REPORT TITLE:
Public Employees


DESCRIPTION:
Repeals requirement of uniformity among governmental agencies
with regard to administration and interpretation of civil service
and compensation laws.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.1510       
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE AUTONOMY OF PERSONNEL ADMINISTRATION SYSTEMS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the collective
 
 2 bargaining law, which provided for joint decision-making on
 
 3 matters of wages, hours, and other terms and conditions of
 
 4 employment over twenty-five years ago, was based on pre-existing
 
 5 civil service principles of merit and uniformity among the State
 
 6 and counties.  While the legislature continues to uphold
 
 7 principles of joint decision-making and merit, it finds that the
 
 8 requirement for uniformity among the jurisdictions presents
 
 9 barriers to the various jurisdictions in meeting current public
 
10 demands for government to be more efficient, less costly, and
 
11 more responsive to local needs and concerns.  To maintain a
 
12 favorable political and social climate, the legislature therefore
 
13 finds that each jurisdiction should be granted autonomy and be
 
14 empowered to act independently, to the maximum extent
 
15 practicable, on collective bargaining and all other personnel
 
16 matters concerning their respective employees based on their own
 
17 particular needs, priorities, and available resources.
 
18      SECTION 2.  Section 76-1, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 

 
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 1      "§76-1 Purpose of this chapter; statement of policy.  It is
 
 2 the purpose of this chapter to establish in the State and each of
 
 3 the counties [a system] separate systems of personnel
 
 4 administration based on merit principles and scientific methods
 
 5 governing the classification of positions and the employment,
 
 6 conduct, movement, and separation of public officers and
 
 7 employees.  It is also the purpose of this chapter to build a
 
 8 career service in government which will attract, select, and
 
 9 retain the best of our citizens on merit, free from coercive
 
10 political influences, with incentives in the form of genuine
 
11 opportunities for promotions in the service, which will eliminate
 
12 unnecessary and inefficient employees, and which will provide
 
13 technically competent and loyal personnel to render impartial
 
14 service to the public at all times, and to render that service
 
15 according to the dictates of ethics and morality.  In order to
 
16 achieve these purposes it is the declared policy of the State
 
17 that the personnel [system] systems hereby established be applied
 
18 and administered in accordance with the following merit
 
19 principles:
 
20      (1)  Equal opportunity for all regardless of race, sex, age,
 
21           religion, color, ancestry, or politics.  No person
 
22           shall be discriminated against in any case because of
 
23           any disability, in examination, appointment,
 

 
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 1           reinstatement, reemployment, promotion, transfer,
 
 2           demotion, or removal, with respect to any position the
 
 3           duties of which, in the opinion of the director of
 
 4           human resources development may be efficiently
 
 5           performed by a person with such a disability; provided
 
 6           that the employment will not be hazardous to the
 
 7           appointee or endanger the health or safety of the
 
 8           appointee's co-workers or others;
 
 9      (2)  Impartial selection of the ablest person for government
 
10           service by means of competitive tests which are fair,
 
11           objective, and practical;
 
12      (3)  Just opportunity for competent employees to be promoted
 
13           within the service;
 
14      (4)  Reasonable job security for the competent employee,
 
15           including the right of appeal from personnel actions;
 
16      (5)  Systematic classification of all positions through
 
17           adequate job evaluation; and
 
18      (6)  Proper balance in employer-employee relations between
 
19           the people as the employer and employees as the
 
20           individual citizens, to achieve a well trained,
 
21           productive, and happy working force."
 
22      SECTION 3.  Section 76-4, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "§76-4 [Agreements of state, county departments, judiciary,
 
 2 and the Hawaii health systems corporation.] Central personnel
 
 3 agencies of the State, the counties, the judiciary, and the
 
 4 Hawaii health systems corporation; agreements and consultation
 
 5 with each other.  (a)  The state department of human resources
 
 6 development, the judiciary, the several departments of civil
 
 7 service of the counties, and the Hawaii health systems
 
 8 corporation may enter into agreements to furnish services and
 
 9 facilities for the [joint] administration of matters that may be
 
10 practicable and consistent with this chapter and chapter 77,
 
11 including the conducting of examinations and other procedures for
 
12 the establishment and use of eligible lists, reciprocity in the
 
13 use of eligible lists, and the conducting of salary studies.  All
 
14 eligible lists established or used under the agreements shall be
 
15 as fully effective as those established or used separately.  The
 
16 agreements may provide for the reimbursement of the reasonable
 
17 value of the services and facilities furnished.
 
18      (b)  The directors of the central personnel agencies for the
 
19 State and the counties and the administrative director of the
 
20 courts shall consult with each other prior to implementing
 
21 significant changes on matters under this chapter and chapter 77
 
22 and shall meet at least once each year at the call of the
 
23 director of human resources development to consult on matters
 

 
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 1 under this chapter and chapter 77 which are of mutual concern and
 
 2 interest."
 
 3      SECTION 4.  Section 76-9, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§76-9 Employees of the judiciary.  It is the intent of the
 
 6 legislature that the personnel of the judiciary shall form a
 
 7 separately administered part of the [system of] personnel
 
 8 administration systems established by this chapter and chapter
 
 9 77, unless specifically exempted by this chapter or any other
 
10 law; provided that:
 
11      (1)  The judiciary shall have a status coequal with the
 
12           executive branch of the State and with the several
 
13           counties for purposes of the development of a position
 
14           classification plan, the formulation of personnel rules
 
15           and regulations, and the administration of the
 
16           judiciary personnel system, including, but not limited
 
17           to the classification, reclassification, allocation,
 
18           and reallocation of a particular position, the
 
19           publication of a vacancy announcement, the examination
 
20           of applicants, and the preparation of eligible lists;
 
21     [(2)  In the development of a position classification plan,
 
22           the formulation of personnel rules and regulations, and
 
23           the administration of the judiciary personnel system,
 

 
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 1           the chief justice or the chief justice's designee shall
 
 2           consult with the director of human resources
 
 3           development;
 
 4      (3)] (2)  Any action of the chief justice or the chief
 
 5           justice's designee including the classification,
 
 6           reclassification, allocation, and reallocation of a
 
 7           particular position, the publication of a vacancy
 
 8           announcement, the examination of applicants, the
 
 9           preparation of an eligible list, and appeals from
 
10           suspensions, dismissals, and demotions may be appealed
 
11           by any person, employee, or the exclusive bargaining
 
12           unit representative to the judiciary personnel appeals
 
13           board.  The board shall be composed of three members,
 
14           [one representative from the department of human
 
15           resources development,] one representative of the
 
16           judiciary [and], one exclusive bargaining unit
 
17           representative[.], and one representative who is
 
18           neither of the judiciary nor of an exclusive bargaining
 
19           unit representative.  The provisions contained in
 
20           section 26-34 shall not apply to the members of the
 
21           judiciary personnel appeals board.  The board shall sit
 
22           as an appellate body on matters within the jurisdiction
 
23           of the judiciary with equal authority as the civil
 

 
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 1           service commission established by section 26-5;
 
 2     [(4)] (3)  Nothing in [chapters 76] this chapter and chapter
 
 3           77 shall be construed to require the approval of the
 
 4           governor or any executive agency for the judiciary to
 
 5           establish such positions in the judicial branch as may
 
 6           be authorized and funded by the legislature."
 
 7      SECTION 5.  Section 77-1, Hawaii Revised Statutes, is
 
 8 amended by amending the definition of "bench mark class" to read
 
 9 as follows:
 
10      ""Bench mark class" means a class which is (A) pivotal in
 
11 that the assignment of other classes within a series of classes
 
12 may be made with reference to such class[,] and (B) easily
 
13 identifiable according to the nature of the duties and
 
14 responsibilities of the positions within the class[, and (C)
 
15 common to all or most of the jurisdictions]."
 
16      SECTION 6.  Section 77-2, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§77-2 Purpose of this chapter; statement of policy.  It is
 
19 the purpose of this chapter to establish [a sound statewide
 
20 system] sound personnel systems under which it will be possible
 
21 to attract and retain competent persons for the government
 
22 service, to establish and maintain a high level of efficiency of
 
23 employees and to adequately compensate them for the work they do.
 

 
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 1      It is also the purpose of this chapter that in so
 
 2 compensating employees in the civil service, due consideration
 
 3 shall be given to a decent standard of living and to the ability
 
 4 of the people in the State and the respective county to pay for
 
 5 such service.  In order to effectively achieve this purpose, it
 
 6 is the declared policy of the State that the compensation for
 
 7 public employees be set and determined after careful
 
 8 consideration of at least the following factors:
 
 9      (1)  The general economic condition of the State[;] and the
 
10           respective county;
 
11      (2)  Conditions of the labor market;
 
12      (3)  The appropriate cost of living index;
 
13      (4)  The minimum standard of living which is compatible with
 
14           decency and health;
 
15      (5)  The amount of compensation which is offered by
 
16           employers competing for labor sought by the government
 
17           with due consideration being given to compensation
 
18           offered or paid of a nonmonetary character and with
 
19           proper concern over apparent economic trends.
 
