STAND. COM. REP. NO.  642

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 1365

 

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Sir:

 

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 1365 entitled:

 

"A BILL FOR AN ACT RELATING TO THE STATE OF HAWAII DEFERRED COMPENSATION PLANS,"

 

begs leave to report as follows:

 

     The purpose of this bill is to clarify that the Board of Trustees of the State Deferred Compensation Plan (Compensation Plan) and State Deferred Compensation Retirement Plan (Retirement Plan) for part-time, temporary, and seasonal or casual employees may select and offer participants, investment products that are commonly offered in the securities industry or other deferred compensation plans that are determined to be reasonable and prudent investment products.

 

     The Department of Human Resources Development, Board of Trustees for both the Compensation Plan and Retirement Plan (Boards) for part-time, temporary, and seasonal or casual employees, and Office of Hawaiian Affairs testified in support of this bill. 

 

     The securities industry is a dynamic industry that is constantly changing and offering new types of investment products to the public.  Allowing the Boards to select and offer investment products that are prudent and reasonable investments and that keep pace with current securities industry practice is a good means of adapting quickly to an ever-changing economic environment.

 

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1365 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

 

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

 

 

 

 

____________________________

ALEX M. SONSON, Chair