REPORT TITLE:
Civil Service Reform


DESCRIPTION:
Reforms the public employment laws that were enacted to implement
two constitutional mandates -- that there be a civil service
based on merit and that public employees have the right to
bargain collectively.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2859
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
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 that were enacted to implement two constitutional
 
 3 mandates -- that there be a civil service based on merit and that
 
 4 public employees have the right to bargain collectively.
 
 5                              PART I
 
 6      SECTION 2.  Section 26-5, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§26-5 Department of human resources development.  (a)  The
 
 9 department of human resources development shall be headed by a
 
10 single executive to be known as the director of human resources
 
11 development.
 
12      [The director shall have the authority to adopt rules as
 
13 heretofore exercised by the civil service commission.  Whenever
 
14 consistent with economic and efficient administration, the
 
15 director may delegate any of the duties imposed upon the director
 
16 by chapter 76 or chapter 77 to the department heads, or any of
 
17 them, in accordance with standards and procedures issued by the
 
18 director.  The director shall institute and maintain a system of
 
19 inspection to determine that the personnel laws are applied and
 

 
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 1 administered by the departments in a manner consistent with the
 
 2 purposes and provisions of the civil service law.  Whenever an
 
 3 inspection indicates failure on the part of a department to
 
 4 comply with established policies, rules, and standards, the
 
 5 director shall take any action that may be appropriate, including
 
 6 suspension or revocation of any delegation of the director's
 
 7 authority.]
 
 8      (b)  The department shall administer the state human
 
 9 resources program, including human resources development and
 
10 training, and central human resources services such as
 
11 recruitment, examination, position classification, and pay
 
12 administration for all departments.
 
13      (c)  There shall be within the department of human resources
 
14 development a commission to be known as the civil service
 
15 commission which shall sit as an appellate body on matters within
 
16 the jurisdiction of the department of human resources
 
17 development[.] relating to classification, reclassification,
 
18 recruitment, examination, and initial pricing.  The commission
 
19 shall consist of [seven] three members, [one from each county and
 
20 three at large.  At] at least one member of the commission shall
 
21 be selected from among persons employed in private industry in
 
22 skilled or unskilled laboring positions as distinguished from
 
23 executive or professional positions.  [The functions, duties, and
 

 
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 1 powers of the commission with respect to appeals shall be as
 
 2 heretofore provided by law for the civil service commission and
 
 3 for the loyalty board existing immediately prior to November 25,
 
 4 1959.]
 
 5      (d)  The functions and authority heretofore exercised by the
 
 6 department of civil service and loyalty board as heretofore
 
 7 constituted are transferred to the department of human resources
 
 8 development established by this chapter.
 
 9      (e)  There is created in the state treasury a special fund,
 
10 which shall consist of two separate accounts to be expended by
 
11 the department as provided by this subsection.  Notwithstanding
 
12 any law to the contrary, all revenues received by the department:
 
13      (1)  As the result of entrepreneurial efforts in securing
 
14           new sources of funds not provided for in the
 
15           department's budget for services rendered by the
 
16           department shall be deposited into the entrepreneurial
 
17           account and expended for the department's related
 
18           activities and programs; provided that the department
 
19           may use the moneys in the fund to employ necessary
 
20           personnel or for other purposes in support of
 
21           departmental entrepreneurial initiatives and programs;
 
22           and
 
23      (2)  From the charging of participant fees for in-service
 

 
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 1           training programs shall be deposited into the in-
 
 2           service training account and expended for developing
 
 3           and operating in-service training programs and
 
 4           activities.
 
 5      The director shall prepare and submit an annual report to
 
 6 the governor and the legislature on the use of the special fund."
 
 7                              PART II
 
 8      SECTION 3.  Chapter 76, Hawaii Revised Statutes, is amended
 
 9 by adding a new section to be appropriately designated and to
 
10 read as follows:
 
11      "§76-    Classification.  Each director shall establish,
 
12 implement, and maintain one or more classification systems
 
13 covering all civil service positions, not otherwise exempted by
 
14 rules.  The classification systems shall be constructed with the
 
15 objective of achieving equal pay for equal work within the
 
16 jurisdiction.  The director shall establish rules that allow for
 
17 review and appeal of classification and initial pricing actions."
 
18      SECTION 4.  Section 76-1, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§76-1 [Purpose of this chapter; statement of policy.]
 
21 Purposes; merit principle.  It is the purpose of this chapter to
 
22 [establish in the State and each of the counties a system of
 
23 personnel administration based on merit principles and scientific
 

 
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 1 methods governing the classification of positions and the
 
 2 employment, conduct, movement, and separation of public officers
 
 3 and employees.] require each jurisdiction to establish and
 
 4 maintain a separately administered civil service system based on
 
 5 the merit principle.  The merit principle is the selection of
 
 6 persons based on their fitness and ability for public employment
 
 7 and the retention of employees based on their demonstrated
 
 8 appropriate conduct and productive performance.  It is also the
 
 9 purpose of this chapter to build a career service in government
 
10 [which will attract, select, and retain the best of our citizens
 
11 on merit,] free from coercive political influences, [with
 
12 incentives in the form of genuine opportunities for promotions in
 
13 the service, which will eliminate unnecessary and inefficient
 
14 employees, and which will provide technically competent and loyal
 
15 personnel] to render impartial service to the public at all
 
16 times, and to render that service according to the dictates of
 
17 ethics and morality[.] and in compliance with all laws.
 
18      In order to achieve these purposes it is the declared policy
 
19 of the State that the [personnel system hereby established be
 
20 applied and] human resource program within each jurisdiction be
 
21 administered in accordance with the following [merit principles]:
 
22      (1)  Equal opportunity for all [regardless of race, sex,
 
23           age, religion, color, ancestry, or politics.] in
 

 
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 1           compliance with all laws prohibiting discrimination.
 
 2           No person shall be discriminated against [in any case
 
 3           because of any disability,] in examination,
 
 4           appointment, reinstatement, reemployment, promotion,
 
 5           transfer, demotion, or removal, with respect to any
 
 6           position [the duties of which, in the opinion of the
 
 7           director of human resources development] when the work
 
 8           may be efficiently performed by [a person with such a
 
 9           disability; provided that the employment will not be
 
10           hazardous to the appointee or endanger the health or
 
11           safety of the appointee's co-workers or others;] the
 
12           person without hazard or danger to the health and
 
13           safety of the person or others.
 
14      (2)  Impartial selection of [the ablest person for
 
15           government] individuals for public service by means of
 
16           [competitive] tests which are fair, objective, and
 
17           practical[;].
 
18      (3)  [Just opportunity] Incentives for competent employees
 
19           [to be promoted] within the service[;], whether
 
20           financial or promotional opportunities and other
 
21           performance based group and individual awards, that
 
22           encourage continuous improvement to achieve superior
 
23           performance.
 

 
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 1      (4)  Reasonable job security for [the] competent [employee,
 
 2           including] employees and elimination of unnecessary or
 
 3           inefficient employees, with the right of appeal from
 
 4           personnel actions[;].
 
 5      (5)  [Systematic] Equal pay for equal work within the
 
 6           jurisdiction through systematic classification of [all]
 
 7           positions [through] based on objective criteria and
 
 8           adequate job evaluation[; and].
 
 9      (6)  [Proper balance in employer-employee relations between
 
10           the people as the employer and employees as the
 
11           individual citizens, to achieve a well trained,
 
12           productive, and happy working force.] Harmonious and
 
13           cooperative relations between government and its
 
14           employees, including employee organizations
 
15           representing them, to develop and maintain a well-
 
16           trained, efficient, and productive work force for the
 
17           delivery of services to the public.
 
18      (7)  Competition between public employees and the private
 
19           sector over the performance of public duties and the
 
20           provision of public service to the public as provided
 
21           pursuant to Act 230, Session Laws of Hawaii 1998."
 
22      SECTION 5.  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.] jurisdictions.  [The
 
 3 state department of human resources development, the judiciary,
 
 4 the several departments of civil service of the counties, and the
 
 5 Hawaii health systems corporation] The jurisdictions may enter
 
 6 into agreements for the joint administration of matters that may
 
 7 be practicable and consistent with this chapter [and chapter 77],
 
 8 including the conducting of examinations and other procedures for
 
 9 the establishment and use of eligible lists, reciprocity in the
 
10 use of eligible lists, and the conducting of salary studies.  All
 
11 eligible lists established or used under the agreements shall be
 
12 as fully effective as those established or used separately."
 
13      SECTION 6.  Section 76-5, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§76-5 Furnishing of services and facilities.  Subject to
 
16 the rules of the state department of human resources development,
 
17 the director of human resources development may enter into
 
18 agreements with [the judiciary, any county, and the Hawaii health
 
19 systems corporation to furnish services and facilities of the
 
20 state department to the judiciary, any county, and the Hawaii
 
21 health systems corporation] other jurisdictions in the
 
22 administration of civil service including position classification
 
23 [in the judiciary, any county, and the Hawaii health systems
 

 
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 1 corporation].  The agreements may provide for the reimbursement
 
 2 to the State of the reasonable value of the services and
 
 3 facilities furnished, as determined by the director.  The
 
 4 [judiciary, all counties, and the Hawaii health systems
 
 5 corporation] other jurisdictions are authorized to enter into the
 
 6 agreements."
 
 7      SECTION 7.  Section 76-6, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§76-6 Chapter inoperative, when.  If any provision of this
 
10 chapter [or chapter 77] jeopardizes the receipt by the State or
 
11 any county of any federal grant-in-aid or other federal allotment
 
12 of money, the provision shall, insofar as the fund is
 
13 jeopardized, be deemed to be inoperative."
 
14      SECTION 8.  Section 76-11, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§76-11  Definitions.  As used in this [part,] chapter,
 
17 unless the context clearly requires otherwise:
 
18      [(5)] "Appointing authority" means a department head or
 
19 [person] designee having the power to make appointments or
 
20 changes in the status of employees [in the state service and
 
21 includes such subordinate, or, under rule of the department of
 
22 human resources development, subordinates, as the department or
 
23 person may designate to act for it or the person.
 

 
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 1 Notwithstanding any other provision of law, any department or
 
 2 person may make such a designation;].
 
 3      "Chief executive" means the governor, the respective mayors,
 
 4 the chief justice of the supreme court, the superintendent of the
 
 5 department of education, the president of the University of
 
 6 Hawaii, and the chief executive officer of the Hawaii health
 
 7 systems corporation.
 
 8      [(6)] "Civil service" includes all positions [in the state
 
 9 service not exempted by section 76-16;] within a jurisdiction
 
10 that must be filled through civil service recruitment procedures
 
11 based on merit.
 
12      "Civil service employee" means an employee appointed to a
 
13 position in the civil service who has met the initial
 
14 requirements for membership in the civil service and who must
 
15 meet on-going requirements to remain a member in the civil
 
16 service.
 
17     [(7)] "Class" [or "class of work" means the logical and
 
18           reasonable grouping of duties and responsibilities and
 
19           their identification with respect to
 
20           (A)  Kind or subject matter of work,
 
21           (B)  Level of difficulty and responsibility, and
 
22           (C)  Qualification requirements of the work, so that
 
23                positions which conform substantially to the same
 

 
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 1                class would receive like treatment in the matter
 
 2                of title, and such personnel processes as salary
 
 3                assignment;] means a group of positions that
 
 4 reflect sufficiently similar duties and responsibilities such
 
 5 that the same title and the same pay range may apply to each
 
 6 position allocated to the class.
 
 7      "Classification system" means classes of positions arranged
 
 8 in a logical and systematic order.
 
 9      [(1)] "Commission" means the civil service commission of the
 
10 State[;] established under section 26-5 or any similar appellate
 
11 body established by a jurisdiction.
 
12      "Days" mean calendar days, unless expressly provided
 
13 otherwise.
 
14      [(4)] "Department" [includes the judicial branch and] means
 
15 any department, board, commission, or agency of [the State;] a
 
16 jurisdiction.
 
17      [(2)] "Director" means the [director of human resources
 
18 development of the State;] head of the central personnel agency
 
19 for a jurisdiction regardless of title, whether it is the
 
20 director of human resources development, director of personnel,
 
21 director of personnel services, or personnel director.
 
22     [(3)  "State service" means all offices and other positions
 
23           in the public service of the State;]
 

 
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 1     [(19)] "Employee" means [a] any person holding a position in
 
 2 [accordance with this chapter whether permanently or otherwise
 
 3 and whether as an officer or otherwise;] the service of a
 
 4 jurisdiction, irrespective of status or type of appointment.
 
 5      "Employer" or "public employer" means the governor, in the
 
 6 case of the State; the respective mayors, in the case of the
 
 7 counties; the chief justice of the supreme court, in the case of
 
 8 the judiciary; the board of education, in the case of the
 
 9 department of education; the board of regents, in the case of the
 
10 University of Hawaii; and the Hawaii health systems corporation
 
11 board, in the case of the Hawaii health systems corporation; and
 
12 includes any individual who represents one of these employers or
 
13 acts in their interest in dealing with public employees.  Each
 
14 employer is independent of each other for purposes of this
 
15 chapter, except in the case of section 89-A(d), where the
 
16 governor shall be the employer for purposes of negotiations in
 
17 the case of units (5) and (6).
 
18      "Exclusive representative" means the employee organization
 
19 certified by the Hawaii labor relations board as the collective
 
20 bargaining agent to represent all employees in an appropriate
 
21 bargaining unit without discrimination and without regard to
 
22 employee organization membership.
 
23      "Jurisdiction" means the State, the city and county of
 

 
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 1 Honolulu, the county of Hawaii, the county of Maui, and the
 
 2 county of Kauai, the judiciary, the department of education, the
 
 3 University of Hawaii, and the Hawaii health systems corporation.
 
 4      "Legislative body" means the legislature in the case of the
 
 5 State, the judiciary, the department of education, the University
 
 6 of Hawaii, and the Hawaii health systems corporation; the city
 
 7 council, in the case of the city and county of Honolulu; and the
 
 8 respective county councils, in the case of the counties of
 
 9 Hawaii, Maui, and Kauai.
 
10     [(8)  "Promotional examination" means an examination for
 
11           positions in a particular class, admission to which is
 
12           limited to regular employees in civil service;
 
13      (9)  "Open-competitive examination" means an examination for
 
14           positions in a particular class, admission to which is
 
15           not limited to persons employed in civil service;
 
16     (10)  "Open-competitive list" means a list of persons who
 
17           have been found qualified by an open-competitive
 
18           examination for appointment to a position in a
 
19           particular class;
 
20     (11)  "Promotional list" means a list of persons who have
 
21           been found qualified by a promotional examination for
 
22           appointment to a position in a particular class;
 
23     (12)  "Reemployment list" means a list of persons who have
 

 
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 1           been regular employees in the civil service and who are
 
 2           entitled to have their names certified for appointment
 
 3           to a position in the class in which they last held
 
 4           permanent status, or, as provided by section 76-25, in
 
 5           a related class in the same or lower range for which
 
 6           they meet the qualification requirements;
 
 7     (13)  "Eligible list" means a list of persons who have been
 
 8           found qualified for appointment to a position in a
 
 9           particular class, such a list being either open-
 
10           competitive, promotional, or reemployment;
 
11     (14)  "Eligible" means a person whose name is on an active
 
12           eligible list;
 
13     (15)  "Regular employee" means an employee who has been
 
14           appointed to a position in the civil service in
 
15           accordance with this chapter and who has successfully
 
16           completed the employee's initial probation period;
 
17     (16)  "Initial probation period" means a period of not less
 
18           than six months nor more than one year from the
 
19           beginning of an employee's service in civil service;
 
20     (17)  "New probation period" means any probation period other
 
21           than that defined in paragraph (16);]
 
22     [(18)] "Position" means a specific [office or employment,
 
23 whether occupied or vacant, consisting of a group of all the
 

 
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 1 current duties and responsibilities assigned or delegated by
 
 2 competent authority,] job requiring the full or part-time
 
 3 employment of one person[;].
 
 4     [(20) "Position classification plan" means classes of
 
 5           positions arranged in a logical and systematic order.]"
 
 6      SECTION 9.  Section 76-12, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§76-12  General powers and duties of director.  The
 
 9 director [of human resources development] shall:
 
10      (1)  Represent the public interest in the improvement of
 
11           human resources administration in the civil service;
 
12      (2)  Assist in fostering the interest of institutions of
 
13           learning and civic, professional, and employee
 
14           organizations in the improvement of human resources
 
15           standards in civil service;
 
16      (3)  Advise the [governor] chief executive on policies and
 
17           problems concerning human resources [administration;]
 
18           program; and
 
19      (4)  Make investigations concerning the administration of
 
20           human resources policies in the civil service,
 
21           including any matter respecting the enforcement or
 
22           effect of this chapter or the rules adopted thereunder,
 
23           or the action or failure to act of any officer or
 

 
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 1           employee with respect thereto."
 
