STAND. COM. REP. NO. 3777

Honolulu, Hawaii

RE: H.B. No. 1664

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred H.B. No. 1664, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Allow impasses and disputes relating to the amounts of state and county contributions to the Hawaii Employer-Union Health Benefits Trust Fund (EUTF) to be resolved by arbitration; and

(2) Repeal the prohibition against strikes by members or bargaining units on the issue of the amounts of state and county contributions to the EUTF.

Your Committees received testimony in support of this measure from the United Public Workers, AFSCME Local 646, AFL-CIO; University of Hawaii Professional Assembly; State of Hawaii Organization of Police Officers; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Your Committees received testimony in opposition to this measure from the Department of Budget and Finance and Office of Collective Bargaining.

Your Committees received comments on this measure from the Department of Human Resources Development.

Your Committees find that existing law governing collective bargaining lacks a dispute resolution mechanism to address the employee-employer share of monthly contributions to medical premiums for EUTF plans. While recent negotiations with employers have yielded modest cost savings for some public employees, public employees on the lower end of the pay scale continue to experience financial strain. This measure will provide public employees with a mechanism to negotiate benefits offered by EUTF to ensure that employers pay an equitable and fair percentage of medical premiums, easing the financial burden on public employees.

Your Committees have amended this measure by inserting an effective date of March 22, 2075, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1664, H.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as H.B. No. 1664, H.D. 1, S.D. 1.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair