Work Comp Bills Hearing on Tuesday

Aloha!

The House Labor Committee has already scheduled two workers' compensation bills that crossed over from the Senate. These bills are moving fast! If they pass the Labor Committee and the Finance Committee schedules them right away, the bills could be sent up to the Governor's office during session, meaning if the Governor vetoes the bills, the Legislature could still override the bills during session. The bills are:

SB 62 Workers' Comp (IME)

SB 695 Workers' Comp (Uninterrupted Medical Treatment)

These bills will be heard on Tuesday, March 3 at 10:00 a.m. in Room 309. Please encourage your members to submit testimony. Please feel free to use the Legislative Action Center website (http://www.cocaction.com/mx/hm.asp?id=LAC), which will enable your members to submit testimony instantly.

If you have any questions, please do not hesitate to contact me. Thank you for your support.

Sherry Menor-McNamara

State Legislature is Increasing Taxes!

Dear Businesses and Members: I am forwarding main Chamber's email alert for your action.

"Hello all, Just wanted to give you a heads up on two tax-related bills scheduled for hearing on Thursday at 3 p.m. in the House Finance Committee. HB 1742 is a bill that will repeal certain general excise and use tax excise exemptions and exclusions. It also reduces the tax rate on sales to the final consumer from 4% to 3.5%. The bill would impose GET on wages, which are currently exempt. This would be imposed on gross wages, without any offset for deductions. It would therefore amount to the equivalent of a huge income tax increase.

My guess is that the tax burden of the imposition of GET on wages would be greater than the benefit of a reduced rate on retail purchases. Moreover, this increased tax burden would fall entirely on Hawaii residents, while visitors would just enjoy the benefit of the lower GET on retail purchases. Many of our organizations as well will be affected because this bill will remove the GET exemption from non-profit organizations.

Additionally, the bill eliminates the exemptions for non-profit hospitals, cemeteries, sale of prescription drugs and many other exemptions. Real property sales and sales of stocks and other securities which are now exempt, would become taxable for any business entity or individual engaged in a trade or business.

Finally this bill will impose the GET on export sales. HB 1548 is an omnibus tax bill to provide tax equity and stimulate the economy by increasing general excise tax rates, reducing the income tax rate and establishing a hotel and renovation tax credit. This bill increases the GE Tax by ½ %. We will not support the bill, however we will note that if it passes, then we will provide input as to what would be workable and fair.

I do not have a sample testimony to provide you as I am currently working on it, but if you can, please submit testimony regardless if it's a short letter. Here is a link to the hearing notice for HB 1742: http://capitol.hawaii.gov/session2009/hearingnotices/HEARING_FIN_02-26-09_6_.HTM and HB 1548: http://capitol.hawaii.gov/session2009/hearingnotices/HEARING_FIN_02-26-09_4_.HTM.

Thanks.
Sherry R. Menor-McNamara
Vice President, Business Advocacy & Gov't. Affairs
1132 Bishop Street, Suite 402
Honolulu, Hawaii 96813
Ph. 808-545-4300 x 394
www.cochawaii.org
Fax 808-545-4369
smenor@cochawaii.org

The Voice of Business in Hawaii

Siren test

Aloha Members,

We need “spotters” (actually “listeners”) to help determine where the new localized sirens can be heard. The Dept of Emergency Mgmt is setting up a warning system that can be given to localized regions, as opposed to the whole island. This will help if Waialua and Haleiwa need to be warned about flooding or Wilson Dam breaking.

Please complete and send the form back to Alenka for Thursday morning’s test. If the dam were to break, it is predicted that both Haleiwa and Waialua would be severely compromised/ damaged.

Mahalo,
Antya

Pipeline Pro hoping to run today with 18-foot surf expected

The North Shore surfing scene was relatively quiet throughout the month of January, so several events are hoping for a rise in February.

Among the contests that could run this month:

• The HIC Pipeline Pro Trials men's surfing contest is expected to run at the Banzai Pipeline today, organizers announced late yesterday.

• The Turbo Pipeline Pro bodyboarding contest has a holding period of Feb. 16 to 27 at the Banzai Pipeline.

• The Quiksilver In Memory of Eddie Aikau Big Wave Invitational and the Bank of Hawaii North Shore Tow-In Championship are still awaiting for a giant swell to hit O'ahu.

More at the Honolulu Advertiser