STAND. COM. REP. NO.  720-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 2264

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 2264 entitled:

"A BILL FOR AN ACT RELATING TO INVESTMENT AUTHORITY OF THE EMPLOYEES' RETIREMENT SYSTEM,"

begs leave to report as follows:

The purpose of this measure is to allow the Board of Trustees of the Employees' Retirement System of the State of Hawaii (ERS) to better manage the ERS real estate portfolio by repealing the limitation on the holding periods for real estate acquired by ERS by foreclosure, by enforcement of security, or in satisfaction of debts so that it may be held and disposed of like any other investment interest in real property.

The Department of Budget and Finance and the Employees' Retirement System Board testified in support of this measure.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2264 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

SYLVIA LUKE, Chair