20      Each director may conduct studies consistent with the
 
21 purposes and policies expressed in this section.  A director may
 
22 enter into cooperative arrangements with other public and private
 
23 agencies in the conduct of such studies."
 

 
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 1      SECTION 7.  Section 77-3, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§77-3 Coverage.  This chapter applies to all classes of
 
 4 positions covered by the position classification [plan] plans as
 
 5 provided for by chapter 76."
 
 6      SECTION 8.  Section 77-4, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§77-4 Adoption of compensation plan.(a)  [All directors
 
 9 shall meet biennially in joint conference at the call of, and at
 
10 such time and place decided by, the state director or the
 
11 director's authorized representative to review the general
 
12 condition of the compensation plan and] Each director shall
 
13 conduct a biennial review of the general condition of their
 
14 respective compensation plans which shall include:  the
 
15 identification and price of bench mark classes; policies and
 
16 standards; rules [and regulations]; and any and all areas in the
 
17 plan which are not inconsistent with the intent and purpose of
 
18 this chapter.  Representatives of organizations representing
 
19 employees and interested persons [may attend and participate in
 
20 the deliberations, but not vote.  The conference of personnel
 
21 directors shall hold as many meetings as are necessary to
 
22 accomplish the above-stated purposes and to resolve any
 
23 differences.  Decisions shall be made from majority vote of all
 

 
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 1 directors.  If any director is absent, the director may authorize
 
 2 the director's designated representative to act in the director's
 
 3 stead.] shall be afforded the opportunity for consultation.  The
 
 4 provisions of this section shall not apply to the compensation
 
 5 for positions referred to [[]in[]] section 77-5, commonly known
 
 6 as blue-collar positions.
 
 7      (b)  The [conference shall compile its views and
 
 8 recommendations,] director's view, including the tentative
 
 9 compensation plan, [to be completed] shall be compiled before
 
10 October 15 of every odd-numbered year [and shall be submitted to
 
11 the appeals board].  The [appeals board shall upon receipt]
 
12 director shall see to it that the tentative compensation plan is
 
13 published and that copies, together with the director's view [of
 
14 the conference of directors], are available to interested
 
15 parties.
 
16      (c)  [There shall be an appeals board composed of one civil
 
17 service commission member from each jurisdiction who shall be
 
18 appointed by the governor.  Alternate members from each
 
19 jurisdiction shall also be appointed by the governor.  The term
 
20 of two of the incumbents shall expire on June 30, 1964, and the
 
21 term of the other three shall expire on June 30, 1966.
 
22 Thereafter, succeeding members and their respective alternates
 
23 shall be appointed for a term of two years.  The cost of
 

 
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 1 operations thereof shall be met by state legislative
 
 2 appropriations.
 
 3      Notwithstanding any other laws to the contrary, each member
 
 4 of the appeals board shall receive $10 per day for each day on
 
 5 which work is done by them in connection with authorized
 
 6 activities of the board, the cost thereof to be met by state
 
 7 legislative appropriations for the appeals board.
 
 8      The appeals board shall meet biennially to] Each director
 
 9 shall receive biennially recommendations and comments relating to
 
10 the compensation plan[.  The board], shall schedule hearings for
 
11 pricing appeals from affected persons and parties, and may hold
 
12 public hearings as well.  [At least one biennial appeal hearing
 
13 shall be held in each jurisdiction.]  All petitions for appeal
 
14 shall be filed with the [appeals board] director within twenty
 
15 days from the date of public notice of the tentative compensation
 
16 plan.  Notice of the time and place of the appeal hearings shall
 
17 be given in the jurisdiction at least ten days prior to the
 
18 hearings.
 
19      [The appeals board shall function independently of the
 
20 conference of personnel directors and the several civil service
 
21 departments of the State and the counties, but may procure office
 
22 facilities and clerical assistance from them.  The board] Each
 
23 director may appoint technical and other employees not subject to
 

 
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 1 chapters 76 and 77, that [it] the director deems necessary[.
 
 2 Neither the appeals board nor any of its members or staff shall
 
 3 consult with any member of the conference of personnel directors
 
 4 on any matter pending before the board except on notice and
 
 5 opportunity for the appealing employee or the employee's
 
 6 representative to participate.
 
 7      The appeals board may appoint], including a qualified
 
 8 hearings officer[, not subject to chapters 76 and 77, and invest
 
 9 the hearings officer] vested with power to hear the appeals and
 
10 report thereon to the [appeals board.  The appeals board]
 
11 director.  The director shall adopt policies and standards
 
12 relative to compensation[.  The appeals board] and may make rules
 
13 [and regulations] for the conduct of appeal hearings and public
 
14 hearings.
 
15      (d)  Based on the policies and standards referred to in
 
16 subsection (c), [the appeals board] each director shall make
 
17 whatever adjustments to the affected classes where the appeals
 
18 have been filed in the compensation plan that are necessary.
 
19 Decisions on changes to the compensation plan [shall be made on
 
20 the basis of majority vote,] shall be in writing and accompanied
 
21 by separate findings[, and shall be binding on all jurisdictions.
 
22 Each jurisdiction shall be entitled to one vote.  In the event a
 
23 commissioner is absent, the alternate of that jurisdiction shall
 

 
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 1 vote in the commissioner's stead].
 
 2      The final adjustments to the compensation plan shall be
 
 3 completed by the third Wednesday of January of each even-numbered
 
 4 year.  Following the final adjustments, each director shall
 
 5 submit to the [state legislature, through the office of the
 
 6 governor,] appropriate legislative body, through the office of
 
 7 the respective chief executive, a report setting forth the
 
 8 compensation plan and the cost thereof for its information and
 
 9 approval.  The approved compensation plan shall be effective as
 
10 of July 1 of each even-numbered year.  The salary range
 
11 assignments of classes shall not be appealable until the next
 
12 biennial review of the compensation plan.
 
13      (e)  The director shall assign new classes to salary ranges
 
14 on the basis of the policies and standards referred to
 
15 [hereinabove.] in this section.  The assignments shall be
 
16 effective immediately if the availability of funds is certified
 
17 to by the respective fiscal officers, and shall be in effect
 
18 until adoption of the next compensation plan; provided that
 
19 pricing appeals therefor may be held every six months, or at the
 
20 time of the next biennial review.
 
21      All petitions for appeals from affected persons on the
 
22 pricing of new classes shall be filed with the [appeals board]
 
23 director within twenty days from the date the notice of an appeal
 

 
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 1 is given by the director.  Public notice of the time and place of
 
 2 the appeal hearing shall be given in the jurisdiction at least
 
 3 ten days prior to the hearing.  The [appeals board] director
 
 4 shall hear all the appeals as aforementioned.
 
 5      Except as otherwise provided in this subsection, the
 
 6 procedures to be followed shall be that prescribed in subsections
 
 7 (c) and (d) and in the rules of the [board.] director.
 
 8      Public hearings shall not be held under this subsection.
 
 9      After hearing all appeals, the [appeals board] director
 
10 shall make adjustments to the appealed classes that are necessary
 
11 based on the policies and standards referred to [hereinabove.] in
 
12 this section.  Decisions on the pricing appeals [shall be made on
 
13 the basis of majority vote,] shall be in writing and accompanied
 
14 by separate findings[, and shall be binding on all
 
15 jurisdictions].
 
16      The final adjustments for these appeals in January shall be
 
17 completed no later than the third Wednesday of January of each
 
18 odd-numbered year.  Following the final adjustments, each
 
19 director shall submit to the [state legislature, through the
 
20 office of the governor,] appropriate legislative body, through
 
21 the office of the respective chief executive, a report setting
 
22 forth the adjustments based on the decisions of the [board]
 
23 director and the cost thereof for its information and approval.
 

 
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 1      All decisions of the [board] director under this subsection
 
 2 in favor of the person appealing and granting a higher
 
 3 compensation shall be retroactive to the date of action by the
 
 4 director."
 
 5      SECTION 9.  Section 77-5, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "§77-5 Compensation plan for blue-collar positions.  The
 
 8 salary structures and schedules prescribed in section 77-13 shall
 
 9 not apply to positions in recognized trades or crafts or other
 
10 skilled mechanical crafts, or unskilled, semiskilled, or skilled
 
11 manual labor occupations, including positions of foremen,
 
12 inspectors, and supervisors in positions having trades, crafts,
 
13 or laboring experience and knowledge as the paramount
 
14 requirement, commonly known as blue-collar positions.
 
15      (1)  The provisions of section 77-4 where it is not
 
16           inconsistent with the provisions of this section shall
 
17           be applicable.
 
18      (2)  Salary structures and schedules.
 
19           (A)  The salary structures applicable to blue-collar
 
20                positions shall be comprised of fifteen salary
 
21                grades.
 
22           (B)  Pay schedules for nonsupervisory blue-collar
 
23                positions, hereafter to be referred to as the wage
 

 
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 1                board schedules, shall be established as provided
 
 2                under subparagraph (D).
 
 3           (C)  Pay schedules for supervisory blue-collar
 
 4                positions, hereafter to be referred to as wage
 
 5                board supervisory schedules, shall be established
 
 6                as provided under subparagraph (D) for each of the
 
 7                following levels:
 
 8                (i)  Working foreman;
 
 9               (ii)  Foreman I;
 
10              (iii)  Foreman II;
 
11               (iv)  Foreman III; and
 
12                (v)  General foreman.
 
13           (D)  The pay schedules applicable to employees in blue-
 
14                collar positions, who are included in collective
 
15                bargaining units under section 89-6(a), shall be
 
16                subject to negotiations.  The pay schedules
 
17                applicable to employees in blue-collar positions,
 
18                who are excluded from coverage under chapter 89,
 
19                shall be subject to chapter 89C.
 
20      (3)  Wherever payment is made on the basis of an annual,
 
21           weekly, hourly, or daily rate, the rate shall be
 
22           computed as provided for under section 77-13(c).
 
23      (4)  Implementation of compensation plan.
 

 
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 1           (A)  [The conference of personnel directors shall
 
 2                compile and recommend to the public employees
 
 3                compensation appeals board] Each director shall
 
 4                compile a tentative compensation plan based upon
 
 5                such factors as the kind and subject matter of
 
 6                work, level of difficulty and responsibility, and
 
 7                qualification requirements for classes deemed
 
 8                covered by this section by October 15 of every
 
 9                odd-numbered year.
 
10                     Full opportunity for consultation with the
 
11                affected persons and organizations including
 
12                employee organizations shall be afforded.
 
13           (B)  [The appeals board referred to in section 77-4]
 
14                Each director shall provide for the publication of
 
15                the tentative compensation plan.  All petitions
 
16                for appeal against the compensation plan,
 
17                including the pricing of classes or whether the
 
18                class should be included or excluded from the
 
19                blue-collar plan, shall be filed with [the appeals
 
20                board] within twenty days from the date of
 
21                publication of the tentative plan.
 
22                     The [board shall meet biennially to] director
 
23                shall hear appeals biennially from affected
 

 
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 1                persons and parties concerning the tentative
 
 2                compensation plan and may hold public hearings as
 
 3                well.  [At least one appeal hearing shall be held
 
 4                in each jurisdiction.]
 
 5                     Final adjustment by the [board] director to
 
 6                the compensation plan shall be in accordance with
 
 7                its established policies and standards relative to
 
 8                compensation.  The [board] director shall complete
 
 9                [its] the final adjustments by the third Wednesday
 
10                in January of every even-numbered year.
 
11                     Following the final adjustment, [the
 
12                conference of personnel directors shall submit to
 
13                the state legislature, through the office of the
 
14                governor,] each director shall submit to the
 
15                appropriate legislative body, through the office
 
16                of the respective chief executive, a report
 
17                setting forth the final compensation plan and the
 
18                cost thereof for its information and approval.
 
19                The effective date of the approved plans shall be
 
20                July 1 of every even-numbered year.
 
21      (5)  Subsequent implementation of the compensation plan.
 
22           The compensation plan for positions covered under this
 
23           section shall be reviewed and adjusted biennially in
 

 
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 1           accordance with paragraph (4)."
 
 2      SECTION 10.  Section 77-10, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§77-10  Compensation adjustments; rules.(a)  The state
 
 5 director or the county commissions shall adopt rules to provide
 
 6 for adjustments and changes in compensation in the event of
 
 7 promotions, temporary promotions and assignments, demotions, and
 
 8 for the purpose of implementing section 77-4.
 
 9      (b)  In the case of promotion, reallocation, and repricing
 
10 or temporary assignment upwards, the rules shall provide that the
 
11 employee shall receive no less than:
 
12      (1)  The rate at the lowest step in the higher salary range
 
13           which exceeds the employee's existing basic rate of pay
 
14           by five per cent; or
 
15      (2)  If there is no step in the higher pay range which
 
16           exceeds the employee's basic rate of pay by at least
 
17           five per cent, the employee shall be compensated at the
 
18           maximum step in the higher pay range, or at the
 
19           employee's basic rate of pay, whichever is greater.
 
20      (c)  In the case of a voluntary demotion, the rules shall
 
21 provide that the employee shall receive:
 
22      (1)  The rate at the highest step in the lower pay range
 
23           which is not greater than ninety-five per cent of the
 

 
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 1           employee's basic rate of pay; or
 
 2      (2)  If there is no step in the lower pay range which rate
 
 3           is not greater than ninety-five per cent of the
 
 4           employee's basic rate of pay, the employee shall be
 
 5           compensated at the minimum step.
 
 6      [(d)  The rules shall be adopted only after joint conference
 
 7 of the state director and all county commissions and shall be
 
 8 uniformly applied and interpreted throughout the State and the
 
 9 several counties.
 
10      (e)] (d)  The rules shall give proper consideration to merit
 
11 principles of employment, requirements of model conversion plans,
 
12 and due recognition to length of service in the event of
 
13 demotions resulting from physical conditions.  The rules shall
 
14 provide for methods of pay adjustment which may, in the event of
 
15 nondisciplinary, involuntary movements or reassignments to lower
 
16 pay ranges, include the payment of a temporary differential which
 
17 is not to be considered as an adjustment to an employee's base
 
18 pay.  In no event may an employee's base pay exceed the maximum
 
19 step of a lower pay range, or be increased to an amount which
 
20 will exceed the maximum step of a higher pay range, when the
 
21 employee moves or is reassigned to a different pay range.  The
 
22 employee's service anniversary date shall not change.  No rule
 
23 shall be applied in any way in violation of sound merit
 

 
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 1 principles."
 
 2      SECTION 11.  Section 77-13, Hawaii Revised Statutes, is
 
 3 amended by amending subsection (a) to read as follows:
 
 4      "(a)  The salary structures for white-collar positions
 
 5 covered under this chapter shall be comprised of thirty-one
 
 6 salary ranges, designated SR 4 to SR 31, SC-1, SC-2, and SC-3.
 
 7 In the publication of pay schedules, however, salary ranges may
 
 8 be redesignated and salary ranges which are not being used may be
 
 9 excluded from the respective pay schedules; provided that if SC
 
10 ranges are being used, they shall be identified as such so that
 
11 subsection (d) remains applicable.  [Each salary range shall
 
12 consist of ten steps, designated B to G and L-1 to L-4; provided
 
13 that range SC-2 shall consist of nine steps, designated B to G,
 
14 L-1, L-2, and L-3, and range SC-3 shall consist of eight steps,
 
15 designated B to G, L-1, and L-2.]"
 
16      SECTION 12.  Section 77-13, Hawaii Revised Statutes, is
 
17 amended by amending subsection (d) to read as follows:
 
18      "(d)  Salary ranges SC-1, SC-2, and SC-3 shall be utilized
 
19 in the following manner:
 
20      (1)  Salary ranges SC-1, SC-2, and SC-3 may be utilized by
 
21           the State, the judiciary, counties, and the Hawaii
 
22           health systems corporation for physician and
 
23           psychiatrist positions;
 

 
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 1      (2)  No position shall be classified and paid in salary
 
 2           ranges SC-1, SC-2, and SC-3 unless specifically
 
 3           recommended by the director of human resources
 
 4           development and approved by the governor, recommended
 
 5           by the administrative director of the courts and
 
 6           approved by the chief justice, or recommended by the
 
 7           personnel director of a county and approved by the
 
 8           respective council and mayor or recommended by the
 
 9           Hawaii health systems corporation chief executive
 
10           officer's designee and approved by the chief executive
 
11           officer;
 
12      (3)  There shall be at any given period not more than
 
13           sixteen positions classified and paid in salary ranges
 
14           SC-1, SC-2, and SC-3 by the State, not more than two
 
15           positions classified and paid in salary ranges SC-1,
 
16           SC-2, and SC-3 by the judiciary, and not more than
 
17           eight positions classified and paid in salary ranges
 
18           SC-1, SC-2, and SC-3 by any county.  Psychiatrist and
 
19           physician positions shall be excluded from the above-
 
20           mentioned totals; and
 
21      (4)  The director of human resources development, the
 
22           administrative director of the courts, and the
 
23           personnel directors of each county shall report
 

 
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                                     H.B. NO.1510       
                                                        
                                                        

 
 1           annually to the [legislature] appropriate legislative
 
 2           body as to the manner in which the positions assigned
 
 3           to salary ranges SC-1, SC-2, and SC-3 are being used."
 
 4      SECTION 13.  Section 77-13.1, Hawaii Revised Statutes, is
 
 5 amended by amending subsections (a) and (b) to read as follows:
 
 6      "(a)  The respective chief executives of the State and
 
 7 counties, the chief justice of the supreme court, and the Hawaii
 
 8 health systems corporation chief executive officer shall
 
 9 determine which white-collar positions under this chapter within
 
10 their personnel systems are managerial; provided that no position
 
11 shall be designated as managerial unless or until the employee
 
12 occupying such position has been excluded from coverage under
 
13 chapter 89.
 
14      (b)  The salary [structure] structures for managerial white-
 
15 collar positions covered under this chapter shall be comprised of
 
16 such number of salary ranges with each range consisting of such
 
17 number of steps as the respective chief executives of the State
 
18 and counties, the chief justice of the supreme court, and the
 
19 chief executive officer of the Hawaii health systems corporation
 
20 deem appropriate under the provisions set forth in chapter 89C."
 
21      SECTION 14.  Section 80-4, Hawaii Revised Statutes, is
 
22 amended by amending subsection (l) to read as follows:
 
23      "(l)  The department of human resources development of the
 

 
Page 24                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 State and the departments of civil service in the [political
 
 2 subdivisions of the State] counties shall each be responsible for
 
 3 the proper administration of [the provisions of] this section in
 
 4 the respective jurisdictions.  Rules for the proper
 
 5 administration and regulation of hours of work and overtime
 
 6 compensation of officers and employees of the State and [its
 
 7 municipal subdivisions] the counties shall be adopted by the
 
 8 respective personnel directors of the State and [its municipal
 
 9 subdivisions,] the counties, subject to the approval of the
 
10 governor for the state rules, the mayor of the city and county of
 
11 Honolulu for the rules of the city and county, and the chief
 
12 executive officer for the rules of each of the counties of
 
13 Hawaii, Kauai, and Maui.  [The rules shall obtain, so far as
 
14 possible, uniformity and practicability in the application of
 
15 this section.]"
 
16      SECTION 15.  Section 89-1, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§89-1 Statement of findings and policy.  The legislature
 
19 finds that joint decision-making is the modern way of
 
20 administering government.  Where public employees have been
 
21 granted the right to share in the decision-making process
 
22 affecting wages and working conditions, they have become more
 
23 responsive and better able to exchange ideas and information on
 

 
Page 25                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 operations with their administrators.  Accordingly, government is
 
 2 made more effective.  The legislature further finds that the
 
 3 enactment of positive legislation establishing guidelines for
 
 4 public employment relations is the best way to harness and direct
 
 5 the energies of public employees eager to have a voice in
 
 6 determining their conditions of work, to provide a rational
 
 7 method for dealing with disputes and work stoppages, and to
 
 8 maintain a favorable political and social environment.
 
 9      The legislature declares that it is the public policy of the
 
10 State to promote harmonious and cooperative relations between
 
11 government and its employees and to protect the public by
 
12 assuring effective and orderly operations of government.  These
 
13 policies are best effectuated by (1) recognizing the right of
 
14 public employees to organize for the purpose of collective
 
15 bargaining, (2) requiring the public [employers] employer of each
 
16 jurisdiction to negotiate with and enter into written agreements
 
17 with exclusive representatives on matters of wages, hours, and
 
18 other conditions of employment, while, at the same time, (3)
 
19 maintaining merit principles and the principle of equal pay for
 
20 equal work among state and county employees pursuant to
 
21 [sections] section 76-1, [76-2, 77-31, and 77-33,] and (4)
 
22 creating a labor relations board to administer the provisions of
 
23 chapters 89 and 377."
 

 
Page 26                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1      SECTION 16.  Section 89-2, Hawaii Revised Statutes, is
 
 2 amended as follows:
 
 3      1.  By amending the definitions of "collective bargaining"
 
 4 and "cost items" to read:
 
 5      ""Collective bargaining" means the performance of the mutual
 
 6 obligations of the public employer and the exclusive
 
 7 representative to meet at reasonable times, to confer and
 
 8 negotiate in good faith, and to execute a written agreement with
 
 9 respect to wages, hours, amounts of an employer's contributions
 
10 [by the State and counties] to the Hawaii public employees health
 
11 fund, and other terms and conditions of employment, except that
 
12 by any such obligation neither party shall be compelled to agree
 
13 to a proposal, or be required to make a concession.
 
14      "Cost items" includes wages, hours, amounts of an employer's
 
15 contributions [by the State and counties] to the Hawaii public
 
16 employees health fund, and other terms and conditions of
 
17 employment, the implementation of which requires an appropriation
 
18 by a legislative body."
 
19      2.  By amending the definition of "employee organization" to
 
20 read:
 
21      ""Employee organization" means any organization of any kind
 
22 in which public employees participate and which exists for the
 
23 primary purpose of dealing with public employers concerning
 

 
Page 27                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 grievances, labor disputes, wages, hours, amounts of an
 
 2 employer's contributions [by the State and counties] to the
 
 3 Hawaii public employees health fund, and other terms and
 
 4 conditions of employment of public employees."
 
 5      3.  By amending the definition of "mediation" to read:
 
 6      ""Mediation" means assistance by an impartial third party to
 
 7 reconcile an impasse between the public employer and the
 
 8 exclusive representative regarding wages, hours, amounts of an
 
 9 employer's contributions [by the State and counties] to the
 
10 Hawaii public employees health fund, and other terms and
 
11 conditions of employment through interpretation, suggestion, and
 
12 advice to resolve the impasse."
 
13      SECTION 17.  Section 89-2, Hawaii Revised Statutes, is
 
14 amended by adding a new definition to be appropriately inserted
 
15 and to read as follows:
 
16      ""Jurisdiction" means the State, the city and county of
 
17 Honolulu, the county of Hawaii, the county of Maui, or the county
 
18 of Kauai."
 
19      SECTION 18.  Section 89-6, Hawaii Revised Statutes, is
 
20 amended by amending subsections (a) and (b) to read as follows:
 
21      "(a)  All employees throughout the State or a county within
 
22 any of the following categories shall constitute an appropriate
 
23 bargaining unit[:] of the relevant jurisdiction:
 

 
Page 28                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1      (1)  Nonsupervisory employees in blue-collar positions;
 
 2      (2)  Supervisory employees in blue-collar positions;
 
 3      (3)  Nonsupervisory employees in white-collar positions;
 
 4      (4)  Supervisory employees in white-collar positions;
 
 5      (5)  Teachers and other personnel of the department of
 
 6           education under the same salary schedule, including
 
 7           part-time employees working less than twenty hours a
 
 8           week who are equal to one-half of a full-time
 
 9           equivalent;
 
10      (6)  Educational officers and other personnel of the
 
11           department of education under the same salary schedule;
 
12      (7)  Faculty of the University of Hawaii and the community
 
13           college system;
 
14      (8)  Personnel of the University of Hawaii and the community
 
15           college system, other than faculty;
 
16      (9)  Registered professional nurses;
 
17     (10)  Institutional, health, and correctional workers;
 
18     (11)  Firefighters;
 
19     (12)  Police officers; and
 
20     (13)  Professional and scientific employees, other than
 
21           registered professional nurses.
 
22      Because of the nature of work involved and the essentiality
 
23 of certain occupations that require specialized training, units
 

 
Page 29                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 (9) through (13) are designated as optional appropriate
 
 2 bargaining units[.]; provided that, no separate optional unit
 
 3 shall be deemed appropriate within a jurisdiction whenever there
 
 4 are, or would be, fewer than ten employees in a separate optional
 
 5 unit.  In such case, the board shall include the affected
 
 6 employees in another existing appropriate bargaining unit of the
 
 7 jurisdiction, after hearing upon due notice, and an election by
 
 8 the employees shall not be required.  Employees in any of these
 
 9 optional units may vote either for separate units or for
 
10 inclusion in their respective units (1) through (4).  If a
 
11 majority of the employees in any optional unit desire to
 
12 constitute a separate appropriate bargaining unit, supervisory
 
13 employees may be included in the unit by mutual agreement among
 
14 supervisory and nonsupervisory employees within the unit; if
 
15 supervisory employees are excluded, the appropriate bargaining
 
16 unit for these supervisory employees shall be (2) or (4), as the
 
17 case may be.
 
18      The compensation plans for blue-collar positions pursuant to
 
19 section 77-5 and for white-collar positions pursuant to section
 
20 77-13, the salary schedules for teachers pursuant to section
 
21 302A-624 and for educational officers pursuant to section
 
22 302A-625, and the appointment and classification of faculty
 
23 pursuant to sections 304-11 and 304-13, existing on July 1, 1970,
 

 
Page 30                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 shall be the bases for differentiating blue-collar from white-
 
 2 collar employees, professional from institutional, health and
 
 3 correctional workers, supervisory from nonsupervisory employees,
 
 4 teachers from educational officers, and faculty from nonfaculty.
 
 5 In differentiating supervisory from nonsupervisory employees,
 
 6 class titles alone shall not be the basis for determination, but,
 
 7 in addition, the nature of the work, including whether or not a
 
 8 major portion of the working time of a supervisory employee is
 
 9 spent as part of a crew or team with nonsupervisory employees,
 
10 shall also be considered.
 
