SSCR1385

STAND. COM. REP. NO. 1385

Honolulu, Hawaii

RE: GOV. MSG. NOS. 735, 736, 737

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

Your Committee on Judiciary and Labor, to which was referred Governor's Message Nos. 735, 736, and 737, submitting for study and consideration the nominations of:

Board of Trustees of the Deferred Compensation Plan

G.M. No. 735

WAYNE L. CHU,

for a term to expire 6-30-2015;

G.M. No. 736

NEAL MIYAHIRA,

for a term to expire 6-30-2014; and

G.M. No. 737

DENNIS L. VANAIRSDALE,

for a term to expire 6-30-2015 (Term amended to 6-30-2012 by GM789),

begs leave to report as follows:

Your Committee has reviewed the personal histories, resumes, and statements submitted by the nominees and finds Wayne L. Chu, Neal Miyahira, and Dennis L. Vanairsdale to possess the requisite qualifications to be appointed to the Board of Trustees of the Deferred Compensation Plan.

Testimony in support of the appointment of Wayne L. Chu to the Board of Trustees of the Deferred Compensation Plan was submitted by the Director of Human Resources Development; the Comptroller; the Deputy Comptroller; the Fiscal Management Officer of the Department of Land and Natural Resources; the Fiscal Officer of the Department of Business, Economic Development, and Tourism; a Trustee on the Board of Trustees of the Deferred Compensation Plan; and five individuals.

Mr. Chu is currently the Audit Division Administrator with the Department of Accounting and General Services, which is the State's chief internal auditing officer with that department. In that capacity, Mr. Chu is responsible for ensuring that all accounting and internal control systems of departments in the Executive Branch of the state government follow prescribed procedures and principles according to state laws and rules. He has thirty-six years of experience as an accountant and auditor. Mr. Chu is a licensed Certified Public Accountant in good standing in the State of Hawaii. He has also served as a Trustee on the Board of Trustees of the Deferred Compensation Plan for two four-year terms from 2001 to 2009. He has been serving as an interim Trustee since July 12, 2010, and as the Board's Chairperson since November 2010.

Testimony in support of Mr. Chu's appointment have praised his expertise, professional approach to problems, willingness to help, strong leadership skills, and commitment to excellence. In his capacity as Trustee, testifiers noted that his extensive knowledge of the State's Deferred Compensation Plan, institutional knowledge, and accounting background have been beneficial in the Board's management of the Deferred Compensation Plan. Your Committee finds that Mr. Chu's continued presence on the Board as a Trustee is extremely helpful in managing the State's Deferred Compensation Plan, and the knowledge and experience he brings to the Board will continue to be valuable and significant.

Testimony in support of the nomination of Neal Miyahira was submitted by the Director of Human Resources Development, Director of Finance, and one individual.

Mr. Miyahira is currently the Administrator of the Budget, Program Planning and Management Division of the Department of Budget and Finance, where he is responsible for preparing and monitoring the State's short- and long-term financial plans and strategies and ensuring that state agencies meet their budgetary amounts and improve the operational efficiencies of their programs. From 1999 until 2002, when he was appointed to his current position, Mr. Miyahira served as the Director of Finance, where he managed departmental operations, oversaw planning and policy development for Executive budget preparation and execution, and oversaw planning and execution of state bond sales and investment activities. During that time, he also served as an exofficio member of the Employees' Retirement System and Public Employees Health Fund boards and as an appointed member of the Employer-Union Health Benefits Trust Fund Board. Mr. Miyahira also served as the Director of Taxation from 1998 to 1999, and the Deputy Director of Finance from 1995 to 1998. Prior to that time, he also served in the Office of the Governor, the Office of the Lieutenant Governor, and in the Department of Budget and Finance. Mr. Miyahira previously served on the Board from 1994 to 1998.

Testimony submitted in support of the confirmation of Mr. Miyahira highlighted Mr. Miyahira's extensive experience in the areas of budgeting, finance, and taxation in the public sector. Testimony submitted by the Director of Finance commended Mr. Miyahira's financial acumen and his familiarity with the complexities of financial management and investment protocol and expressed his belief that Mr. Miyahira will ensure that the Deferred Compensation Plan Board is running at its optimal performance level. Your Committee finds that Mr. Miyahira's broad experience will be valuable to the Board, and his continued role within the Department of Budget and Finance will bring additional current-issue expertise to the Board.

Testimony in support of Mr. Vanairsdale's appointment was submitted by the Director of Human Resources Development, the Chancellor of the University of Hawaii-Kapi‘olani Community College, and ten individuals.

Mr. Vanairsdale is currently a professor at the University of Hawaii-Kapi‘olani Community College, where he has taught accounting, taxation, and business law from 1984 to the present. From 1983 to 1984, he served as the Legal Services Developer with the Executive Office on Aging, Office of the Governor. He was an attorney in private practice, with an emphasis on taxation, from 1981 to 1983. From 1979 to 1981, he worked as a Certified Public Accountant with the accounting firm of Deloitte Haskins and Sells. Additionally, he continues to engage in part-time employment in the legal, health, and life insurance fields. He is also currently the Chairperson of the Investment, Finance, and Audit Committee of the University of Hawaii Professional Assembly (UHPA).

Testimony submitted in support of Mr. Vanairsdale's confirmation commended his professional experience and understanding of financial planning and prudent investing. His service on the Investment, Finance, and Audit Committee has given him an understanding of issues regarding retirement and retirement plans, subjects that have become critical for UHPA. Testifiers also praised Mr. Vanairsdale's professional approach to his work, keen interest in making constructive contributions, collaborative work ethic, respect of opinions other than his own, and ability to see the big picture. Your Committee finds that Mr. Vanairsdale's broad experience in accounting, taxation, and business law, and his work with the Investment, Finance, and Audit Committee, will provide a unique perspective and a valuable contribution to the Board.

As affirmed by the records of votes of the members of your Committee on Judiciary and Labor that are attached to this report, your Committee, after full consideration of the background, experience, and qualifications of the nominees, has found the nominees to be qualified for the positions to which nominated and recommends that the Senate advise and consent to the nominations.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

____________________________

CLAYTON HEE, Chair