REP GOEAC 067 2025-09-02 2024-2026

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REPORT OF THE COMMITTEE ON GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS DATE: September 2, 2025 PLACE: Council Chambers Hilo, Hawaii TIME: 9:01 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 461/Res. No. 288-25 Your Committee on Governmental Operations and External Affairs, to which was referred Resolution No. 288-25, reports as follows: Resolution No. 288-25, transmitted by Director of Finance Diane Nakagawa via Communication No. 461, dated August 13, 2025, authorizes the Mayor to enter into an intergovernmental agreement with the State of Hawaii, the County of Kauai, the County of Maui, and the City and County of Honolulu for the purpose of administering certain provisions of Act 96, Session Laws of Hawaii 2025. Resolution No. 288-25 seeks to enter into a Memorandum of Understanding (MOU) to facilitate a uniform administration of transient accommodation taxes on cruise ships across the State. Committee Member Ashley L. Kierkiewicz inquired about what role the County of Hawaii has in shaping how the funds will be used. She mentioned being aware of a committee that has been mobilized statewide to talk about how this additional tax will be used, and asked Director Nakagawa if the County of Hawaii will have a seat at the table to share its thoughts and input on how the funds will be used. Director Nakagawa answered by saying she will contact the Mayor's office to get an answer regarding the County's ability to share its input. Committee Member Heather L. Kimball said she agrees with advocating for the County's ability to share its input on how the additional tax will be used. Ms. Kimball asked, with the lawsuit going forward, whether it would make sense to proceed with the MOU understanding that it would not be implemented if they were to prevail. Deputy Corporation Council Keyra Wong answered by saying the lawsuit could have an effect on the MOU and may possibly affect the language as well. Ms. Wong recommended this decision be postponed to the Call of the Chair, until after the lawsuit has concluded. Committee Member James E. Hustace asked what taxes are currently being collected on cruise ships at the County level. Mr. Hustace also asked if any other counties in the State of Hawaii have similar resolutions, and if they are also being asked to postpone due to the lawsuit. Ms. Nakagawa informed the Committee Members that she will get back to them with an answer and that there will be a meeting on September 3, 2025, to discuss a way forward. GOEAC Report No. 67