11      (b)  For the purpose of negotiations, the public employer of
 
12 an appropriate bargaining unit shall mean the governor or the
 
13 governor's designated representatives of not less than three
 
14 together with not more than two members of the board of education
 
15 in the case of units (5) and (6), the governor or the governor's
 
16 designated representatives of not less than three together with
 
17 not more than two members of the board of regents of the
 
18 University of Hawaii in the case of units (7) and (8)[, and the
 
19 governor or the governor's designated representatives together
 
20 with the mayors of all the counties or their designated
 
21 representatives in the case of the remaining units].  The
 
22 designated employer representatives for units (5), (6), (7), and
 
23 (8) shall each have one vote [and in the case of the remaining
 

 
Page 31                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 units, the governor shall be entitled to four votes and the mayor
 
 2 of each county shall each have one vote, which may be assigned to
 
 3 their designated representatives.  Any] and any decision to be
 
 4 reached [by the applicable employer group] shall be on the basis
 
 5 of simple majority.  With respect to the remaining bargaining
 
 6 units, the public employer shall mean the governor or the
 
 7 governor's designated representatives, in the case of bargaining
 
 8 units for a county."
 
 9      SECTION 19.  Section 89-8, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§89-8 Recognition and representation; employee
 
12 participation.(a)  The employee organization which has been
 
13 certified by the board as representing the majority of employees
 
14 in an appropriate bargaining unit shall be the exclusive
 
15 representative of all employees in the unit.  As exclusive
 
16 representative, it shall have the right to act for and negotiate
 
17 agreements covering all employees in the unit and shall be
 
18 responsible for representing the interests of all such employees
 
19 without discrimination and without regard to employee
 
20 organization membership.
 
21      (b)  Any other provision [herein] in this chapter to the
 
22 contrary notwithstanding, whenever two or more employee
 
23 organizations which have been duly certified by the board as the
 

 
Page 32                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 exclusive representatives of employees in bargaining units merge,
 
 2 combine, or amalgamate or enter into an agreement for common
 
 3 administration or operation of their affairs, all rights and
 
 4 duties of such employee organizations as exclusive
 
 5 representatives of employees in such units shall inure to and
 
 6 shall be discharged by the organization resulting from such
 
 7 merger, combination, amalgamation, or agreement, either alone or
 
 8 with such employee organizations.  Election by the employees in
 
 9 the unit involved, and certification by the board of such
 
10 resulting employee organization shall not be required.
 
11      (c)  Notwithstanding any other law to the contrary, the
 
12 employee organization which has been certified by the board as
 
13 the exclusive representative of an appropriate bargaining unit
 
14 for employees throughout the State shall continue as the
 
15 exclusive representative of the respective appropriate bargaining
 
16 units for employees within each jurisdiction which has employees
 
17 in the unit on the effective date of this Act; provided that, if
 
18 there are fewer than ten employees in any optional bargaining
 
19 unit, section 89-6(a) shall apply.  The board shall issue
 
20 certifications recognizing the employee organization as the
 
21 exclusive representative for the respective appropriate
 
22 bargaining units of each jurisdiction and no election shall be
 
23 required.
 

 
Page 33                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1      [(b)] (d)  An individual employee may present a grievance at
 
 2 any time to the employee's employer and have the grievance heard
 
 3 without intervention of an employee organization; provided that
 
 4 the exclusive representative is afforded the opportunity to be
 
 5 present at such conferences and that any adjustment made shall
 
 6 not be inconsistent with the terms of an agreement then in effect
 
 7 between the employer and the exclusive representative.
 
 8      [(c)] (e)  Employee participation in the collective
 
 9 bargaining process conducted by the exclusive representative of
 
10 the appropriate bargaining unit shall be permitted during regular
 
11 working hours without loss of regular salary or wages.  [The
 
12 number of participants from each bargaining unit with over 2,500
 
13 members shall be limited to one member for each five hundred
 
14 members of the bargaining unit.  For bargaining units with less
 
15 than 2,500 members, there shall be at least five participants,
 
16 one of whom shall reside in each county; provided that there need
 
17 not be a participant residing in each county for the bargaining
 
18 unit established by section 89-6(a)(8).  The bargaining unit
 
19 shall select the participants] Participants for each bargaining
 
20 unit shall be limited to a reasonable number as mutually agreed
 
21 upon between the employer and the exclusive representative and
 
22 shall be selected by the bargaining unit from representative
 
23 departments, divisions, or sections to minimize interference with
 

 
Page 34                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 the normal operations and service of the departments, divisions,
 
 2 or sections."
 
 3      SECTION 20.  Section 89-9, Hawaii Revised Statutes, is
 
 4 amended as follows:
 
 5      1.  By amending subsection (a) to read:
 
 6      "(a)  The employer and the exclusive representative shall
 
 7 meet at reasonable times, including meetings in advance of the
 
 8 employer's budget-making process, and shall negotiate in good
 
 9 faith with respect to wages, hours, the number of incremental and
 
10 longevity steps and movement between steps within the salary
 
11 range, the amounts of an employer's contributions [by the State
 
12 and respective counties] to the Hawaii public employees health
 
13 fund to the extent allowed in subsection (e), and other terms and
 
14 conditions of employment which are subject to negotiations under
 
15 this chapter and which are to be embodied in a written agreement,
 
16 or any question arising thereunder, but such obligation does not
 
17 compel either party to agree to a proposal or make a concession."
 
18      2.  By amending subsections (d) and (e) to read as follows:
 
19      "(d)  Excluded from the subjects of negotiations are matters
 
20 of classification and reclassification, benefits of but not
 
21 contributions to the Hawaii public employees health fund,
 
22 retirement benefits except as provided in section 88-8(h), and
 
23 the salary ranges now provided by law; provided that the number
 

 
Page 35                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 of incremental and longevity steps, the amount of wages to be
 
 2 paid in each range and step, and movement between steps within
 
 3 the salary range shall be negotiable.  The employer and the
 
 4 exclusive representative shall not agree to any proposal which
 
 5 would be inconsistent with merit principles [or the principle of
 
 6 equal pay for equal work pursuant to sections 76-1, 76-2, 77-31,
 
 7 and 77-33,] pursuant to section 76-1 or which would interfere
 
 8 with the rights of a public employer to (1) direct employees; (2)
 
 9 determine [qualification,] qualifications, standards for work,
 
10 the nature and contents of examinations, hire, promote, transfer,
 
11 assign, and retain employees in positions and suspend, demote,
 
12 discharge, or take other disciplinary action against employees
 
13 for proper cause; (3) relieve an employee from duties because of
 
14 lack of work or other legitimate reason; (4) maintain efficiency
 
15 of government operations; (5) determine methods, means, and
 
16 personnel by which the employer's operations are to be conducted;
 
17 and (6) take such actions as may be necessary to carry out the
 
18 missions of the employer in cases of emergencies; provided that
 
19 the employer and the exclusive representative may negotiate
 
20 procedures governing the promotion and transfer of employees to
 
21 positions within a bargaining unit, procedures governing the
 
22 suspension, demotion, discharge or other disciplinary actions
 
23 taken against employees, and procedures governing the layoff of
 

 
Page 36                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 employees; provided further that violations of the procedures so
 
 2 negotiated may be the subject of a grievance process agreed to by
 
 3 the employer and the exclusive representative.
 
 4      (e)  Negotiations relating to contributions to the Hawaii
 
 5 public employees health fund shall be for the purpose of agreeing
 
 6 upon the amounts which the State [and counties] or a county shall
 
 7 contribute under section 87-4, toward the payment of the costs
 
 8 for a health benefits plan, as defined in section 87-1(8), and
 
 9 group life insurance benefits, and the parties shall not be bound
 
10 by the amounts contributed under prior agreements; provided that
 
11 section 89-11 for the resolution of disputes by way of fact-
 
12 finding or arbitration shall not be available to resolve impasses
 
13 or disputes relating to the amounts the State [and counties] or a
 
14 county shall contribute to the Hawaii public employees health
 
15 fund."
 
16      SECTION 21.  Section 89-10, Hawaii Revised Statutes, is
 
17 amended by amending subsection (b) to read as follows:
 
18      "(b)  All cost items shall be subject to appropriations by
 
19 the appropriate legislative [bodies.] body.  The employer shall
 
20 submit within ten days of the date on which the agreement is
 
21 ratified by the employees concerned all cost items contained
 
22 therein to the appropriate legislative [bodies,] body, except
 
23 that if any cost items require appropriation by the state
 

 
Page 37                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 legislature and it is not in session at the time, the cost items
 
 2 shall be submitted for inclusion in the governor's next operating
 
 3 budget within ten days after the date on which the agreement is
 
 4 ratified.  The [state legislature or the legislative bodies of
 
 5 the counties acting in concert, as the case may be,] appropriate
 
 6 legislative body may approve or reject the cost items submitted
 
 7 to [them, as a whole.  If the state legislature or the
 
 8 legislative body of any county rejects] it and if any of the cost
 
 9 items [submitted to them,] are rejected, all cost items submitted
 
10 shall be returned to the parties for further bargaining."
 
