Long time member, community leader and financial analyst extraordinaire, Desmond J. Byrne died on his 63rd birthday, August 3. He was described as "Hawaii's crusader for truth," "conscience of the community," and one of Hawaii's "brightest shining lights." Byrne was all that‹and more. His passion was open government, accountability and ethics. He was unflinching in his battle to protect the public's right to know.

In less than two months, Small Business Hawaii and the state have lost two outstanding leaders and small business advocates. In early July, SBH Director and Corporate Secretary, Jean Fukuda passed away (see cover story in August SB News).

Bynre is survived by wife and business partner Jo Kamae Byrne, son Jahan and daughter Maya. Byrnes and family operate Honolulu Information Services, begun in 1982. The firm provides invaluable business and government research.

A Certified Public Accountant, Byrne had extensive worldwide experience and training as a CPA with Price Waterhouse, bank comptroller, treasurer of Hawaii's Malia International garment manufacturer, FEO of Computab, Inc. Besides his active involvement with Small Business Hawaii, Byrne was closely associated with Common Cause Hawaii., Goodwill Industries, Friends of the Library of Hawaii, the Honolulu Community Media Council, Film Society of Hawaii (which he founded), Friends of the East West Center, and several more community organizations.

It was Byrne who always asked the tough fiscal questions of state and county officials in Hawaii‹and got answers. He was the protector of taxpayers and their funds, an uncompromising for open, honest government. In 1995, Byrne was named SBH "Small Business Person of the Year."

TATIBOUET, ZIMMERMAN TO
HEADLINE SEPTEMBER SBH SUNRISE

Join SBH for our next "Small Business Hawaii Sunrise" networking breakfast forum on Thursday, September 16, at 7:00 a.m., at the Pacific Club in downtown Honolulu.

Andre Tatibouet, famed hotelier, entrepreneur and CEO of Aston Hotels & Resorts and Malia Zimmerman, crack business investigative reporter for Pacific Business News headline our next Sunrise program. You'll want to attend‹and bring associates or clients as guests.

Tatibouet, a recognized expert and major player in Hawaii's visitor industry, will discuss, "How to Succeed in Hawaii's Visitor Industry Today." With declining arrivals, Asian economic upheavals and new competition worldwide, Tatibouet will offer some guidelines to assist Hawaii's biggest and most important industry.

Zimmerman, the PBN page one business reporter and news breaker, will speak on, "Finding the Truth in Business and Government." Zimmerman is well known for her in-depth business profiles and stories involving government funding and regulations. In January, 1999 she was honored by SBH as "Outstanding Investigative Business Reporter of 1998."

Come prepared for an hour and a half of a little of everything: great speakers on "hot" topics, useful tips from successful entrepreneurs, get-acquainted activities, a delicious Pacific Club buffet breakfast, super networking opportunities, lively discussions of community issues, fabulous door prizes, and more - all for just $15 to SBH members and their guests who reserve in advance. (The cost is $20 at the door provided space is available.

Reserve Thursday morning, September 16 on your calendar for "SBH Sunrise." For an application form, see page 8 of this month's printed edition of Small Business News or call SBH at 396-1724.

STATE LABOR DEPARTMENT DENIES
SBH APPEAL - AFTER 9 YEARS

As reported in the July 1999 SB News, Small Business Hawaii in 1990 wanted to intervene on behalf of its members in a labor dispute involving paying union strikers unemployment compensation benefits (Local 5 vs. the Hilton Hawaiian Village Hotel). The SBH argument was that if the benefits were granted, ultimately, small business employers (members) would pay higher UI tax rates.

Michael Marsh, partner with Case Lombardi & Bigelow, and an SBH Board member, represented SBH before the State Department of Labor & Industrial Relations in 1990 and 1991. A formal hearing on a Motion to Intervene was conducted on Monday, January 14, 1991. Despite numerous communications, nothing happened - until June 3, 1999. At that time, the DLIR suddenly wrote to say it would "shortly" schedule a hearing. Even though one had been already held.

Probably miffed, by its own bureaucratic inefficiencies, the State Labor Department issued the long - overdue ruling on August 6, 1999, denying Small Business Hawaii's Motion to Intervene. In a convoluted and confusing four page decision, DLIR stated in part, "...one employer in the appeal is no longer a member of the organization (SBH). Moreover, the employers involved in the labor dispute appeals did not designate the SBH as their representative in the appeal nor did they request the SBH to intervene for them in the appeal hearing."

BUMATAI, PBN, ON BOARD FOR
SBH'S THE TRADESHOW '99!

As reported in the July SB News, SBH's Second Annual Small Business Hawaii The Tradeshow '99 will be held November 16 and 17 at the Blaisdell Center in Honolulu.

This business trade show will attract business owners and managers interested in products and services that will help them operate more efficiently and profitably. It will also help participants do more business.

SBH members who acted by July 31 had first choice of all booth locations at Hawaii's most affordable major business expo‹and at substantial savings.

Pacific Business News is The Tradeshow '99 media partner.