 2      SECTION 10.  Section 76-13, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§76-13  Specific duties and powers of director.  The
 
 5 director [of human resources development] shall direct and
 
 6 supervise all the administrative and technical activities of the
 
 7 director's department.  In addition to other duties imposed upon
 
 8 the director by this chapter [and chapter 77], the director
 
 9 shall:
 
10     [(1)  Attend all meetings of the commission;
 
11      (2)] (1)  Establish and maintain a roster of all persons in
 
12           the civil service [in which shall be set forth, as to
 
13           each, the class of position held, the salary or pay,
 
14           any change in class, title, pay, or status, and any
 
15           other necessary data];
 
16     [(3)] (2)  Appoint [assistants and] employees necessary to
 
17           assist the director in the proper performance of the
 
18           director's duties and for which appropriations shall
 
19           have been made;
 
20     [(4)] (3)  Foster and develop, in cooperation with appointing
 
21           authorities and others, programs for the improvement of
 
22           employee efficiency;
 
23     [(5)] (4)  Cooperate fully with appointing authorities,
 

 
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 1           giving full recognition to their requirements and
 
 2           needs, in the administration of this chapter [and
 
 3           chapter 77] in order to promote public service [and
 
 4           establish] by establishing conditions of service that
 
 5           will attract and retain employees of character and
 
 6           [capacity,] capability, and to increase efficiency and
 
 7           economy in governmental departments by [the improvement
 
 8           of] continuously improving methods of human resources
 
 9           administration [with full recognition of the
 
10           requirements and needs of management];
 
11     [(6)] (5)  Encourage and exercise leadership in the
 
12           development of effective human resources administration
 
13           within the several departments in civil service and
 
14           make available the facilities of the director's
 
15           department to this end;
 
16     [(7)] (6)  Investigate from time to time the operation and
 
17           effect of this chapter [and chapter 77] and of the
 
18           rules adopted thereunder;
 
19     [(8)] (7)  Develop and maintain a [position] classification
 
20           [plan;] system; [and
 
21           (A)  Create and adjust classes of positions and adopt
 
22                class specifications including title, description
 
23                of typical duties and responsibilities, statement
 

 
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 1                of training and experience, and other requirements
 
 2                to be met by applicants, covering all positions;
 
 3           (B)  Allocate each position and each newly created
 
 4                position to the appropriate class;
 
 5           (C)  Reallocate positions to recognize material changes
 
 6                in duties and responsibilities or to correct a
 
 7                previous action; provided that reallocations shall
 
 8                be made effective retroactively to the beginning
 
 9                of the pay period immediately following the date
 
10                the application for reallocation was filed with
 
11                the director or any other date provided by the
 
12                rules; and provided further that an employee who
 
13                is otherwise properly compensated shall not be
 
14                required to make reimbursement of overpayment in
 
15                salary when the overpayment is due to salary
 
16                increments or repricing actions nullified by the
 
17                retroactive feature of a classification action;
 
18                and provided further that the proper salary
 
19                adjustment shall be made as of the first pay
 
20                period following the action taken by the director;
 
21                and
 
22           (D)  Determine the status of employees holding
 
23                positions affected by classification actions;
 

 
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 1      (9)  Pay any claims against the State as required under
 
 2           chapter 386; and]
 
 3      (8)  Monitor, make recommendations, and develop policies and
 
 4           guidelines for suitable in-service training programs
 
 5           and activities so that the quality of service rendered
 
 6           by government employees may be continually improved;
 
 7           provided that participating agencies may be charged
 
 8           fees for training programs;
 
 9      (9)  Make recommendations for incentive and service awards
 
10           programs to recognize officers and employees who
 
11           contribute to the efficiency, economy, or other
 
12           improvement of government operations or who perform
 
13           exceptionally meritorious special acts or services in
 
14           the public interest in connection with or related to
 
15           their official employment; provided appointing
 
16           authorities may establish their own programs consistent
 
17           with the policies of the chief executive;
 
18     (10)  Ensure that collective bargaining agreements under
 
19           chapter 89 do not violate the merit principle or the
 
20           principle of equal pay for equal work within the
 
21           jurisdiction and do not interfere with the employer's
 
22           rights and obligations;
 
23     (11)  Make recommendations and advise the chief executive on
 

 
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 1           appropriate adjustments for employees excluded from
 
 2           collective bargaining; and
 
 3    [(10)] (12)  Perform any other lawful acts deemed by the
 
 4           director to be necessary or desirable to carry out the
 
 5           purposes and provisions of this [part.] chapter."
 
 6      SECTION 11.  Section 76-14, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§76-14  General duties of commission.  The civil service
 
 9 commission shall hear and decide appeals from any action of the
 
10 director [of human resources development] under this chapter[, as
 
11 well as from dismissals, demotions, and suspensions as
 
12 hereinafter provided.] relating to classification,
 
13 reclassification, recruitment, examination, and initial pricing."
 
14      SECTION 12.  Section 76-15, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§76-15  Examination consultants.  (a)  The director [of
 
17 human resources development] or an appointing authority may
 
18 select officers or employees in the [state] jurisdiction's
 
19 service or any individual to act as volunteer subject-matter
 
20 consultants in the preparation and rating of applications and
 
21 examinations.  Notwithstanding the provisions of chapter 92F, the
 
22 identity of any volunteer subject-matter consultant, and any
 
23 information which would result in actual identification of any
 

 
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 1 volunteer subject-matter consultant, are confidential and shall
 
 2 not be disclosed[, unless deemed appropriate by the director].
 
 3      (b)  An appointing authority may excuse any [officer or]
 
 4 employee in the appointing authority's department from the
 
 5 [officer's or] employee's regular duties for the time required
 
 6 for the [officer's or] employee's work as a volunteer subject-
 
 7 matter consultant.
 
 8      [Officers and employees] Employees shall not be entitled to
 
 9 extra pay for services as volunteer consultants but shall be
 
10 entitled to reimbursement for necessary traveling and other
 
11 expenses."
 
12      SECTION 13.  Section 76-17, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§76-17  Rules [and regulations]; policies and standards.
 
15 In conformity with chapter 91, the director [of human resources
 
16 development] shall prescribe rules [and regulations] to carry out
 
17 this chapter which shall have the force and effect of law.  The
 
18 rules [and regulations] may include any matter not inconsistent
 
19 with law concerning the establishment and maintenance of a system
 
20 of personnel management based on the merit [principles,]
 
21 principle, including but not limited to matters set forth in this
 
22 chapter, and may be amended or repealed in like manner as the
 
23 same were adopted.  The rules [and regulations] shall be in
 

 
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 1 conformity with principles of good public administration and
 
 2 shall be in conformity with sections 76-18 to 76-43."
 
 3      SECTION 14.  Section 76-18, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§76-18  Examinations[, general character].  There shall be
 
 6 [competitive] examinations for testing [of the relative fitness]
 
 7 the fitness and ability of applicants for positions in civil
 
 8 service.  [The examinations shall be practical in their character
 
 9 and shall provide for ascertaining the physical and educational
 
10 qualifications, experience, knowledge, and skill of applicants
 
11 and their relative capacity and fitness for the proper
 
12 performance of the characteristic duties of the class of
 
13 positions in which they seek to be employed; except that in the
 
14 case of a promotional examination, the examination shall be
 
15 limited, at the request of the department head, to the
 
16 characteristic duties of the class and nothing else.  All
 
17 examinations shall be public and, except as otherwise provided by
 
18 law, free and open to all citizens of the State but with such
 
19 limitations as to health, physical condition, age, sex,
 
20 education, training, experience, habits, and character as the
 
21 director of human resources development may deem necessary and
 
22 proper for the class for which the examination is to be given.
 
23 Disabled veterans or persons with a disability shall not be
 

 
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 1 disqualified for reason of the disability if they possess the
 
 2 physical capacities to perform the duties of the class.
 
 3 Examinations may be oral or written or partly oral and partly
 
 4 written, or tests of manual skill and physical strength, or
 
 5 evaluations of training and experience backgrounds.  Except when
 
 6 clearly required by the nature of the service to be performed,
 
 7 written examinations shall not be required of applicants for
 
 8 unskilled labor classes.  All examinations shall be under the
 
 9 control of the director or any suitable person or persons as the
 
10 director may designate to conduct them.  All persons who have
 
11 passed the examination shall be required to take physical
 
12 examinations as may be required by the director or, in case of
 
13 the counties, by the civil service commission.  The reports of
 
14 the physical examinations shall be filed with the director.
 
15      The director, for purposes of expediting the examination
 
16 process, may require applicants to take a written examination
 
17 prior to filing a formal application.  Upon successful completion
 
18 of the written examination, the applicant shall then file a
 
19 formal application.] The director shall adopt rules to administer
 
20 the examination programs."
 
21      SECTION 15.  Section 76-22.5, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "§76-22.5  Recruitment [flexibility].  [Notwithstanding
 

 
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 1 section 76-23, the] The director [of human resources development]
 
 2 shall adopt rules in accordance with section 76-1 to determine,
 
 3 establish, and maintain the manner in which civil service
 
 4 positions [shall] are to be filled [in accordance with section
 
 5 78-1 and the following standards:
 
 6      (1)  Equal opportunity for all regardless of race, sex, age,
 
 7           religion, color, ancestry, physical handicap, or
 
 8           politics;
 
 9      (2)  First consideration for competent employees already
 
10           within public service; and
 
11      (3)  Impartial selection of the ablest person through
 
12           competitive means which are fair, objective, and
 
13           practical].  The director shall seek continuous
 
14           improvements to streamline the recruitment process so
 
15           that positions are filled in the most economic,
 
16           efficient, and expeditious manner possible.  This
 
17           includes maximizing use of new technologies and
 
18           developing more efficient alternatives to ensure the
 
19           availability of qualified applicant pools whether it
 
20           involves a change in the manner in which initial
 
21           appointments are to be made, increased delegation to
 
22           departments, or decentralization to appointing
 
23           authorities, as necessary and appropriate."
 

 
Page 25                                                    2859
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 1      SECTION 16.  Section 76-23.5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "[[]§76-23.5[]  Travel and transportation expenses.]
 
 4 Recruitment incentives.  [Appointing authorities, with the prior
 
 5 approval] Within limits set forth in rules of the director,
 
 6 appointing authorities may pay for all or a portion of the travel
 
 7 and transportation expenses or provide a monetary incentive to
 
 8 enhance the recruitment of persons employed or appointed to
 
 9 [positions in a class declared to be in a shortage category and
 
10 on continuous recruitment.] critical-to-fill and labor shortage
 
11 positions."
 
12      SECTION 17.  Section 76-27, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§76-27  [Probationary service and other requirements for
 
15 membership.  All employees shall successfully serve an initial
 
16 probation period before becoming members of the civil service.
 
17 In addition, membership in the civil service shall require that
 
18 the employee shall have been appointed in accordance with law and
 
19 shall have satisfied all the requirements for employment
 
20 prescribed by this chapter or by the rules adopted thereunder,
 
21 including those qualifications prescribed by section 78-1.  A
 
22 member who is promoted or transferred to another position in the
 
23 civil service may be required to serve a new probation period in
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the new position but shall be entitled to all the rights and
 
 2 privileges of a member of the civil service, except the right to
 
 3 appeal a dismissal from the new position (as distinguished from
 
 4 dismissal from the service) for inefficiency during the
 
 5 probationary period, in which case the member shall be returned
 
 6 to the former position.
 
 7      An employee who is serving a temporary appointment may
 
 8 subsequently be given a probationary appointment in the same
 
 9 position or a related position in the same class within the
 
10 department whenever a permanent position is established or is
 
11 vacated; provided that the employee has been hired initially from
 
12 the appropriate eligible list and the temporary period of service
 
13 has immediately preceded the change to probationary status.  Upon
 
14 certification by the appointing authority that the employee has
 
15 been performing satisfactorily and that the duties the employee
 
16 has been performing are essentially similar to those required of
 
17 the probationary appointment, the period of service performed as
 
18 a temporary appointee shall be subtracted from the probationary
 
19 period required by this section, and the employee shall serve
 
20 only the remaining period, if any, as a probationary employee.]
 
21 Membership in civil service; requirements.  All employees
 
22 appointed to civil service positions shall constitute the
 
23 membership of the civil service, but no employee shall be
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 entitled to membership in civil service unless the employee:
 
 2      (1)  Successfully serves the initial probation period that
 
 3           is required as part of the examination process to
 
 4           determine the employee's fitness and ability for the
 
 5           position; and 
 
 6      (2)  Satisfies all qualifications in section 78-1.  Any
 
 7           employee who does not satisfy the requirements of this
 
 8           section shall not become a member in the civil service
 
 9           and shall be allowed to resign from the position,
 
10           otherwise the employee shall be terminated from the
 
11           position."
 
12      SECTION 18.  Section 76-28, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§76-28  Forms required of appointing authorities.  [The
 
15 director of human resources development] Each director shall
 
16 develop and administer an employment records management system
 
17 and require appointing authorities to transmit such records as
 
18 the director may request.  Appointing authorities shall maintain
 
19 records of all appointments, terminations of employment,
 
20 transfers, resignations, suspensions, demotions, [and]
 
21 dismissals[.  Appointing authorities shall file necessary forms
 
22 of such personnel actions as the director may request.], and
 
23 other employment records and forms deemed appropriate by the
 

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

 
 1 director."
 
 2      SECTION 19.  Section 76-29, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§76-29  Person ineligible for appointment.  [No] A person
 
 5 [who has committed or attempted any deception or fraud in
 
 6 connection with any application or examination,] shall be
 
 7 [eligible] ineligible for any appointment in the civil service[.]
 
 8 for a specified period of time as determined appropriate by the
 
 9 director for reasons including any of, but not limited to, the
 
10 following:
 
11      (1)  Deception, fraud, or providing false or misleading
 
12           statements of material facts in the application or
 
13           examination process;
 
14      (2)  Unauthorized or improper assistance in an examination;
 
15           or
 
16      (3)  A determination of unsuitability for employment."
 
17      SECTION 20.  Section 76-30, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§76-30  Tenure; resignations.  (a)  Every member of the
 
20 civil service shall be entitled to hold the member's position
 
21 [during good behavior, subject to suspension, demotion, or
 
22 dismissal only as provided in this chapter and in the rules and
 
23 regulations of the department of human resources development.
 

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

 
 1 Resignations] for the duration of the member's appointment.
 
 2      (b)  When an employee resigns, the resignation shall be in
 
 3 writing[.  In case] in accordance with rules.  If an employee
 
 4 resigns without submitting [the employee's resignation in
 
 5 writing, the department head] a resignation or the resignation is
 
 6 not accepted for reasons allowed by rules, the appointing
 
 7 authority shall, within fifteen days following the resignation,
 
 8 file with the director [of human resources development] a
 
 9 statement showing termination of employment."
 
10      SECTION 21.  Section 76-43, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§76-43  Layoff.  [Rules and regulations shall be
 
13 promulgated by the director of human resources development to
 
14 govern the conditions under which an employee is to be released
 
15 from the employee's position] When it is necessary to release
 
16 employees from their positions due to lack of work [or], lack of
 
17 funds[.], or other legitimate reasons, employees with permanent
 
18 appointments in civil service positions shall have layoff rights.
 
19 Layoffs shall be made in accordance with the procedures provided
 
20 in rules or as may be negotiated under collective bargaining
 
21 agreements, as applicable."
 
22      SECTION 22.  Section 76-47, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "§76-47  Appeals from suspensions, dismissals and demotions.
 
 2 Any regular employee who is suspended, dismissed, or demoted may
 
 3 appeal [to the civil service commission within twenty days after
 
 4 notice has been sent the employee of the suspension, dismissal,
 
 5 or demotion provided that the twenty-day period shall be extended
 
 6 to twenty days from the final notice on the employee's grievance
 
 7 should the employee exercise the grievance channel.  Upon the
 
 8 appeal, both the appealing employee and the appointing authority
 
 9 shall have the right to be heard publicly, present evidence and
 
10 be represented by counsel, who shall have the right to examine
 
11 and cross-examine witnesses.  At the hearing technical rules of
 
12 evidence shall not apply and the evidence shall be taken
 
13 stenographically or recorded by machine.  For the purpose of
 
14 hearing the appeals fairly and expeditiously, the commission may
 
15 at any time appoint a competent and qualified disinterested
 
16 person to act as its hearing officer.  The hearing officer shall
 
17 hear the matter in the same manner as if it were before the
 
18 commission and upon the conclusion of the hearing, shall report
 
19 the hearing officer's findings of fact and the hearing officer's
 
20 conclusions and recommendations based thereon to the commission
 
21 and to the employee.  The commission shall render the final
 
22 decision in accordance with section 91-11.
 
23      If the commission finds that the action appealed from was
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 taken by the appointing authority for any political, religious or
 
 2 racial reason, the employee shall be reinstated to the employee's
 
 3 position without loss of pay for the period of the employee's
 
 4 suspension or separation therefrom.  In all other cases, if the
 
 5 commission finds that the reasons for the action are not
 
 6 substantiated in any material respect, the commission shall order
 
 7 that the employee be reinstated in the employee's position,
 
 8 without loss of pay, but if the commission finds that the reasons
 
 9 are substantiated or are only partially substantiated, the
 
10 commission shall sustain the action of the appointing authority,
 
11 provided that the commission may modify the action of the
 
12 appointing authority if it finds the circumstances of the case so
 
13 require and may thereupon order such disposition of the case as
 
14 it may deem just.
 
15      When an employee is dismissed and not reinstated after the
 
16 appeal, the commission, in its discretion, may direct that the
 
17 employee's name be placed on an appropriate reemployment list for
 
18 employment in any similar position other than one from which the
 
19 employee has been removed.
 
20      The findings and decisions of the commission shall be final
 
21 on all appeals, unless an appeal is taken as provided in chapter
 
22 91.
 
23      Notwithstanding any other law to the contrary, when an
 

 
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 1 appeal hearing is before a county civil service commission,
 
 2 including the civil service commission of the city and county of
 
 3 Honolulu, the attorney general shall be counsel for the
 
 4 commission and the county attorney or corporation counsel shall
 
 5 be counsel for the appointing authority.  If, however, an appeal
 
 6 hearing is before the state commission, the attorney general
 
 7 shall be counsel for the appointing authority and the county
 
 8 attorney or corporation counsel of the county, including the city
 
 9 and county of Honolulu, in which the appeal hearing is being
 
10 conducted shall be counsel for the commission.
 
11      Notwithstanding any other law to the contrary, when the
 
12 decision and order of the county civil service commission,
 
13 including the civil service commission of the city and county of
 
14 Honolulu, is appealed as provided in chapter 91, the attorney
 
15 general shall be counsel for the commission and the county
 
16 attorney or corporation counsel shall be counsel for the
 
17 appointing authority.  When the decision and order of the state
 
18 civil service commission is appealed as provided in chapter 91,
 
19 the attorney general shall be counsel for the appointing
 
20 authority and the county attorney or corporation counsel of the
 
21 county, including the city and county of Honolulu, in which the
 
22 chapter 91 appeal is being conducted, shall be counsel for the
 
23 state civil service commission.] through the grievance procedure
 

 
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 1 established pursuant to chapter 89 or 89C as applicable."
 
 2      SECTION 23.  Section 76-48, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§76-48  Appeals from action of director or appointing
 
 5 authority.  As to any matter [within the scope of this part,]
 
 6 relating to classification, reclassification, recruitment,
 
 7 examination, or initial pricing, any person suffering legal wrong
 
 8 because of any action by the director [of human resources
 
 9 development] or the person's appointing authority, or adversely
 
10 affected or aggrieved by such action, shall be entitled to appeal
 
11 to the civil service commission.  The appeal shall be made within
 
12 twenty days after notice of the action has been sent to the
 
13 person and shall be heard in a manner similar to that provided in
 
14 this chapter."
 
15      SECTION 24.  Section 76-49, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "§76-49  Subpoenas, oaths.  The civil service commission
 
18 shall have such powers as may be provided by law with respect to
 
19 compelling the attendance of witnesses and administering oaths to
 
20 witnesses, and as to all matters within the scope of [their] its
 
21 authority the director [of human resources development] and any
 
22 hearing officer shall have similar powers."
 
23      SECTION 25.  Section 76-50, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "§76-50  Compensation and expenses of commission.  Each
 
 3 member of the civil service commission shall [be paid
 
 4 compensation at the rate of $10 per day for each day's actual
 
 5 attendance at a meeting, but not to exceed, in the aggregate,
 
 6 $100 in any month and when] serve without compensation, unless
 
 7 otherwise provided.  When any member is required to travel [from
 
 8 any island to another island in the State] in the performance of
 
 9 such duties, the [member shall be allowed the member's] chief
 
10 executive shall provide for reasonable traveling expenses."
 
11      SECTION 26.  Section 76-51, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§76-51  Political activities by commissioners prohibited.
 
14 No person who occupies any elective [or appointive] office [or
 
15 any position under the state or county government] shall be
 
16 eligible for membership on [or continue to be a member of] the
 
17 civil service commission.  [The term "appointive office" for the
 
18 purpose of this section, shall not include notaries public.]  No
 
19 member of the commission shall, during the member's term of
 
20 office, serve as an officer or committee member of any political
 
21 party organization, including a precinct organization, or present
 
22 oneself as a candidate or be a candidate for nomination or
 
23 election to any public office at any election.  The office of any
 

 
Page 35                                                    2859
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 1 member who violates this section [or part IV of this chapter,]
 
 2 shall be conclusively presumed to have been abandoned and vacated
 
 3 by reason thereof and [the governor shall] thereupon [appoint] a
 
 4 qualified person shall be appointed to fill the vacancy.  As an
 
 5 alternative remedy, proceedings in the nature of quo warranto may
 
 6 be brought by any person to oust any member who violates this
 
 7 section [or part IV of this chapter]."
 
 8      SECTION 27.  Section 76-52, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§76-52  Reports and statements.  Every officer and
 
11 employee, including any appointing authority, shall promptly make
 
12 such reports and file such statements as may be required by this
 
13 part or the rules [and regulations] prescribed thereunder.  In
 
14 case any officer or employee refuses or fails within the
 
15 prescribed or within a reasonable time to make a report or file a
 
16 statement, the director [of human resources development or in
 
17 case of the counties the civil service commission] may notify the
 
18 comptroller or other disbursing officer of the refusal or
 
19 failure, and upon notification, the comptroller or other
 
20 disbursing officer shall withhold any compensation payable to the
 
21 officer or employee until such time as the [commission or the]
 
22 director notifies the comptroller or other disbursing officer in
 
23 writing that the officer or employee has made the report or filed
 

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

 
 1 the statement."
 
 2      SECTION 28.  Section 76-79, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§76-79  Rules [and regulations], general policy.  The rules
 
 5 [and regulations] prescribed by each [commission] jurisdiction
 
 6 shall, among other things, recognize and be in conformity to the
 
 7 distinction between matters of policy, which are by this chapter
 
 8 [and chapter 77] left for the determination of the [commission,]
 
 9 jurisdiction, and matters of technique and administration, which
 
10 are by the chapters, left for execution by the personnel
 
11 director."
 
12      SECTION 29.  Section 76-2, Hawaii Revised Statutes, is
 
13 repealed.
 
14      ["§76-2 Uniform interpretation.  It is the intent of the
 
15 legislature that the construction and interpretation of any of
 
16 the provisions of this chapter and of chapter 77 be uniform for
 
17 the State and the several counties.
 
18      All questions requiring the construction or interpretation
 
19 of any of the provisions of this chapter or of chapter 77 shall
 
20 be submitted to the attorney general for an opinion and the
 
21 attorney general shall render an opinion promptly on any such
 
22 question when requested by the head of any department of the
 
23 State or any county.  In case the opinion is in conflict with an
 

 
Page 37                                                    2859
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 1 opinion rendered upon the same or substantially similar question
 
 2 by any county attorney or corporation counsel and the question
 
 3 upon which the opinion is rendered has been raised by a county,
 
 4 the question may, either at the instance of the county attorney,
 
 5 corporation counsel or the attorney general, be submitted to the
 
 6 circuit court of the first judicial circuit for a declaratory
 
 7 judgment on the question, and jurisdiction to hear and determine
 
 8 the questions is hereby conferred upon the circuit court.  The
 
 9 circuit court shall determine the question without delay."]
 
10      SECTION 30.  Section 76-3, Hawaii Revised Statutes, is
 
11 repealed.
 
12      ["§76-3 Uniform administration.  It is the intent of the
 
13 legislature that the system of personnel administration
 
14 established by this chapter and chapter 77 shall be as uniformly
 
15 administered as is practicable.  In order to promote such
 
16 uniformity, the several commissioners and directors of the state
 
17 department of human resources development and of the county
 
18 departments of civil service, the administrative director of the
 
19 courts, and the Hawaii health systems corporation chief executive
 
20 officer's designee shall meet at least once each year at the call
 
21 of the director of human resources development of the State."]
 
22      SECTION 31.  Section 76-5.5, Hawaii Revised Statutes, is
 
23 repealed.
 

 
Page 38                                                    2859
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 1      ["§76-5.5  Recruitment flexibility for the counties, the
 
 2 judiciary, and the Hawaii health systems corporation.
 
 3 Notwithstanding section 76-23, or any other provision to the
 
 4 contrary, the directors of the county departments of civil
 
 5 service, the administrative director of the courts, and the
 
 6 Hawaii health systems corporation chief executive officer's
 
 7 designee may determine, establish, and maintain the manner in
 
 8 which positions shall be filled in accordance with section 78-1
 
 9 and the following standards:
 
10      (1)  Equal opportunity for all regardless of race, sex, age,
 
11           religion, color, ancestry, physical handicap, or
 
12           politics;
 
13      (2)  First consideration for competent employees already
 
14           within public service; and
 
15      (3)  Impartial selection of the ablest person through
 
16           competitive means which are fair, objective, and
 
17           practical."]
 
18      SECTION 32.  Section 76-7, Hawaii Revised Statutes, is
 
19 repealed.
 
20      ["[§76-7]  Bars to discrimination; exceptions.  Nothing in
 
21 sections 76-1 and 76-44 shall be deemed to:
 
22      (1)  Repeal or affect any law or ordinance or government
 
23           rule or regulations having the force and effect of law
 

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

 
 1           which prohibits, restricts, or controls the employment
 
 2           of minors;
 
 3      (2)  Prohibit or prevent the establishment and maintenance
 
 4           of bona fide occupational qualifications;
 
 5      (3)  Prohibit or prevent the termination of or change the
 
 6           employment of any person who is unable to perform the
 
 7           person's duties;
 
 8      (4)  Affect the operation of the terms or conditions of any
 
 9           bona fide retirement, pension, employee benefit, or
 
10           insurance plan;
 
11      (5)  Repeal or affect any law prescribing maximum age limits
 
12           for employees of the State or any county; and
 
13      (6)  Conflict with or affect the application of security
 
14           regulations in public employment established by the
 
15           United States or the State of Hawaii."]
 
16      SECTION 33.  Section 76-8, Hawaii Revised Statutes, is
 
17 repealed.
 
18      ["§76-8 Public employment program personnel.  Employees in
 
19 the public employment program which is funded in part or wholly
 
20 under the Emergency Employment Act of 1971, P.L. 92-54, and in
 
21 the public service career program plan "A", which is funded in
 
22 part or wholly under the Federal Manpower Development and
 
23 Training Act of 1962, as amended, who are employed by the state
 

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

 
 1 or county governments and who are not in the civil service
 
 2 systems of their respective jurisdictions may be granted by the
 
 3 chief executive of the jurisdiction concerned permanent
 
 4 appointment status in the appropriate civil service system as
 
 5 provided in this chapter.  Permanent appointment status may be
 
 6 granted by the chief executive of the jurisdiction concerned
 
 7 provided that funds shall have been appropriated for the
 
 8 positions affected and these employees shall not be required to
 
 9 qualify in civil service examinations and shall be entitled to
 
10 all of the rights, benefits and privileges (including credit for
 
11 service in the positions occupied, vacation and sick leave
 
12 credits) earned or accrued up to the date this Act takes effect,
 
13 and provided further the creditable service in computing
 
14 retention rights shall commence at the point of conversion to
 
15 civil service status.  The employees affected shall continue to
 
16 receive the same rates of pay as a consequence of this Act,
 
17 provided that there is no conflict with existing personnel laws,
 
18 rules and regulations."]
 
19      SECTION 34.  Section 76-8.5, Hawaii Revised Statutes, is
 
20 repealed.
 
21      ["[§76-8.5]  Older Americans program personnel.  Employees
 
22 in an office which is funded wholly or in part under the Older
 
23 Americans Act of 1965, Public Law 89-73 or under the Domestic
 

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

 
 1 Volunteers Services Act of 1973, Public Law 93-113, as amended,
 
 2 who are employed by a county and who are not in the civil service
 
 3 system of that county, may be granted by the chief executive of
 
 4 the county permanent appointment status in the civil service
 
 5 system as provided in this chapter.  Permanent appointment status
 
 6 may be granted provided that funds shall have been appropriated
 
 7 for the positions affected and these employees shall not be
 
 8 required to qualify in civil service examinations and shall be
 
 9 entitled to all of the rights, benefits, and privileges
 
10 (including seniority credit for service in the positions
 
11 occupied, vacation, and sick leave credits) earned or accrued up
 
12 to June 13, 1988, and provided further the creditable service in
 
13 computing retention rights shall commence at the point of
 
14 conversion to civil service status.  The employees affected shall
 
15 continue to receive the same rates of pay as a consequence of
 
16 this section; provided there is no conflict with existing
 
17 personnel laws or rules."]
 
18      SECTION 35.  Section 76-9, Hawaii Revised Statutes, is
 
19 repealed.
 
20      ["§76-9 Employees of the judiciary.  It is the intent of
 
21 the legislature that the personnel of the judiciary shall form a
 
22 separately administered part of the system of personnel
 
23 administration established by this chapter and chapter 77, unless
 

 
Page 42                                                    2859
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 1 specifically exempted by this chapter or any other law; provided
 
 2 that:
 
 3      (1)  The judiciary shall have a status coequal with the
 
 4           executive branch of the State and with the several
 
 5           counties for purposes of the development of a position
 
 6           classification plan, the formulation of personnel rules
 
 7           and regulations, and the administration of the
 
 8           judiciary personnel system, including, but not limited
 
 9           to the classification, reclassification, allocation,
 
10           and reallocation of a particular position, the
 
11           publication of a vacancy announcement, the examination
 
12           of applicants, and the preparation of eligible lists;
 
13      (2)  In the development of a position classification plan,
 
14           the formulation of personnel rules and regulations, and
 
15           the administration of the judiciary personnel system,
 
16           the chief justice or the chief justice's designee shall
 
17           consult with the director of human resources
 
18           development;
 
19      (3)  Any action of the chief justice or the chief justice's
 
20           designee including the classification,
 
21           reclassification, allocation, and reallocation of a
 
22           particular position, the publication of a vacancy
 
23           announcement, the examination of applicants, the
 

 
Page 43                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           preparation of an eligible list, and appeals from
 
 2           suspensions, dismissals and demotions may be appealed
 
 3           by any person, employee or the exclusive bargaining
 
 4           unit representative to the judiciary personnel appeals
 
 5           board.  The board shall be composed of three members,
 
 6           one representative from the department of human
 
 7           resources development, one representative of the
 
 8           judiciary and one exclusive bargaining unit
 
 9           representative.  The provisions contained in section
 
10           26-34 shall not apply to the members of the judiciary
 
11           personnel appeals board.  The board shall sit as an
 
12           appellate body on matters within the jurisdiction of
 
13           the judiciary with equal authority as the civil service
 
14           commission established by section 26-5;
 
15      (4)  Nothing in chapters 76 and 77 shall be construed to
 
16           require the approval of the governor or any executive
 
17           agency for the judiciary to establish such positions in
 
18           the judicial branch as may be authorized and funded by
 
19           the legislature."]
 
20      SECTION 36.  Section 76-10, Hawaii Revised Statutes, is
 
21 repealed.
 
22      ["§76-10  Judiciary; powers and duties.  All of the powers
 
23 and duties assigned in parts I, IV, and V of this chapter to the
 

 
Page 44                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 governor or the director of human resources development shall
 
 2 with respect to the judiciary be assigned to the chief justice of
 
 3 the supreme court or the administrative director of the courts."]
 
 4      SECTION 37.  Section 76-11.5, Hawaii Revised Statutes, is
 
 5 repealed.
 
 6      ["§76-11.5  Civil service for the judiciary.  There shall be
 
 7 a civil service system for the judiciary.  Except as otherwise
 
 8 specifically provided in this section, all of the provisions of
 
 9 part II shall apply to the judiciary.
 
10      (1)  All of the powers and duties assigned to the director
 
11           of human resources development in part II shall, with
 
12           respect to the judiciary, be exercised by the
 
13           administrative director of the courts.
 
14      (2)  When applying part II to the judiciary, the term
 
15           "state" wherever it appears means the judiciary; the
 
16           term "governor" means the chief justice of the supreme
 
17           court; the "director" means the administrative director
 
18           of the courts; and the "department" means the judicial
 
19           branch."]
 
20      SECTION 38.  Section 76-19, Hawaii Revised Statutes, is
 
21 repealed.
 
22      ["§76-19  Promotional examinations.  Examinations may be
 
23 promotional examinations, which shall be limited to regular
 

 
Page 45                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 employees in the civil service, whenever in the opinion of the
 
 2 director of human resources development the same is practicable
 
 3 and for the best advantage of the public service.  Promotional
 
 4 examinations may be either intradepartmental or interdepartmental
 
 5 in scope.  Whether a promotional examination is to be
 
 6 intradepartmental or interdepartmental shall be decided by the
 
 7 director.  Ample notice shall be given by the director of the
 
 8 fact that any promotional examination is to be conducted."]
 
 9      SECTION 39.  Section 76-20, Hawaii Revised Statutes, is
 
10 repealed.
 
11      ["§76-20  Open-competitive examinations.  Examinations shall
 
12 be open-competitive whenever in the opinion of the director of
 
13 human resources development they are for the best advantage of
 
14 the public service.  In making such determination, the director
 
15 shall take into consideration the sufficiency of competition
 
16 within civil service as well as the requirements of the class for
 
17 which the examinations are to be conducted.  Ample notice shall
 
18 be given by the director of the fact that any open-competitive
 
19 examination is to be conducted.  The director may, if the
 
20 director deems it necessary because of lack of sufficient
 
21 competition or any other reason, extend the time for the filing
 
22 of applications."]
 
23      SECTION 40.  Section 76-21, Hawaii Revised Statutes, is
 

 
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 1 repealed.
 
 2      ["§76-21  Noncompetitive examinations.  Noncompetitive
 
 3 examinations may be given when, in the opinion of the director of
 
 4 human resources development, the class for which an examination
 
 5 is to be given calls for special qualifications and training
 
 6 which do not admit of competition."]
 
 7      SECTION 41.  Section 76-23, Hawaii Revised Statutes, is
 
 8 repealed.
 
 9      ["§76-23  Filling vacancy.(a)  All vacant civil service
 
10 positions shall be filled in the manner prescribed in this part
 
11 or in section 78-1.
 
12      (b)  Whenever there is a position to be filled, the
 
13 appointing authority shall request the director of human
 
14 resources development to submit a list of eligibles.  The
 
15 director shall thereupon certify a list of five or such fewer
 
16 number as may be available, taken from eligible lists in the
 
17 following order: first the promotional lists, second the recall
 
18 lists, third the reemployment lists, and fourth the open-
 
19 competitive lists; provided that laid-off regular employees shall
 
20 be placed on an appropriate recall list; provided further that
 
21 with respect to the eligibles under unskilled classes, the
 
22 director shall certify all of the eligibles on such list.  Where
 
23 there is more than one vacant position in a class to be filled,
 

 
Page 47                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the director may certify an additional eligible for each
 
 2 additional vacancy.  The director shall submit eligibles in the
 
 3 order that they appear on the eligible list before applying
 
 4 veteran's preference; provided that veterans whose examination
 
 5 scores, after addition of applicable preference, are equal to or
 
 6 exceed the examination score of the last eligible certified,
 
 7 shall also be certified; and further provided that if the last
 
 8 eligible to be certified is one of two or more eligibles who have
 
 9 identical examination scores, those two or more eligibles shall
 
10 be certified notwithstanding the fact that more than five persons
 
11 are thereby certified to fill a vacancy; and further provided
 
12 that for each eligible without resident preference certified, a
 
13 resident who has filed a resident income tax return within the
 
14 State or who has been claimed as a dependent on a resident income
 
15 tax return, as provided by section 78-1, shall also be certified.
 
16      (c)  In any case where there are three or more eligibles in
 
17 one department whose names appear as eligibles on an
 
18 interdepartmental list, upon the request of the appointing
 
19 authority of the department those three or more names shall be
 
20 certified to the appointing authority as eligibles on an
 
21 intradepartmental eligible list; but where the interdepartmental
 
22 list has been in existence for more than six months and there are
 
23 five or more persons in the department qualified for the class,
 

 
Page 48                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the department may request an intradepartmental promotional
 
 2 examination, in which case the director shall hold either an
 
 3 interdepartmental or an intradepartmental promotional
 
 4 examination.  The order in which eligibles are placed on eligible
 
 5 lists shall be fixed by rule.  The appointing authority shall
 
 6 make the appointment only from the list of eligibles certified to
 
 7 the appointing authority unless the appointing authority finds no
 
 8 acceptable person on the list certified by the director, in which
 
 9 case the appointing authority shall reject the list and request
 
10 the director to submit a new list, in which event the director
 
11 shall submit a new list of eligibles selected in like manner;
 
12 provided that the appointing authority states reasons in writing
 
13 for rejecting each of the eligibles on the list previously
 
14 certified to the appointing authority by the director or, in case
 
15 of the counties, by the civil service commission.  Eligible
 
16 lists, other than the recall and reemployment lists, shall be
 
17 effective for one year but this period may be extended by the
 
18 director.
 
19      (d)  After giving appropriate notice, an appointing
 
20 authority may fill a vacant position by promoting any regular
 
21 employee of the department without examination; provided that:
 
22      (1)  The employee meets the minimum qualifications of the
 
23           class and vacant position;
 

 
Page 49                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (2)  The noncompetitive promotion shall be based on
 
 2           appropriate selection documentation indicating that the
 
 3           person promoted is the best qualified; and
 
 4      (3)  When there is no material difference between the
 
 5           qualifications of the employees concerned, the employee
 
 6           with the longest continuous civil service employment
 
 7           within the State or county granting the promotion shall
 
 8           receive first consideration for the promotion.
 
 9      Any regular employee receiving any such promotion without
 
10 examination shall be ineligible for a second promotion without
 
11 examination prior to such employee having completed one year of
 
12 satisfactory service in the position to which the employee was so
 
13 promoted, but the employee may at any time be eligible for a
 
14 promotion to any position through examination.
 
15      (e)  An employee filling a permanent position temporarily
 
16 vacant may be given a permanent appointment to the position if it
 
17 later develops that the vacancy will be permanent, provided the
 
18 employee was originally appointed from an appropriate eligible
 
19 list and the appointing authority certifies that the employee has
 
20 been performing the duties of the position in a satisfactory
 
21 manner."]
 
22      SECTION 42.  Section 76-24, Hawaii Revised Statutes, is
 
23 repealed.
 

 
Page 50                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      ["§76-24  Unskilled labor; separate eligible and
 
 2 registration lists.  The director of human resources development
 
 3 may keep separate eligible lists for different kinds of unskilled
 
 4 labor and separate registration lists of unskilled labor for
 
 5 particular departments, institutions, districts, or localities.
 
 6 Applicants seeking to have their names placed on such
 
 7 registration lists may be required to pass such examination as
 
 8 the director may deem proper or necessary with respect to
 
 9 physical and mental health, ability to do manual labor and
 
10 habits."]
 
11      SECTION 43.  Section 76-25, Hawaii Revised Statutes, is
 
12 repealed.
 
13      ["§76-25  Reemployment and recall lists.(a)  Whenever any
 
14 employee who has been performing the employee's duties in a
 
15 satisfactory manner as shown by the records of the department of
 
16 human resources development or the agency in which the employee
 
17 has been employed, is demoted because of lack of work or lack of
 
18 funds, has voluntarily accepted a position in a lower class, has
 
19 resigned in good standing with the consent of the appointing
 
20 authority, is retired for ordinary or accidental disability, is
 
21 terminated because of nonwork related injury and there is no
 
22 other available work which the employee is capable of performing,
 
23 or whenever the employee's position has been reallocated to a
 

 
Page 51                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 lower class, the employee shall have the right to have the
 
 2 employee's name placed on the appropriate reemployment list for a
 
 3 period of three years thereafter; provided that the employee
 
 4 files a written application for reemployment within three years
 
 5 after the employee's separation, demotion, or reallocation;
 
 6 provided further that the period which an employee spends in a
 
 7 hospital, settlement, or place within the State undergoing
 
 8 treatment for Hansen's disease or tuberculosis, shall be excluded
 
 9 in computing the three-year period.  A person on a reemployment
 
10 list shall be deemed eligible for certification to positions in
 
11 the class in which the person last held a permanent status prior
 
12 to separation, demotion, or reallocation.  A person may also be
 
13 deemed eligible for certification to positions in a class, in the
 
14 same or lower grade, which are related to the class in which the
 
15 person last held a permanent appointment.
 
16      (b)  Whenever a regular employee has been laid off because
 
17 the employee's position has been abolished due to lack of work or
 
18 funds or because the employee was displaced by another employee
 
19 because of reduction-in-force, the employee shall have the right
 
20 to have the employee's name placed on appropriate recall lists
 
21 and be deemed eligible for certification to positions in the
 
22 class in which the employee last held permanent status or in a
 
23 related class in the same or lower grade for which the employee
 

 
Page 52                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 meets the qualification requirements.
 
 2      (c)  The director of human resources development may remove
 
 3 the name of a person on any reemployment or recall list or refuse
 
 4 to certify the person's name on any list of eligibles, if the
 
 5 director finds, after giving the person notice and an opportunity
 
 6 to be heard, that the person is no longer able to perform the
 
 7 necessary duties satisfactorily."]
 
 8      SECTION 44.  Section 76-26, Hawaii Revised Statutes, is
 
 9 repealed.
 
10      ["§76-26  Reemployment of retirees for service-connected
 
11 disability.  Any former employee who has been retired for a
 
12 service-connected disability but who is not totally and
 
13 permanently incapacitated from performing service shall be
 
14 reemployed in those classes for which the employee requests
 
15 reemployment and for which the employee meets minimum
 
16 qualification requirements.  The appointment shall not be subject
 
17 to competitive examination.  The order of certification when more
 
18 than one person is eligible for certification for a particular
 
19 class shall be fixed by rule."]
 
20      SECTION 45.  Section 76-31, Hawaii Revised Statutes, is
 
21 repealed.
 
22      ["§76-31  Provisional and short term appointments.(a)
 
23 Provisional appointment pending establishment of an eligible
 

 
Page 53                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 list.  When there is no eligible available on a list or when
 
 2 there are fewer than five eligibles on a list and no selection
 
 3 was made from a list that was certified as appropriate for
 
 4 filling a vacancy in a continuing position and the public
 
 5 interest requires that the vacancy be filled before eligibles can
 
 6 be certified, the director may authorize filling of the vacancy
 
 7 through provisional appointment.  The director shall proceed
 
 8 without delay to announce an examination for the filling of the
 
 9 vacancy.  The appointment shall continue only for such period as
 
10 may be necessary to make an appointment from a list of eligibles
 
11 but shall not extend beyond one hundred eighty days in any
 
12 twelve-month period, provided that the director may extend the
 
13 provisional appointment for an additional six-month period.  The
 
14 conditions under which the director may extend provisional
 
15 appointments shall be prescribed by rules.
 
16      (b)  Temporary limited appointment.  When there is need for
 
17 temporary employment, the director may authorize the department
 
18 concerned to make or extend temporary appointments limited to a
 
19 definite period of time, but not in excess of one year, except as
 
20 otherwise specifically permitted by law or regulations.  If the
 
21 temporary appointment is not made from among regular employees
 
22 eligible for noncompetitive action, the director shall certify
 
23 from an appropriate eligible list; provided that when there are
 

 
Page 54                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 fewer than five eligibles on a list and no selection was made
 
 2 from a list that was certified as appropriate, the director may
 
 3 authorize the filling of the vacancy through a temporary
 
 4 appointment.
 
 5      (c)  Emergency appointments.  In order to prevent the
 
 6 stoppage of essential public business, emergency appointments,
 
 7 not to exceed ten working days, may be made to fill positions
 
 8 temporarily in any serious emergency when it is not practicable
 
 9 to ascertain whether there is an eligible list.  The director for
 
10 good and sufficient cause, and for reasons given in writing by
 
11 the department concerned, may extend the appointment for a period
 
12 not to exceed thirty calendar days.
 
13      (d)  Except as may be otherwise specified, provisional and
 
14 temporary appointees must meet the minimum qualification
 
15 requirements for the specific position to be filled."]
 
16      SECTION 46.  Section 76-32, Hawaii Revised Statutes, is
 
17 repealed.
 
18      ["§76-32  Educational and certain other leaves.  Any regular
 
19 employee may be granted a leave of absence not to exceed one year
 
20 by the department head in order to pursue a course of
 
21 instruction, to engage in research, or otherwise to improve the
 
22 employee's ability and increase the employee's fitness for public
 
23 employment.  When the employee has carried out the plan stated by
 

 
Page 55                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the employee at the time the leave was granted, the employee
 
 2 shall have the right to return to the employee's position at the
 
 3 expiration of the employee's leave of absence.  The leave may for
 
 4 good cause be extended for a period not to exceed one year but in
 
 5 that event, all of the original conditions of the leave shall be
 
 6 complied with.  Leaves of absence may also be granted by the
 
 7 appointing authority to regular employees for such other reasons
 
 8 or to nonregular employees as may be provided by rule and in such
 
 9 cases the employee shall have the right to return to the
 
10 employee's position at the expiration of the employee's leave."]
 
11      SECTION 47.  Section 76-33, Hawaii Revised Statutes, is
 
12 repealed.
 
13      ["§76-33  Sabbatical leave.  Any employee who has been
 
14 employed by the State or any county for seven consecutive years
 
15 may upon application to and with the approval of the employee's
 
16 department head be granted a sabbatical leave of absence by the
 
17 appointing authority for not more than one year, provided that
 
18 the two years of employment next preceding the application has
 
19 been with the same department.  The employee shall have the right
 
20 to return to the employee's position at the expiration of the
 
21 sabbatical leave of absence.  The employee on sabbatical leave
 
22 shall be paid an amount equal to one-half of the basic
 
23 compensation which the employee was receiving at the commencement
 

 
Page 56                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 of the leave.  The payments shall be made in regular monthly
 
 2 installments, the last two of which shall not be made until after
 
 3 the employee has returned to work with the jurisdiction which
 
 4 granted the employee the leave.  The employee shall agree to
 
 5 return to work upon termination of sabbatical leave or any other
 
 6 leave which may be granted immediately following the sabbatical
 
 7 leave.  If the employee fails to report for work upon termination
 
 8 of sabbatical and any other leave granted, the employee shall be
 
 9 considered to have resigned and shall refund all moneys received
 
10 while on sabbatical leave.  Upon return from sabbatical and any
 
11 other leave, the employee shall agree to work in the appropriate
 
12 department for a period of two continuous years.  If the employee
 
13 fails to do so, the employee shall refund all moneys received
 
14 while on sabbatical leave.  An employee on sabbatical leave shall
 
15 not engage in any form of employment which interferes with the
 
16 employee's professional education and training and as shall be
 
17 approved by the employee's department head.  An employee granted
 
18 sabbatical leave shall not by reason thereof be deprived of any
 
19 accumulated vacation allowance or sick leave but shall accrue no
 
20 additional vacation allowance or sick leave during the period of
 
21 the leave.  Upon the employee's return from sabbatical leave the
 
22 employee shall have the same salary rating that the employee had
 
23 at the time of taking the leave and the employee's increment date
 

 
Page 57                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 shall be advanced equivalent to the duration of the leave."]
 
 2      SECTION 48.  Section 76-35, Hawaii Revised Statutes, is
 
 3 repealed.
 
 4      ["§76-35  Intragovernmental transfers.  A transfer of an
 
 5 employee in the civil service from one position to another
 
 6 position within a department or between two departments may be
 
 7 made without a reduction in pay and with the approval of the
 
 8 department head or heads and the director of human resources
 
 9 development as provided by rule."]
 
10      SECTION 49.  Section 76-36, Hawaii Revised Statutes, is
 
11 repealed.
 
12      ["§76-36  Intergovernmental exchanges or movements.
 
13 Provisions shall be made for the exchange or movement of civil
 
14 service employees between the State and any county or between
 
15 counties or between the federal government and the State or
 
16 between the federal government and any county.  The following
 
17 conditions shall govern the exchanges and movements:
 
18      (1)  All such actions shall require the approval of the
 
19           department heads and the director or directors.
 
20      (2)  All such actions shall be to the same or a closely
 
21           related class of positions.
 
22      (3)  Employees shall be required to meet the minimum
 
23           qualifications requirements of the class to which they
 

 
Page 58                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           are to be exchanged or moved.
 
 2      (4)  No employee shall be moved between the State or any
 
 3           county or between counties or between the federal
 
 4           government and the State or between the federal
 
 5           government and any county to a class for which an
 
 6           appropriate promotional eligible list exists.
 
 7      (5)  The director of human resources development may require
 
 8           a noncompetitive examination of an employee to
 
 9           determine the employee's fitness and qualifications for
 
10           the class to which the employee is being exchanged or
 
11           moved.
 
12      (6)  No exchange shall be for a period in excess of one
 
13           year."]
 
14      SECTION 50.  Section 76-37, Hawaii Revised Statutes, is
 
15 repealed.
 
16      ["§76-37  Exchanges with states.  The director of human
 
17 resources development shall promulgate a uniform plan for the
 
18 exchange of employees within the civil services of the State and
 
19 the counties with the employees of any state or subdivision
 
20 thereof and the plan shall uniformly apply to the State and all
 
21 counties.  The following conditions shall govern the exchanges:
 
22      (1)  Each person coming to the State on exchange shall have
 
23           qualifications substantially equal to those of the
 

 
Page 59                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           employee who is exchanged for the person.
 
 2      (2)  The person exchanged from the State shall have served
 
 3           within the State as an employee of the State or county,
 
 4           as the case may be, not less than three years before
 
 5           the beginning of the exchange period.
 
 6      (3)  In the selection of employees for exchange from the
 
 7           State, preference shall be given to persons born in the
 
 8           State.
 
 9      (4)  The person exchanged by any state or subdivision
 
10           thereof shall hold in the government of the state or
 
11           subdivision a position which is substantially
 
12           equivalent to the position of the employee for whom the
 
13           person is exchanged.
 
14      (5)  The person exchanged from the State shall be paid the
 
15           person's regular salary by the State or county, as the
 
16           case may be, but nothing in addition thereto.
 
17      (6)  The State or county, as the case may be, shall not pay
 
18           any traveling or other expenses of any person or
 
19           employee exchanged to or from the State on any contract
 
20           of exchange, and this prohibition shall apply to all
 
21           traveling, transportation, board, lodging, or other
 
22           expense incidental to or arising out of the exchange.
 
23      (7)  The State or county, as the case may be, shall not pay
 

 
Page 60                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           any compensation to any person coming to the State
 
 2           under any contract or exchange; provided that in any
 
 3           case where the person exchanged from the State becomes
 
 4           incapacitated or for any reason leaves the person's
 
 5           exchange position during the period of the exchange,
 
 6           the State or county, as the case may be, may reimburse
 
 7           the employer of the visiting exchange person an amount
 
 8           not to exceed the salary of the person exchanged from
 
 9           the State, until the end of the exchange period or
 
10           until such time as some adjustment satisfactory to the
 
11           State or county is made.  Contracts of exchange shall
 
12           provide that in a corresponding situation the exchange
 
13           state or subdivision thereof shall reimburse the
 
14           employer of the employee exchanged from the State.
 
15      (8)  No exchange shall be for a period in excess of one
 
16           year."]
 
17      SECTION 51.  Section 76-39, Hawaii Revised Statutes, is
 
18 repealed.
 
19      ["§76-39  Use of official class titles.  Official class
 
20 titles established by the director of human resources development
 
21 shall be used for personnel, budget and fiscal purposes, but this
 
22 requirement shall not prevent the use of other titles for
 
23 internal administration, public conveniences, law enforcement or
 

 
Page 61                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 similar purposes."]
 
 2      SECTION 52.  Section 76-41, Hawaii Revised Statutes, is
 
 3 repealed.
 
 4      ["§76-41  Performance ratings.  There shall be established
 
 5 and maintained a system of performance ratings for the purpose of
 
 6 appraising the service of employees in the civil service and
 
 7 improving the employees' performance.  Each department shall rate
 
 8 each employee under its jurisdiction in accordance with the
 
 9 system and shall, upon request by the director of the respective
 
10 jurisdiction, transmit the final performance ratings to the
 
11 director of human resources development.  A copy of the final
 
12 performance rating shall be given to the affected employee, and
 
13 the original shall be filed in the employee's official personnel
 
14 file.
 
15      The department head shall inform an employee in writing
 
16 whenever the employee's performance in the employee's position is
 
17 substandard.  The employee shall also be notified in the notice
 
18 and from time to time thereafter as may be necessary, of the
 
19 manner in which the employee's performance is substandard."]
 
20      SECTION 53.  Section 76-42, Hawaii Revised Statutes, is
 
21 repealed.
 
22      ["§76-42  Grievance procedures.  The director of human
 
23 resources development shall promulgate a uniform plan for the
 

 
Page 62                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 creation of grievance procedures in the various departments.  The
 
 2 rules and regulations relating to grievance procedures shall
 
 3 conform to the following principles:
 
 4      (1)  An employee may, without resort to formal procedures,
 
 5           discuss informally any problem relating to the
 
 6           employee's conditions of employment with any of the
 
 7           employee's supervisors.
 
 8      (2)  In presenting a grievance, the employee shall be
 
 9           assured freedom from coercion, discrimination or
 
10           reprisal.
 
11      (3)  An employee shall have the right to be represented by a
 
12           person or persons of the employee's own choosing at any
 
13           stage in the presentation of the employee's grievance.
 
14      (4)  All proceedings relating to the handling of employee
 
15           grievances shall so far as practicable be conducted
 
16           during office hours."]
 
17      SECTION 54.  Section 76-44, Hawaii Revised Statutes, is
 
18 repealed.
 
19      ["§76-44  Racial, sex, age, religious, color, ancestry,
 
20 marital status, or political consideration barred.  No person
 
21 holding any position in the civil service shall be suspended,
 
22 demoted, or dismissed from the person's position on racial, sex,
 
23 age, religious, color, ancestry, marital status, or political
 

 
Page 63                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 grounds."]
 
 2      SECTION 55.  Section 76-45, Hawaii Revised Statutes, is
 
 3 repealed.
 
 4      ["§76-45  Suspension.  An appointing authority may, for
 
 5 disciplinary purposes, suspend any employee without pay for such
 
 6 length of time as the appointing authority considers appropriate,
 
 7 but not exceeding thirty days at any one time nor more than sixty
 
 8 days in any calendar year.  No single suspension for a period of
 
 9 five working days or more, whether consecutively or not, shall
 
10 take effect unless the appointing authority gives the employee a
 
11 written notice setting forth the specific reasons upon which the
 
12 suspension is based.  With the approval of the director, an
 
13 employee may be suspended for a period longer than thirty days
 
14 pending an investigation or hearing of any charge against the
 
15 employee.  Where an employee has been suspended pending an
 
16 investigation or hearing of any charge against the employee and
 
17 the charge is subsequently dropped or not substantiated, the
 
18 employee shall be reinstated in the employee's position without
 
19 loss of pay.
 
20      An employee who is suspended for a period not in excess of
 
21 four working days, whether consecutively or not, shall be
 
22 entitled to a written notice from the appointing authority
 
23 setting forth the specific reasons upon which the suspension is
 

 
Page 64                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 based.  The written notice shall be given to the employee or
 
 2 mailed to the employee within forty-eight hours after the
 
 3 suspension."]
 
 4      SECTION 56.  Section 76-46, Hawaii Revised Statutes, is
 
 5 repealed.
 
 6      ["§76-46  Dismissals; demotions.  An appointing authority
 
 7 may dismiss or demote any employee when the appointing authority
 
 8 considers that the good of the service will be served thereby.
 
 9 Dismissals may be made only for such causes as will promote the
 
10 efficiency of government service.
 
11      No dismissal or demotion of a regular employee shall be
 
12 effective for any purpose unless at least ten days before the
 
13 effective date thereof the appointing authority shall have given
 
14 to the employee a written statement setting forth the specific
 
15 reasons upon which the dismissal or demotion is based."]
 
16      SECTION 57.  Section 76-53, Hawaii Revised Statutes, is
 
17 repealed.
 
18      ["§76-53  Certification of payrolls.(a)  No state or
 
19 county disbursing or auditing officer shall make, or approve, or
 
20 take any part in making or approving, any payment for personal
 
21 service to any person holding a position in the state service
 
22 unless payroll certification has been made by the director of
 
23 human resources development or the director's authorized agent
 

 
Page 65                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 that the person named therein has been appointed and employed in
 
 2 accordance with this chapter and the rules, regulations, and
 
 3 orders thereunder.  The director may for proper cause withhold
 
 4 payroll certification for any position in the state or county
 
 5 service, as the case may be.
 
