House Standing Committee on Labor

Morning, everyone. I'm calling the House Committee on Labor to order. It is Thursday, February 5th, 9:30am we're in conference room 309. Looks like we have a full house today. So again I'll be reminding testifiers that we have a two minute timeline. If you are going over the time limit, I will remind you to wrap your testimony up.

So respectfully ask that you do so. First, we have HB 2320 relating to the State Fire Council. This replaces the Department of Labor Industrial Relations with the Department of Law Enforcement as the Department responsible for budgeting, administrative staffing for the State Fire Council. First to testify, we have Director JJ. Butai from DLIR in support.

Good morning. Chair Sayama. Vice Chair Lee. I'm Jade Butay, Director of the Department Department of Labor Industrial Relations. We stand on our testimony, strong support. This measure is consistent with Act 302, SLH 2025, which transferred to State Fire Council and State Farm Marshal the Department of Law Enforcement. Thank you.

Thank you, Director. Any other persons here to testify on this measure? Yes. Please state your name for the record.

Good morning. Gary Lum for State by Council in strong support of this measure since Act 302 passed last session. State Park Council was moved over to DLE, but the funds still existed at DLIR for FY26. So this measure would uncomplicate things for MOA and make it more straightforward for the next fiscal year. Thank you.

Thank you. Are there any other persons here to testify on this measure? Members, any questions? Seeing none, we'll be moving on to HB 2514 relating to state construction projects.

This Bill establishes the Office of the State Construction Manager within the Department of Accounting and General Services, overseen by the State Construction Manager to organize, manage and oversee designs, review of and issue design approvals for state construction projects.

Exempt state construction projects from county building permits inspection and certificate of occupancy requirements under certain circumstances as determined by the State Construction Manager. Establishes the Design Review Special Fund and appropriates funds into and out of the Fund. First to testify, we have Ryan Kanaka Ole, Acting Chairperson for DLNR with comments.

Next we have Keith Regan, Comptroller for dags, in opposition.

Chair. Vice Chair Keith Regan, Department of Accounting and General Services. You have our testimony in opposition to this measure which outlines why we oppose this particular measure. If you have any questions, we're here to answer them for you. Model Chair.

Thank you. Next we have Randy Pereira, Executive Director for HGA, in opposition.

Vice Chair, new east of ASP for HGA. We're in a position specifically to pace three lines 18 through 21, which allows a state construction manager to employ qualified architects and engineers without regard to Chapter 76 civil service law. Architects and engineers have historically been civil service positions within our state and also within our county.

So we really question the need for that. We'll stand on our testimony. We're available to answer any questions.

Thank you. Thank you.

Next we have Michael Yosula, advocate for the employee Ironworker Stabilization Fund and support Morning chair.

Vice Chair Mike Yosua. On behalf of the Ironworker Stabilization Fund. You have a written testimony and strong support. Just wanted to note that this Bill is no way intended to demean or undercut the work that's been done at Daggs or any of the other departments. We feel like they're doing a fabulous job and they're moving things forward.

This would just kind of provide an extra set of eyes or oversight to make sure that things don't fall through the cracks if project managers or others aren't able to keep up with all of the state projects nation, I mean statewide. Happy to answer any questions if you have any.

Thank you. Are there any other persons here to testify on this measure? Please come to the podium and state your name for the record.

Good morning, Chair, Vice Chair. My name is Dwayne Bautista. I work for the Iron Workers Stabilization Fund. We strongly Support House Bill 2514. This will eliminate costly backlogs for months or even years that delay cost even hundreds or even millions of dollars be added to inflation.

The reason why taxpayers will save to avoid inflation by moving the project smoothly faster. It also locks in the lower prices for materials and labor. It reduces the change orders expert designs review catches the error early and preventing expensive and mid correction catches.

Also self funding the creation of this will review special Fund become self sustainable and not rely on the General Fund. It also requires required licensed professional managers and dedicated inspectors for every project. So we support this Bill. Thank you for my testimony. Thank you. Please.

Good morning, Chair, Vice chair and community Members. My name is Cliff Laboa. I'm with the Ironworkers Stabilization Fund. We just want to clarify. I just want to clarify some things. We strongly support this Bill. Why we getting involved in this Bill is because we see a lot of holes within the system.

We've come forward to the Legislature many times with some of our other bills that we try to put together to help the families and the working men in the community saving money on drugs and food and stuff like that. And we always get the same answer. Where we going to get the money? From.

Yeah, I got a list right here compiled of probably 20 state projects over $350 million over cost overrunning the project. Yeah, we're not saying that they're not doing their jobs, but we see a hole in the process.

We see a hole that needs to be filled on who's monitoring these projects on a daily basis so that we can curve the overspending and the wasteful spending. That's why we're here, that's why we're doing this. We're just trying to help them out.

We're just trying to find pieces so that later on when we come back to the Legislature to talk about really doing some good bills to help the working families and the kupunas and medicine and all of that stuff, we won't stop hearing where we get the money from. So just letting you guys know where we coming from.

Any questions? We'll be here to answer.

Thank you.

Thank you for your testimony.

Next.

Thank you, Chair, Vice chair Lee and Representative Capella. Thank you guys for your opportunity to testify.

My name is Cody Sula and along with the Ironworker Stabilization Fund, I just want to reiterate some of the points that my colleagues made is the reason why we started looking at this area is mainly because we want to help working families. And one of the big issues that we see is lack of funding.

Now we've been talking about the lack of funding, maybe possible federal cuts, federal funding cuts coming down on us. And really we just want to get a handle on some of the taxpayers money because many of the people that we've talked to are Members and other union Members and just residents.

When they ask questions about certain projects, they feel like they don't get the type of answers. You know, we're looking at projects that don't go over just a little bit. They're going over 2030, $40 million. You know, state hospital, we got the convention center that just started up and it's over budget already.

And we're not trying, we're not against construction, but when we can curb some of this wasteful spending, we can create a healthier construction industry.

We can have, instead of one big project, we can have multiple projects coming up and then those monies can go to construction to Fund critical services and also to give back to the taxpayers that's been funding all of these. But that's where we come from.

Just a little bit more oversight to make sure that our tax dollars are being used responsibly. Thank you. Thank you.

Any other persons here to testify on this Measure see none. Members, any questions? Actually, I have a question for comptroller. Thank you for coming. I was hoping that you might be able to elaborate a little bit more on your position to oppose this Bill.

Clearly, there are some concerns regarding timelines and budgeting for certain construction projects on state properties. Can you just elaborate what Daggs role is on all this?

Well, I mean, if you're referring to the measure that's before us today, we clearly indicated what our concerns are about that particular piece of legislation. Specifically, we're concerned about taking on the additional risk that's associated with being responsible for the ultimate design of these projects.

Typically, that's placed on the consultants that we hire to be able to produce the plans. Right. That are used as part of the design process of these particular construction projects. And transferring that risk to the state is a big concern of ours, as was explained in our testimony.

In addition to that, we're also concerned about the number of people that we're going to have to have employed in this particular office specifically, because it's all state projects. It's not just Dags projects, it's every Department that has a project. So DOT has projects.

We don't have experts in road building or bridge building or other types of facilities that are constructed by the DOT or other departments that have specialized construction projects. So we're going to have to have a very broad group of people that are going to be part of this particular section that would be developed.

We also have concerns about reporting. I know that in this Bill it proposes that the Governor would be the one to select the construction manager or whatever the position is titled. I'm sorry, I don't remember exactly what is titled, but.

And that that person would then be reporting to the comptroller that presents some issues in terms of management and oversight of that individual. That particular individual is a appointed by the Governor, and that particular individual needs to be removed because they're not effective or they're not performing the way that they're supposed to.

How does that get addressed by the comptroller in the future? Right. To be able to make that change, to put in a new position. So there's a lot of concerns that we have about this particular Bill.

We would love to have had the opportunity to engage and interact and talk about what the problem is that we're trying to solve with this measure and then maybe come out with something that we can all live with that makes sense to address some of the concerns that were raised in the testimony that was provided previously.

We're all about being efficient, using our money efficiently and making sure we're not wasting monies. And if there are ways to do that, we're open to it and we want to explore it. But we just feel like there are some major concerns that we need to address before this can. Thank you.

And how many additional positions would you roughly estimate would be required for this? Based on what?

Our public works division administrator who looked at the Bill is talking somewhere upwards of about 100 different positions that would be necessary, which would include architects, engineers, construction managers, project managers, administrative staff to be able to support that team.

It's a whole new, essentially, I don't want to say a division, but a branch within public works division that's going to have to be created specifically for this. I see.

Thank you. No further questions. Members, any questions? Yes, Vice Chair.

Workers, I appreciate the testimony I heard from one of you that we're not saying that they're not doing their jobs, but it sounds like when we're talking about cracks and holes that you don't think it's good enough. And I hear him saying that we didn't talk to them earlier about this in going through this process.

And if we're talking about 100 new workers at a new office, would it not make more sense to maybe work it out and maybe give them more positions? I'm just trying to justify the understanding of a whole new office and a whole new position.

So just question if it would be worth discussing a new. Yeah, just, just justify, you know, the measure itself. I mean, I, I think the. Mechanically there could be a lot of different options for that. I think the conversation about the holes that was mentioned, you know, again, nothing against comptroller.

I think he's done as good or better than any job that any other comptroller has done at kind of controlling waste and spending. But there, there clearly is amongst many departments some concern that there is some overspending and perhaps an additional set of eyes or additional, you know, someone to assist in that oversight would be helpful.

So I don't know the number of full time employees it would take. That's the reason why we suggested for, at this point, looking to other architects and engineers and from the private sector and assisting.

My understanding is it's very difficult to hire engineers and architects into state positions, but there's a number of local offices and companies that could provide that assistance to them at this point.

And have you guys come to them with these concerns in the past and tried to work it out for them? Yeah, you know what, I admit we have not at this point.

We. We've talked to other. Other departments about this issue. Not them direct. Not. Not Jack.

Okay. Thank you. Members, any other questions? Okay. Seeing none, we'll be moving on. HB 2255, relating to the Department of Attorney Generals. This permanently exempts specified positions of DA--sorry--the AG's Office and its administratively attached Hawaii Correctional System Oversight Commission and Civil Service Chapter 76 HRS and for certain positions where the exemption from collective bargaining under Chapter 89 HRS may be unclear, to expressly provide exemption, makes housekeeping amendments to Sections 28-10.5, Subsection B HRS. First to testify on this measure, we have Department of Attorney Generals in support on Zoom. Oh, in person.

Morning, Chair Sayama, Vice Chair Lee, and members of the committee. My name is Matt Dvonch, First Deputy Attorney General, testifying in strong support of this bill. The positions that we're asking to be made permanently exempt and excluded were all established as exempt-excluded positions. They've been filled as such and continue to this day, and we're simply asking that they be made permanent by making the appropriate amendments to Chapter 76 and Chapter 89. Thank you, and available for any questions.

Thank you. Next we have Randy Perreira, Executive Director for HGEA, in opposition.

Chair, Vice Chair, members, Louise Sebastian for HGEA. We'll stand on our testimony in opposition. I just do want to note that exempt employees are considered applicable by the employer. They don't have any just cause protections. So we question the need for the Department to accept these employees. Thank you.

Thank you. Any other presidents here to testify on this measure? Seeing none. Members, any questions? Seeing none, we'll be moving on to the next item: HB 2249, relating to civil services exempt positions within the Department of Accounting & General Services. Permanently exempt certain positions within the Public Works Division, Special Projects Branch, and the Comptroller's Office within the Department of Accounting & General Services from the State Civil Service Law. First to testify on this measure, we have Comptroller Regan from DAGS, in support.

Chair, Vice Chair, Keith Regan, Comptroller, Director of the Department of Accounting & General Services. You have our written testimony in support of this measure. Just wanted to say that in our budget request, we do have three positions that we've asked for, specifically to create the Special Projects Branch that we have identified a strong need for within the Public Works Division of our department. This would allow us to essentially move forward with creating those positions and supporting them from an exempt perspective.

We do believe that these positions are unique in the sense that they're outside of the civil service standard process, and we're going to need that flexibility. This would provide us that flexibility as well as to ensure that these are codified properly within statute as well. Thank you very much.

Thank you. Next we have Craig Nakamoto, Executive Director for the Hawaii Community Development Authority, in support.

