It all comes down to your vote Tuesday, November 3. Your vote was never more critical.

At stake is 40 years of one-party (Democrat) rule in Hawaii. That political monopoly has paralyzed the state's ability to improve its business climate, to educate its children, retain able and creative residents of all ages who have exited Hawaii, while lowering most families' standard of living. Monopoly government also has dispensed costly non-bid contracts to cronies, engaged in conflicts of interest and scandal, and not produced any coherent vision or viable economic plan. The monopoly party lives and breathes politics all the time; for them it is a way of political, social, cultural and ethnic life. They have known nothing else for four decades. For Republicans and independents, it is a struggle to break a monopoly, create a two-party balance, level the playing field and determine success on what an individual knows, not who he knows. What and who will prevail is up to you.

The final percentage of eligible voters who went to the polls on September 19 was only about 50% although more people voted than in 1994. Those who did vote in the Primary, produced major changes - including dumping five (of 13) State Senators running for reelection - and other signals of voter unrest with the status quo.

Linda Lingle, the Republican candidate for Governor, swept her opponent, former Mayor and 4-time governor candidate, Frank Fasi, by a 2-1margin. Businessman and former State Senator Stan Koki defeated former banker and legislative leader Mike Liu for the Lt. Governor spot on the GOP ticket. Virtually unchallenged, Governor Ben Cayetano and Mazie Hirono are the incumbent Democrat team.

PAYCHECKS HAWAII URGES VOTES FOR
ENDORSED SMALL BUSINESS CANDIDATES

PAYCHECKS HAWAII, urges small business owners to vote for those endorsed candidates who will best help repair Hawaii's economy and business climate. PAYCHECKS HAWAII, created in 1984, is a private, independent, non-partisan, political action affiliate of Small Business Hawaii. (No SBH funds are used for political purposes).

PAYCHECKS HAWAII is dedicated to non-partisan, direct political action for small business to improve Hawaii's business climate.

PAYCHECKS HAWAII endorses those candidates who offer the best opportunity for real economic and investment change in Hawaii, regardless of political affiliation. The updated '98 candidate endorsement list appears in our printed edition as or by following this URL:

http://hotspotshawaii.com/SBH_on_H4/endorsement98.html.

PAYCHECKS also rates each legislator annually.

CONSTITUTIONAL, CHARTER
QUESTIONS ON BALLOT

In addition to voting for legislative and Board of Education candidates November 3, Hawaii voters will cast their ballot for three State Constitutional issues (1 which has since been disqualified due to a technicality) and eight City & County of Honolulu Charter questions.

SBH urges all voters to study the issues and not leave a blank ballot - that will be counted as an automatic "no" vote.SBH has been asked for its opinion on the various questions. The membership was not surveyed on these specific issues but based on previous positions, SBH would suggest the following:

Constitutional Question #1: "Shall a tax review commission be appointed every ten years, instead of every five years, starting in the year 2005?"

(UPDATE: This question has been disqualified by the State Attorney General due to the lack of votes needed at the legislature to put the issue on the ballot)

Constitutional Question #2: "Shall the Constitution of the State of Hawaii be amended to specify that the legislature shall have the power to reserve marriage to opposite-sex couples?"

(SBH DID NOT TAKE A POSITION).

This is neither a business nor a civil rights issue. However, a "no" or blank vote will permit implementation of the Supreme Court ruling allowing same sex marriages and will have benefit implications.

Constitutional Question #3: "Shall there be a convention to propose a revision of or amendments to the Constitution?"

SBH POSITION: VOTE YES

SBH has always supported the right of the electorate to periodically study, discuss and amend as necessary, the State Constitution. That is why the framers of the Constitution incorporated a provision calling for a public vote every 10 years. Issues such as term limits, initiative, referendum and recall, can only be enacted through amendment to the Constitution. The Legislature does not seriously consider amendments to limit government (or their own) powers. Those who fear single issue focus or a reduction in civil rights at a con-con, place more faith in government and the status quo than in their fellow citizens.

For copies of the 8 City Charter amendments, contact the Office of the Mayor, City Council or refer to election supplements in the daily newspapers and on the Internet. SBH supports those changes that will reduce the cost and scope of government while increasing accountability.

