STAND. COM. REP. NO. 1256-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3097

S.D. 1

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Labor, to which was referred S.B. No. 3097, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to allow the Board of Trustees of the Employees' Retirement System, through its Executive Director, to appoint a Deputy Executive Director, a Chief Compliance Officer, and an Information Security Officer, and to exempt these positions from state civil service requirements.

Your Committee received testimony in support of this measure from the Board of Trustees of the Employees' Retirement System.

Your Committee finds that the Employees' Retirement System has experienced substantial growth in membership and increasing complexity in technological, compliance, and regulatory obligations, which has elevated the demands placed on its executive‑level leadership. Your Committee further finds that the Deputy Executive Director, Chief Compliance Officer, and Information Security Officer positions require specialized expertise, competitive compensation, and direct accountability structures to effectively safeguard operations and assets of the Employees' Retirement System. This measure will strengthen governance, improve recruitment and retention, and ensure the long‑term stability and professionalism of the System.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

(2) 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 that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3097, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3097, S.D. 1, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

JACKSON D. SAYAMA, Chair