STAND. COM. REP. NO.  161

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 519

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 519 entitled:

"A BILL FOR AN ACT RELATING TO THE STATE DEFERRED COMPENSATION PLAN,"

begs leave to report as follows:

     The purpose of this bill is to assist the State and counties in filling employment positions in shortage categories by allowing employees who are excluded from participating in the Employees' Retirement System (ERS) to participate in the Deferred Compensation Plan.

     The Office of the Corporation Counsel of the County of Hawaii testified in support of this bill.  The Department of Human Resources Development opposed this measure.

     Low unemployment rates have caused the State and counties to experience difficulties in finding qualified applicants to fill a number of vacancies.  Your Committee finds that offering an additional incentive will help in recruiting individuals to fill these vacancies.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 519 and recommends that it pass Second Reading and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

ALEX M. SONSON, Chair