§77-4 Adoption of compensation plan. (a) All directors shall meet biennially in joint conference at the call of, and at such time and place decided by, the state director or the director's authorized representative to review the general condition of the compensation plan and which shall include: the identification and price of bench mark classes; policies and standards; rules and regulations; and any and all areas in the plan which are not inconsistent with the intent and purpose of this chapter. Representatives of organizations representing employees and interested persons may attend and participate in the deliberations, but not vote. The conference of personnel directors shall hold as many meetings as are necessary to accomplish the above-stated purposes and to resolve any differences. Decisions shall be made from majority vote of all directors. If any director is absent, the director may authorize the director's designated representative to act in the director's stead. The provisions of this section shall not apply to the compensation for positions referred to [in] section 77-5, commonly known as blue-collar positions.

(b) The conference shall compile its views and recommendations, including the tentative compensation plan, to be completed before October 15 of every odd-numbered year and shall be submitted to the appeals board. The appeals board shall upon receipt see to it that the tentative compensation plan is published and that copies, together with the view of the conference of directors, are available to interested parties.

(c) There shall be an appeals board composed of one civil service commission member from each jurisdiction who shall be appointed by the governor. Alternate members from each jurisdiction shall also be appointed by the governor. The term of two of the incumbents shall expire on June 30, 1964, and the term of the other three shall expire on June 30, 1966. Thereafter, succeeding members and their respective alternates shall be appointed for a term of two years. The cost of operations thereof shall be met by state legislative appropriations.

Notwithstanding any other laws to the contrary, each member of the appeals board shall receive $10 per day for each day on which work is done by them in connection with authorized activities of the board, the cost thereof to be met by state legislative appropriations for the appeals board.

The appeals board shall meet biennially to receive recommendations and comments relating to the compensation plan. The board shall schedule hearings for pricing appeals from affected persons and parties and may hold public hearings as well. At least one biennial appeal hearing shall be held in each jurisdiction. All petitions for appeal shall be filed with the appeals board within twenty days from the date of public notice of the tentative compensation plan. Notice of the time and place of the appeal hearings shall be given in the jurisdiction at least ten days prior to the hearings.

The appeals board shall function independently of the conference of personnel directors and the several civil service departments of the State and the counties, but may procure office facilities and clerical assistance from them. The board may appoint technical and other employees not subject to chapters 76 and 77, that it deems necessary. Neither the appeals board nor any of its members or staff shall consult with any member of the conference of personnel directors on any matter pending before the board except on notice and opportunity for the appealing employee or the employee's representative to participate.

The appeals board may appoint a qualified hearings officer, not subject to chapters 76 and 77, and invest the hearings officer with power to hear the appeals and report thereon to the appeals board. The appeals board shall adopt policies and standards relative to compensation. The appeals board may make rules and regulations for the conduct of appeal hearings and public hearings.

(d) Based on the policies and standards referred to in subsection (c), the appeals board shall make whatever adjustments to the affected classes where the appeals have been filed in the compensation plan that are necessary. Decisions on changes to the compensation plan shall be made on the basis of majority vote, shall be in writing and accompanied by separate findings, and shall be binding on all jurisdictions. Each jurisdiction shall be entitled to one vote. In the event a commissioner is absent, the alternate of that jurisdiction shall vote in the commissioner's stead.

The final adjustments to the compensation plan shall be completed by the third Wednesday of January of each even-numbered year. Following the final adjustments, each director shall submit to the state legislature, through the office of the governor, a report setting forth the compensation plan and the cost thereof for its information and approval. The approved compensation plan shall be effective as of July 1 of each even-numbered year. The salary range assignments of classes shall not be appealable until the next biennial review of the compensation plan.

(e) The director shall assign new classes to salary ranges on the basis of the policies and standards referred to hereinabove. The assignments shall be effective immediately if the availability of funds is certified to by the respective fiscal officers, and shall be in effect until adoption of the next compensation plan; provided that pricing appeals therefor may be held every six months, or at the time of the next biennial review.

All petitions for appeals from affected persons on the pricing of new classes shall be filed with the appeals board within twenty days from the date the notice of an appeal is given by the director. Public notice of the time and place of the appeal hearing shall be given in the jurisdiction at least ten days prior to the hearing. The appeals board shall hear all the appeals as aforementioned.

Except as otherwise provided in this subsection, the procedures to be followed shall be that prescribed in subsections (c) and (d) and in the rules of the board.

Public hearings shall not be held under this subsection.

After hearing all appeals, the appeals board shall make adjustments to the appealed classes that are necessary based on the policies and standards referred to hereinabove. Decisions on the pricing appeals shall be made on the basis of majority vote, shall be in writing and accompanied by separate findings, and shall be binding on all jurisdictions.

The final adjustments for these appeals in January shall be completed no later than the third Wednesday of January of each odd-numbered year. Following the final adjustments, each director shall submit to the state legislature, through the office of the governor, a report setting forth the adjustments based on the decisions of the board and the cost thereof for its information and approval.

All decisions of the board under this subsection in favor of the person appealing and granting a higher compensation shall be retroactive to the date of action by the director. [L 1961, c 188, §3; am L 1963, c 121, §1; Supp, §4-4; am L 1967, c 302, §1; HRS §77-4; am L 1970, c 117, §1; gen ch 1985; am L 1998, c 2, §§23, 24]