e-Mail this page to a Friend!

Economic Impact Review - California [proposed]

In August 2006, the California legislature passed the following legislation, but it was subsequently vetoed by Governor Arnold Schwarzenegger.

The law would have required cities to commission an economic impact report prior to approving any store larger than 100,000 square feet. The report would have assessed the impact of the store on existing businesses, jobs, wages, retail vacancy rates, the cost of public services, and the number of vehicle miles consumers in the region travel for shopping. The legislation required the developer to reimburse the city for the cost of the analysis.

The law also stipulated that the city conduct a public hearing after the report has been prepared.

The aim of the measure was to give officials and citizens crucial information about the economic costs of superstores, and to provide cities with more authority to reject these developments. The bill's preamble notes that the proliferation of superstores is causing "local grocers, who yield a greater community return on investment, [to be] driven out of business; less community access to viable superstore alternatives; lower wages and benefits paid to grocery workers by superstore retailers; and a host of complex land use, traffic, and fiscal impacts."

• Full Text of SB 1523 - passed the California Legislature, August 30, 2006, but vetoed by Gov. Schwarzenegger.