STAND. COM. REP. NO. 15

Honolulu, Hawaii

, 2023

RE: H.B. No. 103

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Labor & Government Operations, to which was referred H.B. No. 103 entitled:

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

begs leave to report as follows:

The purpose of this measure is to allow state and county departments and agencies additional time to comply with Employees' Retirement System reporting standards for payroll and personnel transaction information based on when final specifications are provided by the Employees' Retirement System.

Your Committee received testimony in support of this measure from the Department of Human Resources of the City and County of Honolulu and County of Hawai‘i Department of Human Resources. Your Committee received testimony in opposition to this measure from the Employees' Retirement System.

Your Committee finds that changes to category and format requirements for the presentation of information to the Employees' Retirement System have impacted human resources departments in their ability to meet the existing deadline. The penalty in place for not meeting the deadline is that the employer must pay for an entire year of retirement system contributions at the beginning of the fiscal year. This measure will extend the deadline to enhance the departments' ability to comply.

Your Committee encourages the Employees' Retirement System to communicate with stakeholders throughout this process to ensure they have the information they need to meet the System's reporting standards.

Your Committee has amended this measure by:

(1) Changing the proposed extended time frame within which each department or agency shall provide the information to the Employees' Retirement System in the required format from two years to one year;

(2) Changing the effective date to June 30, 3000, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 103, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 103, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Government Operations,

____________________________

SCOT Z. MATAYOSHI, Chair