STAND. COM. REP. NO.1314

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1281
                                     S.D. 2
                                     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 S.B. No. 1281, S.D. 2, 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 allow the Board of Trustees
of the Employees' Retirement System (ERS) to appoint an assistant
administrator and a chief investment officer.

     The ERS supported the bill with recommended amendments.

     Your Committee notes that this bill is similar to H.B. No.
1035, H.D. 1, that was passed out of the House of Representatives
earlier this session after public hearings before this Committee
and the Committee on Finance.  Your Committee has amended this
bill by:

     (1)  Inserting the language from H.B. No. 1035, H.D. 1; and

     (2)  Changing the effective date of the bill to August 1,
          2001.

     By restoring the language of H.B. No. 1035, H.D. 1, the bill
will also require the Attorney General to serve as legal advisor
to the Board of Trustees.

 
 
 
                                 STAND. COM. REP. NO. 1314
                                 Page 2

 

     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 S.B. No. 1281, S.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1281, S.D. 2, H.D. 1, 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