The next Small Business Hawaii member Share N' Tell Networking Luncheon will be Tuesday, July 31, 11am - 2 pm, at the Waialae Country Club in Kahala. Easy access and free parking is available. A buffet lunch is featured.

Members and their guests will network and "share n' tell" selected business strategy "table topics." Workers' compensation, marketing, internet business, employee issues, and taxes will be included. You select a topic of interest to you. Bring your business cards, handouts and exhibits too! (Free display tables available). All attendees will be introduced and can talk about their business.

The luncheon speaker is Honolulu Magazine managing editor, A. Kam Napier, who will discuss his recent cover story, "The Death of Public (Government) Schools in Hawaii."

Share N' Tell Networking is just $20 complete for SBH members and their guests paying in advance (refunds until July 30); $30 for non-members and at the door - provided space is available. You'll network, meet new people and do more business. Reserve now!

Super Sales Gals want to sign you up!

During the month of July, Oahu small businesses can expect a visit from one of Small Business Hawaii's Super Sales Gals: Jay McWilliams, Susie Sadur and Joey Tynecki. Please welcome them! If you are not a current member of SBH, our super ladies want a chance to talk to you about the benefits of joining and networking in Hawaii's most effective small business advocacy organization. There are many new businesses who are not aware of SBH's 25 years of strong representation of Hawaii's small business community. If the super gals miss you and you want a personal visit and more information, or you are on a Neighbor Island, please call SBH at 396-1724 (FAX 396-1726).

Privatization Opportunities
for Small Business

Reason Public Policy Institute (RPPI) executive director Adrian T. Moore will speak at a special breakfast Privatization Workshop on Thursday, July 19, 7-8:30 am in the Liberty House Pineapple Room, Ala Moana Center, sponsored by SBH and member Grassroot Institute of Hawaii, Inc. Easy access and ample free parking on the 4th floor of Ala Moana.

RPPI is the research division of the Los Angeles-based Reason Foundation. Dr. Moore, has a Ph.D in Economics from UC-Irvine (and Master's in History from CSU-Chico), oversees all Institute policy research.

Moore's own research centers on government policy and regulatory policy. He is publisher of the monthly newsletter, Privatization Watch and the Annual Privitazation Report.

Hawaii recently passed landmark privatization legislation actively supported by Governor Ben Cayetano.

Seating is limited - advance registration is a must! Bring a business associate. Cost is $25 for SBH members and their guests paying in advance; $35 for non-members and at the door, provided space is available.

Dick Rowland Next Sunrise Speaker

The growing number-and impact-of private think tanks, nationally and in Hawaii, will be the theme of a presentation by Dick Rowland, at the next monthly SBH member Sunrise Networking breakfast,Thursday, July 26, 7-8:30 am in the Liberty House Pineapple Room, Ala Moana Center.

The Networking Breakfast is open to all SBH members, their guests and the public. There's easy access and plenty of free parking on the 4th floor of Ala Moana.

Rowland is president of member Grassroot Institute of Hawaii, Inc., an independent, non-profit, research firm which is preparing to launch major studies relating to Hawaii's small business climate.

Last month's speaker, Democratic State Senator Colleen Hanabusa spoke on "Privatization and Structural Changes During the 2001 Legislature." Advance registration is a must!

Cost is only $15 for SBH members and their guests who pay in advance; $25 for non-members and at the door, provided space is available. The reservation form is located on page 8.

Special Legislative Session Held
- Felix Investigation Underway

The regular 20th State Legislature ended on May 3 but Governor Ben Cayetano called the House and Senate back into a five-day Special Session, June 4-8. There had been rumors that Federal Judge David Ezra might force another session because of "inadequate" funding of the Felix Special Education Consent Decree. But it was a House Clerk's error-not Felix-that forced the $18,000 Session. The mistake was that two bills, one dealing with the state Judiciary budget, another with the budget for the Office of Hawaiian Affairs (OHA), were sent to the Governor from the House before the bills passed the Senate. It was thought this could cloud another bill, authorizing issuance of general obligation bonds. So, all 76 lawmakers were called back to do it all over again. (About half a dozen legislators did not attend; they were on previously planned trips or conferences).

