STAND. COM. REP. NO. 3668

Honolulu, Hawaii

RE: H.B. No. 2276

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2276, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND INVESTMENT OFFICE STAFF SALARIES,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund to set the salaries of the Fund's investment officers and investment analysts.

Your Committee received written comments in support of this measure from the Hawaii Employer-Union Health Benefits Trust Fund.

Your Committee finds that salaries for investment professionals in the private sector outpace salaries for commensurate state employment, making it difficult to attract and retain qualified investment personnel. Your Committee believes that authorizing the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund to set the salaries of investment office personnel will enable the Fund to compete with the private sector in hiring and retaining qualified professionals to properly manage the Fund's assets.

Your Committee has amended this measure by specifying that the Board of Trustees shall set the salaries of the Fund's Administrator, Chief Investment Officer, investment officers, and investment analysts after conducting a market analysis of commensurate salaries in the private sector.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2276, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2276, H.D. 1, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair