STAND. COM. REP. NO. 3665

Honolulu, Hawaii

RE: H.B. No. 1658

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 Committee on Ways and Means, to which was referred H.B. No. 1658, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO COLLECTIVE BARGAINING,"

begs leave to report as follows:

The purpose and intent of this measure is to amend collective bargaining negotiation procedures.

Specifically, this measure temporarily:

(1) Establishes a process for selecting an arbitrator if there is an impasse on the repricing of classes within an applicable bargaining unit, and specifies the arbitration procedure to be followed; and

(2) Repeals the existing procedure for addressing an impasse on the repricing of classes.

Your Committee received written comments in support of this measure from the Hawaii State Teachers Association, United Public Workers, and Hawaii Government Employees Association.

Your Committee received written comments in opposition to this measure from the Department of Human Resources Development and Department of Human Resources of the City and County of Honolulu.

Your Committee finds that the current impasse process for the repricing of collective bargaining classes is complex and lengthy, sometimes taking years to resolve. This measure provides streamlined procedures with strict deadlines that can help to establish fair compensation amounts for bargaining unit members in a timely manner.

Your Committee recognizes concerns and recommendations expressed in written comments by the Department of Human Resources Development, including recommendations that, should this measure move forward, the measure be amended to:

(1) Ensure an objective, consistent system of pricing and repricing classes of work;

(2) Recognize the clear distinction between matters that are subject to negotiation and those that are explicitly excluded from subjects of negotiations;

(3) Use a well-established existing statutory process in the Merit Appeals Board;

(4) Include an appropriation for additional positions;

(5) Amend section 76-14(a)(3), Hawaii Revised Statutes, to include the repricing of classes;

(6) Amend section 89-9(f), Hawaii Revised Statutes, to increase the various time periods; and

(7) Amend section 89-11(b), Hawaii Revised Statutes, to repeal the provision regarding an employee's failure to timely initiate a negotiation on the repricing of classes.

Your Committee has amended this measure by changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1658, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1658, H.D. 1, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair