STAND. COM. REP. NO. 2320

Honolulu, Hawaii

RE: S.B. No. 3097

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. 3097 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 and intent 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 of the State of Hawaii and exempt these positions from the State's civil service requirements.

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

Your Committee finds that with the increased membership of the Employees' Retirement System, technology capabilities, compliance requirements, and regulatory obligations, there is a need to appropriately staff executive level positions. Your Committee further finds that executive management positions need to be more directly responsible for the Employees' Retirement System Board and its Executive Director, and thereby all Employees' Retirement System members. This measure allows the Board of Trustees of the Employees' Retirement System to have greater influence on the appointment of key positions to ensure the sustainability 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 a technical, nonsubstantive amendment 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. 3097, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3097, 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