House Standing Committee on Labor

Good morning everyone. Today is Thursday, February 6th, 2025, 9:00am. We're in Conference Room 309. We're calling the House Committee on Labor to order. First on the agenda we have HB 158 relating to unemployment benefits. First to testify on this measure we have Jade Butay, Director for DLIR with comments.

Good morning Chair Sayama, Vice Chair Lee. I'm Jade Butayi, Director of the Department of Labor and Industrial Relations. We stand on our submitted written testimony offering comments. You know, we have a responsibility to be fair to both employers and employees.

So maintaining the current statutory framework is essential to preserving both the financial health of the Unemployment Compensation Trust Fund and the balance between employer and employee interest. Thank you for the opportunity to testify.

Thank you. Next we have Mike Iosa, State Director for the National Federation of Independent Businesses in opposition.

Thank you Chair. Vice Chair. Mike Iosua on behalf of NFIB. We'll stand on our written testimony in opposition. Thanks.

Thank you. Next we have Kamakana Kaimuloa, UPW in support.

Good morning Chair. Vice Chair. Kamakana Kaimuloa, United Public Workers. You have a written testimony and strong support. Happy to answer any questions you may have. Thank you.

Thank you. Next we have Christian Fern, Executive Director for University of Hawaii Professional Assembly and its support.

Good morning Chair. Vice Chair Sarah Beamer for UHPA. We stand on our written testimony and strong support. Thank you.

Thank you. Next we have Randy Pereira, President for Hawaii State AFL-CIO in support.

Morning Chair. Vice Chair. My name is Chris Burnett on behalf of the Hawaii State AFL-CIO. We stand on our written testimony and strong support. I also just want to offer we we are in receipt of the testimony provided by the department.

We have a potential solution that we are we want to attempt to address with the department that may satisfy their concerns. If you allow us time we will work with them and hopefully we can we can address their concerns. And that's all the written testimony I have. Thank you.

Okay, thank you. Next we have Osa Tui, President for HSTA in support. Not here. Okay, we'll move on to Michael Golojuch Jr., President for Pride at Work Hawaii in support on Zoom.

Good morning. Michael Golojuch Jr. President for Pride at Work. He/him pronouns. We want to thank you for hearing this bill.

We do want to you have a written testimony but we do want to point out that the fact that unions go on strike as a last ditch effort when all everything else fails and we need the our workers need the unemployment insurance to help cover them during this time period when they've been unable.

To get a fair contract from their employer. So we encourage you to pass this as fair and it's allowing unions to do their constitutionally allowed striking. So mahalo.

Thank you. Next we have Tui Ana Scanlan, Chair for the Democratic Party of Hawaii Labor Caucus in support on Zoom. Are they here? Okay, moving on. We have Randy Perreira, Executive Director for HGA in support.

Good morning Chair. Vice Chair Nui Sebast here with HGA. We'll send our written testimony in support of this measure. Mahalo.

Thank you. Next we have Irish Barber, business representative from IATSE 665 in support. Not here. Any other persons here to testify on this measure? Okay, Seeing none. Members, we do have written testimony and support from the Hawaii Nurses Association. SHRM Hawaii opposition. Unite Here local five in support.

IBEW local 1357 in support. Hawaii Children's Action Network speaks in support and four individuals in support. Members, are there any questions? Actually, I do have a question for Director Butai. So I'm just trying to understand your concern with regards to the financial impact of this measure.

What, what do you estimate the impact to the trust fund would be?

Chair? You know, like Khaleesi in the Game of Thrones, I brought some of my. My dragons with me. So let me ask. All right. Anne Perreira-Eustaquio, our administrator for UI.

Good morning. Chair Sayama, Vice Chair Lee, Members of the Committee. Anne Perreira-Eustaquio, Unemployment Insurance Administrator. In regards to the Unemployment Insurance Trust Fund, chair, the trust fund would be impacted only if the employer did not pay their fair share in regards to reimbursement of the fund and it would determine on their experience rate.

So the individuals that are would be eligible for Unemployment Insurance would draw against the employer account. The employer the next following year would then be assessed a rate determinant on their experience.

If that fund drops drastically for any reason, strike or non, depending on the economy, that rate per employee would be determinant on the schedule in effect for that year. So it's really hard to give you a number.

Okay. No, I guess what I'm trying to understand is do you think that drop will be significant? Right. You said if there was a significant drop that would affect the fund.

That's correct.

Right.

It would depend on who the employer is.

Okay. No, thank you. Thank you for that clarification.

Thank you.

Okay, Members, any further questions? Okay, seeing none, we'll be moving on to the next item in the agenda. HB202 relating to the adequate Reserve Fund. First, to testify on this measure, we have Jade Butay Director for DLIR in support.