11      SECTION 22.  Section 89-11, Hawaii Revised Statutes, is
 
12 amended by amending subsections (b), (c), and (d) to read as
 
13 follows:
 
14      "(b)  A public employer shall have the power to enter into
 
15 written agreement with the exclusive representative of an
 
16 appropriate bargaining unit setting forth an impasse procedure
 
17 culminating in a final and binding decision, to be invoked in the
 
18 event of an impasse over the terms of an initial or renewed
 
19 agreement.  In the absence of such a procedure, either party may
 
20 request the assistance of the board by submitting to the board
 
21 and to the other party to the dispute a clear, concise statement
 
22 of each issue on which an impasse has been reached together with
 
23 a certificate as to the good faith of the statement and the
 

 
Page 38                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 contents therein.  The board, on its own motion, may determine
 
 2 that an impasse exists on any matter in a dispute.  If the board
 
 3 determines on its own motion that an impasse exists, it may
 
 4 render assistance by notifying both parties to the dispute of its
 
 5 intent.
 
 6      The board shall render assistance to resolve the impasse
 
 7 according to the following schedule:
 
 8      (1)  Mediation.  Assist the parties involved in a voluntary
 
 9           resolution of the impasse by appointing a mediator or
 
10           mediators, representative of the public, from a list of
 
11           qualified persons maintained by the board, within three
 
12           days after the date of the impasse, which shall be
 
13           deemed to be the day on which notification is received
 
14           or a determination is made that an impasse exists.
 
15      (2)  Fact-finding.  If the dispute continues fifteen days
 
16           after the date of the impasse, the board shall appoint,
 
17           within three days, a fact-finding board of not more
 
18           than three members, representative of the public, from
 
19           a list of qualified persons maintained by the board.
 
20           The fact-finding board, [shall,] in addition to powers
 
21           delegated to it by the board, shall have the power to
 
22           make recommendations for the resolution of the dispute.
 
23           The fact-finding board, acting by a majority of its
 

 
Page 39                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1           members, shall transmit its findings of fact and any
 
 2           recommendations for the resolution of the dispute to
 
 3           both parties within ten days after its appointment.  If
 
 4           the dispute remains unresolved five days after the
 
 5           transmittal of the findings of fact and any
 
 6           recommendations, the board shall publish the findings
 
 7           of fact and any recommendations for public information
 
 8           if the dispute is not referred to final and binding
 
 9           arbitration.
 
10      (3)  Arbitration.  If the dispute continues thirty days
 
11           after the date of the impasse, the parties may mutually
 
12           agree to submit the remaining differences to
 
13           arbitration, which shall result in a final and binding
 
14           decision.  The arbitration panel shall consist of three
 
15           arbitrators, one selected by each party, and the third
 
16           and impartial arbitrator selected by the other two
 
17           arbitrators.  If either party fails to select an
 
18           arbitrator or for any reason there is a delay in the
 
19           naming of an arbitrator, or if the arbitrators fail to
 
20           select a neutral arbitrator within the time prescribed
 
21           by the board, the board shall appoint the arbitrator or
 
22           arbitrators necessary to complete the panel, which
 
23           shall act with the same force and effect as if the
 

 
Page 40                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1           panel had been selected by the parties as described
 
 2           above.  The arbitration panel shall take whatever
 
 3           actions necessary, including but not limited to
 
 4           inquiries, investigations, hearings, issuance of
 
 5           subpoenas, and administering oaths, in accordance with
 
 6           procedures prescribed by the board to resolve the
 
 7           impasse.  If the dispute remains unresolved within
 
 8           fifty days after the date of the impasse, the
 
 9           arbitration panel shall transmit its findings and its
 
10           final and binding decision on the dispute to both
 
11           parties.  The parties shall enter into an agreement or
 
12           take whatever action is necessary to carry out and
 
13           effectuate the decision.  All items requiring any
 
14           moneys for implementation shall be subject to
 
15           appropriations by the appropriate legislative [bodies,]
 
16           body, and the employer shall submit all such items
 
17           agreed to in the course of negotiations within ten days
 
18           to the appropriate legislative [bodies.] body.
 
19 The time frame prescribed in the foregoing schedule may be
 
20 altered by mutual agreement of the parties, subject to the
 
21 approval of the board.
 
22      The costs for mediation and fact-finding shall be borne by
 
23 the board.  All other costs, including that of a neutral
 

 
Page 41                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 arbitrator, shall be borne equally by the parties involved in the
 
 2 dispute.
 
 3      (c)  If the parties have not mutually agreed to submit the
 
 4 dispute to final and binding arbitration, either party shall be
 
 5 free to take whatever lawful action it deems necessary to end the
 
 6 dispute; provided that no action shall involve the disruption or
 
 7 interruption of public services within sixty days after the fact-
 
 8 finding board has made public its findings of fact and any
 
 9 recommendations for the resolution of the dispute.  The employer
 
10 shall submit to the appropriate legislative [bodies] body the
 
11 employer's recommendations for the settlement of the dispute on
 
12 all cost items together with the findings of fact and any
 
13 recommendations made by the fact-finding board.  The exclusive
 
14 representative may submit to the appropriate legislative body its
 
15 recommendations for the settlement of the dispute on all cost
 
16 items.
 
17      (d)  If a dispute between a public employer and the
 
18 exclusive representative of appropriate bargaining unit (2),
 
19 supervisory employees in blue collar positions; appropriate
 
20 bargaining unit (3), nonsupervisory employees in white collar
 
21 positions; appropriate bargaining unit (4), supervisory employees
 
22 in white collar positions; appropriate bargaining unit (6),
 
23 educational officers and other personnel of the department of
 

 
Page 42                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 education under the same salary schedule; appropriate bargaining
 
 2 unit (8), personnel of the University of Hawaii and the community
 
 3 college system, other than faculty; optional appropriate
 
 4 bargaining unit (9), registered professional nurses; optional
 
 5 appropriate bargaining unit (10), institutional, health, and
 
 6 correctional workers; optional appropriate bargaining unit (11),
 
 7 firefighters; optional appropriate bargaining unit (12), police
 
 8 officers; or optional appropriate bargaining unit (13),
 
 9 professional and scientific employees, other than registered
 
10 professional nurses, exists over the terms of an initial or
 
11 renewed agreement for employees of a jurisdiction more than
 
12 ninety working days after written notification by either party to
 
13 initiate negotiations, either party may give written notice to
 
14 the board that an impasse exists and the board shall assist in
 
15 the voluntary resolution of the impasse by appointing a mediator
 
16 within three days after the date of impasse.  If the dispute
 
17 continues to exist fifteen working days after the date of
 
18 impasse, the dispute shall be submitted to arbitration
 
19 proceedings as provided [herein.] in this chapter.
 
20      The board shall immediately determine whether the parties to
 
21 the dispute have mutually agreed upon an arbitration procedure
 
22 and whether the parties have agreed upon a person or persons whom
 
23 the parties desire to be appointed as the arbitrator or as a
 

 
Page 43                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 panel of arbitrators, as the case may be.
 
 2      If the board determines that an arbitration procedure
 
 3 mutually agreed upon by the parties will result in a final and
 
 4 binding decision, and that an arbitrator or arbitration panel has
 
 5 been mutually agreed upon, it shall appoint such arbitrator or
 
 6 arbitration panel and permit the parties to proceed with the
 
 7 arbitration procedure mutually agreed upon.
 
 8      If, after eighteen working days from the date of impasse,
 
 9 the parties have not mutually agreed upon an arbitration
 
10 procedure and an arbitrator or arbitration panel, the board shall
 
11 immediately notify the employer and the exclusive representative
 
12 that the issues in dispute shall be submitted to a three-member
 
13 arbitration panel who shall follow the arbitration procedure
 
14 provided [herein.] as provided in this chapter.
 
15      Within twenty-one working days from the date of impasse, two
 
16 members of the arbitration panel shall be selected by the
 
17 parties; one shall be selected by the employer and one shall be
 
18 selected by the exclusive representative.  The impartial third
 
19 member of the arbitration panel shall be selected by the two
 
20 previously selected panel members and shall chair the arbitration
 
21 panel.
 
22      In the event that the two previously selected arbitration
 
23 panel members fail to select an impartial third arbitrator within
 

 
Page 44                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 twenty-four working days from the date of impasse, the board
 
 2 shall request the American Arbitration Association, or its
 
 3 successor in function, to furnish a list of five qualified
 
 4 arbitrators from which the impartial arbitrator shall be
 
 5 selected.  Within five calendar days after receipt of such list,
 
 6 the parties shall alternately strike names therefrom until a
 
 7 single name is left, who shall be immediately appointed by the
 
 8 board as the impartial arbitrator and chairperson of the
 
 9 arbitration panel.
 
10      Upon the selection and appointment of the arbitration panel,
 
11 each party shall submit to the panel, in writing, with copy to
 
12 the other party, a final offer which shall include all provisions
 
13 in any existing collective bargaining agreement not being
 
14 modified, all provisions already agreed to in negotiations, and
 
15 all further provisions other than those relating to the
 
16 employer's contributions [by the State and respective counties]
 
17 to the Hawaii public employees health fund which each party is
 
18 proposing for inclusion in the final agreement.
 
19      Within twenty calendar days of its appointment, the
 
20 arbitration panel shall commence a hearing at which time the
 
21 parties may submit either in writing or through oral testimony,
 
22 all information or data supporting their respective final offers.
 
