STAND. COM. REP. NO. 1307

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 951
                                     S.D. 1
                                     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. 951, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO EMPLOYEE BENEFIT PLANS,"

begs leave to report as follows:

     The purpose of this bill is to: 

     (1)  Authorize the University of Hawaii (UH) and the
          Department of Education (DOE) to establish custodial
          accounts for their employees;

     (2)  Authorize UH and the DOE to make periodic salary
          withholdings for deposit into those accounts; and

     (3)  Immunize UH, DOE, and the State from investment
          liability.

     The DOE, UH, the Hawaii State Association of Life
Underwriters, the Hawaii State Teachers Association, and the
University of Hawaii Professional Assembly testified in support
of this measure.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to January 1, 2001; and


 
 
 
                                 STAND. COM. REP. NO. 1307
                                 Page 2

 
     (2)  Making technical, nonsubstantive amendments for
          purposes of style and clarity.

     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. 951, S.D. 1, as amended herein, and recommends that
it pass Second Reading in the form attached hereto as S.B. No.
951, S.D. 1, H.D. 1, and be referred to the Committees on Higher
Education and Education.

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



                                   ______________________________
                                   TERRY NUI YOSHINAGA, Chair