'99 LEGISLATURE ENDS
WITH A WHIMPER

The 60-day 20th State Legislative Session which began on January 20 ended its regular 60 working day session on Tuesday, May 4. The best thing that could be said about what has been described alternatively as, "The Do-Nothing Session," and "The Bronster Session," (for the Senate defeat of reconfirmation of Attorney General Margery Bronster, was that it ended on time. What started with a lot of talk and hope of improving the economy, ended with a whimper and no meaningful changes.

SBH and the Small Business Legislative Coalition gave the '99 State Legislative Session a failing grade of "D-/F+" overall.

Others who rated the Legislature including: 150+ business visitors to the "Small Business On The Move Expo;" A Honolulu Advertiser poll, and members of the Building Owners & Managers Association (BOMA) rated the lawmakers exactly the same: nearly 75% of all who were surveyed agree this session was "very bad" to "terrible." The median grade seems to be a "D-" with many giving lawmakers an "F" searching for an even lower grade.

However, individual legislators fared better in most circumstances, when business advocacy and positive votes were examined.

PAYCHECKS HAWAII annually rates each of the 76 individual lawmakers on their business climate advocacy and those ratings‹the only such ratings published each year.

The '99 Legislature was supposed to "fix" Hawaii's depressed economy. It did nothing.

Act 1, approved $19,4 million to operate the Legislature and its support agencies. HB100, the State Operating Budget, appropriates $12.4 billion, 4% more than the current biennium and adds 900 new employees next year and 1,000 in 2001.

Meaningful business climate improvement, tax cutting, education and civil service reform, was talk, with no action. But, HB 746 establishes hula as the official state dance‹close call between hula and "swing dancing" (not!)

Some good bills passed included: HB 32, Private Hemp Experimental Plot; HB1197, Conformity with IRS; SB36, Collection of Apartment Common Expenses; SB44, GET Tax Exemption for Exported Contracting/Services; SB131, Long Term Care; SB186, Limited Tort Reform; SB450, Encourages Public-Private Competition; SB638, Reduces GET pyramiding from 4% to .5% over 7 years by 2006. Governor may veto this bill; SB737, Reduces Certain Noise Permit Requirements ; SB 1071, SCOR (Small Corporate Offerings Registration); SB1139, Amends Limited Liability Company Law; SB1177, Bulk Wholesale Condiments Taxed at 0.5% (current=4%); SB 1501, "New Century Charter Schools," SB1583, Omnibus Technology Bill.

A few of the bad bills passed included: In addition to more than two dozen newly created "special funds," HB20, Increases Judicial Pay (defective); HB98, Another Bonus for Public Pensioners; HB165, Penalizes GOP, Other non-Democrat Parties' fundraising; HB221, Shields Hawaii Tourism Authority from Sunshine Laws; HB 266, New Mothers Breastfeeding Promotion (defective); HB 765, Increases Daily Car Rental Tax from $2 to $3; HB850, Extends Amnesty (again) for Uninsured Motorists; HB1111, Extends Y2K Liability Immunity; HB 1146 Increases Vital Records Fees; HB1663; Closes State Hospital (defective); SB 822 Mandates Birth Control in Every Health Policy; SB 844, Mandates additional mental health and substance abuse coverage in every health policy; SB 947, limits telemarketing under guise of "fraud prevention;" SB1034, Hawaii Tobacco Settlement Special Fund‹40% to "Budget Reserve Fund" (non-health); SB1131, Increases Fees to Insurance Examiners Revolving Fund; SB1518, Raids the Employees Retirement System to pay state-county retroactive pay raises; Also, the Hotel Renovation Tax Credit ‹ defective and failed.

In the end, the Senate's 14 - 11 vote against reconfirmation of popular Attorney General Margery Bronster and 15 - 10 vote against Budget Director Earl Anzai, grabbed headlines, galvanized the public and deflected focus further from the business at hand: the economy.

SMALL BUSINESS ON THE MOVE -
PLAN FOR NOVEMBER TRADESHOW

Many SBH members visited the Small Business Hawaii booth at the successful 11th Annual "Small Business on the Move" Expo May 4 - 5. Attendance was up from the previous year and members reported doing substantial business.

A program of the Chamber of Commerce of Hawaii, Small Business Council, the event was sponsored by American Savings Bank. The expo was produced by SBH member Production Hawaii, Inc. at Blaisdell Exhibition Hall.

Plans are being finalized for the 2nd Annual Small Business Hawaii "The Tradeshow," on Tuesday and Wednesday, November 16 - 17, also at the Blaisdell. SBH promises a lively show that will help you network and do more business. SBH and production Hawaii also guarantee low cost exhibit space alternatives for micro businesses who couldn't afford to exhibit in a show previously.

For additional information now, call Production Hawaii, 532-7300.

AUTHOR DAVID HOROWITZ SPEAKS AT HPU

David Horowitz, best-selling writer, commentator, lecturer, and media host, made a special appearance in Honolulu May 3. Cosponsored by Young America's Foundation, SBH, and the HPU Reason Club, Horowitz spoke to Hawaii Pacific University students and the public. The author of "Radical Son," and "The Politics of Bad Faith," spoke on, "The Battle of Political Correctness."

Last year SBH cosponsored a visit and talk by Oliver North at the University of Hawaii campus. SBH will cosponsor additional national speakers later this year.

SBH BOARD NOMINEES SOUGHT

SBH is looking for a few good men and women to run for seats on the Small Business Hawaii Board of Directors this year. Four (4) Board seats are up for election in 1999. All active members of SBH are eligible. Directors are elected by the general membership during November.

Nomination deadline for members seeking a seat is August 1, 1999.

There are currently 11 members of the SBH Board. All serve staggered terms of three years and are directly elected by the membership in November. All are unpaid volunteers, except for the Executive Director.

Current board members Jean Fukuda, Kenny Lum, Mike Marsh and Jane Tatibouet, have terms that expire December 31, 1999. Other members may seek the four seats as well.

SBH Members are always encouraged to actively participate in all SBH projects and organizational planning, including the Board of Directors.

If you would like to run for the Board, or nominate another active member (with their written permission), please contact Sam Slom at SBH for information and nomination forms.

FIRST "HAMMER & SICKLE" AWARD
GIVEN TO REP. TERRY YOSHINAGA

A new, "prestigious" award has been instituted by freshman Republican State Representative Jim Rath (North Kona/South Kohala). This award, in the words of its sponsor, is bestowed upon, "that Legislator who has done the most to support compulsory labor unions, move the cause of socialism forward, increase taxes and regulations on business, and foster the growth of government while fighting capitalism and free enterprise."

The first such recipient, after tough competition in the House and Senate, is Democrat State Representative Terry Nui Yoshinaga, (22nd District, McCully, Moiliili, Pawaa), House Labor Committee Chairwoman, and supporter of increased taxes, regulations on business and a bill prohibiting a business buyer from changing any employees for one year.

In 1995,Yoshinaga was a co-recipient of SBH's "Legislator of the Year" award, but since then has voted for tax and regulatory increases.