(This story was prepared prior to the scheduled April 29 ending of the State Legislature, which began January 15. Final budget hurdles, taxes, and union collective bargaining contracts could extend the Session. A final, detailed wrap-up will be included next month's SB News.)

The good, the bad, and the ugly, aptly describes the 1997 State Legislative Session.

For the third legislative year in a row, same sex marriage, automobile insurance and the state's High 3 pension and retirement scheme dominated the 1997 60-day session. Money shortages and union public employee collective bargaining contracts-including the $107 million teachers settlement - pushed money and budget issues to the forefront. New and higher taxes were being discussed right up to adjournment. Business incentives were lost.

A same sex bill and companion "reciprocal beneficiaries" benefits were passed. A "ban" on same sex marriages, via a constitutional amendment must be voted on by the public in November, 1998, hoping to forestall further court action. Reform of the "High 3," with reductions in benefits legislators and other elected officials can obtain if they get appointed to higher-paying positions, is subject to a proposed new law.

An automobile insurance compromise, neither pure tort nor no-fault, designed to reduce premiums by 20 - 30% was anticipated at session end. Hawaii has the 2nd highest rates in the U.S, and liberal benefits, costly add-ons and numerous cost-drivers. The House tried to cost-shift medical costs to employers' prepaid health; the Senate opposed the shift.

Job creation, an improved business climate and economic incentives were shelved.

Tax reduction was dead early in the '97 Session (though tax INCREASES lingered) and little was done for regulatory or mandated benefit relief. Privatization remains controversial. That left Workers' Compensation reform and it depended on adoption of coordinated managed care. As he has done for three previous sessions, Senator Brian Kanno co-chair (with Suzanne Chun-Oakland) single-handedly scuttled reform and denied even a public hearing on the bill on orders from his anti-business union allies.

Senate leadership, professed their "commitment to small business and workers' comp reform," but were impotent in convincing Kanno to have the slightest degree of fairness. The vaunted two-heads-are-better-than-one co-chair process instituted this year to make hearings more accessible, failed. Senate Democrats went so far as to engage two Alternative Dispute Resolution (ADR) "experts" (a UH political science professor and a member of the Attorney General's staff) to help "study" and "mediate" the issue between employers and unions. The Legislators have shirked their responsibilities since 1983 and now seek to have ADR do their work. The answer is so elementary: hold public hearings as in the case of every other issue. But the unions refuse to have public scrutiny of the excesses they demand in work comp. The result is harmful, to business - and employees, present and future.

A total 4,287 bills were introduced; about 250 will become law. Most continue to increase the size and cost of government. Bills to reduce government, cut taxes and provide more take home pay, limit the number of bills introduced, privatize and create a unicameral (single body) Legislature, all died; most without any hearing.

An effort to again increase Hawaii's minimum wage was stalled. It will reappear in '98.

The still unopened $350 million State Convention Center, is plagued by bigger debt payments necessitating a transfer of funds and threat of higher taxes. A proposal to sell or privatize the Center was unresolved at press time.

Measures were debated that proposed to tax annuities, pensions, increase the General Excise Tax, add County sales taxes, increase "sin," transient accommodations and fuel taxes. However, lawmakers removed most of the last remaining tax credits for Hawaii's already over-taxed residents. And, oh yes, the rail transit and people mover concept resurfaced.

Other bills expand government power, create more commissions, and new studies. The unions continue their domination over legislation and key legislators. A particularly blatant bill, introduced for the UPW by Senators Kanno and Chun-Oakland, stipulates that when state law and the public's right to information regarding crimes by public employees are at odds, collective bargaining contracts are superior to the state law.

One of the few bright spots was the Governor's signing of SB 1493 as Act 4 on March 31 that allows for the establishment of one-person limited liability companies. Hawaii became the 50th State to allow LLCs with 1996 legislation effective April 1, 1997.

"Business Helping Businesses" is the theme of Wednesday, May 7, as Hawaii's business community gathers for "Small Business on the Move '97," a day-long free trade show at the Blaisdell Center Exhibition Hall from 8:00 a.m. to 7:00 p.m.

Approximately 200 exhibitors, including Small Business Hawaii, will take part in Hawaii's premier business trade show, which promises to offer everything an existing or new company needs to improve its bottom line.

Small Business on the Move '97 is presented by Bank of America, sponsored by Kaiser Permanente and PrimeCo Hawaii, and is an event of The Chamber of Commerce of Hawaii.

The day's events include a business luncheon featuring keynote speaker George Mason publisher emeritus of Pacific Business News.

Activities will also include the Chamber's "Good Morning Hawaii" business breakfast meeting. The morning's speakers will include Mayor Jeremy Harris, and Bette Tatum, president of the National Federation of Independent Business (NFIB).

A separate fee will be charged to attend both the Good Morning Hawaii breakfast and the Small Business on the Move '97 luncheon. For more information about attending these events, call Kim Dove of The Chamber of Commerce of Hawaii at 545-4329.

The U.S. Small Business Administration (SBA) will honor 52 of America's top small business entrepreneurs at national ceremonies in Washington, D.C., during National Small Business Week, June 1 - 7.

The leading business owners come from each state, plus the District of Columbia and Puerto Rico. One will be selected as a national Small Business Person of the Year.

Hawaii's 1997 statewide Small Business Person is Jon DeMello, CEO of the Mountain Apple Company. DeMello was selected for his "keen marketing sense and artistic direction," and his company expanded from local music licensing and publishing firm to an internationally recognized entertainment management firm with a wide distribution network for audio and video releases.DeMello has been a major influence in the resurgence of Hawaiian music worldwide.

