SB 2117: EUTF; Collective Bargaining; Contributions; Disputes; Impasses; Arbitration

A BILL FOR AN ACT

RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

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

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

     "(e)  Negotiations relating to contributions to the Hawaii employer-union health benefits trust fund shall be for the purpose of agreeing upon the amounts [which] that the State and counties shall contribute under section 87A-32, toward the payment of the costs for a health benefits plan, as defined in section 87A-1, and group life insurance benefits, and the parties shall not be bound by the amounts contributed under prior agreements[; provided that section 89-11 for the resolution of disputes by way of arbitration shall not be available to resolve impasses or disputes relating to the amounts the State and counties shall contribute to the Hawaii employer-union health benefits trust fund]."

     SECTION 2.  Section 89-11, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  The decision of the arbitration panel shall be final and binding upon the parties on all provisions submitted to the arbitration panel.  [If the parties have reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund by the tenth working day after the arbitration panel issues its decision, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions agreed to by the parties.  If the parties have not reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund by the close of business on the tenth working day after the arbitration panel issues its decision, the parties shall have five days to submit their respective recommendations for such contributions to the legislature, if it is in session, and if the legislature is not in session, the parties shall submit their respective recommendations for such contributions to the legislature during the next session of the legislature.  In such event, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions established by the legislature by enactment, after the legislature has considered the recommendations for such contributions by the parties.  It is strictly understood that no member of a bargaining unit subject to this subsection shall be allowed to participate in a strike on the issue of the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund.]  The parties shall take whatever action is necessary to carry out and effectuate the final and binding agreement.  The parties may, at any time and by mutual agreement, amend or modify the panel's decision.

     Agreements reached pursuant to the decision of an arbitration panel and the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund[, as provided herein,] shall not be subject to ratification by the employees concerned.  All items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies and the employer shall submit all [such] applicable items within ten days after the date [on which] the agreement is entered into [as provided herein], to the appropriate legislative bodies."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 3000.

Report Title:

EUTF; Collective Bargaining; Contributions; Disputes; Impasses; Arbitration

Description:

Allows impasses and disputes relating to the amounts of State and county contributions to the Hawaii Employer-Union Health Benefits Trust Fund to be resolved by arbitration.  Repeals the prohibition against strikes by members of bargaining units on the issue of the amounts of State and county contributions to the Trust Fund.  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 THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

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

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

     "(e)  Negotiations relating to contributions to the Hawaii employer-union health benefits trust fund shall be for the purpose of agreeing upon the amounts [which] that the State and counties shall contribute under section 87A-32, toward the payment of the costs for a health benefits plan, as defined in section 87A-1, and group life insurance benefits, and the parties shall not be bound by the amounts contributed under prior agreements[; provided that section 89-11 for the resolution of disputes by way of arbitration shall not be available to resolve impasses or disputes relating to the amounts the State and counties shall contribute to the Hawaii employer-union health benefits trust fund]."

     SECTION 2.  Section 89-11, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  The decision of the arbitration panel shall be final and binding upon the parties on all provisions submitted to the arbitration panel.  [If the parties have reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund by the tenth working day after the arbitration panel issues its decision, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions agreed to by the parties.  If the parties have not reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund by the close of business on the tenth working day after the arbitration panel issues its decision, the parties shall have five days to submit their respective recommendations for such contributions to the legislature, if it is in session, and if the legislature is not in session, the parties shall submit their respective recommendations for such contributions to the legislature during the next session of the legislature.  In such event, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions established by the legislature by enactment, after the legislature has considered the recommendations for such contributions by the parties.  It is strictly understood that no member of a bargaining unit subject to this subsection shall be allowed to participate in a strike on the issue of the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund.]  The parties shall take whatever action is necessary to carry out and effectuate the final and binding agreement.  The parties may, at any time and by mutual agreement, amend or modify the panel's decision.

     Agreements reached pursuant to the decision of an arbitration panel and the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund[, as provided herein,] shall not be subject to ratification by the employees concerned.  All items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies and the employer shall submit all [such] applicable items within ten days after the date [on which] the agreement is entered into [as provided herein], to the appropriate legislative bodies."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on January 1, 2077.

Report Title:

EUTF; Collective Bargaining; Contributions; Disputes; Impasses; Arbitration

Description:

Allows impasses and disputes relating to the amounts of State and county contributions to the Hawaii Employer-Union Health Benefits Trust Fund to be resolved by arbitration.  Repeals the prohibition against strikes by members of bargaining units on the issue of the amounts of State and county contributions to the Trust Fund.  Effective 1/1/2077.  (SD1)

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 THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

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

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

     "(e)  Negotiations relating to contributions to the Hawaii employer-union health benefits trust fund shall be for the purpose of agreeing upon the amounts [which] that the State and counties shall contribute under section 87A-32, toward the payment of the costs for a health benefits plan, as defined in section 87A-1, and group life insurance benefits, and the parties shall not be bound by the amounts contributed under prior agreements[; provided that section 89-11 for the resolution of disputes by way of arbitration shall not be available to resolve impasses or disputes relating to the amounts the State and counties shall contribute to the Hawaii employer-union health benefits trust fund]."

