Honolulu, Hawaii



RE:    H.B. No. 810

       H.D. 1

       S.D. 1




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii




     Your Committee on Judiciary and Labor, to which was referred H.B. No. 810, H.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to allow collective bargaining parties to resolve impasses related to Hawaii Employer-Union Health Benefits Trust Fund (EUTF) contribution disputes through binding arbitration.


     Your Committee received testimony in support of this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and University of Hawaii Professional Assembly.  Your Committee received testimony in opposition to this measure from the Department of Budget and Finance and Office of Collective Bargaining.


     Your Committee finds that during difficult collective bargaining negotiations, consideration of EUTF contributions as part of the total pay package may assist public employers and exclusive representatives of collective bargaining units to resolve disputes.  Your Committee notes that existing law requires contribution amounts to be cost items subject to legislative approval and further notes that, as stated in Conf. Com. Rep. No. 89-84 on S.B. No. 878, Regular Session of Hawaii 1984, a previous Legislature specified health fund contribution amounts as cost items for which the Legislature retains the authority to approve in tentative agreements.


     Accordingly, your Committee has amended this measure by:


     (1)  Restoring statutory language that states it is strictly understood that bargaining unit members cannot strike on the issue of contribution amounts made by the State and counties to the EUTF; and


     (2)  Inserting an effective date of January 7, 2059, to encourage further discussion. 


     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 810, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 810, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.


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