically organized;
    (b) Use the active voice to address readers directly;
    (c) Use clear language rather than jargon;
    (d) Be divided into short sections and sentences; and
    (e) Use lists and tables wherever possible.
    If you feel that the Department did not meet these requirements, 
please send comments by one of the methods listed in the ADDRESSES 
section. To better help the Department revise the rule, your comments 
should be as specific as possible. For example, you should tell us the 
numbers of the sections or paragraphs that you find unclear, which 
sections or sentences are too long, the sections where you feel lists 
or tables would be useful, etc.

13. Public Availability of Comments

    Before including your address, phone number, email address, or 
other personal identifying information in your comment, you should be 
aware that your entire comment--including your personal identifying 
information--may be made publicly available at any time. While you can 
ask the Department in your comment to withhold your personal 
identifying information from public review, the Department cannot 
guarantee that it will be able to do so.

List of Subjects in 43 CFR Parts 47 and 48

    Hawaii, Intergovernmental programs, Land, State-Federal relations.

    Dated: May 6, 2015.
Kristen J. Sarri,
Principal Deputy Assistant Secretary for Policy, Management and Budget.
    For the reasons stated in the preamble, the Department of the 
Interior proposes to amend title 43 of the Code of Federal Regulations 
by adding new parts 47 and 48 as set forth below:

PART 47--LAND EXCHANGE PROCEDURES

Sec.
47.5 What is the purpose of this part?
47.10 What definitions apply to terms used in this part?
47.15 What laws apply to exchanges made under this part?
Subpart A--The Exchange Process
47.20 What factors will the Secretary consider in analyzing a land 
exchange?
47.30 When does a land exchange advance the interests of the 
beneficiaries?
47.35 Must lands exchanged be of equal value?
47.40 How must properties be described?
47.45 How does the exchange process work?
47.50 What should DHHL include in a land exchange proposal for the 
Secretary?
47.55 What are the minimum requirements for appraisals used in a 
land exchange?
47.60 What documentation must DHHL submit to the Secretary in the 
land exchange packet?
Subpart B--Approval and Finalization
47.65 When will the Secretary approve or disapprove the land 
exchange?
47.70 How does DHHL complete the exchange once approved?

    Authority:  State of Hawai`i Admission Act, 73 Stat. 4, chapter 
339, approved March 18, 1959; Hawaiian Homes Commission Act, 1920, 
as amended, Act of July 9, 1921, chapter 42, 42 Stat. 108; Hawaiian 
Home Lands Recovery Act, 1995, 109 Stat. 537, Public Law 104-42; 5 
U.S.C. 301; 25 U.S.C. 2 and 9; 43 U.S.C. 1457; 112 Departmental 
Manual 28.


Sec.  47.5  What is the purpose of this part?

    This part sets forth the procedures for conducting land exchanges 
of Hawaiian home lands authorized by the Hawaiian Homes Commission Act 
(HHCA), 1920, as amended.


Sec.  47.10  What definitions apply to terms used in this part?

    As used in this part, the following terms have the meanings given 
in this section.
    Appraisal or Appraisal report means a written statement 
independently and impartially prepared by a qualified appraiser setting 
forth an opinion as to the market value of the lands or interests in 
lands to be exchanged as of a specific date(s), supported by the 
presentation and analysis of relevant market information.
    Beneficiaries means ``native Hawaiian(s)'' as that term is defined 
under section 201(a) of the Hawaiian Homes Commission Act.
    Chairman means the Chairman of the Hawaiian Homes Commission 
designated under section 202 of the Hawaiian Homes Commission Act.
    Commission means the Hawaiian Homes Commission established by 
section 202 of the Hawaiian Homes Commission Act, which also serves as 
the executive board of the Department of Hawaiian Homes Lands.
    Consultation means an open discussion process that allows 
interested parties to address potential issues, changes, or actions. 
Consultation does not require formal face to face meetings. However, it 
does require dialogue (verbal, electronic, or printed) or at least a 
good faith effort to engage in dialogue between the DHHL and the 
beneficiaries, consideration of their views, and, where feasible, seek 
agreement with the beneficiaries when engaged in the land exchange 
process.
    DHHL or Department of Hawaiian Home Lands means the department 
established by the State of Hawai`i under sections 26-4 and 26-17 of 
the Hawai`i Revised Statutes to administer the Hawaiian Homes 
Commission Act. This department assumes the authorities and 
responsibilities of the Hawaiian Homes Commission and the Commission 
serves as the department's executive board under amended section 202 of 
the Hawaiian Homes Commission Act.
    Hawaiian home lands means all trust lands given the status of 
Hawaiian home lands under section 204 of the Hawaiian Homes Commission 
Act, and those lands obtained through approval under this part, and as 
directed by Congress.
    Hazardous substances means those substances designated under 
Environmental Protection Agency regulations at 40 CFR part 302.
    HHCA or Hawaiian Homes Commission Act means the Hawaiian Homes 
Commission Act, 1920, Act of July 9, 1921, chapter 42, 42 Stat. 108, as 
amended.
    HHLRA or Hawaiian Home Lands Recovery Act means the Hawaiian Home 
Lands Recovery Act, 1995, Public Law 104-42, 109 Stat. 357.
    Land exchange is any transaction, other than a sale, that transfers 
Hawaiian home lands from DHHL to another entity and in which DHHL 
receives the other entity's land as Hawaiian home lands. A land 
exchange can involve trading Hawaiian home lands for private land, but 
it can also involve trading land between DHHL and State or Federal 
agencies.
    Market value means the most probable price in cash, or terms 
equivalent to cash, that lands or interests in lands should bring in a 
competitive and open market under all conditions requisite to a fair 
sale, where the buyer and seller each acts prudently and knowledgeably, 
and the price is not affected by undue influence.
    Native Hawaiian or native Hawaiian has the same meaning as that 
term defined under section 201(a) of the Hawaiian Homes Commission Act.
    Office of Valuation Services (OVS) means the Office with real 
estate appraisal functions within the Office of the Assistant 
Secretary--Policy, Management, and Budget of the Department of the 
Interior.
    Outstanding interests means rights or interests in property 
involved in a land

[[Page 27137]]

exchange held by an entity other than a party to the exchange.
    Secretary means the Secretary of the Interior or the individual to 
whom the authority and responsibilities of the Secretary have been 
delegated.


Sec.  47.15  What laws apply to exchanges made under this part?

    (a) DHHL may only exchange land under the authority of the HHCA in 
conformity with the HHLRA.
    (b) When DHHL makes any land exchange, the following laws and 
regulations constitute a partial list of applicable laws and 
regulations:

----------------------------------------------------------------------------------------------------------------
            Legislation or regulation                                        Citation
----------------------------------------------------------------------------------------------------------------
(1) The National Historic Preservation Act, 1966  16 U.S.C. 470 et seq.
(2) Implementing regulations for the National     36 CFR part 800
 Historic Preservation Act.
(3) Section 3 of the Native American Graves       25 U.S.C. 3002
 Protection and Repatriation Act (NAGPRA).
(4) Implementing regulations for the Native       43 CFR part 10
 American Graves Protection and Repatriation Act.
(5) The National Environmental Policy Act, 1969   42 U.S.C. 4371 et seq.
 (NEPA).
(6) Implementing regulations for NEPA...........  40 CFR parts 1500-1508; 43 CFR part 46
(7) The State of Hawai`i Admission Act..........  73 Stat. 4, Public Law 86-3
(8) Hawaiian Homes Commission Act, 1920, as       42 Stat. 108
 amended.
(9) Hawaiian Home Lands Recovery Act, 1995......  109 Stat. 537, Public Law 104-42
(10) Comprehensive Environmental Response,        42 U.S.C. 9601 et seq.
 Compensation, and Liability Act (CERCLA).
(11) Implementing regulations for CERCLA........  40 CFR part 312
----------------------------------------------------------------------------------------------------------------

    (c) No new legal rights or obligations are created through listing 
applicable laws and regulatory provisions in this section.

Subpart A--The Exchange Process


Sec.  47.20  What factors will the Secretary consider in analyzing a 
land exchange?

    The Secretary may approve an exchange only after making a 
determination that the exchange will advance the interests of the 
beneficiaries. In considering whether a land exchange will advance the 
interests of the beneficiaries, the Secretary will evaluate the extent 
to which it will:
    (a) Achieve better management of Hawaiian home lands;
    (b) Meet the needs of HHCA beneficiaries and their economic 
circumstances by promoting:
    (1) Homesteading opportunities,
    (2) Economic self-sufficiency, and,
    (3) Social well-being;
    (c) Promote development of Hawaiian home lands for residential, 
agricultural, and pastoral use;
    (d) Protect cultural resources and watersheds;
    (e) Consolidate lands or interests in lands, such as agricultural 
and timber interests, for more logical and efficient management and 
development;
    (f) Expand homestead communities;
    (g) Accommodate land use authorizations;
    (h) Address HHCA beneficiary needs; and
    (i) Advance other identifiable interests of the beneficiaries 
consistent with the HHCA.


Sec.  47.30  When does a land exchange advance the interests of the 
beneficiaries?

    A determination that an exchange advances the interests of the 
beneficiaries must find that:
    (a) The exchange supports perpetuation and administration of 
Hawaiian home lands;
    (b) The interests of the beneficiaries in obtaining non-Hawaiian 
home lands exceeds the interests of the beneficiaries in retaining the 
Hawaiian home lands proposed for the exchange, based on an evaluation 
of the factors in Sec.  47.20; and
    (c) The intended use of the conveyed Hawaiian home lands will not 
significantly conflict with the beneficiaries' interests in adjacent 
Hawaiian home lands.


Sec.  47.35  Must lands exchanged be of equal value?

    Hawaiian home lands to be exchanged must be of equal or lesser 
value than the lands to be received in the exchange, as determined by 
the appraisal. Once the market value is established by an approved 
appraisal, an administrative determination as to the equity of the 
exchange can be made based on the market value reflected in the 
approved appraisal.


Sec.  47.40  How must properties be described?

    The description of properties involved in a land exchange must be 
either:
    (a) Based upon a survey completed in accordance with the Public 
Land Survey System laws and standards of the United States; or
    (b) If Public Land Survey System laws and standards cannot be 
applied, based upon a survey that both:
    (1) Uses other means prescribed or allowed by applicable law; and
    (2) Clearly describes the property and allows it to be easily 
located.


Sec.  47.45  How does the exchange process work?

    (a) The Secretary recommends the parties prepare a land exchange 
proposal in accordance with Sec.  47.50. The Secretary also recommends 
the DHHL and the non-DHHL party in the exchange meet with the 
Department before finalizing a land exchange proposal and signing an 
agreement to initiate the land exchange to informally discuss:
    (1) The review and processing procedures for Hawaiian home lands 
exchanges;
    (2) Potential issues involved that may require more consideration; 
or
    (3) Any other matter that may make the proposal more complete 
before submission to us.
    (b) Whether or not a land exchange proposal is completed, the DHHL 
initiates the exchange by preparing the documentation, conducting 
appropriate studies, and submitting them to the Secretary in accordance 
with Sec.  47.60.
    (c) Upon completing the review of the final land exchange packet 
under Sec.  47.60, the Secretary will issue a Notice of Decision 
announcing the approval or disapproval of the exchange.
    (d) If the Secretary approves an exchange, title will transfer in 
accordance with State law.


Sec.  47.50  What should DHHL include in a land exchange proposal for 
the Secretary?

    (a) A land exchange proposal should include the following 
documentation:

[[Page 27138]]



------------------------------------------------------------------------
 The proposal should include . . .        that should contain . . .
------------------------------------------------------------------------
(1) Identifying information.......  (i) The identity of the parties
                                     involved in the proposed exchange;
                                     and
                                    (ii) The status of their ownership
                                     of the properties in the exchange,
                                     or their ability to provide title
                                     to the properties.
(2) Descriptive information.......  A legal description of:
                                    (i) The land considered for the
                                     exchange; and
                                    (ii) The appurtenant rights proposed
                                     to be exchanged or reserved.
(3) Authorized use information....  (i) Any authorized uses including
                                     grants, permits, easements, or
                                     leases; and
                                    (ii) Any known unauthorized uses,
                                     outstanding interests, exceptions,
                                     adverse claims, covenants,
                                     restrictions, title defects or
                                     encumbrances.
(4) A time schedule for completing  Expected dates of significant
 the exchange.                       transactions or milestones.
(5) Assignment of responsibilities  Responsibilities for:
                                    (i) Performance of required actions;
                                     and
                                    (ii) Costs associated with the
                                     proposed exchange.
(6) Hazardous substance             Notice of:
 information.
                                    (i) Any known release, storage, or
                                     disposal of hazardous substances on
                                     non-DHHL properties in the
                                     exchange;
                                    (ii) Any commitments regarding
                                     responsibility for removal or
                                     remedial actions concerning
                                     hazardous substances on non-DHHL
                                     properties; and
                                    (iii) All terms and conditions
                                     regarding hazardous substances on
                                     non-DHHL properties.
(7) Grants of permission by each    Permission to enter the properties
 party to the other.                 for the purpose of conducting
                                     physical examination and studies in
                                     preparation for the exchange.
                                     Written permission to appraise the
                                     properties should also be included.
(8) Three statements..............  Details of:
                                    (i) Arrangements for relocating
                                     tenants occupying the DHHL and non-
                                     DHHL properties involved in the
                                     exchange;
                                    (ii) How the land exchange proposal
                                     complies with the HHCA and HHLRA;
                                     and
                                    (iii) How the documents of
                                     conveyance will be exchanged once
                                     the Secretary has approved the
                                     exchange.
------------------------------------------------------------------------

    (b) When the parties to the exchange agree to proceed with the land 
exchange proposal, they may sign an agreement that DHHL will initiate 
the exchange.


Sec.  47.55  What are the minimum requirements for appraisals used in a 
land exchange?

    (a) The following table shows the steps in the appraisal process.

------------------------------------------------------------------------
      Appraisal process step                    Requirements
------------------------------------------------------------------------
(1) The parties to the exchange     (i) The parties must arrange for
 must arrange for appraisals.        appraisals within 90 days after
                                     executing the agreement to initiate
                                     the land exchange, unless the
                                     parties agree to another schedule.
                                    (ii) The parties must give the
                                     appraiser the land exchange
                                     proposal, if any, and the agreement
                                     to initiate the land exchange, and
                                     any attachments and amendments.
                                    (iii) The DHHL is encouraged to
                                     request assistance from the
                                     Department's Office of Valuation
                                     Services (OVS). OVS can provide
                                     valuation services to DHHL,
                                     including appraisal, appraisal
                                     review, and appraisal consultation
                                     on a reimbursable basis. OVS is
                                     also available for post-facto
                                     program review to ensure that
                                     appraisals conducted by the State
                                     are in conformance with the Uniform
                                     Standards of Professional Appraisal
                                     Practice and the Uniform Appraisal
                                     Standards for Federal Land
                                     Acquisitions as appropriate.
(2) The qualified appraiser must    The appraiser must:
 provide an appraisal report.       (i) Meet the qualification
                                     requirements in paragraph (b) of
                                     this section;
                                    (ii) Produce a report that meets the
                                     qualifications in paragraph (c) of
                                     this section; and
                                    (iii) Complete the appraisal under
                                     the timeframe and terms negotiated
                                     with the parties in the exchange.
(3) The Secretary will review       The Secretary will evaluate the
 appraisal reports.                  reports using:
                                    (i) The Uniform Standards of
                                     Professional Appraisal Practice;
                                     and
                                    (ii) The Uniform Appraisal Standards
                                     for Federal Land Acquisitions.
------------------------------------------------------------------------

    (b) To be qualified under paragraph (a)(2) of this section, an 
appraiser must:
    (1) Be competent, reputable, impartial, and experienced in 
appraising property similar to the properties involved in the appraisal 
assignment; and
    (2) Be approved by the OVS, if required by the Department's Office 
of Native Hawaiian Relations.
    (3) Be licensed to perform appraisals in the State of Hawai'i 
unless a Federal employee whose position requires the performance of 
appraisal duties. Federal employees only need to be licensed in one 
State or territory to perform real estate appraisal duties as Federal 
employees in all States and territories.
    (c) Appraisal reports for the exchange must:
    (1) Be completed in accordance with the current edition of the 
Uniform Standards of Professional Appraisal Practice (USPAP) and the 
Uniform Appraisal Standards for Federal Land Acquisition (UASFLA); and
    (2) Include the estimated market value of Hawaiian home lands and 
non-Hawaiian home lands properties involved in the exchange.

[[Page 27139]]

Sec.  47.60  What documentation must DHHL submit to the Secretary in 
the land exchange packet?

    The documents in the exchange packet submitted to us for approval 
must include the following:

------------------------------------------------------------------------
   The packet must contain . . .           that must include . . .
------------------------------------------------------------------------
(a) Required statements...........  (1) A statement of approval for the
                                     exchange from the Commission;
                                    (2) A statement of compliance with
                                     the National Historic Preservation
                                     Act and, as appropriate, a cultural
                                     and historic property review;
                                    (3) An explanation of how the
                                     exchange will advance the interests
                                     of the beneficiaries;
                                    (4) A summary of any consultation
                                     with any beneficiaries that may
                                     have occurred; and
                                    (5) A statement of compliance with
                                     the Native American Graves
                                     Protection and Repatriation Act.
(b) Required analyses and reports.  (1) Environmental analyses and
                                     records sufficient to meet CERCLA,
                                     NEPA, and all other pertinent
                                     Federal environmental requirements;
                                    (2) Land appraisal reports and
                                     statements of qualification of the
                                     appraisers in accordance with Sec.
                                      47.55; and
                                    (3) If property conveyed is adjacent
                                     to Hawaiian home lands:
                                    (i) An analysis of intended use of
                                     the Hawaiian home lands conveyed;
                                    (ii) A finding that the intended use
                                     will not conflict with established
                                     management objectives on the
                                     adjacent Hawaiian home lands; and
                                    (4) A copy of the land exchange
                                     proposal, if any.
(c) Relevant legal documents......  (1) Any land exchange agreements
                                     entered into regarding the subject
                                     properties between DHHL and the non-
                                     DHHL party;
                                    (2) Evidence of title; and
                                    (3) Deeds signed by the parties,
                                     with a signature block for the
                                     Secretary of the Interior or our
                                     authorized representative to
                                     approve the transaction.
------------------------------------------------------------------------

Subpart B--Approval and Finalization


Sec.  47.65  When will the Secretary approve or disapprove the land 
exchange?

    On receipt of the complete land exchange packet from the 
Commission, the Secretary will approve or disapprove the exchange 
within 120 calendar days.
    (a) Before approving or disapproving the exchange, the Secretary 
will review all environmental analyses, appraisals, and all other 
supporting studies and requirements to determine whether the proposed 
exchange complies with applicable law and advances the interests of the 
beneficiaries.
    (b) The Secretary may consult with the beneficiaries when making a 
determination if a land exchange advances the interests of the 
beneficiaries.
    (c) After approving or disapproving an exchange, the Secretary will 
notify DHHL, the Commission, and other officials as required by section 
205(b)(2) of the HHLRA.


Sec.  47.70  How does DHHL complete the exchange once approved?

    (a) The DHHL completes the exchange in accordance with the 
requirements of State law.
    (b) DHHL shall provide a title report to us as evidence of the 
completed exchange.

PART 48--AMENDMENTS TO THE HAWAIIAN HOMES COMMISSION ACT

Sec.
48.5 What is the purpose of this part?
48.6 What definitions apply to terms used in this part?
48.10 What is the Secretary's role in reviewing proposed amendments 
to the HHCA?
48.15 What are the State's responsibilities in proposing amendments?
48.20 How does the Secretary determine if the State is seeking to 
amend Federal law?
48.25 How does the Secretary determine if the proposed amendment 
decreases the benefits to beneficiaries of Hawaiian home lands?
48.30 How does the Secretary determine if Congressional approval is 
unnecessary?
48.35 When must the Secretary determine if the proposed amendment 
requires Congressional approval?
48.40 What notification will the Secretary provide?
48.45 When is a proposed amendment deemed effective?
48.50 Can the State of Hawai`i amend the Hawaiian Homes Commission 
Act without Secretarial review?

    Authority:  State of Hawai`i Admission Act, 73 Stat. 4, chapter 
339, approved March 18, 1959; Hawaiian Homes Commission Act, 1920, 
42 Stat. 108 et seq., chapter 42; Hawaiian Home Lands Recovery Act, 
1995, 109 Stat. 537; 5 U.S.C. 301; 25 U.S.C. 2 and 9; 43 U.S.C. 
1457; 112 Departmental Manual 28.


Sec.  48.5  What is the purpose of this part?

    (a) This part sets forth the policies and procedures for:
    (1) Review by the Secretary of proposed amendments to the Hawaiian 
Homes Commission Act by the State of Hawai`i; and
    (2) Determination by the Secretary whether the proposed amendment 
requires congressional approval.
    (b) This part implements requirements of the Hawaiian Homes 
Commission Act, the State of Hawai`i Admission Act, 1959, and the 
Hawaiian Home Lands Recovery Act, 1995.


Sec.  48.6  What definitions apply to terms used in this part?

    As used in this part, the following terms have the meanings given 
in this section.
    Beneficiaries means ``native Hawaiian(s)'' as that term is defined 
under section 201(a) of the Hawaiian Homes Commission Act.
    Chairman means the Chairman of the Hawaiian Homes Commission 
designated under section 202 of the Hawaiian Homes Commission Act.
    Consultation means an open discussion process that allows 
interested parties to address potential issues, changes, or actions. 
Consultation does not require formal face-to-face meetings. However, it 
does require dialogue (verbal, electronic, or printed)

[[Page 27140]]

or at least a good faith effort to engage in dialogue with the 
beneficiaries.
    DHHL or Department of Hawaiian Home Lands means the department 
established by the State of Hawai`i under sections 26-4 and 26-17 of 
the Hawai`i Revised Statutes to administer the Hawaiian Homes 
Commission Act. This department assumes the authorities and 
responsibilities of the Hawaiian Homes Commission and the Commission 
serves as the department's executive board under amended section 202 of 
the Hawaiian Homes Commission Act.
    HHCA or Hawaiian Homes Commission Act means the Hawaiian Homes 
Commission Act, 1920, 42 Stat. 108 et seq., chapter 42, as amended.
    HHLRA or Hawaiian Home Lands Recovery Act means the Hawaiian Home 
Lands Recovery Act, 1995, 109 Stat. 537, Public Law 104-42.
    Hawaiian home lands means all trust lands given the status of 
Hawaiian home lands under section 204 of the Hawaiian Homes Commission 
Act and those lands obtained through approval under part 47, Land 
Exchange Procedures, by the DHHL, and as directed by Congress.
    Lessee means either a:
    (1) Beneficiary who has been awarded a lease under section 207(a) 
of the Hawaiian Homes Commission Act;
    (2) Transferee lessee under section 208(5) of the Hawaiian Homes 
Commission Act; or
    (3) Successor lessee under section 209 of the Hawaiian Homes 
Commission Act.
    Secretary means the Secretary of the Interior or a designated 
employee.
    Special Trust Funds means the Hawaiian home-loan fund, the Hawaiian 
home-operating fund, and the Hawaiian home-development fund as defined 
under section 213 of the Hawaiian Homes Commission Act.


Sec.  48.10  What is the Secretary's role in reviewing proposed 
amendments to the HHCA?

    (a) The Secretary must review proposed amendments to the Hawaiian 
Homes Commission Act (HHCA) by the State of Hawai`i to determine 
whether the proposed amendment requires approval of Congress.
    (b) The Secretary will notify the Chairman and Congress of this 
determination, and if approval is required, submit to Congress the 
documents required by Sec.  48.35(b).


Sec.  48.15  What are the State's responsibilities in proposing 
amendments?

    (a) Not later than 120 days after the State approves a proposed 
amendment to the HHCA, the Chairman must submit to the Secretary a 
clear and complete:
    (1) Copy of the proposed amendment;
    (2) Description of the nature of the change proposed by the 
proposed amendment; and,
    (3) Opinion regarding whether the proposed amendment requires the 
approval of Congress.
    (b) The following information must also be submitted:
    (1) A description of the proposed amendment, including why the 
proposed amendment advances the interests of the beneficiaries;
    (2) All testimony and correspondence from the Director of the 
Department of Hawaiian Home Lands, Hawaiian Homes Commissioners, and 
Homestead Associations, providing views on the proposed amendment;
    (3) An analysis of the law and policy of the proposed amendment by 
the Department of Hawaiian Home Lands and the Hawaiian Homes 
Commission;
    (4) Documentation of the dates and number of hearings held on the 
measure, and a copy of all testimony provided or submitted at each 
hearing;
    (5) Copies of all committee reports and other legislative history, 
including prior versions of the proposed amendment;
    (6) Final vote totals by the Commission and the legislature on the 
proposed amendment forwarded to the Secretary of the Interior;
    (7) Summaries of all outreach or consultations conducted with the 
beneficiaries regarding the proposed amendment; and
    (8) Other additional information that the State believes may assist 
in the review of the proposed amendment.


Sec.  48.20  How does the Secretary determine if the State is seeking 
to amend Federal law?

    The Secretary will determine that Congressional approval is 
required if the proposed amendment does any of the following:
    (a) Decreases benefits to the beneficiaries of Hawaiian home lands;
    (b) Reduces or impairs the Special Trust Funds;
    (c) Allows for additional encumbrances to be placed on Hawaiian 
home lands by officers other than those charged with the administration 
of the HHCA;
    (d) Changes the qualifications of who may be a lessee;
    (e) Allows the use of proceeds and income from the Hawaiian home 
lands for purposes other than carrying out the provisions of the HHCA; 
or
    (f) Amends a section other than sections 202, 213, 219, 220, 222, 
224, or 225, or other provisions relating to administration, or 
paragraph (2) of section 204, section 206, or 212 or other provisions 
relating to the powers and duties of officers other than those charged 
with the administration of the HHCA.


Sec.  48.25  How does the Secretary determine if the proposed amendment 
decreases the benefits to beneficiaries of Hawaiian home lands?

    The Secretary will determine if the proposed amendment decreases 
the benefits to the beneficiaries, now or in the future, by weighing 
the answers to the following questions:
    (a) How would the proposed amendment advance or otherwise impact 
current lessees of Hawaiian home lands?
    (b) How would the proposed amendment advance or otherwise impact 
HHCA beneficiaries currently on a waiting list for a Hawaiian home 
lands lease?
    (c) How would the proposed amendment advance or otherwise impact 
HHCA beneficiaries who have not yet applied for a Hawaiian home lands 
lease?
    (d) If the interests of the beneficiaries who have not been awarded 
a Hawaiian home lands lease and the lessees differ, how does the 
proposed amendment weigh the interests of HHCA beneficiaries who have 
not been awarded a Hawaiian home lands lease with the interests of 
Hawaiian home lands lessees?
    (e) If the interests of the beneficiaries who have not been awarded 
a Hawaiian home lands lease and the lessees differ, do the benefits to 
the lessees outweigh any detriment to the beneficiaries who have not 
been awarded a Hawaiian home lands lease?
    (f) If the interests of the beneficiaries differ from the interests 
of the lessees, do the benefits to the beneficiaries outweigh any 
detriment to the lessees?


Sec.  48.30  How does the Secretary determine if Congressional approval 
is unnecessary?

    The Secretary will determine that Congressional approval is 
unnecessary if the proposed amendment meets none of the circumstances 
in Sec.  48.20.


Sec.  48.35  When must the Secretary determine if the proposed 
amendment requires Congressional approval?

    The Secretary will review the documents submitted by the Chairman, 
and if they meet the requirements of Sec.  48.15, the Secretary will 
determine within 60 days after receiving them if the proposed amendment 
requires Congressional approval.

[[Page 27141]]

Sec.  48.40  What notification will the Secretary provide?

    (a) If the Secretary determines that Congressional approval of the 
proposed amendment is unnecessary, the Secretary will:
    (1) Notify the Chairmen of the Senate Committee on Energy and 
Natural Resources and of the House Committee on Natural Resources; and
    (2) Include, if appropriate, an opinion on whether the proposed 
amendment advances the interests of the beneficiaries.
    (b) If the Secretary determines that Congressional approval of the 
proposed amendment is required, the Secretary will notify the Chairmen 
of the Senate Committee on Energy and Natural Resources and of the 
House Committee on Natural Resources. The Secretary will also submit to 
the Committees the following:
    (1) A draft joint resolution approving the proposed amendment;
    (2) A description of the change made by the proposed amendment and 
an explanation of how the proposed amendment advances the interests of 
the beneficiaries;
    (3) A comparison of the existing law with the proposed amendment;
    (4) A recommendation on the advisability of approving the proposed 
amendment;
    (5) All documentation concerning the proposed amendment received 
from the Chairman; and
    (6) All documentation concerning the proposed amendment received 
from the beneficiaries.


Sec.  48.45  When is a proposed amendment deemed effective?

    (a) If the Secretary determines that a proposed amendment meets 
none of the criteria in Sec.  48.20, the effective date of the proposed 
amendment is the date of the notification letter to the Committee 
Chairmen.
    (b) If the Secretary determines that the proposed amendment 
requires congressional approval then the effective date of the proposed 
amendment is the date that Congress' approval becomes law.


Sec.  48.50  Can the State of Hawai`i amend the Hawaiian Homes 
Commission Act without Secretarial review?

