Hello to all you loyal members! By the time you read this column I will have been here in Hawaii for 2 years and with Small Business Hawaii for 1-1/2 years. Time sure does fly when you're living in paradise and having a blast! With a very sad heart it is time for me to say good-bye. My husband James is in the Navy and we are getting transferred to upstate New York. We will be living in or near Saratoga Springs. My last day at SBH will be August 31 and then James and I will be flying out of Hawaii on September 4. Hopefully I will be able to see some of you at the next two events to say good-bye.

I have learned so many valuable lessons and so much information about small businesses and even politics. I had told Sam when I first started that I had no interest in politics. Unfortunately, small business (any business for that matter) and politics go hand in hand. I never thought politics had so much to do with running a business but it really does. The legislative branch of government makes laws. When you have a business and the law says what minimum wage is, how much you pay for medical insurance for your employees, how much taxes you pay, etc. that is all part of politics. If you have a business you have to get involved with politics whether you like it or not. If you personally can't get involved then join an organization like SBH that can be a voice for you in the legislature. It makes sense!

I want to thank those of you that came to the events and made them a success! And a big mahalo to those that RSVP and paid in advance! You are truly wonderful!

I plan to keep in touch. I haven't decided what I am going to do for a job when I get to New York. I am keeping my options open and have thought about opening my own business. If you have any ideas let me know before I leave. I'll let you know once I get there and if I do open my own business I'll let you know if it's as hard as opening a business in Hawaii.

I don't belive in luck, only blessings. So, many blessings to you all. Don't give up hope! Perserverence and determination to you all!

Aloha,
Joey Tynecki, Office Manager

Historic Legislative Override
Pins Governor to the Mat

By Malia Zimmerman, Managing Editor

The Hawaiian and American Flags raised before the Hawaii State Capitol snapped a bit more proudly in the tropical breeze July 10 as islanders in a historical moment took control of their state government through the clout of their 76 state legislators.

In an act that enraged the governor, strengthened the legislative branch and gave more power to the people, the state Legislature overrode the governor's veto for the first time since Hawaii became a state in 1959. The Democratic dominated state Legislature and Democratic Governor Benjamin J. Cayetano, historically battle over bills with the majority legislative party always saying "uncle" when wrestled to the political mat by the chief executive.

Nicknamed "the Bulldog," Mr. Cayetano makes sure of that dominance, calling legislators names, holding press conferences, singling them out in public forums, and issuing press releases tenaciously attacking them individually or collectively if they disagree with him. During the past seven legislative sessions since Mr. Cayetano has been governor, he flippantly and frequently stamped a veto on many bills that were passed unanimously by the 76 state legislators, boasting a record of vetoing more bills than any other governor.

The resistance to even attempt to override came from the fear of shattering the symbolism of party unity, and because Mr. Cayetano openly makes clear that he takes any disagreement personally and vindictively and proudly stomps out adversaries. His threats, and those of his Democratic predecessors, worked for the last 44 years, with the Democrats in the state Legislature repeatedly refusing to put the executive branch in its rightful place and create some essence of a balance of power between the three government branches. The judicial branch also got in its licks ordering the federal government to smack aside legislators and take control in the late 1990s of the state's corrections, mental hospital and special needs school systems.

The last veto override by legislators came in 1957, when William F. Quinn, a Republican governor appointed by President Eisenhower, was in control of the Hawaii territory. Mr. Quinn's veto of a bill that established broader tax increases, was overridden by a Democratic controlled Legislature, which took hostage the legislative branch in 1954 and has since, in partnership with four United States Democratic congressmen, remained an indomitable force and the longest running-political machine in the nation's history. On the periphery of 2002, however, a year where the Hawaii State Constitution mandates virtually every county, state and federal elected official run for re-election, legislators in the final match of 2001 gave the governor a knockout punch.

The dispute was over a highly publicized, widely supported, unanimously passed bill to raise the age of sexual consent for minors from 14 to 16 years of age, which the governor vetoed saying the bill was flawed. Hawaii is the only state to have a sexual consent age so young. Legislators, who closed the 2001 session May 3, already were called back into a special session by the governor from June 4 to June 8 to fix two flawed budget bills of concern to him. The governor was betting legislators were not about to call a second special session, and 29 of his 33 vetoes occurred after legislators went home from the first special session.

But on the afternoon of July 9, just hours before the deadline when the ability to override was to expire, House and Senate leadership agreed to a special session.This followed weeks of public protest, and lobbying by Hawaii Family Forum's director Kelly Rosati, who was introduced in both Houses as the coordinator of the movement. On Tuesday, July 10, 23 of the 25 state Senators (one was absent), and the 48 state Representatives present of 51, voted to override the veto and restore HB 236. It takes two-thirds of both houses to override.

