Local packaging laws hurt economy
In the discussion surrounding whether packaging regulations on consumer items such as paper and plastic grocery bags should be set at the state or local level, it's imperative that local, elected officials don't make the crucial mistake of placing Oklahoma businesses, and our economy, at risk by creating a patchwork of onerous local regulations.
When everyday products like paper cups, grocery bags, to-go containers, straws and bottles are taxed and regulated inconsistently, it creates costly problems for manufacturers, retailers and working families. These issues add to local tax burdens and corrode the free market. Adopting statewide uniformity of commerce for auxiliary containers is needed to protect against overregulation, support hundreds of manufacturing jobs and uphold consumer freedom. Sixteen states have adopted uniformity of commerce laws that provide protections and freedoms to families and businesses.
Oklahoma often faces an economic perception battle and the age-old question: Is the state open for business? Recently, the Norman Economic Development Coalition expressed concern that next-generation employees graduating from the University of Oklahoma don't have faith that they will find attractive employment opportunities in Oklahoma, meaning the state is at further risk of exporting its future talent unless a steady source of high-quality, high-wage jobs is available.
This can only be accomplished if Oklahoma becomes a top 10 state for business climate and investment. Any edge we have gained will be quickly eroded if the private sector is forced to spend valuable resources to comply with a litany of anti-business, job-depleting ordinances. We have seen what has happened where states, with a mixed bag of local regulations, have forced manufacturers to develop specially designed, city-specific product lines.
Meanwhile, grocers and restaurants that purchase bags have to overhaul their product ordering and inventory systems, change entire inventories at some locations, order entirely new ones for others and charge bag fees at other locations still. Employee training costs also increase as directions vary across neighboring jurisdictions. In other states, retailers in the bag ban or tax areas lose customers to neighboring stores that do not ban or tax bags.
Patchwork legislation by municipalities creates significant costs for manufacturers and merchants that only harm, not help, regional economies and everyday consumers. Sen. James Leewright, R-Bristow, is the author of Senate Bill 1001, a measure that is sound public policy and a smart choice for the state of Oklahoma. To develop into a growing and thriving economic center, legislators are urged to support this common-sense measure, which among many of its benefits will elevate Oklahoma into a legitimate top 10 state for doing business.