[§673-1]  Waiver of immunity.  (a)  The
State waives its immunity for any breach of trust or fiduciary duty resulting
from the acts or omissions of its agents, officers and employees in the
management and disposition of trust funds and resources of:



(1)  The Hawaiian home lands trust under Article XII,
sections 1, 2, and 3 of the Constitution of the State of Hawaii, implementing
sections 4 and 5(f) of the Admission Act (Act of March 18, 1959, Public Law
86-3, 73 Stat. 4); and



(2)  The native Hawaiian public trust under Article
XII, sections 4, 5, and 6 of the Constitution of the State of Hawaii
implementing section 5(f) of the Admission Act;



and shall be liable in the same manner and to the
same extent as a private individual under like circumstances, but shall not be
liable for punitive damages.



(b)  This waiver shall not apply to the
following:



(1)  The acts or omissions of the State's officers and
employees, even though such acts or omissions may not realize maximum revenues
to the Hawaiian home lands trust and native Hawaiian public trust, so long as
each trust is administered in the sole interest of the beneficiaries; provided
that nothing herein shall prevent the State from taking action which would
provide a collateral benefit to nonbeneficiaries, but only so long as the
primary benefits are enjoyed by beneficiaries, and the collateral benefits do
not detract from nor reduce the benefits enjoyed by the beneficiaries;



(2)  Any claim for which a remedy is provided
elsewhere in the laws of the State; and



Any claim arising out of the acts or omissions of
the members of the board of trustees, officers and employees of the office of
Hawaiian affairs, except as provided in section 10-16. [L 1988, c 395, pt of
§2]