Report Title:
Interisland Air Carrier Mergers; Evaluation
Description:
Requires interisland air carriers to notify the attorney general of an intent to merge. Requires the attorney general to evaluate the merger transaction.
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THE SENATE |
S.B. NO. |
3002 |
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TWENTY-FIRST LEGISLATURE, 2002 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to ANTITRUST LAW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 480, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART . INTERISLAND AIR TRANSPORTATION CARRIERS
§480- Declaration of policy. The legislature of this State recognizes that interisland air transportation of persons and of property, for commercial purposes constitutes a business affected with substantial public interest. It is intended by this part to ensure the interisland air transportation industry is competitive so as to maintain fair and reasonable rates for consumers and stability within the industry and the economy of the State.
§480- Interisland air transportation carriers; mergers, acquisitions, holding, and divestitures. (a) In addition to the provisions of section 480-7, no corporation shall acquire and hold, directly and indirectly, the whole or any part of the stock or other share capital of any other corporation, or the whole or any part of the assets of any other corporation where the effect of such acquisition and holding may be substantially to lessen competition or to tend to create a monopoly in the interisland air transportation industry in the State.
(b) A corporation involved in a transaction described in subsection (a) shall immediately notify the state attorney general of the transaction.
(c) Upon receiving the notice required by subsection (b) or upon receiving knowledge of the transaction from other sources, the state attorney general shall immediately initiate an evaluation of the transaction by:
(1) Conducting a comprehensive investigation and analysis of the impact the transaction will have on the State's interisland air transportation industry and the state economy;
(2) Holding hearings to allow the public to communicate their concerns regarding the transaction;
(3) Determining whether the transaction promotes safe, adequate, economical, and efficient interisland air transportation service and fosters sound economic conditions in interisland air transportation;
(4) Determining whether the transaction establishes and maintains reasonable rates and charges for interisland air transportation services and accessory services, without unjust discrimination, undue preference or advantage, or unfair or destructive competitive practices; and
(5) Assessing ways to limit the adverse impacts of the transaction on Hawaii's tourism industry, interisland travel by residents, the overall economy, and service to isolated airports.
(d) The attorney general shall submit a report of findings and conclusions to the governor and the legislature within a period of time to allow the governor and the legislature, if in session, to express their position regarding the transaction to the United States Department of Justice prior to its determination as to whether the transaction violates federal antitrust laws or within thirty days of receiving notice or knowledge of the transaction, whichever occurs earlier.
(e) If the transaction is determined by the attorney general to substantially lessen competition or to tend to create a monopoly in a manner that adversely impacts the state economy substantially, the state attorney general shall assert all efforts, consistent with state and federal law, to nullify or modify the transaction."
SECTION 2. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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