    The Secretary of the Interior must review all proposed amendments 
to the Hawaiian Homes Commission Act. Any proposed amendments to any 
terms or provisions of the Hawaiian Homes Commission Act by the State 
must also specifically state that the proposed amendment proposes to 
amend the Hawaiian Homes Commission Act. Any state enactment that 
impacts any of the factors in Sec.  48.20 shall have no effect on the 
provisions of the HHCA or administration of the trust, except pursuant 
to this part.
[FR Doc. 2015-11401 Filed 5-8-15; 4:15 pm]
 BILLING CODE 4310-93-P



                                                    27134                    Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules

                                                    standards are technical standards (e.g.,                Commission Act. It would facilitate the               processes by which the general welfare
                                                    materials specifications, test methods,                 goal of the rehabilitation of the Native              and conditions of native Hawaiians are
                                                    sampling procedures, and business                       Hawaiian community, including the                     thereby improved and perpetuated.’’ Id.
                                                    practices) that are developed or adopted                return of native Hawaiians to the land,               The Department of the Interior
                                                    by voluntary consensus standards                        consistent with the Hawaiian Homes                    interprets the term ‘‘rehabilitation’’ to
                                                    bodies. NTTAA directs EPA to provide                    Commission Act, the State of Hawai‘i                  include political, cultural and social
                                                    Congress, through OMB, explanations                     Admission Act, and the Hawaiian Home                  reorganization that would facilitate the
                                                    when the Agency decides not to use                      Lands Recovery Act. The rule clarifies                stated goals of rehabilitation.1 By
                                                    available and applicable voluntary                      the land exchange process, the                        providing a clear process for the
                                                    consensus standards.                                    documents required, and the respective                Department’s review and approval of
                                                      The EPA believes that this proposed                   responsibilities of the Department of the             land exchanges and HHCA
                                                    action is not subject to requirements of                Interior, the Department of Hawaiian                  amendments, this regulation will further
                                                    Section 12(d) of NTTAA because                          Home Lands, and other entities engaged                the goals of the HHCA, including
                                                    application of those requirements would                 in land exchanges of Hawaiian home                    rehabilitation.
                                                    be inconsistent with the Clean Air Act.                 lands. It also clarifies the documents                  In 1959, Congress enacted the Hawai‘i
                                                                                                            required and the responsibilities of the              Admission Act, 73 Stat. 4, to admit the
                                                    J. Executive Order 12898: Federal                                                                             State of Hawai‘i into the United States.
                                                                                                            Secretary of the Interior in the approval
                                                    Actions To Address Environmental                                                                              In compliance with the Hawai‘i
                                                                                                            process for proposed amendments by
                                                    Justice in Minority Populations and                                                                           Admission Act, and as a compact
                                                                                                            the State of Hawai‘i to the Hawaiian
                                                    Low-Income Population                                                                                         between the State of Hawai‘i and the
                                                                                                            Homes Commission Act, 1920, as
                                                      Executive Order 12898 (59 FR 7629                     amended.                                              United States relating to the
                                                    (Feb. 16, 1994)) establishes federal                    DATES: Comments must be submitted on                  management and disposition of the
                                                    executive policy on environmental                       or before July 13, 2015.                              Hawaiian home lands, the State of
                                                    justice. Its main provision directs                                                                           Hawai‘i adopted the HHCA, as
                                                                                                            ADDRESSES: You may submit comments
                                                    federal agencies, to the greatest extent                                                                      amended, as a law of the State through
                                                                                                            on the rulemaking by either of the
                                                    practicable and permitted by law, to                                                                          Article XII of the Constitution of the
                                                                                                            methods listed below. Please use
                                                    make environmental justice part of their                                                                      State. Because Congress in the HHCA
                                                                                                            Regulation Identifier Number 1090–
                                                    mission by identifying and addressing,                                                                        section 223 reserved the right to alter,
                                                                                                            AA98 in your message.
                                                    as appropriate, disproportionately high                   1. Federal eRulemaking Portal:                      amend, or repeal Title 2 of the HHCA,
                                                    and adverse human health or                             http://www.regulations.gov. Follow the                section 4 of the Hawai‘i Admission Act
                                                    environmental effects of their programs,                instructions on the Web site for                      provides that the HHCA is subject to
                                                    policies, and activities on minority                    submitting comments.                                  amendment or repeal by the State of
                                                    populations and low-income                                2. U.S. mail, courier, or hand delivery:            Hawai‘i only with the consent of the
                                                    populations in the United States.                       Office of Native Hawaiian Relations,                  United States. Recognizing, however,
                                                      EPA lacks the discretionary authority                 Department of the Interior, 1849 C Street             that it was granting the State
                                                    to address environmental justice in this                NW., Washington, DC 20240.                            administrative authority, Congress in
                                                    proposed rulemaking.                                                                                          section 4 also provided exceptions
                                                                                                            FOR FURTHER INFORMATION CONTACT:
                                                                                                            Ka‘i‘ini Kimo Kaloi, Director, Office of              within which the State could amend
                                                    List of Subjects in 40 CFR Part 52
                                                                                                            Native Hawaiian Relations, telephone                  certain administrative provisions of the
                                                      Environmental protection, Air                                                                               HHCA without the consent of the
                                                    pollution control, Incorporation by                     (202) 208–7462.
                                                                                                                                                                  United States.
                                                    reference, Intergovernmental relations,                 SUPPLEMENTARY INFORMATION:                              During the territorial period of
                                                    Ozone, Lead, Reporting and                              I. Background                                         Hawai‘i, the HHCA was included in the
                                                    recordkeeping requirements.                                                                                   compilation of the Revised Laws of
                                                                                                               In 1921, Congress enacted the
                                                      Dated: May 1, 2015.                                   Hawaiian Homes Commission Act                         Hawai‘i. Following Hawai‘i’s statehood,
                                                    Jared Blumenfeld,                                       (HHCA), 42 Stat. 108, to provide a                    the HHCA was not repealed and
                                                                                                            homesteading program for native                       remains in effect with elements of both
                                                    Regional Administrator, Region IX.
                                                                                                            Hawaiians by placing approximately                    Federal and State law. The compilation
                                                    [FR Doc. 2015–11340 Filed 5–11–15; 8:45 am]
                                                                                                            200,000 acres of land (known as                       of the HHCA was removed from the text
                                                    BILLING CODE 6560–50–P
                                                                                                            Hawaiian home lands) into trust. The                  of the United States Code and inserted
                                                                                                            HHCA and the Hawaiian Home Lands                      into a note in the Code, recognizing the
                                                                                                            Trust are administered by the                         State’s authority to amend provisions of
                                                    DEPARTMENT OF THE INTERIOR                                                                                    the HHCA that do not alter the
                                                                                                            Department of Hawaiian Home Lands
                                                                                                            (DHHL), an agency of the State of                     responsibilities of the United States or
                                                    Office of the Secretary                                                                                       infringe upon its interests or the
                                                                                                            Hawai‘i. The HHCA provides the DHHL
                                                                                                            the authority to propose to the Secretary             interests of the beneficiaries.
                                                    43 CFR Parts 47 and 48
                                                                                                            of the Interior the exchange of Hawaiian                 1 See generally Hearings on the Rehabilitation and
                                                    RIN 1090–AA98
                                                                                                            home lands for land privately or                      Colonization of Hawaiians and Other Proposed
                                                    Land Exchange Procedures and                            publicly owned in furtherance of the                  Amendments to the Organic Act of the Territory of
                                                                                                            purposes of the HHCA.
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                                                                                                                                                                  Hawai’i before the House Committee on the
                                                    Procedures To Amend the Hawaiian                                                                              Territories, H.R. Rep. No. 839, 66th Cong., 2d Sess.,
                                                                                                               The Hawaiian Homes Commission
                                                    Homes Commission Act, 1920                                                                                    at 4 (1920) (Sen. John H. Wise testified, ‘‘The
                                                                                                            Act, among other things, created a series             Hawaiian people are a farming people and
                                                    AGENCY:    Office of the Secretary, Interior.           of funds HHCA section 213, 42 Stat. 108               fishermen, out-of-door people, and [being] frozen
                                                    ACTION:   Proposed rule.                                (as amended). The intent of one of these              out of their lands . . . is one of the reasons why
                                                                                                            funds is the ‘‘rehabilitation of native               the Hawaiian people are dying. Now, the only way
                                                                                                                                                                  to save them, I contend, is to take them back to the
                                                    SUMMARY:  This rule would remove                        Hawaiians,’’ which includes the                       lands and give them the mode of living that their
                                                    ambiguities the State of Hawai‘i faces in               rehabilitation of ‘‘the educational,                  ancestors were accustomed to and in that way
                                                    administration of the Hawaiian Homes                    economic, political, social, and cultural             rehabilitate them.’’).



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                                                                             Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules                                            27135

