STAND. COM. REP. NO. 713

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 159
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred H.B. No. 159 entitled: 

     "A BILL FOR AN ACT RELATING TO WHISTLEBLOWER PROTECTION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Prohibit an employer from making, adopting, or
          enforcing any rule, regulation, or policy to prevent an
          employee from disclosing violations of law, rule,
          regulation, ordinance, or code of ethics;

     (2)  Expand coverage under current Whistleblower protection
          to also prohibit an employer or agent of an employer
          to:

          (a)  Demote;

          (b)  Suspend;

          (c)  Harass;

          (d)  Blacklist;

          (e)  Fail to promote;

          (f)  Transfer;


 
 
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          (g)  Discipline;

          (h)  Significantly change duties or responsibilities;

          (i)  Conduct adverse performance appraisals; or

          (j)  In any other manner discriminate,

          against an applicant, employee, or former employee;

     (3)  Clarify that the content of whistleblower-type
          information includes:

          (a)  Danger to public health, safety, and welfare;

          (b)  Fraud;

          (c)  Waste, misuse, and misappropriation of public
               resources; or

          (d)  Malfeasance, misfeasance, or neglect of duty by an
               agency;

     (4)  Prohibit an employer from discriminating against an
          employee, or any individual who supports the employee,
          who refuses to participate in or refuses to remain
          silent about violations or suspected violations;

     (5)  Expand allowable civil action by a whistleblower to
          include compensatory and punitive damages;

     (6)  Increase the allowable period to bring civil action
          from within 90 days to within 180 days after:

          (a)  The occurence of the alleged whistleblower
               violation; or

          (b)  After all grievance procedures under collective
               bargaining agreements have been exhausted;

     (7)  Exempt the State, as an employer, from punitive
          damages;

     (8)  Allow the court to order a stay of the alleged
          discrimination, if the court determines that the
          violation exists or is about to take place;

     (9)  Increase the fine, when a person violates this part,
          from $500 to $10,000 for each violation;

 
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     (10) Specify that a state employee in violation of this
          part, will be:

          (a)  Subject to internal disciplinary proceedings; and

          (b)  Liable for damages in an action brought by the
               liable party.

     The Hawaii Chapter of the American Psychiatric Nurses
Association, the Hawaii Nurses' Association, Common Cause Hawaii,
and members of the public  testified in support of this measure.
The ILWU the Hawaii State Teachers Association, and a member of
the public testified in support of the intent of this measure
with suggested amendments.  The Chamber of Commerce of Hawaii
opposed this measure.

     Your Committee finds that whistleblowers serve a vital and
positive function by courageously disclosing on-the-job
wrongdoings and violations.  Whistleblowers are often subjected
to a consistent pattern of harsh reprisals which include
blacklisting, dismissal, job transfers, personal harassment, or
personal attacks.  Your Committee further finds that current law
is too weak to significantly protect whistleblowers.  This
measure substantially:

     (a)  Strengthens the remedies avaiable to whistleblowers;
          and

     (b)  Increases penalties for violations.

     Your Committee heard testimony from the Chamber of Commerce
of Hawaii which cited that currently drafted amendments are too
stringent.  It is not your Committee's intent to restrict or
constrain business interests; however, your Committee firmly
believes that it is in the public's interest to promote
whistleblower protections.  Your Committee passed this measure
with the intent to encourage further discussion regarding current
whistleblower protections and penalties.

     Upon further consideration, your Committee has amended this
measure by making technical, nonsubstantive amendments for
purposes of style, clarity, and consistency.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 159, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 159, H.D.
1, and be referred to the Committee on Judiciary and Hawaiian
Affairs.

 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair