The State of Hawaii turns 50 this week.  Owing to looming budget shortfalls in the State's budget, celebrations seem scarce around town.  This fact is not lost on the Editors of the New York Times who published an editorial today discussing the relative lack of celebration planned for this anniversary.

On that note, it seemed relevant to consider some differences between states and territories (I use that term generically to capture commonwealths, possessions and other land areas affiliated with the United States).

Statehood matters.  Some differences are highlighted below:

Individual rights: Around 1900, the U.S. Supreme Court heard a series of cases involving the newly acquired lands of Puerto Rico, Philippines, Hawaii and Alaska.  The cases, dubbed the Insular Cases, grappled with the notion that being a state was different than any other status.  As recently as 1990, the U.S. Supreme Court has said that the full panoply of constitutional rights are not automatic in non-states.  In United States v. Verdugo-Urquidez, the Supreme Court stated:

The global view taken by the Court of Appeals of the application of the Constitution is also contrary to this Court's decisions in the Insular Cases, which held that not every constitutional provision applies to governmental activity even where the United States has sovereign power. See, e. g., Balzac v. Porto Rico, 258 U.S. 298 (1922) (Sixth Amendment right to jury trial inapplicable in Puerto Rico); Ocampo v. United States, 234 U.S. 91 (1914) (Fifth Amendment grand jury provision inapplicable in Philippines); Dorr v. United States, 195 U.S. 138 (1904) (jury trial provision inapplicable in Philippines); Hawaii v. Mankichi, 190 U.S. 197 (1903) (provisions on indictment by grand jury and jury trial inapplicable in Hawaii); Downes v. Bidwell, 182 U.S. 244 (1901) (Revenue Clauses of Constitution inapplicable to Puerto Rico). In Dorr, we declared the general rule that in an unincorporated territory – one not clearly destined for statehood – Congress was not required to adopt "a system of laws which shall include the right of trial by jury, and that the Constitution does not, without legislation and of its own force, carry such right to territory so situated." 195 U.S., at 149 (emphasis added). Only "fundamental" constitutional rights are guaranteed to inhabitants of those territories. Id., at 148; Balzac, supra, at 312-313; see Examining Board of Engineers, Architects and Surveyors v. Flores de Otero, 426 U.S. 572, 599 , n. 30 (1976). If that is true with respect to territories ultimately governed by Congress, respondent's claim that the protections of the Fourth Amendment extend to aliens in foreign nations is even weaker. And certainly, it is not open to us in light of the Insular Cases to endorse the [494 U.S. 259, 269]   view that every constitutional provision applies wherever the United States Government exercises its power.

Plainly, the Supreme Court considers territories to being either on the path to statehood or the path to independence.  Citizens of states have more rights than citizens of non-states.

Elections:  Per Art. II, Section 1 of the U.S. Constitution, states, and not citizens, elect the President. "Each State shall appoint, in such Manner as the Legislature thereof may direct, a Number of Electors, equal to the whole Number of Senators and Representatives to which the State may be entitled in the Congress: but no Senator or Representative, or Person holding an Office of Trust or Profit under the United States, shall be appointed an Elector."

Representation in Congress:  Per Art. I, Section 2 of the U.S. Constitution, only states can be represented in the U.S. Congress.  "The House of Representatives shall be composed of Members chosen every second Year by the People of the several States, and the Electors in each State shall have the Qualifications requisite for Electors of the most numerous Branch of the State Legislature."  Art. I, Section 3 has a parallel provision for the U.S. Senate.  Non-states may have Delegates who lack voting power.

This is not a law review article on what laws apply to what territories.  Each federal law could have its own definition of "state" which could include non-states.  The Submerged Lands Act defines states as "states of the union" and it provides them title to the submerged lands adjacent to their territorial landmass.  See 43 U.S.C. s. 2301. 

Happy 50th Hawaii.

Hawaii's Intermediate Court of Appeals just issued a memorandum decision (not published in a bound reporter) regarding Hawaii's Information Practices Law and the availability of attorney's fees to litigants.  The underlying case involved runoff into the ocean, but those issues weren't germane to the decision.

In State of Hawaii v. Earthjustice, pursuant to a

A former shipmate of mine asked me for my thoughts on the recourse an American company would have after a fleet of its boats were seized by a foreign government.  Per this Marinelog.com post, Venezuela has apparently seized/nationalized an American company’s vessel fleet in Lake Maracaibo. 

