CONFERENCE COMMITTEE REP. NO. 8-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3097

S.D. 1

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir and Madam:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 3097, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE EXEMPTION FROM CIVIL SERVICE OF EXECUTIVE PERSONNEL OF THE EMPLOYEES' RETIREMENT SYSTEM,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to allow the Board of Trustees of the Employees' Retirement System, through its Executive Director, to appoint specified executive personnel positions of the Employees' Retirement System and exempt these positions from the State's civil service requirements.

Your Committee on Conference finds that the Employees' Retirement System has experienced substantial growth in membership, along with increasing complexity in technological capabilities, compliance requirements, and regulatory obligations, necessitating the appropriate staffing of executive level positions that require specialized expertise, competitive compensation, and direct accountability to effectively safeguard the operations and assets of the Employees' Retirement System. This measure ensures that executive management positions are directly accountable to the Employees' Retirement System's Board of Trustees and Executive Director, thereby enabling the Board to exercise greater oversight of the appointment and execution of duties of those in critical positions to support the sustainability of the Employees' Retirement System.

Your Committee on Conference has amended this measure by inserting an effective date of July 1, 2026.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 3097, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 3097, S.D. 1, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ JACKSON D. SAYAMA Co-Chair	____________________________ BRANDON J.C. ELEFANTE Chair
____________________________ MIKE LEE Co-Chair	____________________________ HERBERT M. RICHARDS, III Co-Chair