STAND. COM. REP. NO. 658

                                   Honolulu, Hawaii
                                                     , 1999

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




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

Sir:

     Your Committee on Ways and Means, 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 authorize the University of
Hawaii and the Department of Education to establish custodial
accounts for their employees.

     Furthermore, this measure authorizes the University of
Hawaii and the Department of Education to make periodic salary
withholdings for deposit into those accounts.  This measure also
immunizes the university, the department, and the State from
investment liability.

     Your Committee finds that this bill strikes a proper balance
between protecting the integrity of state financial resources and
creating financially attractive employment packages for employees
of the University of Hawaii and the Department of Education.

     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.
951, S.D. 1, and recommends that it pass Third Reading.


 
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                                   STAND. COM. REP. NO. 658
                                   Page 2


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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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