CONFERENCE COMMITTEE REPORT NO. 124

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 951
                                  S.D. 1
                                  H.D. 1
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

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

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 951, S.D. 1, H.D. 1, entitled:  

     "A BILL FOR AN ACT RELATING TO EMPLOYEE BENEFIT PLANS," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to authorize the University
of Hawaii and the Department of Education to establish custodial
accounts for their employees and to make periodic salary
withholdings for deposit into those accounts.  In addition, this
measure shields the University of Hawaii, the Department of
Education, and the State of Hawaii from liability for the results
of any investment.

     Your Committee intends for this measure to be implemented at
no cost to the State.

     Your Committee has amended this measure by:

 
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     (1)  Deleting the Department of Education from the
          provisions regarding the establishment of custodial
          accounts;

     (2)  Changing its effective date from January 1, 2001, to
          January 1, 2000; and

     (3)  Making technical nonsubstantive changes for the
          purposes of style and clarity.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 951, S.D. 1, H.D. 1, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 951, S.D. 1, H.D. 1, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
DAVID MORIHARA, Co-Chair           DAVID Y. IGE, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
KEN ITO, Co-Chair                  CAROL FUKUNAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
TERRY NUI YOSHINAGA, Co-Chair      ANDREW LEVIN, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
IRIS IKEDA CATALANI, Co-Chair      NORMAN SAKAMOTO, Member
                                   
                                   
                                   
______________________________     ______________________________
BERTHA F.K. LEONG, Member          SAM SLOM, Member

 
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