Mike Rossell's Production Hawaii, Inc. staff is working hard for SBH members in preparation for the unique two-day small business expo. Rossell announced that Andy Bumatai, popular Hawaii comedian, actor‹and small business entrepreneur‹has signed on to be an active part of The Tradeshow '99. More program details will be announced next month.

There are still booth spaces available at the expo. Don't miss out! For information and reservations, contact Barbara Garofano or Darla Hochhalter at Production Hawaii, Inc., 532-7300.

SALES TAX ACCORDING
TO THE LATEST DATA

By Bob Sigall, Creative-1

Recently released information by the Small Business Survival Committee provides some startling insights into the extent of the pyramiding of Hawaii's General Excise Tax.

The study examined all forms of taxation and the costs of government for all 50 states and the District of Columbia. Of particular interest is the data they found on the net effect of our General Excise Tax.

Hawaii is the only state in the nation with a General Excise Tax. While other states tax the final purchaser of a product, Hawaii taxes the intermediaries (manufacturers, suppliers, utilities, freight haulers, accountants, etc.) as well. This "pyramiding" has always been hard to put a number on, but the Small Business Survival Committee provides some clues.

They measured the net effect of our GET. Californian's, for instance, paid $3.10 in sales taxes for every $100 in personal income. In Hawaii the figure was $4.81 - 55% more.

But wait a minute. Californians pay a sales tax of about 8.75%. Hawaii's GET is only 4.16%. How can we pay 55% more?

The answer is pyramiding - the taxes on intermediaries that gets built into the price on the shelf. Our rate is lower, but taxing each step yields a higher net for the state.

Can we use this data to pinpoint the extent of Hawaii's pyramiding GET? The data suggests we can.

Hawaii's 4.16% GET = 13.5% sales tax

If Hawaii residents pay 55% MORE than Californians per $100 income, and their sales tax is 8.75%, what would be the equivalent Hawaii sales tax that would yield the same amount? The answer is 55% more or 13.5%.

If Hawaii switched to a sales tax, we'd have to set the rate at 13.5% to yield the same revenue as our 4% GET. So, when you hear people say that Hawaii's GET is only 4% - much lower than many other states, you know better. Our rate is the highest in the nation. Only 30% of our GET is visible. The other 70% is hidden.

When you buy an item for $1.00, four cents is added as tax. What you don't see is that the price before taxation is about 93˘. Seven cents of the tax is hidden. This is part of the reason Hawaii ranked worst among the 50 states on the Small Business Survival Index for 1999.

Would Hawaii taxpayers stand for a 13.5% sales tax? Not for a moment? But wait a minuteŠthat's what we are paying!

WOMEN'S TRADE SHOW SEPT. 10

A "Creating Your Own Success" Conference and Trade Show is being organized by the Women in Business Committee (WIBC) of the U.S. Small Business Administration (SBA) in partnership with the Small Business Development Center and supported by the Financial Women International and Women's Financial Resource Center.

The conference and trade show will be held on Friday, September 10th at the Hale Koa Hotel.

The goal of this conference is to provide women entrepreneurs financial information and access to resources to assist them with their business. It is a great educational and networking opportunity designed to help businesswomen share resources and skills. A combination of motivational group sessions and smaller breakout meetings will help maximize participation and the exchange of practical information. Conference topics will include marketing, sales, technology, finance, management and business plan preparation.

For more information, contact Anna Liu at 537-8148 or Janel Yamamoto at 525-6148. For questions regarding registration contact Doreen Ezuka at 541-2971 or email: doreen.ezuka@sba.gov.

ALOHA FESTIVALS OPENING SEPTEMBER 4

SBH member, Aloha Festivals, the only statewide multicultural celebration in the nation, celebrates its 53rd year with some 300 events on six islands over a two-month period beginning this month. Thousands of volunteers labor to stage the events, which are attended by nearly one million people, visitors and residents alike.

Aloha Festivals was created in 1946 as Aloha Week to help preserve Hawaii's island traditions and honor its cosmopolitan heritage. The festivals are funded through appropriated funds from the Hawaii Tourism Authority, corporate sponsorships and private donations, as well as through the sale of Aloha Festivals ribbons and other merchandise.

The 'Iolani Palace Queen's Serenade and Aloha Festivals Opening Ceremony will be held on the front steps and lawn of 'Iolani Palace, Saturday, September 4, from 5:00 p.m. to 7:30 p.m. The event is free.

The Friends of 'Iolani Palace has partnered with the Aloha Festivals Opening Ceremony as part of 'Iolani Palace's annual Queen's Serenade. The event will feature music written by Queen Lili'uokalani and performed in celebration of her birthday.

The Aloha Festivals headquarters is located in Ward Warehouse at 1050 Ala Moana Blvd. The offices may be reached at 589-1771 or toll-free at (800) 852-7690. The mailing address is P.O. Box 15945, Honolulu, HI 96830-5945.

SBH OFFICE NEEDS HELP

Small Business Hawaii needs help! SBH has been without a full-time secretary/administrative assistant/office manager since the end of 1998. SBH needs someone now!

