CONFERENCE COMMITTEE REP. NO. 36

Honolulu, Hawaii

, 2005

RE: S.B. No. 702

S.D. 2

H.D. 1

C.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 702, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ANTITRUST,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to update the State's antitrust laws relating to mergers and acquisitions so as to be consistent with federal law. This measure:

(1) Expands the scope of antitrust laws governing mergers and acquisitions to include all business entities;

(2) Establishes a private party's right of action for injunctive relief if the party will or may be injured by a proposed merger or acquisition; and

(3) Authorizes an award of reasonable costs and attorney's fees to the prevailing party in an injunctive action.

Your Committee on Conference has amended this measure:

(1) To prohibit anti-competitive or monopolistic acquisitions and holdings of a person's "stock, interest, or membership", rather than a person's "stock or other share capital";

(2) To define "subsidiary" and "control" in section 480-7, Hawaii Revised Statutes (HRS);

(3) To authorize, rather than to require, a court to order a divestiture when the court finds that a holding substantially lessens competition or tends to create a monopoly;

(4) To repeal the prerequisites for divestiture that the assets be reasonably identifiable and separable, and that divestiture not result in undue hardship on the economic entity;

(5) By deleting and inserting language to reflect that the measure shall take effect upon its approval, rather than on July 1, 2099; and

(6) By making technical, nonsubstantive amendments to repeal obsolete or redundant language, and for purposes of clarity, consistency, and style.

Finally, your Committee on Conference finds that the intent of section 480-7(b), HRS, in the measure, as amended, is to provide the opportunity to a person who is threatened with loss or damage in the person's business or property by reason of anything forbidden or declared unlawful in section 480-7(a), HRS, to seek injunctive relief against the threatened loss or damage without having to allege or prove actual loss or damage.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 702, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 702, S.D. 2, H.D. 1, C.D. 1.

 

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________

KENNETH HIRAKI, Co-Chair

____________________________

RON MENOR, Chair

____________________________

SYLVIA LUKE, Co-Chair

____________________________

COLLEEN HANABUSA, Co-Chair