Legislature May Adjourn With Many Bad Bills

SMALL BUSINESS NEWS April 2010

The 2010 State Legislature which began January 20 is slated to adjourn Thursday. April 29. Many bad business bills may pass.

For many in business, on top of the recession and city and federal tax increases, this session has been the worst in decades.

Taxes, fees, and employer mandate hikes have been the order of business thus far.

Just when “they” told you don’t worry, a General Excise Tax increase is “dead,” Senators Roz Baker and Carol Fukunaga resurrected a 25% GET increase in HB 2877.

As SBH has warned for years, no bill is “dead” until the Legislature actually adjourns. That is because bills are subject to amendment, “gut and replace,” and changes during conference in the last two week of April.

On March 23, there was a rally by public unions and social services providers in favor of the GET. SBH and others organized a counter tax rally. The Tea Party Anti-Tax Rally will be April 15, 4 - 7 pm.

Meanwhile, the Governor signed the unemployment compensation tax relief bill into law as Act 2 last month. The bill still raises your UI tax by a hefty amount - from an average of $90 per employee per year up to $630 this year and $970 next year. It is not a good bill but the best business could get. The Chamber of Commerce of Hawaii, as is their M.O., settled early for a majority Democrat bill while snubbing the better and more generous Governor Lingle bill.

Besides UI and the GET, there still are bills to raise the minimum wage, personal income tax, the barrel tax (see separate story) liquor taxes and loads of other fees surcharges and raids on “special” funds.

The annual “Streamline” back end internet tax returned as SB 2405.

Bad law enforcement bills that impact business include HB 1756 which expunges all felony convictions after 5 years, thus denying business of information about prospective employees and HB 1752 which allows non-violent criminals unlimited acts without the mandatory repeat offenders law.

There is also a “vexatious requestor” bill (SB 2937) that would prohibit citizens from repeatedly asking information from government agencies even if the agency doesn’t provide the information.

Bills continue to raid special funds, (SB 2124, SB 2469 and SB 2806) spend more money and add employer mandates on workers’ compensation, sick leave and others.

Good news: the state wants to set up marijuana “compassion centers,” so you can smoke and dope your way to the higher taxes, but you would be charged $30 per ounce of weed in a new GET tax.

For the latest legislative news go online to the following websites:

http://www.capitol.hawaii.gov
http://www.hawaiireporter.com
http://www.smallbusinesshawaii.com.