Monday Report
Message From Chamber President Jim Tollefson
Active, visible and vocal
With the 2012 Legislative Session underway, I am pleased to say that the Chamber, its members and the Alliance, are active, vocal and visible. Through numerous activities held throughout January, we have been front and center, insuring that the business community has a strong voice at the Capitol.
Prior to the session opening, on the 10th, we had a full room for the “Pre-Game Show” Legislative Process 101 Class. An important part of our game plan each year is helping Chamber members understand the legislative process, why it is critical to get involved and what tools and resources are available for them to take action and communicate with legislators. I am pleased that every year I see new faces at this event looking to provide support for our advocacy efforts.
Then on January 19th, one day after the session, we held our “Meet & Greet with Legislators” Pau Hana Reception at J.J. Dolans. With more than 150 participants, including many of our legislators, it was a strong representation that both business leaders and Legislators recognize communication is key to addressing Hawaii’s economic challenges.
During the evening , comments made by Senate Vice President, Senator Donna Mercado Kim, reinforced the importance of the business community providing input to legislators to help them understand business needs. Additionally, Speaker of the House Calvin Say, reiterated the importance of collaborating and looking for solutions together.
I want to thank Senator Kim, Speaker Say and all our legislators for partcipating.
Finally, on the 20th, we held a “Walk Around” at the State Capitol to share the Chamber’s 2012 Legislative Agenda. More than 80 Chamber members and business leaders, including the presidents from the Maui, Kauai, Kona-Kohala, Hawaii Island and Molokai chambers, along with representatives from organizations that belong to the Chamber Alliance, including the Hawaii Crop Improvement Association, Hawaii Automobile Dealers Association, Hawaii Restaurant Association, Associated Builders and Contractors-Hawaii Chapter, NFIB, SHRM Hawaii, Hawaii Employers Council and Hawaii Food Industry Association gathered to walk the halls of the Capitol and visit the offices of each Legislator.
I want to thank the legislators and their staff for meeting and allowing us to express the business community’s priorities.
Additionally, we have shown that business leaders are committed to being pro-active this session and recognize that working together with legislators is essential in determining the future of Hawaii’s business community.
I would like to thank all who participated in this month’s activities. We have started strong. However, the session has just begun and we must keep this momentum going. I urge every Chamber member and business leader to join us in our efforts. To find out more visit www.cocaction.com
Chamber’s 2012 Legislative Agenda
Below is the Chamber’s 2012 Legislative Priorities. To download a copy of the 2012 Legislative Agenda, Click here.
UNEMPLOYMENT INSURANCE TAX
The Chamber SUPPORTS legislation that will mitigate the tax increase of an additional average of $550 per employee due to take place under the current schedule. The Chamber strongly urges the Legislature to keep the tax schedule at “F” for two years, which will help businesses recover during this slow growth period and provide stability.
The Chamber SUPPORTS legislation that will mitigate the tax increase of an additional average of $550 per employee due to take place under the current schedule. The Chamber strongly urges the Legislature to keep the tax schedule at “F” for two years, which will help businesses recover during this slow growth period and provide stability.
• Under current law, the schedule jumps to H. Taxes will increase to an average of $1,470 per employee, from $920. Under the proposed changes, the taxes would rise to $1,040.
• Based on current projections, the UI trust fund should remain solvent and continue to grow.
• By slowing the fund replenishment, local businesses can use the funds to hire and grow their businesses.
• Mitigation of an unemployment insurance tax increase will keep more money in the economy, which will then be spent and generate increased tax revenues for the State.
WORKERS’ COMPENSATION
Workers’ compensation costs must continue to stay managed to ensure that Hawaii remains economically competitive. The ultimate goal is preserving a balanced system that provides fair benefits to injured workers at a managed cost to employers, while minimizing friction in the system.
For these reasons, the Chamber OPPOSES HB 466 HD3:
• The independent medical examination (IME) process is an essential part of the employers' discovery process to ensure proper treatment and costs. The right for an employer to select the physician of its choice to obtain a second opinion to determine whether or not an injury is work-related, or whether medical treatment is necessary, is reasonable and necessary. Furthermore, the employer and insurance carrier pay for 100% of the cost of the IME.
Workers’ compensation costs must continue to stay managed to ensure that Hawaii remains economically competitive. The ultimate goal is preserving a balanced system that provides fair benefits to injured workers at a managed cost to employers, while minimizing friction in the system.
For these reasons, the Chamber OPPOSES HB 466 HD3:
• The independent medical examination (IME) process is an essential part of the employers' discovery process to ensure proper treatment and costs. The right for an employer to select the physician of its choice to obtain a second opinion to determine whether or not an injury is work-related, or whether medical treatment is necessary, is reasonable and necessary. Furthermore, the employer and insurance carrier pay for 100% of the cost of the IME.
• HB 466 takes away employers’ rights to select a medical expert with a certain background or specialty they deem appropriate to render expert medical opinion on a particular claim.
• HB 466 limits employers to one (1) IME regardless of whether further IME are needed. Also, it requires employers to conduct a separate examination permanent impairment rating regardless of whether the medical expert determines it is medically appropriate and more cost effective to perform a combined evaluation and rating.
• HB 466 will effectively shrink the pool of qualified physicians willing to perform IME and permanent impairment ratings where there is already a shortage in the state.
Essentially, the employer loses the ability to meaningfully participate in the selection of an IME physician. Furthermore, the Chamber will oppose workers’ compensation (WC) legislation which strips employers of the few rights they have to represent themselves in WC claims, increases the cost of WC claims and premiums, as well as changes that may constitute a violation of due process rights.
GENERAL EXCISE TAX
The Chamber OPPOSES a GET increase. Taxes are an important factor in the cost of doing business. While a competitive and fair tax system will stimulate economic growth and job creation, disproportionate tax burdens will cost the state jobs and business investment. An equitable tax system is key to orderly economic growth in Hawaii.
Therefore, it is critical to support tax policies that encourage the attraction and retention of businesses, stimulate expansion of the private sector and provide increased employment opportunities. Equally important is to promote tax efficiencies in the enforcement of existing tax laws.
OTHER PRIORITIES
In addition to the top priority issues, the Chamber will take an active position on issues that promote and/or impact economic recovery and growth, such as, but not limited to, legislation that relates to education, employment, transportation, tax, environment, technology, and the regulatory process.
Join a Chamber Policy Committee!
Chamber policy committees are comprised of volunteers from the Chamber membership throughout the State. Members are eligible to participate in one or all of the Chamber’s five committee pillars to support a positive business climate and economy. Click here for more information!
