STAND. COM. REP. NO. 273-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2271

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. 2271 entitled:

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

begs leave to report as follows:

The purpose of this measure is to make emergency appropriations for collective bargaining cost items associated with grievances filed under agreements negotiated for the members of bargaining units 1 and 10, and their excluded counterparts to resolve issues concerning 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 Health; Department of Budget and Finance; Department of Law Enforcement; Department of Land and Natural Resources; Department of Accounting and General Services; Department of Agriculture and Biosecurity; Department of Education; Hawaiʻi State Public Library System; Hawaii Public Housing Authority; University of Hawaiʻi System; and United Public Workers, AFSCME Local 646, AFL-CIO.

Your Committee finds that unresolved temporary hazard pay obligations arising from collective bargaining agreements and arbitration awards have created funding gaps for the Department of Education, University of Hawaii, and various executive branch departments. These unpaid obligations stem from COVID‑19–related work conditions and are not included in current departmental operating budgets, leaving agencies without sufficient resources to meet compensation requirements. This measure provides the remaining necessary appropriations to fulfill negotiated settlements and arbitration awards so that the State can meet its obligations and maintain stable and effective government operations.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

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. 2271, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2271, 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