STAND. COM. REP. NO. 355

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1036
                                     H.D. 1




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. 1036 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 allow the board of trustees
of the Employees' Retirement System (ERS) to invest in real
estate through limited liability companies and similar entities.

     The ERS commented on the bill.

     Your Committee finds that the ERS will benefit by expanding
its permitted real estate investment vehicles to include the new
form of entity, limited liability company, and similar entities.

     Your Committee has made technical, nonsubstantive amendments
to the bill for purposes of style and clarity.

     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
of H.B. No. 1036, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as H.B. No. 1036, H.D.
1, and be referred to the Committee on Finance.


 
 
 
 
                                 STAND. COM. REP. NO. 355
                                 Page 2

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



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair