REPORT TITLE: 
Civil Service Reform


DESCRIPTION:
Reforms public employment laws to improve the efficiency and
effectiveness of government consistent with article XIII,
section 2, and article XVI, section 1, of the Hawaii State
Constitution.  (SB2859 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2859
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 1
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC EMPLOYMENT.



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

 1      SECTION 1.  The purpose of this Act is to reform the public
 
 2 employment laws to improve the efficiency and effectiveness of
 
 3 government consistent with the article XIII, section 2, and
 
 4 article XVI, section 1 of the Hawaii State Constitution.
 
 5      SECTION 2.  Chapter 78, Hawaii Revised Statutes, is amended
 
 6 by adding a new part to be appropriately designated and to read
 
 7 as follows:
 
 8                   "PART  . VOLUNTARY SEPARATION
 
 9      §78-A  Findings and purpose.  The legislature finds that as
 
10 the State begins the new millennium, the citizens of Hawaii
 
11 require, demand, and deserve a government that is responsive,
 
12 efficient, and flexible to address the ever-changing needs of a
 
13 modern society. To effectively provide for the requirements of
 
14 the twenty-first century, government must reinvent itself and the
 
15 way it operates so that it will cost less, work better, and get
 
16 measurable results.  As such, it is the objective of the
 
17 legislature to facilitate the restructuring of government into an
 
18 organization that provides:
 
19      (1)  The best value for every taxpayer dollar;
 

 
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 1      (2)  The best service for each customer and regulated
 
 2           business;
 
 3      (3)  The best workplace for its employees; and
 
 4      (4)  The best legacy for Hawaii's future.
 
 5      The purpose of this part is to provide the governor,
 
 6 president of the university, superintendent of education, chief
 
 7 executive of the hawaii health systems corporation, and mayors of
 
 8 each of the counties with tools necessary to facilitate the
 
 9 restructuring of government.  Specifically, this part authorizes
 
10 planned workforce reduction programs offering payment of a
 
11 voluntary severance benefit or an early retirement incentive to
 
12 encourage employees in positions identified for layoff to
 
13 encourage voluntary separation from service.  Layoffs customarily
 
14 result in reduced productivity and inefficiency because of
 
15 operational adjustments necessary for placement/bumping rights
 
16 with red-circled pay, lowered morale of less senior employees who
 
17 fear being bumped, and heightened frustration of those employees
 
18 who meet the service, but not the age, requirements to qualify
 
19 for immediate retirement benefits.  By offering a voluntary
 
20 severance benefit or an early retirement incentive, which are
 
21 management-driven tools, workforce reductions can be planned and
 
22 made more expeditiously, and the disruption to operations and
 
23 personal lives that usually accompany forced layoffs can be
 
24 minimized or avoided.
 

 
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 1      §78-B  Definitions.  As used in this part:
 
 2      "Early retirement incentive" means the incentive offered to
 
 3 employees under section 78-E.
 
 4      "Employee" means an individual covered under chapter 88 and
 
 5 employed with the state executive branch, except for school level
 
 6 personnel with the department of education engaged in
 
 7 administrative or instructional work, such as, principals and
 
 8 teachers.
 
 9      "Voluntary severance benefit" means the benefit offered to
 
10 employees under section 78-D.
 
11      §78-C  Applicability.(a)  This part applies to employees
 
12 in the executive branch of state government, including employees
 
13 of the board of education, the board of regents, and the Hawaii
 
14 health systems corporation board.  
 
15      (b)  This part does not apply to the legislature, the
 
16 judiciary, or the office of Hawaiian affairs.
 
17      §78-D  Voluntary severance benefit.(a)  Any employee who
 
18 receives official notification of a reduction-in-force from an
 
19 appointing authority that the employee's position is specifically
 
20 eliminated or eliminated as a result of a workforce reduction
 
21 plan proposed by the department, may elect to receive a voluntary
 
22 severance benefit under this section in lieu of any reduction-in-
 
23 force rights to which the employee is entitled under a collective
 

 
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 1 bargaining agreement or rules.  An employee who is not entitled
 
 2 to reduction-in-force rights shall not be eligible to receive a
 
 3 voluntary severance benefit under this section.  An employee who
 
 4 elects to receive the early retirement incentive under section
 
 5 78-E shall not be paid a voluntary severance benefit under this
 
 6 section.
 
 7      (b)  A one-time lump sum cash bonus voluntary severance
 
 8 benefit shall be calculated and paid by the terminated employee's
 
 9 department.  The terminated employee's voluntary severance
 
10 benefit shall be equal to five per cent of the employee's base
 
11 annual salary for every year of service worked, up to ten years;
 
12 provided that the benefit shall not exceed fifty per cent of the
 
13 employee's annual base salary.
 
14      As used in this subsection, "base salary" means an
 
15 employee's annual salary for the position from which the employee
 
16 is to be separated, excluding all other forms of compensation
 
17 paid or accrued, whether a bonus, allowance, differential, or
 
18 value of leave or compensatory time off credits.  Compensation
 
19 excluded from base salary include but are not limited to:
 
20 shortage category differential, night shift differential,
 
21 overtime, compensatory time off credits, vacation or sick leave,
 
22 and workers' compensation benefits.
 

 
 
 
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 1      (c)  A voluntary severance benefit provided under this
 
 2 section shall not be considered as a part of a terminated
 
 3 employee's salary, service credit, or a collectively bargainable
 
 4 cost item when calculating retirement benefits or sick and
 
 5 vacation leave.
 
 6      (d)  The voluntary severance benefit shall be in addition to
 
 7 any payment owing to the employee for accumulated unused vacation
 
 8 allowances.  
 
