STAND. COM. REP. NO. 2640

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2437
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Judiciary, to which was referred S.B. No.
2437, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO ANTITRUST,"

begs leave to report as follows:

     The purpose of this bill, as received by your Committee, is:

     (1)  To clarify that any person may bring an unfair method
          of competition action based on section 480-2, Hawaii
          Revised Statutes; and

     (2)  To authorize class actions by private parties on behalf
          of indirect purchasers.

     Your Committee finds that a Hawaii Supreme Court case
decided in July 1999, Robert's Hawaii School Bus, Inc. v.
Laupahoehoe Transportation Company, Inc., held that there is no
private claim for relief under section 480-13, Hawaii Revised
Statutes, for unfair methods of competition in violation of
section 480-2, Hawaii Revised Statutes.  Your Committee finds
that to carry out the purpose of discouraging unfair methods of
competition, a private claim for relief should be available to
consumers, businesses, and any others who have been injured by
unfair methods of competition.

     Testimony in support of this measure was submitted by the
Consumer Lawyers of Hawaii and one attorney.  Comments on this
measure were submitted by Hawaii Medical Service Association.

 
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                                   STAND. COM. REP. NO. 2640
                                   Page 2



     Upon further consideration, your Committee has amended this
measure by deleting provisions that would authorize class actions
by private parties on behalf of indirect purchasers.

     As affirmed by the record of votes of the members of your
Committee on Judiciary that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2437, S.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as S.B. No. 2437, S.D.
2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary,



                                   ______________________________
                                   AVERY B. CHUMBLEY, Co-Chair



                                   ______________________________
                                   MATTHEW M. MATSUNAGA, Co-Chair

 
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