STAND. COM. REP. NO. 239

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1035
                                     




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 H.B. No. 1035 entitled: 

     "A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT
     SYSTEM,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Allow the Board of Trustees (Board) of the Employees'
          Retirement System to appoint a chief investment officer
          and an assistant administrator; and

     (2)  Mandate that the Attorney General serve as legal
          adviser to the board. 

     Currently, the Board has discretion to select its own legal
counsel.

     The Hawaii State Teachers Association submitted testimony in
support of this measure and offered an amendment specifying that
the assistant administrator position would remain a civil service
position.

     The Employees' Retirement System submitted comments.

     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

 
 
                                 STAND. COM. REP. NO. 239
                                 Page 2

 
of H.B. No. 1035 and recommends that it pass Second Reading and
be referred to the Committee on Finance.

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



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair