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Mayor Billy Kenoi today vetoed Bill 103, which would allow Puna residents to live in tents on their property while building a home.

In a veto message to the Hawai‘i County Council delivered to the County Clerk today, Mayor Kenoi said the main reason for the veto is that the bill applies only to the District of Puna.

“We are one island and we need to apply laws equally to all residents,” Mayor Kenoi said. “If a bill is good for one district, it should be good for all districts. This bill sets a poor precedent which could lead to a hodgepodge of laws on our island that would be difficult to manage and enforce.”

Mayor Kenoi also said allowing tents only in Puna could unfairly stigmatize the District and depress property values.

“Over the years I have been to Puna many times to speak at schools. In those visits I try to instill in our young people a sense of pride in their community. I ask them to strive for excellence in their lives. I encourage them to work hard to achieve their goals and dreams, and to help make Puna a better place to live for themselves, their families and their community. This bill would counter that positive message by suggesting that a lower standard is OK for Puna. We must set a uniform standard of law for our island that does not suggest that any district is better or worse than any other.”

Kenoi said in the veto message that his office has heard from current Puna homeowners concerned about the county’s ability to enforce the bill and its potential for adverse effects, including declining property values and poor sanitation. “Conversely, I have heard from county residents who do not live in Puna but who desire to live on their property legally while building a home. Yet, they would not have the same opportunity as Puna residents would have under Bill 103.

“Because of the disparate treatment of county residents under this bill, it could be challenged in court and I would not want to spend county resources to defend it.”

No other law in the County that I know of applies only to one district, the Mayor said.

Bill 103 (draft 3) was adopted by an 8-0 vote of the Council on September 2, 2009.

This is the Kenoi administration’s first veto of a Council bill. (A link to the Mayor’s tent bill veto message)

MEDIA RELEASE

On his weekly radio call-in show in Honolulu, Lt. Gov. James “Duke” Aiona urged residents to weigh in on the 60 bills passed during the 2009 legislative session that are being considered for vetoes.

“These bills are open for discussion, so I encourage our residents to get involved and voice their opinions,” Aiona said. “Now is the time to speak up. There is no question that many of these bills will draw strong emotions from all sides, and it is critical that they are viewed in the broader context of what is best for our residents and our state going forward.”

For example, Hawaii legislators, following in the footsteps of North Carolina and Rhode Island, have passed legislation that would require companies to collect sales tax if they have marketing affiliates in the state.

Affiliate marketers run blogs or Web sites and get a sales commission by featuring links to outside e-commerce sites.

As a result of this legislation, Amazon.com and Overstock.com informed their marketing affiliates in Hawaii that they are ending their business with them to avoid collecting sales tax in the state.

The governor has vetoed the measure, which the Administration believes would put Hawaii companies at a competitive disadvantage, especially since they would no longer be able to receive commissions for advertisements on their Web site that link to numerous national and international firms that offer goods and services to Hawaii residents. Following the governor’s veto, Amazon.com and Overstock.com reversed course and reinstated relationships with their Hawaii affiliates.

The deadline for the governor to veto bills is Wednesday, July 15.

To comment on the 60 bills being considered for vetoes, send an e-mail to governor.lingle@hawaii.gov or gov.policy@hawaii.gov; fax (808) 586-0006; or mail to the Office of the Governor, Hawaii State Capitol, Executive Chambers, Honolulu, Hawaii, 96813.

MEDIA RELEASE/www.hawaiisenatemajority.com

Out of 3,523 bills introduced this session, the legislature successfully passed 251. As of today, 171 bills of those bills have been signed into law.

 A list of all Acts passed this year can be found at www.capitol.hawaii.gov/session2009/lists/RptActs.aspx.

Last week, the governor transmitted to the Legislature a list of 65 potential measures she intends to veto. You can access a list of possible vetoes with the governor’s explanations here: http://hawaii.gov/gov/news/files/2009/june/Potential%20Veto%20List%202009.pdf. 

Gov. Linda Lingle has until Wednesday, July 15 to veto a bill. After which, the Legislature can call a special session in order to override a bill that has been vetoed and can do so at or before noon on Wednesday.

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Lingle vetoes bill that are pre-empted by or violate federal laws

MEDIA RELEASE

Gov. Linda Lingle vetoed Monday four bills that are pre-empted by federal law or violate existing federal statutes.  The governor issued her vetoes to ensure that federal officials recognize that the state respects the individual role of states and the federal government in setting legal policy for our citizens.