 9      (e)  The voluntary separation benefit, payment of accrued
 
10 vacation leave, and the costs associated with providing these
 
11 benefits shall not exceed the participating employee's annual
 
12 salary within the fiscal year in which the employee separates
 
13 from service.
 
14      (f)  All voluntary severance benefits payable pursuant to
 
15 this section shall be subject to applicable state income tax laws
 
16 and rules.
 
17      (g)  No employee who has received a voluntary severance
 
18 benefit provided by this section shall be reemployed by the State
 
19 within five years of receiving the voluntary severance benefit
 
20 unless the gross amount of the voluntary severance benefit is
 
21 returned by the employee to the appropriate fund prior to the
 
22 commencement of reemployment.
 

 
 
 
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 1      (h)  The heads of all affected state departments shall
 
 2 transmit a list of all employees whose positions are eliminated
 
 3 and who elected and received voluntary severance benefits under
 
 4 this section to the directors of finance and human resources
 
 5 development.  The heads of all affected departments shall certify
 
 6 that the employees on the list have in fact selected the
 
 7 voluntary severance benefit, which shall be in lieu of an early
 
 8 retirement incentive under section 78-E and any reduction-in-
 
 9 force rights to which the employees may have been entitled.
 
10      §78-E  Early retirement incentive.(a)  Any employee who
 
11 receives official notification from an appointing authority that
 
12 the employee's position is specifically eliminated or eliminated
 
13 as a result of a workforce reduction plan proposed by the
 
14 department, may elect, if the employee is a vested member of the
 
15 employees' retirement system and meets any of the criteria
 
16 specified in subsection (c), the early retirement incentive
 
17 provided by this section.  If an employee is also eligible for a
 
18 voluntary severance benefit under section 78-D, the early
 
19 retirement incentive shall be in lieu of the voluntary severance
 
20 benefit and any reduction-in-force rights the employee may be
 
21 entitled to under a collective bargaining agreement or rules. To
 
22 receive the early retirement incentive under this section, the
 
23 employee shall comply with the requirements specified in
 
24 subsection (b).
 

 
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 1      (b)  An employee who elects to retire and receive the early
 
 2 retirement incentive under this section shall notify the
 
 3 employee's department by filing a formal application for
 
 4 retirement not less than thirty days nor more than ninety days
 
 5 prior to the date of retirement.
 
 6      (c)  Notwithstanding the age and length of service
 
 7 requirements of sections 88-73 and 88-28, an employee shall
 
 8 qualify for the early retirement incentive if, on the member's
 
 9 retirement date, the member meets any of the following criteria:
 
10      (1)  Has at least ten years of credited service as a
 
11           contributory class A or B member and is at least fifty
 
12           years of age;
 
13      (2)  Has at least twenty years of credited service as a
 
14           contributory class A or B member, irrespective of age;
 
15      (3)  Has at least ten years of credited service as a
 
16           noncontributory class C member and is at least fifty-
 
17           seven years of age; or 
 
18      (4)  Has at least twenty-five years of credited service as a
 
19           noncontributory class C member, irrespective of age.
 
20      (d)  The board of trustees of the employees' retirement
 
21 system shall make payments with respect to all eligible employees
 
22 who retire pursuant to this section.  The board shall determine
 
23 the portion of the additional actuarial present value of benefits
 

 
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 1 to be charged to the State based on retirements under the early
 
 2 retirement incentive program.  If necessary, the State shall make
 
 3 additional payments to the employees' retirement system in the
 
 4 amounts required to amortize the additional actuarial present
 
 5 value of benefits over a period of twenty years beginning January
 
 6 1, 2003.
 
 7      (e)  Any employee who exercises the option of early
 
 8 retirement under this section who does not qualify with respect
 
 9 to the age and length of service requirements under section 88-73
 
10 to receive a retirement benefit without penalty, shall not have
 
11 the retirement benefit reduced in accordance with the actuarial
 
12 formula normally used by the employees' retirement system for the
 
13 calculation of early retirement benefits.
 
14      The member shall forfeit any benefit derived from the early
 
15 retirement incentive, as determined by the board of trustees of
 
16 the employee's retirement system, upon subsequent reentry into
 
17 the employees' retirement system.
 
18      The early retirement incentive benefit, payment of accrued
 
19 vacation leave, and the costs associated with providing these
 
20 benefits shall not exceed that participating employee's annual
 
21 salary allotment
 
22      (f)  The heads of all affected state departments of
 
23 participating county shall transmit a list of employees whose
 

 
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 1 positions are eliminated and who elected and received early
 
 2 retirement incentives under this section to the board of trustees
 
 3 of the employees' retirement system not less than thirty days but
 
 4 not more than ninety days prior to the employees' retirement
 
 5 dates.  The heads of the affected department shall certify that
 
 6 the employees on the list have in fact selected the early
 
 7 retirement incentive, which shall be in lieu of a voluntary
 
 8 severance benefit under section 78-D and any reduction-in-force
 
 9 rights to which employees may have been entitled.
 
10      §78-F  Exception; disciplinary termination.  No voluntary
 
11 severance benefit or early retirement incentive benefit shall be
 
12 payable to a state employee terminated for disciplinary reasons
 
13 or for reasons other than a reduction in government workforce.
 
14      §78-G  Vacated positions.(a)  All positions vacated by
 
15 employees who are provided a voluntary severance benefit under
 
16 section 78-D or an early retirement incentive under section 78-E
 
17 shall be abolished upon the employees' separation from service.  
 