                                                      The HHCA is a compound of                             and least burdensome tools for                        between the Federal and state
                                                    interdependent Federal and State law.                   achieving regulatory ends. The                        governments. The Secretary of the
                                                    Congress enacted the Hawaiian Home                      executive order directs agencies to                   Department of the Interior has oversight
                                                    Lands Recovery Act, 1995, (HHLRA),                      consider regulatory approaches that                   to ensure that land under the HHCA is
                                                    Public Law 104–42, 109 Stat. 357,                       reduce burdens and maintain flexibility               administered in a manner that advances
                                                    which provides that the Secretary of the                and freedom of choice for the public                  the interests of the beneficiaries. A
                                                    Interior shall determine whether a                      where these approaches are relevant,                  Federalism Assessment is not required.
                                                    proposed amendment to the HHCA                          feasible, and consistent with regulatory
                                                                                                                                                                  7. Civil Justice Reform (E.O. 12988)
                                                    requires the consent of the United States               objectives. E.O. 13563 emphasizes
                                                    under section 4 of the Hawai‘i                          further that regulations must be based                  In accordance with Executive Order
                                                    Admission Act. It is appropriately the                  on the best available science and that                12988, the Office of the Solicitor
                                                    function of the United States to ensure                 the rulemaking process must allow for                 determined that this proposed rule does
                                                    conformance with the limitations in the                 public participation and an open                      not unduly burden the judicial system
                                                    Admissions Act and protect the                          exchange of ideas. This proposed rule is              and meets the requirements of sections
                                                    integrity of this statutory framework.                  consistent with these requirements.                   3(a) and 3(b)(2) of the Order.
                                                      The HHLRA also clarified the role of
                                                                                                            2. Regulatory Flexibility Act                         8. Consultation With Indian Tribes (E.O.
                                                    the Secretary in the oversight of the
                                                    Hawaiian Home Lands Trust. Section                        The Department of the Interior                      13175)
                                                    204(a)(3) of the HHCA, in conjunction                   certifies that this proposed rule will not
                                                                                                            have a significant economic effect on a                 Under the criteria in Executive Order
                                                    with Section 205 of the HHLRA,
                                                                                                            substantial number of small entities                  13175, the Department evaluated this
                                                    requires the approval or disapproval of
                                                                                                            under the Regulatory Flexibility Act (5               proposed rule and determined that it
                                                    the Secretary of the Interior for the
                                                                                                            U.S.C. 601 et seq.).                                  has no potential effects on federally
                                                    exchange of Hawaiian home lands. The
                                                                                                                                                                  recognized Indian tribes. This proposed
                                                    HHLRA details the Secretary’s                           3. Small Business Regulatory                          rule does not have tribal implications
                                                    responsibilities to ensure that Hawaiian                Enforcement Fairness Act (SBREFA)                     that impose substantial direct
                                                    home lands are administered in a
                                                                                                               This is not a major rule under 5 U.S.C.            compliance costs on Indian Tribal
                                                    manner that advances the interests of
                                                                                                            804(2), the Small Business Regulatory                 governments.
                                                    the beneficiaries.
                                                      The HHLRA clarifies the scope of two                  Enforcement Fairness Act. This                        9. Paperwork Reduction Act
                                                    of the continuing responsibilities of the               proposed rule:
                                                    Federal Government with regard to the                      (a) Does not have an annual effect on                This proposed rule does not require
                                                    HHCA. It clarifies the role of the                      the economy of $100 million or more.                  an information collection from 10 or
                                                    Secretary in land exchanges and                            (b) Will not cause a major increase in             more parties and a submission under
                                                    requires the State of Hawai‘i to notify                 costs or prices for consumers,                        the Paperwork Reduction Act is not
                                                    the Secretary of the Interior of any                    individual industries, Federal, State, or             required. An OMB form 83–I is not
                                                    amendment it proposes to the HHCA                       local government agencies, or                         required.
                                                    and requires the Secretary to determine                 geographic regions.
                                                                                                               (c) Does not have significant adverse              10. National Environmental Policy Act
                                                    whether the State is proposing to amend
                                                    the Federal responsibilities under the                  effects on competition, employment,                      This proposed rule does not
                                                    HHCA, or infringe on Federal interests                  investment, productivity, innovation, or              constitute a major Federal action
                                                    or those of the beneficiaries, thus                     the ability of U.S.-based enterprises to              significantly affecting the quality of the
                                                    requiring Congress to approve the                       compete with foreign-based enterprises.               human environment. A detailed
                                                    proposed amendment. 43 CFR part 47 of                   4. Unfunded Mandates Reform Act                       statement under the National
                                                    the proposed regulations sets forth the                                                                       Environmental Policy Act, 1969, is not
                                                    Secretary’s process for approving or                       This proposed rule does not impose
                                                                                                                                                                  required. Under Departmental Manual
                                                    disapproving land exchanges of                          an unfunded mandate on State, local, or
                                                                                                                                                                  516 DM 2.3A(2), Section 1.10 of 516 DM
                                                    Hawaiian home lands conducted by                        tribal governments or the private sector
                                                                                                                                                                  2, Appendix 1 excludes from
                                                    DHHL under the HHCA and HHLRA. 43                       of more than $100 million per year. The
                                                                                                                                                                  documentation in an environmental
                                                    CFR part 48 of the proposed regulations                 proposed rule does not have a
                                                                                                                                                                  assessment or impact statement
                                                    establishes the review and approval                     significant or unique effect on State,
                                                                                                                                                                  ‘‘policies, directives, regulations and
                                                    process for State of Hawai‘i proposed                   local or tribal governments or the
                                                                                                                                                                  guidelines of an administrative,
                                                    amendments to the HHCA.                                 private sector. A statement containing
                                                                                                                                                                  financial, legal, technical or procedural
                                                                                                            the information required by the
                                                    II. Summary of Impacts                                                                                        nature; or the environmental effects of
                                                                                                            Unfunded Mandates Reform Act (2
                                                                                                                                                                  which are too broad, speculative or
                                                    1. Regulatory Planning and Review                       U.S.C. 1531 et seq.) is not required.
                                                                                                                                                                  conjectural to lend themselves to
                                                    (Executive Orders 12866 and 13563.)                     5. Takings (E.O. 12630)                               meaningful analysis and will be subject
                                                       Executive Order 12866 provides that                    In accordance with Executive Order                  later to the NEPA process, either
                                                    the Office of Information and Regulatory                12630, the rule does not have significant             collectively or case-by-case.’’
                                                    Affairs will review all significant rules.              takings implications. A takings                       11. Effects on the Energy Supply (E.O.
                                                    The Office of Information and
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                                                                                                            implication assessment is not required.               13211)
                                                    Regulatory Affairs determined that this
                                                    rule is not significant.                                6. Federalism (E.O. 13132)                               This proposed rule is not a significant
                                                       Executive Order 13563 reaffirms the                    In accordance with Executive Order                  energy action under the definition in
                                                    principles of E.O. 12866 while calling                  13132, the proposed rule does not have                Executive Order 13211. A Statement of
                                                    for improvements in the nation’s                        sufficient federalism implications to                 Energy Effects is not required. This
                                                    regulatory system to promote                            warrant the preparation of a Federalism               proposed rule will not have a significant
                                                    predictability, to reduce uncertainty,                  Assessment. It would not substantially                effect on the nation’s energy supply,
                                                    and to use the best, most innovative,                   and directly affect the relationship                  distribution, or use.


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                                                    27136                    Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules

                                                    12. Clarity of This Regulation                          47.30 When does a land exchange advance               or at least a good faith effort to engage
                                                                                                                the interests of the beneficiaries?               in dialogue between the DHHL and the
                                                       The Department is required by                        47.35 Must lands exchanged be of equal
                                                    Executive Orders 12866 and 12988 and                                                                          beneficiaries, consideration of their
                                                                                                                value?
                                                    by the Presidential Memorandum of                                                                             views, and, where feasible, seek
                                                                                                            47.40 How must properties be described?
                                                    June 1, 1998, to write all rules in plain               47.45 How does the exchange process                   agreement with the beneficiaries when
                                                    language. This means that each rule the                     work?                                             engaged in the land exchange process.
                                                    Department publishes must:                              47.50 What should DHHL include in a land                DHHL or Department of Hawaiian
                                                       (a) Be logically organized;                              exchange proposal for the Secretary?              Home Lands means the department
                                                       (b) Use the active voice to address                  47.55 What are the minimum requirements               established by the State of Hawai‘i
                                                    readers directly;                                           for appraisals used in a land exchange?           under sections 26–4 and 26–17 of the
                                                       (c) Use clear language rather than                   47.60 What documentation must DHHL                    Hawai‘i Revised Statutes to administer
                                                                                                                submit to the Secretary in the land               the Hawaiian Homes Commission Act.
                                                    jargon;                                                     exchange packet?
                                                       (d) Be divided into short sections and                                                                     This department assumes the authorities
                                                    sentences; and                                          Subpart B—Approval and Finalization                   and responsibilities of the Hawaiian
                                                       (e) Use lists and tables wherever                    47.65 When will the Secretary approve or              Homes Commission and the
                                                    possible.                                                   disapprove the land exchange?                     Commission serves as the department’s
                                                       If you feel that the Department did not              47.70 How does DHHL complete the                      executive board under amended section
                                                    meet these requirements, please send                        exchange once approved?                           202 of the Hawaiian Homes Commission
                                                    comments by one of the methods listed                     Authority: State of Hawai‘i Admission               Act.
                                                    in the ADDRESSES section. To better help                Act, 73 Stat. 4, chapter 339, approved March            Hawaiian home lands means all trust
                                                    the Department revise the rule, your                    18, 1959; Hawaiian Homes Commission Act,              lands given the status of Hawaiian home
                                                    comments should be as specific as                       1920, as amended, Act of July 9, 1921,                lands under section 204 of the Hawaiian
                                                    possible. For example, you should tell                  chapter 42, 42 Stat. 108; Hawaiian Home               Homes Commission Act, and those
                                                    us the numbers of the sections or                       Lands Recovery Act, 1995, 109 Stat. 537,              lands obtained through approval under
                                                    paragraphs that you find unclear, which                 Public Law 104–42; 5 U.S.C. 301; 25 U.S.C.            this part, and as directed by Congress.
                                                                                                            2 and 9; 43 U.S.C. 1457; 112 Departmental
                                                    sections or sentences are too long, the                                                                         Hazardous substances means those
                                                                                                            Manual 28.
                                                    sections where you feel lists or tables                                                                       substances designated under
                                                    would be useful, etc.                                   § 47.5   What is the purpose of this part?            Environmental Protection Agency
                                                                                                              This part sets forth the procedures for             regulations at 40 CFR part 302.
                                                    13. Public Availability of Comments                                                                             HHCA or Hawaiian Homes
                                                                                                            conducting land exchanges of Hawaiian
                                                      Before including your address, phone                  home lands authorized by the Hawaiian                 Commission Act means the Hawaiian
                                                    number, email address, or other                         Homes Commission Act (HHCA), 1920,                    Homes Commission Act, 1920, Act of
                                                    personal identifying information in your                as amended.                                           July 9, 1921, chapter 42, 42 Stat. 108, as
                                                    comment, you should be aware that                                                                             amended.
                                                    your entire comment—including your                      § 47.10 What definitions apply to terms                 HHLRA or Hawaiian Home Lands
                                                    personal identifying information—may                    used in this part?                                    Recovery Act means the Hawaiian Home
                                                    be made publicly available at any time.                    As used in this part, the following                Lands Recovery Act, 1995, Public Law
                                                    While you can ask the Department in                     terms have the meanings given in this                 104–42, 109 Stat. 357.
                                                    your comment to withhold your                           section.                                                 Land exchange is any transaction,
                                                    personal identifying information from                      Appraisal or Appraisal report means                other than a sale, that transfers
                                                    public review, the Department cannot                    a written statement independently and                 Hawaiian home lands from DHHL to
                                                    guarantee that it will be able to do so.                impartially prepared by a qualified                   another entity and in which DHHL
                                                                                                            appraiser setting forth an opinion as to              receives the other entity’s land as
                                                    List of Subjects in 43 CFR Parts 47 and                 the market value of the lands or                      Hawaiian home lands. A land exchange
                                                    48                                                      interests in lands to be exchanged as of              can involve trading Hawaiian home
                                                      Hawaii, Intergovernmental programs,                   a specific date(s), supported by the                  lands for private land, but it can also
                                                    Land, State-Federal relations.                          presentation and analysis of relevant                 involve trading land between DHHL and
                                                      Dated: May 6, 2015.                                   market information.                                   State or Federal agencies.
                                                    Kristen J. Sarri,
                                                                                                               Beneficiaries means ‘‘native                          Market value means the most
                                                                                                            Hawaiian(s)’’ as that term is defined                 probable price in cash, or terms
                                                    Principal Deputy Assistant Secretary for
                                                    Policy, Management and Budget.                          under section 201(a) of the Hawaiian                  equivalent to cash, that lands or
                                                      For the reasons stated in the                         Homes Commission Act.                                 interests in lands should bring in a
                                                                                                               Chairman means the Chairman of the                 competitive and open market under all
                                                    preamble, the Department of the Interior
                                                                                                            Hawaiian Homes Commission                             conditions requisite to a fair sale, where
                                                    proposes to amend title 43 of the Code
                                                                                                            designated under section 202 of the                   the buyer and seller each acts prudently
                                                    of Federal Regulations by adding new
                                                                                                            Hawaiian Homes Commission Act.                        and knowledgeably, and the price is not
                                                    parts 47 and 48 as set forth below:                        Commission means the Hawaiian                      affected by undue influence.
                                                    PART 47—LAND EXCHANGE                                   Homes Commission established by                          Native Hawaiian or native Hawaiian
                                                    PROCEDURES                                              section 202 of the Hawaiian Homes                     has the same meaning as that term
                                                                                                            Commission Act, which also serves as                  defined under section 201(a) of the
                                                                                                            the executive board of the Department
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                                                    Sec.                                                                                                          Hawaiian Homes Commission Act.
                                                    47.5 What is the purpose of this part?                  of Hawaiian Homes Lands.                                 Office of Valuation Services (OVS)
                                                    47.10 What definitions apply to terms used                 Consultation means an open                         means the Office with real estate
                                                         in this part?                                      discussion process that allows                        appraisal functions within the Office of
                                                    47.15 What laws apply to exchanges made                 interested parties to address potential
                                                         under this part?
                                                                                                                                                                  the Assistant Secretary—Policy,
                                                                                                            issues, changes, or actions. Consultation             Management, and Budget of the
                                                    Subpart A—The Exchange Process                          does not require formal face to face                  Department of the Interior.
                                                    47.20 What factors will the Secretary                   meetings. However, it does require                       Outstanding interests means rights or
                                                        consider in analyzing a land exchange?              dialogue (verbal, electronic, or printed)             interests in property involved in a land


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                                                                                     Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules                                                                   27137

                                                    exchange held by an entity other than a                             § 47.15 What laws apply to exchanges                                  (b) When DHHL makes any land
                                                    party to the exchange.                                              made under this part?                                               exchange, the following laws and
                                                      Secretary means the Secretary of the                                                                                                  regulations constitute a partial list of
                                                                                                                          (a) DHHL may only exchange land
                                                    Interior or the individual to whom the                                                                                                  applicable laws and regulations:
                                                                                                                        under the authority of the HHCA in
                                                    authority and responsibilities of the
                                                                                                                        conformity with the HHLRA.
                                                    Secretary have been delegated.

                                                                                                              Legislation or regulation                                                                                Citation

                                                    (1)   The National Historic Preservation Act, 1966 .............................................................................................       16 U.S.C. 470 et seq.
                                                    (2)   Implementing regulations for the National Historic Preservation Act ..........................................................                   36 CFR part 800
                                                    (3)   Section 3 of the Native American Graves Protection and Repatriation Act (NAGPRA) ............................                                    25 U.S.C. 3002
                                                    (4)   Implementing regulations for the Native American Graves Protection and Repatriation Act .....................                                    43 CFR part 10
                                                    (5)   The National Environmental Policy Act, 1969 (NEPA) ...............................................................................               42 U.S.C. 4371 et seq.
                                                    (6)   Implementing regulations for NEPA ............................................................................................................   40 CFR parts 1500–1508; 43 CFR
                                                                                                                                                                                                             part 46
                                                    (7) The State of Hawai‘i Admission Act ............................................................................................................    73 Stat. 4, Public Law 86–3
                                                    (8) Hawaiian Homes Commission Act, 1920, as amended ..............................................................................                     42 Stat. 108
                                                    (9) Hawaiian Home Lands Recovery Act, 1995 ...............................................................................................             109 Stat. 537, Public Law 104–42
                                                    (10) Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) .........................                                          42 U.S.C. 9601 et seq.
                                                    (11) Implementing regulations for CERCLA .....................................................................................................         40 CFR part 312



                                                      (c) No new legal rights or obligations                            § 47.30 When does a land exchange                                      (1) Uses other means prescribed or
                                                    are created through listing applicable                              advance the interests of the beneficiaries?                         allowed by applicable law; and
                                                    laws and regulatory provisions in this                                A determination that an exchange                                     (2) Clearly describes the property and
                                                    section.                                                            advances the interests of the                                       allows it to be easily located.
                                                                                                                        beneficiaries must find that:
                                                    Subpart A—The Exchange Process                                        (a) The exchange supports                                         § 47.45        How does the exchange process
                                                                                                                        perpetuation and administration of                                  work?
                                                    § 47.20 What factors will the Secretary                             Hawaiian home lands;                                                   (a) The Secretary recommends the
                                                    consider in analyzing a land exchange?
                                                                                                                          (b) The interests of the beneficiaries in                         parties prepare a land exchange
                                                      The Secretary may approve an                                      obtaining non-Hawaiian home lands                                   proposal in accordance with § 47.50.
                                                    exchange only after making a                                        exceeds the interests of the beneficiaries                          The Secretary also recommends the
                                                    determination that the exchange will                                in retaining the Hawaiian home lands                                DHHL and the non-DHHL party in the
                                                    advance the interests of the                                        proposed for the exchange, based on an                              exchange meet with the Department
                                                    beneficiaries. In considering whether a                             evaluation of the factors in § 47.20; and                           before finalizing a land exchange
                                                    land exchange will advance the interests                              (c) The intended use of the conveyed                              proposal and signing an agreement to
                                                    of the beneficiaries, the Secretary will                            Hawaiian home lands will not                                        initiate the land exchange to informally
                                                    evaluate the extent to which it will:                               significantly conflict with the                                     discuss:
                                                      (a) Achieve better management of                                  beneficiaries’ interests in adjacent                                   (1) The review and processing
                                                    Hawaiian home lands;                                                Hawaiian home lands.                                                procedures for Hawaiian home lands
                                                      (b) Meet the needs of HHCA                                        § 47.35      Must lands exchanged be of equal                       exchanges;
                                                    beneficiaries and their economic                                    value?                                                                 (2) Potential issues involved that may
                                                    circumstances by promoting:                                           Hawaiian home lands to be exchanged                               require more consideration; or
                                                      (1) Homesteading opportunities,                                   must be of equal or lesser value than the                              (3) Any other matter that may make
                                                                                                                        lands to be received in the exchange, as                            the proposal more complete before
                                                      (2) Economic self-sufficiency, and,
                                                                                                                        determined by the appraisal. Once the                               submission to us.
                                                      (3) Social well-being;                                                                                                                   (b) Whether or not a land exchange
                                                                                                                        market value is established by an
                                                      (c) Promote development of Hawaiian                                                                                                   proposal is completed, the DHHL
                                                                                                                        approved appraisal, an administrative
                                                    home lands for residential, agricultural,                                                                                               initiates the exchange by preparing the
                                                                                                                        determination as to the equity of the
                                                    and pastoral use;                                                                                                                       documentation, conducting appropriate
                                                                                                                        exchange can be made based on the
                                                      (d) Protect cultural resources and                                market value reflected in the approved                              studies, and submitting them to the
                                                    watersheds;                                                         appraisal.                                                          Secretary in accordance with § 47.60.
                                                      (e) Consolidate lands or interests in                                                                                                    (c) Upon completing the review of the
                                                    lands, such as agricultural and timber                              § 47.40 How must properties be                                      final land exchange packet under
                                                    interests, for more logical and efficient                           described?                                                          § 47.60, the Secretary will issue a Notice
                                                    management and development;                                            The description of properties                                    of Decision announcing the approval or
                                                      (f) Expand homestead communities;                                 involved in a land exchange must be                                 disapproval of the exchange.
                                                                                                                        either:                                                                (d) If the Secretary approves an
                                                      (g) Accommodate land use                                             (a) Based upon a survey completed in
                                                    authorizations;                                                                                                                         exchange, title will transfer in
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                                                                                                                        accordance with the Public Land Survey                              accordance with State law.
                                                      (h) Address HHCA beneficiary needs;                               System laws and standards of the
                                                    and                                                                 United States; or                                                   § 47.50 What should DHHL include in a
                                                      (i) Advance other identifiable                                       (b) If Public Land Survey System laws                            land exchange proposal for the Secretary?
                                                    interests of the beneficiaries consistent                           and standards cannot be applied, based                                (a) A land exchange proposal should
                                                    with the HHCA.                                                      upon a survey that both:                                            include the following documentation:




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                                                    27138                          Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules

                                                    The proposal should include . . .                                                 that should contain . . .

                                                    (1) Identifying information ..................................................    (i) The identity of the parties involved in the proposed exchange; and
                                                                                                                                      (ii) The status of their ownership of the properties in the exchange, or their ability to
                                                                                                                                          provide title to the properties.
                                                    (2) Descriptive information .................................................     A legal description of:
                                                                                                                                      (i) The land considered for the exchange; and
                                                                                                                                      (ii) The appurtenant rights proposed to be exchanged or reserved.
                                                    (3) Authorized use information ...........................................        (i) Any authorized uses including grants, permits, easements, or leases; and
                                                                                                                                      (ii) Any known unauthorized uses, outstanding interests, exceptions, adverse claims,
                                                                                                                                          covenants, restrictions, title defects or encumbrances.
                                                    (4) A time schedule for completing the exchange .............                     Expected dates of significant transactions or milestones.
                                                    (5) Assignment of responsibilities ......................................         Responsibilities for:
                                                                                                                                      (i) Performance of required actions; and
                                                                                                                                      (ii) Costs associated with the proposed exchange.
                                                    (6) Hazardous substance information ................................              Notice of:
                                                                                                                                      (i) Any known release, storage, or disposal of hazardous substances on non-DHHL
                                                                                                                                          properties in the exchange;
                                                                                                                                      (ii) Any commitments regarding responsibility for removal or remedial actions con-
                                                                                                                                          cerning hazardous substances on non-DHHL properties; and
                                                                                                                                      (iii) All terms and conditions regarding hazardous substances on non-DHHL prop-
                                                                                                                                          erties.
                                                    (7) Grants of permission by each party to the other .........                     Permission to enter the properties for the purpose of conducting physical examina-
                                                                                                                                          tion and studies in preparation for the exchange. Written permission to appraise
                                                                                                                                          the properties should also be included.
                                                    (8) Three statements ..........................................................   Details of:
                                                                                                                                      (i) Arrangements for relocating tenants occupying the DHHL and non-DHHL prop-
                                                                                                                                          erties involved in the exchange;
                                                                                                                                      (ii) How the land exchange proposal complies with the HHCA and HHLRA; and
                                                                                                                                      (iii) How the documents of conveyance will be exchanged once the Secretary has
                                                                                                                                          approved the exchange.