Aloha Chair Vice Chair and Representative Reyes Oda we stand on our testimony in support and requesting amendments. After what we've been through with the pandemic and then the wildfires, we have to be mindful of the solvency of the unemployment Compensation Trust Fund because nobody knows what the future holds, including us.

We tried to look around the corner at what could go wrong, but we would be naive to think that nothing won't. Thank you for the opportunity to testify.

Thank you.

Next we have the Tax Foundation of Hawaii with comments on Zoom.

Morning Chair, Vice Chair, Members of the Committee Tom Yamachika from Tax foundation of Hawaii. What I would like the Committee to understand is that the UI system is supposed to be self correcting.

The employers whose employees draw on the Fund will find that their rates for contributions into the Fund go up and if the overall Fund balance goes down then all rates go up. That's kind of how the system works.

The Bill proposes to alter the system by redefining adequate Reserve Fund which is one of the pieces in the puzzle for five years or so which would result in, as you know, and I've...

Put some examples in my testimony, it would result in the rates for all employers being artificially raised for either one schedule or two schedules for the five years in which the bill's in effect. And I'm not sure why. I'd be happy to answer any questions. Thank you very much.

Thank you. Any persons here to testify on this measure? Seeing none Members, any questions? Actually I do have a question for I guess Ann Eustaquio. So my question is regards to I guess the intent of the measure. Right.

My understanding is that this Bill intends to adjust the UI tax schedule back to pre pandemic levels because I think we had made that adjustment I believe when I first got into office actually in 2020, 2021 to basically react to the pandemic and unemployment that resulted from it.

So can you kind of clarify, I guess the intent here?

Yes. So what was stated earlier is correct. The formula is self correcting. That's what it does. When unemployment is high and money is drawn from the reserves, the schedule reflects that and the schedule increases so we can collect additional contributions from employers to bring the adequacy back to appropriate levels.

What happened in 2007 there was a Bill that was passed that dropped the adequacy amount from 1.5% to 1% of the highest unemployment in the last 10 years. That's what the benefit cost ratio would be calculated at.

We want to bring that back up to the level of 1.5% so that we can get back to adequacy for the integrity of the Fund.

And so back when we first put in this calculation, which self corrects the trust Fund amount, it was determined that 1.5% would be what would allow us to continue to operate efficiently if there was a downturn in the economy, such as a pandemic. And we did see during the pandemic that the trust Fund was greatly impacted.

We borrowed $700 million from USDOL just to survive the pandemic. To get through that process. If we hadn't changed the adequate Reserve and the benefit cost ratio calculations to 1% from the 1.5%, we would have fared the pandemic way better than we had. And so that's what we're trying to do.

We're trying to bring the adequacy back up to 1.5%.

Thank you for that clarification. No further questions. Members, any other questions? Okay. Seeing none, we'll be moving on to HB162 relating to collective bargaining. First, to testify on this measure we have Dwight Takamine, Interim Chairperson for the Hawaii Labor Relations Board with comments.

Good morning, Chair Sayama, Vice Chair, the Representative Reyes Oda, I'm Board Member Stacey Moniz up presenting for Interim Chair Takamine. We stand on our written comments that we submitted and I'm available to answer any questions. Thank you.

Thank you. Next we have Kamakana Kaimuloa, UPW in support.

Chair, Vice Chair Rep. Reyes Oda. Again, Kamakana Kaimuloa, UPW. You have a written testimony and strong support. I'd be happy to answer any questions you may have. Thank you. Thank you.

Next we have Randy Perreira, Executive Director for HGA, in support.

Hello, Chair, Vice Chair, Representative Reyes Oda. We'll send out written testimony in strong support of this measure. I do want to emphasize that this measure really looks to just expand the pool of qualified interest arbitrators. Mahalo.

Thank you. Any further testimony on this measure here or on Zoom? Seeing none. Members, we do have written testimony and support from Hawaii State AFL-CIO Members. Any questions? Seeing none, we'll be moving on to HB 165 relating to Hawaii Labor Relations Board.

First to testify on this measure, we have Dwight Takamine, Interim chairperson from the Hawaii Labor Relations Board, in support.

Good morning, Chair Sayama, Vice Chair Lee, Representative Reyes Oda. I'm board Member Stacey Moniz presenting for interim Chair Takamine. We stand on our written testimony and I do want to add that just as by way of background that for six years prior to getting onto the board, I represented HGA before matters on the board.

And frankly I filed about 80% of the cases that were lodged there. And in the year and a half that I've been on the board, not a single time has the board has to go to the circuit court to enforce an order.

So this Bill is just to clarify what's already there with some particularity to show that the board can enforce its own orders as a quasi judicial body. So. And I'll be available to answer any questions. Thank you.