18      (b)  All funds allocated for the salary of the position
 
19 vacated and abolished pursuant to this part shall be lapsed to
 
20 the appropriate fund from which the position is funded, as
 
21 applicable, upon the separation of the employee and after the
 
22 deduction of amounts sufficient to cover the voluntary severance
 
23 benefit or the costs, direct or indirect, associated with the
 

 
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 1 retiring employee's early retirement incentive, and the
 
 2 accumulated vacation leave of the employee who occupied the
 
 3 position.
 
 4      (c)  All state departments affected by the voluntary
 
 5 severance benefit and early retirement incentive authorized by
 
 6 this part shall reduce its personnel count by the equivalent of
 
 7 each voluntary severance benefit and each early retirement
 
 8 incentive conferred.  Each state department shall forward a
 
 9 report on the positions affected to the directors of finance and
 
10 human resources development who shall then abolish the vacated
 
11 positions from the appropriate budget and personnel data files.  
 
12      §78-H  Guidelines.  The department of human resources
 
13 development and the department of budget and finance shall
 
14 develop guidelines for participating agencies to facilitate the
 
15 implementation of the voluntary severance benefit provided in
 
16 section 78-D and the early retirement incentive provided in
 
17 section 78-E.
 
18      §78-I  Informational briefings.  The department of human
 
19 resources development, in cooperation with the employees'
 
20 retirement system, shall provide briefings to state employees
 
21 prior to the implementation of any strategic workforce reduction
 
22 plan to educate those employees whose positions are being
 
23 eliminated.
 

 
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 1      §78-J  Annual reports.  The governor shall report to the
 
 2 legislature no later than twenty days prior to the convening of
 
 3 each regular session on the restructuring or re-engineering
 
 4 activities initiated within the various departments and the
 
 5 positions abolished by offering a voluntary severance benefit or
 
 6 an early retirement incentive as a consequence of this part.
 
 7      §78-K  County participation; optional.  The city and county
 
 8 of Honolulu, the county of Hawaii, the county of Kauai, or the
 
 9 county of Maui may opt to provide the early retirement incentive
 
10 to their respective employees under a planned workforce reduction
 
11 program; provided that the early retirement incentive shall be
 
12 consistent with all of the provisions in section 78-E and shall
 
13 be in lieu of any voluntary severance benefit that a county may
 
14 provide.  The provisions of section 78-E(d) shall apply, except
 
15 for the beginning date to make additional payments to the
 
16 employees' retirement system in the amounts required to amortize
 
17 the additional actuarial present value of benefits over a period
 
18 of twenty years.  All references to the State in section 78-E
 
19 shall include the county opting to provide the early retirement
 
20 incentive.  The mayor of the respective county shall ensure that
 
21 approval of its respective legislative body is obtained, if
 
22 required, before offering the early retirement incentive under
 
23 section 78-E."
 

 
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 1      SECTION 3.  Chapter 77, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§77-    Classifications by directors.  Notwithstanding any
 
 5 provision of this chapter to the contrary, each director may
 
 6 establish, implement, and maintain one or more classification
 
 7 systems covering civil service positions within their respective
 
 8 jurisdictions; provided that the principle of equal pay for equal
 
 9 work is maintained on a statewide basis.  The director shall
 
10 establish rules that allow for review and appeal of
 
11 classification and initial pricing actions."
 
12      SECTION 4.  Chapter 78, Hawaii Revised Statutes, is amended
 
13 by adding a two new sections to be appropriately designated and
 
14 to read as follows:
 
15      "§78-    Drug testing of applicants.  (a)  An applicant who
 
16 is slated for hiring in a safety sensitive position may be
 
17 subject to preemployment drug testing to be performed in
 
18 accordance with the standards established in chapter 329B.
 
19      (b)  An applicant may be denied employment for a positive
 
20 drug test unless the test results are deemed unreliable and
 
21 improper under the circumstances.
 
22      §78-    Managed competition.  The State and counties may
 
23 establish a program and procedure for public and private
 

 
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 1 competition for government services through a managed process
 
 2 that determines whether a particular service can be provided more
 
 3 efficiently, effectively, and economically by a public agency or
 
 4 a private enterprise. The managed process shall consider all
 
 5 relevant costs, identify the types of contracts to be included,
 
 6 and ensure that civil service laws, merit principles, and
 
 7 collective bargaining laws are not violated."
 
 8      SECTION 5.  Chapter 80, Hawaii Revised Statutes, is amended
 
 9 by adding a new section to be appropriately designated and to
 
10 read as follows:
 
11      "§80-    Abusive use of overtime assignments.  (a)  No
 
12 officer or employee shall assign to oneself or others excessive
 
13 overtime for the purpose of increasing an employee's average
 
14 final compensation as defined in section 88-21.
 
15      (b)  Any violation of this section shall be reported to the
 
16 employees' retirement system and the improper amount of overtime
 
17 compensation received shall be deducted from the calculation of
 
18 the employee's average final compensation."
 
19      SECTION 6.  Chapter 89C, Hawaii Revised Statutes, is amended
 
20 by adding a new section to be appropriately designated and to
 
21 read as follows:
 
22      "§89C-    Accountability for performance ratings.  (a)
 
23 Excluded officers and employees under this chapter shall be
 

 
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 1 responsible for true and accurate performance ratings of all
 
 2 subordinate employees and shall certify that their ratings are
 
 3 consistent with the requirement of sections 76-1 and 76-41 that
 
 4 unnecessary and inefficient employees be eliminated.
 
 5      (b)  Any officer or employee under this chapter who:
 
 6      (1)  Does not submit true and accurate performance ratings
 
 7           for all subordinates; and
 
 8      (2)  Submits a false certification that a subordinate
 
 9           employee is necessary and efficient,
 
10 may be suspended, demoted, transferred, or removed."
 
