STAND. COM. REP. NO.  361-16

Honolulu, Hawaii

                , 2016

RE:   H.B. No. 2012

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Labor & Public Employment, to which was referred H.B. No. 2012 entitled:

"A BILL FOR AN ACT RELATING TO COLLECTIVE BARGAINING,"

begs leave to report as follows:

The purpose of this measure is to:

     (1)  Specify that the benefits of the Hawaii Employer-Union Health Benefits Trust Fund are subject to negotiation; and

     (2)  Repeal the role of the Legislature in determining a public employer's contribution rate in the case of a bargaining impasse and making the decision of an arbitration panel final and binding.

The University of Hawaii Professional Assembly; United Public Workers, AFSCME Local 646, AFL-CIO; Hawaii Fire Fighters Association, Local 1463, IAFF, AFL-CIO; and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO supported this measure.  The Department of Budget and Finance opposed this measure.  The Department of the Attorney General; Department of Education; Office of Collective Bargaining; University of Hawaii; and Department of Human Resources of the City and County of Honolulu offered comments.

     Your Committee has amended this measure by:

     (1)  Restoring the current statutory proviso that arbitration shall not be available to resolve impasses or disputes regarding State and county contributions to the Hawaii Employer-Union Health Benefits Trust Fund;

     (2)  Restoring current statutory language establishing the Legislature's role in resolving impasses related to employer contribution amounts;

     (3)  Changing the effective date to July 1, 2091, to encourage further discussion;

     (4)  Including a sunset date of June 30, 2017; and

     (5)  Making technical nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2012, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2012, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor & Public Employment,

____________________________

MARK M. NAKASHIMA, Chair