STAND. COM. REP. NO. 1217

Honolulu, Hawaii

RE:    H.B. No. 1004

       H.D. 1

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Judiciary and Labor, to which was referred H.B. No. 1004, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CHAPTER 480, HAWAII REVISED STATUTES,"

begs leave to report as follows:

     The purpose and intent of this measure is to clarify the existing antitrust law to reconfirm the right of government entities to bring actions for damages notwithstanding the government entities' status as indirect purchasers.

     Your Committee received testimony in support of this measure from the Department of the Attorney General.

Your Committee finds that this measure will provide the State an opportunity to seek redress where the State has been harmed by antitrust violations.  Your Committee further finds that the current law has prevented the State from pursuing suit for identified antitrust violations involving matters such as systemic price fixing, which would have properly resulted in reimbursement to the State for overcharges and other damages.  Finally, your Committee finds that this measure does not create any new violations or enable undue expansion of damage awards.  Rather, this measure allows the State to pursue proper remedies for actual economic harm suffered by the State because of the unlawful conduct of outside entities.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1004, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

CLAYTON HEE, Chair