REPORT TITLE:
Antitrust Litigation Emerg. Ap


DESCRIPTION:
Provides emergency funding ($415,000) for the litigation costs of
the gasoline antitrust lawsuit in the event alternative funding
sources do not become available.

 
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                                                        2757
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

MAKING AN EMERGENCY APPROPRIATION FOR ANTITRUST LITIGATION COSTS.



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

 1      SECTION 1.  This Act is recommended by the governor for
 
 2 immediate passage in accordance with section 9 of article VII of
 
 3 the Constitution of the State of Hawaii.
 
 4      SECTION 2.  In October 1998, the attorney general filed in
 
 5 the United States district court the case now known as Anzai v.
 
 6 Chevron Corp., Civ. No. 98-00792 SPK.  In its complaint, the
 
 7 State alleged that Chevron and other oil companies doing business
 
 8 in the State of Hawaii violated the antitrust laws, and that
 
 9 these violations have resulted in higher gasoline prices.
 
10      The case is being handled for the State by the antitrust
 
11 specialty firm of Hosie, Frost and Large of San Francisco.  The
 
12 firm agreed to take the case on a percentage fee basis that is
 
13 contingent upon recovery.  The contract, however, requires the
 
14 State to pay the first $415,000 per annum for the litigation
 
15 costs and expenses incurred by the firm.  The Department paid
 
16 this amount for the first year of the litigation, which covered
 
17 October 1, 1998 to September 30, 1999.  At present, the
 
18 Department does not have funding and has not paid for the second
 
19 year of litigation.
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1      Originally, Stripper Well settlement funds were intended to
 
 2 pay for these litigation costs.  The United States Department of
 
 3 Energy has denied the State the use of these funds for this
 
 4 purpose.
 
 5      The purpose of this Act is to provide for payment of the
 
 6 annual litigation cost obligation of $415,000 for the period from
 
 7 October 1, 1999 to September 30, 2000.
 
 8      SECTION 3.  There is appropriated out of the general
 
 9 revenues of the State of Hawaii the sum of $415,000, or so much
 
10 thereof as may be necessary, for fiscal year 1999-2000 for the
 
11 payment of the State's litigation costs of the gasoline antitrust
 
12 litigation for the period October 1, 1999, to September 30, 2000.
 
13      SECTION 4.  This Act shall take effect upon its approval. 
 
14 
 
15                       INTRODUCED BY:  ___________________________
 

 
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