STAND. COM. REP. NO. 1789

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1544
                                     S.D. 2
                                     H.D. 2




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1544, S.D. 2, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO THE EMPLOYEES' RETIREMENT
     SYSTEM,"

begs leave to report as follows:

     The purpose of this bill is to:

     (1)  Give existing conservation and resources law
          enforcement officers of the Department of Land and
          Natural Resources ("law enforcement officers") and
          deputy sheriffs of the Department of Public Safety
          ("deputy sheriffs") the option of converting from class
          C to class A membership of the Employees' Retirement
          System (ERS);

     (2)  Designate all law enforcement officers and deputy
          sheriffs hired after June 30, 1999, class A members of
          the ERS;

     (3)  Allow those law enforcement officers and deputy
          sheriffs who convert to class A membership to buy back
          years of credited service as class C members; and

     (4)  Allow law enforcement officers and deputy sheriffs to
          retire without penalty after 25 years of service in
          that capacity.

 
 
                                 STAND. COM. REP. NO. 1789
                                 Page 2

 
     The Department of Land and Natural Resources, the Hawaii
Government Employees Association, and several individuals
submitted testimony in support of this measure.

     Your Committee has amended this bill by:

     (1)  Removing the provision allowing law enforcement
          officers and deputy sheriffs to buy back credited
          service; and

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

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1544, S.D. 2, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1544,
S.D. 2, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair