SBH Sunrise
April 26, 2007
Ron Martin
Author, Entrepreneur, Speaker

Monday, April 9
SBH Board Meeting
SBH Office | 12 noon

Thursday, April 26
SBH Sunrise Networking
Ron Martin
Macy's Pineapple Room
7 - 8:30 am

Friday, April 27
U.S. SBA Small Business
Awards Luncheon
Hyatt Regency Waikiki Hotel
11 am - 1:30 pm

SBH TV
Sundays 4:30 pm
Channel 54

INSIDE THIS ISSUE

The legal community were all smiles on March 16 after Glenn Kim was appointed to the Third Circuit Court after a long Senate floor session. 11 Democrats joined with the 5 Republicans to approve Kimıs nomination for a 16 to 9 approval. See HawaiiReporter.com.

Lackluster Legislature Heads for Adjournment

The 24th State Legislature is scheduled to adjourn Thursday, May 3 and has thus far been lackluster at best.

While big ticket spending, Native Hawaiian, land and agricultural bills have been moving, no such luck for small business. Workers’ comp, unemployment comp and tort reform have all been silenced.

Proposed new spending and taxes, such as “anti-speculation,” conveyance and income tax hikes and the so-called “Streamlining tax” (backdoor internet tax) have gotten a lot of play. So is the annual push for “clean” (aka “voter owned”) taxpayer subsidized political campaigns. Don’t forget “the environment (mostly anti-investment).”

The Hawaii Smokers Alliance and the Hawaii Bar Association (not the lawyers) launched a major attack on Hawaii’s 2006 smoking ban and managed to get 1/3 of the legislators to commit to reverse the ban, but nothing substantive is likely this session.

The entire session is being driven (as always) by multi-million dollar public union (HSTA, HGEA, UPW) demands for lucrative collective bargaining increases, and other spending proposals —both by Democrats and the Republican Governor — to eat up all of the $700 million state tax surplus. A rebate to taxpayers as required by the constitution will be one of the last things voted on.

The Democrats firmly control, 43-8 in the House, 20-5 in the Senate, and set the priority agenda and hearing schedule.

The Department of Education which currently sucks up more than $2.2 billion annually, is demanding more. The teachers union, the HSTA, also wants teachers to get $100,000 or more. No educational improvements among students has been recorded. Drug busts of teachers continues while the union resists random drug testing.

The state Unemployment Compensation tax reserve fund is now on its way to over $600 million. Business will never see a penny of the surplus that they alone created. The UI tax will be applied to the first $36,500 this year; the highest level in the U.S. The Administration offered positive changes and choice to the ETF tax but it was rejected.

Workers Compensation “stress” claims will continue. Only a bill (HB 763) to exempt owner employees of LLCs may pass.

A major issue involving the need for a second Maui hospital, privately financed, is being stymied by Maui Senators who wish to continue to subsidize Maui Memorial and other state controlled facilities.

The Superferry, scheduled to begin interisland service in July, still battles some of these same Maui (and Kauai) lawmakers, who want to stop or stall it through EIS requirements not applicable to existing carriers; even the super Young Brothers barge.

Medical malpractice insurance costs likewise are not being taken seriously and the result is likely to be the loss of more physicians, particularly on Neighbor Islands.

There are many expensive and duplicative studies and grants soaking up $.

The Governor’s cabinet appointees must still be re-confirmed by the Senate.

Small Business Hawaii continues to monitor, update and alert the business community to important bills, hearings and legislative action. Check our website at www.smallbusinesshawaii.com for alerts as well as checking the Hawaii State Legislature site for bill status and action: www.capitol.hawaii.gov.

Kudos to the Senate Clerk and President for making bill status and testimony more easily available on CDs.

HAWAII SUPERFERRY FEATURED AT MARCH SBH SUNRISE

Terry O'Halloran of Hawaii Superferry was the speaker for March's SBH Sunrise. He spoke to a sold out crowd about the upcoming launch of Hawaii Superferry which is scheduled to start service on July 1.