Thank you. Next we have Ann Lopez, Attorney General from Department of Attorney General in opposition on zoom. Oh, in person.

Thank you. Chair, Vice Chair, Members of the Committee. I'm not Anne Lopez. My name is Deputy Attorney General Gavin, Attorney General Gavin Tom, appearing on behalf of the Office of the Attorney General, and we oppose this Bill and ask it be beheld.

Currently, Hawaii Rights Statute 377.9e recognizes the judicial courts as the appropriate venue to seek enforcement of administrative orders. This is even for boards that head departments. This is similarly presented in other statutes and related statutes in 377.

The current language of the statute provides procedures where any party, including the Hawaii Labor Relations Board, may seek appropriate relief while safeguarding those parties constitutional rights with judicial procedures and due process. This is a proper venue for enforcement. The Department opposes this Bill and respectfully asks it be held. Thank you for the opportunity to present this testimony.

I'm available to answer or relay any questions that the Committee may have.

Thank you. Are there any other persons here to testify on this measure? Members, any questions? Okay. I have a question for HLRB. So based on your testimony, right, you guys have never had to go to circuit court for any kind of hearing. You guys, what. What mechanism do you guys use?

We enforce our own orders because under the statute, the party adversely affected by one of our orders as the right to judicial review, meaning they can appeal to circuit court and that's the proper place to have the review. Under 377. 9. It's May. The word may is used.

So it's discretionary whether you want to go to circuit court or not. We can issue fines, we can issue civil penalties. We can disbar practitioners from before the board. If you read this literally, the Attorney General's position, every single order that the board would issue would be subject to one party refusing to abide by it.

We would have to shut down the case, go to circuit court to have the matter heard, then have the case remanded back to the board, issue another order, and then if somebody refused to abide by it again, we would have to go back to the circuit court. The efficiency here and the burden on the judiciary.

Instead of having one judicial review of the case, you would have multiple appeals going before the circuit court, which has just not been the practice before the board for at least seven and a half years.

Our orders have been enforced, people have appealed, they've gone through judicial review and the circuit court has reviewed it, which is the property process. This Bill is just to give some particularity to what's already there. 377.9 does not say shall, it says me.

And it allows us to enforce all the other matters that we have the power to enforce.

Okay, thank you, Attorney General. Sorry, you just heard some of the testimony, some of the response to my question earlier. I guess my question for your Department is do you guys have concerns or issue with how the board currently operates and enforces. Right its ruling

Under the current HRS Chair, we don't believe there's any, I guess, problem to address. I believe the clarification, as the Labor Relations Board puts it, we don't believe it essentially inserts enforcement into a statute that already provides for, I guess, judicial oversight over the administrative body.

So we believe that mechanism itself is adequate to address the needs of our relationship with the board.

Okay, thank you Members. Any further questions? Representative Reyes Oda

Question for the Labor Relations Board. Thank you, Board Member Moniz. Right now, how long does it take for somebody who files a complaint to get in in a decision from start to end approximately right now?

Well, it varies because we're under the 40 day requirement to have a hearing, but parties can waive that requirement. So that varies from case to case. There's times where there's a pretty much immediate decision and there's times where a decision will take months to issue.

And if, and you said that you haven't- you guys have not in recent memory had to file any cases through court to enforce orders.

Okay. So this. And of course that means that the second somebody finds out that they don't have to abide by your order, it would probably increase the more people not abiding by it.

Yes.

And if people did that and you and the board had to seek, seek to enforce orders to the through the civil process, how long do you think that that would add for people who are filing complaints to seek justice?

It would add several months because depending on the circuit court calendar for administrative appeals because once that would happen, we would have to. We lose jurisdiction when it goes for judicial review. So the case shuts down before us, and then there's a whole briefing schedule before the circuit court.

There's briefs filed by all the parties, and then you wait for a decision by the circuit court judge. Then if it gets remanded to us, then it comes back, then we have to reopen the case and basically start all over again. Okay, thank you. Thank you.

Actually, if you could stay up there. So, Right. I just want to go over the hypothetical, say, right, this Bill does not pass, things will stay as is right now. And you guys, the board, in theory, would be able to operate as it has been. Isn't that the way you want things to go?

That's true. That we would be able to continue to operate the way we have been. The purpose. That's why this Bill is not adding to the law or subtracting to the law. It's just clarifying what the board can do and what the board cannot do to have.

Let's say, for example, I know of one occasion where an attorney was actually disbarred from practicing before the board. There was no attempt to have to go to circuit court to enforce that order, because that was our order.

If we're allowed that power, that we enter an order, say disbarring someone or suspending someone from practicing before us, and that person simply ignores it, then we have to go to circuit court to try and enforce it.

Because 377.9h, I believe, does not say just final decisions and orders, because final decisions and orders equate to judicial review, what it says, orders, that you may go to circuit court to enforce orders.

So that means, literally, if you believe the AG's argument, every single order, if a party refused to abide by it, we would have to shut the case down, go to circuit court, do all that filings, have a hearing, have the case remanded back, and then start all over again and then enter another order.

And if somebody refused that, then we would have to go back to circuit court again and go through that whole process of months of briefing and hearings and then come back again.

And it would be an endless cycle which does a disservice to the judiciary, does a disservice to the board, does a disservice to the parties in the case.

Thank you. No further questions. Thank you. Okay, moving on to the next item in the agenda, HB423 relating to workers compensation. First to testify, we have Brenna Hashimoto. Director for DHRD in support.

Good morning, Chair, Vice Chair and Members. My name is Jennifer Mori Kilby. I'm the administrator for the Workers Compensation Unit at DHRD on behalf of my Director, Brenner Hashimoto, we stand on our written testimony in support.

Thank you. Thank you. Next we have Attorney General's Office with comments.

Good morning, Chair Sayama, Vice Chair Lee, Representative Oda, Members of the Committee. William Crowell, Deputy Attorney General, on behalf of the Department of the Attorney General, providing comments. What this bill pertains to is a vocational rehabilitation process within the workers compensation law, which is a voluntary program on the part of the employee.

As the law as it currently stands, if an injured employee elects to participate in vocational rehabilitation, it is that employee's option whether or not to select a provider. And what this bill would do is make mandatory that the employee select a provider.

However, because the language of the bill changes from may select a provider to shall select a provider, we just recommend prefacing that sentence. This is on page four, line 14 with if the employee elects to enroll in a rehabilitation plan, then the employee shall select a provider.

The full recommended language is in our testimony, but the gist of it is that this would make clear that vocational rehabilitation is still voluntary on the part of the employee and it's only mandatory that the employee select a provider if they elect to participate in vocational rehabilitation.

Lastly, but continuing on that same point, the bill also places an affirmative duty on the employee to select a provider within 30 days. And we would just recommend that the bill clarify when that 30 days begins so it's clear what the employee's responsibilities are when selecting a provider.

Thank you for the opportunity to testify and I'm available for any questions.

Thank you. Okay, any other persons here to testify on this measure? Seeing none. Members, we do have written testimony from the Department of Labor Industrial Relations with comments, support from the Hawaii Insurance Council and support from the American Property Casualty Insurance Association Members. Any questions? Okay, Seeing none.

We'll be moving on to the next item in the agenda, HB827. First to testify, we have Jade Butay, Director for DLIR, in support.

Thank you, Chair, Vice Chair and Representative Reyes Oda. We stand on our submitted testimony in support. Thank you.

Thank you. Next we have the Hawaii Firefighters Association in support on Zoom. Okay, moving on. I'm sorry, I think that might be it. Are there any other persons here to testify on this measure?

Okay, Seeing none Members, we do have written testimony and support from the Maui Fire Department as well as the Maui Division Chair for the Hawaii Firefighters Association. Members, any questions? Seeing none will be moving on to HB430 relating to internships.

First, to testify on this measure we have Deborah Halbert, VP for Academic Strategy from the University of Hawaii Systems, in support.

Aloha and good morning. Chair Sayama, Vice Chair Lee and Representative Reyes Oda. My name is Alan Rosenfeld. I'm the Associate Vice President of Academic Planning and Policy at UH System office. So we stand in full support of this measure. Work based learning is a featured aspect of our new strategic plan.

There's just one requested amendment we have for you to consider and I believe it's on page seven, lines 11 to 13, where we just want to make sure if we have full time students that they don't, their academic performance doesn't get undermined by doing 40 hours of an internship per week.

So we ask you to consider for students taking two or more courses, to restrict it to 20 hours per week so they can focus on their studies. Mahalo. Happy to answer any other questions.

Thank you. Next we have Attorney General's Office with comments.

Good morning, Chair, Vice Chair, Representative Oda, Deputy Attorney General Jang Eun Ha on behalf of the Department providing comments on HB430. Our comments are suggested revisions to the preamble and to the section regarding HRS 302A-430 for clarity and to ensure that the Bill is consistent with HRS Chapter 386, Hawaii's Workers Compensation law. I am available for any questions.

Thank you.

Thank you. Next we have Keith Hayashi, Superintendent for Department of Education and support.

Good morning, Chair, Vice Chair, Members of the Committee, I'm Tammy Chun, Deputy Superintendent for Keith Hayashi. The Department of Education supports this Bill. We do want to point out request on page four regarding the amount of time, the duration of internships and the number of hours per week for students.

We would like to increase the the hours and the number of weeks for the summer to allow students to have a more full time work experience while they're on break. Thank you.

Thank you. Next we have Jade Butay, Director for DLIR in support.

Aloha Chair, Vice Chair and Representative Reyes Oda. We stand on our testimony in support. Internships is a strong pathway for students to create a career. We're now two years in on the Hele Imua internship program and we have a terrific momentum. Rising Tides does indeed race all boats.

As such, our Workforce Development division stands ready, willing and able to expand the internship program to the private sector. Thank you.

Thank you. Next we have Executive Administrator Daintry Bartoldus from The State Council on Developmental Disabilities and Support.

Aloha chairing Committee Members. My name is Sumayya Goram and I'm an intern at the Department of, or the Hawaii State Council on Developmental Disabilities. We were late on our testimony, so we do have testimony here, but we stand in support of this Bill.

And yeah, I'm actually part of the Hele Imua internship program, so opportunities like this allow me to be here. So thank you.

Thank you for being here. Next we have Lauren Zirbel, Executive Director for the Hawaii Food Industry Association in support on zoom.

Good morning. Chair, Vice Chair and representative Reyes Oda. I'm Alexis Chapman, on behalf of HFIA, we stand on our testimony and support and I'd be happy to answer any questions.

Thank you. Next we have Sherry Menor from President and CEO for the Chamber of Commerce of Hawaii in support. Thank you. Next we have Kiran Polk, Executive Director from the Kapolei Chamber of Commerce in support on zoom.

Good morning, Chair, Vice Chair, Representative Reyes Oda. We stand on our written testimony in support and we'd be happy to answer any questions.

Thank you. Are there any other persons here to testify on this measure? Okay, seeing none. Members, we do have written testimony and support from the Healthcare associations of Hawaii, Kohala Coast Resort Association, Hawaii P20 Partnership for Education, as well as Maui Chamber of Commerce all in support. Members, any questions? I do have a question for the DOE.

I'm sorry, I just wanted to confirm or clarify your requested amendment. Is that something that's included in your written testimony?

It is in our written testimony.

Okay, thank you. And so you're suggesting that during the summer, I guess, period, students who are participating in this internship program be allowed to exceed that 40, 40 hours?

They would be allowed to do 40 hours. On page four, lines 11 to 12, I believe the limitation, or it currently states 30 hours for six weeks and we are requesting 40 hours for eight weeks as a maximum and it would allow flexibility depending on the opportunity.

Okay, thank you. No further questions. Members, any further questions on this measure? Okay, seeing none. We'll be moving on to HB 555 relating to employment practices. First, to testify on this measure we have Brenna Hashimoto, Director for DHRD with comments.

Good morning, Chair, Vice Chair and Members of the Committee. I'm Eric Nita representing Brennan Hashimoto. We stand on a written testimony with comments.

Okay, thank you. Next we have Jade Butay, Director for DLIR with comments.

Thank you. Chair, Vice Chair and Committee Members, we stand on our testimony operating comments. Thank you.

Thank you. Next we have Victor Lim, a government relations lead from the Hawaii Restaurants Association, in opposition on Zoom.

Good morning Chair Sayama, Vice Chair Lee and Members of the Committee. We stand in opposition because this bill we felt is poorly written and it's really unnecessary. A couple of key points is that a four hour shift is really a very, very short shift.

And no matter where you work during a four hour shift, if you need a bio break or whatever it is, almost all the employers will accommodate that for the employee and having to pay a 10 minute paid time and then the penalty is also very high.

But with a 10 minute paid time, if a person work a 8 hour shift, are you setting the precedence for what a 8 hour shift break is supposed to be? So if you look at a lot of the things really, we really feel that this Bill is unnecessary.

And for me personally, when our employee work a short four hour shift, we also provide meals and almost all the cases the employees usually take the meal to go to go to the next destination. So we really feel that at this point in time. Please hold this Bill. Thank you very much.

Thank you. Next we have Tina Yamaki, President for the Retail Merchants of Hawaii, in opposition on zoom. Is she here? Okay. Next we have Sherry Manor, President of the Chamber of Commerce, Hawaii in opposition. Thank you. Next we have Kieran Polk from the Executive Director for the Kapolei Chamber of Commerce in opposition on Zoom.

Good morning Chair, Vice Chair, Members of. The Committee, we also stand in opposition. And you know, echoing my colleague at the Hawaii Restaurant Association, Victor Lim. This really will put a extended pressure. On our small businesses.

It's just another asset that in this time of a labor shortage on top of that that is just going to be really pressing for our especially our restaurant, our retail merchants. Thank you for your further the opportunity.

Thank you. Next we have Lauren Zirbel for Executive Director for the Hawaii Food Industry Association with comments on Zoom.