"When people in Hawaii realized what the legal situation was, they were outraged because it defies all common sense," Ms. Rosati says. "Not many people realized how common it is for young girls, girls in middle school, to run away from their foster care homes only to be housed for sex by older men, who later throw them away to the cops. Up until now, that has been perfectly legal, and there has been nothing we could do about it."

The legislation is certainly not perfect: lawmakers admit that, and several law enforcement officials, women's caucuses, abortion rights groups, and the Honolulu City Prosecutor's office, lobbied hard against the controversial bill, saying penalties for violators are too harsh. (The legislation, which went through five revisions and is due to sunset in 2003, provides for a Class A felony, up to 20 years in prison, but only applies if there is a five year differential between the unmarried parties). The public is thankful that its eighth and ninth graders can no longer, without the threat of criminal prosecution, be taken advantage of by sexual predators.

Jonathan Chun, co-majority leader in the state Senate from the island of Kauai, says the legislation may not be perfect, but is better than allowing older adults to prey with no sanctions: "If it is this bill or no penalty at all, I vote to override."

The governor, who cannot run for re-election in 2002, harshly decried the move as politically motivated: "Had they (legislators) chosen differences of substance or philosophy upon which to override this veto, that would be understandable, but this is pure politics. Anyone who would base their decision on pure politics should not be in public service. This issue is not about me, personally, but about doing the right thing for the people when tested. The Democratic majority has failed the test."

Senate Minority Leader Sam Slom, who represents Honolulu's East Oahu, says this historic vote was exactly about doing the right thing for legislators representing the voters and families and applying common sense for a change.

"Protecting our young children is not a partisan issue," Slom says.

Orson Swindle to Speak at Internet Forum

Commissioner of the Federal Trade Commission (FTC) in Washington, D.C., former Hawaii resident and U.S. Congressional candidate, Orson Swindle, will speak at a special SBH Internet Trade Forum on Friday, August 24, 7-9:00 am in the Liberty House Pineapple Room, Ala Moana Center.

Swindle will speak on, "How Vulnerable is Small Business Using the Internet - the View From the FTC." He will provide materials and answer questions related to business opportunities - and cautions - on the 'Net.

The forum is open to SBH members, their guests and the public. Seating is limited. Advance registration is a must!

Cost is $ 20 for SBH members and their guests who pay in advance and includes a complete buffet breakfast and free parking (easily accesible on the 4th level of Ala Moana Center); $30 for non-members and anyone at the door, provided space is available.

If you are doing business on the Internet, or are thinking about it, or just want to say hello to an old friend of Hawaii small business, come (and bring a friend) on August 24.

Call Small Business Hawaii at 396-1724 to get a reservation form or clip it out of the printed copy of the Small Business News.

Linda Lingle Speaks at August Sunrise

Gubernatorial candidate and current Chair of the Hawaii Republican Party, Linda Lingle, will talk business at the next monthly SBH member Sunrise Networking breakfast, Thursday, August 30, 7 - 8:30 am in the Pineapple Room, Ala Moana Center. The Networking Breakfast is open to all SBH members, their guests and the public.

Seating is limited, and advance registration is a must! There's easy access and plenty of free parking on the 4th floor of Ala Moana.

Lingle, former Mayor of Maui, came within 5,000 votes of becoming Hawaii's first woman governor in 1998. She is one of Hawaii's most recognized and respected woman leaders. She was interviewed last month by the Wall Street Journal and other business publications in New York.

Last month's speaker, Grassroot Institute of Hawaii, Inc. president, Dick Rowland spoke on "Think Tanks and their impact in Hawaii."

Emphasis at Sunrise is on business networking. Cost is only $20 for SBH members and their guests who pay in advance; $30 for non-members and at the door, provided space is available.

Call Small Business Hawaii at 396-1724 to get a reservation form or clip it out of the printed copy of the Small Business News.

Senate - House Investigators on
Trail of Felix Money Abuse

The 12-member bipartisan Senate-House Felix Investigation Committee, set up by concurrent resolution in May, first met in June, then July 13. The Committee is charged with tracking the more than $1.4 billion in funds already spent since 1994 to make sure that money went for services due special education children in the public schools. Complaints have come from lawmakers, the state auditor and parents of children that money has not been accounted for and services not provided.

The extraordinary legislative Committeee, headed by State Senator Colleen Hanabusa and State Rep. Scott Saiki, had intended to issue two subpoenas for the first witnesses, but was blocked in its efforts by the federal court overseeing the Felix v. Cayetano special education consent decree. State Auditor Marion Higa testified - under oath - and said she was blocked from getting financial information previously and believed that a "culture of profit" has developed along with conflicts of interest involving some administering the Felix programs.

