Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 1194 entitled:

begs leave to report as follows:

The purpose of this measure is to provide for the election of members to the Board of Trustees (Board) of the Deferred Compensation Plan pursuant to rules adopted by the Board.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association. Comments on the measure were submitted by the Department of Human Resources Development.

Your Committee finds that under the current law, aside from the ex officio members of the Board, the remaining five members of the Board are appointed by the Governor, with the advice and consent of the Senate. However, to better represent the interests of the members of the deferred compensation plan, the remaining Board members should instead be elected by the plan members themselves. Your Committee determines that this method of selection will allow the decision making of the Board to be brought closer to its own constituency.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1194 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.