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GM 1133

Informing the Legislature that on May 26, 2026, the Governor signed the following bill into law: HB2271 HD2 SD1 CD1 (ACT 033).

2026 Regular Session

Provides emergency funding to cover temporary hazard pay and related bargaining costs for FY 2025–2026, while preserving executive authority and avoiding new liability.

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Bill Summary · GM 1133

Summary of GM 1133 (HB 2271, HD 2, SD 1, CD 1) — Act 033 (2026)

What this bill does (main purpose)

  • Makes emergency appropriations to cover collective bargaining cost items related to temporary hazard pay for fiscal year 2025-2026.
  • Allows the use of general fund appropriations in this Act to restore reclassifications tied to temporary hazard pay payouts, ensuring the ability to repay a general fund loan.
  • Extends the lapse date for certain emergency appropriations related to Act 29, Session Laws of Hawaii 2025, from 2026 to June 30, 2027.
  • Clarifies that these emergency appropriations do not establish liability or prejudice the executive branch’s authority to negotiate or settle grievances.

Key provisions and changes

  • Part II: Findings and purpose
    • Recognizes the need to fund collective bargaining cost items arising from labor grievances to support timely and fair dispute resolution, labor stability, and ongoing government operations.
    • States that funding is for agreements with units (1) and (10) and their excluded counterparts, specifically addressing temporary hazard pay for FY 2025-2026.
    • Indicates these appropriations are not an admission of liability or a shift in executive authority; they are to address anticipated shortfalls caused by temporary hazard pay.
  • Part III (Funding for statewide collective bargaining costs)
    • General funds: $66,795,019
    • Interdepartmental transfers: $306,532
    • Revolving funds: $203,736
    • These funds are for FY 2025-2026 to cover grievances and related settlements/arbitration for units (1) and (10) and their excluded counterparts.
    • Provisions on encumbrance and accounting: departments may encumber funds to satisfy potential obligations, but such encumbrances do not themselves create obligations or expenditures until conditions are met.
  • Part IV (Education-specific funding)
    • General funds: $28,468,723
    • Revolving funds: $1,299
    • Funds to be expended by the Department of Education for grievances related to temporary hazard pay.
    • Conditions: no funds expended until a legally binding obligation exists (settlement, arbitration award, or court order); releases by the Director of Finance only after conditions are satisfied; DOE authority to encumber funds limited by the same safeguards.
    • Also preserves executive branch negotiation/settlement authority.
  • Part V (Allotment and repayment)
    • Funds are to be allotted by the Director of Finance for expenditure in FY 2025-2026, including repayment of general fund loans authorized by this act.
  • Part VI (Non-liability and non-preemption)
    • Explicitly states the act does not constitute liability admission or legislative direction on grievances or disputes.
  • Part VII (Amendment to Act 29, SLH 2025)
    • Extends the non-lapse period for funds: unexpended or unencumbered funds under Act 29 shall not lapse until June 30, 2027 (previously lapsed earlier).
  • Part VIII–IX (Administrative and transitional provisions)
    • Salary adjustments and funding from other funds, if necessary, require governor approval.
    • Governor authorization for transferring unneeded balances between sections to manage funding as needed.
  • Effective date
    • Takes effect upon approval (Act signed May 26, 2026).

Who is affected

  • State departments statewide (collective bargaining units 1 and 10 and their excluded counterparts) for FY 2025-2026.
  • Department of Education, for grievances related to temporary hazard pay.
  • Government employees represented by the affected bargaining units and related personnel benefitting from temporary hazard pay within the fiscal year.

Procedural and timeline aspects

  • Emergency nature: recommended for immediate passage by the governor, with fast-tracked implementation.
  • Approved and signed into law on May 26, 2026 (Act 033).
  • Provisions specifically address FY 2025-2026 funding timelines, with certain funds allowed to carry beyond June 30, 2026 (up to June 30, 2027 for lapse provisions).
  • Creates a framework for temporary hazard pay costs and associated settlements/arbitrations while preserving executive branch negotiation authority.

Practical impact and considerations

  • Provides a targeted fiscal solution to fund unresolved grievances and hazard pay in the short term, reducing risk of service disruption.
  • Establishes accounting and encumbrance safeguards to avoid creating new liabilities or binding obligations prematurely.
  • Aligns DOE and general government operations with funding streams while maintaining flexibility to adjust as settlements or court orders occur.

Compiled from official sources — confirm details with the bill’s official record.

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