STAND. COM. REP. NO. 1648

Honolulu, Hawaii

RE: H.B. No. 670

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred H.B. No. 670, H.D. 1, S.D. 1, entitled:

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

beg 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;

(2) Authorize designated beneficiaries to receive the reduced ERS benefits to which the member, former member or retirant would be entitled under this section upon the death of the member, former member, or retirant; and

(3) Prohibit designated beneficiaries convicted of a felony under the same set of circumstances as the member, former member, or retirant who was subject to forfeiture of ERS benefits from receiving benefits.

Your Committees received testimony in support of this measure from the Hawaii State Ethics Commission, Employees' Retirement System, Common Cause Hawaii, and eight individuals.

Your Committees find that public officers and employees are responsible for upholding the public's trust in government and democracy, and that the public's belief in government and democracy becomes strained when public officers and employees participate in misconduct in their employment, while maintaining the benefits of their employment. Existing law requires an employee of the State or county who is convicted of a felony to have their employment terminated; however, the employee is still entitled to receive benefits from the ERS. Your Committees further find that public employees who have been convicted of a felony that is directly related to the employee's position or duties ultimately lose the trust of the public by misusing their position, and therefore, should no longer be eligible to receive their full benefits resulting from their employment with the State or county.

Your Committees also note concerns raised in the public hearing on this measure about whether this measure should also apply to misdemeanors relating to money theft or corruption, and find that these concerns merit further consideration by the Legislature.

Your Committees have amended this measure by making it effective upon its approval.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 670, H.D. 1, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 670, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair