STAND. COM. REP. NO. 634

Honolulu, Hawaii

RE: S.B. No. 1311

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 1311 entitled:

"A BILL FOR AN ACT RELATING TO THE REPEAL OF ACT 192, SESSION LAWS OF HAWAII 2007,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal Act 192, Session Laws of Hawaii 2007, which requires the Employees' Retirement System to divest itself of investments in companies that provide support for genocide in Darfur, Sudan, and to provide annual reports to the Legislature on the status of those divestments.

Your Committee received testimony in support of this measure from the Employees' Retirement System. Your Committee received testimony in opposition to this measure from one individual.

Your Committee finds that Act 192, Session Laws of Hawaii 2007, was enacted to voice Hawaii's opposition to the humanitarian crisis that was occurring in the Darfur Region of Sudan and place economic pressure on the Sudanese Government by prohibiting the Employees' Retirement System from investing in companies that do business with Sudan. Since then, reports by the United State Department of State concluded that the United States has revoked all sanctions against Sudan and that the President has declared that the government of Sudan has honored its commitments to cease attacks on civilians, demobilize and demilitarize the Janjaweed and associated militias, granted free and unfettered access for deliveries of humanitarian assistance, and allowed for the safe and voluntary return of refugees and internally displaced persons. According to testimony received by your Committee, this measure will also relieve the Employees' Retirement System and its investment manager of a significant monitoring and reporting burden and associated expenses.

Your Committee has amended this measure by:

(1) Inserting an effective date of January 1, 2050, to encourage further discussion; and

(2) 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 Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1311, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1311, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

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SHARON MORIWAKI, Chair