CONFERENCE COMMITTEE REPORT NO.191

                            Honolulu, Hawaii
                                            , 1999

                            RE:   H.B. No. 499
                                  H.D. 2
                                  S.D. 2
                                  C.D. 1




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

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
House of Representatives to the amendments proposed by the Senate
in H.B. No. 499, H.D. 2, S.D. 2, entitled:

    "A BILL FOR AN ACT RELATING TO 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 bill is to amend provisions of the
Employees' Retirement System (ERS) law by:

     (1) Allowing a conservation and resources law enforcement
         (DOCARE) officer to retire without penalty after twenty-
         five years of service;

     (2) Allowing the trustees of the Office of Hawaiian Affairs
         (OHA) to become class A contributory members of ERS,
         including certain qualified former trustees; and


 
 
                            CONFERENCE COMMITTEE REPORT NO.191
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     (3) Conditioning the provision of health fund benefits to
         the retired former trustees of OHA on OHA's
         reimbursement to the State for the employer's health
         fund contributions for such trustees.

     Your Committee on Conference has amended this bill by:

     (1) Deleting the provisions regarding OHA and the OHA
         trustees;

     (2) Authorizing DOCARE officers to convert to class A
         membership in ERS upon filing an election form with the
         ERS Board of Trustees;

     (3) Designating as class C members, DOCARE officers who do
         not elect to become class A members;

     (4) Allowing DOCARE officers to receive reduced retirement
         benefits after ten years of credited service; and

     (5) Designating all DOCARE officers hired after June 30,
         1999, as class A members of ERS.

     Your Committee on Conference is in accord with the intent
and purpose of H.B. No. 499, H.D. 2, S.D. 2, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as H.B. No. 499, H.D. 2, S.D. 2, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
           SENATE                              HOUSE
                                   
                                   
                                   
______________________________     ______________________________
BRIAN KANNO, Co-Chair              TERRY NUI YOSHINAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
BRIAN T. TANIGUCHI, Co-Chair       PAUL T. OSHIRO, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
COLLEEN HANABUSA, Co-Chair         DWIGHT Y. TAKAMINE, Co-Chair

 
                            CONFERENCE COMMITTEE REPORT NO.191
                            Page 3



                                   
                                   
                                   
______________________________     ______________________________
CAROL FUKUNAGA, Co-Chair           IRIS IKEDA CATALANI, Member
                                   
                                   
                                   
______________________________     ______________________________
ANDREW LEVIN, Co-Chair             KENNY GOODENOW, Member
                                   
                                   
                                   
______________________________     ______________________________
BOB NAKATA, Member                 MARK MOSES, Member



______________________________
WHITNEY ANDERSON, Member