Morning, Chair, Vice Chair, members of the committee. Craig Nakamoto, Executive Director for the Hawaii Community Development Authority. You have our testimony in support, but I just want to say that I'm here to support my colleagues at DAGS and Comptroller in their effort to be able to hire exempt persons to work on these specialized and unique projects that will benefit the state. So thank you very much.

Thank you. Next we have Randy Perreira, Executive Director for HGEA, in opposition.

Chair, Vice Chair, members Kauanui Sabas for HGEA. We'll stand on our testimony in opposition to this measure, and we really question the need to exempt and exclude a whole branch within a department.

I won't say what I said on the previous measure, but I think this kind of proves that our civil service system must become more flexible and competitive so that as a state, we can compete with the private and other public sectors. Thank you.

Thank you. Any other persons here to testify on this measure? Well, members, we do have written testimony in support from DBEDT. Okay. Members, any questions? Seeing none, we'll be moving on to HB 2360. This is relating to paid family leave by July 1, 2029.

Thank you.

Requires the Department of Labor & Industrial Relations to establish a family and medical leave insurance program and begin collecting payroll contributions, finance payment benefits. By July 1, 2030, requires the department to begin receiving claims and paying benefits under the program, specifies eligibility requirements and employee protections out of the program. First to testify on this measure, we have Gary Suganuma from DOTAX with comments. DOTAX is not here. Next we have Director Butay, DLIR, in opposition.

Aloha, Chair, Vice Chair, and committee members. Jade Butay for DLIR. We stand on our testimony, offering comments. We support paid family and medical leave, but believe HB 2360 is premature. The Legislature has already tasked us to-- you know, through SCR 145 with dedicated funding completing actuarial and legal analysis. The work is underway and moving forward, so thank you.

Thank you, Director. Next we have Director Hashimoto from DHRD, in support.

Good morning, Chair, Vice Chair, members of the committee. Brenna Hashimoto, Director of the Department of Human Resources Development. We submitted testimony in support of the intent of this measure.

However, part of our recommended amendments is to actually exclude state employees from coverage under this program. We feel like the state already--and other government jurisdictions--already offer generous benefits and we have several mechanisms to provide not only paid sick and vacation but also family leave under current state and federal law. Thank you. I'm available for any questions.

Thank you. Next, we have Michael Golojuch Jr., President for Pride at Work Hawaii, in support on Zoom.

Good morning. Michael Golojuch Jr., President of Pride at Work, he/him pronouns. We want to thank you for hearing this measure. It's long overdue for paid family leave in the State of Hawaii.

We love to tout our prepaid healthcare here in Hawaii, but it doesn't matter if you can't access it, if you can't-- if your family can't access it and they need you. So yes, we definitely need this. I will say I am again yet disappointed but not surprised that the capitalists are against this bill.

If they really cared about their workers, they would know-- they would want to make sure that their workers' families were safe and secure in the security this bill would provide. If they're worried about their bottom line, they need to join us and start fighting for single-payer healthcare. So we encourage you to pass this bill. Ignore the capitalists; care about the people. Paid family leave is long overdue in the State of Hawaii. Mahalo.

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

Aloha, Chair and Vice Chair and members. Kamakana Kaimuloa, United Public Workers. You have our written testimony in support. We have-- this bill does address what our concerns have been in the past in terms of excluding public workers with the option of opting in, so thank you for that change, but we do remain somewhat concerned given that we represent, approximately, 1,500 healthcare workers in the private sector of what the program is going to look like after DLIR takes a look at it. So happy to answer any questions. Thank you.

Thank you. Next, we have Kris Coffield from the Hawaii Public Health Institute, in support.

Aloha, Chair, Vice Chair, and members of the committee. Kris Coffield from the Hawaii Public Health Institute. We're in support of this measure. The health benefits of family leave are clear. The benefits economically are clear.

Just to cite some statistics from-- one statistic from our testimony, there was a 2015 study that showed that family leave was correlated with a 3.2% reduced risk of being low birth weight and 6.6% lower risk of an early term or premature birth. I'll be honest with you.

When we talk about this with our international partners in the economic space, they often ask us, like, what this program even means. How could you actually send people back to work when they just had a child?

One thing that I'll tell you--just, it's not in our testimony--that I think is kind of-- really crystallized the importance of this program for me, I learned something from Family Promise at an event that I attended recently. The age at which you are most likely to be homeless in the State of Hawaii is 0 to 1. And the next highest rate or next to the highest age range in our homelessness population is 1 to 5.

And I think that really brings to-- you know, really makes it crystal clear what these kind of programs are intended to create in terms of our social safety net for parents and for children and what that means in terms of the economic value and really the health of our children and parents and making sure that we bring families together, especially at a time when we're really taking to heart affordability. We're in support of this bill, and we'd love to see you moving it forward. Thank you so much.

Thank you. Next we have Christian Fern, Executive Director for UHPA, with comments. Not here. Okay. We'll move on to Joell Edwards from Wainiha Country Market, in support on Zoom.

Hey, good morning. Aloha, Chair and members. My name is Joell Edwards, and I'm a small business owner here in Wainiha on Kauai. I want to thank the chair and the other members who introduced this bill to be heard again this year, keeping the spotlight on a very important issue related to our workers here on Hawaii.

I'm again speaking in strong support of establishing paid family and medical leave in Hawaii, not only as a business owner, but as someone with lived experience who was supported during a medical crisis by this program. I'm speaking from experience, not theory. When my husband was just 39 years old, he contracted spinal meningitis.

Overnight, our lives turned upside down. He was in and out of the ICU in the hospital for almost six months and completely unable to work. The fear was real, the caregiving demands were intense, and the financial pressure was constant on our family of four. At that time, we lived in a state with paid family medical leave.

That support mattered. It gave us stability when everything else felt uncertain, and it allowed us to focus on healing instead of financial collapse. From a business perspective, paid family medical leave is not just a worker benefit. It's a stability tool.

It helps retain experienced employees, reduce costly turnover, and allows people to return to work healthier and more productive. From a small business especially, losing even one trusted worker can cost far more than contributing to a shared statewide leave program. For employees without paid leave, a medical crisis doesn't just affect health; it immediately threatens housing, food security, and the permanent loss of trained workers for us. In Hawaii, we talk about ohana and kuleana, about taking care of one another and sharing responsibility. Paid family and medical leave reflects those values.

