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Harry Kim <br />(11(0'or <br />r <br />Wil Okabe <br />Managing Director <br />Barbara J. Kossow <br />Deputy Managing Director <br />25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 * (808) 961-8211 • Fax (808) 961-6553 <br />KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740 <br />(808) 323-4444 • Fax (808) 323-4440 <br />March 29, 2018 <br />Senator Donovan M. Dela Cruz, Chair <br />Committee on Ways and Means <br />Hawail State Capitol, Room 211 <br />Honolulu, HI 96813 <br />Senator Gilbert S.C. Keith-Agaran, Vice -Chair <br />Committee on Ways and Means <br />Hawaii State Capitol, Room 211 <br />Honolulu, Hi 96813 <br />Dear Chair Dela Cruz, Vice -Chair Keith-Agaran, and Committee Members: <br />Re: HB 2605, HD 2, SD 1 Relating to Transient Accommodations <br />Hearing Date: 04/03/2018 — 10 00 am; Conference Room 211 <br />Thank you for the opportunity to comment on B 2605, HD 2, SD1 . will leave <br />most of the details of this bill to others, and limit my remarks to the proposed civil <br />penalty and to Section 7 of SD 1. <br />SECTION 7 <br />"SECTION 7. Upon the establishment by a county of a process for <br />providing verification of compliance by an operator or plan manager <br />with that county's land use ordinances, the State shall transfer, from <br />the transient accommodations tax revenues, up to $10000,000 to each <br />county for implementation or enforcement of those land use <br />ordinances. <br />First, 1 cannot be certain from the language whether these monies are meant to <br />replace or to supplement the TAT funds that the counties presently receive. Only if <br />these payments would be in addition to current allocations, could Hawaii County <br />support it. This issue is especially impo ant since the Attorney General, in a hearing on <br />an earlier version of this bill, raised a question as to whether "the $4,000,000 allocation <br />to the counties is meant to come out of the TAT revenues before section 237D- <br />6.5(b)(4)is $103,000,000 allocation to the counties." We think it is clear that this 'up to <br />$1,000,000" for each county is separate and in addition to the $103,000,000 County <br />portion of the TAT, but would ask that this be reemehasized. <br />County of ilawai`i is an Equal Opportunity Provider and Eniployer. <br />