STAND. COM. REP. NO. 874

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 Commerce and Consumer Protection, to which was referred H.B. No. 1004, H.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 that 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 market conduct of outside entities.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2011; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1004, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1004, H.D. 1, S.D. 1, and be referred to the Committee on Judiciary and Labor.

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

____________________________

ROSALYN H. BAKER, Chair