STAND. COM. REP. NO. 962

Honolulu, Hawaii

RE: S.B. No. 183

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Judiciary, to which was referred S.B. No. 183, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to:

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

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

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

Your Committee received testimony in opposition to this measure from the Department of Budget and Finance.

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

Your Committee finds that existing law does not provide a dispute resolution mechanism to address the employee-employer share of monthly contributions to the Hawaii Employer-Union Health Benefits Trust Fund (EUTF), effectively rendering the negotiable item one-sided and employer controlled. Your Committee further finds that the cost burden of health insurance for many public employees is magnified by the high cost of living in the State. This measure enables public employees to negotiate employer contributions to EUTF by establishing a dispute resolution mechanism that allows for arbitration and strikes.

As affirmed by the record of votes of the members of your Committee on Judiciary that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 183, S.D. 1, and recommends that it pass Third Reading.

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

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KARL RHOADS, Chair