HB 1655: Collective Bargaining; Scope of Negotiations; Exclusions; Retirement Benefits

A BILL FOR AN ACT

RELATING TO PUBLIC EMPLOYMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 89-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  Excluded from the subjects of negotiations are matters of classification, reclassification, benefits of but not contributions to the Hawaii employer-union health benefits trust fund, recruitment, examination, and initial pricing[, and retirement benefits except as provided in section 88-8(h)].  The employer and the exclusive representative shall not agree to any proposal that would be inconsistent with the merit principle or the principle of equal pay for equal work pursuant to section 76-1 or that would interfere with the rights and obligations of a public employer to:

     (1)  Direct employees;

     (2)  Determine qualifications, standards for work, and the nature and contents of examinations;

     (3)  Hire, promote, transfer, assign, and retain employees in positions;

     (4)  Suspend, demote, discharge, or take other disciplinary action against employees for proper cause;

     (5)  Relieve an employee from duties because of lack of work or other legitimate reason;

     (6)  Maintain efficiency and productivity, including maximizing the use of advanced technology, in government operations;

     (7)  Determine methods, means, and personnel by which the employer's operations are to be conducted; and

     (8)  Take actions as may be necessary to carry out the missions of the employer in cases of emergencies.

     This subsection shall not be used to invalidate provisions of collective bargaining agreements in effect on and after June 30, 2007, and except as otherwise provided in this chapter, shall not preclude negotiations over the implementation of management decisions that affect terms and conditions of employment that are subject to collective bargaining.  Further, this subsection shall not preclude negotiations over the procedures and criteria on promotions, transfers, assignments, demotions, layoffs, suspensions, terminations, discharges, or other disciplinary actions as subjects of bargaining during collective bargaining negotiations or negotiations over a memorandum of agreement, memorandum of understanding, or other supplemental agreement; provided that [such] this obligation shall not compel either party to agree to a proposal or make a concession.

     Violations of the procedures and criteria [so] negotiated may be subject to the grievance procedure in the collective bargaining agreement."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 3000.

Report Title:

Collective Bargaining; Scope of Negotiations; Exclusions; Retirement Benefits

Description:

Allows public employers and exclusive representatives of bargaining units to negotiate certain retirement benefits.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

relating to public employment.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 89-9, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  Excluded from the subjects of negotiations are matters of classification, reclassification, benefits of but not contributions to the Hawaii employer-union health benefits trust fund, recruitment, examination, and initial pricing[, and retirement benefits except as provided in section 88-8(h)].  The employer and the exclusive representative shall not agree to any proposal that would be inconsistent with the merit principle or the principle of equal pay for equal work pursuant to section 76-1 or that would interfere with the rights and obligations of a public employer to:

     (1)  Direct employees;

     (2)  Determine qualifications, standards for work, and the nature and contents of examinations;

     (3)  Hire, promote, transfer, assign, and retain employees in positions;

     (4)  Suspend, demote, discharge, or take other disciplinary action against employees for proper cause;

     (5)  Relieve an employee from duties because of lack of work or other legitimate reason;

     (6)  Maintain efficiency and productivity, including maximizing the use of advanced technology, in government operations;

     (7)  Determine methods, means, and personnel by which the employer's operations are to be conducted; and

     (8)  Take actions as may be necessary to carry out the missions of the employer in cases of emergencies.

     This subsection shall not be used to invalidate provisions of collective bargaining agreements in effect on and after June 30, 2007, and except as otherwise provided in this chapter, shall not preclude negotiations over the implementation of management decisions that affect terms and conditions of employment that are subject to collective bargaining.  Further, this subsection shall not preclude negotiations over the procedures and criteria on promotions, transfers, assignments, demotions, layoffs, suspensions, terminations, discharges, or other disciplinary actions as subjects of bargaining during collective bargaining negotiations or negotiations over a memorandum of agreement, memorandum of understanding, or other supplemental agreement; provided that [such] this obligation shall not compel either party to agree to a proposal or make a concession.

     Violations of the procedures and criteria [so] negotiated may be subject to the grievance procedure in the collective bargaining agreement."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on July 1, 2026.

Report Title:

Collective Bargaining; Scope of Negotiations; Exclusions; Retirement Benefits

Description:

Allows public employers and exclusive representatives of bargaining units to negotiate certain retirement benefits.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  996-26

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 Finance, to which was referred H.B. No. 1655, H.D. 1, 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 Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Hawaiʻi State Teachers Association; University of Hawaii Professional Assembly; and United Public Workers, AFSCME Local 646, AFL-CIO.  Your Committee received testimony in opposition to this measure from the Department of Budget and Finance; Office of Collective Bargaining; and Board of Trustees of the Employees' Retirement System.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1655, H.D. 1, and recommends that it pass Third Reading.

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

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,