HOUSE OF REPRESENTATIVES

H.R. NO.

80

TWENTY-FIRST LEGISLATURE, 2002

H.D. 1

STATE OF HAWAII

  
   

HOUSE RESOLUTION

 

REQUESTING THE LEGislative reference bureau TO STUDY THE movement OF CAPITAL OUT OF THE STATE.

 

 

WHEREAS, the events of September 11, 2001, have exacerbated Hawaii's economic downturn; and

WHEREAS, even before those tragic events, however, the condition of Hawaii's economy had been fragile at best; and

WHEREAS, one of the reasons for Hawaii's continuing economic stagnation is the large amount of money spent by Hawaii's consumers on products and services that are owned or operated by mainland companies; and

WHEREAS, for example, popular "big box" retailers, such as Wal-Mart, Costco, and others, which are, for the most part, not locally owned, receive money from Hawaii residents that could better be spent on local Hawaii retailers, which would keep more of that money in the State; and

WHEREAS, other mainland companies that offer services or projects in such areas as insurance, gasoline and other petroleum products, hotels, and even tour packages to Las Vegas, all contribute to the flight of capital out of the State; and

WHEREAS, while these companies make significant contributions to the local economy in the form of taxes and jobs, and although some of the money spent for these products and services stays in Hawaii, a large portion of these moneys is returned to the parent company on the mainland; and

WHEREAS, there is a need to analyze the expenditure of moneys in the State that support companies and industries that are based outside of the State, in order to ascertain their impact on the local economy and to find ways to decrease their influence, thereby increasing Hawaii's economic stability; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, that the Legislative Reference Bureau (LRB) is requested to study the movement of capital out of the State; and

BE IT FURTHER RESOLVED that LRB is requested to include in its study a review of companies that are not based in Hawaii but provide services and products to Hawaii residents, including the insurance industry, gasoline and petroleum companies, "big box" retailers, and the tourism industry, including hotel chains; and

BE IT FURTHER RESOLVED that LRB is requested to report its findings and recommendations, including any strategies or techniques that the State may use to decrease the outflow of capital, and including any proposed implementing legislation, to the Legislature no later than 20 days before the convening of the Regular Session of 2003; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor and the Acting Director of the LRB.

Report Title:

LRB to study movment of capital out of the State