STAND. COM. REP. NO. 1505

Honolulu, Hawaii

RE: H.B. No. 941

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Labor, Culture and the Arts, to which was referred H.B. No. 941, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO EMPLOYEE'S DESIGNATION OF BENEFICIARY FORM,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Allow an employee's designation of beneficiary form to be kept in the department where the employee is employed; and

(2) Remove the requirement that the designation of beneficiary information be submitted in a verified written statement.

Your Committee received testimony in support of this measure from the Department of Accounting and General Services.

Your Committee finds that existing law requires an employee of a state department's designation of beneficiary form to be a written statement that is notarized and filed with the comptroller. This requirement has resulted in thousands of designation of beneficiary forms being maintained in a central location at the Department of Accounting and General Services. Your Committee additionally finds that the recent modernization of the HawaiiPay payroll system has caused several departments and agencies to request an electronic means of storing and updating an employee's designation of beneficiary. This measure removes the requirement that the designation of beneficiary only be in a verified written statement, and allows the filing of an employee's designation of beneficiary by electronic means in order to facilitate accessibility to the designation of beneficiary process and provide administrative efficiencies.

Your Committee has amended this measure by:

(1) Clarifying that a public employee is allowed to file a verified written or electronic statement designating a beneficiary with the comptroller or other disbursing officer or department in which the employee is employed; and

(2) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 941, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 941, H.D. 1, S.D. 1, and be referred to your Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Labor, Culture and the Arts,

________________________________

BRIAN T. TANIGUCHI, Chair