11      SECTION 7.  Section 76-5.5, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§76-5.5  Recruitment flexibility for the counties, the
 
14 judiciary, and the Hawaii health systems corporation.(a)
 
15 Notwithstanding section 76-23, or any other provision to the
 
16 contrary, the directors of the county departments of civil
 
17 service, the administrative director of the courts, and the
 
18 Hawaii health systems corporation chief executive officer's
 
19 designee may determine, establish, and maintain the manner in
 
20 which positions shall be filled in accordance with section 78-1
 
21 and the following standards: 
 
22      (1)  Equal opportunity for all regardless of race, sex, age,
 
23           religion, color, ancestry, physical handicap, or
 
24           politics; 
 

 
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 1      (2)  First consideration for competent employees already
 
 2           within public service; [and]
 
 3      (3)  Impartial selection of the ablest person through
 
 4           competitive means [which] that are fair, objective, and
 
 5           practical[.]; and
 
 6      (4)  Equal pay for equal work on a statewide basis.
 
 7      (b)  The director shall seek continuous improvements to
 
 8 streamline the recruitment process so that positions are filled
 
 9 in the most economic, efficient, and expeditious manner possible
 
10 whether it involves a change in the manner in which initial
 
11 appointments are to be made, increased delegation to departments,
 
12 or decentralization to appointing authorities, as necessary and
 
13 appropriate.  This includes maximizing use of new technologies
 
14 and developing more efficient alternatives to ensure the
 
15 availability of qualified applicant pools."
 
16      SECTION 8. Section 76-41, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§76-41  Performance ratings.  (a)  There shall be
 
19 established and maintained a system of performance ratings for
 
20 the purpose of appraising the service of employees in the civil
 
21 service and improving the employees' performance. Each department
 
22 shall rate each employee under its jurisdiction in accordance
 
23 with the system and shall[, upon request by the director of the
 

 
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 1 respective jurisdiction,] transmit the final [performance]
 
 2 ratings to the director of human resources development. A copy of
 
 3 the [final] performance rating shall also be given to the
 
 4 affected employee[, and the original shall be filed in the
 
 5 employee's official personnel file]. 
 
 6      (b)  The department head shall inform an employee in writing
 
 7 whenever the employee's performance in the employee's position is
 
 8 substandard. The employee shall also be notified in the notice
 
 9 and from time to time thereafter as may be necessary, of the
 
10 manner in which the employee's performance is substandard. An
 
11 employee who has been forewarned of substandard performance and
 
12 afforded an adequate opportunity for retraining, may be
 
13 suspended, demoted, transferred, or removed for continued
 
14 substandard performance, subject to the grievance procedure
 
15 established pursuant to law.
 
16      (c)  Public officers and employees excluded from collective
 
17 bargaining under chapter 89C shall certify all performance
 
18 ratings of subordinate employees to be consistent with the
 
19 requirement of section 76-1 that all unnecessary and inefficient
 
20 employees be eliminated."
 
21      SECTION 9.  Section 76-48, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
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 1      "§76-48  Appeals from action of director or appointing
 
 2 authority.  As to any matter within the scope of this part, any
 
 3 person suffering legal wrong because of any action by the
 
 4 director of human resources development or the person's
 
 5 appointing authority, or adversely affected or aggrieved by such
 
 6 action, shall be entitled to appeal to the civil service
 
 7 commission[.] except for disputes relating to wages, hours, and
 
 8 working conditions of bargaining unit employees and positions
 
 9 under chapter 89.  The appeal shall be made within twenty days
 
10 after notice of the action has been sent to the person and shall
 
11 be heard in a manner similar to that provided in this chapter."
 
12      SECTION 10.  Section 76-79, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§76-79  Rules [and regulations,]; general policy.  (a)  The
 
15 rules [and regulations prescribed] adopted by each commission
 
16 shall, among other things, recognize and be in conformity to the
 
17 distinction between matters of policy, which are by this chapter
 
18 and chapter 77 left for the determination of the commission, and
 
19 matters of technique and administration, which are by the
 
20 chapters, left for execution by the personnel director. 
 
21      (b)  Notwithstanding chapter 91 to the contrary, the
 
22 commission and director shall not be required to comply with
 
23 rulemaking procedures that unduly delay the process of
 
24 recruitment and classification of public employees."
 

 
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 1      SECTION 11.  Section 78-12, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (e) to read as follows:
 
 3      "(e)  If the indebtedness has occurred as a result of salary
 
 4 or wage overpayment, due to the mistake of law or fact under
 
 5 chapter 79 within the past year, the comptroller or other officer
 
 6 shall determine the amount of indebtedness [and], notify the
 
 7 employee and the employee representative in writing of the
 
 8 indebtedness[.], and proceed with the appropriate deductions as
 
 9 provided herein, subject to the grievance procedure under
 
10 sections 76-42, 89- 10(a), or 89-11(a), which shall afford the
 
11 employee meaningful remedies in the appropriate case.  If [the
 
12 employee contests the comptroller or other officer's
 
13 determination of indebtedness, the employee may request a hearing
 
14 pursuant to chapter 91, and upon conclusion of the hearing or if
 
15 the employee waives the hearing, if] the indebtedness is equal to
 
16 or less than $1,000, the comptroller or other officer shall
 
17 immediately deduct from any subsequent periodic payment normally
 
18 due the employee any amount up to the total amount of
 
19 indebtedness.  For indebtedness greater than $1,000, the
 
20 comptroller or other officer shall deduct:
 
21      (1)  An amount agreed to by the employee and employer, but
 
22           not less than $100 per pay period; or
 

 
 
 
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 1      (2)  One-quarter of the salary, wages, or compensation due
 
 2           the employee until the indebtedness is repaid in full."
 
