STAND. COM. REP. NO. 1340-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 3003
                                     S.D. 1
H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Labor and Public Employment and Finance,
to which was referred S.B. No. 3003, S.D. 1, entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to:

     (1)  Give those public employees who switched to the
          noncontributory plan and who are in service as of
          December 31, 2000, the option of rejoining the
          contributory plan;

     (2)  Give those public employees who were never contributory
          plan members but who were hired after July 1, 1984, and
          who are in service as of December 31, 2000, the option
          of becoming contributory plan members; and

     (3)  Require all public employees who enter service after
          December 31, 2000 to become a member of the
          contributory plan.  

     The Hawaii State Teachers Association testified in support
of this measure.  The HGEA-AFSCME Local 152 testified in support
of the intent of this measure and suggested amendments.  The
State of Hawaii Employees' Retirement System provided testimony

 
 
 
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                                 Page 2

 
commenting on this measure.  The Department of Budget and Finance
provided testimony expressing its concern regarding this measure. 

     Your Committees have amended this bill by leaving the
effective date blank to facilitate discussion.

     As affirmed by the records of votes of the members of your
Committees on Labor and Public Employment and Finance that are
attached to this report, your Committees are in accord with the
intent and purpose of S.B. No. 3003, S.D. 1, as amended herein,
and recommend that it pass Second Reading in the form attached
hereto as S.B. No. 3003, S.D. 1, H.D. 1, and be placed on the
calendar for Third Reading.

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

                                   
                                   
                                   
                                   
______________________________     ______________________________
DWIGHT Y. TAKAMINE, Chair          TERRY NUI YOSHINAGA, Chair