It spreads rest, supports families during their hardest moments, and keeps workers connected to their jobs instead of forcing them out during a crisis. No family should face financial collapse because someone gets sick, and no small business should lose a good employee because our system lacks basic support. I urge you to move this forward. Mahalo for the opportunity again.

Thank you. Next we have Josh Frost from ACLU Hawaii, in support.

Good morning, Chair, Vice Chair, committee members. My name is Josh Frost. I'm the Policy Advocate at the ACLU of Hawaii. We stand in strong support of this bill. You have my testimony, so I just wanted to highlight a couple things.

We support the ongoing work that the working group is doing, but every year that we don't pass this, families are in peril, right? The workers and families who need this most are also the ones who are a paycheck away from houselessness. So it's good for employers, it's good for employees, it's good for the community, and we hope to see this legislation move. Thank you.

Thank you. Next we have Keali'i Lopez, State Director for AARP in support. Not here. We'll be moving on to Randy Perreira, Executive Director for HGEA, in support.

Chair, Vice Chair, members, Nui Sabas for HGEA. We're in support of this measure and appreciate the language in this measure that would allow public employees to opt in and participate in this program. Thank you.

Thank you. Next, we have Hawaii Children's Action Network Speaks, in support.

Aloha, Chair Sayama, Vice Chair Lee, and our respected committee. My name is Malia Tsuchiya. I'm here on the have a Hawaii Children's Action Network in strong support of this bill. You have my testimony. I want to add to that, though, that we're supposed to be a state that's based on aloha and malama. We're supposed to care.

We're supposed to take care of our families when they're in need, and we're failing on that. Kris addressed the homelessness issue. Other organizations have addressed the fact that when families are at their most critical moment, we're failing them. We're failing them.

I'm so grateful that the state has some public benefits, you know, that are considered generous, but everybody else does not. The leave that is left is insufficient. I speak on this personally because I'm a mom of five that wasn't able to take care of my tutu-wahine when she got sick because we didn't have something like this, and that is a choice that we had to make. I don't think it was a fair choice, but it's a choice that nobody should have to make in a state that we are supposed to be built on aloha.

And I understand that there are some processes that need to be worked out, some logistics that need to be worked out. I appreciate that DLIR is doing the evaluations that is digging deeper into this. I appreciate the multitude of departments, organizations, public and private, that are working to make this a feasible option for families.

I want to encourage everybody to keep working on that and get to the point where this is actually a reality because our 0 to 1's and our 1 to 5's shouldn't be on the streets because their grandma got sick. So again, my name is Malia Tsuchiya, on behalf of Hawaii Children's Action Network, we strongly support this bill, and humbly request that this committee pass this bill as well. Mahalo.

Thank you. Next we have Tina Yamaki, Managing Director for Hawaii Transportation Association, in opposition on Zoom. Not present? Next we have Keopu Reelitz, individual with comments.

Good morning, Chair, Vice Chair, members of the committee. My name is Keopu Reelitz. I come to my personal capacity today as a mom of three kids under the age of 10 and as a mom who gave birth to each of those three children as a state employee. You have my written comments.

I won't go over them in depth, but I do want to leave you with the story of my second son. I was really lucky, actually, with one person in this room to finally get a good maternity leave with my second son, but nothing will prepare a parent for what it's like when you have to wonder if you just held your baby for the last time.

And that's what happened when my son was only six months old, after I exhausted most of my paid leave with maternity leave and he ended up in the pediatric ICU for three days and then in and out of the hospital for almost a month after that.

And I stayed by my son's side, whether it was in the PICU bed or or at the hospital crib down on the third floor, all throughout that time until I could not ignore the emails and text messages and phone calls that I needed to come back to the office, not because my employer didn't care, but because I was out of paid leave.

And we had to make the unimaginable decision that I had to choose whether or not I was going to leave the side of my child's hospital crib while he was getting IV antibiotics and whether or not we could afford unpaid leave, because when you're in the state system, at least when I was there, if you took unpaid leave, you're not just getting no income, you are also having to pay for your own health premiums when you didn't have the money to do so.

And if you're out full time, you have to pay your employer's healthcare premiums, and that's not even touching the retirement benefits that it might impact. And so I come to you today. You have my written testimony. I have two things for you to consider.

One is that I urge you to consider letting public employees opt out instead of opt in. When you're asking us to opt in, that means that we're going to have to imagine the unimaginable and we're going to have to maybe sit in the hospital room saying, man, I wish I had opted in and had thought about what could go wrong. And secondly, I ask that you bring parents to the table.

Respectfully, I am so glad that there has been a working group working toward this, and Chair Sayama, you have been a huge champion and I appreciate the work that you are doing on this. And yet, there is not a single organization or individual on the working group whose sole kuleana is to bring the voices of parents and our experiences to the table. And so I want to offer to be there for you folks to help with this work.

I know there's a long road ahead of us and there are parents in the community who are willing to show up and help find a good solution that will work for all of us. And so I want to make that offer for you, and I'm here to answer any questions. Thank you very much.

Thank you. Next we have Chloe Pua'ena Vierra-Villanueva, in support.

Aloha, mai kakou. Aloha, Chair Sayama, Vice Chair Lee, and members of the committee. I am a proud mother and early learning professional in strong support of this bill. Some of you might know my story already as I've been here before. I'm happy that this is here again for us, this bill, and I just wanted to add to my testimony that you have is a chapter two to our story.

So I had mentioned before my keiki was in the NICU, we were in and out for about six months, and then three years after that, I left the workforce as an infant toddler specialist which is already in high demand and in high need.

Chapter two last year, we were balancing our son and my father-in-law who passed away, who was sick, and I want to urge everyone who's hearing this, if you're a parent, you're a family member, it's important to raise your voice for your family and be at that table that the previous testifier mentioned to offer our voices. So I just want to mahalo you folks and mahalo everyone here in support and on Zoom.

Thank you. Next we have Leilani Kailiawa in support on Zoom.

Aloha, Chair and members. My name is Leilani Kailiawa. I am here in strong support of this bill because I have lived this reality. This is my third time testifying on this bill. Ten years ago, my infant son was hospitalized in neonatal intensive care unit at Kapiolani Medical Center.

