Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Economic Development and Labor, to which was referred S.C.R. No. 6 entitled:

beg leave to report as follows:

The purpose of this measure is to request the Legislative Reference Bureau (LRB) to conduct a study on the effects of big box retailers on local small and medium retail businesses.

Testimony supporting this measure was received from the Department of Business, Economic Development, and Tourism, Hawaii Food Industry Association, and four individuals. Opposing testimony was received from Wal-Mart Stores, Inc. LRB submitted comments on this measure.

Your Committees find that Hawaii's economic landscape has changed with the arrival of "big box" retailers. Their financial structure and business practices allow them to vigorously compete against Hawaii's local retailers. Anecdotal reports suggest that local businesses have been forced to close due to an inability to compete, thus resulting in an overall negative impact on the economy. Your Committees believe that this issue requires further study in order to provide the Legislature reliable information regarding the full economic impact on the State from big box retailers.

Your Committees have amended this measure by replacing LRB with the University of Hawaii at Manoa Department of Urban and Regional Planning as the agency to conduct the study.

As affirmed by the records of votes of the members of your Committees on Economic Development and Labor that are attached to this report, your Committees concur with the intent and purpose of S.C.R. No. 6, as amended herein, and recommend its adoption in the form attached hereto as S.C.R. No. 6, S.D. 1.