(A complete listing of all 1997 SBA small business awardees for Hawaii was included in the April issue of SB News).

Hawaii winners will be honored at the Tenth Annual Small Business Awards Luncheon, Thursday, May 22 at the Ilikai Hotel Nikko in Waikiki, 11:30 am. The event is cosponsored by the SBA, Chamber, Hawaii Business League, NFIB and SBH.Special events are also planned for Neighbor Island awardees, sponsored by local Chambers.

Awards will also be given to a Young Entrepreneur, Exporter, and Small Business Advocates (women, media, veterans, minority and financial), and outstanding small business prime contractors and subcontractors who do business with the federal government. An Entrepreneurial Success Award is presented to a former small business that has developed into a large business with SBA assistance.For reservations, call 541-2990.

The YWCA Women's Resource Center, Ke Kulana Wahine, opened its doors on April 25th with a blessing and reception. The YWCA of Oahu, in conjunction with the Junior League of Honolulu and the Soroptimist International of Waikiki, has conceived the Center as a place to reinforce, enhance and embrace the status of women. Keynote speaker was Lt. Governor Mazie Hirono.

Designed as a drop-in resource center, the YWCA Women's Resource Center will provide the community with information on local services available to women. Housed at the Center will be a library of reading material, audio and video tapes, and direction in accessing professionals in various fields. Visitors will find personal consultations as well as resources related to career development and other areas of special concern to women including finance, health and law. Ke Kulana Wahine also will provide referral services, function as a place for networking with other organizations and offer workshops, seminars and cultural events.

It is located on the third floor of the YWCA at 1040 Richards Street in downtown Honolulu and will be open Monday through Thursday from 10:00 a.m. to 7:00 p.m. and on Fridays and Saturdays from 10:00 a.m. to 5:00 p.m. Additional Center collaborators include Ask 2000, which will provide the Center with database resources. The Hawaii State Commission on the Status of Women has donated library materials and Hawaii Lawyers Care Americorp Program will share office space.

For more information contact Mary Arace at 538-7061, Ext. 250.

The Young Entrepreneurs Subcommittee ("YES") of Small Business Hawaii would like to express our gratitude to our most recent speaker, Peter A. Matsumoto, CPA of Comprehensive Business Services. Their forte is Business Services relating to Bookkeeping, Tax Services, Payroll, Business Consulting, and Financial Services.

Mr. Matsumoto shared many valuable highlights of the Tax Law Update of 1996 at our monthly meeting at the Wisteria Restaurant on March 27. The outline presented was very thorough and generated much interaction especially in the areas of Employee vs. Independent Contractor and Home Office Expenses and their tax consequences.

It was refreshing to hear Mr. Matsumoto break down complex subjects to a more user friendly understanding. The attendees were also treated to new changes in the retirement account planning arena and were exposed to the latest government creation, the Savings Incentive Match Plan for Employees, (SIMPLE).

If anyone requires further information or input from Mr. Matsumoto we encourage you to contact him personally at 395-5492 or visit Comprehensive at their web site at http://www.cbsaccounting.com.

Please join "YES" on Thursday, May 29 at the Wisteria from 11:00 a.m. to 12:30 p.m. and be educated by Reg Baker, from Reg Baker & Company as he will be presenting "Budgeting: Where is My Money Going?"

The Retail Merchants of Hawaii in cooperation with the Maui Chamber of Commerce will present the Second Annual Maui Retail Conference on Friday, May 16 at the Kaanapali Beach Hotel.

Speakers include:

* Marsha Wienert Maui Visitor's Bureau, "East West and Beyond!"

* Chris Resich, President, Pomare Ltd., "From Hawaii's Beaches to the Pacific Rim."

* Pete Martinez, President, Hawaii Internet Emporium, "Maui Retail on the Internet."

* Beth Terry, President, Pacific Rim Seminars, "Getting Out of Overwhelm."

* State Representative Mike White will be the featured luncheon speaker.

This conference provides a great opportunity for all retailers and their associates, large and small, to come together for a morning of networking and learning from people who share the same concerns and problems.

Reservations are necessary as space is limited. Tickets are $45 each. Call or fax the Retail Merchants for more information and for registration at 808-592-4200 or FAX 592-4202.

Top editors of national book publishers are joining an all-star line-up of local publishers, editors, authors and a literary agent at the Honolulu Writers Conference on Saturday, May 10, from 8:30 a.m. to 5:30 p.m., at the University of Hawaii campus, Jefferson Hall.

Some of the presentations include:

* "How to get your fiction book published," David Highfill, senior editor, Penguin Putnam Inc., America's 3rd largest book publisher. He will discuss the common mistakes authors make, how to find your "voice," and how to get an editor to fall in love with your novel.

* "How to get your non-fiction book published," Mariah Bear, managing editor of Ten Speed Press, one of the nation's largest independent book publishers. She will review the do's and don'ts of how to approach a publisher, write an effective query, and much more.

* "What a literary agent can do for you," Roger Jellinek, a prominent literary agent, and a former editor of the New York Times Book Review and the New York Times Publishing Company.

* "How to get your book published in Hawaii," Darrell Lum, editor - publisher of Bamboo Ridge Press, specializing in local fiction, short stories, and poetry since 1978.

* "How to self-publish and sell your book," Rich Budnick, author and self-publisher of Hawaiian Street Names, Maui Street Names, and Stolen Kingdom which have sold more than 25,000 copies.

Attendees should bring a brown bag noon lunch. Refreshments will be provided. Registration for the all-day conference is just $85, and $50 for students. Checks should be made payable to Aloha Press. Mail to: Honolulu Writers Conference, Box 4183, Honolulu, HI 96812. Call 395-1161 for more information.