I lived on Hawaii Island, but my baby was on Oahu. To be at his bedside, to give him the nurturing care only a parent can provide, I had to live on another island away from my husband and my two older sons, who were 11 and 13 at that time. There was no paid family leave.

I made an impossible choice. I quit my job. Families should never have to choose between financial survival and being present for a medically fragile child. Being at my son's bedside was not optional. It was essential to his healing, his development, and my role as a mother. HB 2360 is about dignity.

It's about recognizing that caregiving is not a luxury; it's critical care. Paid family and medical leave would ensure that families can show up for one another in moments of crisis without risking everything. I urge you to pass this bill so no family has to make the sacrifices mind did just to care for their child. And mahalo for this opportunity again to testify.

Thank you. Are there any other persons here in this room to testify on this measure? Please-- to the podium and state your name for the record.

Morning, Chair, Vice Chair, committee members. I'm Garrison Kurth for the Department of Taxation. I apologize if you might have called us before. I was just canceling another hearing, but just for the record, we'll stand on our written testimony on administration bill, and I'm here if you have any questions. Thank you.

Thank you. Next.

Aloha, Chair and Vice Chair. My name is Kami Yamamoto. I'm the Executive Director of the Hawaii Workers Center. Throughout the years, we've stood in strong support of paid family leave, and we're here again to express our strong solidarity with the folks who have already expressed the necessity for this bill.

We know that paid family leave will not only benefit people economically, but all around, right? Culturally, socially. And so we're here in support or to express our support of this bill. Thank you.

Thank you. Any other persons here to testify on this measure? On Zoom? Seeing none. Members, any questions? I do have a question for Keopu Reelitz. Thank you for your testimony earlier. You mentioned, or you had a recommendation, as for organizations, specifically for parents to participate in the working group. Did you have a specific recommendation?

There are a group of us parents who have been working together over the last few months. We are not formally-- we have a name, but we are not formally formed, but we do have a group that has been organizing over the last few months that has been specifically about parents' voices, bringing parent voices to the advocacy, and our single issue right now is paid family leave, yes.

Okay. Thank you. Maybe we could discuss that after the hearing for further participation in the working group. Thank you.

Thank you.

Director Butay for DLIR. You noted in your testimony the Legislature last year appropriated $750,000, I believe, for DLIR to conduct an actuarial and legal analysis for a paid family leave program in Hawaii. Can you update this committee about what the progress is for that study and analysis?

So we secured the person who's going to write the RFP proposal and then, you know, once the proposal is done and publish it, then maybe give it a month and evaluate the bids and, you know, the contractor, whoever's going to be selected, will write the report, and hopefully by next legislative session, we'll have the report.

Okay. Thank you for that tentative timeline. Appreciate the work. Thank you, Director. Members, any further questions on this measure? Okay. Seeing none, we'll be moving on to HB 2446, relating to the wage and hour law. Oh, I'm sorry. Before we move on to that measure, members, I do want to note the written testimony that was submitted for HB 2360, relating to paid family leave.

We have written testimony in support from Office of Wellness and Resilience, Hawaii State Commission on the Status of Women, Hawaii County Council District 2, Hawaii State Teachers Association, AAUW, Hawaii Family Caregivers Coalition, Hawaii Alliance of Nonprofit Organizations, Chamber of Sustainable Commerce, also in support.

For oppositions, we have Sheriff Hawaii in opposition. We also have 23 individuals in support, two individuals in opposition. Thank you, members, for that. We'll now be moving on to HB 2446, relating to wage and hour law.

This authorizes the Department of Labor Industrial Relations to establish a community wage theft enforcement partnership program and enter into contracts or memorandums of agreement with community based organizations to enhance outreach, referral and recovery of stolen wages and appropriate funds. Just to testify on this measure. We have Jade Butai, Director for DLIR, with comments.

Thank you, Chair, Vice chair and Committee Members Jade Butai for DLIR. We stand on our testimony offering comments. You know, we understand the concerns and we agree there is more work to do. However, we advocate continued dialogue rather than new rooms or legislation.

Thank you. Next we have Daryl Ascension, individual in support on Zoom not present. Okay. Any persons here in this room, here to testify on this measure, please come to the podium.

Committee. Again, my name is Kami Yamamoto. I'm the Executive Director of the Hawaii Workers Center. So at Hawaii Workers center we organize over 70% of workers in Hawaii that are not organized. Though in the state of Hawaii, we have the highest rate of unionized workers.

Currently the enforcement measure for the wage and hour law is through complaint driven investigations and audits.

But when we conduct our community education, know your workers rights trainings and we've done this training for over 500 workers in the past few years, workers are hearing about wage theft and other violations of workers rights for the very first time and almost immediately after they self identify as a victim of wage theft.

However, there's a statute of limitations, right? So enacting this Bill can really help to broaden and expand the current efforts of DLIR to reach more workers and especially if this program is made mandatory and we can actually invest more resources and time into building this out.

So while we primarily organize COPA Micronesian workers and Filipino workers, we want to express our support for this Bill because it'll support the workers of Hawaii as a whole. Local workers, migrant workers. So really ask you to support this measure and thank you for doing.

Thank you. Any other person to testify on this measure.

Good morning everyone. Chair Sayama, Vice Chair Lee Capella and Rep Oda. My name is Misty Pegram. I am a restaurant worker.

I'm also a Member of the Hawaii Workers Center and I am here to support House Bill 2446, which aims to create a wage theft enforcement program in Hawaii to give more context as to why I do support this Bill. I worked in food service since I moved here to Hawaii in 2019 and many cases.

I'm not the only one. But I've been experienced having been told to clock out even when work is done. I have been working straight almost day long shifts without a break. I've been paid lower than what I should have and had I not noticed it on my paycheck it would have gone unnoticed.

And that is just like some experiences of what food service workers, of what Hawaii's workers experience on the regular. And without a very systematic way to educate to raise awareness about this issue, a lot of issues will go unnoticed.

And so I have known even folks who cannot even access their pay stubs and so how are they supposed to even check if their wages are so? These are but few, many examples.

