A group of Hawai'i taxpayers yesterday asked the 9th U. S. Circuit Court of Appeals to reconsider a ruling that threw out most of the taxpayers' lawsuit challenging the constitutionality of government funding for the Office of Hawaiian Affairs and the Department of Hawaiian Home Lands.

The group is asking for a rehearing by the three-member panel that issued the ruling or for a rehearing by a larger panel of 11 appeals judges.

The appeals court panel on Sept. 30 unanimously affirmed most of the 2002 decision by U.S. District Judge Susan Oki Mollway dismissing the lawsuit, but reinstated part of the suit challenging a portion — about 10 percent — of OHA's annual funding that comes from state tax payers.

The group's lawsuit alleges that public money is misused by government funding the programs benefitting residents of Hawaiian blood, but the appeals court ruled the taxpayers do not have standing or legal authority to press their suit, except for the portion challenging state taxpayer money to OHA.

In its legal brief, the group contended that the panel's decision conflicts with other 9th Circuit Court and U. S. Supreme Court decisions.

The group argued the taxpayers should be able to pursue their claims rather than getting thrown out of court at such an early stage of the proceedings.

The ruling set "unprecedented restrictions" on taxpayer challenges, the group said.

"The restrictions would immunize the misuse of state tax dollars accomplished through the issuance of general obligation bonds or through lease of public lands at below market rental or through other indirect ways no matter how illegal and how painful to taxpayers' pocketbooks," the group said.

OHA officials estimated that OHA gets about $2.8 million annually from the state general fund, which amounts to about 10 percent of its budget.

Reach Ken Kobayashi at kkobayashi@honoluluadvertiser.com.