STAND. COM. REP. NO. 2858

Honolulu, Hawaii

RE: S.B. No. 2490

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2020

State of Hawaii

Sir:

Your Committee on Labor, Culture and the Arts, to which was referred S.B. No. 2490 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII RETIREMENT SAVINGS PROGRAM,"

begs leave to report as follows:

The purpose and intent of this measure is to establish a task force that will:

(1) Select a research entity to draft an implementation plan to create a Hawaii retirement savings program for private sector employees utilizing information from other state experiences and educational institutions with expertise on existing programs; and

(2) Report to the Legislature with its findings and proposals including legislation to authorize implementation of the plan, if necessary, by January 2021.

Your Committee received testimony in support of this measure from the Policy Advisory Board for Elder Affairs, AARP Hawaii, Maui Chamber of Commerce, Hawaii Appleseed Center for Law and Economic Justice, Hawaii Family Caregiver Coalition, Hawaiian Cool Water, Priam's Automotive Service & Repair, Burgers on Bishop, 3 Financial Group LLC, Gochi Grill on Bishop Street, Art Nelson Sailmaker/Ullman Sails, and seven individuals. Your Committee received testimony in opposition to this measure from the National Association of Insurance and Financial Advisors Hawaii and American Council of Life Insurers. Your Committee received comments on this measure from the Department of Budget and Finance, State Procurement Office, and Hawaii Bankers Association.

Your Committee finds that there is an imminent retirement security crisis in the State, as many individuals do not have access to an employer-sponsored retirement plan. Your Committee further finds that individuals need a lifelong savings strategy that provides them with the opportunity to build their assets and attain financial stability for the long run. Access by private sector employees to employer-sponsored retirement plans provides a reliable way to accumulate savings needed for a secure retirement, but many small businesses are unable to provide a mechanism for their employees to invest.

Your Committee has amended this measure by replacing language in section 2 of the bill to align more closely with the purpose section of the measure.

Your Committee received testimony recommending that the Director of Taxation, or the Director's designee, be added as a member of the Hawaii Retirement Security Task Force. Your Committee finds that this recommendation warrants further consideration by the Committee on Ways and Means as this measure proceeds through the legislative process.

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 S.B. No. 2490, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2490, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

BRIAN T. TANIGUCHI, Chair