STAND. COM. REP. NO. 1721

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1282
                                     S.D. 2
                                     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 Finance, to which was referred S.B. No.
1282, S.D. 2, H.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to provide greater investment
flexibility for the Employees' Retirement System (ERS) Board of
Trustees and their real estate investment managers by authorizing
ERS to invest in real estate through limited liability companies
and similar entities.

     ERS commented on this measure.

     Your Committee has amended this measure by:

     (1)  Changing its effective date from August 1, 2001, to
          upon its approval; and

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

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1282, S.D. 2, H.D. 1, as amended herein, and recommends that it

 
 
 
                                 STAND. COM. REP. NO. 1721
                                 Page 2

 
pass Third Reading in the form attached hereto as S.B. No. 1282,
S.D. 2, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair