SB 1355: RELATING TO PUBLIC EMPLOYMENT COST ITEMS.

Current Status:

Failed

(2025-12-08: Carried over to 2026 Regular Session.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Final Decking

Enacted

Version:

Appropriates funds for collective bargaining cost items for the members of bargaining unit (10) and their excluded counterparts, including the cost of salary adjustments negotiated between the State and the bargaining unit representative for fiscal biennium 2025-2027. Declares the expenditure ceiling for fiscal year 2025-2026 is exceeded. Effective 7/1/2050. (SD1)

Version:

SB1355 SD1

THE SENATE	S.B. NO.	1355
THIRTY-THIRD LEGISLATURE, 2025		S.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PUBLIC EMPLOYMENT COST ITEMS.

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

PART I

SECTION 1. There are appropriated or authorized from the sources of funding indicated below to collective bargaining statewide (BUF 102) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining unit (10):

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

Of the above amounts, the following amounts are for the department of education:

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

SECTION 2. Funds appropriated or authorized by this part shall be allotted by the director of finance to the appropriate state departments for expenditure in the respective fiscal year for the purposes of this part.

PART II

SECTION 3. There are appropriated or authorized from the sources of funding indicated below to administration (JUD 601) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining unit (10):

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

SECTION 4. Funds appropriated or authorized by this part shall be expended by the chief justice in the respective fiscal year for the purposes of this part.

PART III

SECTION 5. There are appropriated or authorized from the sources of funding indicated below to collective bargaining statewide (BUF 102) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, for state officers and employees who are excluded from collective bargaining and belong to the same compensation plans as those officers and employees within bargaining unit (10):

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

Of the above amounts, the following amounts are for the department of education:

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

SECTION 6. Funds appropriated or authorized by this part shall be allotted by the director of finance to the appropriate state departments for expenditure in the respective fiscal year for the purposes of this part.

PART IV

SECTION 7. There are appropriated or authorized from the sources of funding indicated below to administration (JUD 601) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, by the chief justice for state officers and employees who are excluded from collective bargaining and belong to the same compensation plans as those officers and employees within bargaining unit (10):

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

SECTION 8. Funds appropriated or authorized by this part shall be expended by the chief justice in the respective fiscal year for the purposes of this part.

Part V

SECTION 9. There are authorized from the source of funding indicated below to Hawaii health systems corporation – corporate office (HTH 210) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 the collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining unit (10) who is assigned to the Hawaii health systems corporation:

FY 2025-2026 FY 2026-2027

Special funds -0- -0-

SECTION 10. Funds authorized by this part shall be allotted by the director of finance to the Hawaii health systems corporation for expenditure in the respective fiscal year for the purposes of this part.

Part VI

SECTION 11. There are authorized from the source of funding indicated below to Hawaii health systems corporation – corporate office (HTH 210) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, for state officers and employees who are excluded from collective bargaining, assigned to the Hawaii health systems corporation, and belong to the same compensation plans as those officers and employees within bargaining unit (10):

FY 2025-2026 FY 2026-2027

Special funds -0- -0-

SECTION 12. Funds authorized by this part shall be allotted by the director of finance to the Hawaii health systems corporation for expenditure in the respective fiscal year for the purposes of this part.

Part VII

SECTION 13. Salary increases and cost adjustments provided in this Act for any officer or employee whose compensation is paid, in whole or in part, from federal, special, or other funds shall be paid wholly or proportionately, as the case may be, from the respective funds.

SECTION 14. Funds appropriated or authorized by this Act that are not expended or encumbered by June 30, 2026, and June 30, 2027, of the respective fiscal years, shall lapse as of those dates.

SECTION 15. In accordance with section 9 of article VII of the Constitution of the State of Hawaii and sections 37-91 and 37-93, Hawaii Revised Statutes, the legislature has determined that the state general fund expenditure ceiling for fiscal year 2025-2026 has already been exceeded by $8,551,796 or one per cent. In addition, the appropriations contained in this Act will cause the state general fund expenditure ceiling for fiscal year 2025-2026 to be further exceeded by $ , or one per cent. The reasons for exceeding the general fund expenditure ceiling are that the appropriations made in this Act are necessary to serve the public interest and to meet the needs addressed by this Act.

SECTION 16. This Act shall take effect on July 1, 2050.

Report Title:

Public Employment Cost Items; BU-10; Appropriations; Expenditure Ceiling

Description:

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

SB1355

THE SENATE	S.B. NO.	1355
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PUBLIC EMPLOYMENT COST ITEMS.

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

PART I

SECTION 1. There are appropriated from the sources of funding indicated below to collective bargaining statewide (BUF 102) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining unit (10):

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

Of the above amounts, the following amounts are for the department of education:

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

SECTION 2. Funds appropriated by this part shall be allotted by the director of finance to the appropriate state departments for expenditure in the respective fiscal year for the purposes of this part.

PART II

SECTION 3. There are appropriated from the sources of funding indicated below to administration (JUD 601) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 all collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining unit (10):

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

SECTION 4. Funds appropriated by this part shall be expended by the chief justice in the respective fiscal year for the purposes of this part.

PART III

SECTION 5. There are appropriated from the sources of funding indicated below to collective bargaining statewide (BUF 102) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, for state officers and employees who are excluded from collective bargaining and belong to the same compensation plans as those officers and employees within bargaining unit (10):

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

Of the above amounts, the following amounts are for the department of education:

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

SECTION 6. Funds appropriated by this part shall be allotted by the director of finance to the appropriate state departments for expenditure in the respective fiscal year for the purposes of this part.

PART IV

SECTION 7. There are appropriated from the sources of funding indicated below to administration (JUD 601) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, by the chief justice for state officers and employees who are excluded from collective bargaining and belong to the same compensation plans as those officers and employees within bargaining unit (10):

FY 2025-2026 FY 2026-2027

General funds -0- -0-

Special funds -0- -0-

Federal funds -0- -0-

Other funds -0- -0-

SECTION 8. Funds appropriated by this part shall be expended by the chief justice in the respective fiscal year for the purposes of this part.

Part V

SECTION 9. There are appropriated from the source of funding indicated below to Hawaii health systems corporation – corporate office (HTH 210) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 the collective bargaining cost items in the agreement negotiated with the exclusive representative of collective bargaining unit (10) who is assigned to the Hawaii health systems corporation:

FY 2025-2026 FY 2026-2027

Special funds -0- -0-

SECTION 10. Funds appropriated by this part shall be allotted by the director of finance to the Hawaii health systems corporation for expenditure in the respective fiscal year for the purposes of this part.

Part VI

SECTION 11. There are appropriated from the source of funding indicated below to Hawaii health systems corporation – corporate office (HTH 210) the following sums or so much thereof as may be necessary to fund for fiscal biennium 2025-2027 the salary increases and other cost adjustments authorized by chapter 89C, Hawaii Revised Statutes, for state officers and employees who are excluded from collective bargaining, assigned to the Hawaii health systems corporation, and belong to the same compensation plans as those officers and employees within bargaining unit (10):

FY 2025-2026 FY 2026-2027

Special funds -0- -0-

SECTION 12. Funds appropriated by this part shall be allotted by the director of finance to the Hawaii health systems corporation for expenditure in the respective fiscal year for the purposes of this part.

Part VII

SECTION 14. Funds appropriated or authorized by this Act that are not expended or encumbered by June 30, 2026, and June 30, 2027, of the respective fiscal years, shall lapse as of those dates.

SECTION 15. This Act shall take effect on July 1, 2025.

INTRODUCED BY:

_____________________________

BY REQUEST

Report Title:

Public Employment Cost Items; BU-10

Description:

Provides appropriations for collective bargaining cost items for the members of Unit (10) and their excluded counterparts, including the cost of salary adjustments negotiated between the State and the bargaining unit representative for fiscal biennium 2025-2027.

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

Date	Status
Dec 8, 2025	Carried over to 2026 Regular Session.
Feb 7, 2025	Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
Feb 7, 2025	Reported from LBT (Stand. Com. Rep. No. 113) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
Jan 31, 2025	The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in LBT were as follows: 4 Aye(s): Senator(s) Aquino, Lee, C., Ihara, Moriwaki; Aye(s) with reservations: none ; 0 No(es): none; and 1 Excused: Senator(s) Fevella.
Jan 28, 2025	The committee(s) on LBT has scheduled a public hearing on 01-31-25 3:00PM; Conference Room 224 & Videoconference.
Jan 27, 2025	Referred to LBT, WAM.
Jan 23, 2025	Introduced and passed First Reading.
Jan 21, 2025	Pending Introduction.

Date	Description	Location	Votes
Jan 31, 2025	The committee(s) on LBT recommend(s) that the measure be PASSED, WITH AMENDMENTS	Senate Standing Committee on Labor and Technology	4 0 1 Passed

Key

Pro

Against

Did Not Vote

This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.

Positions by individuals are not included.

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

Organization	Position	Date
and Hawaii Health Systems Corporation	** Support
Department of Budget and Finance	** Support
Hawaii Government Employees Association AFSCME Local 646, AFL-CIO	** Support
University of Hawaiʻi system	** Support

* Testimony in a hearing

** Position recorded in bill analysis

*** Position recorded in written testimony

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STAND. COM. REP. NO. 113

Honolulu, Hawaii

RE: S.B. No. 1355

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 1355 entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to appropriate or authorize funds for fiscal biennium 2025-2027 for collective bargaining unit cost items including salary and other cost adjustments for the members of collective bargaining unit (10) and their excluded counterparts.

Your Committee received testimony in support of this measure from the Department of Budget and Finance; University of Hawaiʻi System; Hawaii Government Employees Association AFSCME Local 646, AFL-CIO; and Hawaii Health Systems Corporation.

Your Committee finds that the negotiations for collective bargaining agreements for bargaining unit (10) are currently in progress. This measure provides a legislative vehicle that can be used if an agreement is reached or an arbitration award is issued prior to the end of the 2025 Regular Session.

Your Committee has amended this measure by:

(1) Inserting language declaring that the general fund expenditure ceiling has been exceeded;

(2) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments 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 S.B. No. 1355, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1355, 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,

________________________________

HENRY J.C. AQUINO, Chair

Date	Testimony PDF
Jan 31, 2025	SB1355_TESTIMONY_LBT_01-31-25_.PDF

Authors shown for version:
SB1355_SD1 (2/6/2025)