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THE SENATE |
S.C.R. NO. |
6 |
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TWENTY-SECOND LEGISLATURE, 2003 |
S.D. 1 |
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STATE OF HAWAII |
H.D. 1 |
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RESOLUTION
REQUESTING A STUDY ON THE EFFECTS OF BIG BOX RETAILERS ON LOCAL SMALL AND MEDIUM RETAIL BUSINESSES.
WHEREAS, Oahu has experienced the establishment of several "big box" retailers in the past several years; and
WHEREAS, big box retailers such as Home Depot, Wal-Mart, Kmart, Costco, Sam's Club, Ross, and Old Navy, typically sell in volume at discounted prices from warehouse type operations; and
WHEREAS, big box retailers do business in groceries, office supplies, sporting goods, home furnishings, toys, books and music, computers, electronics, and hardware, on Oahu and on some Neighbor Islands; and
WHEREAS, the economy of the State and the cost of living for Hawaii residents are impacted considerably by big box retailers; and
WHEREAS, according to anecdotal reports, big box retailers have had an adverse economic impact on small and medium sized businesses that are locally owned, causing many of them to lose revenue and eventually close; and
WHEREAS, anecdotal reports also indicate that big box retailers have numerous positive impacts on the economy and benefits for the consumer that are worth studying and considering; and
WHEREAS, while these reports on the adverse economic impact big box retailers have on local businesses may be anecdotal, recent statistics on business closures and bankruptcy filings in Hawaii have grown significantly in the years since the influx of big box retailers; and
WHEREAS, the Legislature needs solid and reliable information regarding the full economic impact on the State from big box retailers, particularly the effects on small and medium sized businesses that are locally owned; now, therefore,
BE IT RESOLVED by the Senate of the Twenty-Second Legislature of the State of Hawaii, Regular Session of 2003, the House of Representatives concurring, that the Legislative Reference Bureau is requested to conduct a study on the effects of big box retailers on local small and medium retail businesses in Hawaii, and the positive impacts of big box retailers upon the local community, including benefits to consumers and economic revitalization, based on information, data, and analysis obtained or developed by appropriate executive agencies; and
BE IT FURTHER RESOLVED that the following agencies are requested to provide necessary information and data to the Legislative Reference Bureau by August 31, 2003, as follows:
(1) The Department of Labor and Industrial Relations is requested to determine the number of employees employed by each of the various big box retailers in each location;
(2) The Department of Taxation is requested to determine the aggregate amounts of excise, income withholding, and property tax revenues generated by big box retailers in Hawaii;
(3) The Department of Business, Economic Development, and Tourism; the Department of Taxation; and the Department of Labor and Industrial Relations are requested to determine the aggregate number and types of small and medium locally owned retail businesses that are in competition with the big box retailers in any type of merchandise, and the estimated number of employees, and amounts of excise, income withholding, and property tax revenues generated by these retail businesses;
(4) The Department of Business, Economic Development, and Tourism is requested to:
(A) Determine the number, types, and locations of big box retailers in Hawaii;
(B) Determine the estimated number and types of small and medium locally owned retail businesses that have closed due to adverse competition from big box retailers;
(C) Determine whether, and if so the extent to which, big box retailers are able to negotiate preferential shipping rates compared to their smaller competitors for goods shipped to Hawaii; and
(D) Determine the comparative economic impact of big box retailers on Hawaii's economy by:
(i) Obtaining requisite data from big box retailers in Hawaii;
(ii) Developing such economic models as may be necessary; and
(iii) Analyzing and organizing the results produced from applying the economic models to the data obtained; and
(E) Obtain and develop data concerning any positive impacts of big box retailers upon the local community, including benefits to consumers and economic revitalization;
and
BE IT FURTHER RESOLVED that the Senate Standing Committee on Economic Development and the House of Representatives Standing Committee on Economic Development and Business Concerns hold public hearings, beginning in June 2003, to obtain additional information to assist the completion of this study, and to monitor the progress of the designated agencies specified in the previous resolved paragraphs in obtaining and developing relevant information and data to be provided to the Legislative Reference Bureau; and
BE IT FURTHER RESOLVED that the Department of Business, Economic Development, and Tourism; Department of Labor and Industrial Relations; Department of Taxation; University of Hawaii Department of Urban and Regional Planning; and the directors of finance of the various counties are requested to assist and cooperate with the Legislative Reference Bureau in any other aspects of this study, subject to confidentiality requirements; and
BE IT FURTHER RESOLVED that the Legislative Reference Bureau is requested to report its findings and recommendations to the Legislature not later than twenty days prior to the convening of the Regular Session of 2004; and
BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Business, Economic Development, and Tourism; Director of Labor and Industrial Relations; Director of Taxation; Director of Budget and Fiscal Services of the City and County of Honolulu; Director of Finance of the County of Hawaii; Director of Finance of the County of Kauai; the Director of Finance of the County of Maui; the Chairperson of the Board of Regents of the University of Hawaii; the Chair of the University of Hawaii at Manoa Department of Urban and Regional Planning; and the Director of the Legislative Reference Bureau.
Report Title:
Big Box Retailers; Study