STAND. COM. REP. NO. 1283

Honolulu, Hawaii

, 2001

RE: H.B. No. 3

H.D. 1

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Education, to which was referred H.B. No. 3, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

The purpose of this measure is to appropriate funds for a 12-month (year-round) student activities coordinator for each public high school.

Your Committee has amended the measure by replacing its contents with the contents of S.B. No. 1315, S.D. 2, H.D. 1, which was circulated as a proposed S.D. 1. This measure would:

(1) Authorize the Department of Education to establish custodial accounts for the deposit of annuity payments of employees; and

(2) Designate the insurance service providers and/or the custodial service provider offering the annuity or custodial products or the annuity entity maintaining the annuity contracts or custodial accounts on behalf of employees of the department of education shall bear the cost of administering the plan.

Your Committee heard testimony in support of the proposed S.D. 1 from the University of Hawaii, Department of Education, and Hawaii State Teachers Association.

Your Committee finds that this is the best way to implement a "Third Party Agreement" for the Department of Education so that a teacher will pay only once to whatever the insurance carrier charges the department employees for its administrative fees and any administrative fees necessary for the department to contract with a third party.

Your Committee further amended the proposed S.D. 1 to indicate that the authority of the Department of Education to pay amounts to a custodial account under shall become effective no earlier than January 1, 2004.

As affirmed by the record of votes of the members of your Committee on Education that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 3, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 3, H.D. 1, 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,

____________________________

NORMAN SAKAMOTO, Chair