 3      SECTION 12. Section 89-2, Hawaii Revised Statutes, is
 
 4 amended as follows:
 
 5      1.  By amending the definition of "employer" or "public
 
 6 employer" to read:
 
 7      ""Employer" or "public employer" means the governor in the
 
 8 case of the State, the respective mayors in the case of the city
 
 9 and county of Honolulu and the counties of Hawaii, Maui, and
 
10 Kauai, the chief justice in the case of the judiciary, the board
 
11 of education and the superintendent in the case of the department
 
12 of education, [and] the board of regents and the president in the
 
13 case of the University of Hawaii, and the chief executive officer
 
14 in the case of the Hawaii health systems corporation, and any
 
15 individual who represents one of these employers or acts in their
 
16 interest in dealing with public employees.  [In the case of the
 
17 judiciary, the governor shall be the employer for the purposes of
 
18 this chapter.]"
 
19      2.  By repealing the definitions of "essential employee" and
 
20 "essential position":
 
21      [""Essential employee" means an employee designated by the
 
22 public employer to fill an essential position. 
 

 
 
 
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 1      "Essential position" means any position designated by the
 
 2 board as necessary to be worked in order to avoid or remove any
 
 3 imminent or present danger to the public health or safety, which
 
 4 position shall be filled by the public employer."]
 
 5      SECTION 13.  Section 89-6, Hawaii Revised Statutes, is
 
 6 amended by amending subsection (b) to read as follows:
 
 7      "(b)  For the purpose of negotiations, the public employer
 
 8 of an appropriate bargaining unit shall mean [the]:
 
 9      (1)  The governor or the governor's designated
 
10           representatives of not [less] fewer than [three] four,
 
11           together with not more than two members of the board of
 
12           education and the superintendent of education, in the
 
13           case of units (5) and (6)[, the];
 
14      (2)  The governor or the governor's designated
 
15           representatives of not [less] fewer than [three] four,
 
16           together with not more than two members of the board of
 
17           regents and the president of the University of Hawaii,
 
18           in the case of units (7) and (8)[,];
 
19      (3)  The governor or the governor's designated
 
20           representatives of not fewer than three, together with
 
21           the mayors of all the counties or their designated
 
22           representatives, in the case of bargaining units 11 and
 
23           12; and [the]
 

 
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 1      (4)  The governor or the governor's designated
 
 2           representatives, together with the mayors of all the
 
 3           counties or their designated representatives, the chief
 
 4           justice of the Supreme Court or designated
 
 5           representative, and the chief executive officer of the
 
 6           Hawaii health systems corporation or designated
 
 7           representative, in the case of the remaining units. 
 
 8      The designated employer representatives for units (5), (6),
 
 9 (7), and (8) shall each have one vote; the governor shall have
 
10 three votes and the mayor of each county shall each have one vote
 
11 for units (11) and (12); and in the case of the remaining units,
 
12 the governor shall be entitled to [four] six votes and the mayor
 
13 of each county, the chief justice of the Supreme Court, and the
 
14 chief executive officer of the Hawaii health systems corporation
 
15 shall each have one vote, which may be assigned to their
 
16 designated representatives.  Any decision to be reached by the
 
17 applicable employer group shall be on the basis of simple
 
18 majority."
 
19      SECTION 14. Section 89-10, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "§89-10  Written agreements; appropriations for
 
22 implementation; enforcement.(a)  Any collective bargaining
 
23 agreement reached between the employer and the exclusive
 

 
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 1 representative shall be subject to ratification by the employees
 
 2 concerned.  The agreement shall be reduced to writing and
 
 3 executed by both parties.  The agreement may contain a grievance
 
 4 procedure and an impasse procedure culminating in final and
 
 5 binding arbitration, and shall be valid and enforceable when
 
 6 entered into in accordance with provisions of this chapter.
 
 7      (b)  All cost items shall be subject to appropriations by
 
 8 the appropriate legislative bodies.  The employer shall submit
 
 9 within ten days of the date on which the agreement is ratified by
 
10 the employees concerned all cost items contained therein to the
 
11 appropriate legislative bodies, except that if any cost items
 
12 require appropriation by the state legislature and it is not in
 
13 session at the time, the cost items shall be submitted for
 
14 inclusion in the governor's next operating budget within ten days
 
15 after the date on which the agreement is ratified.  The state
 
16 legislature or the legislative bodies of the counties acting in
 
17 concert, as the case may be, may approve or reject the cost items
 
18 submitted to them, as a whole.  If the state legislature or the
 
19 legislative body of any county rejects any of the cost items
 
20 submitted to them, all cost items submitted shall be returned to
 
21 the parties for further bargaining.
 
22      (c)  Because effective and orderly operations of government
 
23 are essential to the public, it is declared to be in the public
 

 
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 1 interest that in the course of collective bargaining, the public
 
 2 employer and the exclusive representative for each bargaining
 
 3 unit shall by mutual agreement include provisions in the
 
 4 collective bargaining agreement for that bargaining unit for an
 
 5 expiration date [which] that will be on June 30th of an odd-
 
 6 numbered year.
 
 7      Bargaining over renewed agreements shall commence on January
 
 8 1 of the preceding even numbered year and all alternative dispute
 
 9 resolution procedures under section 89-11 shall be completed by
 
10 no later than December 31 of that year.  Cost items shall be
 
11 submitted to the legislative bodies for appropriations no later
 
12 than January 31 of the subsequent odd-numbered year, except in
 
13 instances where a strike is called under section 89-12 or for
 
14 reasons beyond the control of the parties the deadline cannot be
 
15 met in which case cost items shall be submitted for
 
16 appropriations as soon as possible thereafter.  Cost items
 
17 submitted after the deadlines imposed by this subsection shall
 
18 not include any item to be paid retroactively.
 
19      The parties may include provisions for the reopening date
 
20 during the term of a collective bargaining agreement[,]; provided
 
21 that such provisions shall not allow for the reopening of cost
 
22 items as defined in section 89-2.
 

 
 
 
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                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      (d)  All existing rules [and regulations] adopted by the
 
 2 employer, including civil service or other personnel
 
 3 [regulations, which] rules that are not contrary to this chapter,
 
 4 shall remain applicable.  If there is a conflict between the
 
 5 collective bargaining agreement and any of the rules [and
 
 6 regulations], the terms of the agreement shall prevail; provided
 
 7 that the terms are not inconsistent with section 89-9(d).
 
 8      (e)  A public employer and an exclusive bargaining agent may
 
 9 mutually agree and enter into a written memorandum of agreement
 
10 affecting the terms and conditions of employment of employees of
 
11 their respective jurisdictions without the approval or consent of
 
12 other employers.  The duration of all written memoranda of
 
13 agreement shall not extend beyond the expiration date of the
 
14 applicable and current multi-employer agreements under subsection
 
15 (c), unless extended by mutual consent in writing when the
 
16 pertinent multi-employer agreement is either extended by the
 
17 parties or executed for the new term."
 
18      SECTION 15.  Section 89-11, Hawaii Revised Statutes, is
 
19 amended by amending subsection (d) to read as follows: 
 
20      "(d)  If a dispute between a public employer and the
 
21 exclusive representative of [appropriate bargaining unit (2),
 
22 supervisory employees in blue collar positions; appropriate
 
23 bargaining unit (3), nonsupervisory employees in white collar
 

 
Page 25                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

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

 
Page 26                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

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

 
Page 27                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      In the event that the two previously selected arbitration
 
 2 panel members fail to select an impartial third arbitrator within
 
 3 twenty-four working days from the date of impasse, the board
 
 4 shall request the American Arbitration Association, or its
 
 5 successor in function, to furnish a list of five qualified
 
 6 arbitrators from which the impartial arbitrator shall be
 
 7 selected.  Within five calendar days after receipt of such list,
 
 8 the parties shall alternately strike names therefrom until a
 
 9 single name is left, who shall be immediately appointed by the
 
10 board as the impartial arbitrator and chairman of the arbitration
 
11 panel.
 
12      Upon the selection and appointment of the arbitration panel,
 
13 each party shall submit to the panel, in writing, with copy to
 
14 the other party, a final offer [which] that shall include all
 
15 provisions in any existing collective bargaining agreement not
 
16 being modified, all provisions already agreed to in negotiations,
 
17 and all further provisions other than those relating to
 
18 contributions by the State and respective counties to the Hawaii
 
19 public employees health fund [which] that each party is proposing
 
20 for inclusion in the final agreement.
 
21      Within twenty calendar days of its appointment, the
 
22 arbitration panel shall commence a hearing at which time the
 
23 parties may submit either in writing or through oral testimony,
 

 
Page 28                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1 all information or data supporting their respective final offers.
 
 2 Nothing in this section shall be construed to prohibit the
 
 3 parties from reaching a voluntary settlement on the unresolved
 
 4 issues, with or without the assistance of a mediator, at any time
 
 5 prior to the conclusion of the hearing conducted by the
 
 6 arbitration panel.
 
 7      Within thirty calendar days after the conclusion of the
 
 8 hearing, a majority of the arbitration panel shall issue a final
 
 9 and binding decision.
 
10      In reaching a decision, the arbitration panel shall give
 
11 weight to the factors listed below and shall include in a written
 
12 opinion an explanation of how the factors were taken into account
 
13 in reaching the decision:
 
14      (1)  The lawful authority of the employer[.];
 
15      (2)  Stipulations of the parties[.];
 
16      (3)  The interests and welfare of the public[.];
 
17      (4)  The financial ability of the employer to meet these
 
18           costs[.];
 
19      (5)  The present and future general economic condition of
 
20           the counties and the State[.];
 
21      (6)  Comparison of wages, hours, and conditions of
 
22           employment of the employees involved in the arbitration
 
23           proceeding with the wages, hours, and conditions of
 

 
Page 29                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

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

 
Page 30                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1 respect to the amounts of contributions by the State and counties
 
 2 to the Hawaii public employees health fund by the tenth working
 
 3 day after the arbitration panel issues its decision, the final
 
 4 and binding agreement of the parties on all provisions shall
 
 5 consist of the panel's decision and the amounts of contributions
 
 6 agreed to by the parties.  If the parties have not reached
 
 7 agreement with respect to the amounts of contributions by the
 
 8 State and counties to the Hawaii public employees health fund by
 
 9 the close of business on the tenth working day after the
 
10 arbitration panel issues its decision, the parties shall have
 
11 five days to submit their respective recommendations for such
 
12 contributions to the legislature, if it is in session, and if the
 
13 legislature is not in session, the parties shall submit their
 
14 respective recommendations for such contributions to the
 
15 legislature during the next session of the legislature.  In such
 
16 event, the final and binding agreement of the parties on all
 
17 provisions shall consist of the panel's decision and the amounts
 
18 of contributions established by the legislature by enactment,
 
19 after the 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 contributions by the State and counties to the Hawaii public
 

 
Page 31                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1 employees health fund.  The parties shall take whatever action is
 
 2 necessary to carry out and effectuate the final and binding
 
 3 agreement.  The parties may, at any time and by mutual agreement,
 
 4 amend or modify the panel's decision.
 
 5      Agreements reached pursuant to the decision of an
 
 6 arbitration panel and the amounts of contributions by the State
 
 7 and counties to the Hawaii public employees health fund, as
 
 8 provided herein, shall not be subject to ratification by the
 
 9 employees concerned.  All items requiring any moneys for
 
10 implementation shall be subject to appropriations by the
 
11 appropriate legislative bodies and the employer shall submit all
 
12 such items within ten days after the date on which the agreement
 
13 is entered into as provided herein, to the appropriate
 
14 legislative bodies.
 
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 16. Section 89-12, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
Page 32                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      "§89-12  Strikes, rights and prohibitions.(a)
 
 2 Participation in a strike shall be unlawful for any employee who
 
 3 is:
 
 4      (1)  [is not] Not included in an appropriate bargaining unit
 
 5           for which an exclusive representative has been
 
 6           certified by the board[,]; or
 
 7      (2)  [is included] Included in an appropriate bargaining
 
 8           unit for which process for resolution of a dispute is
 
 9           by referral to final and binding arbitration[, or (3)
 
10           is an essential employee].
 
11      (b) It shall be lawful for an employee, who is not
 
12 prohibited from striking under paragraph (a) and who is in the
 
13 appropriate bargaining unit involved in an impasse, to
 
14 participate in a strike after:
 
15      (1)  [the] The requirements of section 89-11 relating to the
 
16           resolution of disputes have been complied with in good
 
17           faith[,];
 
18      (2)  [the] The proceedings for the prevention of any
 
19           prohibited practices have been exhausted[,];
 
20      (3)  [sixty] Sixty days have elapsed since the fact-finding
 
21           board has made public its findings and any
 
22           recommendation[,]; and
 

 
 
 
Page 33                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      (4)  [the] The exclusive representative has given a ten-day
 
 2           notice of intent to strike to the board and to the
 
 3           employer.
 
 4      [(c) (1)  If a strike, which may endanger the health or
 
 5           safety of the public, is about to occur or is in
 
 6           progress, the public employer concerned may petition
 
 7           the board to make an investigation.  If the board finds
 
 8           that there is imminent or present danger to the health
 
 9           or safety of the public, the board shall establish
 
10           specific requirements that must be complied with and
 
11           which shall include, but not be limited to:
 
12           (A)  Designation of essential positions; and
 
13           (B)  Any other requirement it deems necessary in order
 
14                to avoid or remove any imminent or present danger
 
15                to the health or safety of the public.
 
16      (2)  The public employer shall give notice to an essential
 
17           employee:
 
18           (A)  By serving or delivering a copy thereof to the
 
19                essential employee being notified; or
 
20           (B)  By mailing a copy thereof by certified or
 
21                registered mail, return receipt requested,
 
22                deliverable to the addressee only, addressed to
 
23                the essential employee being notified at the
 
24                essential employee's place of residence; or
 

 
Page 34                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1           (C)  If service cannot be effected as set forth in
 
 2                (2)(A) or (2)(B) above, or if the strike is in
 
 3                progress, by publishing at least once a day for
 
 4                three consecutive days, a copy thereof in both of
 
 5                the newspapers having the largest general
 
 6                circulation in the State.  After the final
 
 7                publication, it shall be conclusively presumed
 
 8                that the essential employee has received such
 
 9                notice.
 
10           After receipt of notice, it shall be the duty of the
 
11           essential employee to contact the public employer for
 
12           the essential employee's work assignment.
 
13      (d)] (c)  No employee organization shall declare or
 
14 authorize a strike of employees, which is or would be in
 
15 violation of this section.  Where it is alleged by the public
 
16 employer that an employee organization has declared or authorized
 
17 a strike of employees [which] that is or would be in violation of
 
18 this section, the public employer may apply to the board for a
 
19 declaration that the strike is or would be unlawful and the
 
20 board, after affording an opportunity to the employee
 
21 organization to be heard on the application, may make such a
 
22 declaration.
 

 
 
 
Page 35                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      [(e)] (d)  If any employee organization or any employee is
 
 2 violating or failing to comply with the requirements of this
 
 3 section, or if there is reasonable cause to believe that an
 
 4 employee organization or an employee will violate or fail to
 
 5 comply with such requirements, the public employer affected
 
 6 shall, forthwith, institute appropriate proceedings in the
 
 7 circuit in which the violation occurs to enjoin the performance
 
 8 of any acts or practices forbidden by this section, or to require
 
 9 the employee organization or employees to comply with the
 
10 requirements of this section.  Jurisdiction to hear and dispose
 
11 of all actions under this section is conferred upon each circuit
 
12 court, and each court may issue in compliance with chapter 380,
 
13 such orders and decrees, by way of injunction, mandatory
 
14 injunction, or otherwise, as may be appropriate to enforce this
 
15 section.  The right to a jury trial shall not apply to any
 
16 proceeding brought under this section."
 
17      SECTION 17.  Section 89C-2, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§89C-2  Adjustments authorized; limitations, restrictions.
 
