STAND. COM. REP. NO. 278-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1655

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Labor, to which was referred H.B. No. 1655 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYMENT,"

begs leave to report as follows:

The purpose of this measure is to allow public employers and the exclusive representatives of bargaining units to negotiate certain retirement benefits.

Your Committee received testimony in support of this measure from the Hawaiʻi State Teachers Association; University of Hawaii Professional Assembly; United Public Workers, AFSCME Local 646, AFL-CIO; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO. Your Committee received testimony in opposition to this measure from the Department of Budget and Finance; Office of Collective Bargaining; and Employees' Retirement System.

Your Committee finds that existing law requires the exclusion of retirement benefits from collective bargaining, which limits the ability of public employers and employees to address evolving workforce needs and financial realities. Public workers are increasingly seeking flexibility and clarity regarding retirement related provisions as part of their overall compensation structure, and employers likewise benefit from having negotiated terms that align with recruitment and retention goals. This measure enables both parties to engage in discussions over allowable retirement benefits, supporting a more balanced and responsive collective bargaining process.

Your Committee has amended this measure by changing the effective date to July 1, 3000, to encourage further discussion.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1655, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1655, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

JACKSON D. SAYAMA, Chair