STAND. COM. REP. NO. 1384_______

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1314
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Labor and Public Employment, to which was
referred S.B. No. 1314, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO RETIREMENT BENEFITS FOR
     TRUSTEES OF THE OFFICE OF HAWAIIAN AFFAIRS,"

begs leave to report as follows:

     The purpose of this bill is to allow the trustees of the
Office of Hawaiian Affairs (OHA) to participate in and receive
the same benefits from retirement benefits programs as other
elected salaried state officials.

     The Office of Hawaiian Affairs testified in support of the
intent of this bill with amendments.  The Hawaiian Political
Action Council of Hawaii and the Spiritual Nation of Ku testified
in opposition of this bill.  The State Attorney General, the
Employees' Retirement System, an OHA trustee, and a member of the
public submitted comments on this bill.

     Upon further consideration, your Committee has amended this
bill by deleting its substance and inserting provisions that:

     (1)  Allow retired OHA trustees to participate in the
          Employees' Retirement System as class A members,
          effective July 1, 1999;


 
 
 
 
                                 STAND. COM. REP. NO. 1384_______
                                 Page 2

 
     (2)  Tie employer contributions for the retirement benefits
          of OHA trustees to the Public Land Trust, as the Trust
          is the sole funding source for trustee salaries; and

     (3)  Allow OHA trustees to buy back prior years of service,
          starting from July 1, 1993, as class A members of the
          ERS.

     Act 165, Session Laws of Hawaii 1982, amended the definition
of "elected official" for retirement purposes, to deny membership
on a prospective basis to OHA trustees.  However, effective July
1, 1993, OHA trustees were granted annual salaries and allowed to
participate in the Health Fund.  In essence, OHA trustees were
given the same employment benefits as other state-elected
officials, except for retirement benefits.  Your Committee finds
that this bill will provide the "missing piece" for OHA trustees
by allowing them to participate in the state retirement program.

     As affirmed by the record of votes of the members of your
Committee on Labor and Public Employment that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1314, S.D. 2, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
1314, S.D. 2, H.D. 1, and be referred to the Committee on
Judiciary and Hawaiian Affairs.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Labor and Public
                                   Employment,



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair