
INSIDE THIS ISSUE!
Sakamoto, Slom Victorious in Primary
PAYCHECKS HAWAII Business Candidate Endorsements
List of PAYCHECKS HAWAII Endorsed Candidates
Candidates To Take Tax Pledge
Share N Tell Forum Offers Vital Tips
Minimum Wage Increases
Nominations Open For '97 SBA Awards
SBH Co-Sponsors Hawaii Kai Celebration
Hawaii Retailers Honor Roll for '97
SMALL BUSINESS VIEWS by Sam Slom
GUEST COMMENTARIES by SBH Members
More on Medical Care Delivery by Richard O. Rowland
THE COMPUTER CORNER
Politically Connected Computer by Melvin Ah Ching

IN PRIMARY ELECTION
Norman Sakamoto, a long time small business and construction advocate, running for the first time, decisively upset incumbent State Senator and Judiciary Chair, Rey Graulty in the 16th District Democratic Primary. There was no Republican challenger, so Sakamoto is elected outright. Sakamoto, long associated with the Building Industry Association (BIA), the Small Business Congress and an architect of the Haku Alliance for Workers' Compensation reform, proved the pundits wrong and despite Graulty's arrogance, heavy union backing and Graulty's hiring a private investigator to spy on Sakamoto, Sakamoto prevailed. This sent major shock waves throughout the Capitol - as other powerful incumbents feel the wrath of disenfranchsied voters.
Sam Slom, SBH president, running for his first partisan political office, defeated two Republican opponents in the 8th Senatorial District primary, including Warner "Kimo" Sutton, son of former State Representative Richard "Ike" Sutton, who has run for various offices during the past 20 years. Slom faces 22-year incumbent Ways & Means Chair, Donna Ikeda on November 5. The Primary vote tally and early polls predict another major upset and good news for small business. Ikeda is one of the most powerful-and arrogant -state lawmakers. She has angered constitutents because of her special interest conflicts, support of the "High 3," pensions for lawmakers, position on taxes, refusal to accept responsibility for inaction for insurance reform and her close support of Milton Holt.
Former State Representative and Human Services Chair, Suzanne Chun-Oakland, upset Holt in the 14th District Democratic Primary. Holt, a Bishop estate employee and controversial lawmaker, was head of the Commerce and Consumer Protection Committee. Ikeda had supported Holt, a convicted spouse and substance abuser, as, "the quarterback of the State Senate." Chun will face Republican Jonathan Low. Frank F. Fasi, Jr. son of the former Mayor, lost to union-backed, anti-small business Senator Brian Kanno in the 20th District. Kanno, is the Chair of the Employment and Labor Committee and is responsible for blocking meaningful work comp legislation. Republican Kioni Dudley now challenges Kanno.
Senate President Norman Mizuguchi narrowly defeated newcomer, business woman Diane Ho Kurtz, in the 15th District. With no GOP challenger, Mizuguchi won reelection. House Judiciary Chair, Terrance Tom, likewise squeaked by 54 votes over Iris Catalani in the Democrat Primary, but faces strong challenegs from Green candidate Karen Archibald and Republican, Dr. Mike Loftus.
U.S. Rep. Neil Abercrombie, far left Democrat, who voted against every tax, business and welfare reform, faces Republican Orson Swindle in the 1st U.S. House District rematch from '94. In the 2nd District, U.S. Rep. Patsy T. Mink easily swept fellow Democrat Robert Bunda. Bunda still has two years remaining in his State Senate term. Mink will face Republican SBH member Tom Pico, Jr.
The 1996 Primary had a low voter turnout; only 52% of those registered and eligible turned out to vote. With the Presidential race and more defined local races, a better turnout is expected in next month's General Election.
Business CAN make a difference in the business climate by voting wisely Nov. 5.

ELECTION ENDORSEMENTS
Hawaii is at a political crossroads and turning point this year. The economy is dependent on the political climate. All 51 State House and 13 of 25 Senate seats are up for election this year. Also, several county council seats, Big Island Mayor and Board of Education and both U.S. House seats. (No election for Governor or U.S. Senate in '96 in Hawaii).
This year PAYCHECKS HAWAII has endorsed a number of small business-friendly candidates for your vote this November.A few are incumbents who have done a good job, several are newcomers who are making their first run for political office; all offer the business community a promise of change and improvement. They are all viable candidates - though many appear to be underdogs; their success depends on your vote.
Among the endorsed candidates include Orson Swindle and Tom Pico for Congress, Jim Rath for Mayor of the Big Island, and Sam Slom for State Senator from the 8th District. A complete list of endorsed candidates is available at here.
As SBH member and former Legislator Fred Hemmings said, " The 1996 General Election cannot be only an indictment against 'incumbents.' The election must be a referendum on the failures of the Majority Party Democrats, both new and old. Changing faces in the Machine will not solve Hawaii's problems. Hawaii's voters must elect leadership that will change the direction of government and support small business."

ALL CANDIDATES ASKED TO TAKE "TAX PLEDGE"
As reported in October of 1995, Small Business Hawaii has joined forces with the Americans for Tax Reform (ATR), the Washington D.C. organization that several years ago successfully initiated a taxpayer protection pledge by Members of Congress. (Hawaii's delegation refused to sign). The effort was credited with having a major impact on the Contract With America tax reform proposals, and the '94 Congressional elections.
Now ATR and SBH is seeking a no-tax pledge from state lawmakers and recruited affiliates in all 50 states. SBH is the Hawaii affiliate and has established the Coalition of Hawaii Taxpayers.
The Hawaii pledge, which was distributed to all candidates for the Hawaii House and Senate, states, "I, ______, pledge to the taxpayers of the __District of the State of Hawaii, and to all people of this state, that I will oppose and vote against any and all efforts to increase taxes." Results of the pledge sign-ups will be reported to all media by the Hawaii Coalition in time for the 1996 State elections.
Several incumbent Hawaii lawmakers have signed the pledge and they will be listed with candidates who sign in the next SB NEWS.
Contact the Coalition at (808) 396-1724 FAX 396-1726.

The next Small Business Hawaii Share N' Tell Business Forum,(TM) allows you to get some important end of the year information to help you do more business - before the end of the year. Come the day before Halloween and get business treats without any tricks.
The next member Forum will be held on Wednesday, October 30, at the Kahala Mandarin Oriental Hotel, from 10:00 a.m. to 1:00 p.m.. This is an excellent opportunity to do major business networking, enjoying a major member benefit and learning practical business tips.
SBH Share N' Tell Business Forums are designed to help you do more business and solve problems. It is a great source of networking, business contacts and education.
This month, members (and their guests) choose one of nine exciting and informative Table Topics, led by a knowledgeable member-Facilitator, prior to the luncheon meeting.
Topics and Facilitators for the October 30 SBH Business Forum are: "Writing and Implementing an Effective Marketing Plan," Bill Wells, FlorExotica Hawaii; "Customer Service to Increase Your Sales," Jean Fukuda, Something Special! "Internet g YOUR Business," Robert Rabbett Abbett, H-4, Hawaii's Super Highway; "Handwriting Analysis for Business Decisions," Ruthie Chong, Handwriting Expert; "Training Productive Employees," Ken Calhoun, Hawaii Business Training Corp.; "Strategic Planning for Profitable Training of Employees" Stuart Novick, Profitability Works!; "Inexpensive Marketing Research for Small Businesses," Bob Sigall, Creative-1; "Secrets of Successful Direct Mail" William Gladstone, William Gladstone International Marketing, and "Tips for a Successful One-Person Business," Claude Doughtie, Kaeser & Blair, Inc.
The cost of the Share n' Tell Business Forum is only $25 ($30 at the door) and includes the entire program, luncheon and parking. Advance, paid reservations are required and will be accepted as received on a first-come, first-serve basis.The reservation form is in the printed issue of SB News.
The final Forum of the year will be held on Wednesday, December 11. If you would like to be a guest facilitator, please contact SBH at 396-1724 with topic title.