 6      (b)  Any citizen may maintain a suit to restrain a
 
 7 disbursing officer from making any payment in contravention of
 
 8 this part, or rule or order thereunder.  Any sum paid contrary to
 
 9 this part or of any rule, regulation, or order thereunder may be
 
10 recovered in an action maintained by any citizen from any officer
 
11 who made, approved, or authorized the payment or who signed or
 
12 counter-signed a voucher, payroll, check, or warrant for the
 
13 payment or from the sureties on the official bond of the officer.
 
14 All money recovered in any such action shall be paid into the
 
15 state or county treasury, as the case may be.
 
16      (c)  Any person appointed or employed in contravention of
 
17 this part, or of any rule, regulation, or order thereunder who
 
18 performs service for which the person is not paid may maintain an
 
19 action against the officer or officers who purported so to
 
20 appoint or employ the person to recover the agreed pay for the
 
21 services or the reasonable value thereof if no pay is agreed
 
22 upon.  No officer shall be reimbursed at any time for any sum
 
23 paid to the person on account of the services.
 

 
Page 66                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (d)  If the director wrongfully withholds payroll
 
 2 certification for a position in the state service held by any
 
 3 employee, the employee may maintain a proceeding in the courts to
 
 4 compel the director to certify the payroll."]
 
 5      SECTION 58.  Section 76-54, Hawaii Revised Statutes, is
 
 6 repealed.
 
 7      ["§76-54  Status of employees of activities acquired by
 
 8 State or county.  Employees of activities purchased or acquired
 
 9 by the State or by a county who as of the date of purchase or
 
10 acquisition have been employed by the activities for at least one
 
11 full year may, by action of the state director of human resources
 
12 development or the county civil service commission, be given
 
13 status as a regular employee of the civil service without
 
14 competitive examination.  Employees of the activities who have
 
15 been employed at least six full months by the activities may, by
 
16 action of the state director or the county commission, be given
 
17 an initial probationary appointment without competitive
 
18 examination.  Positions held by such employees shall be allocated
 
19 to the appropriate class in the position classification plan and
 
20 employees shall be paid in accordance with the salary range to
 
21 which the class is assigned; provided that employees receiving a
 
22 salary above the minimum rate while employed by such activities
 
23 may be paid at a rate higher than the minimum but not exceeding
 

 
Page 67                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the maximum."]
 
 2      SECTION 59.  Section 76-55, Hawaii Revised Statutes, is
 
 3 repealed.
 
 4      ["§76-55  Membership of civil service.  All regular
 
 5 employees and all other employees having a permanent appointment
 
 6 in civil service pursuant to law shall constitute the membership
 
 7 of the civil service, but no employee shall be entitled to
 
 8 membership in civil service unless the employee has been
 
 9 appointed in accordance with law and has satisfied all
 
10 requirements for employment, including those prescribed by
 
11 section 78-1."]
 
12      SECTION 60.  Section 76-56, Hawaii Revised Statutes, is
 
13 repealed.
 
14      ["§76-56  Annual report.  The state director of human
 
15 resources development shall make a report to the governor and to
 
16 the members of the legislature not later than February 15 of each
 
17 year, which report shall review the operations of each respective
 
18 department and the administration of the personnel system for the
 
19 preceding year.  The report shall also contain recommendations in
 
20 the laws relating to the personnel system, deemed by the director
 
21 to be necessary or desirable to further promote the merit system
 
22 for public employment."]
 
23      SECTION 61.  Section 76-71, Hawaii Revised Statutes, is
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 repealed.
 
 2      ["§76-71  Department of civil service.  There shall be a
 
 3 department of civil service for each of the counties of Hawaii,
 
 4 Maui, and Kauai, which shall include a personnel director and a
 
 5 commission consisting of five members appointed by the mayor with
 
 6 the approval of the council of the respective counties."]
 
 7      SECTION 62.  Section 76-72, Hawaii Revised Statutes, is
 
 8 repealed.
 
 9      ["§76-72  Commission; appointment; removal.  The members of
 
10 the commission shall be persons who believe in applying merit
 
11 principles to public employment.  They shall be appointed as
 
12 prescribed in section 76-71 and shall hold office for five years.
 
13 Each appointment shall be for a term ending five years from the
 
14 date of the expiration of the term for which the predecessor was
 
15 appointed.  Of the members appointed, one shall be selected from
 
16 among persons employed in private industry in either skilled or
 
17 unskilled laboring positions as distinguished from executive or
 
18 professional positions.  No member of the commission shall be
 
19 eligible for a second appointment to the commission prior to the
 
20 expiration of two years from the date the member's previous term
 
21 as such member expired.  A person appointed to fill a vacancy
 
22 occurring prior to the expiration of any term shall be appointed
 
23 for the remainder of the term.  Each member shall serve until the
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 member's successor has been appointed and qualified.  Not more
 
 2 than three members of the commission shall belong to the same
 
 3 political party.  The commission shall select a chairperson from
 
 4 its membership annually.
 
 5      Any commissioner may be removed by the mayor with the
 
 6 approval of the council, or, without the approval of the council,
 
 7 upon conviction of any felony or misdemeanor involving moral
 
 8 turpitude, or for neglect of duty or malfeasance in office."]
 
 9      SECTION 63.  Section 76-73, Hawaii Revised Statutes, is
 
10 repealed.
 
11      ["§76-73  Expenses.  When any member of the commission is
 
12 required to travel to and from the site of a commission meeting
 
13 or from any island to another island in the State in the
 
14 performance of the commission's duties, the commissioner shall be
 
15 allowed reasonable traveling expenses."]
 
16      SECTION 64.  Section 76-74, Hawaii Revised Statutes, is
 
17 repealed.
 
18      ["§76-74  Meeting, quorum.  The commission shall meet at
 
19 least once each month at such places as are made available for
 
20 such purposes by the mayor.  The commission may meet at such
 
21 other times as may be designated in advance by it, its
 
22 chairperson, or the mayor.  No business of the commission shall
 
23 be conducted, except in meetings open to the public.  Three
 

 
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 1 members shall constitute a quorum."]
 
 2      SECTION 65.  Section 76-75, Hawaii Revised Statutes, is
 
 3 repealed.
 
 4      ["§76-75  Personnel director.  The commission shall appoint
 
 5 and may at pleasure remove a personnel director, who shall be the
 
 6 chief administrative officer of the department of civil service.
 
 7 The director shall, at the time of the director's appointment,
 
 8 and thereafter, be thoroughly familiar with the principles and
 
 9 methods of personnel administration and shall believe in applying
 
10 merit principles and scientific administrative methods to public
 
11 personnel administration."]
 
12      SECTION 66.  Section 76-76, Hawaii Revised Statutes, is
 
13 repealed.
 
14      ["§76-76  Deputy director.  The personnel director may
 
15 designate a qualified person as the director's deputy.  The
 
16 deputy shall be thoroughly familiar with the principles and
 
17 methods of personnel administration and shall believe in applying
 
18 merit principles and scientific administrative methods to public
 
19 personnel administration.  In case of a vacancy in the office of
 
20 director or of the absence of the director or the director's
 
21 inability from any cause to discharge the powers and duties of
 
22 the director's office, the powers and duties shall devolve upon
 
23 the director's deputy."]
 

 
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 1      SECTION 67.  Section 76-78, Hawaii Revised Statutes, is
 
 2 repealed.
 
 3      ["§76-78  Provisions of part II applicable.  Except as
 
 4 otherwise specifically provided in this part, all of the
 
 5 provisions of part II shall apply to each of the counties of
 
 6 Hawaii, Maui, and Kauai and shall be deemed a part of this part,
 
 7 for which purpose wherever reference is made in part II to the
 
 8 State or governor or the legislature, it means each of the
 
 9 counties, the mayor of each county, and the council of each
 
10 county, respectively, and references therein to the state
 
11 director of human resources development and the civil service
 
12 commission mean the director and the commission provided for in
 
13 section 76-71; provided that the reference to the director in
 
14 sections 76-12, 76-17, 76-42, and 76-43 means the commission
 
15 provided for in section 76-71; and provided further that section
 
16 76-16 shall not be deemed a part of this part."]
 
17      SECTION 68.  Section 76-80, Hawaii Revised Statutes, is
 
18 repealed.
 
19      ["§76-80  Additional duties of county director.  In addition
 
20 to the duties prescribed in section 76-13, the county personnel
 
21 director shall report to the commission the director's findings
 
22 and recommendations resulting from the investigations under
 
23 section 76-13(7)."]
 

 
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 1      SECTION 69.  Section 76-81, Hawaii Revised Statutes, is
 
 2 repealed.
 
 3      ["§76-81  Director, employees' retirement system
 
 4 representative.  In addition to the duties prescribed by section
 
 5 76-13, the personnel director of each county shall represent the
 
 6 employees' retirement system of the State, when so requested by
 
 7 the board of trustees of the system, in advising employees of
 
 8 their rights, duties, and benefits thereunder, in processing the
 
 9 forms prescribed by the board of trustees and in giving other
 
10 assistance with respect thereto."]
 
11      SECTION 70.  Parts IV, V, and VI of chapter 76, Hawaii
 
12 Revised Statutes, are repealed.
 
13                             PART III
 
14      SECTION 71.  Chapter 78, Hawaii Revised Statutes, is amended
 
15 by adding a new part to be appropriately designated and to read
 
16 as follows:
 
17                   "PART  .  DRUG FREE WORKFORCE
 
18      §78-A Purpose.  Drug abuse is a serious statewide problem.
 
19 Individuals may exhibit little or no signs of drug abuse, but are
 
20 nevertheless dangerous to themselves, their co-workers, and the
 
21 public.  Public employees in safety sensitive positions pose a
 
22 particular risk to the safety of the public.  Even if functional
 
23 in routine activities, public employees who use controlled
 

 
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 1 substances are impaired and may be unreliable in times of crisis.
 
 2 Drug abusers should not be given access to guns with the
 
 3 concomitant potential for violence; should not be given access to
 
 4 prisoners with the possibility of exacerbating any existing drug
 
 5 problem in the prison; should not be given access to controlled
 
 6 substances with the inevitable opportunity to succumb to the
 
 7 temptation; should not be entrusted with commercial motor
 
 8 vehicles with the potential for accidents and loss of life;
 
 9 should not be given positions the public must rely upon for
 
10 judgment and integrity; and should not be given positions
 
11 involving highly sensitive information.
 
12      Accordingly, this part requires:
 
13      (1)  The termination of all public employees who use drugs
 
14           twice during the period of employment; 
 
15      (2)  All new hires to demonstrate their suitability for
 
16           public employment by passing a pre-employment drug test
 
17           if required by the employing jurisdiction and having no
 
18           record of a prior conviction for a controlled
 
19           substance-related offense within the preceding three-
 
20           year period; and
 
21      (3)  Mandatory random drug testing for all public employees
 
22           whose jobs require unimpeachable integrity and
 
23           judgment, enhance public safety, impact the care of
 

 
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 1           human life, require unimpaired performance to avoid
 
 2           risk to the health or safety of the public, or involve
 
 3           the custody and maintenance of truly sensitive
 
 4           information;
 
 5 and shall be interpreted in a manner that best protects these
 
 6 compelling governmental interests.
 
 7      §78-B Definitions.  For purposes of this chapter:
 
 8      "Controlled substance" means a drug, substance, or immediate
 
 9 precursor in schedules I through V of chapter 329, part II.
 
10      "During the period of employment" means the start date of
 
11 employment until the date of separation and includes off-duty
 
12 hours, holidays, and weekends.
 
13      "Safety sensitive positions" means positions which require
 
14 unimpeachable integrity and judgment, enhance public safety,
 
15 impact the care of human life, require unimpaired performance to
 
16 avoid risk to the health and safety of the public, or involve the
 
17 custody and maintenance of truly sensitive information, including
 
18 but not limited to the following categories:
 
19      (1)  Positions requiring the ability to carry firearms,
 
20           including police officers, adult corrections officers,
 
21           harbor patrol officers, department of land and natural
 
22           resources patrols, investigators for the department of
 
23           the attorney general, the prosecuting attorney, and the
 

 
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 1           department of public safety, state law enforcement
 
 2           officers, sheriffs, and any other positions authorized
 
 3           to carry firearms;
 
 4      (2)  Positions located in an adult correctional facility or
 
 5           youth correction facility including social workers,
 
 6           medical personnel, education, kitchen, office, and
 
 7           work-line staff, treatment providers, and counselors,
 
 8           and supervisors of these positions;
 
 9      (3)  Positions authorized to administer controlled
 
10           substances including doctors, nurses, emergency medical
 
11           technicians, and physician assistants;
 
12      (4)  Positions requiring a commercial drivers license;
 
13      (5)  Positions requiring unimpaired performance to avoid
 
14           risk to the health or safety of the public including
 
15           drivers of passenger carrying vehicles or equipment
 
16           vehicles;
 
17      (6)  Lifeguards, water safety officers, firefighters, and
 
18           other positions involved in life-saving activities,
 
19           responding to emergencies, or rescue operations;
 
20      (7)  Positions with responsibility for the security of
 
21           government buildings;
 
22      (8)  Positions requiring unimpeachable integrity and
 
23           judgment including deputy attorney generals, deputy
 

 
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 1           corporation counsels, and deputy prosecuting attorneys,
 
 2           but excluding members of the judiciary; and 
 
 3      (9)  Positions which involve the custody and maintenance of
 
 4           truly sensitive information including public employees
 
 5           who must have a military security clearance in order to
 
 6           perform their jobs.
 
 7      §78-C Safety-sensitive positions; mandatory drug testing
 
 8 and termination for two strikes.(a)  Each director shall
 
 9 identify all safety sensitive positions within the director's
 
10 jurisdiction, consistent with the purpose of this part, that
 
11 shall be required to undergo mandatory random controlled
 
12 substance testing.  To implement this part, the director shall
 
13 establish a written policy setting forth the manner in which
 
14 individuals are chosen to be tested, the type of test to be
 
15 given, and the consequences of a positive controlled substance
 
16 test, including adverse actions, additional testing, counseling
 
17 and treatment, and any other requirements.
 
18      (b)  All public employees in safety sensitive positions in
 
19 the jurisdiction shall be required to undergo mandatory random
 
20 controlled substance testing pursuant to the director's written
 
21 policy.
 
22      (c)  There is a rebuttable presumption that a public
 
23 employee testing positive for a controlled substance during the
 

 
Page 77                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 period of employment was in fact using controlled substances
 
 2 during the period of employment.
 
 3      (d)  Any conviction for a controlled substance-related
 
 4 offense which occurred during the period of employment shall be
 
 5 an irrebuttable presumption that the public employee was in fact
 
 6 using controlled substances during the period of employment.
 
 7      (e)  Any public employee covered by this section, using
 
 8 controlled substances once during the period of employment, may
 
 9 be placed on mandatory leave, be required to undergo additional
 
10 drug testing, and be required to receive counseling and treatment
 
11 pursuant to the director's written policy.
 
12      (f)  Any public employee using controlled substances twice
 
13 during the period of employment shall be immediately terminated
 
14 and shall be ineligible for public employment for not less than
 
15 five years thereafter.
 
16      (g)  Any adverse action taken against an employee for using
 
17 controlled substances may be grieved in accordance with the
 
18 applicable grievance procedure under chapter 89 or 89C.
 
19      (h)  An exclusive representative may negotiate procedures on
 
20 maintaining a drug free workforce as it applies to safety
 
21 sensitive employees within its bargaining unit; provided that any
 
22 procedures negotiated shall be consistent with the provisions in
 
23 this part and do not interfere with the responsibilities required
 

 
Page 78                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 of the director in subsection (a).  If there are provisions in a
 
 2 collective bargaining agreement that are inconsistent with this
 
 3 part, the inconsistent provisions shall not be valid and
 
 4 enforceable and the parties shall repeal or amend the provisions
 
 5 to be in conformance with this part.
 
 6      §78-D Prospective employees; suitability for public
 
 7 employment.(a)  All prospective employees, regardless of the
 
 8 positions they will assume, may be required to demonstrate their
 
 9 suitability for public employment by:
 
10      (1)  Passing a pre-employment controlled substance drug test
 
11           if required by the employing jurisdiction; and
 
12      (2)  Attesting that during the three year period immediately
 
13           preceding the date of application for employment, the
 
14           person was not convicted of any controlled substance-
 
15           related offense.
 
16      (b)  A failure to meet any of the requirements of subsection
 
17 (a) shall result in a determination of unsuitability and the
 
18 person may be ineligible for appointment under section 76-29.
 
19      §78-E Mandatory termination for two convictions.(a)  All
 
20 public employees in positions that are not covered by section
 
21 78-C, regardless of the positions they occupy, shall be subject
 
22 during the period of employment to a determination of
 
23 unsuitability resulting in immediate termination if they are
 

 
Page 79                                                    2859
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 1 convicted twice for a controlled substance-related offense.  In
 
 2 implementing this section, section 78-C(d), (f), and (g) shall
 
 3 apply.
 
 4      (b)  Each director shall adopt rules necessary to implement
 
 5 this section."
 
 6      SECTION 72.  Chapter 78, Hawaii Revised Statutes, is amended
 
 7 by adding a new section to Part I to be appropriately designated
 
 8 and to read as follows:
 
 9      "§78-    Definitions.  As used in this part:
 
10      "Appointing authority" means a department head or designee
 
11 having the power to make appointments or changes in the status of
 
12 employees.
 
13      "Jurisdiction" means the State, the city and county of
 
14 Honolulu, the county of Hawaii, the county of Maui, and the
 
15 county of Kauai, the judiciary, the department of education, the
 
16 University of Hawaii, and the Hawaii health systems corporation."
 
17      SECTION 73.  Section 78-1, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§78-1 Citizenship and residence [of government officials
 
20 and employees]; exceptions.(a)  All elective officers in the
 
21 service of the government of the State or in the service of any
 
22 county or municipal subdivision of the State shall be citizens of
 
23 the United States and residents of the State for at least three
 

 
Page 80                                                    2859
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 1 years immediately preceding assumption of office.
 
 2      (b)  All appointive officers in the service of the
 
 3 government of the State or in the service of any county or
 
 4 municipal subdivision of the State who are employed as department
 
 5 heads, first assistants, first deputies, second assistants, or
 
 6 second deputies to a department head shall be citizens of the
 
 7 United States and residents of the State for at least one year
 
 8 immediately preceding their appointment[; however, all].  All
 
 9 others appointed in the service of the government of the State or
 
10 in the service of any county or municipal subdivision of the
 
11 State shall be citizens, nationals, or permanent resident aliens
 
12 of the United States and residents of the State [at the time of
 
13 their appointment].  A national or permanent resident alien
 
14 [appointed pursuant to this section] appointee shall not be
 
15 eligible for continued employment unless such person diligently
 
16 seeks citizenship upon becoming eligible to apply for United
 
17 States citizenship.
 
18      (c)  All [employees] persons seeking employment in [the]
 
19 service of the government of the State or in the service of any
 
20 county or municipal subdivision of the State shall be citizens,
 
21 nationals, or permanent resident aliens of the United States, or
 
22 eligible under federal law for unrestricted employment in the
 
23 United States and residents of the State at the time of their
 

 
Page 81                                                    2859
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 1 application for employment.
 