240px-Lake_Maracaibo_map 

My shipmate’s question is a very complicated one worthy of several books, cases and law reviews (many exist), but in the interest of brevity and overview, here goes:

The “nationalization” or expropriation of assets is not a new happening on the world stage.  From a legal perspective, a country’s seizure of property within its borders was not viewed upon as actionable under U.S. law.  See Banco Nacional de Cuba v. Sabatino, 376 U.S. 298 (1964)(adopting the act of state doctrine to exempt such seizures from review in U.S. courts).

In the wake of the Cuba expropriations and the Supreme Court’s Banco decision, Congress adopted federal law that superceded the decision.  This law, 22. U.S.C. 2370 provides:

(e) Nationalization, expropriation or seizure of property of United States citizens, or taxation or other exaction having same effect; failure to compensate or to provide relief from taxes, exactions, or conditions; report on full value of property by Foreign Claims Settlement Commission; act of state doctrine.
   (1) The President shall suspend assistance to the government of any country to which assistance is provided under this or any other Act when the government of such country or any government agency or subdivision within such country on or after January 1, 1962–
      (A) has nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership or association not less than 50 per centum beneficially owned by United States citizens, or
      (B) has taken steps to repudiate or nullify existing contracts or agreements with any United States citizen or any corporation, partnership, or association not less than 50 per centum beneficially owned by United States citizens, or
      (C) has imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, or has taken other actions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned, and such country, government agency, or government subdivision fails within a reasonable time (not more than six months after such action, or, in the event of a referral to the Foreign Claims Settlement Commission of the United States within such period as provided herein, not more than twenty days after the report of the Commission is received) to take appropriate steps, which may include arbitration, to discharge its obligations under international law toward such citizen or entity, including speedy compensation for such property in convertible foreign exchange, equivalent to the full value thereof, as required by international law, or fails to take steps designed to provide relief from such taxes, exactions, or conditions, as the case may be; and such suspension shall continue until the President is satisfied that appropriate steps are being taken, and the provisions of this subsection shall not be waived with respect to any country unless the President determines and certifies that such a waiver is important to the national interests of the United States. Such certification shall be reported immediately to Congress.
   Upon request of the President (within seventy days after such action referred to in subparagraphs (A), (B), or (C) of paragraph (1)), the Foreign Claims Settlement Commission of the United States (established pursuant to Reorganization Plan No. 1 of 1954, 68 Stat. 1279 note]) is hereby authorized to evaluate expropriated property, determining the full value of any property nationalized, expropriated, or seized, or subjected to discriminatory or other actions as aforesaid, for purposes of this subsection and to render an advisory report to the President within ninety days after such request. Unless authorized by the President, the Commission shall not publish its advisory report except to the citizen or entity owning such property. There is hereby authorized to be appropriated such amount, to remain available until expended, as may be necessary from time to time to enable the Commission to carry out expeditiously its functions under this subsection.
   (2) Notwithstanding any other provision of law, no court in the United States shall decline on the ground of the federal act of state doctrine to make a determination on the merits giving effect to the principles of international law in a case in which a claim of title or other right to property is asserted by any party including a foreign state (or a party claiming through such state) based upon (or traced through) a confiscation or other taking after January 1, 1959, by an act of that state in violation of the principles of international law, including the principles of compensation and the other standards set out in this subsection: Provided, That this subparagraph shall not be applicable (1) in any case in which an act of a foreign state is not contrary to international law or with respect to a claim of title or other right to property acquired pursuant to an irrevocable letter of credit of not more than 180 days duration issued in good faith prior to the time of the confiscation or other taking, or (2) in any case with respect to which the President determines that application of the act of state doctrine is required in that particular case by the foreign policy interests of the United States and a suggestion to this effect is filed on his behalf in that case with the court.

The seizure may implicate U.S. law and give rise to claims against Venezuela if the expropriation was done in violation of international law.  United Nations General Assembly Resolution 1803 may provide such violation if the seizure was done without compensation.  If the owner is compensated, then it may not have recourse. 

One mechanism used for other cases of expropriation is the Foreign Claims Settlement Commission.  It appears that most of its cases are not run-of-the-mill claims but post-war, post-terrorist incident type matters.

Interesting issue to watch in these uncertain economic times.

Along with several colleagues from my firm, I will be teaching at Lorman’s upcoming seminar on Land Use and Advanced Zoning Law in Honolulu, Ala Moana Hotel on February 20, 2008.  Registration information is here.  Topics to be addressed are vacation rentals, impact fees, environmental issues, rockfall liability and a Supreme Court update.