I propose we create a Small Business Division within the Attorney General's office. This Division will level the playing field between small business and the abusive large corporate conglomerates. This would allow me, as your Attorney General, to be an aggressive advocate for small business, as well as for consumers. The cost of health care and property taxes are two major problems for small business. Both of these problems are the result of bad public policy.

The wasteful health insurance companies dictate care and raise rates 10 to 15% per year, and this is retarding the growth of the economy and the creation of new jobs. As Attorney General, I would continue to audit and investigate the health insurance companies, and, where warranted, would aggressively pursue criminal charges against the CEOs and officers of these companies for fraud and abuse. I'd also propose new laws if the current ones are insufficient to prosecute these abuses.

Regressive state tax cuts have starved local government aid. To make up for these cuts, local governments are forcing up the valuations of properties that are owned or rented by small business. This significantly increases the cost of doing business. As Attorney General, my new Small Business Division can investigate the valuation and property tax levels of very large commercial properties compared to smaller properties occupied by small business, and challenge excessive and unfair valuation patterns.

One of small businesses' chronic problems is under capitalization, yet the vast majority of public resource for business development and jobs goes to big businesses and big developers. My Small Business Division would advocate to give small businesses the opportunity to network and jointly bid on state contracts, and facilitate parceling of large contracts into separate components, so small businesses can bid on parts of a larger contract. Public resources for jobs, employment and economic development should be allocated to those who actually provide the desired results. For example, if money is provided to create jobs and small businesses create 90% of the jobs, they should get 90% of the money allocated for that purpose.

Small Business can only prosper by being innovative, provide a better product or service, fill a need of their customers, and do it at a fair price. They must be smart and efficient. Corporate conglomerates use their money, power and influence to eliminate any competition, either by acquisition or by underselling them until they go out of business. This is not the operation of a "fair and open market". This is predatory market destruction and Anti Trust activity. Large Corporations give huge money to law makers so that laws favorable to their interests will be passed and enforcement of existing laws limiting improper activity are ignored.

Some examples of abuse by large corporations: banks charging excessive fees and interest rates, poor service, changing terms of agreements without the consent or agreement of the small business. Credit card companies unilaterally change the terms and conditions, fees and finance charges are more than excessive, they are usurious. Credit card companies and other companies that do direct deposit and direct withdrawal from business bank accounts, refusing to notify the business that they are taking or sending the money or how much. As Attorney General, I would challenge these illegal practices, and require that account holders be notified of all transactions into and out of their accounts within 48 hours.

Small businesses are the innovators and the creative force in business. They have less bureaucracy and more flexibility in their management. They can respond and adjust quickly to changes in the marketplace. Many young people get their first job in a small neighborhood business. Because small businesses are part of the community, often living there, they take an active and personal interest in what is happening in the community; they're less likely to export jobs overseas or move to another state. Helping small business is not just good for people and communities, it is good economics It builds a stronger and more dependable source of government revenue; it also creates a more innovative and interesting state.

The bottom line is that small business provides 60% of employment in Minnesota and America, with 40% of jobs being created by micro Mom and Pop businesses of 10 or fewer employees. During the Clinton recovery, 85% of new jobs came from small business, during a time the Fortune 500 companies had negative job growth. Clearly small business makes a huge contribution to Minnesota, yet this vital resource receives little if any help from the State. The Attorney General's office should advocate for this creative force so that it can more effectively drive a much needed economic recovery.

Papa John Kolstad