Good after. Good morning Chair, Vice Chair, Members of the Committee, I'm Alexis Chapman for HFIA. We stand on our written comments and. I'd be happy to answer any questions. Thank you.

Thank you. Are there any other persons here to testify on this measure? Okay, seeing none Members, we do have written testimony from DHRD with comments. Matson Navigation Company with comments. Tiki Grill and Bar in opposition, six individuals in support. Members, are there any questions on this measure?

Actually, I do have question for Victor Lim for the Hawaii Restaurants Association, if you're still on Zoom.

Yes, Chair, I'm here.

Thank you. So I, you know, I understand your opposition to this measure. Right. It sounds like you, you know, your Members already provide a respite or breaks for what you said was four hour shifts. You guys all also provide meals. So I'm just curious how this Bill would impact the operations.

Well, you know, depending upon the size of the business and the viability of the business, many mom and pops probably couldn't offer what we offer. For me personally, at McDonald's, we are a little bit bigger than most food service.

So we can offer the breaks, but we do it without formally having a break because we do give people, whenever they request that they need to go something to do this and that. There's always ability to do that.

And if you consider also like bio breaks and stuff like that, it could take three minutes, it could take 10 minutes. But we know we accommodate that unofficially and it's almost all the time it's being done.

So really we do not need any kind of formal regulations to put something like this out there, which will put a tremendous burden on the many smaller and medium sized entities.

Okay, just out of curiosity, so you know, when employees for your membership take a break, is that something that they're not paid for or, you know, is that just moved into their hourly pay.

For a four hour shift? Definitely. It's not, you know, we, we just let them take off if they need to do. There is no formal break for a four hour shift.

Okay. Okay. No further questions. Thank you, Victor. Members, any further questions on this measure?

Okay. Seeing none, we'll be moving on to HB 159 relating to qualified community rehabilitation programs. First, to testify on this measure, we have Kamakana Kaimuloa, UPW in support.

Chair, Vice Chair, Members. Again, Kamakana Kaimuloa, United Public Workers. You have our written testimony and strong support. We believe that this measure is needed to address a growing problem with employers and it's spreading across all employer jurisdictions. And that is that they're leaning heavily on these contracts to address staffing shortages.

And our fear in the long run is that the longer they, the longer the vacancies last, they are likely to lean on these contracts even more, which would preclude them necessarily from actually hiring for the positions that they are, you know, replacing essentially. So happy to answer any questions you may have.

Thank you for the opportunity to testify. Thank you.

Next we have Randy Pera, Executive Director for HGA and support.

Good morning, Chair, Vice Chair Members, Nui Sebast here with HGA. We'll stand on a written testimony of strong support. Mahlo, thank you.

Any other presidents here to testify on this measure. Members. We do have written testimony from the county, Maui, with comments. And Hawaii State AFL, CIO in support Members, any questions on this measure? Seeing none, we'll be moving on to HB163. This is relating to reimbursement of public officers and employees.

First, to testify on this measure, we have Bonnie Kahakui, Administrator for the State Procurement Office with comments on Zoom.

Good morning, Chair, Vice Chair, Members of the Committee, Bonnie Kahakui, Administrator, State Procurement Office, will stand on a written testimony providing comments and recommendations for changes. Thank you. Available for questions.

Okay, thank you. Next we have Kamakana Kaimuloa, UPW, in support.

Chair, Vice Chair, Members, Kamakana Kaimuloa, UPW, stand on written testimony and support. Thank you.

Thank you. Next, we have Randy Pere, Executive Director for HGA, in support.

Hello, Chair, Vice Chair, Members, Nui Sebast here with HGA. We'll stand on a written testimony in strong support of this measure. I do want to emphasize that this really goes to the issue of when Members must front the cost when they travel on official business and there's a delay in payment, when there's a delay in reimbursement.

So we do appreciate the intent of this measure. We're happy to answer any questions. Mahalo.

Okay, thank you. Are there any other persons here to testify on this measure? Seeing none, Members we do have written testimony from one individual in opposition Members, any questions on this measure?

Okay.

Seeing none. Will be moving on to HB164 relating to indebtedness to the state. First to testify, we have Keith Reagan, Comptroller for DAGS, with comments.

Good morning, Chair Sayama, Vice Chair Lee, Members of the Committee. On behalf of. Keith Regan, comptroller, I'm Meoh-Leng Silliman, Deputy. Comptroller, Department of Accounting and General Services. We stand on our written testimony as submitted, with comments available for questions. Thank you.

Thank you. Next, we have Kamakana Kaimaloa, UPW, in support.

Aloha, Chair, Vice Chair, Members, again, Kamakana Kamala, upw, you have our written testimony and strong support. We feel that the proposed bill actually helps to address the. The growing cost of living in Hawaii better than what's currently in statute, particularly for our Members who get paid less than $2,000 per pay period.

Happy to answer any questions you may have. Thank you.

Thank you. Next we have Randy Pera, Executive Director from HGA, in support.

Hello, Chair, Vice Chair, Members. Nui Sebast here with HGA. We stand in strong support of this measure. And I do want to again emphasize that this is really geared towards our Members that are on the lower end of the salary schedule, specifically folks that make less than $72,000 a year. Happy to answer any questions. Mahalo.

Thank you. Are there any other persons here to testify on this measure? Seeing none. Members any questions? Seeing none. Will be moving on to the final item in the agenda, HB 847 relating to Hawaii Retirement Savings Act.

First to testify on this measure we have Alani Koki from the Executive Executive Director for DLR Hawaii Retirement Savings Board and support.

Morning Chair, Vice Chair, Members of the Committee, Alani Koki, Executive Director of the Hawaii Retirement Savings Program. The board will stand on its written testimony in strong support of this measure. We do want to point out one clarifying amendment on page eight, line 16.

So the board recommends that the program administrator be deleted and the sentence to read the covered employer provides. Thank you.

Thank you. Next we have Tina Yamaki, President for Retail Merchants of Hawaii in opposition on Zoom.

Okay.

Next we have Tax foundation of Hawaii with comments on Zoom. Okay. Any other persons here to testify on this measure?

Seeing none. Members, we do have written testimony, support from Department of Health Executive Office of Aging, support from Hawaii Restaurants Association 604 Hospitality Group LLC and Support Hawaii Families Caregiver Coalition in support and an individual in support as well. Members any questions for this measure? Okay. Seeing none. We will be taking a short recess recession.

Calling back to order. The House Committee on Labor will now go into decision making. First, we have HB 158 relating to unemployment benefits. We recognize that there is some debate here, but and I think this is a measure worth moving forward to the Next Committee for further conversation. We'll just be adding a defective date of 7-1-3000.

So we'll be passing this out with amendments. Members, any comments? Seeing none. Vice Chair for the vote.

Thank you. Chair voting on House Bill 158. Chair's recommendation is to pass with amendments. [Roll Call] Chair recommendation is adopted.

Thank you. Next we have HB202 relating to adequate Reserve Fund. We'll be adopting the DIR's amendments to have the Reserve Fund be calculated using a multiplier of 11/4 for calendar year 2026, increasing to 11/2 starting calendar year 2027. Also be adding a defective date of July 1, 3000. Members, any comments? Seeing none.

Vice Chair for the vote, we would be passing this out with amendments.

Thank you. Chair voting on House 202. Chair's recommendation is to pass with amendments. [Roll Call] Chair your recommendation is adopted.

Thank you. Next we have HB162. My recommendations that we just pass this through with a Defective date of July 1, 3000. Members any comments? Seeing none. Vice Chair for the vote.

Thank you. Chair voting on House Bill 162. Chair's recommendation is to pass with amendments. [Roll Call] Chair your recommendation is adopted.

Thank you. Next, HB165 relating to the Hawaii Labor Relations Board will be adding a defective date of July 1, 3000 to this. We recognize that there's a little bit more debate between the board as well as Attorney General. So we hope that continue conversation continues into the Judiciary Committee. Next. Okay. Members, any comments? Seeing none.

Vice Chair for the vote.

Thank you. Chair voting on House Bill 165. Chair's recommendation is to pass with amendments. [Roll Call] Chair your recommendation is adopted.

Thank you. Next we have HB 423 relating to workers compensation. To align the code with the Code of Federal Regulations, we will be adopting DHRD amendments for page 7, line 10. We'll also be clarifying the voluntary basis of the rehabilitation program.

And so we will adopt AG's amendments for page four, lines 13 to 15. We'll also be fixing the ambiguity of the 30 day time frame for the employee to select a provider. And so we'll be adding language to say the 30 days begin after the referral is made upon the recommendation of the rehabilitation unit.

This is reference to page three, line 12 of the bill. And then finally, we'll be adding a defective date for July 1, 3000. Members any comments? Seeing none. Register for the vote.

Thank you, Chair voting on House Bill 423. Chair's recommendation is to pass with amendments. [Roll Call] Thank you, Chair Recommendation is adopted.

Thank you. Next we have HB827 relating to workers compensation medical benefits. We'll be passing this forward with technical amendments needed for clarity, consistency and style. We'll also be adding a defective date of July 1, 3000. Members any comments? Seeing none. Vice Chair for the vote.

Thank you, Chair voting on House Bill 827. Chair's recommendation is to pass with amendments. [Roll Call] Thank you, Chair your recommendation is adopted.

