Small Business News ONLINE A PUBLICATION OF SMALL BUSINESS HAWAII VOLUME 20, No. 3 * MARCH 1995 ----------------------------------------------------------------- Workers' Comp Reform Coming? LEGISLATURE STILL TOYING WITH TAXES It's not over till it's over. Nothing is final or "dead" until a Legis- lative Session is actually over and tax increases are still alive in '95. The 18th State Legislature is one-third of the way toward the May 1 adjournment and there is little sign of solution to the Waihee-Cayetano fiscal mess that left a deficit reportedly in excess of $250 million. And mixed signals in terms of improving Hawaii's hostile business environment. The business community put all their eggs in one workers' comp reform basket, HB/SB 1360. The comprehensive bill introduced by the HAKU Alliance, on behalf of all business organizations (including SBH), did well in the House, but may die in the Senate, or be seriously crippled. AFL-CIO union antagonist Gary Rodrigues sent threatening letters to all lawmakers who co-signed the HAKU legislation (only to allow full and open discussion of the work comp issue), and the State Labor Department opposed the cost-saving reforms. HAKU and the business community must shoulder part of the responsibility for being too polite while willing to compromise positions in hope of sparing union feelings. The issue points to business' biggest weakness: the inability to stay focused. HAKU started off like gangbusters, is well-financed, well led, and produced a dynamite video, BUT has not been able to crack public indifference to the WC issue. The consequences have been to allow the unions, the Administration (the Governor's bill would save 2-3% in WC costs compared to 35 - 45% with HAKU) special interest providers and disgruntled employees to enjoy undue influence. Last month SBH predicted, "There WILL be workers' compensation reform this Session..." but warned that without strong business resolve and consumer education it might be meaningless. The battle continues and members are urged to contactTHEIR lawmakers personally now. Previous pledges of "No New Taxes" have been answered with bills to increase taxes, new or higher "user fees," gambling as a revenue source and curtailed services. As critical as SBH has been of the Governor - for good reason - SBH believes that Mr. Cayetano is right in several budget proposals that prompted attacks by interest groups and Legislators, including, powerful Senate Ways & Means Chair, Donna Ikeda, who called Cayetano, "a dictator." Specifically, SBH supports and applauds Cayetano's decisions to reduce the deficit by reducing the size and cost of state government, starting by scaling down costly ceremonial commissions, abolishing unneeded agencies and regulations, and his nudge toward privatization. Every special interest in town attacked Cayetano, but he is trying to do the right thing in this case. He deserves business support; if he fails, we all fail too. Likewise, many legislators, in both parties, especially the newcomers, are trying to improve Hawaii's business climate and they deserve our support. An addendum to the 1995 SBH Legislative Platform (printed in the February SB NEWS): "Every public contract valued at $1,000,000 and over, must include both penalties for non-timely completion, and incentives for early completion." No more Kalanianaole projects, thank you. SBH's Legislative Action Committee (LAC) next meets on Wednesday, March 8 and 22nd, from 11 am to noon at the SBH office. LAC Chair, Bob Sigall, wants you to participate. Please show up! And, are you signed up on the SBH Biz FAX NET ? ----------------------------------------------------------------- FINAL CALL! RESERVE YOUR SEAT TODAY Breakfast Share N' Tell Forum, March 7 Have you reserved yet for SBH's "Breakfast Business Forum" Tuesday, March 7? If not, better hurry! (A complete description and reservation form appeared last month). The SBH Forum will be held from 7:30 - 9:00 am at the Ala Moana Hotel's Hibiscus Ballroom. Registration and breakfast will take place between 7:30 and 8 am. The SBH Forum will feature a full breakfast, five separate Table Topic tables-you will be able to "table hop" to any 3 of the 5-plenty of networking and a good time. The topics include: (1) "Boost Your Bottom Line: Empower Employees for Measurable Results," Betsy Allen, Results, Inc.; (2) "Automate, Acclamate or Evacuate: How, When or Why to Computerize YOUR Business," Ruby Bussen, Microdyne Computer Systems; (3) "Get Up, Get Out and Get Noticed: How to Get Your Business in the Media, " Joyce Torrey, Joyce Torrey, Public Relations; (4) "Sales Power: Relationship Selling and Other Valuable Techniques," Jenny Friskel, Island Directory, and (5) "How to Create an Effective and Cost Effective Marketing Plan," Bob Baer, Robert J. Baer Marketing/Franchising Consultants (and SBH's "Small Business Person of the Year - 1994"). The Table Topics will begin promptly at 8, with each individual session lasting 20 minutes. Members than move to their 2nd and 3rd choice subject tables. The cost of the Forum, including breakfast, program and validated hotel parking, is only $15 if paid in advance. The Forum will cost $20 at the door if space is available. Call Cindy at SBH, 396-1724 or FAX in your reservation form from February's Small Business News. Have breakfast with SBH. ----------------------------------------------------------------- Hotel Closes Till '96 SBH Holds Final Forum at Kahala Small Business Hawaii members gathered on Tuesday, January 31 to bid Aloha to an old friend: the Kahala Hilton Hotel. The hotel, opened in 1964, and home of SBH's innovative Share N' Tell Business Forums since 1982, closed at midnight for a scheduled $50 million one-year renovation-and name change. The new name of the hotel will be the "Kahala Mandarin Orient Hawaii Hotel," when it reopens in 1996. SBH members heard anecdotes about the hotel from Sam Slom, who photographed the construction of the property as a UH student, and Jane Tatibouet, who worked at the hotel when it first opened. Tatibouet also related how she developed the revenue saving technique of selling waste food to pig farmers in "remote and far away" Hawaii Kai during the first years of the hotel's operation. Members also heard "one-minute" business tips from former Share N' Tell Business facilitators and attendees. Included were: Richard Budnick, Claude Doughtie, Jan L'Ecuyer, Jean Fukuda, Christy Kawabata, Larry Lim, Bob Sigall, Carl Spear, Paul Swengler and Ethan Tweedie. Finally, there was a comprehensive review of what's really happening in Washington, and its impact on Hawaii, by U.S. House candidate Orson Swindle. ----------------------------------------------------------------- You Can Be A "WrAP" Volunteer WrAP - Writing Assistance Program - offers the business community an opportunity to participate in a dynamic partnership with the public schools. The pilot intermediate school program, co-sponsored by SBH and the State Dept. of Education, (DOE) challenges business to become part of the educational process. It challenges students to expand their writing skills. Its a win-win formula. WrAP volunteers spend minimal class time generating writing assignments for students on a two-week cycle. The first week is devoted to student writing. Sessions explaining the assignment, picking up and evaluating the students' work follow. The process yields about ten to twelve student writing assignments each semester. Interested? As a business volunteer you can bring a fresh perspective and energy into the classroom environment. You can also contribute new ideas, share your insights and perspectives on writing, and read and respond critically to the students' writing. The fact that the students are writing for someone other than the classroom teacher motivates them to try harder and conveys the message to students that someone else is actually taking the time to really read their work. You're all it takes to make a difference! For more information and an informative brochure about the WrAP program, call Small Business Hawaii at 396-1724. Try it! ----------------------------------------------------------------- SMALL BUSINESS VIEWS By Sam Slom, President, Small Business Hawaii For many (MANY!) years, SBH alerted taxpayers to the excesses of the Waihee-Cayetano Administration: tax policies, non-bid contracts, padding the public payroll, skirting the spending ceiling, etc. Now that we have a "$250 million" deficit, the current gang wants to blame it all on Waihee, on "the economy," or Newt Gingrich. Truth is, Hawaii's famous no-fault society is to blame Ñ no one in government has ever been at fault. SBH is often criticized for being too critical, or being too strident. But where else would you have gotten this information? And where will you get it now? From the monopoly press? Or the State Communications office? State Budget Director, Earl Anzai, says he "found" $33.5 million in "unused funds." The Tax Foundation's Lowell Kalapa, and SBH, reported years ago, that