STAND. COM. REP. NO. 338

                                   Honolulu, Hawaii
                                                     , 1999

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




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

Sir:

     Your Committee on Education and Technology, to which was
referred S.B. No. 951 entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to enable the University of
Hawaii and the Department of Education to establish custodial
accounts for the deposit of employee annuity payments.

     Testimony in support of the measure was received from the
Department of Education, the University of Hawaii Professional
Assembly, the Hawaii State Teachers Association, and the Hawaii
State Association of Life Underwriters.  The University of Hawaii
supported the intent of the measure but had concerns with the
measure's lack of protection for the State and the University
from financial liability.

     Your Committee finds that providing such annuity contracts
and custodial accounts would enhance the benefits of University
of Hawaii and Department of Education employees.  These enhanced
benefits could possibly result in attracting more qualified
people to work for these agencies.

     Your Committee has amended the measure to address the
concerns of the University of Hawaii by inserting language that
protects the University of Hawaii, the Department of Education,
and the State from any costs or financial liability that may be
incurred through the establishment, management, or disposition of

 
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                                   STAND. COM. REP. NO. 338
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annuity contracts or custodial accounts that University or
Department of Education employees utilize.

     Your Committee believes that the amended measure strikes a
balance between providing enhanced employee benefits while
concurrently protecting the University of Hawaii, the Department
of Education, and the State from potential financial liability.

     As affirmed by the record of votes of the members of your
Committee on Education and Technology that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 951, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 951,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Education and
                                   Technology,



                                   ______________________________
                                   DAVID Y. IGE, Chair

 
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