Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs, and Government Operations and Tourism, to which was referred S.B. No. 2404 entitled:

beg leave to report as follows:

The purpose of this measure is to make an appropriation for expenses of the 2005 National Association of Counties meeting in Honolulu.

Testimony in support of this measure was received from the Honolulu City Council, one Kauai Council Member, seven Maui Council Members, Hawaii State Association of Counties, and National Association of Counties. Testimony in opposition was received from the Department of Business, Economic Development and Tourism.

The City and County of Honolulu is hosting the 2005 National Association of Counties Annual Conference and Exposition from July 15, 2005, to July 19, 2005, at the Hawaii Convention Center. This measure is intended to assist Honolulu with expenses. Your Committees find that the economic benefits derived from the conference in terms of general excise tax revenues and tourism exposure would be realized by the entire State. Your Committees further find that the counties will also reap economic benefits in terms of increased realizations from the transient accommodations tax.

The testimony indicated that the City and County of Honolulu is in the process of preparing a detailed budget for the event. It is also seeking contributions from the Neighbor Islands. The figure posited in this measure represents an estimate. Your Committees request the Honolulu City Council to submit a detailed budget to the Committee on Ways and Means, including the amount of contribution to be made by each county.

Your Committees have amended this measure to provide for an appropriation of $532,000 in matching funds.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs, and Government Operations and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2404, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2404, S.D. 1, and be referred to the Committee on Ways and Means.