the State was creating many special funds in which to squirrel away (aka, "hide") more of your money. A new "Visit Hawaii CD," the official travel planner of the Hawaii Visitors Bureau, is "Made in Canada." Like we don't have audio capabilities among local businesses here. Good news: thanks to lessening of tensions with the Clinton government and the North Koreans, you can now use your credit cards in Pyongyang. MIDWEEK's Dan Boylan attacked me and Fred Hemmings in a recent column referring to our "confused ideology." Boylan never defined the ideology he found wanting by his standards of state dependent liberalism and he's never confused in his admiration for big spending politicos who have guided Hawaii into a business climate second to none. I suggested a public debate. I'm waiting. It must be Spring: the annual debate concerning the "cultural" merits of Pidgin versus learning and applying Standard English by Hawaii students once again has emerged. When (if?) the Legislators move back into the State Capitol, they could each be given 100 Tilappia and a small plot of the expansive Capitol grounds so that they could raise fish, aquaculture and vegetables for sale, in order to help reduce the state deficit. Imagine the pleasure they would have working with their own hands and producing something. Last month we published the invocation delivered by Dick Rowland at our 19th Annual Business Conference in January. Rowland sent a copy of the prayer to Governor Cayetano suggesting it might be useful during Cabinet meetings to give the members strength in these difficult times. Rowland got a nice letter back from the Guv who said, "...we do not include prayers in our cabinet meetings...." Maybe they should. The SBA has opened the Business Information and Counseling Center (BICC) in the Bancorp Tower of the Financial Plaza (130 Merchant, Suite 1030). The BICC combines SCORE, SBDC, and SBA support in one location. Laura Noda is the director of the BICC. For assistance call 522-8130. The City Council of Honolulu gives new meaning to the game of "musical chairs." Every month it seems, we have a new line-up of committee heads and a coup. The "ins" vs. the "outs." Now if the Council could only do something positive for the public. Of course Mayor Jeremy Harris would like the public to believe the dirty linen in the Fire Department of his making (politicking, promotion procedures) is caused by a "conspiracy" between Councilman John Henry Felix and Arnold Morgado. Some of us still remember that Harris, Frank Fasi's point-man on the rail transit tax train, used Fire Department personnel in abundance at rail hearings. After 5 years, Chaminade's president, Kent Keith, resigned to become a graduate student at USC, saying running the University made him aware, "how little he knew about education." Keith headed the State Dept. of Business & Economic Development a decade ago. He knew even less about business. There may no be Major League ball, but SBH Coed Softball is back at Keehi Park. Add to business closings, Coast Enterprises (which started business the same time as SBH), Tripton's Restaurant in Kapahulu and the famed Pat's at Punaluu. Without genuine work comp reform and tax reduction, the list will continue to grow here. ----------------------------------------------------------------- A Brief Lesson In Long Distance Guest Commentary by Beverly D'Amico, Diamond Head Marketing Are you still using a carrier which rounds each and every call you make up to the next full minute? Would you buy your gasoline at a station where the owner rounded up to the next full gallon each time you filled up - and then charge you for each portion you didn't actually put in your tank? Ridiculous. Right? AT&T, MCI, and Sprint, have been rounding up their customer's calls to the next full minute for years - Make no mistake, it adds up! This is known as "full minute billing". With full minute billing, you're paying for long distance you don't actually use - on virtually every call. Bad deal. Now, you have a better alternative. 6-second incremental billing insures that you more accurately pay for the long distance you actually use. Rather than round up to the next full minute, you get billed in short 6-second increments. MAKE SURE YOU ARE NOT PAYING TOO MUCH FOR ONE OF THE BARE NECESSITIES OF LIFE - YOUR PHONE! ----------------------------------------------------------------- County Zoning Laws Reviewed Home Office Restrictions in Hawaii Courtesy, Paul Swengler, The Law Book Store Section 21-3.140-1 Home occupations - Standards and prohibited uses. The purpose of this section is to permit home occupations as an accessory use to dwelling units under the following restrictions and standards: (a) Home occupations shall be incidental and subordinate to the principal use of the site as a residence and shall not change the character and external appearance of the dwelling. (b) Only household members shall be employed under the home occupation. (c) There shall be no exterior sign that shows the building is used for anything but residential use. There shall be no exterior displays or advertisements. (d) There shall be no outdoor storage of materials or supplies. (e) Indoor storage of materials and supplies shall be enclosed and shall not exceed 250 cubic feet or 20 percent of the total floor area, whichever is less. (THERE'S MORE! STRETCH WINDOW AND SCROLL....) (f) Articles sold on the premises shall be limited to those produced by the home occupation and to instructional materials pertinent to the home occupation. (g) Home occupations which depend on client visits, including group instruction, shall provide one parking space per five clients on the premises at one time. This shall be in addition to parking required for dwelling use. Residents of multifamily buildings may fulfill the requirement by the use of guest parking with the approval of the building owner (management) or condominium association. (h) Activities which exceed the allowable noise levels as set forth in Chapter 43, Title 11, Department of Health Administrative Rules, as amended, must be conducted in fully enclosed, noise-attenuated structures. * The following activities are not permitted as home occupations: (1) Automobile repair and painting, except that repair and painting of vehicles owned by household members for purposes of maintenance shall be permitted, provided that the number of vehicles repaired or painted shall not exceed five per year. (2) Contractor's storage yards. (3) Care, treatment or boarding of animals in exchange for money, goods or services. The occasional boarding and the occasional grooming of animals not exceeding five animals per day shall be permitted as home occupants. (4) Those on-premises activities and uses which are only permitted in the industrial districts. (5) Use of dwellings or lots as a headquarters for the assembly of employees for instructions or other purposes, or to be dispatched for work to other locations. (6) Sale of guns or ammunition. (Sec. 21A-3.140-1, R.O. 1978 (1987 Supp. to 1983 Ed.); Am. Ord. 88-45, 90-93; 94-18) ----------------------------------------------------------------- SMALL BUSINESS NEWS * ONLINE EDITION * MARCH 1995, PAGE 8 About the Small Business News Online Edition Small Business Hawaii breaks new ground as it enters the information age with the online edition of Small Business News. What you see here is an abridged version of the regular March 1995 issue of Small Business News. Feel free to browse and download these articles for your personal reference. The articles that appear in this online edition of Small Business News are selected highlights taken from the regularly printed version, with some editing to bring the information as up to date as we possibly can. Small Business Hawaii invites you to comment on anything related to small business issues in Hawaii. Send us your comments and news of awards, promotions, etc., with photographs (if possible) to SBH by the 10th of the month for the next issue. Articles can be sent via regular (snail mail) to: Small Business Hawaii Hawaii Kai Corporate Plaza 6600 Kalanianaole Hwy., Suite 212 Honolulu, HI 96825 We also accept FAXED articles at: (808) 396-1726 (Sorry! faxed photos not acceptable.) You can also E-Mail your articles to Melvin Ah Ching right here at H4, Hawaii's Data Superhighwayª. Articles sent through the Internet can be forwarded to M.AHCHING1@GENIE.GEIS.COM For more information about SBH call: (808) 396-1724 SMALL BUSINESS NEWS ONLINE March 1995 * Volume 20, No. 3 A highlights only supplement to the regular issue. Editor & Publisher: Samuel M. Slom Directors: Joyce Edwards, Jean Fukuda, Jed Gaines, Janet Ha'ole, Kenneth T.G. Lum, Michael R. Marsh, Bob Sigall, Sam Slom, Jane Tatibouet & John Yanagihara. Computer Graphics: Melvin Ah Ching Online Service Provider: H4, Hawaii's Super DataHighwayª @ (808) 263-8625 ----------------------------------------------------------------- Reprinted & reformatted from original Telefinder file posted on the old H4 BBS system.