For the second time, the state Supreme Court yesterday affirmed the dismissal of a lawsuit by the state Office of Hawaiian Affairs seeking from the state hundreds of millions of dollars related to ceded lands once held by the Hawaiian monarchy.

The high court last year unanimously affirmed Circuit Judge Gary Chang's dismissal of the suit in 2004, but agreed to reconsider its ruling, paving the way for yesterday's decision.

The court, however, in its 64-page opinion, also repeated its position that the state Legislature has authority to determine how much the state must pay OHA to fulfill its constitutional obligation of paying a portion of the income from ceded lands to OHA.

The portion is 20 percent under state statute, the court said.

The state has recognized that it owes OHA a portion of the revenues from ceded lands.

State lawmakers are to vote on a measure next week that would provide OHA with a lump sum of $17.5 million and annual payments of $15 million.

OHA's lawsuit dealt with revenues that the state disputes should go to the Hawaiian organization.

OHA contended the revenues are related to ceded lands — such as income from the Duty Free Shoppers Waikiki store that is not on ceded lands but is related because Duty Free's headquarters are at Honolulu International Airport, which is on ceded lands.

OHA contended the state breached its obligations to OHA by not doing enough to halt the passage of a 1998 federal law that essentially negated the basis for OHA's claims to the disputed revenues.

"From the beginning of the history of this case, I have believed that the claim is legally meritless, and I am gratified that the Circuit Court's dismissal was unanimously upheld on appeal by the Hawai'i Supreme Court," Attorney General Mark Bennett said.

Robert Klein, OHA's lawyer, could not be reached for comment yesterday.

Reach Ken Kobayashi at kkobayashi@honoluluadvertiser.com.