 2      "Resident" means a person who is physically present in the
 
 3 State at the time the person claims to have established the
 
 4 person's domicile in the State and shows the person's intent is
 
 5 to make Hawaii the person's permanent residence.  In determining
 
 6 this intent, the following factors shall be considered:
 
 7      (1)  Maintenance of a domicile or permanent place of
 
 8           residence in the State;
 
 9      (2)  Absence of residency in another state[.]; and
 
10      (3)  Former residency in the State.
 
11      (d)  [For the purpose of obtaining services which are
 
12 essential to the public interest for which no competent person
 
13 with the qualifications under subsection (c) applies within
 
14 forty-five days after the first public notice of the position or
 
15 a notice of an examination therefor, which notice has been given
 
16 more than once, and not more often than once a week, statewide, a
 
17 person without the qualifications, upon prior certification by
 
18 the state director of human resources development or the
 
19 personnel director of the appropriate county, and with the
 
20 approval of the chief executive officer for the State or the
 
21 political subdivision concerned, may be employed.] The appointing
 
22 authority may approve the appointment of persons without
 
23 consideration of the requirements under subsection (c) when
 

 
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 1 services essential to the public interest require highly
 
 2 specialized technical and scientific skills or knowledge for
 
 3 critical-to-fill and labor shortage positions.
 
 4      (e)  For the positions involved in the performance of
 
 5 services in planning and executing measures for the security of
 
 6 Hawaii and the United States, the employees shall be citizens of
 
 7 the United States in addition to meeting the requirement of
 
 8 residency in subsection (c).
 
 9      (f)  [A preference shall be granted to state residents who
 
10 have filed resident income tax returns within the State or who
 
11 have been claimed as a dependent on such a return at the time of
 
12 their application for employment with the State or any county or
 
13 municipal subdivision of the State.
 
14      For residents applying for positions covered by chapters 76
 
15 and 77, the preference shall be accomplished as provided in
 
16 section 76-23.
 
17      For residents applying for positions not covered by chapters
 
18 76 and 77, the preference shall be accomplished by giving first
 
19 consideration to such residents, if all other factors are
 
20 relatively equal.
 
21      (g)]  This section shall not apply to persons [recruited]
 
22 appointed by the department of education as district
 
23 superintendents, principals, or teachers or persons appointed by
 

 
Page 83                                                    2859
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 1 the University of Hawaii under the authority of section 304-11."
 
 2      SECTION 74.  Section 78-7, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§78-7 Certain public officers prohibited from receiving
 
 5 certain masterships and master's fees; forfeiture.  (a)  No
 
 6 person holding any salaried office or employment [in the
 
 7 executive or judicial branches of the government of the State or
 
 8 any county thereof,] or holding any [executive or judicial]
 
 9 office or employment any part of the compensation for which is
 
10 paid by [the State or any county,] a jurisdiction, shall be
 
11 appointed to serve as master to examine, pass, or report upon any
 
12 account filed in any court of the State by any guardian, trustee,
 
13 or personal representative except where the estate concerned is
 
14 insolvent or there are insufficient funds therein to pay a
 
15 reasonable master's fee.  [In that event, the]
 
16      (b)  The master shall not receive, directly or indirectly,
 
17 any fee or other remuneration for services rendered as master to
 
18 examine, pass, or report upon any account filed in any court of
 
19 the State by any guardian, trustee, or personal representative.
 
20 The person receiving or accepting the fee or remuneration shall
 
21 by virtue of the acceptance be deemed to have released and
 
22 forfeited all claim and right thereafter to any compensation
 
23 payable by the [State or county] jurisdiction by virtue of the
 

 
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 1 office or employment, and in addition, if the person is holding
 
 2 an office or employment, subject to the power of the legislature
 
 3 of the State to provide for forfeiture thereof as herein
 
 4 provided, shall be deemed to have forfeited and been ipso facto
 
 5 discharged from the person's office or employment.  In any event,
 
 6 upon acceptance of the fee or remuneration, the comptroller or
 
 7 other disbursing officer of the [State or director of finance of
 
 8 any county] jurisdiction is prohibited from issuing any warrant
 
 9 to the person except for services rendered prior to the
 
10 forfeiture.
 
11      (c)  This section shall not apply to officers whose only
 
12 compensation from the government is paid pursuant to any state
 
13 statute upon a per diem basis or upon a fee basis, or to officers
 
14 or employees appointed or employed by contract to render a
 
15 temporary professional service.  Traveling or other expenses paid
 
16 or payable by the State or any county to any officer or employee
 
17 shall not be deemed to be compensation."
 
18      SECTION 75.  Section 78-8, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§78-8 Persons subject to sections 78-8 to 78-11.  The
 
21 persons subject to sections 78-8 to 78-11 are those elected to or
 
22 appointed or employed in [the government of the State or any
 
23 county, or in any political subdivision thereof,] a jurisdiction,
 

 
Page 85                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 or appointed to or employed in any office or employment for which
 
 2 any part of [the] their compensation [of which] is paid out of
 
 3 public funds[, and who are required to take and subscribe a
 
 4 loyalty oath or affirmation pursuant to chapter 85.  All persons
 
 5 exempted from the requirements of chapter 85 are and shall be
 
 6 exempted from sections 78-8 to 78-11]."
 
 7      SECTION 76.  Section 78-9, Hawaii Revised Statutes, is
 
 8 amended to read as follows:
 
 9      "§78-9 Failure to appear or testify, termination of
 
10 employment.  If any person subject to sections 78-8 to 78-11,
 
11 after lawful notice or process, wilfully refuses or fails to
 
12 appear before any court or judge, any legislative committee, or
 
13 any officer, board, commission, or other body authorized to
 
14 conduct any hearing or inquiry, or having appeared refuses to
 
15 testify or to answer any question regarding:
 
16      (1)  [the] The government, property or affairs of the State
 
17           or of any political subdivision thereof[,]; or
 
18      (2)  [the] The person's qualifications for public office or
 
19           employment (including matters pertaining to loyalty or
 
20           disloyalty)[,]; or
 
21      (3)  [the] The qualifications of any officer or employee of
 
22           the State or any political subdivision thereof, on the
 
23           ground that the person's answer would tend to
 

 
Page 86                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           incriminate the person, or refuses to testify or to
 
 2           answer any such question without right[,];
 
 3 the person's term or tenure of office or employment shall
 
 4 terminate and the office or employment shall be vacant, and the
 
 5 person shall not be eligible to election or appointment to any
 
 6 office or employment under the [State or any political
 
 7 subdivision thereof.] jurisdiction.  To the extent that the State
 
 8 is without authority to require, under the constitution or laws
 
 9 of the United States, compliance by any public officer or public
 
10 employee herewith, sections 78-8 to 78-11 shall [not] apply [to
 
11 the officer or employee, but the sections shall apply] to the
 
12 extent that they or any part thereof can lawfully be made
 
13 applicable."
 
14      SECTION 77.  Section 78-10, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "§78-10  Procedure upon default.  If any person subject to
 
17 sections 78-8 to 78-11 refuses to appear or refuses to testify
 
18 under any of the circumstances contemplated in section 78-9, the
 
19 presiding judge or officer of the court or body before which the
 
20 default or refusal occurs shall certify the fact thereof to the
 
21 appointing or employing authority having cognizance of the person
 
22 as a public officer or public employee and to the comptroller or
 
23 other disbursing officer who issues warrants or checks to pay the
 

 
Page 87                                                    2859
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 1 person for the person's services as a public officer or public
 
 2 employee.  If the default or refusal occurs before any court or
 
 3 body whose presiding judge or officer may not be required by the
 
 4 legislature to make and file such a certificate, then:
 
 5      (1)  [the] The presiding judge or officer may make and file
 
 6           the certificate[,]; and
 
 7      (2)  [the] The attorney general of the State, upon learning
 
 8           of the default or refusal, shall make and file the
 
 9           certificate if the presiding judge or officer of the
 
10           court or body has not filed the same.  Upon receiving a
 
11           certificate[,]:
 
12           (A)  [the] The appointing or employing authority shall
 
13                remove or discharge the person from office or
 
14                employment[,]; and
 
15           (B)  [the] The comptroller or other disbursing officer
 
16                shall make no further payments of public funds to
 
17                the person, except to pay the person the salary,
 
18                wages, bonus, or other compensation to which the
 
19                person otherwise would be entitled if the person
 
20                were voluntarily terminating the person's office
 
21                or employment on the day the order is served on
 
22                the comptroller or other disbursing officer."
 
23      SECTION 78.  Section 78-11, Hawaii Revised Statutes, is
 

 
Page 88                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 amended to read as follows:
 
 2      "§78-11  Review of discharge.  The removal or discharge of
 
 3 any person from office or employment under sections 78-8 to 78-11
 
 4 shall not be reviewable by any court, officer, or agency of [the
 
 5 State or county, or any political subdivision thereof,] a
 
 6 jurisdiction but nothing herein shall preclude any court of
 
 7 competent jurisdiction from reviewing the question whether the
 
 8 removal or discharge is in accordance with the sections.  In the
 
 9 case of any officer who may only be removed from office by the
 
10 governor by and with the advice and consent of the senate of the
 
11 State, the removal of the officer shall not be effected until the
 
12 advice and consent of the senate thereto is given, but the duties
 
13 of the comptroller or other [appropriate] disbursing officer
 
14 [hereinbefore] specified in section 78-10 shall remain the same."
 
15      SECTION 79.  Section 78-12, Hawaii Revised Statutes, is
 
16 amended to read as follows:
 
17      "§78-12  Salary withheld for indebtedness to the
 
18 government[.]; salary or wage overpayment.  (a)  In case any
 
19 officer, agent, employee or other person in the service of [the
 
20 State, any county, or any independent board or commission,] a
 
21 jurisdiction is indebted to the [State, any county, or to any
 
22 independent board or commission,] jurisdiction and the
 
23 indebtedness has been determined by a hearing pursuant to chapter
 

 
Page 89                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 91, upon demand of the officer charged with the duty of
 
 2 collecting the indebtedness, the comptroller or other disbursing
 
 3 officer charged with the duty of paying the indebted officer,
 
 4 agent, employee, or other person, after notice to the indebted
 
 5 person, shall withhold one-quarter of the salary, wages, or
 
 6 compensation due the indebted person and pay the same, from time
 
 7 to time as the same shall become due, to the officer charged with
 
 8 the duty of collecting the indebtedness, until the full amount of
 
 9 the indebtedness, together with penalties and interest thereon,
 
10 is paid.
 
11      (b)  If the indebtedness has arisen or been incurred by
 
12 reason of the indebted officer, agent, employee, or other person
 
13 having embezzled, stolen, or otherwise unlawfully acquired any
 
14 moneys or other property of [the State, any county, or any
 
15 independent board or commission,] a jurisdiction, the whole
 
16 amount of the salary, wages, or compensation, or so much thereof
 
17 as may be required to pay the indebtedness in full, shall be
 
18 withheld and paid over to the officer charged with the duty of
 
19 collecting the indebtedness.
 
20      (c)  The officer, agent, employee or other person in the
 
21 service of [the State, any county, or any independent board or
 
22 commission] a jurisdiction alleged to be indebted to the [State,
 
23 any county, or to any independent board or commission]
 

 
Page 90                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 jurisdiction may waive the right to a hearing to determine the
 
 2 indebtedness and instead assign by contract to the officer
 
 3 charged with the duty of collecting debts:
 
 4      (1)  The priority right to payment of the total amount of
 
 5           the alleged indebtedness; and
 
 6      (2)  The right of the officer to deduct from each and every
 
 7           periodic payment normally due the assignor an amount
 
 8           equal to the maximum legally permissible amount
 
 9           deductible under garnishment law until the total amount
 
10           owing is paid in full.
 
11      For purposes of this section, a person shall be deemed to
 
12 waive the hearing if the person fails to request a hearing within
 
13 fifteen days from the date the person was notified of the
 
14 indebtedness and the opportunity to request a hearing.
 
15      (d)  The operation of all garnishment process served upon
 
16 the comptroller or other [paying] disbursing officer shall be
 
17 stayed until the indebtedness has been fully paid.
 
18      (e)  [If the indebtedness has occurred as a result of salary
 
19 or wage overpayment, the comptroller or other officer shall
 
20 determine the amount of indebtedness and notify the employee in
 
21 writing of the indebtedness.  If the employee contests the
 
22 comptroller or other officer's determination of indebtedness, the
 
23 employee may request a hearing pursuant to chapter 91, and upon
 

 
Page 91                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 conclusion of the hearing or if the employee waives the hearing,
 
 2 if the indebtedness is equal to or less than $1,000, the
 
 3 comptroller or other officer shall immediately deduct from any
 
 4 subsequent periodic payment normally due the employee any amount
 
 5 up to the total amount of indebtedness.  For indebtedness greater
 
 6 than $1,000, the comptroller or other officer shall deduct:
 
 7      (1)  An amount agreed to by the employee and employer, but
 
 8           not less than $100 per pay period; or
 
 9      (2)  One-quarter of the salary, wages, or compensation due
 
10           the employee until the indebtedness is repaid in full.]
 
11      A salary or wage overpayment made to an employee or former
 
12 employee shall not be considered as indebtedness under this
 
13 section.  The comptroller or other disbursing officer of a
 
14 jurisdiction shall establish payroll overpayment procedures for
 
15 the expeditious recovery of the salary or wage overpayment.
 
16      For employees still in the service of the jurisdiction,
 
17 recovery shall commence at the next earliest pay date possible,
 
18 through payroll deduction in accordance with a salary offset
 
19 repayment schedule, if the employee has not agreed to a voluntary
 
20 repayment plan within prescribed time limits.
 
21      The comptroller or other disbursing officer of a
 
22 jurisdiction shall establish a salary offset repayment schedule
 
23 that may vary according to the overpayment amount or other
 

 
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 1 appropriate criteria.  Amounts in accordance with the schedule
 
 2 shall be deducted from any subsequent wages, salaries, or
 
 3 compensation due the employee until the overpayment amount is
 
 4 repaid in full, if the employee has not agreed to a voluntary
 
 5 repayment plan within prescribed time limits.  Whenever the
 
 6 salary offset repayment schedule is used, the employee shall be
 
 7 informed of the offset dates and amounts at least ten calendar
 
 8 days prior to making the first offset.
 
 9      The comptroller or other disbursing officer of a
 
10 jurisdiction shall also establish a method for the crediting of
 
11 interest on any moneys paid or recovered that are in excess of
 
12 the correct overpayment amount.  The interest shall be payable to
 
13 the employee if it is subsequently discovered that the
 
14 overpayment determination was in error.
 
15      Before any deductions are made to recover a salary or wage
 
16 overpayment, the appointing authority shall give the employee:
 
17      (1)  Written notice of the overpayment amount with an
 
18           explanation of how the overpayment amount was
 
19           determined.  A copy of the notice and explanation shall
 
20           also be given to the employee's exclusive
 
21           representative if required under a collective
 
22           bargaining agreement;
 
23      (2)  Opportunity to enter into a voluntary agreement to
 

 
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 1           repay the overpayment amount by cash, payroll
 
 2           deduction, or applying the value of appropriate leave
 
 3           or compensatory time credits available to the employee,
 
 4           or any combination thereof.  A voluntary repayment plan
 
 5           must be acceptable to and approved by the appointing
 
 6           authority or designee; and
 
 7      (3)  Opportunity to dispute the overpayment amount if the
 
 8           employee disagrees with the overpayment determination
 
 9           through the departmental complaint procedure; provided
 
10           that, if the employee is covered under a collective
 
11           bargaining agreement, the employee shall utilize the
 
12           contractual grievance procedure instead to dispute the
 
13           overpayment amount.
 
14      The appointing authority shall commence immediate recovery
 
15 of the overpayment amount, regardless of whether a dispute on the
 
16 overpayment amount is still pending, in accordance with the
 
17 employee's approved voluntary repayment plan or the salary offset
 
18 repayment schedule, as applicable.  If it is subsequently
 
19 discovered that any moneys repaid or recovered is in error, the
 
20 employee shall be refunded all moneys paid or recovered in excess
 
21 of the correct overpayment amount, including applicable interest
 
22 payable on the excess amount, and be re-credited any leave or
 
23 compensatory time credits that was applied in excess of the
 

 
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 1 correct overpayment amount.
 
 2      Any overpayment recovery procedures, including those
 
 3 contained in a collective bargaining agreement, that are not
 
 4 consistent with this subsection shall be repealed or amended as
 
 5 necessary to be consistent with this subsection and procedures
 
 6 established by the comptroller or other disbursing officer of the
 
 7 jurisdiction pursuant to this subsection."
 
 8      SECTION 80.  Section 78-13, Hawaii Revised Statutes, is
 
 9 amended as follows:
 
10      1.  By amending subsection (a) to read:
 
11      "(a)  [Unless otherwise provided by law, all] All officers
 
12 and employees shall be paid at least semimonthly except that
 
13 substitute teachers, part-time hourly rated teachers of adult and
 
14 evening classes, and other part- time, intermittent, or casual
 
15 employees may be paid once a month [and that the governor, upon
 
16 reasonable notice and upon determination that the payroll payment
 
17 basis should be converted from predicted payroll to after-the-
 
18 fact payroll, may allow a one-time once a month payroll payment
 
19 to all public officers and employees to effect a conversion to
 
20 after-the-fact payroll as follows:
 
21      (1)  The implementation of the after-the-fact payroll will
 
22           commence with the June 30, 1998, pay day, which will be
 
23           delayed to July 1, 1998;
 

 
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 1      (2)  The July 15, 1998, pay day will be delayed to July 17,
 
 2           1998;
 
 3      (3)  The July 31, 1998, pay day will be delayed to August 3,
 
 4           1998;
 
 5      (4)  The August 14, 1998, pay day will be delayed to
 
 6           August 19, 1998;
 
 7      (5)  The August 31, 1998, pay day will be delayed to
 
 8           September 4, 1998;
 
 9      (6)  The September 15, 1998, pay day will be delayed to
 
10           September 18, 1998; and
 
11      (7)  Thereafter, pay].  Pay days will be on the fifth and
 
12           the twentieth of every month.  If the fifth and the
 
13           twentieth fall on a state holiday, Saturday, or Sunday,
 
14           the pay day will be the immediately preceding weekday.
 
