February 2007 | Small Business News
Legislature Begins - It's Time to Hold Onto Your Wallet!
The 24th State Legislature began its 60 working day run Wednesday, January 17, at the State Capitol. The Session is scheduled to adjourn Thursday, May 3.
There were behind the scenes problems even before the session began: a battle over legislative budgets and timing held up the joint House-Senate calendar until a day before the opening.
In the House, three dissident Democrats voted against Speaker Calvin Say—he won 48-3 with no Republican opposition. There will be continual territorial battles in the House
The Senate, with Colleen Hanabusa as the first woman president, has new rules which for the first time include a conflict of interest provision and more transparency.
Democrats firmly control, 43-8 in the House, 20-5 in the Senate, and promise more spending, more taxes, more employer mandates and pro-labor union legislation.
Union pay hikes are on the front burner again as is even more money for the out of control and non-accountable Department of Education which garners $2.2 billion annually. The state surplus, last pegged at $736 million will not find its way back into the pockets of the taxpayers that produced it; instead there will be shrill calls to allocate the money to the DOE, the homeless and various pet social programs. Taxpayers may get a token refund (required by the Constitution)
The state Unemployment Compensation tax reserve fund climbed from $320 million several years ago to $545 million now on its way to over $600 million this year. Business will never see a penny of this 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.
Minimum wage already increased by 50¢ to $7.25 an hour January 1, may be hiked again with little or no relief in tip credit for restaurants.
Workers’ Compensation still has an uphill battle for reform and teeth in WC fraud. “Stress” claims will continue.
The Administration is offering positive changes and choice to the ETF tax but it will get a cool reception.
Only Republicans have offered bills to repeal the GET surcharge, Gas Caps and Beverage Deposit tax.
There is a major issue involving the need for a second Maui hospital.
Medical malpractice insurance costs must be stemmed or Hawaii will lose more needed physicians and surgeons.
Homelessness is number 1 with many.
New taxes and fees are on the horizon.
In the Senate, the combining of the labor Committee with Judiciary, now headed by pugilistic Clayton Hee, bodes ill for business and law enforcement.
The Governor’s cabinet appointees must be re-confirmed by the senate. Several key administration leaders were under assault by the Democrat Majority even before the Session begins. They include: Peter Young of DLNR, Ted Liu of DBEDT, Nelson Befitel, DLIR (who then declined to seek reappointment), and Lillian Koller, DHS.
Newly returned (to Hawaii) and re-elected State Rep. Gene Ward, an original co-founder of the Legislative Small Business Caucus in 1992 (with Rep. David Stegmaier) has reorganized the caucus. Ward and Rep. John Riki Karamatsu are co-chairs; Sam Slom is co-chair in the Senate.
SBH will continue to monitor, update and alert the business community to important bills, hearings and legislative action.
DCCA to Start Trade Name Reminder
A problem for small businesses is trying to remember when their business trade name registration is due to expire.
There have been examples of businesses losing their name because the registration had expired and someone new applied for — and was granted — use of the name.
The registration process has changed over the years. At one time, you applied for your trade or service name, paid a fee, and one year later had to renew for a 10 year period. Currently, the renewal period is 5 years. But who remembers? Especially if you have several names registered.
The Department of Commerce & Consumer Affairs (DCCA) Business Registration Division, sends out reminders for corporate exhibit renewals, but not for names.
SBH recently discussed the matter with DCCA Director Mark Recktenwald. He in turn talked to his new Commissioner of Securities, Ms. Tung Chan. Since the start of Recktenwald’s tenure, action follows. Chan will work with SBH and others to develop an email alert system to let you know expiration is near and to help you renew.
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