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surcharge would be a more regressive tax and it should be restricted by the State to uses that support lower-income residents of the counties. Secretary Chang stated that the HCOM proposal, as written, would enable the counties to have the authority to direct where any additional funding should go, which would support the objectives of increasing county revenue and promoting home rule. Alternate Kagawa agreed with Secretary Chang and further emphasized that supporting HCOM's proposal would allow the county councils to have a discussion regarding restriction of funding from any GET surcharge, were it to be enacted by the legislature. Mayor Caldwell informed members that Honolulu Corporation Counsel was drafting the bills to enact the proposed HCOM measures and stated he was willing to share the drafts with HSAC when they were complete. Members thanked the Mayor. This item was deferred. B. Discussion relating to an HSAC Legislative Priority Policy Statement. Secretary Chang distributed a proposed HSAC 2014 Legislative Priorities and explained that the listed priorities were suggestions from the counties. He stated that he was open to discussing changes to the document as proposed or including adding the Mayor's GET proposal. Secretary Chang suggested that HSAC approve the Legislative Priorities document that included the two proposals in HCOM's Legislative Package. Secretary Chang explained that by supporting HCOM's proposals, HSAC would be able to demonstrate to the State that the counties were united on certain issues Treasurer Victorino stated that he had concerns that having both an HSAC Legislative Package and a Priority document may confuse the Legislature. Vice President Onishi agreed that HSAC should make certain that the Legislature understands what proposals the counties support. A representative of Mayor Caldwell, Ms. Miranda-Johnson, stated that the legislature could get confused if HSAC presents two documents without clarity as to HSAC's priorities. Kauai Councilmember Yukimura added that it would be necessary to explain to the legislature which proposals were approved by the Councils and which were approved by only the HSAC Executive Committee. Vice President Onishi suggested that the committee defer the item in order to give staff time to make sure that it would be possible for HSAC to have two separate documents supporting its legislative strategy and to clarify the procedures for approval possibly without consent of the 4