STAND. COM. REP. NO. 876

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 159
                                     H.D. 2




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

Sir:

     Your Committee on Judiciary and Hawaiian Affairs, to which
was referred H.B. No. 159, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to expand protections for
persons who disclose violations of laws, rules, regulations,
ordinances, or codes of ethics to a public body.

     Testimony in support of this bill was received from the
Hawaii Nurses' Association, the Hawaii State Teachers
Association, the American Psychiatric Nurses Association, Common
Cause Hawaii, the American Civil Liberties Union of Hawaii, and
members of the public.  Testimony in opposition to this bill was
received from the Chamber of Commerce of Hawaii and Hawaiian
Electric Company, Inc.

     Your Committee finds that this measure is necessary to
improve and strengthen existing whistleblower protection in
Hawaii.  Whistleblowers serve a vital and positive function by
disclosing waste, fraud, abuse, and other wrongdoing in
government and business.

     Your Committee has amended this bill by:

     (1)  Deleting the word "solely" from language prohibiting
          employers from taking action against an employee solely
          on the basis of the employee's whistleblowing activity;

 
 
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     (2)  Removing references to the phrase "code of ethics"
          since adherence to internal corporate codes of ethics
          though highly encouraged, is not required by law; and

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

     As affirmed by the record of votes of the members of your
Committee on Judiciary and Hawaiian Affairs that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 159, H.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as H.B. No. 159, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Judiciary &
                                   Hawaiian Affairs,



                                   ______________________________
                                   PAUL T. OSHIRO, Chair