STAND. COM. REP. NO. 3278

Honolulu, Hawaii

RE: S.B. No. 2402

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 2402, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Authorize a court to order the forfeiture of one-half of the Employees' Retirement System (ERS) benefits of an ERS member, former member, or retirant upon conviction of the individual for a felony related to the state or county employment of the individual; and

(2) Authorize designated beneficiaries to receive one-half of the ERS benefits upon the death of the ERS member, former member, or retirant convicted of the felony.

Your Committee received testimony in support of this measure from Common Cause Hawaii, Pono Hawai‘i Initiative, and six individuals. Your Committee received comments on this measure from the State of Hawaii Employee's Retirement System.

Your Committee finds that Hawaii is one of thirteen states, including the District of Columbia, that does not have any law that governs the forfeiture of public pensions for public employees who are convicted of a felony. This measure requires the ERS to comply with a court decree for the forfeiture of one-half of the retirement benefits of a member convicted of a felony that the court finds to be related to the employment of the member and to accordingly allow designated beneficiaries to receive one-half of the benefits after the death of the retiree.

Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2402, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2402, S.D. 2.

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

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KARL RHOADS, Chair