STAND

STAND. COM. REP. NO.552-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2232

H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Labor and Public Employment and Judiciary and Hawaiian Affairs, to which was referred H.B. No. 2232 entitled:

"A BILL FOR AN ACT RELATING TO THE WHISTLEBLOWERS' PROTECTION ACT,"

beg leave to report as follows:

The purpose of this bill is to strengthen the Whistleblowers' Protection Act by:

(1) Expanding protections to employees who report or are about to report violations:

(A) To employers; or

(B) Of a government contract;

(2) Increasing the penalty for violations of the Whistleblowers' Protection Act by establishing a minimum fine of $500 and a maximum fine of $10,000 per violation; and

(3) Extending the statute of limitations for bringing a civil action under the Whistleblowers' Protection Act to two years after the alleged violation.

The Hawaii State Commission on the Status of Women, Hawaii Government Employees Association, ILWU Local 142, Hawaii Nurses Association, and a concerned citizen testified in support of this measure. The Society of Human Resource Management-Hawaii Chapter, The Chamber of Commerce of Hawaii, General Contractors Association of Hawaii, and Hawaii Bankers Association testified in opposition to this measure.

The Whistleblowers' Protection Act was enacted to protect employees who report violations of federal, state, and local laws, regulations, or any other illegal activity performed by an employer. Recent inquiries into the State's compliance with the Felix Consent Decree have substantiated the need for such legislation since reports were received of witnesses being threatened and employers retaliating against employees who wanted to provide testimony. However, your Committees find that the current whistleblower statute affords protection only for employees who report or threaten to report a violation or suspected violation of law to a public body.

This bill would afford more realistic protection for employees. However, your Committees also understand that the maximum $10,000 fine for a violation of the whistleblower statute may be excessive. Accordingly, your Committees have amended this bill by:

(1) Changing the amount of the maximum fine for violations of the Whistleblowers' Protection Act to $5,000 per violation; and

(2) Making technical, nonsubstantive amendments for purposes of clarity, conformity, and style.

As affirmed by the records of votes of the members of your Committees on Labor and Public Employment and Judiciary and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2232, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2232, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Labor and Public Employment and Judiciary and Hawaiian Affairs,

____________________________ ERIC G. HAMAKAWA, Chair		____________________________ SCOTT K. SAIKI, Chair