STAND. COM. REP. NO. 3425

Honolulu, Hawaii

RE:    H.B. No. 1365

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1365, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE OF HAWAII DEFERRED COMPENSATION PLANS,"

begs leave to report as follows:

     The purpose of this measure is to expand the types of investment products into which public employees may invest their deferred compensation to also include reasonably prudent investment products that are commonly offered in the securities industry or by other deferred compensation plans.

     This measure covers the deferred compensation plans of both the employees who are members of the Employees' Retirement System and the part-time, temporary, seasonal or casual employees who are not eligible to participate in the Employees' Retirement System.

     Testimony in support of the measure was submitted by the Department of Human Resources Development.

     Your Committee finds that this measure will ensure that the best investment products available in a constantly changing securities market will be offered in the deferred compensation plans of public employees.

     Your Committee amended this measure by changing the effective date to July 1, 2008 and making technical nonsubstantive amendments for the purposes of clarity 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 H.B. No. 1365, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1365, S.D. 2.

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

____________________________

ROSALYN H. BAKER, Chair