HB 2271

HOUSE OF REPRESENTATIVES
H.B. NO.
2271
THIRTY-THIRD LEGISLATURE, 2026
H.D. 2
STATE OF HAWAII
S.D. 1
C.D. 1
A BILL FOR AN ACT
MAKING EMERGENCY
APPROPRIATIONS FOR PUBLIC EMPLOYMENT COST ITEMS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
���� SECTION 1.�
This Act is recommended by the governor for immediate passage in
accordance with section 9 of article VII of the Constitution of the State of
Hawaii.
PART II
���� SECTION 2.�
The legislature finds that the appropriation of moneys for collective
bargaining cost items associated with labor grievances is necessary to support
the fair and timely resolution of employment disputes, maintain labor
stability, and ensure the continued effective operation of government services.
�The legislature further finds that
funding of these cost items is in the public interest and necessary to carry
out the State's obligations under applicable collective bargaining agreements. �The legislature additionally finds that the
State may be subject to potential liabilities arising from labor grievances and
that, in certain circumstances, it is prudent to appropriate funds in
anticipation of the resolution of such grievances. �The legislature also finds that such
appropriations must not be construed as establishing liability, resolving
disputes, or infringing upon the authority of the executive branch to
negotiate, settle, or otherwise resolve labor grievances.
���� Further, the legislature finds that the
university of Hawaii and certain departments, have used their existing fiscal
year 2025-2026 budget to pay collective bargaining cost items related to
temporary hazard pay in fiscal year 2025-2026. �This action caused a reduction in funds
available for departmental operations for the balance of fiscal year 2025-2026.
���� To address the anticipated departmental
funding shortfalls due to the temporary hazard pay payouts, a short-term
general fund loan will be deposited into a department of budget and finance
trust account. �The departments must reclassify
the collective bargaining cost items related to temporary hazard pay
expenditures from their fiscal year 2025-2026 operating general fund
appropriations to the trust account, thereby freeing the appropriations in
those operating budget accounts. �Upon
enactment of this Act and the transfer of appropriated funds to the
departments, the departments must reverse the reclassifications so that the
expenditures are restored to their original operating budget accounts, making
the trust account whole.
���� Accordingly, the purpose of this Act is to:
���� (1)� Make
emergency appropriations for collective bargaining cost items for the members
of bargaining units (1) and (10) and their excluded counterparts to resolve
issues related to temporary hazard pay for fiscal year 2025-2026;
���� (2)� Authorize
the use of the general fund appropriations made in this Act to restore the
temporary reclassifications for temporary hazard pay payouts to the appropriate
departments to provide for the repayment of the general fund loan; and
���� (3)� Specify
that emergency appropriations made under Act 29, Session Laws of Hawaii 2025,
do not lapse until June 30, 2027.
PART III
���� SECTION 3.�
There are appropriated or authorized from the sources of funding
indicated below to collective bargaining statewide (BUF 102) the following sums
or so much thereof as may be necessary for fiscal year 2025-2026 to fund
collective bargaining cost items associated with grievances filed under
agreements negotiated with the exclusive representative of collective
bargaining units (1) and (10), and for their excluded counterparts:
��������������������������������� FY
2025-2026
General
funds�������������������� $66,795,019
Interdepartmental
transfers������� $306,532
Revolving
funds������������������ $203,736
���� The sums appropriated shall be allotted by
the director of finance to the appropriate state departments for expenditure by
the appropriate state departments for the purposes of this section; provided
that:
���� (1)� The
appropriate state department may encumber funds appropriated pursuant to this
section for the purpose of satisfying a potential obligation arising from the
labor grievance; provided that any such encumbrance shall not constitute an
obligation or expenditure of funds; and
���� (2)� The
department may record an obligation in accordance with applicable accounting
and fiscal procedures, subject to allotment and release by the director of
finance.