Attempts by House and Senate Republicans to address other issues-such as the Professional Employer Organization (PEO) bill and vetoes-were given short shrift by the Democratic leadership. The thought was, it was a full session and would not have cost 1¢ more to deal with thorny issues, but leadership balked. As reported last month in the 2001 legislative wrap-up, a last minute casualty was the positive business PEO tax bill, HB 502, which would eliminate the spectre of yet another layer of 4% GE taxes for the PEOs and their small business clients. The culprit at the last minute was Big Island Democrat union Representative, Dwight Takamine. Some say Takamine killed this measure - previously supported by all lawmakers, the tax department and organized labor (until conference committee) - in retaliation for the passage of the privatization and union health fund reform bills. A move by Senate Republicans in the 5-day Special Session to resurrect the measure was put down by the Majority Party (as expected), but also, and more disappointingly, by the lobbyist-attorney for the PEOs who seems to be more comfortable only dealing with leadership Democrats behind the scenes than with business-supportive Democrats and Republicans. It was a real disservice to small business.

On June 19, the joint Senate-House Felix Investigating Committee began meeting at the Capitol to formally-with subpoena powers-examine where the $1.4 billion (since 1994) has gone for Felix special education students. The object is not to delay or stop the expenditures but to discover if the money actually went to required care for the students. Committee members appointed by the Senate President and House Speaker, included, co-chairs, Sen. Colleen Hanabusa and Rep. Scott Saiki; Senators Jan Yagi Buen; Russell Kokubun; David Matsuura; Norman Sakamoto, and Sam Slom. House members include: Ken Ito; Bertha Kawakami; Bertha Leong; Blake Oshiro and David Pendleton.

The Governor had vetoed only 5 bills by early June but added more than two dozen more - after the Special Session ended, including the controversial "age of consent" measure that would have raised Hawaii's lowest in the nation age 14 for sexual relations with older predators. Republicans renewed their call for a veto override which would require another special session (it could be done in one day). The Majority initially refused. The last time a veto override was even attempted, was 1957, even though many bills since have passed both houses with a perfect vote and community support. The Governor did veto several "bad bills," including a selective unemployment comp extension bill; a costly "booster" seat bill, transfer from the employer training tax to a manufacturing program, and a bureaucratic "smart growth" initiative. He has until July 10 to veto additional bills.

Political hot air balloon
floated, then deflated

By Malia Zimmerman

It was at the Building Industry Association's June dinner meeting where more than 100 people gathered to hear the newly elected head of the Democratic Party, Lorraine Akiba, share some fantastic, earth-shattering and most unexpected news: there is a "New" Democratic Party in Hawaii!

In a 45-minute speech, Akiba, head until recently of the most notoriously anti-business department in the state, the Department of Labor and Industrial Relations, shared her philosophy of exactly what is this New Democratic creature. Playing to an audience of largely Democrats, including many elected Democrats, Akiba discussed how The New Democrat will help business, specifically small business, the construction industry, the keiki and the average taxpayer.

The New Democrat she described is tough yet compassionate, not beholden to anyone, innovative, visionary, not in politics for the "short bad fix," like the $300 to $600 per person tax cut offered by the Congressional Republicans that "will cripple the state in the long term." The New Democrat is "into spending" and modernization of government services, "invests in human capital," here to make sure "Hawaii's keiki have a bright future." The New Democrat is in the game for the long haul and understands private business, the needs of small business and how to make the local economy boom. The New Democrat is non-partisan, fiscally responsible, has a proven track record and is the solution to Hawaii's problems. Most importantly, The New Democrat believes Hawaii's people should forget economic and social problems of the past to simply focus on the future.

The audience learned that putting the word "new" in front of "Democrat" erases two decades of record bankruptcies and business foreclosures. The "New Democrat" doesn't worry that Hawaii was rated dead last in economic growth during the 1990s by the U.S Commerce Department and Hawai's people carry the third highest tax burden in the nation. More than 110,000 of Hawaii's best and brightest citizens left in droves for a place where their talents and money means more and takes them farther, or that state and city government agencies to attack critics of the Democratic Machine.

The "new" absolves billions of wasted taxpayer funds, including the $30,000 to $100,000 it costs to "educate" each child with special needs in the public school system. Finally, The "New" Democrat has no knowledge of bribes or other illegal acts committed by Democrats aligned with ousted Bishop Estate trustees, documented in the 40,000 dusty legal pages locked in the Democratic-appointed state attorney general's office.

At the conclusion of the speech, Akiba was asked two simple questions that seemed to quickly deflate the hot air balloon she'd just trialed, not because of the questions, but because of her answers.The questions: What percentage of the Democratic Party is considered "New;" and "who of the many elected Democrats present in the room did she consider a "New" Democrat?" The answer: only a generalization that most Democrats in the room (including Sen. Cal Kawamoto) are probably a New Democrat. Not one Democrat in the room, however, rose to the challenge and claimed their glorious badge of honor.

Volunteers sought for Junior Achievement

Do yourself and Hawaii's children a favor - get involved with Junior Achievement. JA is recruiting classroom consultants for the new school year. Junior Achievement volunteers play an important role in our community by educating and inspiring young people to value free enterprise, business and economics to improve the quality of their lives. JA provides all the training and materials so you can feel comfortable teaching our engaging interactive curriculum to the students. Minimum commitment is the training session, one in-school visit with the teacher, and five (5) one-hour class lessons. Share your real-life experiences and become a role model to Hawaiiís students. Opportunities available on Oahu, Maui County, and in East Hawaii (Hilo). Secondary school students are welcome

Junior Achievement of Hawaii is also looking for administrative volunteers to help with a variety of office tasks at our convenient downtown office. Minimum commitment is 4 hours per week for a minimum of one month. Call Carolann Biederman at 545-1777 ext. 15 or visit the JA Hawaii website at www.jahawaii.com to get involved.

Straight Talk About Medical Benefits

Our poor office manager, Joey Tynecki, has been bombarded with telephone calls-many of them unfortunately, hostile and incoherent- during the past month regarding Kaiser Health Plan's decision to require a state Department of Labor (DOL) number and supportive tax data in order to continue with group medical rates after July 1.

Let's review. SBH pioneered comprehensive group small business medical (plus dental, drug, vision and other extras) plans 20+ years ago and offered members low cost choices, but is not in the insurance business, never had a financial interest, nor made 1¢, from any premium paid by members. All of SBH's printed membership materials and applications have always stressed that SBH does not sign up anyone for benefits (auto, medical, work comp, etc.) alone because the decisions on coverages and premiums are made by the insurance (HMO) firms. SBH wants to make Hawaii a better place and members are expected to actively participate to bring that about.

A little over a year ago, SBH was continuing to offer members discounted group medical through one of five providers: HMAA, Kapiolani HealthHawaii, Kaiser, Queen's, or University Health Alliance (UHA). Since then, Kapiolani was acquired by HMSA who does not offer small business group plans to organizations; Queen's went out of the insurance business; HMAA declined to offer group organizational coverage; UHA had problems with the state regarding alleged unauthorized reduction in its reserve fund. Kaiser, which had supported SBH members for nearly 20 years, decided to follow other providers and require a DOL# and employees - effectively ending comprehensive group coverage for independent contractors and sole proprietors without employees. But Kaiser agreed to extend coverage without DOLs for another year, until June 30, 2001.

These changes in medical options were prominently discussed in the June, 2000 SB News, several additional issues prior to June 2001, at SBH business and networking forums, and in letters sent by Kaiser to its subscribers. Attempts by SBH since June, 2000 to secure alternative coverages, failed because of Hawaii's mandatory Prepaid Health Care Act-passed in 1974 and after 26 years still the only one of its kind in the U.S. The Act encourages health provider monopoly while discouraging patient choice, competition, and new companies. Nevertheless, several Kaiser-covered SBH members expressed "surprise" about the June 30 deadline; more disturbing were those that said they either didn't read their newsletters, don't attend member functions, didn't acknowledge notices and letters from Kaiser and were basically only in SBH for its benefits - not to improve Hawaii's business climate. This from some business owners who should and must know better. But then, many of today's Hawaii business owners do not get involved in business and professional organizations, do not have a storefront, or employees, yet expect someone else to provide them with benefits without responsibility.

We appreciate and value our members and strive to add benefits. But the biggest benefit is that SBH has always been there for more than 25 years, advocating in behalf of small business in Hawaii, and will continue to do so if employers recognize the need to work together for a common goal. Let SBH know how you feel about this.

New Credit Card Benefit Offered

Again, Small Business Hawaii is leading the way with new small business member benefits. As of July 1, SBH, along with its new member-partner, RPS Hawaii, will offer members a choice for Visa and MasterCard credit card processing with special member rates. And an exciting new SBH Visa card (personal or business) with very competitive rates.

RPS Hawaii is Retriever Payment Systems, a subsidiary of the First National Bank of Omaha (FNBO), with 353 offices nationally. Retriever is a $67 million U.S. Corporation, headquartered in Houston, Texas. Retriever conducts its Merchant credit card processing through First of Omaha Merchant Processing in Omaha, Nebraska. FNBO Processing is a top ten Merchant processor and the second largest in-house bank processor nationally. When you do business with the Retriever and FNBO Merchant Processing team, you are affiliated with an organization dedicated to providing the outstanding service that has been the foundation of our payment processing operations.

FNBO began processing in 1953, one of the first 3 U.S. banks that began issuing credit cards nationally, and processed nearly $20 billion in transactions last year. The only U.S. bank that sits on the Visa and Master Card Advisory board, the Interchange. With $10 billion in assets, $8 billion in trust, 6.6 million customers, and 6,000 employees nation wide.

RPS Hawaii offers 12 exciting related Merchant Services program packages: Credit & Debit Card Processing; Electronic Check Conversion; ATM Systems (including Mobile- Fast Food ATMs); Logo Debit Gift Cards w/Loyalty programs; Small Business Visa & Master Card Issuance; Internet Processing (Merchant & Transaction Manager); International processing, w/currency exchange; ACH Billing; PC Software packages; Wireless/Mobile systems processing; Dr. Pay and Voyager

Key service features RPS Hawaii offers: The Lowest rates nationally, guaranteed for the term of contract; no declines & 99% financing (all business types, regardless of credit history); Premier Customer Service (24/7 Tech Support) including Rep's on Island in Hawaii; Credibility: Chamber of Commerce, Better Business Bureau, Restaurant Association & Small Business Hawaii members and a local regional office located in Honolulu.

Being a major processor means more than just providing Merchant credit card processing services. Retriever and FNBO continue to develop our resources to offer the best combination of products and services for your Merchant needs, RPS Hawaii offers a unique and complimentary selection of related Merchant Services programs, including several that are proprietary and exclusive. By joining RPS Hawaii, you eliminate the risk of merchant fraud losses due to an inadequate smaller operation unable to tap into national resources, avoid the typical extra expenses associated with surcharges and hidden fees that the other processors and the banks routinely add on, and receive the highest caliber of customer service in the industry. Retriever prides itself on ensuring your satisfaction in all respects, developing long-term business-to-business relationships.

Contact C.J. Kelly, regional manager of RPS Hawaii at 350 Ward Ave., Suite 106 -217 Honolulu, HI 96814, phone: 808-947-Visa Fax: 808-591-9928, or contact SBH for information.