INCREASES OCTOBER 1
Reminder to Employers: Beginning October 1, 1996 the federal minimum wage increases from $4.25 to $4.70 an hour. On September 1, 1997, the wage increases to $5.15 an hour. Exempted from the raise are tipped workers, mostly restaurant employees, (currently earning $2.13 an hour) and teenagers for the first three months (90 days) of their employment).
Hawaii's minimum wage increased from $4.75 to $5.25 an hour on January 1, 1993, at the time, the highest in the Nation. Employers with tip category employees are allowed a Hawaii tip credit equal to 20 cents per hour. It is expected that there will be pressure to further increase Hawaii's minimum during the upcoming 1997 State Legislature which will convene in January.
The minimum wage is meant to be an entry wage, but when added to voluntary employee benefits, and mandated benefits (such as Unemployment Compensation, Temporary Disability, Pre-Paid Health Care, Workers' Comp, etc.) it forms the total compensation paid, which gets more expensive for local small business owners every year. The cost of mandated benefits is pushed up by, and based upon, total payroll paid. The higher your wage base, the higher the benefits you must pay.

The U.S. Small Business Administration's (SBA) Honolulu District Office announced the opening of nominations for the 1997 Annual Small Business Person of the Year Awards Program. In addition to honoring Hawaii's top small business owners, the SBA program recognizes the achievements of Young Entrepreneurs, Exporters and small business advocates.
"SBA's Annual Awards have a long history of identifying and celebrating small business's top performers in Hawaii," said District Director Andrew K. Poepoe. "As a community, we should all be proud of the skills and talents, innovative ideas, and the significant contributions to our state. Running a successful small business is one of the toughest jobs around."
Nominations forms are available from the Honolulu District Office and categories for business owners include Small Business Person of the Year, Exporter, Young Entrepreneur (under 30 years old) and Entrepreneurial Success. The Special Advocacy Awards include recognition for individuals supporting women, minorities, and veterans or through efforts in the professions of financial services, accountancy, and the media.
Winners will be recognized at a statewide luncheon in May. The state's top small business person of the year will travel to Washington, D. C. for week-long festivities during National Small Business Week, June 1 - 7, 1997.
Completed nominations are due November 15, 1996 at the SBA Honolulu Office. For more information or copies of specific nominations, please call Jane Sawyer at 541-2973.

Small Business Hawaii (SBH) again joins with The Hawaii Kai Town Center, Koko Marina Shopping Center and the Hawaii Kai Shopping Center to sponsor the 2nd Annual Re-Discover Hawaii Kai celebration, November 9 - 10 .
Small Business Hawaii is a corporate sponsor and organizer of the event for the family, community and outside neighbors and visitors. In September, 1994, SBH moved its corporate offices to Hawaii Kai after 18 years in Kaka'ako.
The overall theme of the event will focus on the unique and intriguing history of Hawaii Kai and East Oahu. Kaiser High School celebrates its 25th Anniversary this year. Last year's initial celebration coincided with the completion, after 4.5years, of the Kalanianaole Highway widening project.
Each of the three Hawaii Kai shopping centers will host a different theme.

HONOR ROLL IS ON A ROLL
Hawaii's Retail "Honor Roll" will be unveiled at the Retail Merchants of Hawaii Annual Conference October 2 and 3 at the Sheraton Waikiki Hawaii Ballroom. The award winners for 1996 will be honored at the gala dinner reception Wednesday evening, October 2nd, featuring music, fun, entertainment, and the awards ceremony. On October 3rd, "The Little Engine That Could" will put retailers "on a roll" as they move "up the tracks" (escalator), and "Into the station" (registration) to experience a morning of workshops, seminars, more fun, food, and networking.
The guest speaker for the entire event will be Robert Spector, author of The Nordstrom Way, the Eddie Bauer Story, and countless articles about retailing in Women's Wear Daily over the years. He has also been a comedy writer in New York before moving to Seattle where he now resides. In addition to being the Awards Ceremony Master of Ceremonies, he will be the keynote speaker for the seminar event, one of the workshop presenters, and will do a book signing in conjunction with Honolulu Book Shops.
The workshops will feature nine different breakout sessions and a mini "Retail Technology" trade show (available throughout the entire morning). Lunch will be served to conclude the day putting retailers "back on a roll" and "on the right track".
Don't miss this chance of a lifetime to meet with your fellow retailers and suppliers in the most informational, fun filled, and exciting retail event of the year. Call Jan Berman at the RHM office, 592-4200, for more information.

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