���� SECTION 4.�
There are appropriated or authorized from the sources of funding
indicated below to collective bargaining statewide (BUF 102) the following sums
or so much thereof as may be necessary for fiscal year 2025-2026 to fund
collective bargaining cost items associated with grievances filed under
agreements negotiated with the exclusive representative of collective
bargaining units (1) and (10), and for their excluded counterparts, including
anticipated settlement agreements, arbitration awards or orders, or court orders
for the department of education related to temporary hazard pay:
��������������������������������� FY
2025-2026
General
funds�������������������� $28,468,723
Revolving
funds������������������ $1,299
���� The sums appropriated shall be expended by
the department of education for the purposes of this section; provided that:
���� (1)� No
funds shall be expended unless and until a legally binding obligation to pay
has been incurred by the State, as evidenced by a fully executed settlement
agreement, duly authorized by the State, arbitration award or order, or court
order.� Any settlement agreement
described in this paragraph shall be approved in a form prescribed by the
department of the attorney general, and shall be executed in accordance with
applicable laws;
���� (2)� The
director of finance shall allot and release funds appropriated under this
section only upon written notification by the department of education that the
conditions set forth in paragraph (1) have been satisfied;
���� (3)� Nothing
in this section shall be construed to supersede or impair the authority of the
executive branch, including the authority to negotiate, settle, or otherwise
resolve labor grievances, or to determine whether and on what terms to enter
into any settlement agreement; and
���� (4)� The
department of education may encumber funds appropriated pursuant to this
section for the purpose of satisfying a potential obligation arising from the
labor grievance; provided that:
��������� (A)� Any
such encumbrance shall not constitute an obligation or expenditure of funds;
and
��������� (B)� Upon
the occurrence of the condition under paragraph (1), the department of
education may record an obligation in accordance with applicable accounting and
fiscal procedures, subject to allotment and release by the director of finance.
PART IV
���� SECTION 5.�
Funds appropriated or authorized by section 3 shall be allotted by the
director of finance to the appropriate state departments for expenditure in
fiscal year 2025-2026 for the purposes of this Act, including the repayment of
general fund loans by the general fund appropriations made in this Act, which
shall be deemed to be an authorized expenditure under the general fund
appropriations made in this Act.
���� SECTION 6.�
Neither this Act nor the appropriations made in this Act shall be
construed as an admission of liability in any arbitration, administrative
proceeding, or court, nor as a legislative determination of the merits of any
grievance or related litigation, nor as authority for the legislature to
resolve, settle, or adjudicate any grievance or related litigation.
PART V
���� SECTION 7.� Act 29,
Session Laws of Hawaii 2025, is amended by amending section 11 to read as
follows:
���� "SECTION 11.� Funds appropriated or authorized by this Act that
are not expended or encumbered by June 30, 2026, shall not lapse as
of that date[[.]]; provided that any such unexpended or unencumbered
funds shall remain available for expenditure until June 30, 2027."
PART VI
���� SECTION 8.�
Salary increases and cost adjustments provided in this Act for any
officer or employee whose compensation is paid, in whole or in part, from
federal, special, or other funds shall be paid wholly or proportionately, as
the case may be, from the respective funds; provided that if the respective
funds are unable to support such payments, appropriations from other means of
financing may be used with the approval of the governor.
���� SECTION 9.�
Notwithstanding any provision of this Act, with the approval of the
governor, the director of finance may transfer unrequired balances from the
appropriated funds as may be available between sections 3 and 4 of this Act as
necessary.
���� SECTION 10.�
Funds appropriated or authorized by this Act that are not expended or
encumbered by June 30, 2026, shall not lapse as of that date; provided that any
such unexpended or unencumbered funds shall remain available for expenditure
until June 30, 2027.
���� SECTION 11.�
Statutory material to be repealed is bracketed and stricken.� New statutory material is underscored.
���� SECTION 12.�
This Act shall take effect upon its approval.
Report Title:
Public Employment Cost Items; BU-1 and BU-10; Emergency
Appropriation
Description:
Makes emergency appropriations for collective bargaining
cost items for the members of bargaining units (1) and (10) and their excluded
counterparts to resolve issues related to temporary hazard pay for fiscal year
2025-2026.� Authorizes the use of the
general fund appropriations to restore the temporary reclassifications for
temporary hazard pay payouts to the appropriate departments to provide for the
repayment of the general fund loan.�
Specifies that emergency appropriations made under Act 29, Session Laws
of Hawaii 2025, do not lapse until June 30, 2027.� (CD1)
The summary description
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not legislation or evidence of legislative intent.