§303-3  Withholding.  (a)  The
department of education and the University of Hawaii may also enter into an
agreement under which the employer shall withhold from the salary of the
employee the amount of the premiums payable on account of the annuity contract,
and shall make such premium payments on behalf of the employee.  The department
of education and the University of Hawaii may contract with third parties to
administer plans to ensure compliance with the Internal Revenue Code of 1986,
as amended, state and federal laws, and for the withholding of amounts from the
salaries of their employees payable on account of annuity contracts and for
making payments on their behalf.  Costs for implementing and administering
these plans for the University of Hawaii shall be borne by the employees or
service providers maintaining annuity contracts, as determined by the
University of Hawaii.  Costs for implementing and administering these plans for
the department of education shall be borne by the insurance service providers
offering the annuity products, or the annuity entity selling or maintaining the
annuity contracts on behalf of the employees of the department of education.



(b)  The University of Hawaii and after
December 31, 2003, the department of education may also enter into an agreement
under which the employer shall withhold from the salary of the employee the
amount payable on account of the custodial account, and shall make the payments
on behalf of the employee.  The University of Hawaii and the department of
education may contract with third parties to administer plans to ensure
compliance with the Internal Revenue Code of 1986, as amended, state and
federal laws and, for the withholding of amounts from the salaries of their
employees payable on account of custodial accounts and for making payments on
their behalf.  Costs for implementing and administering the plan for the
University of Hawaii shall be borne by the employees or service providers
maintaining custodial accounts as determined by the University of Hawaii. 
Costs for implementing and administering the plan for the department of
education shall be borne by the custodial service provider offering the
custodial account product, or the custodial entity selling or maintaining the
custodial accounts on behalf of employees of the department of education. [L
1967, c 40, pt of §1; HRS §303-3; am L 1999, c 123, §2(4); am L 2001, c 186,
§2]