SBH Sunrise March 25
State Senator Colleen Hanabusa

Wed., March 10
SBH Board Meeting
Pacific Club | 12 noon

Sat., March 13
Amazing Women Conference
Moana Surfrider Hotel
10 am to 5 pm

Tue., March 16
Aiea-Pearl City Business Association
Pearl Country Club | 12 noon

Tue., March 16
JA Hall of Fame Awards
Sheraton Waikiki Hotel
6 to 9:30 pm

Thurs., March 25
SBH Sunrise
State Senator
Colleen Hanabusa
Pineapple Room | 7 - 8:30 am

Don't miss our Small Business Hawaii Sunrise Networking Breakfasts. This year we have featured author and entrepreneur Bob Sigall (top left, signing his book, "The Companies We Keep") and City Councilman Charles Djou (top right). Our Sunrise speaker for March is State Senator Colleen Hanabusa, shown with SBH President Sam Slom (front and center) who are weekly regulars on Rick Hamada's morning talk show. The SBH Sunrise will be on Thursday, March 25. More details at this link.

Legislature Near Halfway Mark,
No Business Reforms Passed

The 22nd State Legislature convened Wednesday, January 21, for its 60-day session lasting until May 6. It is approaching the halfway mark with no business—or education—reforms passed.

Increased taxes and fees, additional employer mandates—and penalties—and more spending have marked the first 30 days. As previously forecast by SBH, majority Democrats have expended their energy to block further gains by Republican Governor Linda Lingle and to strip power from the executive branch.

All bills from 2003 were technically still “alive for 2004 until the first “lateral,” February 20, when they had to pass out of their first committee. Many did not survive that lateral.

Small Business Hawaii has been on top of daily legislative events and emailed business alerts to interested members.

Workers’ compensation reform is a majority priority for small business this year. The Lingle Administration offered a reform bill, HB 2486 / SB 2961, which was heard before Rep. Marcus Oshiro's committee on Tuesday, Feb. 17. Among other things, this bill: establishes a definition for the term "attending physician;" excludes from the definition of "employment" service performed by a member of a limited liability company, a partner of a partnership, a partner of a limited liability partnership, and a sole proprietor; disallows compensation for mental injury or illness (stress) caused by good faith personnel actions; allows an employer to require an injured employee to select a physician from an employer designated healthcare provider list for medical service for the first 120 days of treatment. Limits charges for emergency room services; revises provisions relating to plans of rehabilitation; clarifies when benefits may be terminated if a false claim is filed; validates arbitration agreements and mediation, and allows the Insurance Fraud Investigations Branch to initiate prosecutions and disciplinary actions — something SBH has advocated for 20 years.

Minimum Wage Hike Sought—Again. Each year, union and special interests seek to increase business costs by calling for a raise in the mandated “minimum” (or “living”) wage. The federal minimum is currently at $5.15 per hour; in Hawaii, it is $6.25. Remember, the minimum wage is really an entry or training wage and most small businesses spend a great deal of time training and giving basic education to new employees. The minimum wage also destroys jobs. Senator Brian Kanno (D-Makakilo) held a hearing last month on his bill to increase the minimum annually, tied to the federal COLA or a local price index. The bill passed his committee with only Sam Slom (R-Hawaii Kai) voting no.

Abusive Workplace, was the title of another Kanno bill (SB 2353) that would create yet another cause of action for the employee against the employer. No testimony or factual backup was offered.

Substance abusers rewarded, employers criminalized in the original version of SB 3233 / HB 2003, the anti-drug, “ice” bill, heard at a 5 hour Saturday hearing, February 7. This majority Democrat omnibus would fine and/or imprison employers for not providing drug training programs and continued health insurance coverage for abusers terminated for at work drug use. This is the clear trend of the majority: forgive individual excesses; make victims of the undisciplined, and penalize the employers for every governmental failure. The bills were modified prior to crossover but still are top heavy with treatment vs. incarceration.

SB 2588 would increase your employee prepaid health costs even more because the 20-hour per week formula was changed. Senators Slom and Norman Sakamoto (D-Moanalua) teamed up to “kill” the bill in the Labor Committee. Remember, nothing is really dead until the Session ends May 6.

County Tax Bills on Hold During Election Year. The bill (SB 2050) to add a retail sales tax for the counties—in addition to the General Excise Tax—was held in the Senate; the House had pledged “no new taxes” this year. All 51 members of the House and 12 of 25 Senators are up for election this November.

Many good bills were not heard by the majority. Bills that would reduce the burden on employers, provide tax credits for employer mandates, and economic stimulus measures were never scheduled for a hearing. Other bills may be included in measures before they reach Conference Committees in April. Tax and fee bills are still alive and a threat to business, as are further mandates.

Education reform, supported by business, is still the major debated issue at the Capitol. Stay alert for opportunities to weigh in on important issues this month and next. Contact SBH for assistance.