Attorney Eric Seitz, supposedly the "plaintiffs' attorney" in the Felix v. Cayetano special education decree, threatened the legislative committee and tried to block it from doing its business charging that only "crybabies and critics" are concerned about the $1.4 billion already expended. Some have questioned the fees Seitz has received and some parents charged he doesn't really represent them. Seitz says investigating where the money actually went is an excuse to delay or deny delivery of services. Seitz called respected state legislative Auditor Higa "incompetent." Seitz, working with federal Judge David Ezra, had legislative subpoenas against the Felix Monitor (Ivor Groves) and his assistant, "quashed" before they were actually served. Higa says Groves and others have stonewalled previous attempts to answer financial questions.

Groves, who has been involved in similar special ed problems in other states, may have profited from his position here. Another member of his "non-profit" organization in Hawaii was indicted on fraud charges in North Carolina after she served in Hawaii. Serious allegations being investigated paint a picture of alleged conflicts of interests, huge attorney fees ,and money diverted from the special needs' students.

The Committee will next meet in August. All meetings at the Capitol are open to the public and are being televised on Olelo. Lawmakers will isssue another 18 subpoenas. Included are the Health Director, Bruce Anderson, DOE Superintendent, Paul LeMaheiu and the chair of the Board of Education. Legislators say the days of just writing out checks without accountability must end.

This could be as big a scandal as the Bishop Estate Trustees.

Reapportionment Commission Drawing Interest

The State Reapportionment Commission is hard at work redrawing state congressional, house and senate district lines for use in next year's elections. The reapportionment occurs every 10 years and reflects changes in population from the Census.

During the past decade, the Neighbor Islands - especially Maui - Hawaii, and leeward Oahu experienced the most growth and will benefit from increases in house and senate seats. The draft plans will be the subject of public meetings on all islands and a final map must be approved by October.

The eight Commissioners are appointed by Democrat and Republican legislative leaders. (A separate County Reapportionment Commission deals with council districts). Present Commissioners, who have been meeting since May include: Deron Akiona, Jill Frierson, Lori Hoo, Lynn Kinney, Kenny Lum, Harold Matsumoto, Shelton Jim On and David Rae. (Jim On replaced attorney Rick Clifton in July after Clifton was nominated by President Bush for a federal judgeship). The members selected retired attorney and financier Wayne Minami, as the Commission Chairman. State Elections chief Dwayne Yoshina is the Secretary to the Commission.

In addition to the Commissioners, an appointed 16-member statewide Advisory Council includes: (O'ahu) Stephen Goodnow, Jim Hall, Robert Ogawa and Geal Talbert; (Maui), Mark Andrews, Manuel Moniz, Jr., Fred Rohlfing, and Madge Schaefer (Hawaii) Georgine Busch, Frank Jung, Wayne Metcalf and Shirley Spencer; and Kauai) Betty Chandler, Dennis Esaki, Jerome Hew and Trinette Kaui.

The Commission website is www.hawaiiredistricting.org. The phone number is (808) 587-3902.

Aloha Swap Meet Problems Increase

by Jim Cablay, Aloha Swap Meet Vendors' Association

Two years ago, Michael Green, then Chairman of the Stadium Authority, in a meeting with Aloha Stadium Swap Meet Vendors promised a bigger, better, more profitable Swap Meet. Most of all he promised open communications with Vendors and Stadium Management. Two years later, the Swap Meet is smaller, and the business climate has gotten worse but most of all there is no open communications with the Vendors and Stadium Management.

In a recent Vendor's survey, Vendors overwhelmingly disapprove of the way the Swap Meet is being managed. Vendors found Consolidated Amusement who manages the Swap Meet for the State, to be lacking in managerial skills and people skills. Their recent change of a "forced full repayment of stalls" within a 30-day period will not be sufficient time for some Vendors to adapt. For those Vendors who are unable to adapt in that 30-day period, they will lose their place of doing business.

The possibility of double renting a stall does not sit well with most Vendors. Is this ethical?

As the management of the Swap Meet, Consolidated Amusement does have the responsibility to increase the revenue at the Swap Meet but not at the expense of the Vendors.

They do very little in the way of advertising even though they have an advertising budget from the State. Oops sorry, they do some advertising in their theatres and even sometimes in their theatre column in the newspaper, but isn't that like paying themselves with money funded by the State?

One of the Vendors' greatest concerns is that we are not treated as professional business people and there is no open communication between Swap Meet management, the State and the Vendors. After all, the Swap Meet provides more revenue than all the other events staged at the Stadium combined including the Pro-Bowl, UH games, college bowl games, high school sporting events, the 50th State Fair, and the Farm Fair just to name a few. We don't even have representation on the Aloha Stadium Board.

We the Vendors know business can be better, we know business should be better and we know how to make it better but no one will listen to us...yet.

