Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 3120 entitled:

begs leave to report as follows:

The purpose of this measure is to prohibit the inclusion of provisions that restrict access to prospective employment within employment contracts in the broadcast industry.

Testimony in support of this measure was submitted by the Hawaii Branch of the Screen Actor's Guild; the International Alliance of Theatrical and Stage Employees, Local 665; the American Federation of Musicians, Hawaii Local 677; the International Brotherhood of Electrical Workers (IBEW), State Federation, IBEW, Local 1260; Radcliffe & Associates, LLC; and two individuals.

Testimony in opposition to this measure was submitted by Hearst-Argyle Television, Inc., Clear Channel Communications, Emmis Communications, Raycom Media, and Clear Channel Radio Hawaii.

Your Committee finds that the broadcast industry in Hawaii is a relatively small community which offers few opportunities for employment, in contrast to the sizeable markets on the mainland. Your Committee further finds that due to the market size, many individuals entering into negotiations for employment contracts with broadcast employers lack sufficient bargaining power to exclude noncompete clauses from their contracts. Your Committee determines that these individuals should be permitted to market themselves freely and seek employment elsewhere without the burden of excessive restrictions. However, your Committee further determines that limiting this measure to apply only to broadcast talent will ensure that the effect on broadcast employers is not also overly onerous.

Accordingly, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3120, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3120, S.D. 1, and be referred to the Committee on Judiciary and Hawaiian Affairs.