The Legislature opened with the usual pomp and circumstance.

The 20th State Legislature convened January 20 at the State Capitol, amid the traditional flower leis, hula and food. Now the hard work begins as the 76 lawmakers settle in to deal with unresolved tax, regulatory and budgetary issues-many still unresolved from previous sessions, marked by talk, not action.

The odd-numbered sessions, such as this year, are designed to deal primarily with the state's biennial operating and capital improvements budgets. The Governor submitted an increased budget-estimated in excess of $13 billion-during a time of continuing economic and revenue declines.

In his State of the State speech on January 25, Governor Ben Cayetano urged adoption of tax cuts, social programs and implementation of his "vision," in this the final four years of his term. Lawmakers remain skeptical that the budget will be adopted as presented.

Economic forecasts call for a worsening year economically-after 8 straight "bad" years. The most optimistic forecasters see a flat year. Hawaii has refused to change in the past.

The bipartisan Small Business Legislative Caucus, includes co-chairs: State Rep. David Stegmaier (D), new addition, State Rep. Colleen Meyer (R), and State Senators Norman Sakamoroto (D) and Sam Slom (R). They are meeting with business associations, coalitions, individuals, and their legislative colleagues to hammer out a viable small business program for the current Session.

The Small Business Legislative Coalition, including SBH and other business groups, continues to meet to discuss their business agenda. The next meetings are scheduled for Tuesday, February 9, and 23, in room #212 at the State Capitol from 10 to 11:30 am. (call to confirm room-location may change) All individuals and business organizations are welcome. For additional information and details, contact Bob Sigall, SBH Legislative Chair at 847-2046. Volunteer to join the FAXNET.

Small Business Hawaii will continue to be directly and actively involved in the legislative process and to oppose any new attempt to raise the General Excise or other taxes. SBH anticipates the call for more taxes to be loud and clear as the economy continues to worsen in the absence of meaningful political change.

LAUREATES TO BE HONORED BY JA

Junior Achievement of Hawaii (JA) will honor the 1999 Laureates for induction into the ninth annual JA Business Hall of Fame luncheon on Wednesday, February 17. The event is open to the public-reservations required-and will be held from 11:30 am to 1:30 pm in the Tapa Ballroom of the Hilton Hawaiian Village Hotel.

This year's awardees are: Sidney S. Kosasa, ABC Stores; Dr. Edison H. Miyawaki, Nu'uanu Hale & Liliha HealthCare Center, and Lily K. Yao, First Hawaiian Bank. State Senator Sam Slom and State Representative Barbara Marumoto will sponsor floor presentations for the inductees at the Capitol in early February.

A number of business leaders help nominate and vote for the annual inductees. Small Business Hawaii serves as one of the nominators and judges for JA.

For reservation information, contact Pam at JA at 524-2211. Mahalo for supporting Hawaii's kids!

UNEMPLOYMENT INSURANCE
TAX RATE INCREASED

Just a reminder to Hawaii employers with one or more employees: your Unemployment Compensation (Insurance) Tax increased January 1. This occured because the Employment and Training Tax of .05% on taxable wages has once more been added to your basic UI tax rate.

The tax, added to UI 7 years ago-over the objections of all small business organizations-was to "sunset" after 5 years. Instead, the Labor Department lobbied to have the sunset provision dropped. A compromise in 1997, resulted in a "moratorium" until December 31, 1998. The tax now is slated to remain in effect until December 31, 2000.

Thjs assessment can NOT be taken as a credit against the federal unemployment (FUTA) tax.

FOUR MORE YEARS -THE FUTURE
ROLE OF SMALL BUSINESS IN HAWAII

1999 SBH Annual Conference Report

(Click on highlighted names to see their photos)

Nearly 300 people attended the 23rd annual Small Business Hawaii Conference, January 13, 1999, at the Ala Moana Hotel, the first major business and investment forum of the new year. The mood was actually upbeat.

The theme of this year's conference was: "Small Business '99: Four More Years - The Future Role of Business In Hawaii." While many problem areas and disappointments were highlighted, the emphasis of the program was what to do and how to do it now and in the future and how small business will continue to deliver the leadership for meaningful economic and political reform in Hawaii.

A variety of business speakers shared their blueprints for improvement with attendees during the all day event. Included were:

Sam Slom, SMS Consultants; president, SBH; State Senator, speaking on, "Preparing for the Millennium in Hawaii;" George Mason, Publisher Emeritus/Columnist, Pacific Business News, arguing "The Revolution Will be Delayed" while Lowell Kalapa, president, Tax Foundation of Hawaii, Inc. discussed, "Budget Surpluses, Economic Change and Other Hawaii Fables."

Several State Legislators analyzed "Economic Goals & Objectives During the '99 State Legislature " and answered audience questions. The panel consisted of: Senators (Minority Leader) Whitney Anderson (R); Suzanne Chun-Oakland (D), Randy Iwase (D), and Norman Sakamoto (D); and Representatives Robert Herkes (D) and (Minority Leader) Barbara Marumoto (R).

Attorney Susan Jameson, of Alston Hunt Floyd & Ing, Attorneys at Law cautioned about "Y2K - Legal & Technical Implications for Small Business." One of the most enjoyable parts of the annual conference is hearing from the SBH "Small Business Success Stories" The 1998 awardees were: Yukio & Craig Yoshikawa - McKinley Car Wash; Margaret "Cookie" Young - Doctors & Nurses Answering Services; Bob McWilliams - Bob McWilliams Pottery, and Linda and Paul Smith of diversified manufacturer, Pacific Allied Products, Ltd.

The noon luncheon and program featured the presentation of the SBH Annual Business Awards, including the SBH Small Business Person of the Year - 1998. Karen Huffman of McDonalds of Aina Haina, Kahala and Koko Marina was named SBH Small Business Person of the Year. The listing of SBH Awardees and more photos are available here.

Former Maui Mayor and 1998 gubernatorial candidate, Linda Lingle, delivered the keynote speech on the conference theme: "What Now? -The Future Role of Small Business in Hawaii," and received a standing ovation. Lingle called for action for change.

CABOT TO LEAD FRANCHISE
SEMINAR FEBRUARY 24

Christiane Cabot, senior consultant/analyst at Francorp, Inc., the world's oldest and largest franchise development and consulting firm, based in Chicago, will lead this month's Franchise Your Business Seminar in Honolulu. Ms. Cabot has worked with over 1,000 prospective franchisors, from small start-ups to Fortune 500 companies. She is expert in evaluating companies for franchisability.

Small Business Hawaii and Francorp International will co-spsonor the 4th annual Hawaii franchising seminar. It will be held on Wednesday, February 24 at the Sheraton Waikiki Hotel from 9 am to 12 noon.

The seminar covers all aspects of franchising, including ways to franchise your own business. The regular cost is $145 per person, but SBH members can attend for $75. Call 1-800-372-6244 and ask for a franchise analyst.

REASON FOUNDATION VISIONS CONFERENCE

Dick Rowland advises that The Reason Foundation (Los Angeles) is holding its 1st Annual Dynamic Visions Conference, February 12-15 (Presidents Day weekend) at the Santa Clara Mariott, Silicon Valley. Cliff Slater, Maui Divers of Hawaii, Ltd. executive, is the head of The Reason Foundation-Hawaii.

Confirmed speakers at the Conference include: Virginia Postrel, Reason Magazine Editor and Forbes columnist and author; law professors Richard Epstein and David Post (co-founder of the Cyberspace Law Institute); authors Nathan Rosenberg, Joel Mokyr, Grant McCracken, Mike Godwin, and David Botkin; Charles Paul Freund, Reason's senior editor and James K. Glassman, Washington Post.