Do you know of a person who wants to work looking for a change in employment, or that first job? SBH is looking for such a person and will provide a challenging, high profile career opportunity in a 2-person office in Hawaii Kai. (East Honolulu/Windward residents given preference). Scheduling can be flexible to accommodate family, school, etc.

But SBH is picky! The applicant MUST be an excellent communicator, "people-oriented," and creative self-starter, willing to accept maximum responsibility for projects and follow through. Should be interested in, and knowledgeable about, business in Hawaii and the varied networking, community and legislative activities SBH is involved with.

Will train right person. Competitive hourly salary and benefits, bonuses, and advancement potential.

Interested? Mail or fax (808-396-1726) resume with salary and other requirements to the SBH office, Attention: President.

FOODLAND LAUNCHES
"GIVE ALOHA" PROGRAM

"Give Aloha" is an annual program through which SBH member Foodland will direct its charitable giving to the organizations that are important to its customers. The program honors Maurice J. "Sully" Sullivan, founder of Foodland Super Market, Ltd. and continues his legacy of giving back to the community.

Who can participate? All Hawaii 501c3 non-profit organizations are invited to participate. Groups that are not registered as a 501c3 organization may register through a 501c3 sponsoring agency that is affiliated with the group. The registration must include the sponsoring agency's IRS letter of determination and signatures from the executive director and board chairman.

How do we register? Organizations that wish to participate should obtain a registration form. An IRS determination letter indicating that you are a 501c3 type organization must be submitted with your registration.

Deadline: Must be postmarked by Sept. 1, 1999. No exceptions.

Foodland reserves the right to refuse participation of any non-qualified organization.

How does the donation process work? From September 8 - 30, Maika'i Members will be invited to make a donation of up to $249 at checkout to their favorite Hawaii non-profit organization registered in the Give Aloha Program. Donations will be accepted at any Foodland or Sack N Save checkout. A code will be assigned to each organization for donation tracking at checkout. The donation amount will be acknowledged on the customer's receipt. Donor names will not be released to organizations. Foodland will match each donation $1 for $1 up to a total of $100,000. If donations exceed $100,000, Foodland's matching gift will be distributed to organizations in proportion to all donations received. Contribution totals will be announced during the week of Sully's birth, October 6.

For more information, call Sheryl Toda, Foodland Super Market, Ltd. 735-7318.

SBH BOARD ACTS ON FUKUDA MEMORIAL

Since the July 8 death of SBH Director and Corporate Secretary, Jean Fukuda (see cover story in August SB News) there has been an outpouring of support for recognizing Fukuda's life work and contributing to a fitting future memorial activity.

The SBH Board in July voted to rename the annual business award, the "Jean Fukuda SBH Civic Leadership Award," and to create the "Jean Fukuda SBH Educational Scholarship Program." The purpose of the program, or foundation to be developed, is to support young people in their educational and entrepreneurial pursuits‹something that was very important to Fukuda.

Funding for the project will be entirely private. Both member and public donations will be accepted. (Checks are being accepted now at SBH made out to, "the Jean Fukuda/SBH Foundation." )

SBH/FTC RETAIL TRADE SEMINAR HELD

Small Business Hawaii and the Federal Trade Commission (FTC) will presented a small business trade seminar August 24. The Retail Merchants of Hawaii (RMH) was a cosponsor of the event held at the Ilikai Hotel.

FTC Western Regional attorneys Dean Graybill (San Francisco) and John Jacobs (Los Angeles) presented a number of timely and informative trade topics especially tailored for small businesses in Hawaii.

Sessions included: Trade Laws Applicable to Small Businesses in Hawaii; FTC Laws Protecting Small Business, and Growth of Internet Commerce.

During lunch, former Hawaii resident and FTC Commissioner, Orson Swindle from Washington, D.C. discussed practical consequences of the new commerce, competition, and consumer protection responsibilities.

NY BOOK EDITORS AT 7TH ANNUAL
HONOLULU WRITERS CONFERENCE

If you've always wanted to be a published author, come to the 7th Honolulu Writers Conference, and make valuable contacts with prominent New York book editors.

The all-day conference will be held on Saturday, October 23, from 8:30 a.m. to 5 p.m. at the Hawaiian Regent Hotel, in the Koa Room.

You'll meet New York book editors from the nation's biggest publishing companies - Harper Collins, Simon and Schuster, Warner Books and St. Martin's Press.

"This is the best gathering of New York book editors in Honolulu in recent years, so here's a great opportunity to make important contacts and learn how to get published," said SBH member Rich Budnick, conference organizer.

"These top editors who work with best-selling national authors will give you expert advice and answer your questions. You will learn how to avoid common author mistakes, so an editor will take an interest in your book proposal," Budnick added.

Attendees should bring a brown bag noon lunch. Refreshments will be provided.

Registration for the all-day conference is just $85‹$75 for SBH members ‹ and $60 for students. Call 395-1161 to register with your credit card over the phone, or get a registration form at any major bookstore or at SBH. Make your check payable to Aloha Press, and mail it to : Honolulu Writers Conference, Box 4183, Honolulu, HI 96812. Validated parking is available.