Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Economic Development and Technology, to which was referred S.C.R. No. 139 entitled:

begs leave to report as follows:

The purpose of this measure is to request the Legislative Reference Bureau to conduct a study on the effects of big box retailers on local small and medium retail businesses, including an inventory of present big box retailers and competitor small and medium locally-owned retail businesses, bankruptcy data, and comparative economic impacts of big box retailers on Hawaii's economy.

Testimony in support of this measure was received from the Legislative Information Services of Hawaii, and Hawaii Government Employees Association, and comments from the Department of Business, Economic Development, and Tourism. The Legislative Reference Bureau submitted comments.

Your Committee finds that under these harsh economic times, many small and medium-sized businesses in Hawaii have suffered. It is time to study the impact that big box retailers have on our local businesses due to the advantages that are gained from their ability to buy in bulk at much lower costs and thus pass their savings on to the consumers of Hawaii.

Your Committee has amended this measure by requesting the retail industry of Hawaii, as a whole and in cooperation with various business organizations such as the Retail Merchants of Hawaii, Small Business Hawaii, Hawaii Business Roundtable, Hawaii Business League, National Federation of Independent Businesses, and others to develop and report the direction of the retail industry of Hawaii, paying particular attention to the effects the recent introduction of big box retailers in Hawaii have had on our economy and on competing medium and small local businesses.

Your Committee finds that it should be the responsibility of the retail industry of Hawaii to report its objectives to the State for the State to decide how these objectives may benefit or conflict with the well being of various sized retail businesses in Hawaii.

As affirmed by the record of votes of the members of your Committee on Economic Development and Technology that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 139, as amended herein, and recommends that it be referred to the Committee on Ways and Means, in the form attached hereto as S.C.R. No. 139, S.D. 1.