The four vetoes cover areas as diverse as the labeling of meat and fish products, health care benefits, permanency hearings for foster children, and marijuana.  Specifically the four bills are:

* SB 912 SD2 HD2 CD1 relating to permanency hearings.  This bill does not comply with federal Title IV-E hearings requirements for foster placement hearings as set forth in Section 475 of the Social Security Act.  Notification of non-compliance from the U.S. Department of Health and Human Services was not received until the 2009 Legislative session was almost finished.  The relevant House and Senate chairs have agreed to work on a new bill in 2010 to correct the defects in this measure.

* HB 1611 HD2 SD2 CD1 relating to labeling of meat and fish products.  This bill violates the Supremacy Clause of the United States Constitution and is pre-empted by the Federal Meat Inspection Act of 1907 as amended.  This bill also removes criminal sanctions necessary for the proper enforcement of the Hawaii Food, Drug, and Cosmetic Act.

HB 690 HD2 SD2 CD1 relating to insurance.  Significant portions of this bill are pre-empted by the federal Employee Retirement Income Security Act (ERISA) governing the operation of employee welfare benefit plans.

* SB 1058 SD2 HD2 CD1 relating to controlled substances.  This bill attempts to circumvent provisions of federal controlled substances laws as enforced by the United States Drug Enforcement Administration.  Portions of this bill may also violate Section 14 of Article II of the State Constitution regarding the scope of subjects each law enacted by the Legislature may encompass.

“I am concerned that the Legislature, in their efforts to address local concerns, may not have fully taken into account existing federal laws or requirements,” Lingle said. “The State of Hawaii must abide by federal statutes when they prevail or pre-empt state action, as is the case with these four measures.”

Baron Sekiya/Hawaii247.org

Internet retail giant Amazon.com closed the associate accounts of Hawaii residents as of Tuesday, June 30, in reaction to House Bill 1405, which would collect taxes on all sales to Hawaii-based customers should the associates program continue. House Bill 1405 takes effect Wednesday, July 1.

Amazon.com has urged associates affiliated with the company, or its sister site Endless.com, to voice opposition to the legislation with Gov. Linda Lingle who has until July 15 to veto the bill.

Typically, residents with Amazon associates accounts who used banner ads on their Web sites, e-mail notices or other means of directing sales traffic to Amazon.com or Endless.com earned up to 15 percent of the sale. Amazon.com used an associate’s account identification to mark the referrals to its site and to track sales.

Amazon.com terminated associates programs June 26 in North Carolina and June 29 in Rhode Island due to similar legislation. California also is considering instituting a similar tax on out-of-state businesses.

The legislation goes beyond Amazon.com as it covers any business in another state that has 20 or more affiliates in Hawaii or if the business generates more than $100,000 through any referrals from Hawaii residents or if a single resident generates at least $10,000 in sales during the calendar year.

Without House Bill 1405 any U.S. businesses outside Hawaii without a physical presence in the state did not have to pay the general excise tax on sales. Currently, Apple has retail stores in Hawaii and charges tax to Hawaii customers who purchase goods, music and software online.

Below is the e-mail sent to Amazon.com associates:

We are writing from the Amazon Associates Program to notify you that your Associates account has been closed as of June 30, 2009. This is a direct result of the unconstitutional tax collection scheme passed by the Hawaii State Legislature with an effective date of July 1. As a result, we will no longer pay any referral fees for customers referred to Amazon.com or Endless.com after June 30.We were forced to take this unfortunate action in anticipation of actual enactment because of the uncertainty and timing of a veto, and the possibility that a veto could be overridden. The governor has until July 15 to veto the bill but, as indicated, the bill has an effective date of July 1.

Please be assured that all qualifying referral fees earned prior to June 30, 2009 will be processed and paid in full in accordance with our regular referral fee schedule. Based on your account closure date of June 30, 2009, any final payments will be paid by September 1, 2009.

In the event that Hawaii’s governor vetoes this tax collection scheme, and that veto is not overridden, or in the event the law eventually is repealed, we would certainly be happy to re-open our Associates program to Hawaii residents.

The Hawaii General Assembly’s website is http://www.capitol.hawaii.gov/, the governor’s website is http://hawaii.gov/gov and additional information may be obtained from the Performance Marketing Alliance athttp://www.performancemarketingalliance.com/.

We have enjoyed working with you and other Hawaii-based participants in the Amazon Associates Program, and wish you all the best in your future.
Best Regards,

The Amazon Associates Team

Special to Hawaii247.org by Senate Majority Caucus

Out of 3,523 bills introduced this session, 251 bills successfully passed the Legislature. 

Those bills that passed face a final judgment before they are signed into law: an approval or a veto by the governor.  

If the governor intends to veto a bill, the governor is required to notify the Legislature of her intent to veto a bill by Tuesday, June 30 or the 35th day after adjournment. 

The vetoed measures must then be transmitted to the Legislature Wednesday, July 15, the 45th day after adjournment. 

Any bill that is signed by the governor or without a signature thereafter becomes law.

The legislature must call a special session to override a bill that has been vetoed and can do so at or before noon on the 45th day.

MEDIA RELEASE

Gov. Linda Lingle, joined Thursday by hundreds of individual taxpayers, businesses and visitor industry leaders and employees, vetoed four bills that would raise taxes on residents, visitors and businesses, cause further job loss, and delay our economic recovery.

Combined, the four bills would extract a total of $94.3 million in 2010 and almost $126.2 million each year thereafter out of the economy. 

Here are her comments on each bill:

“My Administration presented the Legislature with responsible, prudent and fair alternatives to balance the budget in order to avoid tax increases which would further burden Hawaii’s residents and businesses, discourage visitors from traveling to Hawaii, jeopardize our economic recovery and result in more job loss,” Lingle said. “The Democrat majority has ignored these alternative solutions and instead turned to tax increases that will take more money out of the pockets of our residents and visitors and diminish business investments.”

The bills vetoed by Lingle:

SB1111 SD1 HD1 CD1 – Increases the transient accommodation tax (TAT) by 28 percent over the next two years, adding to the cost visitors and residents pay when staying at hotels, condominiums and bed & breakfast lodgings.

The tax increase would raise the cost of visiting Hawaii and discourage both leisure and business travelers from coming to the islands. Currently, visitors to Hawaii pay double the lodging taxes ($25.79) compared to the national average ($12.69). 

The tax increase would further destabilize Hawaii’s already weakened visitor industry. Hawaii’s hotel occupancy rate is at its lowest level in 22 years, visitor arrivals declined by 14 percent in the first quarter of the year and visitor expenditures fell 18 percent during the same period.  

Between March 2008 and March 2009, the visitor industry lost 6,200 jobs. 

The 28 percent tax increase would exacerbate the declines in the visitor sector and further hurt those employed directly and indirectly by Hawaii’s main industry. 

According to the American Hotel & Lodging Association, every one percentage point increase in Hawaii’s TAT would lead to the loss of 3,200 jobs. The 2 percentage point increase approved by the Legislature in SB1111 would lead to the projected loss of 6,400 jobs.

“Hawaii’s economy cannot recover from the current economic recession without a recovery in tourism,” Lingle said in her veto message to the Legislature. “This bill is objectionable because an increase in the Transient Accommodations Tax will prolong our state’s ability to recover its economic vitality.”

HB1741 HD1 SD1 CD1 – Increases by up to 257 percent the conveyance tax home buyers, businesses, real estate developers, charities, non-profit organizations and other purchasers of all residential, commercial, industrial and agricultural real estate must pay for transactions over $2 million. 

“This bill is objectionable because it would discourage investments, adversely impact land transactions to promote business and housing development and further slow our economic recovery by extracting money out of the pockets of families and businesses,” Lingle said in her veto message.

The conveyance tax increase would also adversely impact affordable housing projects and non-profit organizations, including churches, schools, and youth organizations.  

For example, an affordable housing project like Kukui Gardens on Oahu, which sold for $72 million, would pay $504,000 more in conveyance taxes if this bill becomes law.

HB1747 HD1 SD1 CD1 – Increases the personal income tax rate on almost 37,000 Hawaii income tax filers, sole proprietors and small businesses (S-corporations and partnerships) that file their business income as personal income. There are over 27,000 S-corporations, partnerships and sole proprietorships in Hawaii, which includes approximately 6,000 sole proprietors.

“This bill is objectionable because it increases the tax burden on Hawaii’s families and small businesses by increasing the marginal income tax rate by as much as 33.3 percent,” Lingle said in her veto message. “Hawaii currently has the eighth highest top personal income tax rate in the United States. By increasing the top marginal tax rate from 8.25 to 11 percent, this bill will make Hawaii the state with the highest personal income tax rate in the nation.”

HB895 HD2 SD2 CD1 – Increases the tax rate on tobacco products other than cigarettes, including smokeless tobacco, snuff, cigars and pipe tobacco. 

The governor vetoed this bill because it contains major technical flaws that defeat the purpose of the legislation to lower the usage of tobacco products and make it virtually impossible to implement. 

HB895 suspends the current 40 percent tax on all tobacco products other than cigarettes, which would create a tax holiday for many tobacco products from the effective date of the law until Sept. 29, 2009. The suspension of the 40 percent tax would run counter to the stated purpose of the bill.

Further, while the bill sought to tax “little cigars” at a rate comparable to the cigarette tax rate, the language in the measure would end up lowering the cigarette tax rates.  

Additionally, the bill would require the state to tax larger cigars in a manner that is inconsistent with federal requirements and may be impossible to enforce.