REP GRC 005 09/07/2011 2010-2012

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REPORT OF THE COMMITTEE ON GOVERNMENTAL RELATIONS DATE: September 7, 2011 Re: Comm. 313/Res. 123 -11 PLACE: Council Chambers Hilo, Hawai`i TIME: 9:28 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawaii 96720 Your Committee on Governmental Relations, to -which was referred Resolution 123 -11, reports as follows:; Resolution 123 -11, transmitted by Council Member Dennis Onishi via Communication No. 313, dated August 23, 2011, requests the Hawaii State Association of Counties (HSAC) to consider including a resolution in their 2012 Legislative Package to petition the State Legislature to remove the ceiling on the counties' share of the .transient accommodations tax. Mr. Onishi explained the details of the resolution and is asking this Council to approve its presentation to HSAC for their consideration into their 2012 Legislative Package. Mr. Hoffman observed that the resolution states to "remove the cap" but what you really want is to remove the restrictions and return the TAT prior to Act 103. He supports the intent and asks for clarification. Mr. Onishi doesn't believe there was a cap. Mr. Hoffman asked that he consider to simply state to remove the ceiling placed by Act 103. Mr. Yagong asked if we were to remove the ceiling does this mean the Governor can give less or is there a minimum amount? Mr. Onishi replied that Act 103 limits the max award and caps the limits even in the event that TAT is higher because of higher tourism.. Mr. Yagong requested for next meeting to perhaps set the cap higher rather than remove cap. Mr. Onishi replied that this resolution only presents the idea to HSAC to lobby legislature. Perhaps other counties have input to tune this resolution. Ms. Ford would like to see the resolution state the Govemor cannot take away this money any further. It is difficult know how much to budget. 'In addition to removing the ceiling, she asks that the percentage remain constant. Mr. Onishi offered that this is just a vehicle to go to HSAC and solicit changes from discussion with other counties and asks Mr. Pilago, as HSAC representative, to support introduction to HSAC. Mr. Pilago heartily will support this resolution.