15 [The implementation of the after-the-fact payroll shall not be
 
16 subject to negotiation under chapter 89.]"
 
17      2.  By amending subsections (d) and (e) to read:
 
18      "(d)  The implementation of [subsections (b) and (c)] this
 
19 section shall not be subject to negotiation under chapter 89.
 
20      (e)  All employees, except those belonging to bargaining
 
21 units 5 and 7, hired [on or after July 1, 1998,] after June 30,
 
22 1998, shall be paid on the same pay dates and for the same pay
 
23 periods as non-salaried employees.  All employees belonging to
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 units 5 and 7, hired after June 30, 2000, shall be paid on the
 
 2 same pay dates and for the same pay periods as nonsalaried
 
 3 employees."
 
 4      SECTION 81.  Section 78-18.3, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "[[]§78-18.3[]]  Prohibition on certain increases in
 
 7 salaries for certain [state and county officers or] employees.
 
 8 Any law to the contrary notwithstanding, [neither the State nor
 
 9 any of the counties] a jurisdiction shall not provide or pay [to
 
10 the following state or county officers or employees] any
 
11 adjustment or increase in the [officer's or] employee's
 
12 respective salary or compensation where such adjustment or
 
13 increase constitutes a mandatory adjustment or increase which is,
 
14 directly or indirectly, dependent upon and related to negotiated
 
15 salary adjustments or increases received under collective
 
16 bargaining agreements by civil service or other public employees
 
17 covered by collective bargaining[:] to any [elected or appointed
 
18 officer or] employee [in the executive and judicial branches of
 
19 state government and the executive branch of any county
 
20 government] of a jurisdiction:
 
21      (1)  [whose] Whose salary or compensation is fixed, limited,
 
22           or otherwise specified by statute, ordinance, or other
 
23           legislative enactment whether or not in express dollar
 

 
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 1           amounts or express dollar amount ceilings;
 
 2      (2)  [who] Who is not subject to [chapters 76 and 77;]
 
 3           chapter 76; and
 
 4      (3)  [who] Who is excluded from collective bargaining and
 
 5           not subject to chapter 89C."
 
 6      SECTION 82.  Section 78-2.5, Hawaii Revised Statutes, is
 
 7 repealed.
 
 8      ["[§78-2.5]  Arrest record.  No applicant for employment by
 
 9 the State or any political subdivision or agency thereof shall be
 
10 required to answer, either orally or in writing, as a condition
 
11 precedent to employment, whether or not the applicant has been
 
12 arrested; provided that this shall not preclude any question
 
13 concerning any conviction of a crime or the arrest and other
 
14 circumstances pertaining to the conviction."]
 
15      SECTION 83.  Section 78-6, Hawaii Revised Statutes, is
 
16 repealed.
 
17      ["§78-6 Private employment or practice prohibited;
 
18 officers.  No full-time officer of the State or of the counties
 
19 or city and county may, during the officer's term of office,
 
20 engage in other gainful occupational employment or the private
 
21 practice of any profession."]
 
22      SECTION 84.  Section 78-14, Hawaii Revised Statutes, is
 
23 repealed.
 

 
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 1      ["§78-14  Salaries of employees during absence abroad.  No
 
 2 state or county officer or employee, except with the written
 
 3 approval of the governor or mayor, as the case may be, shall
 
 4 receive the officer's or employee's salary during an absence of
 
 5 more than two months from the State on official business.  Any
 
 6 state or county officer or employee who, at the request of the
 
 7 officer's or employee's department head, acting with the written
 
 8 approval of the governor or mayor, as the case may be, goes
 
 9 abroad from the State and engages in research work, or makes a
 
10 survey for the benefit of the government employing the officer or
 
11 employee, shall be considered to be on official business, and
 
12 shall receive, while absent from the State, the officer's or
 
13 employee's regular compensation as provided by law."]
 
14      SECTION 85.  Section 78-15, Hawaii Revised Statutes, is
 
15 repealed.
 
16      ["§78-15  Traveling expenses of state officials.  A state
 
17 official or representative while traveling abroad on state
 
18 official business shall be allowed $60 a day, except for
 
19 interisland travel which shall be $45 a day, which amount is to
 
20 cover all personal expenses, such as board, lodging, etc., but
 
21 not fares for transportation; provided that a rate in excess of
 
22 $45 a day for interisland travel and $60 a day for other travel
 
23 abroad may be allowed, but neither for more than $65 a day, upon
 

 
Page 99                                                    2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 application to and approval by the governor.  The comptroller
 
 2 shall issue a warrant payable to the official for the purpose, at
 
 3 the authorized rate, from the date of the official's departure to
 
 4 the date of the official's return upon being furnished by the
 
 5 official with a certified statement setting forth the time of
 
 6 absence."]
 
 7      SECTION 86.  Section 78-16, Hawaii Revised Statutes, is
 
 8 repealed.
 
 9      ["§78-16  Payment of traveling expenses from special fund,
 
10 prohibited when.  No expenditure for traveling abroad on official
 
11 business of the State by any officer or employee shall be made
 
12 from any special fund without the prior authorization of the
 
13 governor."]
 
14      SECTION 87.  Section 78-17, Hawaii Revised Statutes, is
 
15 repealed.
 
16      ["§78-17  Payment of salaries or wages upon termination of
 
17 service.  Whenever in any case, and for whatever cause, the
 
18 employment of any officer, agent, employee, or other person in
 
19 the public service is terminated, he shall be paid immediately
 
20 upon the approval of the head of the department in which he was
 
21 engaged whatever salary or wages that are due him."]
 
22      SECTION 88.  Section 78-19, Hawaii Revised Statutes, is
 
23 repealed.
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      ["§78-19  Safety equipment.  Each department or agency of
 
 2 the State and its political subdivisions shall furnish its
 
 3 employees with safety equipment when such equipment is required
 
 4 in connection with the employees' official duties by the codes
 
 5 and rules and regulations of the department of labor and
 
 6 industrial relations.  The cost of such equipment shall be a
 
 7 proper charge against the funds of the department or agency and
 
 8 the respective political subdivisions, as the case may be,
 
 9 furnishing such equipment.  Except in the case of gross
 
10 negligence on the part of the employee losing or damaging such
 
11 equipment, lost or damaged safety equipment and equipment worn
 
12 out through wear and tear shall be replaced by the department or
 
13 agency, or the respective political subdivisions, as the case may
 
14 be.
 
15      No employee shall be required to operate a motor vehicle
 
16 which is deemed unsafe.  If an employee demonstrates that a motor
 
17 vehicle which he has been directed to operate is unsafe, he or
 
18 his employee representatives and his department head shall
 
19 mutually agree upon the appointment of a third party qualified to
 
20 evaluate the safety of motor vehicles to determine the safety of
 
21 said motor vehicle.  The decision of the third party shall be
 
22 final and binding upon the parties.  If the third party decides
 
23 that the motor vehicle is unsafe, the employee shall not be
 

 
Page 101                                                   2859
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 1 required to operate such motor vehicle.  On the other hand, if
 
 2 the motor vehicle is deemed safe by the third party, the employee
 
 3 may be required to operate the vehicle."]
 
 4      SECTION 89.  Section 78-22, Hawaii Revised Statutes, is
 
 5 repealed.
 
 6      ["[§78-22]  Uniform of institution employee; reimbursement
 
 7 for damage.  Any other law, including section 37-77, to the
 
 8 contrary notwithstanding, any employee of a public institution
 
 9 responsible for the care of patients or inmates shall, upon proof
 
10 of loss in such manner as prescribed by the director of finance
 
11 of the State in the case of state employees, or the director of
 
12 finance of the respective counties, in the case of county
 
13 employees, be reimbursed for the repair or replacement of the
 
14 employee's uniform or clothing worn on duty and damaged by the
 
15 patients or inmates of the institution where the employee is
 
16 employed, not to exceed the sum of $50 per employee per year."]
 
17      SECTION 90.  Section 78-51, Hawaii Revised Statutes, is
 
18 repealed.
 
19      ["§78-51  Applicability of chapter to the judiciary and the
 
20 Hawaii health systems corporation.  All of the provisions of this
 
21 chapter apply with equal force to the judiciary and the Hawaii
 
22 health systems corporation as to the State.  The powers and
 
23 duties assigned in this chapter shall, with respect to the
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 judiciary, be assigned to the chief justice of the supreme court
 
 2 in the place and stead of the governor or chief executive officer
 
 3 for the State, and to the administrative director of the courts
 
 4 in the place and stead of the director of human resources
 
 5 development.  The powers and duties assigned in this chapter,
 
 6 with respect to the Hawaii health systems corporation, shall be
 
 7 assigned to the chief executive officer of the Hawaii health
 
 8 systems corporation in the place and stead of the governor or
 
 9 chief executive officer for the State, and to the Hawaii health
 
10 systems chief executive officer's designee in the place and stead
 
11 of the director of human resources development."]
 
12      SECTION 91.  Section 78-61, Hawaii Revised Statutes, is
 
13 repealed.
 
14      ["[§78-61]  Establishment.  The employees of the State shall
 
15 be afforded the opportunity to participate in a wage and salary
 
16 reduction benefit program which qualifies as a cafeteria plan
 
17 within the meaning of section 125 of the Internal Revenue Code of
 
18 1986, as amended.  The cafeteria plan shall allow eligible
 
19 employees to elect to reduce their pretax compensation in return
 
20 for payment by the State of the expenses of eligible benefits.
 
21 As used in this part, "employee" shall be as defined in section
 
22 87-1."]
 
23      SECTION 92.  Section 78-62, Hawaii Revised Statutes, is
 

 
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 1 repealed.
 
 2      ["[§78-62]  Responsible agency; rules.  The governor shall
 
 3 assign the responsibility for the implementation and operation of
 
 4 the cafeteria plan to the appropriate department or agency, and
 
 5 the department or agency shall adopt rules pursuant to chapter 91
 
 6 necessary to implement this part.  The rules shall specify
 
 7 eligible employees, eligible expenses, effective dates, and other
 
 8 matters necessary to implement this part."]
 
 9                              PART IV
 
10      SECTION 93.  Chapter 89, Hawaii Revised Statutes, is amended
 
11 by adding a new section to be appropriately designated and to
 
12 read as follows:
 
13      "§89-A  Jurisdictional flexibility; subunits and employers
 
14 established for negotiations.  (a)  To provide greater
 
15 flexibility in negotiations to address jurisdictional needs and
 
16 concerns, the following subunits shall be established within
 
17 multi-jurisdictional appropriate bargaining units (1), (2), (3),
 
18 (4), (9), (10), (11), (12) and (13), to the extent applicable, as
 
19 follows:
 
20      (1)  Employees of the State;
 
21      (2)  Employees of the Judiciary;
 
22      (3)  Employees of the University of Hawaii;
 
23      (4)  Employees of the Hawaii health system corporation;
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (5)  Employees of the city and county of Honolulu; 
 
 2      (6)  Employees of the county of Hawaii;
 
 3      (7)  Employees of the county of Maui; and
 
 4      (8)  Employees of the county of Kauai.
 
 5      (b)  Except for sections 89-6 and 89-7, wherever reference
 
 6 is made to "appropriate bargaining unit," it shall also mean each
 
 7 subunit that is authorized to negotiate, reach an agreement,
 
 8 arrive at an impasse, and execute a collective bargaining
 
 9 agreement independently of any other subunit within the
 
10 appropriate bargaining unit.  Each subunit's collective
 
11 bargaining agreement shall include the wages, hours, benefits,
 
12 and other terms and conditions of employment for all employees in
 
13 that subunit.
 
14      (c)  For purposes of negotiations, the public employer of a
 
15 subunit means the governor, the chief justice of the supreme
 
16 court, the board of regents, the mayor, or the Hawaii health
 
17 systems corporation board, as applicable.
 
18      (d)  For purposes of negotiations, the public employer for
 
19 units (5) and (6) means the governor together with the board of
 
20 education.  The governor shall be entitled to three votes and the
 
21 board shall have two votes.  The votes to which the governor or
 
22 board is entitled may be assigned to their designated
 
23 representatives.  Any decision to be reached by the applicable
 

 
Page 105                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 employer group shall be on the basis of a simple majority."
 
 2      SECTION 94.  Chapter 89, Hawaii Revised Statutes, is amended
 
 3 by adding a new section to be appropriately designated and to
 
 4 read as follows:
 
 5      "§89-B  Contracts for services.  Any jurisdiction may
 
 6 contract with the office of collective bargaining and managed
 
 7 competition or with another jurisdiction, for the provision of
 
 8 all or a portion of the services necessary for purposes of
 
 9 negotiations under chapter 89."
 
10      SECTION 95.  Section 89-1, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§89-1  Statement of findings and policy.  (a)  The
 
13 legislature finds that joint decision-making is the modern way of
 
14 administering government.  Where public employees have been
 
15 granted the right to share in the decision-making process
 
16 affecting wages and working conditions, they have become more
 
17 responsive and better able to exchange ideas and information on
 
18 operations with their administrators.  Accordingly, government is
 
19 made more effective.  The legislature further finds that the
 
20 enactment of positive legislation establishing guidelines for
 
21 public employment relations is the best way to harness and direct
 
22 the energies of public employees eager to have a voice in
 
23 determining their conditions of work[,]; to provide a rational
 

 
Page 106                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 method for dealing with disputes and work stoppages[,]; and to
 
 2 maintain a favorable political and social environment.
 
 3      (b)  The legislature declares that it is the public policy
 
 4 of the State to promote harmonious and cooperative relations
 
 5 between government and its employees and to protect the public by
 
 6 assuring effective and orderly operations of government.  These
 
 7 policies are best effectuated by:
 
 8      (1)  [recognizing] Recognizing the right of public employees
 
 9           to organize for the purpose of collective
 
10           bargaining[,];
 
11      (2)  [requiring the] Requiring public employers to negotiate
 
12           with and enter into written agreements with exclusive
 
13           representatives on matters of wages, hours, benefits,
 
14           and other conditions of employment, while, at the same
 
15           time, [(3)] maintaining the merit [principles]
 
16           principle and the principle of equal pay for equal work
 
17           [among state and county employees pursuant to sections
 
18           76-1, 76-2, 77-31, and 77-33,] within each
 
19           jurisdiction; and [(4) creating]
 
20      (3)  Creating a labor relations board to administer the
 
21           provisions of chapters 89 and 377."
 
22      SECTION 96.  Section 89-2, Hawaii Revised Statutes, is
 
23 amended as follows:
 

 
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 1      1.  By adding a new definition to be appropriately inserted
 
 2 and to read:
 
 3      ""Jurisdiction" means the State, the city and county of
 
 4 Honolulu, the county of Hawaii, the county of Maui, and the
 
 5 county of Kauai, the judiciary, the department of education, the
 
 6 University of Hawaii, and the Hawaii health systems corporation."
 
 7      2.  By amending the definitions of "appropriate bargaining
 
 8 unit", "arbitration", "collective bargaining", "cost items",
 
 9 "employee" or "public employee", "employee organization",
 
10 "employer" or "public employer", and "impasse" to read:
 
11      ""Appropriate bargaining unit" or "bargaining unit" means
 
12 the unit designated [to be] as appropriate [for the purpose of
 
13 collective bargaining] pursuant to section 89-6[.] for
 
14 representation purposes, which may have subunits established
 
15 under section 89-A for purposes of negotiations when there are
 
16 employees from more than one jurisdiction.
 
17      "Arbitration" means the procedure whereby [parties involved
 
18 in an impasse mutually agree to submit their differences to a
 
19 third party for a final and binding decision.] an employer and an
 
20 exclusive representative submit their unresolved differences to a
 
21 neutral third party for a decision.  It includes a "med-arb"
 
22 procedure in which a neutral third party serves as mediator and
 
23 arbitrator and the items not resolved in mediation are subject to
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 an arbitration decision by a mediator-arbitrator.
 
 2      "Collective bargaining" means the performance of the mutual
 
 3 obligations of [the public] an employer and [the] an exclusive
 
 4 representative to meet at reasonable times, to confer and
 
 5 negotiate in good faith, and to execute a written agreement with
 
 6 respect to wages, hours, [amounts] the per capita dollar amount
 
 7 of contributions by the [State and counties] jurisdiction to the
 
 8 Hawaii public employees health fund, benefits, and other terms
 
 9 and conditions of employment[, except that by any such obligation
 
10 neither party shall be compelled to agree to a proposal, or be
 
11 required to make a concession].  These obligations do not compel
 
12 either party to agree to a proposal or require either party to
 
13 make a concession.
 
14      "Cost items" includes wages, hours, [amounts] the per capita
 
15 dollar amount of contributions by the [State and counties]
 
16 jurisdiction to the Hawaii public employees health fund,
 
17 benefits, and other terms and conditions of employment[, the
 
18 implementation of which requires] that require an appropriation
 
19 by a legislative body.
 
20      "Employee" or "public employee" means any person employed by
 
21 a public employer, except elected and appointed officials and
 
22 [such] other employees [as may be] that are excluded from
 
23 coverage in section 89-6(c).
 

 
Page 109                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      "Employee organization" means any organization of any kind
 
 2 in which public employees participate and which exists for the
 
 3 primary purpose of dealing with public employers concerning
 
 4 grievances, labor disputes, wages, hours, [amounts] the per
 
 5 capita dollar amount of contributions by the [State and counties]
 
 6 jurisdictions to the Hawaii public employees health fund,
 
 7 benefits, and other terms and conditions of employment of public
 
 8 employees.
 
 9      "Employer" or "public employer" means the governor in the
 
10 case of the State, the respective mayors in the case of the [city
 
11 and county of Honolulu and the] counties [of Hawaii, Maui, and
 
12 Kauai], the chief justice of the supreme court in the case of the
 
13 judiciary, the board of education in the case of the department
 
14 of education, [and] the board of regents in the case of the
 
15 University of Hawaii, the Hawaii health systems corporation board
 
16 in the case of the Hawaii health systems corporation, and any
 
17 individual who represents one of these employers or acts in their
 
18 interest in dealing with public employees.  [In the case of the
 
19 judiciary, the governor shall be the employer for the purposes of
 
20 this chapter.]
 
21      "Impasse" means failure of a public employer and an
 
22 exclusive representative to achieve agreement in the course of
 
23 [negotiations.] collective bargaining.  It includes any
 

 
Page 110                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 declaration by the board under section 89-11."
 
