STAND. COM. REP. NO. 2778

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 Ways and Means, 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 and intent of this measure is to address technological capabilities, compliance requirements, and regulatory obligations of the Employees' Retirement System by authorizing the appointment of additional executive-level leadership positions.

Specifically, this measure:

(1) Authorizes 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

(2) Exempts those positions from the State's civil service law.

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

Your Committee finds that increased membership in the Employees' Retirement System has also increased the need for additional staff executive positions. Exempting the Deputy Executive Director, Chief Compliance Officer, and Information Security Officer from civil service requirements will help the State compete with the private sector in recruiting and retaining qualified individuals for these positions.

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 S.B. No. 3097, S.D. 1, and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair