Small Business News
February 2005 | Online Edition
Hold on to your wallets. The Legislature is in session!
Taxes, Transit & Law Enforcement Among Session Issues
The State Legislature began its annual 60 working day session January 19. It concludes May 5.
New tax initiatives, more business regulation and special funds’ raids will most likely be in order with neither the Governor nor Republican lawmakers able to stop the Democrat advance. There is no veto proof legislature and few business-oriented solutions.
Issues still hanging and in need of repair are: workers’ compensation reform, prepaid health care premium reform, tax reduction and regulatory relief for small business.
Rep. Sol Kahoohalahala, D – East Maui, Molokai, Lanai, resigned January 5, leaving a vacant seat in the 51-member House of Representatives. The Governor by law has to replace him with a Maui Democrat. As of presstime, a successor had not been named.
In opening remarks, Senate Democrats surprised many by supporting tax reductions for certain middle class taxpayers. However, they also advocated a tax-funded rail transit system and additional spending. House Democrats called for an increase in the General Excise Tax, a county tax for rail and an increase in the Conveyance Tax to purchase “legacy lands” adjacent to waterfront.
Democrats and unions will again oppose workers comp and fraud reforms. Business needs to be on the alert as more business fees, regulations and mandates—including higher minimum and “livable” wages— will be proposed by the majority Democrats.
Legislative Push Again for Physician
Assisted Suicide Legislation
Legislation to allow Physician Assisted Suicide, which allows physicians to help terminally ill patients die on their schedule, is being revived again by the Democrats in the Legislature. And according to pro-life advocates concerned about the legislation, which is legal only in Oregon, the Democrat leadership may be playing games at the Legislature to get the legislation through by assigning the bill only to one committee (Judiciary) stacked with proponents of the legislation. Typically the legislation would go to the Health Committee first. Lobbyists against Physician Assisted Suicide say they want a fair hearing via the House Health Committee, where doctors, nurses and other healthcare professionals can give their point of view.
2005 Law Enforcement Coalition
Legislative Package Outlined
The Hawaii Law Enforcement Coalition — Hawaii’s four County Prosecutors, four Police Chiefs, the United States Attorney, and the Hawaii Attorney General — has announced a legislative package of seven bills designed to protect the public; fight illegal drugs; deter and punish public corruption; reform laws regarding sentencing and testimony; form domestic violence fatality review teams; protect the public, especially children, from sex offenders; and ensure that blank votes and overvotes are not counted in determining whether a constitutional amendment has been ratified.
The members of the Law Enforcement Coalition support a broad range of bills that protect the public safety, help law enforcement, and help to restore balance to the criminal justice system. Each of the seven bills included in the Coalition’s legislative package has the unanimous support of every member of the Coalition.
The following bills comprise the 2005 Law Enforcement Coalition legislative package:
* Electronic Surveillance: Hawaii’s electronic surveillance law is outdated and unusable. This bill gives law enforcement the tools it needs to help fight sophisticated drug dealers (without incorporating any part of the USA Patriot Act.) These same tools are used by law enforcement throughout the United States.
* Bribery: A bill to strengthen Hawaii’s bribery law will designate the existing crime of bribery as Bribery in the First Degree, and increases the penalty to ten years; and Creates two new offenses related to illegal compensation of public servants: Bribery in the Second Degree, and Unlawful Gift to Public Servants.
* Sentencing Reform Provides for a mandatory sentence of 30 years to life for habitual violent felons (as recommended by the committee created by S.C.R. No. 86, 2003 Regular Session, to determine whether Hawaii should enact a three-strikes law) Adds 15 serious class C felonies to the list of offenses subject to repeat offender sentencing.
* Testimony of Defendants in Criminal Cases Amends the state constitution to allow testifying defendants in criminal cases to be impeached with evidence of prior convictions for crimes involving dishonesty.
* “Yes” means “Yes,” “No” means “No,” “Blank” means “Blank” Prohibits the counting of blank votes and overvotes in determining whether a proposed constitutional amendment has been ratified.
* Public Information about Convicted Sex Offenders Gives the public web and walk-in access to information about convicted sex offenders.
* Domestic Violence Fatality Review Authorizes the Department of Health to form domestic violence fatality review teams.
The Governor delivered her third “State of the State” message on January 24, after missing the January 19 opening to attend the Washington, D.C. inauguration of President George W. Bush. Lingle appeared to try and strike a conciliatory tone with the Democrats who saw their large majorities increase after the November 2004 election.
Lingle came out strongly for Charter Schools, further public school reform (but not decentralization), the University of Hawaii, and private-public initiatives for affordable housing and the homeless, as well as some middle class tax credits. She appeared less passionate about overall tax reduction, especially for business, though she did propose a long term care tax credit. She is introducing her work comp fraud reform bill again but there is little hope of passage with massive union-Democrat opposition. Lingle also mentioned the DCCA license and fee cuts and will extend the Department’s authority to continue, and she drew a line at expending any additional Highway Special funds for purposes other than highway repairs and construction.
Democrats and unions seemed pleased with the Governor’s tamer message, because they took her tone as further evidence that they are truly in charge and will set any agenda.
Sadly, both the majority party and the media are treating the House and Senate Republicans as if they didn’t exist, ignoring press conferences, press releases, bill introductions and floor speeches. That means business, and the public, will rarely get any indication of opposition to the Democrat juggernaut this year—unless they go to SB News or Hawaii Reporter on line.
SBH will remain strong for business and plans to challenge any new tax, excessive spending, or regulation affecting business.
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