SBH Sunrise
Mar. 29, 2007
Terry o'Halloran
Hawaii Superferry

INSIDE THIS ISSUE

Smokers and bar owners rallied and marched at the State Capitol to protest Hawaii's "No Smoking Law." Bars have lost thousands of dolllars since the law was enacted in November 2006.

Legislature at Halfway Point - Business Action Missing!

The 24th State Legislature will hit the halfway mark this month toward its 60-working day run scheduled to adjourn Thursday, May 3.

Little has been accomplished, or is expected, on behalf of business interests this session. The entire session is being driven by multi-million dollar union demands for collective bargaining, 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 — is not top of mind and will be one of the last things accomplished..

Democrats are firmly control, 43-8 in the House, 20-5 in the Senate..

The Department of Education which currently sucks up more than $2.2 billion annually, but 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 and the union resists random drug testing.

The state Unemployment Compensation tax reserve fund climbed from $320 million several years ago and is 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. The Administration offered positive changes and choice to the ETF tax but it
received a cool reception.

Minimum wage which 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 little chance for WC fraud reform. “Stress” claims will continue. Only a bill (HB 763) to exempt owner employees of LLCs has a slim chance of passing.

Republicans offered bills to repeal the GET surcharge, Gas Caps and Beverage deposit tax. Most didn’t even get a hearing

There is a major issue involving the need for a second Maui hospital. And the Superferry, scheduled to begin interisland operations in July. A coalition of environmentalists, the local air carriers, Matson and Young Brothers have sidetracked the ship to date. (Be sure to attend the SBH SUNRISE, Thursday, March 29, 7 am, Pineapple Room, for a full discussion on this issue).

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

Queen Street merchants did successfully sideline the HCDA costly assessments.

Hawaii’s Homeless have become the new protected class, along with native Hawaiians. Almost all measures having to do with either group, seem to be flying through the legislature, regardless of cost or outcome. Lawmakers often putting reason aside in debating bills fearing they might be perceived as “culturally insensitive.”

The Governor’s cabinet appointees must still be re-confirmed by the senate. Transportation Director Rod Haraga was fired by the Governor in January (he now works for the City) and replaced by Barry Fukunaga while Nelson Befitel, the Labor Director, chose not to fight for his reappointment. DCCA Director, Mark Recktenwald, has been nominated as Chief Judge of the Court of Intermediate Appeals. Other cabinet members are expected to win approval

Small Business Hawaii continues to monitor, update and alert the business community to important bills, hearings and legislative action. Check our website: www.smallbusinesshawaii.com for updates or the legislature’s website at capitol.hawaii.gov for bill information and hearing schedules.

SBH members watch high end color printing at member Valenti Print Group's printing plant at the last SBH Pau Hana. The next Pau Hana will be on March 15.