                                                      (b) When the parties to the exchange                             § 47.55 What are the minimum
                                                    agree to proceed with the land exchange                            requirements for appraisals used in a land
                                                                                                                       exchange?
                                                    proposal, they may sign an agreement
                                                    that DHHL will initiate the exchange.                                (a) The following table shows the
                                                                                                                       steps in the appraisal process.

                                                                           Appraisal process step                                                                           Requirements

                                                    (1) The parties to the exchange must arrange for ap-                              (i) The parties must arrange for appraisals within 90 days after executing the agree-
                                                      praisals.                                                                           ment to initiate the land exchange, unless the parties agree to another schedule.
                                                                                                                                      (ii) The parties must give the appraiser the land exchange proposal, if any, and the
                                                                                                                                          agreement to initiate the land exchange, and any attachments and amendments.
                                                                                                                                      (iii) The DHHL is encouraged to request assistance from the Department’s Office of
                                                                                                                                          Valuation Services (OVS). OVS can provide valuation services to DHHL, including
                                                                                                                                          appraisal, appraisal review, and appraisal consultation on a reimbursable basis.
                                                                                                                                          OVS is also available for post-facto program review to ensure that appraisals con-
                                                                                                                                          ducted by the State are in conformance with the Uniform Standards of Profes-
                                                                                                                                          sional Appraisal Practice and the Uniform Appraisal Standards for Federal Land
                                                                                                                                          Acquisitions as appropriate.
                                                    (2) The qualified appraiser must provide an appraisal re-                         The appraiser must:
                                                      port.                                                                           (i) Meet the qualification requirements in paragraph (b) of this section;
                                                                                                                                      (ii) Produce a report that meets the qualifications in paragraph (c) of this section; and
                                                                                                                                      (iii) Complete the appraisal under the timeframe and terms negotiated with the par-
                                                                                                                                          ties in the exchange.
                                                    (3) The Secretary will review appraisal reports .................                 The Secretary will evaluate the reports using:
                                                                                                                                      (i) The Uniform Standards of Professional Appraisal Practice; and
                                                                                                                                      (ii) The Uniform Appraisal Standards for Federal Land Acquisitions.



                                                       (b) To be qualified under paragraph                               (3) Be licensed to perform appraisals                   (1) Be completed in accordance with
                                                    (a)(2) of this section, an appraiser must:                         in the State of Hawai’i unless a Federal                the current edition of the Uniform
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                                                       (1) Be competent, reputable,                                    employee whose position requires the                    Standards of Professional Appraisal
                                                    impartial, and experienced in                                      performance of appraisal duties. Federal                Practice (USPAP) and the Uniform
                                                    appraising property similar to the                                 employees only need to be licensed in                   Appraisal Standards for Federal Land
                                                    properties involved in the appraisal                               one State or territory to perform real                  Acquisition (UASFLA); and
                                                    assignment; and                                                    estate appraisal duties as Federal                        (2) Include the estimated market value
                                                                                                                       employees in all States and territories.                of Hawaiian home lands and non-
                                                       (2) Be approved by the OVS, if
                                                    required by the Department’s Office of                               (c) Appraisal reports for the exchange                Hawaiian home lands properties
                                                    Native Hawaiian Relations.                                         must:                                                   involved in the exchange.


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                                                                                  Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules                                                    27139

                                                    § 47.60 What documentation must DHHL
                                                    submit to the Secretary in the land
                                                    exchange packet?
                                                      The documents in the exchange
                                                    packet submitted to us for approval
                                                    must include the following:

                                                    The packet must contain . . .                                                  that must include . . .

                                                    (a) Required statements ....................................................   (1) A statement of approval for the exchange from the Commission;
                                                                                                                                   (2) A statement of compliance with the National Historic Preservation Act and, as ap-
                                                                                                                                       propriate, a cultural and historic property review;
                                                                                                                                   (3) An explanation of how the exchange will advance the interests of the bene-
                                                                                                                                       ficiaries;
                                                                                                                                   (4) A summary of any consultation with any beneficiaries that may have occurred;
                                                                                                                                       and
                                                                                                                                   (5) A statement of compliance with the Native American Graves Protection and Re-
                                                                                                                                       patriation Act.
                                                    (b) Required analyses and reports ....................................         (1) Environmental analyses and records sufficient to meet CERCLA, NEPA, and all
                                                                                                                                       other pertinent Federal environmental requirements;
                                                                                                                                   (2) Land appraisal reports and statements of qualification of the appraisers in accord-
                                                                                                                                       ance with § 47.55; and
                                                                                                                                   (3) If property conveyed is adjacent to Hawaiian home lands:
                                                                                                                                   (i) An analysis of intended use of the Hawaiian home lands conveyed;
                                                                                                                                   (ii) A finding that the intended use will not conflict with established management ob-
                                                                                                                                       jectives on the adjacent Hawaiian home lands; and
                                                                                                                                   (4) A copy of the land exchange proposal, if any.
                                                    (c) Relevant legal documents ............................................      (1) Any land exchange agreements entered into regarding the subject properties be-
                                                                                                                                       tween DHHL and the non-DHHL party;
                                                                                                                                   (2) Evidence of title; and
                                                                                                                                   (3) Deeds signed by the parties, with a signature block for the Secretary of the Inte-
                                                                                                                                       rior or our authorized representative to approve the transaction.



                                                    Subpart B—Approval and Finalization                             PART 48—AMENDMENTS TO THE                               § 48.5   What is the purpose of this part?
                                                                                                                    HAWAIIAN HOMES COMMISSION ACT                             (a) This part sets forth the policies
                                                    § 47.65 When will the Secretary approve or
                                                    disapprove the land exchange?
                                                                                                                                                                            and procedures for:
                                                                                                                    Sec.
                                                                                                                    48.5  What is the purpose of this part?                   (1) Review by the Secretary of
                                                       On receipt of the complete land                                                                                      proposed amendments to the Hawaiian
                                                    exchange packet from the Commission,                            48.6  What definitions apply to terms used
                                                                                                                        in this part?                                       Homes Commission Act by the State of
                                                    the Secretary will approve or                                                                                           Hawai‘i; and
                                                                                                                    48.10 What is the Secretary’s role in
                                                    disapprove the exchange within 120                                  reviewing proposed amendments to the                  (2) Determination by the Secretary
                                                    calendar days.                                                      HHCA?                                               whether the proposed amendment
                                                       (a) Before approving or disapproving                         48.15 What are the State’s responsibilities             requires congressional approval.
                                                    the exchange, the Secretary will review                             in proposing amendments?                              (b) This part implements
                                                    all environmental analyses, appraisals,                         48.20 How does the Secretary determine if               requirements of the Hawaiian Homes
                                                    and all other supporting studies and                                the State is seeking to amend Federal
                                                                                                                                                                            Commission Act, the State of Hawai‘i
                                                    requirements to determine whether the                               law?
                                                                                                                    48.25 How does the Secretary determine if               Admission Act, 1959, and the Hawaiian
                                                    proposed exchange complies with                                                                                         Home Lands Recovery Act, 1995.
                                                    applicable law and advances the                                     the proposed amendment decreases the
                                                                                                                        benefits to beneficiaries of Hawaiian
                                                    interests of the beneficiaries.                                                                                         § 48.6 What definitions apply to terms
                                                                                                                        home lands?                                         used in this part?
                                                       (b) The Secretary may consult with                           48.30 How does the Secretary determine if
                                                    the beneficiaries when making a                                     Congressional approval is unnecessary?                 As used in this part, the following
                                                    determination if a land exchange                                48.35 When must the Secretary determine if              terms have the meanings given in this
                                                    advances the interests of the                                       the proposed amendment requires                     section.
                                                    beneficiaries.                                                      Congressional approval?                                Beneficiaries means ‘‘native
                                                       (c) After approving or disapproving an                       48.40 What notification will the Secretary              Hawaiian(s)’’ as that term is defined
                                                    exchange, the Secretary will notify                                 provide?                                            under section 201(a) of the Hawaiian
                                                    DHHL, the Commission, and other                                 48.45 When is a proposed amendment                      Homes Commission Act.
                                                                                                                        deemed effective?
                                                    officials as required by section 205(b)(2)                                                                                 Chairman means the Chairman of the
                                                                                                                    48.50 Can the State of Hawai‘i amend the
                                                    of the HHLRA.                                                       Hawaiian Homes Commission Act
                                                                                                                                                                            Hawaiian Homes Commission
                                                                                                                                                                            designated under section 202 of the
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                                                    § 47.70 How does DHHL complete the                                  without Secretarial review?
                                                                                                                                                                            Hawaiian Homes Commission Act.
                                                    exchange once approved?                                            Authority: State of Hawai‘i Admission
                                                                                                                                                                               Consultation means an open
                                                      (a) The DHHL completes the exchange                           Act, 73 Stat. 4, chapter 339, approved March
                                                                                                                    18, 1959; Hawaiian Homes Commission Act,
                                                                                                                                                                            discussion process that allows
                                                    in accordance with the requirements of                                                                                  interested parties to address potential
                                                                                                                    1920, 42 Stat. 108 et seq., chapter 42;
                                                    State law.                                                      Hawaiian Home Lands Recovery Act, 1995,                 issues, changes, or actions. Consultation
                                                      (b) DHHL shall provide a title report                         109 Stat. 537; 5 U.S.C. 301; 25 U.S.C. 2 and            does not require formal face-to-face
                                                    to us as evidence of the completed                              9; 43 U.S.C. 1457; 112 Departmental Manual              meetings. However, it does require
                                                    exchange.                                                       28.                                                     dialogue (verbal, electronic, or printed)


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                                                    27140                    Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules

                                                    or at least a good faith effort to engage                 (1) Copy of the proposed amendment;                 section 204, section 206, or 212 or other
                                                    in dialogue with the beneficiaries.                       (2) Description of the nature of the                provisions relating to the powers and
                                                       DHHL or Department of Hawaiian                       change proposed by the proposed                       duties of officers other than those
                                                    Home Lands means the department                         amendment; and,                                       charged with the administration of the
                                                    established by the State of Hawai‘i                       (3) Opinion regarding whether the                   HHCA.
                                                    under sections 26–4 and 26–17 of the                    proposed amendment requires the
                                                    Hawai‘i Revised Statutes to administer                  approval of Congress.                                 § 48.25 How does the Secretary determine
                                                    the Hawaiian Homes Commission Act.                                                                            if the proposed amendment decreases the
                                                                                                              (b) The following information must
                                                                                                                                                                  benefits to beneficiaries of Hawaiian home
                                                    This department assumes the authorities                 also be submitted:                                    lands?
                                                    and responsibilities of the Hawaiian                      (1) A description of the proposed
                                                    Homes Commission and the                                amendment, including why the                            The Secretary will determine if the
                                                    Commission serves as the department’s                   proposed amendment advances the                       proposed amendment decreases the
                                                    executive board under amended section                   interests of the beneficiaries;                       benefits to the beneficiaries, now or in
                                                    202 of the Hawaiian Homes Commission                      (2) All testimony and correspondence                the future, by weighing the answers to
                                                    Act.                                                    from the Director of the Department of                the following questions:
                                                       HHCA or Hawaiian Homes                               Hawaiian Home Lands, Hawaiian                           (a) How would the proposed
                                                    Commission Act means the Hawaiian                       Homes Commissioners, and Homestead                    amendment advance or otherwise
                                                    Homes Commission Act, 1920, 42 Stat.                    Associations, providing views on the                  impact current lessees of Hawaiian
                                                    108 et seq., chapter 42, as amended.                    proposed amendment;                                   home lands?
                                                       HHLRA or Hawaiian Home Lands                           (3) An analysis of the law and policy
                                                    Recovery Act means the Hawaiian Home                                                                            (b) How would the proposed
                                                                                                            of the proposed amendment by the
                                                    Lands Recovery Act, 1995, 109 Stat. 537,                                                                      amendment advance or otherwise
                                                                                                            Department of Hawaiian Home Lands
                                                    Public Law 104–42.                                                                                            impact HHCA beneficiaries currently on
                                                                                                            and the Hawaiian Homes Commission;
                                                       Hawaiian home lands means all trust                                                                        a waiting list for a Hawaiian home lands
                                                                                                              (4) Documentation of the dates and
                                                    lands given the status of Hawaiian home                                                                       lease?
                                                                                                            number of hearings held on the
                                                    lands under section 204 of the Hawaiian                 measure, and a copy of all testimony                    (c) How would the proposed
                                                    Homes Commission Act and those lands                    provided or submitted at each hearing;                amendment advance or otherwise
                                                    obtained through approval under part                      (5) Copies of all committee reports                 impact HHCA beneficiaries who have
                                                    47, Land Exchange Procedures, by the                    and other legislative history, including              not yet applied for a Hawaiian home
                                                    DHHL, and as directed by Congress.                      prior versions of the proposed                        lands lease?
                                                       Lessee means either a:                               amendment;                                              (d) If the interests of the beneficiaries
                                                       (1) Beneficiary who has been awarded                   (6) Final vote totals by the                        who have not been awarded a Hawaiian
                                                    a lease under section 207(a) of the                     Commission and the legislature on the                 home lands lease and the lessees differ,
                                                    Hawaiian Homes Commission Act;                          proposed amendment forwarded to the                   how does the proposed amendment
                                                       (2) Transferee lessee under section                  Secretary of the Interior;                            weigh the interests of HHCA
                                                    208(5) of the Hawaiian Homes                              (7) Summaries of all outreach or                    beneficiaries who have not been
                                                    Commission Act; or                                      consultations conducted with the                      awarded a Hawaiian home lands lease
                                                       (3) Successor lessee under section 209               beneficiaries regarding the proposed                  with the interests of Hawaiian home
                                                    of the Hawaiian Homes Commission                        amendment; and                                        lands lessees?
                                                    Act.                                                      (8) Other additional information that
                                                       Secretary means the Secretary of the                                                                         (e) If the interests of the beneficiaries
                                                                                                            the State believes may assist in the                  who have not been awarded a Hawaiian
                                                    Interior or a designated employee.
                                                       Special Trust Funds means the                        review of the proposed amendment.                     home lands lease and the lessees differ,
                                                    Hawaiian home-loan fund, the Hawaiian                   § 48.20 How does the Secretary determine              do the benefits to the lessees outweigh
                                                    home-operating fund, and the Hawaiian                   if the State is seeking to amend Federal              any detriment to the beneficiaries who
                                                    home-development fund as defined                        law?                                                  have not been awarded a Hawaiian
                                                    under section 213 of the Hawaiian                         The Secretary will determine that                   home lands lease?
                                                    Homes Commission Act.                                   Congressional approval is required if the               (f) If the interests of the beneficiaries
                                                    § 48.10 What is the Secretary’s role in
                                                                                                            proposed amendment does any of the                    differ from the interests of the lessees,
                                                    reviewing proposed amendments to the                    following:                                            do the benefits to the beneficiaries
                                                    HHCA?                                                     (a) Decreases benefits to the                       outweigh any detriment to the lessees?
                                                      (a) The Secretary must review                         beneficiaries of Hawaiian home lands;
                                                                                                              (b) Reduces or impairs the Special                  § 48.30 How does the Secretary determine
                                                    proposed amendments to the Hawaiian                                                                           if Congressional approval is unnecessary?
                                                    Homes Commission Act (HHCA) by the                      Trust Funds;
                                                    State of Hawai‘i to determine whether                     (c) Allows for additional                              The Secretary will determine that
                                                    the proposed amendment requires                         encumbrances to be placed on Hawaiian                 Congressional approval is unnecessary
                                                    approval of Congress.                                   home lands by officers other than those               if the proposed amendment meets none
                                                      (b) The Secretary will notify the                     charged with the administration of the                of the circumstances in § 48.20.
                                                    Chairman and Congress of this                           HHCA;
                                                                                                              (d) Changes the qualifications of who               § 48.35 When must the Secretary
                                                    determination, and if approval is                                                                             determine if the proposed amendment
                                                                                                            may be a lessee;
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                                                    required, submit to Congress the                                                                              requires Congressional approval?
                                                    documents required by § 48.35(b).                         (e) Allows the use of proceeds and
                                                                                                            income from the Hawaiian home lands                     The Secretary will review the
                                                    § 48.15 What are the State’s                            for purposes other than carrying out the              documents submitted by the Chairman,
                                                    responsibilities in proposing amendments?               provisions of the HHCA; or                            and if they meet the requirements of
                                                      (a) Not later than 120 days after the                   (f) Amends a section other than                     § 48.15, the Secretary will determine
                                                    State approves a proposed amendment                     sections 202, 213, 219, 220, 222, 224, or             within 60 days after receiving them if
                                                    to the HHCA, the Chairman must submit                   225, or other provisions relating to                  the proposed amendment requires
                                                    to the Secretary a clear and complete:                  administration, or paragraph (2) of                   Congressional approval.


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                                                                             Federal Register / Vol. 80, No. 91 / Tuesday, May 12, 2015 / Proposed Rules                                                 27141

                                                    § 48.40 What notification will the Secretary              (2) A description of the change made                   (b) If the Secretary determines that the
                                                    provide?                                                by the proposed amendment and an                      proposed amendment requires
                                                      (a) If the Secretary determines that                  explanation of how the proposed                       congressional approval then the
                                                    Congressional approval of the proposed                  amendment advances the interests of                   effective date of the proposed
                                                    amendment is unnecessary, the                           the beneficiaries;                                    amendment is the date that Congress’
                                                    Secretary will:                                           (3) A comparison of the existing law                approval becomes law.
                                                      (1) Notify the Chairmen of the Senate                 with the proposed amendment;                          § 48.50 Can the State of Hawai‘i amend the
                                                    Committee on Energy and Natural                           (4) A recommendation on the                         Hawaiian Homes Commission Act without
                                                    Resources and of the House Committee                    advisability of approving the proposed                Secretarial review?
                                                    on Natural Resources; and                               amendment;                                              The Secretary of the Interior must
                                                      (2) Include, if appropriate, an opinion                 (5) All documentation concerning the                review all proposed amendments to the
                                                    on whether the proposed amendment                       proposed amendment received from the                  Hawaiian Homes Commission Act. Any
                                                    advances the interests of the                           Chairman; and                                         proposed amendments to any terms or
                                                    beneficiaries.                                            (6) All documentation concerning the                provisions of the Hawaiian Homes
                                                      (b) If the Secretary determines that                  proposed amendment received from the                  Commission Act by the State must also
                                                    Congressional approval of the proposed                  beneficiaries.                                        specifically state that the proposed
                                                    amendment is required, the Secretary                                                                          amendment proposes to amend the
                                                    will notify the Chairmen of the Senate                  § 48.45 When is a proposed amendment                  Hawaiian Homes Commission Act. Any
                                                    Committee on Energy and Natural                         deemed effective?                                     state enactment that impacts any of the
                                                    Resources and of the House Committee                      (a) If the Secretary determines that a              factors in § 48.20 shall have no effect on
                                                    on Natural Resources. The Secretary                     proposed amendment meets none of the                  the provisions of the HHCA or
                                                    will also submit to the Committees the                  criteria in § 48.20, the effective date of            administration of the trust, except
                                                    following:                                              the proposed amendment is the date of                 pursuant to this part.
                                                      (1) A draft joint resolution approving                the notification letter to the Committee              [FR Doc. 2015–11401 Filed 5–8–15; 4:15 pm]
                                                    the proposed amendment;                                 Chairmen.                                             BILLING CODE 4310–93–P
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Document Created: 2015-12-16 07:55:50
Document Modified: 2015-12-16 07:55:50
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be submitted on or before July 13, 2015.
ContactKa`i`ini Kimo Kaloi, Director, Office of Native Hawaiian Relations, telephone (202) 208-7462.
FR Citation80 FR 27134 
RIN Number1090-AA98
CFR Citation43 CFR 47
43 CFR 48
CFR AssociatedHawaii; Intergovernmental Programs; Land and State-Federal Relations

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