By Richard O. Rowland, CLU, CFC, Rowland & Associates,

In the wake of the Oklahoma City, Flight 800, and Atlanta events, we have a President and other politicians at all levels talking and doing more and more to enhance our "security."

And, the more they do, the less secure we become.

Think back. Before we had all the security at airports we had virtually no bombings and only an occasional hijacking of a commercial aircraft. About 30 years ago my brother spent an unexpected night in Havana when the plane he was on was diverted to Cuba by a hijacker. But my brother and all other passengers were safe and sound back in Miami the next day. No one was dead or even injured. The airline company assumed responsibility. With security measures dictated from on high with no personal choices on our part comes the insecurity of being dependent on a government security system designed by experts and administered by bureaucrats with checklists. All of us know what that means; eventually the original purpose becomes obscure and the checklist reigns supreme. Delays for "security reasons" become the norm and all of us are expected (and many do) to turn off our critical judgment and fearfully rely on the experts or the system.

Since there is no "system" operated by humans which is foolproof, the more government security we get, the more problems we have and the problems get progressively worse and the lines of accountability get more and more fuzzy until no one can be pointed at without them pointing out someone else, and on and on.

What to do about it? Why not go back to the way that worked?

There is no airline company that desires to be hijacked, bombed or otherwise dumped on by some nut or group of nuts. If we simply say that the airline company is totally responsible and accountable for the safety of each and every passenger, I predict that the problems will decrease forthwith. Why? Because those companies will find amazing ways to identify and eliminate potential problems because if they don't they will lose their insurance, not to mention their source of revenue-the passengers. The way it is now the airlines are precluded from searching for innovative ways to assure safety because they are so busy responding to government inspections and attempts by government agents to catch them at an infraction listed on the ever-present checklists. Further, each airline will be intensely competing for the business of each other airlines and that will produce innovation and efficiency.

Here's the bottom line. Let's assume that all government mandated security measures were followed to the letter in the Flight 800 case. But, the persons who did this thing had discovered a loophole in the system. Is the Congress/President who dictated the system going to be held accountable? Is the FAA who administered it going to be held accountable? How? By criticism? Sticks and Stones? Is the FAA planner to be sued or disciplined? Heck no. They just write a new regulation. Contrast that to the system without the government. The airline and its work force are held responsible and accountable and the airline even goes broke sometimes. The loophole makers pay the price in a system that operated without government mischief.
Ladies and Gentlemen we are not talking vacant theory here. Many are dead. And I for one am confident of one thing-those in government will NEVER be held accountable for any part of it-even if their regulations and procedures were completely and totally flawed.

In our specific Hawaii situation, dependent as we are in the airline lifeline, each of us had better get the ear of our so called political leaders about this subject. Airline passenger harassment and insecurity cannot work to our advantage.

Harry Browne, Libertarian Candidate for President says it best: "Why government doesn't work" is the title of his book. Get it. Read it. And remember, this is not minor league stuff. Many more will die unnecessarily if this is not fixed.

We must begin saying, "give us less so we can have more."

Get Involved!

By William R. Sullivan, Retired SBH Member

Pamela Gottlieb (SB NEWS, August, 1996) was right when she urged all small business people to register and vote this September and November. She is even further correct when she urges small business people to get involved in the legislative process. But that's not the whole story.

We must get people in the legislature who understand small business and the problems we face daily. If you have never faced the high cost of Work Comp Insurance, and if you haven't seen first hand the abuses and fraud connected with Work Comp, your words will have no effect when the union brings up a person in a wheel chair holding three infants in her arms who got hurt on the job? We see it on TV daily where immigrants who have been in this country for 40 years and will be dropped from welfare because they never became citizens. Or a woman with three children and pregnant with her fourth will lose her AFDC because she has been on welfare for 6 years. For too many years, labor has portrayed business people as people who deprive infants of milk, children of a decent education and food while we deprive their parents of a living wage and have them work in conditions unfit for human beings. Unions provide monetary and people power support for the candidates that listen to and support their dogma. Business people on the other hand, think that going to the polls and voting on election day should put people into office who will support small business. HA!

It ain't easy to run for office! Having been there three times myself, I know it well. There are three things every candidate needs. They are HELP, HELP and HELP. The first kind of help is MONEY. Those signs, mailers, ads, fundraisers etc. cost money - lots of money. Advertising, successful advertising, is fundamental to winning an election. And advertising doesn't come for free. The next kind of help every candidate needs is many hands and feet, PEOPLE - many people. It is most discouraging when you and your spouse are waving your arms off on the side of the street when 4 trucks pull up and 40 retired union workers jump off carrying your opponent's signs and engulf you so completely that you give up in disgust. That's how many of our anti-business legislators keep returning to their jobs. Next, those brochures need to be stuffed into envelopes and mailed or hand carried door-to-door. The third kind of help every candidate needs is TALENT. Signs must be made, mailing lists obtained, reports made, ads conceived and printed, etc, etc, etc. If you have a special talent, tell the candidate and use it in getting him or her elected.

A candidate who supports business doesn't have to be in your district for you to support him or her. Find one who supports small business and get to work for that candidate. I live in Pearl City, but you will see my bearded face sign waving in Aina Haina. Why? I'm supporting a small business candidate! Our business is in Aiea, but I am contributing money to a candidate in leeward Oahu who supports business. If you don't give some business oriented candidate your all-out support in this election and get your neighboring businesses to do the same, there can be no change in the business climate in our State! Your complacence indicates that you don't care. If you don't know who to support, call Bill Sullivan for a Fax copy of a list of all pro-business candidates and their phone numbers. Call any one of them and volunteer to get on their team. Give them at least 3 hours one day a week. More if you can. Oh, and send them a check for at least $25. My phone is open on weekdays from 8 a.m. to 10 a.m. at 456-1069. Leave me your name and FAX number or address and I will Fax or mail you the list. You are encouraged to support more than one candidate. They need all the help we can give them.

Rumor has it that the unions are raising $200,000 for Senator Brian Kanno, the Senate Labor Committee Chairman who tries to bottle up all favorable business legislation. He is being opposed by Frank Fasi, Jr. (D) and Keoni Dudley (R). It will take 8,000 contributions of $25 each to equal the union goal for this legislator! Can 30,000 small business owners fight this kind of strength? You bet we can! But we must develop a solidarity that has never been equaled among the small business community. Now is the time. Get involved. Get your neighbors involved. Get your employees involved. Get your friends involved. The time is NOW!

If you have a FAX or a computer with a FAX capability and belong to SBH or NFIB and are not on their FAX networks, then call Sam or Bette and get on it today! We are going hi-tech in our candidate support using the FAX as the means of communicating the campaigning events for you to participate in. We will have a FAXBACK system which will allow you to call in to receive a FAX back to your FAX number the schedule of events for the candidate of your choice. We will be supporting people in office who have helped small business as well as trying to put people in office who will support small business. Plan a weekly commitment and match it to some candidate in your business or residential neighborhood. Remember, that legislator from district (?) can introduce and/or vote for small business legislation. If he or she is on our side, we need to demonstrate our support in labor and bucks.

Don't wave at me, wave with me!

2. What kinds of debt can be secured and collected by use of a mechanics lien? Any debt that is incurred by the furnishing of labor and/or materials for the improvement of real property such as: a. Labor provided to improve real property i.e., the labor to frame a house, design a home, garage or yard, to install plumbing, pour a concrete foundation or install electrical wiring. The labor to maintain air conditioning, elevators or repair an alarm system. b. Materials (including rental equipment from third parties) provided and used in the improvement of real property i.e., lumber, cement, cement mixer rental, roofing materials, asphalt for a driveway, or wire for fencing.

3. Who can establish a mechanics lien for the purpose of securing and collecting a debt owed? Any person or association of persons contracting to furnish labor or materials used in the improvement of real property are eligible to establish such a lien. This list includes but is not limited to painters, architects, building designers, interior decorators, landscape contractors, general contractors, subcontractors, carpenters, plumbers, gardeners, roofers, land graders, paving contractors and materialmen.

4. How is a mechanics lien established? a. An "Application For A Lien" and a "Notice of Lien" must be filed with the Circuit Court where the real property is located. The Application sets forth the factual basis for the claim of lien while the Notice sets forth the time and place for the hearing of the Application. b. The Application and Notice must be served in the manner prescribed by law for the service of a summons on the owner of the property, the general contractor, the contracting party (if other than the owner), and any person or entity with an interest (such as a tenant, lender, or surety of the contractor). Failure to serve any party with an interest may prevent the lien from ever attaching to that person's interest.

5. When can a mechanics lien be established? The filing of the Application For A Lien and the Notice of Lien, starts the Court process to establish the lien and must be filed in the Circuit Court no later than 45 days after the "Date of Completion" of the work of improvement. That Date of Completion means the substantial completion of the entire work of improvement or the abandonment of the work of improvement and not just a portion of the project. Therefore if a subcontractor (whose contract for grading is with the general contractor) completed the grading of a lot upon which a building was to be erected he or she would have until 45 days after the substantial completion or abandonment of the entire project to file the Application For and Notice of Lien. However, if the contract to grade the building lot was made directly with the party who contracted for the work of improvement (i.e. the owner) and not with the general contractor or one of the other subcontractors, the grading contractor would have only 45 days from the completion of his or her work in which to file the necessary Application For and Notice of Lien in order to establish its claim of lien.

6. Must there be an appearance in court? Yes, there are two hearings to be completed. a. The first occurs not less than 3 days nor more than 10 days following service of the Application For and Notice of Lien. At this hearing, called Probable Cause Hearing, the Court determines whether probable cause exists to permit the lien to attach to the real property. If probable cause to allow the lien to attach to the real property is found you must prepare and provide the Court with an Order Directing the Lien to Attach. Upon execution by the Court the Order must then be served upon all interested parties (described in #4 above) as well as with the applicable Registrar of the Land Court or the Bureau of Conveyances. b. Now can I have my money? Not quite. You now have 90 days from entry of the Order Directing the Lien to Attach in which to make demand for payment and if not so paid, to file a complaint to foreclose on your lien. If your demand for payment and the filing of the complaint are not completed within that 90 day limit your lien expires and you lose your mechanics lien rights. Assuming you have met the above requirements and have served the interested parties (described in #4 above) you then, in due course, will have a hearing on the merits of your mechanics lien claim. When you prevail at that hearing an order will issue usually directing the property be sold and the proceeds paid over to you. If a deficiency on the debt exists after the sale you would ask that such a deficiency judgment be issued against the debtor for collection.

7. Can I protect and recover a mechanics lien by myself? Yes, however be warned that the law regarding liens is technical, detailed and requires strict adherence to its requirements and exceptions. It's one of the reasons not all attorneys practice in the Mechanics Lien area. One must be familiar with it's many pitfalls. Seek the advice of a professional who devotes the major part of his or her law practice to the enforcements and recovery of Mechanics Liens.

8. Is it expensive to protect and collect a mechanics lien? It need not be expensive. In addition to the amount owed you, your professional will seek recovery of your attorney fees and costs. Lastly, an experienced professional should be capable of quoting in advance, a fixed or not to exceed cost to recover your money.