'99 LEGISLATURE WILL HAVE NEW LOOK

While all eyes are on Hawaii's race for Governor, the 1998 elections guarantee that there will be substantial changes and a new look for the 1999 State Legislature when it convenes in mid-January.

In the 25-member State Senate, currently encompassing 23 Democrats and 2 Republicans, 13 Senators were up for election and five longtime incumbents were previously defeated in the September 19 Primary. Other significant changes are anticipated November 3.

The GOP expects to pick up 3-4 new Senate seats. With several other new independent Senators, the presidency, currently held by Norman Mizuguchi, could change hands.

In the 51-member House, 39 Democrats control 12 Republicans at present but Republican hopes are buoyed by attractive candidates and strong coattails from Linda Lingle's campaign for Governor. All 51 representative seats are up for election. The GOP could reasonably increase by 6 - 8 seats - or more - for 18 - 20 total votes, depending on the General Election outcome. This too, could prove to be a challenge to current Speaker of the House, Maui Democrat Joe Souki.

With a new Governor, new legislative faces and more two-party balance, long delayed legislation will resurface in '99. Old alliances could give way to new coalitions that would enhance public-private partnerships and prove beneficial for Hawaii's real economic recovery.

SEE YOU AT SBH'S THE TRADESHOW

Pacific Business News has been named Presenting Sponsor of Small Business Hawaii's - The Tradeshow, set to open Tuesday evening November 17. Up to 2,000 invited guests will be treated to pupu and no host beverages as they visit over 150 booths featuring an immense variety of goods and services available from businesses to other businesses in our Hawaii marketplace.

Wednesday morning, November 18 day two of the Tradeshow gets underway with a special edition of SBH's Sunrise Networking Breakfast at 7:00 a.m. in the Pikake Room adjacent to the tradeshow floor at Blaisdell. Invited guest speakers include: Geal Fukumoto (Edward Jones), Karen Huffman (McDonald's) George Mason (PBN Publisher Emeritus), and Cliff Slater (Maui Divers of Hawaii/The Hawaii Reason Foundation). Tickets are available from Small Business Hawaii @ $10 per person for SBH members and their guests; $15 for non-members.

The keynote luncheon featuring invited guest (Governor-Elect?) Linda Lingle will be held in the Pikake Room at Noon Wednesday. Lunch will cost SBH members and their guests $15; $20 for non-members.

Wednesday Tradeshow hours are 8:00 a.m. to 6:00 p.m. with no-host bars open 5:00 to 6:00 p.m. and pupu served with the compliments of the producers and sponsors of the event.

Meeting room space has been set aside adjacent to the Tradeshow floor for the presentation of relevant workshops and seminars during show hours. Several, including a "Y2K For Small Business" session are in the works.

Altogether over 5,000 business people are expected to attend Small Business Hawaii - The Tradeshow, which is an official event of Small Business Hawaii, designed to provide benefit and opportunity to its members as well as to the business community at large. Producer Mike Rossell of Production Hawaii, Inc. predicts this event will become an annual "must do" for Hawaii small business far into the future.

At press time, limited booth space was still available. Call 532-7300 for information.

SHARE N TELL FORUM FEATURES
YEAR END BUSINESS TIPS

The final quarterly Small Business Hawaii Share N' Tell Business Forum of 1998 will provide you with new ideas and strategies to help you do more business by year end.

The SBH member Share N' Tell will be held Wednesday, November 25 at the Kahala Mandarin Oriental Hotel, from 11:00 a.m. to 1:30 p.m. The public is welcome; advance reservations are required.

Topics and Facilitators for the November 25 Forum include:

"Getting Your Financial House In Order," Ruth Komatsu, Ruth Komatsu Financial, Inc.; "Year End Tax Planning Tips," Bob Frost, Up Your Assets; "Y2K and Computer Survival Strategies," Jane Brown, Automation Management Consultants; "The Importance of an Effective Financial Plan," Peter Matsumoto, Comprehensive Business Services; "Records Management: A Practical Approach to Retention," Dorothy Iwamoto, The Office Manager.; "Bookkeeping: The Black and White of Your Business" Annette Silva, Bookkeeping Professionals; "Venture Capital Opportunities in Hawaii" Randy Havre, Hawaii Venture Group, LLC ; "How to Build A Successful One-Person Business," Geal Fukumoto, Edward Jones.

The $25 cost of the Share n' Tell Business Forum includes the entire program, luncheon and parking. The cost is $30 at the door if space is available. Advance, paid reservations are required for this special rate and will be accepted as received on a first-come, first-serve basis.

Call 396-1724 for a reservation form or clip the one out of our printed edition for November.

KIDS VOTING HAWAII

By Lyla B. Berg, Ph.D., President/CEO, Kids Voting Hawaii

KIDS VOTING HAWAII is a non-profit, nonpartisan, grassroots organization dedicated to educating Hawaii's youth about the importance of an informed electorate. The mission of this statewide initiative is to sustain democracy through active participation by youth and increased adult voter turnout. One of the fundamental beliefs of KIDS VOTING USA is that our young people are the decision-makers of tomorrow, and it is therefore vital to the welfare of our nation-and our state-that they learn how to be action-oriented, critical consumers of information.

The uniqueness of KIDS VOTING exists in the first-hand experience that youth in grades K - 12 get with the voting process. Teachers are provided a free-of-charge, age-appropriate curriculum of interactive lessons which prepare the students to cast their ballots for real candidates at the same voting location where their parents/guardians go on Election Day. The KIDS VOTING ballots are collected and tabulated so that the results can be reported on Election Night, along with the adult voting results.

Imprinting of habits begins at a very young age, and it is with this premise that KIDS VOTING USA was created in 1988 in Arizona. Nationally, over 5 million students in 40 states are participating in similar projects during this election year. By the time these young people are eligible to register to vote as adults, they will not only understand the purpose and function of voting, but will also take their civic responsibility with committed intention and willingness.

KIDS VOTING HAWAII is endorsed by the Hawaii State Teacher's Association and the Department of Education. American Savings Bank is the title sponsor with Rotary clubs statewide providing the leadership for the volunteers needed on Election Day. The State Office of Elections has provided immeasurable support by printing the curriculum and assisting with its distribution into the schools. Partnerships with Aloha Airlines and the Hilton Hawaiian Village and Resorts, along with national sponsors such as Kinko's, Blockbusters, Penny's, Fox Kids Channel 2, and America West Airlines, strengthens not only the visibility, but also the impact that KIDS VOTING HAWAII can have with all the students, public and private, statewide.

Any business wishing to participate monetarily or as volunteers on Election day are invited to call 523-VOTE or 1-877-543-VOTE from the neighbor islands. Election Day 1998 with our youth will be an experience not easily forgotten!

GET SUBLEASE DEDUCTION EFFECTIVE NOW

Effective October 1, 1998, Act 353 (SLH 1997) reduced the pyramiding of the General Excise Tax on subleased real property. Starting with returns filed for October, 1998, sublessors may take a deduction from their gross rental receipts reported on their general excise tax returns. Once the deduction is fully phased in (over a seven-year period), a sublessor would be allowed to reduce the amount of gross proceeds or gross income under a written lease of real property.

The Department held a public hearing on August 17, 1998, to adopt administrative rules that establish the requirements for the sublease deduction and provide guidance on issues such as allocating rent paid by the lessee when the lessee subleases less than one hundred percent of the real property which was leased from the lessor, allocating the rent paid by the lessee to various real property which has different rental values, and allocating the rent paid by the lessee based on the fair rental value of the property. The administrative rules became effective on October 1, 1998.

New forms relating to the sublease deduction include Form G-71, General Excise Sublease Deduction Certificate; and Form G-72, Sublease Deduction Worksheet. Form G-71 must be submitted by the lessor to the lessee certifying that the lessor is licensed and taxable under the general excise tax law. Form G-72 may be used to calculate the amount of the sublease deduction to claim on the monthly, quarterly, semi-annual, or annual general excise tax return.

Forms G-71 and G-72 may be obtained at any district tax office, by mail through the Department's 24-hour Forms Request Line, or via the Internet.