The May 1 adjournment of the 24th State Legislative which began January 16 was greeted with a sigh of relief. For some, the "do nothing" Session was welcomed because it could have been worse. But for those expecting an improvement in Hawaii's business and investment climate, there was no basis for celebration.

In fact, the 2008 Legislative Session earned an "F" grade from the business community -- and most of the public as expressed by local public opinion polls.

Buzz words for this year's session were: "sustainability," "streamlining" and "bio-energy."

Taxes, fees, and employer mandates all increased. Medical tort laws were not reformed; private property rights were not enhanced or protected; mandates were everywhere. Most lawmakers -- and the Governor -- sought to have the government and OHA -- acquire even more private land through muscle and eminent domain.

Despite a half-billion dollar state surplus, beleaguered Hawaii taxpayers will only get a $1 tax credit next taxable year (SB 2153).

Hawaii's environment will be "saved" through more mandates and forced conversions, including requiring all new homes to have solar heaters (SB 644), a "Right to Dry" allowing clotheslines in communities with covenants against visible blight (SB 2933) and a new fee (tax) for electronic recycling on manufacturers of electronic equipment (SB 2843).

Spending increased -- the supplemental budget is up 4% to $10.7 billion -- state government will become even more pervasive.

Outright bans were proposed (but not passed this year) on plastic bags, styrofoam lunch containers, incandescent light bulbs and other items. A new bottle redemption bill would have required big box stores to operate redemption centers for HI-5¢ beverage containers.

Most positive business actions involved bad bills that were killed or vetoed. The single worst bill of the session, the so-called "union card checkoff bill" which would have allowed unions to organize employees without voting or secret ballot was wisely vetoed early by the Governor and the veto was sustained.

The Governor has until June 23 to inform the Legislature of any additional vetoes she is considering and until July 8 to actually veto any bills. One controversial bill is SB 2646, "Important Agricultural Lands," which pits some farmers and ag organizations in support with other farmers and several anti-development environmental groups in opposition. Another bill, HB 661, provides for public funding of a pilot project in Hawaii County for certain elections.

The Governor's pet project for 2008, the taking of the Turtle Bay Hotel & Resort (SB 2423), and adjacent undeveloped lands on Oahu's North Shore, passed by a 14-11 vote in the Senate political arm twisting. The Governor enlisted 3 of 4 Republicans and 11 Democrats, including Senator Clayton Hee -- a proven opponent of the Governor and her nominees in the past -- to pass this bill authorizing the Governor to negotiate for the purchase and/or the use of eminent domain to acquire the Turtle Bay property. If there is a proposed takeover, the Governor vowed to call the Legislature back in Special Session this summer to pay for the purchase.

A bill to put Hawaii into an anti-electoral college national compact, to recognize only the national popular vote, passed the Legislature, was vetoed by the Governor but overridden by the Legislature. It would, if actually enacted by the required compact, result in a loss of electoral rights and input in elections by all small states including Hawaii.

The $200 million-plus private agreement reached by the Governor and the Office of Hawaiian Affair (OHA) to "end" the ceded lands controversy died despite feverish last minute closed door attempts to reach the settlement.

Likewise, an attempt to re-regulate interisland air transportation (to keep any new competitors out) was stalled and is dependent on federal FAA action anyway.

Charities and non-profits in Hawaii face more regulation--and costs -- because of SB 3171.

HB 2257 provides a partial journalism shield for new media.

HB 2224 requires health care providers to offer small business group insurance to the self-employed--a good move--but with ever rising premium rates and a lot of paperwork it may be difficult for most small firms to realize actual savings.

If you have comments for the Governor, to either sign or veto any measure still active, contact her (she welcomes your input) at www.Hawaii.gov/gov.

Finally, Senators Paul Whalen (R-Kona), and Lorraine Inouye, D-Hilo, will not be back next year (Inouye is running for Hawaii Island Mayor). In the House, Josh Green (D-Kona) is running for Whalen's senate seat, Alex Sonson (D-Pearl City) running against Sen. Clarence Nishihara (D-Pearl Ridge) and Dwight Takamine (D-Hamakua) for Inouye's seat. House Judiciary Chair, Rep. Tommy Waters (D-Lanikai), who took credit for killing tort reform and other needed law enforcement measures, announced after the session he would not seek re-election this year.

Sen. Ron Menor, chair of the Senate Committee on Energy and the Environment, was convicted of DUI and sentenced to 2 days in jail after the Session. Earlier in the year, State Rep. John Riki Karaimatsu amd OHA Trustee John Waihee IV were both convicted of DUI. A tough DUI interlock bill was passed this year.

A Senate Investigating Committee inquiring into a Hydrogen Fund bid process, and possible violation of the state's procurement code, by DBEDT Director Ted Liu, wraps up its four months of work after the Session this month. The committee is headed by Senate vice president, Donna Mercado Kim.

For a complete list of bills and their status, refer to: http://www.capitol.hawaii.gov

June 2008 SB News Front Page
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