Category Archives: Business

The State Budget, Shield Law Amendment Bill, & More

50th Anniversary of Hilo Hattie's

April 5, 2013 : Floor Action – Session Day #45: The State Senate congratulated Hilo Hattie, the Hawaiian apparel retailer for achieving their milestone 50th anniversary. Recognized on the Senate floor were Felix Calvo, VP of Sales & Marketing, Terri Funakoshi, Executive VP of Merchandising and Mark Storfer, Executive VP and COO. Senator Sam Slom, Senate President Donna Mercado Kim and Senator Wil Espero are also pictured.

The Senate voted to confirm Danna Holck and Kali Fermantez to the Oahu Island Burial Council (GM 587, GM 588). Four resolutions were also adopted with Senator Slom voting against SCR 166 “Requesting the convening of a task force to study the sociaal, economic and religious impacts of enacting marriage equality in Hawaii.” Senators Baker and Thielen also voted “No”. Senators Ihara, Kidani and Kouchi voted “with reservations”.

Committee Report: The Senate Ways & Means committee voted to “hold” HB 903 which would have placed a tax on owners of “individual wastewater systems” (cesspools). The vote was 12 to 1 in favor of “holding” the bill. Senator Slom voted with the majority.

Senator Sam Slom and Senate Minority Budget Director Paul Harleman were on the Rick Hamada radio program early that morning to discuss the State Budget and the Senate Minority Alternative Budget.

Senator Slom on the State Budget

April 4, 2013: Floor Action – Session Day #44: A number of bills were up for third reading during the day’s floor session. Senator Slom voted “with reservations” on the state’s $23 billion State Budget bill (HB 200 SD1). During the long floor discussion, Senator Slom also made reference to the Senate Minority Alternative Budget proposal which reduces general fund spending by $300 million.

Senator Slom voted against HB 865 SD1 which will start a pilot program to lease public school lands for “public purposes”. The measure also creates a new “school facilities special fund”. Senator Slom votes against all and every new special fund.  The bill was passed 22 to 1.

Slom also voted “no” on HB 919 (civil service exemptions – controlled substances), HB 527 (enlisted personnel, uniform maintenance allowance) and HB 1314 on beer labeling. All 3 bills were passed with Senator Slom being the only voting against them.

Senate Public Safety Briefing

Later that afternoon the Senate Public Safety and Military Affairs (PSM) committee conducted an informational briefing focusing on recent prison escapes and policies implemented by the Dept. of Public Safety to prevent future prisoner escapes. Public Safety Director Ted Sakai was subjected to numerous questions put forth by the senate committee.

John Rogers Resolution Passes
The “General” John Rogers memorial request resolution (SCR 137 / SR 97) passed out of the Senate PSM and TEC committees on April 4.

April 3, 2013: Floor Action – Session Day #43: The Senate Minority Caucus under the leadership of Senator Sam Slom unveiled the Senate Minority Alternative Biennium Budget for 2014 – 2015. See separate item on this topic.

Twelve bills unanimously passed third reading on Senate floor votes during session that day. Senator Slom voted with the majority on every measure.

What's Up With Hawaii's Shield Law Bill?

The Senate Judiciary and Labor committee scuttled HB 622 and made it a very bad bill after it was amended in committee late last month. The current law which sunsets by the end of June shields reporters and other individuals from having to disclose their news sources and materials to the courts. The JDL committee has narrowed the scope of the law’s coverage with the latest draft (see separate item). Senator Slom voted “with reservations” on the SD1 version of HB 622 with the hope that the bill can be amended in conference committee.

From Senator Slom’s NHB #2 Report – April 4, 2013.

Senate Minority Budget Press Conference
Senator Slom and Budget Director Paul Harleman talk about the Senate Minority Alternative Biennium Budget for 2014 – 2015.

The Senate Minority Alternative Budget: 2014 – 2015

Compiled from Senator Slom’s Kuliouou / Kalani Iki Neighborhood Board #2 Report, April 4, 2013.

The Hawaii Senate Minority Alternative Biennium Budget for the fiscal years 2014-2015 reflects a decrease of $1.6 billion in total funding in comparison with the proposed Executive Budget and $1 billion in comparison with the proposed budget by the House of Representatives. The budget bill (HB 200 SD1) passed third reading in the Senate on April 4,  24 – 0. Senator Slom voted “with reservations”.

See the video of the Senate floor session on the budget bill at this link: Senate Floor Session – April 4 - Approximately 90 minutes

The Senate Minority’s budget proposal provides a specific plan that will make Hawaii’s government less expensive, and more effective, for our state’s taxpayers and small businesses.

The budget accomplishes the following 4 objectives:

Does not rely on any current or future tax and fee increases to balance the budget.

Reduces the size and costs of government through a combination of budget reductions, program consolidations and policy reforms.

Provides a sustainable path to solve our problem with unfunded retirement benefit liabilities and to recapitalize our budget reserves.

Ieaves the state treasury with a projected general fund surplus of $741 million in FY 15 which could be used to lower the tax burden for our struggling taxpayers and small businesses.

Read more on our Senate Minority Alternative Budget Page.

Senate Minority Budget Press Conference


Journalism Shield Law Amendment Turns Sour With Latest Draft

By State Senator Sam Slom

The latest draft of the Journalism Shield Law bill (HB 622 HD1 SD1) which was initially introduced to simply repeal the sunset date of the current law will become worst for journalists and just about anyone who publishes anything almost anywhere, including traditional paper media, broadcast and online.

New definitions for “journalist or newscaster”, “magazine” puts tighter limits on who and what qualifies as a journalist and a publication. The new law leaves out media that is published less than 4 times a year and does not cover media with unpaid circulation.

The essence of the current law protects source material used in news gathering by all news media including traditional and online news services and individuals.

The original shield law (Act 210) was enacted in 2008 and renewed with an extended sunset date to June 29 of 2013 in 2011 (Act 113). In 2011 the sunset date was extended with no problem. Not so this year.

Jeff Portnoy, a well known media attorney told a gathering of media professionals at my office that he would urge the Governor to veto the SD1 version of the bill if it passes in the current form.

While I voted “aye” with reservations on the latest draft, it is hoped that the bill can be amended in conference committee so that the original draft can be restored which is to simply delete the sunset date. The SD1 version of the bill is not posted online so far. Call my office if you would like a copy of HB 622 SD1.

Meeting with the Media
Senator Slom meeting with media members after the JDL decision making hearing on April 3.

GMO Food Labeling – HB 174 Deferred

GMO Food Labeling Hearing

By State Senator Sam Slom

House Bill 174 – GMO food labeling – Imposing labeling requirements and import restrictions on imported genetically engineered produce was heard on Thursday, March 21.The bill authorizes labeling of non-genetically engineered food. HB 174 was not going to be heard until Senate leadership changed their minds at the last minute and assigned it to the Agriculture, Consumer Protection and Health Committees on March 19, two days before the double referral deadline. The hearing was held 2 days later in the morning for 2 hours starting at 10:00 a.m.

Hundreds of people lined up to testify at the hearing, only to see the bill deferred by the end of the day. A Senate Concurrent Resolution will commission further study on the issue of food labeling.

I did not support this version of the GMO food labeling bill after the State Attorney General issued an opinion that “GMO labels have been pre-empted by the federal government,” it violates both the First Amendment (commercial free speech), and the Commerce Clause of the United States Constitution.

The Hearing on GMO Food Labeling

Senator Slom would have had 3 “no” votes on HB 174 had the bill come to a vote. The reason? Senator Slom is a member of all Senate committees and thus eligible to vote in this case in Agriculture, Consumer Protection and the Health Committees. He is shown at the HB 174 hearing with majority Senators Baker, Nishihara and English.


March 27 – Floor Action: Session Day #39

The State Senate passed 7 House Bills on a number of subjects. Senator Slom voted in favor of all of them except for HB 848 HD2 SD1, which is an “Obamacare” bill on health insurance. The Hawaii Primary Care Association testified that in the first draft of the bill, “small employers were listed as those having 100 employees or less. Under the most recent House Draft, that number was lowered to 50, a figure that does not coincide with federal requirements under the Affordable Care Act…”

The 50 employee figure is still retained in the Senate draft. The bill will go to conference committee.


March 25Floor Action, Session Day #38

Senate Honors 442nd Regimental Combat Team

Ten World War II soldiers from the 442nd Regimental Combat Team were recognized by the Hawaii State Senate on March 25 during the regular floor session held in the Senate Chamber. The group of combat veterans accepted a framed certificate on the commemoration of the regiment’s 70th Anniversary. Photo by the Hawaii Senate Majority office.

The Senate also confirmed 2 individuals:

GM 667Curtis Saiki to the Board of Taxation Review, 1st District

GM 702Jose Diogo  to the Board of Taxation Review, 4th District

The Senate also passed HB 776 HD2 SD1 (Government Tort Liability) on a floor amendment motion that was approved at the previous session (Day #37). The vote was unanimous at 22 – 0 with Senator Slom voting with the majority.

Majority Oppose Turning the Great Lawn Into a Shopping Center

Community Meeting for The Great Lawn

By State Senator Sam Slom
As published in the Hawaii Kai Neighborhood Board Report #1, March 25, 2013.

The people in Hawaii Kai, myself included, loved Foodland and were disappointed when the store left the Koko Marina Shopping Center in 2011 after nearly 50 years.

We also like open, green spaces, especially the famous community landmark, the “Great Lawn,” situated along Kalanianaole Highway. The land owned by Kamehameha Schools is zoned preservation. Most of the people in the community want to keep the Great Lawn as is despite conflicting surveys taken by KSBE (72% in favor) and State Rep. Gene Ward (80% opposed).

Kamehameha Schools recently announced its intention to develop the property and put in a strip mall anchored by a new Foodland Supermarket. Many community groups and individuals came out to a Town Hall Meeting sponsored by State Rep. Gene Ward to oppose the plan. The Great Lawn is more important than establishing another mall and restoring Foodland. I have said so for more than a year.

More than 400 people were in attendance at last Thursday’s town hall meeting and a great majority voiced their opposition after Kamehameha Schools and Foodland both presented their proposal. I support development in commercial zones, but not at the expense of losing the Great Lawn when other options exist for Foodland’s return.

Video from the meeting is posted below:

HawaiiReporter.com: Residents Express Outrage at Town Hall Meeting