STAND. COM. REP. NO.  503-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2910

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2910 entitled:

"A BILL FOR AN ACT RELATING TO TRADE SECRETS,"

begs leave to report as follows:

     The purpose of this bill is to protect the rights of innovative employees by invalidating trade secret protections for employees in a collective bargaining unit unless fair compensation was negotiated collectively with employees involved in developing an alleged trade secret.

     An individual testified in support of this bill.

     It is important that Hawaii remain competitive in an increasingly global market.  One way to achieve this is through the fostering of innovative ideas.  However, many employers require employees to sign agreements assigning any rights that employees have to their inventions to the employer.  The employer may than develop an employee's invention without the employee receiving fair and just compensation.  This measure seeks to protect these inventor's rights.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2910 and recommends that it pass Second Reading and be referred to the Committee on Judiciary.

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

____________________________

ALEX M. SONSON, Chair