Small Business Hawaii
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Small Business News
February 2004



Workers Comp, Health Care Reform,
Taxes on Front Burner of Legislative Agenda

The 22nd State Legislature convened Wednesday, January 21, for its 60-day session until May 6. Battle lines were drawn early: education reform, taxation and business issues.

A Constitutional amendment to change the bloated education bureaucracy and bills to increase taxes, new government programs requiring more spending, and millions to deal with the “ice” drug problem in Hawaii are on the front burner. So too is a contentious session as Democrats try to block any more gains by Republican Governor Linda Lingle and gird for a battle for control of the House during the upcoming November elections. No leadership changes are anticipated from last year.

All bills from 2003 are technically still “alive.” Among them are proposals for a county sales tax and a payroll deduction tax to fund long term care. Among new bills introduced are a revival of the photo red light camera program, an increase to the general excise tax to fund a fixed rail mass transit system, elimination of the corporate income tax, reforms to the State Prepaid Health Care Plan and the repeal of the binding arbitration process for unionized state workers. Workers compensation reform includes tougher fraud penalties.

As was stressed by speaker after speaker at the January 14 SBH annual conference, progress can be made this year but only if small business has a major presence during this year’s session. You are urged to come to the capitol to testify for or against those bills that will impact your business.

Dan Morin, the chief of staff for Councilmember Djou, passed along an important story of Maine’s Rx subsidized drug program. Hawaii Democrats push this legislation but fail to tell you, its not the big pharmaceuticals who suffer, it is the small business pharmacies who really foot the bill for this ill-advised government mandate. Complete story at http:/ www.sunjournal.com/story.asp?slg=011504rxx. The Maine Baldacci administration acknowledged that Maine pharmacies, not the pharmaceutical industry, will be paying for prescription discounts that began last month under the new Maine Rx Plus program.

SB News and the SBH website (www.smallbusinesshawaii.com) will keep business owners up to date with the latest issues and progress. Sources of more information regarding the legislative process and bill status can be found at the following websites:

2004 HAWAII STATE LEGISLATURE LINKS

Hawaii State Legislature | Bill Status & Documents
State Senate | State House | Special Studies
Public Access Room | Legislative Reference Bureau | Governor's Office

  • Where Legislators Stand on the Issues
    From the Honolulu Advertiser, January 18, 2004.


    RETURN TO FEBRUARY 2004 SB NEWS PAGE


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