23 Nothing in this section shall be construed to prohibit the
 

 
Page 45                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1 parties from reaching a voluntary settlement on the unresolved
 
 2 issues, with or without the assistance of a mediator, at any time
 
 3 prior to the conclusion of the hearing conducted by the
 
 4 arbitration panel.
 
 5      Within thirty calendar days after the conclusion of the
 
 6 hearing, a majority of the arbitration panel shall issue a final
 
 7 and binding decision.
 
 8      In reaching a decision, the arbitration panel shall give
 
 9 weight to the factors listed below and shall include in a written
 
10 opinion an explanation of how the factors were taken into account
 
11 in reaching the decision:
 
12      (1)  The lawful authority of the employer.
 
13      (2)  Stipulations of the parties.
 
14      (3)  The interests and welfare of the public.
 
15      (4)  The financial ability of the employer to meet these
 
16           costs.
 
17      (5)  The present and future general economic condition of
 
18           [the counties and] the State[.] and the respective
 
19           county.
 
20      (6)  Comparison of wages, hours, and conditions of
 
21           employment of the employees involved in the arbitration
 
22           proceeding with the wages, hours, and conditions of
 
23           employment of other persons performing similar
 

 
Page 46                                                    
                                     H.B. NO.1510       
                                                        
                                                        

 
 1           services, and of other state and county employees in
 
 2           Hawaii.
 
 3      (7)  The average consumer prices for goods or services,
 
 4           commonly known as the cost of living.
 
 5      (8)  The overall compensation presently received by the
 
 6           employees, including direct wage compensation,
 
 7           vacation, holidays and excused time, insurance and
 
 8           pensions, medical and hospitalization benefits, the
 
 9           continuity and stability of employment, and all other
 
10           benefits received.
 
11      (9)  Changes in any of the foregoing circumstances during
 
12           the pendency of the arbitration proceedings.
 
13     (10)  Such other factors, not confined to the foregoing,
 
14           which are normally or traditionally taken into
 
15           consideration in the determination of wages, hours, and
 
16           conditions of employment through voluntary collective
 
17           bargaining, mediation, fact-finding, arbitration, or
 
18           otherwise between the parties, in the public service or
 
19           in private employment.
 
20      The decision of the arbitration panel shall be final and
 
21 binding upon the parties on all provisions submitted to the
 
22 arbitration panel.  If the parties have reached agreement with
 
23 respect to the amounts of the employer's contributions [by the
 

 
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 1 State and counties] to the Hawaii public employees health fund by
 
 2 the tenth working day after the arbitration panel issues its
 
 3 decision, the final and binding agreement of the parties on all
 
 4 provisions shall consist of the panel's decision and the amounts
 
 5 of contributions agreed to by the parties.  If the parties have
 
 6 not reached agreement with respect to the amounts of the
 
 7 employer's contributions [by the State and counties] to the
 
 8 Hawaii public employees health fund by the close of business on
 
 9 the tenth working day after the arbitration panel issues its
 
10 decision, the parties shall have five days to submit their
 
11 respective recommendations for such contributions to the
 
12 legislature, if it is in session, and if the legislature is not
 
13 in session, the parties shall submit their respective
 
14 recommendations for such contributions to the legislature during
 
15 the next session of the legislature.  In such event, the final
 
16 and binding agreement of the parties on all provisions shall
 
17 consist of the panel's decision and the amounts of contributions
 
18 established by the legislature by enactment, after the
 
19 legislature has considered the recommendations for such
 
20 contributions by the parties.  It is strictly understood that no
 
21 member of a bargaining unit subject to this subsection shall be
 
22 allowed to participate in a strike on the issue of the amounts of
 
23 an employer's contributions [by the State and counties] to the
 

 
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 1 Hawaii public employees health fund.  The parties shall take
 
 2 whatever action is necessary to carry out and effectuate the
 
 3 final and binding agreement.  The parties may, at any time and by
 
 4 mutual agreement, amend or modify the panel's decision.
 
 5      Agreements reached pursuant to the decision of an
 
 6 arbitration panel and the amounts of the employer's contributions
 
 7 [by the State and counties] to the Hawaii public employees health
 
 8 fund, as provided herein, shall not be subject to ratification by
 
 9 the employees concerned.  All items requiring any moneys for
 
10 implementation shall be subject to appropriations by the
 
11 appropriate legislative [bodies] body and the employer shall
 
12 submit all such items within ten days after the date on which the
 
13 agreement is entered into as provided herein, to the appropriate
 
14 legislative [bodies.] body.
 
15      The costs for mediation shall be borne by the board.  All
 
16 other costs incurred by either party in complying with these
 
17 provisions, including the costs of its selected member on the
 
18 arbitration panel, shall be borne by the party incurring them,
 
19 except that all costs and expenses of the impartial arbitrator
 
20 shall be borne equally by the parties."
 
21      SECTION 23.  Section 89A-1, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "§89A-1 Office of collective bargaining in the state
 

 


 

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 1 government established.  There shall be established an office of
 
 2 collective bargaining in the office of the governor to assist the
 
 3 governor in negotiating with and entering into written agreements
 
 4 between the [public employers] State and the exclusive
 
 5 representatives on matters of wages, hours, and other negotiable
 
 6 terms and conditions of employment.
 
 7      The position of chief negotiator for the State is hereby
 
 8 established to head the office.  The chief negotiator shall be
 
 9 experienced in labor relations.  The governor shall appoint and
 
10 remove the chief negotiator and the deputy negotiators, who shall
 
11 not be subject to chapters 76, 77, and 89.  Effective January 1,
 
12 1989, and January 1, 1990, the salary of the chief negotiator
 
13 shall be set by the governor within the range from $69,748 to
 
14 $74,608 and $72,886 to $77,966 a year, respectively.  The chief
 
15 negotiator and deputy negotiators shall be included in any
 
16 benefit program generally applicable to the officers and
 
17 employees of the State.  All other employees shall be appointed
 
18 in accordance with chapters 76 and 77.  [The chief negotiator
 
19 shall serve as one of the governor's designated representatives
 
20 as set forth in section 89-6(b).]"
 
21      SECTION 24.  Section 89C-1, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "§89C-1 Purpose.  The legislature finds that existing
 

 
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 1 statutes do not permit the respective chief executives of the
 
 2 State and counties, the board of education, the board of regents,
 
 3 the auditor, the director of the legislative reference bureau,
 
 4 the ombudsman, and the chief justice of the supreme court
 
 5 sufficient flexibility to make appropriate and timely adjustments
 
 6 in the compensation, hours, terms, and conditions of employment,
 
 7 amounts of an employer's contributions [by the State and
 
 8 respective counties] to the Hawaii public employees health fund,
 
 9 and other benefits for their public officers and employees who
 
10 are excluded from collective bargaining coverage under  chapter
 
11 89.  To this end, the legislature grants to the respective chief
 
12 executives, the board of education, the board of regents, the
 
13 auditor, the director of the legislative reference bureau, the
 
14 ombudsman, and the chief justice, the authority to make such
 
15 adjustments for their officers and employees excluded from
 
16 collective bargaining in conformance with this chapter.
 
17      Nothing in this chapter shall be construed to interfere with
 
18 or diminish any authority already provided by statutes to the
 
19 chief executives, the board of education, the board of regents,
 
20 the auditor, the director of the legislative reference bureau,
 
21 the ombudsman, or the chief justice."
 
22      SECTION 25.  Section 89C-2, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "§89C-2 Adjustments authorized; limitations, restrictions.
 
 2 Any provision of law to the contrary notwithstanding, the
 
 3 compensation, hours, terms, and conditions of employment, amounts
 
 4 of an employer's contributions [by the State and respective
 
 5 counties] to the Hawaii public employees health fund, and other
 
 6 benefits for public officers and employees who are excluded from
 
 7 collective bargaining shall be adjusted by the respective chief
 
 8 executives of the State or counties, the board of education, the
 
 9 board of regents, the auditor, the director of the legislative
 
10 reference bureau, the ombudsman, or the chief justice, as
 
11 applicable.  The respective chief executives, the board of
 
12 education, the board of regents, the auditor, the director of the
 
13 legislative reference bureau, the ombudsman, and the chief
 
14 justice, or their designated representatives, shall determine the
 
15 adjustments to be made and which excluded officers or employees
 
16 are to be granted adjustments under this chapter, in accordance
 
17 with the following guidelines and limitations:
 
18      (1)  For excluded officers and employees under the same
 
19           compensation plans as officers and employees within
 
20           collective bargaining units[,] of the same
 
21           jurisdiction, such adjustments shall be not less than
 
22           those provided under collective bargaining agreements
 
23           for officers and employees hired on a comparable basis.
 

 
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 1      (2)  For excluded officers and employees in the excluded
 
 2           managerial compensation plan[,] of a jurisdiction, such
 
 3           adjustments shall be not less than those provided under
 
 4           collective bargaining to officers and employees in the
 
 5           professional and scientific employees bargaining
 
 6           unit[.] of the same jurisdiction.  Alternate
 
 7           adjustments may be granted to officers and employees
 
 8           whose work is related to that of officers and employees
 
 9           in the other optional bargaining units in order of the
 
10           same jurisdiction to maintain appropriate pay
 
11           relationships with such officers and employees.
 
