Report Title:

Gambling Study; Economic and Social Impacts

 

Description:

Appropriates $400,000 to auditor to contract with a Hawaii non-governmental public policy research organization to conduct study on economic and social impacts of gambling.

THE SENATE

S.B. NO.

2922

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to a study on gambling impacts.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. In 1999, the National Gambling Impact Study Commission established by the United States Congress issued its final report, which stated that "Since proposals for the introduction of new gambling facilities are usually accompanied by assurances of economic benefit to the community or region, it is reasonable to expect that there should be a careful and well-documented study of all aspects of gambling, the economic and social benefits and economic and social costs, before new facilities are approved." Among the Commission's recommendations was "that states require that thorough impact studies be conducted before new gambling facilities are permitted."

The legislature finds that the Commission's recommendation of conducting an economic and social impact study is a necessary and essential part of its policy deliberations on whether gambling should be permitted in Hawaii. The purpose of this Act is to provide funds to the auditor to contract with an independent public policy research organization in Hawaii to conduct a comprehensive, independent, and peer-reviewed study on the potential economic and social impacts of gambling in Hawaii.

SECTION 2. The auditor shall contract with an independent public policy research organization in Hawaii to conduct a comprehensive, independent, and peer-reviewed study on the potential economic and social impacts of gambling in Hawaii. The contracted research group shall be non-governmental and have qualified multi-disciplinary researchers assigned to the study.

The economic and social impact study shall include an analysis of data collected by the National Gambling Impact Study Commission, as well as other studies conducted in the United States and Canada, as it may pertain to potential impacts in Hawaii. The study shall examine economic and social impacts for the various forms of gambling, including one casino, multi-casinos, shipboard casino, and a state lottery. Impacts to be examined, in more detail, shall be as follows:

(1) Economic and social benefits, including:

(A) Additional jobs;

(B) Wage levels;

(C) New business for local companies;

(D) Tax revenues;

(E) New construction; and

(F) Other measures of economic and social benefits; and

(2) Social and economic costs, including:

(A) Increased rates in:

(i) Crime;

(ii) Bankruptcy;

(iii) Domestic violence;

(iv) Divorce; and

(v) Stress-related health problems and suicide;

(B) Cost of education regarding mitigation of problem gambling;

(C) Cost of new infrastructure and government regulations;

(D) Decrease in revenues for existing tourism-related businesses; and

(E) Other measures of economic and social costs.

The impact study shall also include findings and recommendations, including any necessary proposed legislation, to the governor and the legislature no later than December 31, 2003.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $400,000, or so much thereof as may be necessary for fiscal year 2002-2003, for the conduct of an economic and social impact study of gambling in Hawaii to be contracted for by the auditor with a non-governmental Hawaii public policy research organization.

The sum appropriated shall be expended by the auditor for the purposes of this Act.

SECTION 4. This Act shall take effect upon its approval, except that section 3 shall take effect on July 1, 2002.

INTRODUCED BY:

_____________________________