And as of right now I also currently work at two restaurants, one of them being Maxis in Manila which folks may know experienced a large wage theft case a couple years ago where they were able to receive over $300,000 in stolen wages.

And you know, my co workers who are primarily Filipino immigrants, which are one of the most vulnerable communities alongside COPA migrants to workers rights violations. You know, their story is why I believe and support this Bill.

And if we're being frank, what was returned to them is only a small part of what was taken from them in the first place. And so I encourage all of our legislators here today to support the passage of this Bill to support and defend Hawaiis workers. Thank you.

Thank you. Any other persons here to testify on this measure?

There was no mic here. My name is Sergio Alcubilla. I'm with the ACLU of Hawaii and we are here in support. Good morning chair, vice chair and just thank you very much for this opportunity to provide some testimony in support of this Bill. One of my favorite books. Just really quick, just want to share this quote.

It says you are doing many things here in this struggle. You are demanding that the city will respect the dignity of labor. So often we overlook the work and the significance of those who are not in professional jobs, of those who are not so called big jobs.

But let me say to you tonight that whenever you are engaged in work that serves humanity and for the building of humanity, it has dignity and has work. One day our society must come to see this and one day our society will come to respect this annotation worker if it is to survive.

For the person who picks up our garbage, in the final analysis, it is just as significant as the physician. So this is from Martin Luther King's book All Dignity as Labor. Just a few weeks ago we marched in Waikiki in celebration of Martin Luther King Day.

And I think one aspect of MLK that we forget is on the aspect of economic justice. And that's why for the ACLU we want to support this Bill because justice, you can't have civil rights without economic justice, without labor rights. And this Bill is important and significant.

You know, the person that cleans this building, our janitors, are just as important as the Governor at the top on the fifth floor, you know, the security guard that welcomes us in.

You know, if they don't have, if they're not getting paid wages that day or if they have an issue with wage theft, you know, who are they going to turn to? And I'm grateful of course for the Department of Labor for being here.

But I want to say that this Bill, you know, and I appreciate the comments, it doesn't supplant that. You know, it's meant to supplement that and to help those efforts, you know, in this time that we're living in this political climate.

You know, I'm worried for folks that are working the low paying jobs, you know, are they going to report issues of wage theft to their employer if they have issues of status or if they have, you know, family Members that are, that they're worried about? And those are the ones that I'm worried about.

And it's important that we pass that. So thank you again for this opportunity and you know, I hope this Bill can get out of this Committee. Thank you. Thank you.

Okay. Any other persons here to testify on this measure? Seeing none. Members we do have written testimony support from the Boyd Appleseed Center for Law and Economic Justice, Rhymetto organization in support, Hawaii Coalition for Immigration Rights also in support, and 11 individuals writing in support as well Members. Any questions on this measure?

I have a question for Dr. Butay, DLIR. Thank you again. So in your original testimony, you note that the DLIR's Wage Standards Division currently provides educational outreach services to the general public relating to wage theft. This is also true, you noted for the intake and certification branch also assists workers with building complaints about unpaid wages.

Can you, you know, describe a little bit more in detail what these outreach efforts look like in practice?

So we, you know, the, the intake, you know, we have an intake certification and certification branch from their weight standards division. You know, they conduct, you know, outreach with the general public.

You know, they've met with some of the group Hawaii Workers Center and other community organizations presentations and informational materials and laws enforced by us, the wage and our laws, the payment of wages, prevailing wage requirements and also child labor.

Generally speaking, how often does the wage standards division do this outreach? Like once, like how many times a year?

Four times a year.

Four times a year. And so this outreach, like you said you mentioned, coordinating the Hawaii Workers Center, is this doing presentations?

Are you outreach like giving workers employees, you know, pamphlets or resources is to educate them about their rights and complaint systems. What does that look like?

Yeah, that we, we developed it and it also includes, you know, people who have LEP or eminent English proficiency, you know, provide interpretations services at no cost.

And then let me just, you know, in terms of the jurisdiction, you know, under the FLSA, the Federal Labor Standards Act, you know, when any establishment that makes over $500,000 or more in gross annual sales or they do any interstate commerce that's under federal jurisdiction and they also interpret interstate commerce very broadly using computer, credit card processor, Internet, owner, fax.

So and then the ones that we enforce are the ones that are below $500,000 in gross sales. So there's no. They don't do any interstate activity. So these are typically mom and pop restaurants, small convenience stores, or similar local establishments. So I mean, we have a MOU with the Fed.

And so we cannot, you know, order, you know, them around or order businesses that does not are not under our jurisdiction. Okay.

Is there anything that prevents DLIR from partnering with community organizations like the Hawaii Workers center to do these kind of educational outreach programs?

No, we. There's no, you know, there's nothing that prevents us. I mean, that's why I said, you know, advocate continued dialogue rather than passing a law.

Okay, thank you. No further questions from me. Members, any further questions? Seeing none, we'll be moving on to HB 2116, relating to grants.

This appropriates funds to the Office of Community Services of the Department of Labor Industrial Relations to award grants for fiscal years '26-'27 to nonprofit organizations that expand or create new opportunities for residents needing to meet new community engagement requirements to qualify for federal programs. Establishes an evaluation and selection committee to oversee the awarding of grants.

Requires an applicant for a grant to provide certain documentation on activities that qualify for community agreement—community engagement—hours to qualify for the grant. Appropriate funds for positions in LCS and for the Department of Military Generals to assist OCS in reviewing contracts and monitoring costs.

First to testify on this measure, we have Ray Domingo, Executive Director for OCS, in support.

Chair, Vice Chair, Members of the Committee, I submitted a written testimony and I'm available for questions.

Thank you. Next, we have Mike Yuyan, Director for Public Policy for Aloha Care, in support on Zoom.

Not present.

Not present. Okay, are there any other persons here to testify on this measure? On zoom? Okay. Seeing none. Okay, Members, any questions? Seeing none. We'll be moving on to HB 2383 relating to the Workforce Pell Grant Program.

This establishes a statewide framework for the implementation of the federal Workforce Pell Grant program to provide financial aid for certain short term workforce education and training programs. Establishes a Workforce Pell Grant Program approval Committee within the Workforce Development Council. First to testify on this measure, we have Carlotta Amyrno, a Director for OIP with comments. Okay. Not present.