12      (3)  No adjustment in compensation, hours, terms, and
 
13           conditions of employment, amounts of an employer's
 
14           contributions [by the State and respective counties] to
 
15           the Hawaii public employees health fund, or other
 
16           benefits shall be established which is in conflict with
 
17           the system of personnel administration based on merit
 
18           principles and scientific methods governing the
 
19           classification of positions and the employment conduct,
 
20           movement, and separation of public officers and
 
21           employees.
 
22      (4)  The compensation of officers or employees whose
 
23           salaries presently are limited or fixed by legislative
 

 
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 1           enactment shall not be adjusted under this chapter, but
 
 2           shall continue to be adjusted by the appointing
 
 3           authority within limits established by law or by
 
 4           legislative enactment.
 
 5      (5)  The compensation of officers or employees, who are not
 
 6           covered under the same compensation plans as officers
 
 7           and employees within collective bargaining units of the
 
 8           same jurisdiction and whose salaries presently are
 
 9           authorized to be fixed by the appointing authority,
 
10           need not be adjusted under this chapter.  The
 
11           appointing authority may continue to make specific
 
12           adjustments in the salaries of individual officers or
 
13           employees from available funds appropriated.
 
14      (6)  Adjustments to the amounts of an employer's
 
15           contributions [by the State and respective counties] to
 
16           the Hawaii public employees health fund on behalf of
 
17           officers or employees who are not covered by
 
18           adjustments made under this chapter shall be made by
 
19           legislative enactment."
 
20      SECTION 26.  Section 89C-3, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§89C-3 Adjustments for officers and employees covered by
 
23 chapter 77.  The state director of human resources development
 

 
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 1 [and], the directors of personnel services of the counties [who
 
 2 shall serve as representatives of their respective chief
 
 3 executives], and the administrative director of the courts [who
 
 4 shall serve as the representative of the chief justice, shall
 
 5 decide by majority vote on the adjustments] shall submit to their
 
 6 respective chief executives and to the chief justice,
 
 7 recommendations on the adjustments to be made under this chapter
 
 8 for officers and employees covered under chapter 77[.  Any
 
 9 adjustments and their effective dates shall be uniform among the
 
10 jurisdictions.] within their respective personnel systems."
 
11      SECTION 27.  Section 89C-4, Hawaii Revised Statutes, is
 
12 amended by amending subsection (a) to read as follows:
 
13      "(a)  The respective representatives of the State, counties,
 
14 and the judiciary shall submit to their respective chief
 
15 executives and to the chief justice, recommendations on the
 
16 adjustments to be made under this chapter for other officers and
 
17 employees within their respective personnel systems.  [The
 
18 conference of personnel directors shall confer prior to the
 
19 submittal of any recommended adjustment by each director to the
 
20 director's chief executive or by the administrative director of
 
21 the courts to the chief justice.  Any adjustments and their
 
22 effective dates shall be uniform, if practicable, among the
 
23 jurisdictions.]"
 

 
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                                     H.B. NO.1510       
                                                        
                                                        

 
 1      SECTION 28.  Section 89C-5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§89C-5 Implementation; effective date, appropriations,
 
 4 approval.(a)  Adjustments made under this chapter which do not
 
 5 exceed those for officers and employees in collective bargaining
 
 6 units of the same jurisdiction shall take effect on the same
 
 7 dates as appropriate collective bargaining agreements.  Any such
 
 8 adjustments which constitute cost items shall be subject to
 
 9 appropriations by the appropriate legislative [bodies.] body.
 
10 Such cost items shall be submitted separately from any cost items
 
11 under collective bargaining to the appropriate legislative
 
12 [bodies,] body, except that if appropriation by the state
 
13 legislature is required, and it is not in session at the time,
 
14 such cost items shall be submitted for inclusion in the
 
15 governor's next operating budget.  The [state legislature or the
 
16 legislative bodies of the counties acting in concert, as the case
 
17 may be,] appropriate legislative body may approve or reject the
 
18 cost items submitted to [them, as a whole.  If the state
 
19 legislature or the legislative body of any county rejects] it and
 
20 if any of the cost items [submitted to them,] are rejected, all
 
21 cost items shall be returned for revision.
 
22      (b)  Any other adjustments made under this chapter which
 
23 constitute cost items or which were specifically provided for by
 

 
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                                     H.B. NO.1510       
                                                        
                                                        

 
 1 legislative enactment shall be subject to approval or rejection
 
 2 [as a whole] by the appropriate legislative body.  [Such
 
 3 adjustments for officers and employees covered under chapter 77
 
 4 shall be subject to the approval or rejection as a whole by all
 
 5 appropriate legislative bodies acting in concert.]  If the state
 
 6 legislature or the legislative body of any county rejects any of
 
 7 the adjustments submitted to it, all adjustments for officers and
 
 8 employees covered under chapter 77 or all adjustments for other
 
 9 officers and employees, as the case may be, within the
 
10 jurisdiction shall be returned for revision.
 
11      (c)  The respective chief executives of the State or
 
12 counties, the board of education, the board of regents, the
 
13 auditor, the director of the legislative reference bureau, the
 
14 ombudsman, or the chief justice, shall not make any adjustments
 
15 nor use funds for purposes of this chapter without the prior
 
16 approval of the appropriate legislative [bodies] body as required
 
17 in this section."
 
18      SECTION 29.  Sections 76-2 and 76-3, Hawaii Revised Statutes
 
19 are repealed.
 
20      ["§76-2 Uniform interpretation.  It is the intent of the
 
21 legislature that the construction and interpretation of any of
 
22 the provisions of this chapter and of chapter 77 be uniform for
 
23 the State and the several counties.
 

 
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 1      All questions requiring the construction or interpretation
 
 2 of any of the provisions of this chapter or of chapter 77 shall
 
 3 be submitted to the attorney general for an opinion and the
 
 4 attorney general shall render an opinion promptly on any such
 
 5 question when requested by the head of any department of the
 
 6 State or any county.  In case the opinion is in conflict with an
 
 7 opinion rendered upon the same or substantially similar question
 
 8 by any county attorney or corporation counsel and the question
 
 9 upon which the opinion is rendered has been raised by a county,
 
10 the question may, either at the instance of the county attorney,
 
11 corporation counsel or the attorney general, be submitted to the
 
12 circuit court of the first judicial circuit for a declaratory
 
13 judgment on the question, and jurisdiction to hear and determine
 
14 the questions is hereby conferred upon the circuit court.  The
 
15 circuit court shall determine the question without delay.
 
16      §76-3 Uniform administration.  It is the intent of the
 
17 legislature that the system of personnel administration
 
18 established by this chapter and chapter 77 shall be as uniformly
 
19 administered as is practicable.  In order to promote such
 
20 uniformity, the several commissioners and directors of the state
 
21 department of human resources development and of the county
 
22 departments of civil service, the administrative director of the
 
23 courts, and the Hawaii health systems corporation chief executive
 

 
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                                     H.B. NO.1510       
                                                        
                                                        

 
 1 officer's designee shall meet at least once each year at the call
 
 2 of the director of human resources development of the State."]
 
 3      SECTION 30.  Section 76-5, Hawaii Revised Statutes, is
 
 4 repealed.
 
 5      ["§76-5 Furnishing of services and facilities.  Subject to
 
 6 the rules of the state department of human resources development,
 
 7 the director of human resources development may enter into
 
 8 agreements with the judiciary, any county, and the Hawaii health
 
 9 systems corporation to furnish services and facilities of the
 
10 state department to the judiciary, any county, and the Hawaii
 
11 health systems corporation in the administration of civil service
 
12 including position classification in the judiciary, any county,
 
13 and the Hawaii health systems corporation.  The agreements may
 
14 provide for the reimbursement to the State of the reasonable
 
15 value of the services and facilities furnished, as determined by
 
16 the director.  The judiciary, all counties, and the Hawaii health
 
17 systems corporation are authorized to enter into the
 
18 agreements."]
 
19      SECTION 31.  Section 76-7, Hawaii Revised Statutes, is
 
20 repealed.
 
21      ["§77-7 Appeal board procedure.  It shall be mandatory that
 
22 the appeal board established under section 77-4(c) shall comply
 
23 with chapter 91 in all respects."]
 

 
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                                     H.B. NO.1510       
                                                        
                                                        

 
 1      SECTION 32.  The substantive provisions of this Act shall
 
 2 amend any other conflicting Act enacted by the Regular Session of
 
 3 1996, but nonsubstantive amendments made by this Act shall not
 
 4 supersede any substantive amendments made to chapters 76, 77, 80,
 
 5 89, 89A, and 89C, Hawaii Revised Statutes, by any other Act
 
 6 enacted by this Regular Session of 1999.
 
 7      SECTION 33.  Statutory material to be repealed is bracketed.
 
 8 New statutory material is underscored.
 
 9      SECTION 34.  This Act shall take effect upon its approval.
 
10 
 
11                           INTRODUCED BY:  _______________________