STAND. COM. REP. NO. 2539

Honolulu, Hawaii

RE: S.B. No. 3095

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 Labor and Technology, to which was referred S.B. No. 3095 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 enable the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund (Trust Fund) to establish appropriate salaries for the investment office staff of the Trust Fund.

Your Committee received testimony in support of this measure from the Board of Trustees of the Hawaii Employer-Union Health Benefits Trust Fund.

Your Committee finds that salaries for investment professionals in the private sector far outpace that of state employment. Your Committee further finds that for the Trust Fund to effectively recruit and retain the most capable employees to invest and mamage its investment portfolio, the Board of Trustees should be allowed to set the salaries of its investment officers and investment analysis. This measure will allow the Trust Fund to attract quality investment staff, on par with the investment staff of the Employees' Retirement System.

Your Committee has amended this measure by:

(1) Inserting an effective date of January 1, 2077, 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. 3095, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3095, 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 and Technology,

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BRANDON J.C. ELEFANTE, Chair