Next we have Candace Park, Deputy Attorney General for the Department of Attorney General's office, with comments.

Good morning. Chair Sayama, Vice Chair Lee, members of the Committee. Due to the involvement of the University of Hawaii that this Bill proposes, we suggest indicating the law as a matter of statewide concern in order to avoid a constitutional issue. Available for questions. Thank you.

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

Thank you. Chair, Vice Chair and Committee Members. Jade Butay for DLIR. We stand on our testimony respectfully offering comments. If the goal is to move forward successfully with Workforce Pell Grant, it's critical that the administering entity fully understands the operational compliance and risk landscape. Experience in this area matters.

This is not a plug and play, is not something someone can pick up overnight. Thank you for the opportunity.

Thank you. Next we have Deborah Halbert. Sorry. VP of Economic Strategy, University of Voice Systems in support.

Aloha Chair Sayama, Vice Chair Lee, Members of the Committee, my name is Alan Rosenfeld. I'm the Associate Vice President for Academic Programs and Policy, standing in for Vice President Halbert. We stand on our testimony as submitted in support of the intent of the Bill, and I'm happy to answer any questions you might have.

Thank you. Are there any other persons here to testify on this measure? Seeing none. Members, we do have written testimony with comments from OIP in support, from Workforce Development Council and the Chamber of Commerce Hawaii Members. Any questions? Yes, Representative Garrett.

I think it's best for the Department of Labor and Industrial Relations. Morning, Director. Can you share with the Committee what the status or the timing is of the federal rulemaking that would implement this program? Best guess.

Whenever we've spoken with our US DOL or because the ruling, the rulemaking is done by the DOE, and then the US DOL is, you know, providing the technical and the support, but, you know, as if it's soon. I don't know how you. What's the definition of soon? But that's what we've been hearing.

Soon. Okay. The reason I ask is because there is a 7-1-26 deadline or implementation date for this program. So the intention of introducing this Bill is to try to make sure we had some regulatory framework in advance of that.

So is it your belief that we could wait until the 2027 session after we see what those federal rules are like, or is that going to impact the Department or the Workforce Development Council in any way?

I mean, it's already. We already have the authority to do, you know, to act something. But until we, you know, given the uncertainty of shifting policies, I don't know about overhauling the whole system because until. We see what the. What the guidelines is, I don't think we should make any concrete decision.

Okay. Are you familiar with the NGA working group that the Workforce Development Council referenced in their testimony?

Yeah, we, you know, we participate in the National Governance Association.

And how is that going and what Is the end result for the end expected outcome is the part of that process.

Well, they've been advocating to, you know, be more proactive, but until you, you know, because like, until you really know what your what the parameters, I don't think you should make any, you know, definite because then, you know, you could, you know, be wasting a lot of time and effort.

You're talking about the NGA process being a waste of time?

Or no, I'm not saying it's a waste of time, but making concrete plans until we really know what is the, what's the rule?

Okay, so you're saying

It's pretty much. I think you should continue having conversations, but I don't think you should, you know, finalize anything.

Okay. Thank you, Director. Thank you, Chair.

Thank you. Members, any further questions on this measure? Seeing none, we'll be moving on to the last item in the agenda, HB 1874. This is relating to plant-based food and drinks.

Requires the Department of Corrections and Rehabilitation, Accounting and General Services, and Health to establish a plant-based by default program for food and drinks offered at state operated prisons, state licensed hospitals, and government sponsored events, part of the annual reports to the Hawaii Climate Change Mitigation and Adaptation Commission.

First to testify on this measure, we have Director Tommy Johnson from Department of Correction and Rehabilitation, in opposition.

Good morning, Chair Sayama, Vice Chair. Morning. Frank Young from Department of Corrections Rehabilitation, the Correctional Program Services Administrator standing in for Director Johnson who apologizes for not being able to be here. You have our written testimony. Department stands on—sorry, our written testimony in opposition to the Bill. We already have an opt in program in existence.

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

Thank you. Next, we have Comptroller, Keith Regan from DAGS, with comments.

Morning, Chair, Vice Chair, Members. Thank you for the opportunity to be here. Keith Regan, Comptroller and Director of the Department of Accounting and General Services. We stand on our written testimony providing comments.

Just wanted to add a couple of quick things, just that, you know, while DAGS appreciates being mentioned in this particular piece of legislation, just wanted to just reiterate that statutorily, DAGS' responsibilities focus on financial management, risk management, facilities, and information technology, not necessarily food service or dietary programs.

And so, we do have some concerns about having to track, manage, report on those types of things when it's technically, I mean, of course if this passes, it becomes part of our responsibility, but as it stands now, we don't currently have those types of programs in place.

So, we would, if it does go forward, just ask some consideration in terms of resources and support in that effort. Thank you very much.

Thank you. Next, we have Victoria Anderson, individual in support on Zoom.

Aloha, Committee Members. Thanks for this opportunity to testify on this important Bill. I'm Victoria Anderson, retired UH professor and volunteer for the Plant-Based Task Force. This Bill is a quadruple win for health, planetary health, decreasing animal suffering, and reducing cost to taxpayers. Plant-based by default may be a new concept to many of us.

It simply shifts the pre-selected option to a plant-based meal, although a person can still request an animal-based meal. This maintains an individual's choice but is inclusive of people whose religious or ethical convictions don't allow some or all animal foods to as in many Buddhist, Jewish, or Muslim traditions.

It's also inclusive of those who have health-based restrictions like lactose intolerance. This policy saves money in at least four ways. One, food costs drop. Staples like beans, lentils, rice, veg, and tofu cost far less than meat. Two, health care costs drop. Incarcerated people and hospital patients have high rates of diabetes, hypertension, heart disease, and obesity.

These all improve with plant rich diets, reducing medication use, ER visits, etc. Three, operational costs drop. Plant rich meals require less refrigeration, reduce food safety risks, and lower labor and equipment needs. Finally, reducing meat consumption greatly lowers climate related costs and aligns with Hawaii's climate commitments. Now, other states show evidence that this works.

New York City's hospital system adopted it in 2022 and since then, over 60% of patients have decided to go with the plant-based menu. Satisfaction has exceeded 90% and the system has saved millions annually. So, what seems like just a small turn in shifting the default menu to healthier options can have huge effects.

Hawaii has the chance to lead the nation by applying this proven cost saving model. Thanks again for your time. Please pass this.

Thank you. Are there any other persons here to testify on this measure? Seeing none. Members, we do have written testimony in support from Climate Protectors Hawaii, Hawaii Climate Action Coalition, Hawaii Food Policy, 350 Hawaii, and 13 individuals in support. Members, any questions on this measure? Okay, seeing none. We'll be taking a short recess.

Recess.

Calling the House Labor Committee back to order for decision-making. First we have HB 2320 relating to the State Fire Council will just be adding a defective date of July 1st, 3000 and passing this forward. Members, any comments? Seeing none, Vice Chair for the vote.

[Roll Call]

Thank you. Moving on to HB 2514 related to state construction projects. While I do acknowledge the challenges relating to the delays in public projects and the subsequent overruns for the cost of these projects, I'm not too sure. I don't believe that this Bill is the appropriate vehicle to address those concerns.

I think rather than going and establishing an entire new bureaucratic division within DAGs, we should be addressing the problems in the respective CIP divisions within each Department as well as the permitting process within each counties, which I believe the House does have a working group speed task force trying to address those issues currently.

So I will be deferring this measure. Next, we have HB 2255 relating to Department of Attorney General. My recommendation is to make technical amendments needed for prior consistency style defecting the date to July 1st, 3000 Members. Any question? Any comments? See none Vice Chair for the vote.

Thank you, Chair. Voting on hospital 2255. Chair's recommendations to pass with amendments. Are there any no votes. Votes with reservations. Thank you, Chair. Recomendations been adopted.

Moving on to HB 2249 relating to civil service exempt from positions within the Department of Accounting and General Services. We'll be pushing this forward with the defective date 7-1-3000. I would like to note in the community report for the Judiciary and Hawaiian Affairs Committee to confer with the Attorney Generals regarding concerns for the bill's title.

We did get some concerns from our drafting agency for this particular measure. So with that we'll be passing it forward with amendments, Vice Chair for the vote.

Thank you, Chair. Voting in House Bill 2249. Chairs or conditions pass with amendments. No votes? Votes with reservation? Thank you, Chair. Recommendation has been adopted.

Thank you. Next, we are moving to HB 2360 relaying to paid family leave. First, I'd like to acknowledge, you know, all the great work that the stakeholders have been doing during the interim. We really appreciate their engagement on that.

Also want to thank all the people who came to testify on this measure, acknowledging this is an incredibly personal issue for the State of Hawaii and for all the working families. I do also want to acknowledge that DLIR currently has an actuarial legal analysis study underway.

So we will be waiting on that, the conclusion of that analysis as we move forward this session and for the next. For now, though, I would like to pass this measure forward with a number of amendments. We'll adopt amendments offered by DOE Tax and their written testimony.

We'll also amend the Bill to restructure the proposed PFL program to exist in tandem with TDI Temporary Disabilities Insurance rather than absorb it. We'll also make technical amendments needed for clarity, consistency and style and insert a Defective date of July 1st you Members, any comments on this measure? Seeing none. Vice Chair for the vote.

Thank you, Chair Voting on House Bill 2360. Chair's recommendation is to pass with amendments. Are there any no votes? For votes of reservation?

Yes, Kong, reservations.

Representative Kong with reservations. Thank you, Chair. Recommendations has been adopted. Thank you.

Moving on to HB21 so HB2446 relating to wage and hour law. We'll continue to push this measure forward to keep a conversation going between DLIR and the respective nonprofits and community organizations.

You know, I did take a look at the Wage Standards Division's website relating to wage theft and other resources and found it to be a little lacking and hope that DLIR could continue their partnership with various community organizations and improve the systems that they have in place for employees to report certain violations of employee wage theft.

For this Bill, we'll just insert defective date of July 1st, 3000 and pass it for Members. Any comments Seeing none. Vice Chair for the vote.

Thank you, Chair. Voting on House Bill 2446. Chair's recommendation is to pass with amendments. Are there any no votes? Reservations? Thank you, Chair. Recommendation has been adopted.

Moving on to HB 2116 relating to grants, we'll be adopting amendments proposed by the Office of Community Services to extend this program from one to two years. We'll add technical amendments needed for clarity, consistency and style and insert Defective date of 07-01-3000. Members. Any comments? Seeing none. Vice Chair for the vote.

Thank you, Chair. Voting on House Bill 2116. Chair's recommendations to pass with amendments. Any no votes? Any reservations? Thank you, Chair. Recommendation has been adopted.

Thank you. Moving on to HB 2383 relating to workforce Pell Grant program for this. As was noted in the testimony, the Federal Administration has yet to complete its rulemaking process. So I would like to encourage wdc, UH and other stakeholders to deliberate on an administrative structure to draw down these federal funds from the Workforce Pell Grant Program.

So I would like to continue to push this measure four forward. Adding amendments. First, we'll add OIP recommended amendments to ensure protection regarding confidentiality. We'll also add eight Attorney General's amendments to add a statement identifying this Bill as a law of statewide concern.

We'll add amendments to the Bill to broaden the scope of the program to include non UH entities to qualify for participation. This removes reference of University of Hawaii Systems.

On page 2, lines 13, page 5 lines 3, page 10, lines 1011 and 15, page 11, lines 3 and 14, we will remove the phrase at least from the definition of in demand, industry, sector or occupation. And going back to the previous amendment relating to broadening the scope, removing the term University of Hawaii where it's appropriate.

We'll also be replacing the reference to University of Hawaii with participating institutions. We'll include the President of the Hawaii Pacific University and Chaminan University for president's designee in approval. In the approval Committee, we'll add technical amendments needed for clarity, consistency and style and insert defective date July 1, 3000 Members. Any comments? Seeing None. Vice Chair for the vote

Thank you. Chair Voting on House Bill 2383. Recommendations to pass with amendments. Any no votes Votes of observation? Thank you Chair Recommendations been adopted.

Thank you. Finally, HB 1874 related to plant based food and drinks. Given the testimony from the departments, I believe it is unnecessary to have the Legislature mandate a plant based diet or a plant based food and drinks for these respective departments. And so I will be deferring this measure today. Thank you everyone. This hearing is adjourned.