     SECTION 2.  Section 89-11, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  The decision of the arbitration panel shall be final and binding upon the parties on all provisions submitted to the arbitration panel.  [If the parties have reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund by the tenth working day after the arbitration panel issues its decision, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions agreed to by the parties.  If the parties have not reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund by the close of business on the tenth working day after the arbitration panel issues its decision, the parties shall have five days to submit their respective recommendations for such contributions to the legislature, if it is in session, and if the legislature is not in session, the parties shall submit their respective recommendations for such contributions to the legislature during the next session of the legislature.  In such event, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions established by the legislature by enactment, after the legislature has considered the recommendations for such contributions by the parties.  It is strictly understood that no member of a bargaining unit subject to this subsection shall be allowed to participate in a strike on the issue of the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund.]  The parties shall take whatever action is necessary to carry out and effectuate the final and binding agreement.  The parties may, at any time and by mutual agreement, amend or modify the panel's decision.

     Agreements reached pursuant to the decision of an arbitration panel and the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund[, as provided herein,] shall not be subject to ratification by the employees concerned.  All items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies and the employer shall submit all [such] applicable items within ten days after the date [on which] the agreement is entered into [as provided herein,] to the appropriate legislative bodies."

     SECTION 3.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2026.

Report Title:

EUTF; Collective Bargaining; Contributions; Disputes; Impasses; Arbitration

Description:

Allows impasses and disputes relating to the amounts of State and county contributions to the Hawaii Employer-Union Health Benefits Trust Fund to be resolved by arbitration.  Repeals the prohibition against strikes by members of bargaining units on the issue of the amounts of State and county contributions to the Trust Fund. 

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. 3034

Honolulu, Hawaii

RE:     S.B. No. 2117

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 2117, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Allow impasses and disputes relating to the amounts of state and county contributions to the Hawaii Employer‑Union Health Benefits Trust Fund to be resolved by arbitration; and

     (2)  Repeal the prohibition against strikes by members of bargaining units on the issue of the amounts of state and county contributions to the Trust Fund.

     Your Committees received testimony in support of this measure from the University of Hawaii Professional Assembly; Hawaiʻi State Teachers Association; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and United Public Workers, AFSCME Local 646, AFL-CIO.

     Your Committees received testimony in opposition to this measure from the Department of Budget and Finance, Office of Collective Bargaining, and County of Maui.

     Your Committees received comments on this measure from the Department of Human Resources Development.

Your Committees find that health care contributions are uniquely excluded from the bargaining process, leaving public employees in a vulnerable position when negotiations stall.  Furthermore, existing law prohibits strikes specifically related to contributions to the Hawaii Employer-Union Health Benefits Trust Fund, withholding a fundamental tool in the bargaining process from public employees.  Consequently, negotiations during the bargaining process are imbalanced to the detriment of public employees.  This measure will allow an impartial arbitration panel to resolve disputes involving health care contributions and restore vital leverage to public employees, ensuring a fairer path toward a final agreement.

     As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2117, S.D. 1, and recommend that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

STAND. COM. REP. NO. 2119

Honolulu, Hawaii

RE:     S.B. No. 2117

        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 Labor and Technology, to which was referred S.B. No. 2117 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Allow impasses and disputes relating to the amounts of State and county contributions to the Hawaii Employer‑Union Health Benefits Trust Fund to be resolved by arbitration; and

     (2)  Repeal the prohibition against strikes by members of bargaining units on the issue of the amounts of state and county contributions to the Trust Fund.  

     Your Committee received testimony in support of this measure from the Hawaiʻi State Teachers Association; University of Hawaii Professional Assembly; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; 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, Office of the Mayor of the County of Maui, and Libertarian Party of Hawaii.

     Your Committee received comments on this measure from the Department of Human Resources Development.

     Your Committee finds that the Hawaii Employer-Union Health Benefits Trust Fund plays a critical role in providing health care benefits to public employees and their dependents, and that contributions by public employers to the Trust Fund on behalf of their employees are an important component of a public employee's compensation package.  Your Committee finds, however, that under existing law, collective bargaining disputes over these contribution amounts are excluded from final and binding arbitration and instead are subject to a separate process that allows the parties to submit recommendations to the Legislature for final determination, while also prohibiting strikes over those contribution amounts.  This bifurcated dispute-resolution framework limits the effectiveness of binding arbitration and can delay final resolution of collective bargaining impasses.  Accordingly, this measure will allow impasses over contribution amounts to be resolved through the same binding arbitration process applicable to other negotiable terms, thereby promoting timely resolution of disputes, strengthening the collective bargaining process, and providing greater predictability for both public employers and employees.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of January 1, 2077, to encourage further discussion; and

     (2)  Making a technical, nonsubstantive amendment 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. 2117, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2117, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

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