Thank you. Next we have HB430 relating to internships. We have a number of amendments for this measure, so thank you for your patience. So, first we have we're going to adopt the AG's amendments to add the word internship to page 10, line 13.

Second, we'll adopt AG's amendments to amend the preamble to include college students in addition to the high school students. Three, we'll adopt Dir's amendments to add private sector in the section heading on page 3, line 13. Fourth, we'll adopt DIR's amendments to separate subsection H on page 9 to be a new section in Chapter 394.

Fifth, we'll add the term college students to page 3, line 7. Six, we'll add language on page 6, line 20 to read is not an apprentice in a registered apprenticeship program or journey worker. Seventh, we'll add a line item on page five to read, pass a criminal history record check pursuant to Section 8462.7.

8th will add line item page on page 9 under subsection G to read, provide interns with the same working conditions as other employees in similar jobs and consult with and obtain assistance from the Department if an intern requires support services to carry out a work assignment effectively. Ninth, we'll also be incorporating the University of Hawaii's amendments.

I believe this is on page seven, lines 11 to 13 to read for a maximum of up to 20 hours per week while an intern is enrolled in two or more college or University courses or 40 hours per week otherwise. Next, we'll be adopting DOE's amendments. This is relating to students enrolled in the program during the summer.

This is regards to page 7, lines 9 to 10, increasing the hours per week from 30 to 40 for those again students who are in summer break. Next we'll be adding technical amendments for clarity, consistency and style and finally adding a Defective date of July 1, 3000. Members any comments? Seeing none. Vice Chair for the vote.

Thank you. Chair voting on House Bill 430. Chair's recommendation is to pass with amendments. [Roll Call] Chair your recommendation is adopted.

Thank you. Next we have HB555 relating to employment practices. I recognize that from the testimony that there are some employers who are giving breaks to their employees in a reasonable amount. But not everyone is a great employer. And so we do want to have some standards for this.

And so we'll be adopting DHRD's amendments to exempt public employees not covered by collective bargaining. We'll also be adding technical amendments needed for clarity, consistency and style and defecting the date to July 1, 3000.

I'd like to encourage the introducer of this bill to work with stakeholders as well departments to fix any technical changes as it moves on to the Next Committee to finance. Members any comments? Okay. Seeing none. Vice Chair for the vote.

Thank you Chair. Voting on House Bill 555. Chair's recommendation is to pass with amendments. [Roll Call] Thank you. Chair recommendation is adopted.

Thank you. Next we'll be moving on to HB159 related to qualified community rehabilitation programs. We're going to be passing this with amendments, just technical amendments for clarity, consistency and style, as well as adding a defective date of July 1, 3000. Members any comments? Seeing none. Vice Chair for the vote.

Thank you. Chair voting in House Bill 159. Chair's recommendation is to pass with amendments. [Roll Call] Chair recommendation is adopted.

Thank you. Next we have HB163 relating to reimbursement of public officers and employees. I will be adopting the Procurement Office's amendments for page 3, lines 18, lines 8 to 17. We'll also be adding the defective date of July 1, 3000 Members. Any comments? None. Vice Chair for the vote.

Thank you. Chair voting on House Bill 163. Chair's recommendation is to pass with amendments. [Roll Call]. Chair, your recommendation is adopted.

Thank you. Next we'll be moving on to HB164 relating to indebtedness to the state. We'll just be passing this forward with a defective date of July 1, 3000 Members. Any comments? Seeing none, Vice Chair for the vote.

Thank you, Chair. Voting on House Bill 164. Recommendation is the Chair's recommendation is to pass with amendments. [Roll Call] Chair your recommendations is adopted.

Thank you. Finally we have HB847 relating to the Hawaii Retirement Savings act. We'll be adopting DLIR's amendments to Section 4, Page 8, Line 16, to replace the term program administrator with covered employer.

We'll also be adopting DIR amendments to repeal the limit of total fees and expenses spent for the program each year in sections 5, page 9, line 21 through page 10's lines 1 to 5. I will also be blanking appropriations to include this amount into the Committee report and adding a defective date of July 1, 3000 Members.

Any comments on this measure, Representative Garrett?

Thank you, Chair. Just wanted to disclose that I'm currently the House designee and serve on the board of the Hawaii Retirement Savings act, and as such, I'm going to recuse myself from voting on this bill today and. But we'll ask for a ruling on a potential conflict when the bill comes up for second reading on the floor.

Thank you, Members. Any further comments? Okay, Seeing none, Vice Chair for the vote.

Thank you, Chair. Voting on House Bill 847. Chair's recommendations to pass with amendments acknowledging Representative Garrett's recusal. [Roll Call] Chair your recommendation is adopted.

Thank you, Members. This hearing is adjourned.