Domestic Violence at Work

Domestic violence does not confine itself to home. It follows victims everywhere, including to their work. In fact, supervisors are often among the first to notice its signs-bruises, absences, fluctuating performance, low productivity, difficulty concentrating, anxiety, depression, frequent phone calls. Or, maybe the signs point to the perpetrators, usually husbands or boyfriends who exhibit aggressive behavior, angry outbursts, demeaning or threatening discussions with wives or girlfriends.

As employers, supervisors, managers, and coworkers, we should understand the toll this abuse takes on the victims themselves and on their work. Put into numbers, domestic violence costs U.S. employers $5 billion annually in absenteeism, lost productivity, medical care, stress, turnover, and violent acts. Everett Koop, former U.S. Surgeon General, called it an epidemic.

What can managers do to mitigate the very real dangers of domestic violence and to improve productivity? The Domestic Violence Clearinghouse and Legal Hotline has a new program to help employers understand the nature of domestic abuse. It Can Happen in Your Workplace: Be Aware and Be Prepared is designed to disseminate information, provide consultation, and training. The better informed an employer is, the more likely that victims will make reasoned choices, with less impact on their workplace, their coworkers, and their performance. This new program is supported with VAWA funds, administered by the Department of the Attorney General.

Be among the employers that are supportive, well informed, and equipped to assist victims in their efforts to get free and safe. Develop good policies, safety plans, and know how to help your employees-victims or perpetrators-find the resources they need. Obtain the newly developed Domestic Violence Guide for Employers, free of charge.

Call Jane Chong, Project Facilitator, at 988-5813 or email her at jvsaloha@aol.com to inquire about the program, which is available to employers free of charge.

SBH's Expo expands to 'Industrial Trade Fair'

This year, Small Business Hawaii will take its 4th annual trade show to the audience! Business and industrial exhibits, large and small, will be presented in an air-conditioned structure, under canopy tents, and in open air spaces at Kapalama Military Reservation (KMR) on Sand Island Road this November 2 - 3. A Friday afternoon (November 2) pau hana opening will feature live entertainment and plentiful refreshments. The Fair will be open all day Saturday (November 3) and will include a variety of special events such as a Forklift Rodeo and Backhoe Tournament with cash prizes for the most proficient and safe operators. A full scale industrial equipment (used) tag sale/auction is planned. Workshops on industrial health and safety, forklift certification and CDL training will be offered.

Producer Mike Rossell of Production Hawaii says the buzzword of this event is "inclusion!" "We want the entire company ohana to attend this Fair-not just the owners and CEOs. This is an event where hands-on evaluation can be made of available business and industrial products and services. Successful managers usually include their key people and top workers in the buying process, and that is what this show will encourage," Rossell said. The exhibitor mix for the SBH Fair is targeted to include companies dealing in construction, transportation, material handling equipment, plant engineering, maintenance services and supplies, high technology, telecom and general business products and services. Industry associations, government and military purchasing and many other useful presentations will also be inlcuded.

Rossell promises the Fair will be affordable with exhibitor space starting at just $225 and free admission and parking. For early reservations call Production Hawaii, 832-7878. Members should call SBH at 396-1724 for special member exhibitor rates.

SBH Membership Drive in Full Throttle

By Jay McWilliams SBH Membership Associate

The first two weeks of the Small Business Hawaii membership campaign, started in July, proved to be everything that was expected and more. Hundreds of phone calls and in-person conversations led to dozens of interviews, which resulted in several new SBH members coming on board.

The word "campaign," describes exactly what has gone into spreading the word about the benefits of joining this strong business advocacy group. As a noun, campaign is defined as a crusade, drive, effort, expedition, push, attempt and siege. As a verb, it means to canvass, lobby, strive, support, solicit, drum up, poll and prospect. In just a few weeks, every definition has applied in one situation or another.

But it's not difficult to promote SBH, given all the positive aspects of being a member. The idea of businesses helping each other survive the difficult business climate in Hawaii is the number one draw to attracting new members, especially the smaller, one-person shops that usually lack any kind of support network. No other organization offers the networking opportunities, watch-dog capabilities and practical business advice and consulting avenues as are found with the 2,000 member firms of SBH. Long-time members say it's worth joining SBH just to keep informed about issues that affect all businesses in Hawaii. The monthly newsletter, the Web site, the networking opportunities, the regular meetings that feature great speakers, and being able to call the office with questions at anytime are what make SBH stand out as a valuable business resource for any size business in Hawaii. As someone finding out about SBH remarked, "You get a lot more bang for your buck with SBH than you do with other organizations."

While it's easy promoting SBH, the real challenge is finding serious prospects. If anyone would like to help with this membership campaign, please call, fax or e-mail the SBH office with the names of business folks who may be interested in finding out more about the organization. Just a couple of leads from every member would move this membership drive full speed ahead.