Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Education and Labor, to which was referred S.B. No. 1476 entitled:

beg leave to report as follows:

The purpose of this measure is to permit the Department of Education to pass on the cost of implementing and administering annuity contracts to the employees.

Testimony in support of this measure was submitted by the Department of Education.

Your Committees find that the Department of Education can not sustain the requirements of the annuity program with its current resources and is unable to provide additional resources in light of its other competing educational and instructional needs. Thus, your Committees believe that in order for the Department of Education to continue this voluntary, tax-deferred program for employees, the cost must be borne either by the participating employee or by a general appropriation. This will place the Department in the same position as the University of Hawaii.

As affirmed by the records of votes of the members of your Committees on Education and Labor that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1476 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.