STAND. COM. REP. NO. 1418

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 235
                                     S.D. 2
                                     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 S.B. No. 235, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO EMPLOYEE PROTECTION UNDER THE
     WHISTLEBLOWER LAW,"

begs leave to report as follows:

     The purpose of this bill is to expand areas of protected
conduct and penalties under the Whistleblowers' Protection Act.

     Common Cause Hawaii and the American Civil Liberties Union
of Hawaii testified in support of the measure.  ILWU Local 142
and the Hawaii State Teachers Association supported the intent of
the measure.  The Society for Human Resource Management and an
individual commented on the measure.  The Chamber of Commerce of
Hawaii and the Hawaii Nurses' Association opposed the measure.

     Your Committee has amended this bill by:

     (1)  Limiting the unlawful conduct to conduct based solely
          on the employee's whistleblowing;

     (2)  Removing a suspected violation from the list of
          reported whistleblowing activities protected by the
          bill;

     (3)  Including information of fraud, misuse, waste, and
          malfeasance or neglect, but not information relating to

 
 
                                 STAND. COM. REP. NO. 1418
                                 Page 2

 
          the public welfare, in the information subject to
          whistleblowing protection;

     (4)  Establishing an affirmative defense for an employer
          that the reported information was incorrect or the
          conduct did not occur;

     (5)  Inserting that an employee requires a reasonable cause
          to believe that the information reported is true to
          obtain whistleblower protection;

     (6)  Defining "reasonable cause to believe";

     (7)  Amending language to protect employers from multiple
          whistleblower suits under various laws;

     (8)  Adding compensatory damages to the remedies awardable
          by the court in a civil action under the Act; and

     (9)  Clarifying the maximum penalty under the Act.

     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 S.B. No. 235, S.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
235, S.D. 2, H.D. 1, and be referred to the Committee on
Judiciary and Hawaiian Affairs.

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



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair