STAND. COM. REP. NO. 2704

Honolulu, Hawaii

RE: S.B. No. 2333

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2333, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RETIREMENT SAVINGS,"

begs leave to report as follows:

The purpose and intent of this measure is to establish the Hawaii Retirement Savings Board and the Hawaii Retirement Savings Plan for private sector employees.

More specifically, this measure:

(1) Establishes the Hawaii Retirement Savings Board, the Hawaii Retirement Savings Plan, and the Hawaii Retirement Savings Plan Administrative Fund;

(2) Requires the Board to:

(A) Conduct a study on the feasibility of the Plan, the results of which shall determine whether the Plan will be established; and

(B) Submit its findings and recommendations to the Legislature in a preliminary report and a final report;

(3) Makes appropriations to support the Board; and

(4) Makes an appropriation to support the feasibility study.

Your Committee received written comments in support of this measure from the Hawaii Appleseed Center for Law & Economic Justice; Nisei Building Maintenance Company, Inc.; Retail Merchants of Hawaii; and five concerned individuals.

Your Committee received written comments in opposition to this measure from NAIFA Hawaii and one concerned individual.

Your Committee received written comments on this measure from the Department of Budget and Finance, and the Employees' Retirement System.

Your Committee finds that although it could be beneficial to establish the Hawaii Retirement Savings Board and the Hawaii Retirement Savings Plan, the establishment of the Board and the Plan should be determined by a preceding feasibility study.

Your Committee has amended this measure by:

(1) Requiring the Department of Budget and Finance, instead of the Board, to:

(A) Conduct the study on the feasibility of implementing the Hawaii Retirement Savings Plan;

(B) Submit a preliminary report of its findings and proposals to the Legislature no later than twenty days prior to the convening of the Regular Session of 2019; and

(C) Submit a final report of its findings and proposals to the Legislature no later than twenty days prior to the convening of the Regular Session of 2020;

(2) Amending section 1 to reflect its amended purpose;

(3) Reordering the requirements of the feasibility study as section 2 of the measure;

(4) Reordering the new chapter of the Hawaii Revised Statutes that establishes the Hawaii Retirement Savings Board and the Hawaii Retirement Savings Plan as section 3 of the measure;

(5) Adding definitions of "employee" and "employer";

(6) Clarifying that the Board's adoption of rules for the general administration of the Plan shall be pursuant to Chapter 91, Hawaii Revised Statutes;

(7) Clarifying that the Department's exemption from the requirements of Chapter 91, Hawaii Revised Statutes, in its interim rule-making is limited to the public notice and public hearing requirements of Chapter 91, Hawaii Revised Statutes; and

(8) Making technical nonsubstantive changes for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2333, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2333, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair