Bill limiting ‘big box’ stores
goes to California governor

Associated Press

SACRAMENTO -- A last-minute bill backed by labor groups and grocery stores and aimed at limiting new giant retail discount stores that sell food has been hastily approved by the California Legislature.

Backers said it was needed to save jobs and keep supermarkets from being forced out of business. Opponents argued the bill, which did not exist before Wednesday, would usurp local powers.

The bill by Assemblyman Dick Floyd, D-Harbor City, was sent to the governor early today on a 43-30 Assembly vote. The Senate approved it 21-16 yesterday. Gov. Gray Davis does not yet have a position on the bill, his press secretary, Michael Bustamante, said today.

The bill would prohibit local governments from authorizing new stores of more than 100,000 square feet that include more than 15,000 square feet of nontaxable merchandise, such as groceries and some types of pharmaceuticals.

Assemblyman Tom Calderon, D-Montebello, said the huge retail stores, known as "big boxes," come to a town, reduce prices until they drive local stores out of business, then boost prices again. "This is about saving jobs. This is about competition," Calderon said.

Floyd called the big stores "monsters," saying they are frequently not unionized, don't pay their workers good wages and benefits and don't spend their profits in the community.

Opponents complained about the sudden emergence of the bill, which had only one public hearing with no advanced public notice.