STAND. COM. REP. NO. 3211

Honolulu, Hawaii

RE: H.B. No. 2271

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred H.B. No. 2271, H.D. 2, entitled:

"A BILL FOR AN ACT MAKING EMERGENCY APPROPRIATIONS FOR PUBLIC EMPLOYMENT COST ITEMS,"

begs leave to report as follows:

The purpose and intent of this measure is to make emergency appropriations for collective bargaining cost items for the members of Bargaining Units (1) and (10) and their excluded counterparts to resolve issues related to temporary hazard pay for fiscal year 2025-2026.

Your Committee received testimony in support of this measure from the Department of Corrections and Rehabilitation; Department of Land and Natural Resources; Department of Budget and Finance; Hawaii Public Housing Authority; Office of Youth Services; Department of Accounting and General Services; Department of Transportation; Department of Health; Department of Agriculture and Biosecurity; University of Hawaiʻi System; and United Public Workers, AFSCME Local 646, AFL-CIO.

Your Committee finds that arbitration awards and settlements for COVID-19–related temporary hazard pay have created unbudgeted obligations for the University of Hawaii, Department of Education, and other executive branch departments. According to testimony, some departments have already disbursed significant payments or are required to do so imminently, pursuant to binding arbitration decisions and collective bargaining agreements. However, prior appropriations were insufficient to cover these obligations, and in some cases, departments have utilized base operating funds, resulting in cash shortfalls and risks to payroll continuity and operations. This measure provides emergency appropriations to cover remaining liabilities, reimburse prior payments, and ensure that the State meets its legal obligations while maintaining financial stability and essential services.

Your Committee notes the concerns raised in testimony by United Public Workers, AFSCME Local 646, AFL-CIO, that the H.D. 2 version of this measure deleted language referencing the negotiated settlement for the Department of Education, thereby omitting funding necessary to fulfill the Department's obligations under the settlement agreement. Therefore, amendments to this measure are necessary to address this matter.

Accordingly, your Committee has amended this measure by:

(1) Restoring language specifying that the amounts appropriated or authorized include funds for the negotiated settlement for the Department of Education;

(2) Changing the amounts appropriated and authorized to encourage further discussion on the measure as follows:

(A) The amount appropriated from the general fund from $66,795,019 to an unspecified amount;

(B) The amount authorized as interdepartmental transfers from $306,532 to an unspecified amount; and

(C) The amount authorized from revolving funds from $203,736 to an unspecified amount;

(3) Inserting an effective date of January 1, 2077, to encourage further discussion; and

(4) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2271, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2271, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

________________________________

BRANDON J.C. ELEFANTE, Chair