20 Any provision of law to the contrary notwithstanding, the
 
21 compensation, hours, terms, and conditions of employment, amounts
 
22 of contributions by the State and respective counties to the
 
23 Hawaii public employees health fund, and other benefits for
 

 
Page 36                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1 public officers and employees who are excluded from collective
 
 2 bargaining shall be adjusted, consistent with the performance-
 
 3 based standards by the chief executives of the State or counties,
 
 4 the board of education, the board of regents, the auditor, the
 
 5 director of the legislative reference bureau, the ombudsman, or
 
 6 the chief justice, as applicable.  The chief executives, the
 
 7 board of education, the board of regents, the auditor, the
 
 8 director of the legislative reference bureau, the ombudsman, and
 
 9 the chief justice, or their designated representatives, shall
 
10 determine the adjustments to be made and which excluded officers
 
11 or employees are to be granted adjustments under this chapter, in
 
12 accordance with the following guidelines and limitations:
 
13      (1)  For excluded officers and employees under the same
 
14           compensation plans as officers and employees within
 
15           collective bargaining units, such adjustments shall be
 
16           not less than those provided under collective
 
17           bargaining agreements for officers and employees hired
 
18           on a comparable basis[.]; provided that the officer or
 
19           employee meets all applicable performance-based
 
20           standards;
 
21      (2)  For excluded officers and employees in the excluded
 
22           managerial compensation plan, such adjustments shall be
 
23           not less than those provided under collective
 

 
Page 37                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1           bargaining to officers and employees in the
 
 2           professional and scientific employees bargaining
 
 3           unit[.]; provided that the officer or employee meets
 
 4           all applicable performance-based standards.  Alternate
 
 5           adjustments may be granted to officers and employees
 
 6           whose work is related to that of officers and employees
 
 7           in the other optional bargaining units [in order] to
 
 8           maintain appropriate pay relationships with such
 
 9           officers and employees[.]; provided that the officer or
 
10           employee meets all applicable performance-based
 
11           standards;
 
12      (3)  No adjustment in compensation, hours, terms, and
 
13           conditions of employment, amounts of contributions by
 
14           the State and respective counties to the Hawaii public
 
15           employees health fund, or other benefits shall be
 
16           established [which] that is in conflict with the system
 
17           of personnel administration based on merit principles
 
18           and scientific methods governing the classification of
 
19           positions and the employment conduct, movement, and
 
20           separation of public officers and employees[.];
 
21      (4)  The compensation of officers or employees whose
 
22           salaries presently are limited or fixed by legislative
 
23           enactment shall not be adjusted under this chapter, but
 

 
Page 38                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1           shall continue to be adjusted by the appointing
 
 2           authority within limits established by law or by
 
 3           legislative enactment[.]; provided that the officer or
 
 4           employee meets all applicable performance-based
 
 5           standards;
 
 6      (5)  The compensation of officers or employees, who are not
 
 7           covered under the same compensation plans as officers
 
 8           and employees within collective bargaining units and
 
 9           whose salaries presently are authorized to be fixed by
 
10           the appointing authority, need not be adjusted under
 
11           this chapter.  The appointing authority may continue to
 
12           make specific adjustments in the salaries of individual
 
13           officers or employees from available funds
 
14           appropriated[.]; provided that the officer or employee
 
15           meets all applicable performance-based standards; and
 
16      (6)  Adjustments to the amounts of contributions by the
 
17           State and respective counties to the Hawaii public
 
18           employees health fund on behalf of officers or
 
19           employees who are not covered by adjustments made under
 
20           this chapter shall be made by legislative enactment."
 
21      SECTION 18.  The board of directors of the Hawaii health
 
22 systems corporation shall conduct a study to determine the
 
23 feasibility of an employee stock ownership plan to improve the
 

 
Page 39                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1 efficiency and effectiveness of public operations through a
 
 2 managed process of public-private competition.  The board shall
 
 3 submit its report of findings and recommendations to the
 
 4 legislature no later than twenty days prior to the convening of
 
 5 the 2001 regular session of the legislature.
 
 6      SECTION 19.  There is appropriated out of the pension
 
 7 accumulation fund the sum of $1 or so much thereof as may be
 
 8 necessary for fiscal year 2000-2001 for the employees' retirement
 
 9 system to process the early retirement incentives provided by
 
10 this Act.
 
11      The sum appropriated shall be expended by the employees'
 
12 retirement system for the purposes of this Act.
 
13      SECTION 20.  There is appropriated out of the general
 
14 revenues of the State of Hawaii the sum of $1 or so much thereof
 
15 as may be necessary for fiscal year 2000-2001 for the following
 
16 departments to process the voluntary severance benefits provided
 
17 by this Act:
 
18      Department of budget and finance            $
 
19      Department of education                     $
 
20      University of Hawaii                        $
 
21      Hawaii health systems corporation           $
 

 
 
 
 
 
Page 40                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      The sum appropriated shall be expended as indicated by the
 
 2 department of budget and finance, the department of education,
 
 3 the University of Hawaii, and the Hawaii health systems
 
 4 corporation for the purposes of this Act.
 
 5      SECTION 21.  There is appropriated out of the general
 
 6 revenues of the State of Hawaii the sum of $1 or so much thereof
 
 7 as may be necessary for fiscal year 2000-2001 for the development
 
 8 of inservice training programs to improve the quality of service
 
 9 of government employees.
 
10      The sum appropriated shall be expended by the department of
 
11 human resources and development for the purposes of this Act.
 
12      SECTION 22.  If any provision of this Act, or the
 
13 application thereof to any person or circumstance is held
 
14 invalid, the invalidity does not affect other provisions or
 
15 applications of the Act which can be given effect without the
 
16 invalid provision or application, and to this end the provisions
 
17 of this Act are severable.
 
18      SECTION 23.  In codifying the new part added by section 2 of
 
19 this Act, the revisor of statutes shall substitute appropriate
 
20 section numbers for the letters used in designating the new
 
21 sections in this Act.
 
22      SECTION 24.  Statutory material to be repealed is bracketed.
 
23 New statutory material is underscored.
 

 
Page 41                                                    2859
                                     S.B. NO.           S.D. 1
                                                        H.D. 1
                                                        

 
 1      SECTION 25.  This Act shall take effect upon its approval;
 
 2 provided that sections 19 through 21 shall take effect on July 1,
 
 3 2000.