 2      SECTION 97.  Section 89-3, Hawaii Revised Statutes, is
 
 3 amended to read as follows:
 
 4      "§89-3  Rights of employees.  Employees shall have the right
 
 5 of self-organization and the right to form, join, or assist any
 
 6 employee organization for the purpose of bargaining collectively
 
 7 through representatives of their own choosing on questions of
 
 8 wages, hours, benefits, and other terms and conditions of
 
 9 employment, and to engage in lawful, concerted activities for the
 
10 purpose of collective bargaining or other mutual aid or
 
11 protection, free from interference, restraint, or coercion.  An
 
12 employee shall have the right to refrain from any or all of such
 
13 activities, except [to the extent of making such payment of
 
14 amounts] for having a payroll deduction equivalent to regular
 
15 dues to an exclusive representative as provided in section 89-4."
 
16      SECTION 98.  Section 89-5, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§89-5  Hawaii labor relations board.(a)  There is created
 
19 a Hawaii labor relations board which shall serve in the public's
 
20 best interest to ensure that collective bargaining is conducted
 
21 in accordance with this chapter and that the merit principle and
 
22 the principle of equal pay for equal work within a jurisdiction
 
23 are maintained.
 

 
Page 111                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (b)  The board shall be composed of three members of which
 
 2 (1) one member shall be representative of management, (2) one
 
 3 member shall be representative of labor, and (3) the third
 
 4 member, the chairperson, shall be representative of the public[.]
 
 5 and shall have experience in public sector employment laws.  All
 
 6 members shall be appointed by the governor for terms of six years
 
 7 each.  Public employers and employee organizations representing
 
 8 public employees may submit to the governor for consideration
 
 9 names of persons [representing their interests] to serve as
 
10 members of the board and the governor shall first consider these
 
11 persons in selecting the members of the board [to represent
 
12 management and labor].
 
13      (c)  Each member shall hold office until the member's
 
14 successor is appointed and qualified.  Because cumulative
 
15 experience and continuity in office are essential to the proper
 
16 administration of this chapter, it is declared to be in the
 
17 public interest to continue board members in office as long as
 
18 efficiency is demonstrated, notwithstanding the provision of
 
19 section 26-34, which limits the appointment of a member of a
 
20 board or commission to two terms.
 
21      (d)  The members shall devote full time to their duties as
 
22 members of the board.  Effective January 1, 1989, and January 1,
 
23 1990, the salary of the chairperson of the board shall be set by
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the governor within the range from $69,748 to $74,608 and $72,886
 
 2 to $77,966 a year, respectively, and the salary of each of the
 
 3 other members shall be ninety-five per cent of the chairperson's
 
 4 salary.  No member shall hold any other public office or be in
 
 5 the employment of the State or a county, or any department or
 
 6 agency thereof, or any employee organization during the member's
 
 7 term.
 
 8      (e)  Any action taken by the board shall be by a simple
 
 9 majority of the members of the board.  All decisions of the board
 
10 shall be reduced to writing and shall state separately its
 
11 finding of fact and conclusions.  Any vacancy in the board shall
 
12 not impair the authority of the remaining members to exercise all
 
13 the powers of the board.  The governor may appoint an acting
 
14 member of the board during the temporary absence from the State
 
15 or the illness of any regular member.  An acting member, during
 
16 the acting member's term of service, shall have the same powers
 
17 and duties as the regular member.
 
18      (f)  The chairperson of the board shall be responsible for
 
19 the administrative functions of the board.  The board may appoint
 
20 an executive officer, mediators, members of fact-finding boards,
 
21 arbitrators, and hearing officers, and employ other assistants as
 
22 it may deem necessary in the performance of its functions,
 
23 prescribe their duties, and fix their compensation and provide
 

 
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                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 for reimbursement of actual and necessary expenses incurred by
 
 2 them in the performance of their duties within the amounts made
 
 3 available by appropriations therefor.  Section 103D-209(b)
 
 4 notwithstanding, an attorney employed by the board as a full-time
 
 5 staff member may represent the board in litigation, draft legal
 
 6 documents for the board, and provide other necessary legal
 
 7 services to the board and shall not be deemed to be a deputy
 
 8 attorney general.
 
 9      (g)  The board shall be within the department of labor and
 
10 industrial relations for budgetary and administrative purposes
 
11 only.  [The] All members of the board and employees other than
 
12 clerical and stenographic employees shall be exempt from chapters
 
13 76[, 77,] and 89.  Clerical and stenographic employees shall be
 
14 appointed in accordance with [chapters 76 and 77.] chapter 76.
 
15      (h)  At the close of each fiscal year, the board shall make
 
16 a written report to the governor [of such facts as it may deem
 
17 essential to describe] on its activities, including the cases and
 
18 their dispositions, and the names, duties, and salaries of its
 
19 officers and employees.  Copies of the report shall be
 
20 transmitted to the [legislative bodies.] other chief executives,
 
21 the exclusive representatives, and the legislative body of each
 
22 jurisdiction.
 
23      [(b)] (i)  In addition to the powers and functions provided
 

 
Page 114                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 in other sections of this chapter, the board shall:
 
 2      (1)  Establish procedures for, investigate, and resolve, any
 
 3           dispute concerning the designation of an appropriate
 
 4           bargaining unit and the application of section 89-6 to
 
 5           specific employees and positions;
 
 6     [(2)  Resolve any dispute concerning cost items;
 
 7      (3)] (2)  Establish procedures for, resolve disputes with
 
 8           respect to, and supervise the conduct of, elections for
 
 9           the determination of employee representation;
 
10      (3)  Resolve controversies under this chapter in the
 
11           public's best interest in consideration of the
 
12           requirements to:
 
13           (A)  Maintain a civil service system based on the merit
 
14                principle and the principle of equal pay for equal
 
15                work within a jurisdiction;
 
16           (B)  Ensure public employees' right to bargain
 
17                collectively are protected to the extent it does
 
18                not interfere with the public employer's rights
 
19                and obligations; and
 
20           (C)  Preserve any authority retained by the state
 
21                legislature, whether through the exclusion of
 
22                matters from negotiations, setting limitations on
 
23                negotiable matters, or requiring that negotiable
 

 
Page 115                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1                matters be submitted to the respective legislative
 
 2                bodies for approval;
 
 3      (4)  Conduct proceedings on complaints of prohibited
 
 4           practices by employers, employees, and employee
 
 5           organizations and take such actions with respect
 
 6           thereto as it deems necessary and proper;
 
 7      (5)  Hold such hearings and make such inquiries, as it deems
 
 8           necessary, to carry out properly its functions and
 
 9           powers, and for the purpose of such hearings and
 
10           inquiries, administer oaths and affirmations, examine
 
11           witnesses and documents, take testimony and receive
 
12           evidence, compel attendance of witnesses and the
 
13           production of documents by the issuance of subpoenas,
 
14           and delegate such powers to any member of the board or
 
15           any person appointed by the board for the performance
 
16           of its functions;
 
17      (6)  [Establish,] Determine qualifications and establish,
 
18           after reviewing nominations submitted by the public
 
19           employers and employee organizations, lists of
 
20           qualified persons, broadly representative of the
 
21           public, to be available to serve as mediators, members
 
22           of fact-finding boards, or arbitrators;
 
23      (7)  Establish a fair and reasonable range of daily or
 

 
Page 116                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           hourly rates at which mediators, members of fact-
 
 2           finding boards, and arbitrators [serving pursuant to
 
 3           section 89-11(b)(3)] on the lists established under
 
 4           paragraph (6) are to be compensated [and apportion the
 
 5           costs of arbitration to the parties involved];
 
 6      (8)  Conduct studies on problems pertaining to public
 
 7           employee-management relations, and make recommendations
 
 8           with respect thereto to the legislative bodies; request
 
 9           information and data from state and county departments
 
10           and agencies and employee organizations necessary to
 
11           carry out its functions and responsibilities; make
 
12           available to [employee organizations, as may exist,]
 
13           all concerned parties, including mediators, members of
 
14           fact-finding boards, and arbitrators, [and other
 
15           concerned parties] statistical data relating to wages,
 
16           benefits, and employment practices in public and
 
17           private employment to assist them in resolving issues
 
18           in negotiations; [and]
 
19      (9)  Adopt rules relative to the exercise of its powers and
 
20           authority and to govern the proceedings before it in
 
21           accordance with chapter 91[.]; and
 
22     (10)  Execute all of its responsibilities in a timely manner
 
23           so as to facilitate and expedite the resolution of
 

 
Page 117                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           issues before it.
 
 2      (j)  For the purpose of minimizing travel and per diem
 
 3 expenses for parties who are not located on Oahu, the board shall
 
 4 utilize more cost efficient means such as teleconferencing that
 
 5 does not require appearances on Oahu, whenever practicable, to
 
 6 conduct its proceedings.  Alternatively, it shall consider
 
 7 conducting its proceedings on another island whenever it is more
 
 8 cost efficient in consideration of the parties and the witnesses
 
 9 involved."
 
10      SECTION 99.  Section 89-6, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§89-6  Appropriate bargaining units.(a)  All employees
 
13 throughout the State within any of the following categories shall
 
14 constitute an appropriate bargaining unit:
 
15      (1)  Nonsupervisory employees in [blue-collar] blue collar
 
16           positions;
 
17      (2)  Supervisory employees in [blue-collar] blue collar
 
18           positions;
 
19      (3)  Nonsupervisory employees in [white-collar] white collar
 
20           positions;
 
21      (4)  Supervisory employees in [white-collar] white collar
 
22           positions;
 
23      (5)  Teachers and other personnel of the department of
 

 
Page 118                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           education under the same [salary] pay schedule,
 
 2           including part-time employees working less than twenty
 
 3           hours a week who are equal to one-half of a full-time
 
 4           equivalent;
 
 5      (6)  Educational officers and other personnel of the
 
 6           department of education under the same [salary] pay
 
 7           schedule;
 
 8      (7)  Faculty of the University of Hawaii and the community
 
 9           college system;
 
10      (8)  Personnel of the University of Hawaii and the community
 
11           college system, other than faculty;
 
12      (9)  Registered professional nurses;
 
13     (10)  Institutional, health, and correctional workers;
 
14     (11)  Firefighters;
 
15     (12)  Police officers; and
 
16     (13)  Professional and scientific employees, [other than
 
17           registered professional nurses.] who can not be
 
18           included in any of the other bargaining units.
 
19      (b)  Because of the nature of work involved and the
 
20 essentiality of certain occupations that require specialized
 
21 training, [units (9) through (13) are designated as optional
 
22 appropriate bargaining units.  Employees in any of these optional
 
23 units may vote either for separate units or for inclusion in
 

 
Page 119                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 their respective units (1) through (4).  If a majority of the
 
 2 employees in any optional unit desire to constitute a separate
 
 3 appropriate bargaining unit, supervisory employees may be
 
 4 included in the unit by mutual agreement among supervisory and
 
 5 nonsupervisory employees within the unit; if supervisory
 
 6 employees are excluded, the appropriate bargaining unit for these
 
 7 supervisory employees shall be (2) or (4), as the case may be.]
 
 8 supervisory employees who are eligible for inclusion in units (9)
 
 9 through (13) shall be included in units (9) through (13),
 
10 respectively, instead of units (2) or (4).
 
11      (c)  The [compensation plans for blue-collar positions
 
12 pursuant to section 77-5 and for white-collar positions pursuant
 
13 to section 77-13, the salary schedules for teachers pursuant to
 
14 section 302A-624 and for educational officers pursuant to section
 
15 302A-625, and the appointment and classification of faculty
 
16 pursuant to sections 304-11 and 304-13, existing on July 1,
 
17 1970,] classification systems of each jurisdiction shall be the
 
18 bases for differentiating [blue-collar] blue collar from [white-
 
19 collar] white collar employees, professional from institutional,
 
20 health and correctional workers, supervisory from nonsupervisory
 
21 employees, teachers from educational officers, and faculty from
 
22 nonfaculty.  In differentiating supervisory from nonsupervisory
 
23 employees, class titles alone shall not be the basis for
 

 
Page 120                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 determination[, but, in addition, the].  The nature of the work,
 
 2 including whether [or not] a major portion of the working time of
 
 3 a supervisory employee is spent as part of a crew or team with
 
 4 nonsupervisory employees, shall [also] be considered[.] also.
 
 5      [(b)  For the purpose of negotiations, the public employer
 
 6 of an appropriate bargaining unit shall mean the governor or the
 
 7 governor's designated representatives of not less than three
 
 8 together with not more than two members of the board of education
 
 9 in the case of units (5) and (6), the governor or the governor's
 
10 designated representatives of not less than three together with
 
11 not more than two members of the board of regents of the
 
12 University of Hawaii in the case of units (7) and (8), and the
 
13 governor or the governor's designated representatives together
 
14 with the mayors of all the counties or their designated
 
15 representatives in the case of the remaining units.  The
 
16 designated employer representatives for units (5), (6), (7), and
 
17 (8) shall each have one vote and in the case of the remaining
 
18 units, the governor shall be entitled to four votes and the mayor
 
19 of each county shall each have one vote, which may be assigned to
 
20 their designated representatives.  Any decision to be reached by
 
21 the applicable employer group shall be on the basis of simple
 
22 majority.
 
23      (c)  No elected] (d)  The following individuals shall not be
 

 
Page 121                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 included in any appropriate bargaining unit or be entitled to
 
 2 coverage under this part:
 
 3      (1)  Elected or appointed official[, member];
 
 4      (2)  Member of any board or commission[, representative];
 
 5      (3)  Representative of a public employer, including the
 
 6           administrative officer, director, or chief of a state
 
 7           or county department or agency, or any major division
 
 8           thereof, as well as any first deputy, first assistant,
 
 9           legal counsel, and other top-level managerial and
 
10           administrative personnel[, secretary];
 
11      (4)  Secretary to top-level managerial and administrative
 
12           personnel[, individual] under paragraph (3);
 
13      (5)  Individual concerned with confidential matters
 
14           affecting employee-employer relations[, part-time];
 
15      (6)  Part-time employee working less than twenty hours per
 
16           week, except part-time employees included in unit (5)[,
 
17           temporary];
 
18      (7)  Temporary employee of three months' duration or less[,
 
19           employee];
 
20      (8)  Employee of the executive office of the governor[,] or
 
21           a household employee at Washington Place[, employee];
 
22      (9)  Employee of the executive office of the lieutenant
 
23           governor;
 

 
Page 122                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1     (10)  Employee of the executive office of the mayor[, staff];
 
 2     (11)  Staff of the legislative branch of the State[, employee
 
 3           of the executive office of the lieutenant governor,
 
 4           inmate,];
 
 5     (12)  Staff of the legislative branches of the counties,
 
 6           except employees of the clerks' offices of the
 
 7           counties;
 
 8     (13)  Any commissioned and enlisted personnel of the Hawaii
 
 9           national guard;
 
10     (14)  Inmate, kokua, patient, ward or student of a state
 
11           institution[, student];
 
12     (15)  Student help[, any commissioned and enlisted personnel
 
13           of the Hawaii national guard, or staff of the
 
14           legislative branches of the city and county of Honolulu
 
15           and counties of Hawaii, Maui, and Kauai, except
 
16           employees of the clerks' offices of said city and
 
17           county and counties, shall be included in any
 
18           appropriate bargaining unit or entitled to coverage
 
19           under this chapter.]; or
 
20     (16)  Staff of the board.
 
21      [(d)] (e)  Where any controversy arises under this section,
 
22 the board shall, pursuant to chapter 91, make an investigation
 
23 and, after a hearing upon due notice, make a final determination
 

 
Page 123                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 on the applicability of this section to specific [positions and]
 
 2 individuals, employees[.], or positions."
 
 3      SECTION 100.  Section 89-7, Hawaii Revised Statutes, is
 
 4 amended to read as follows:
 
 5      "§89-7  Elections.(a)  Whenever[,] in accordance with
 
 6 [regulations as may be] rules prescribed by the board pursuant to
 
 7 chapter 91, a petition is filed by an employee organization to
 
 8 determine whether or by which organization employees desire to be
 
 9 represented for the purpose of collective bargaining, the board
 
10 shall conduct an investigation and may conduct an election where
 
11 appropriate as specified herein.  A petition to decertify or to
 
12 change the exclusive bargaining representative must be supported
 
13 by fifty per cent of employees in an appropriate bargaining unit,
 
14 through verifiable written proof of the names and signatures of
 
15 employees.  Signatures of employees supporting such a petition
 
16 must be obtained within two months of the date of the petition to
 
17 be valid with the board.  In its investigation of the showing of
 
18 interest, the board shall afford all interested parties a
 
19 contested case hearing.
 
20      (b)  In any election [in which] where none of the choices on
 
21 the ballot receives a majority of the votes cast, a runoff
 
22 election shall be conducted[,] with the ballot providing for a
 
23 selection between the two choices receiving the largest number of
 

 
Page 124                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 valid votes cast in the election.
 
 2      (c)  The board shall certify [the results of the] election[,
 
 3 and where an] results and the employee organization [receives]
 
 4 receiving a majority of the votes cast[, the board] by employees
 
 5 in an appropriate bargaining unit shall [certify the employee
 
 6 organization] be certified as the exclusive representative of all
 
 7 employees in [the appropriate bargaining] that unit for the
 
 8 purpose of collective bargaining.  The employee organization
 
 9 shall remain certified as the exclusive representative until it
 
10 is replaced by another employee organization, decertified, or
 
11 dissolved.
 
12      (d)  Whenever two or more employee organizations certified
 
13 as exclusive representatives enter into an agreement for common
 
14 administration or operation of their affairs, all rights and
 
15 duties of the employee organizations as exclusive representatives
 
16 shall inure to and shall be discharged by the organization
 
17 resulting from the merger, combination, amalgamation, or
 
18 agreement, either alone or with the employee organizations.
 
19 Election by the employees in the appropriate bargaining units
 
20 involved and certification by the board of the resulting employee
 
21 organization shall not be required.
 
22      [(c)] (e)  No election shall be directed by the board in any
 
23 appropriate bargaining unit within which (1) a valid election has
 

 
Page 125                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 been held in the preceding twelve months; or (2) a valid
 
 2 collective bargaining agreement is in force and effect.
 
 3      [(d)] (f)  The board shall adopt rules [and regulations]
 
 4 consistent with this section governing the conduct of elections
 
 5 to determine representation, including the time, place, manner of
 
 6 notification, and reporting the results of elections, and the
 
 7 manner for filing any petition for an election [and] or a
 
 8 decertification election or [any petition] concerning the results
 
 9 of an election.  No mail ballots shall be permitted by the board
 
10 except when for reasonable cause a specific individual would
 
11 otherwise be unable to cast a ballot.  No names, addresses or
 
12 information regarding the work location of employees eligible to
 
13 vote shall be provided to employee organizations involved in an
 
14 election.  The board shall have the final determination on any
 
15 controversy concerning the eligibility of an employee to vote."
 
16      SECTION 101.  Section 89-9, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§89-9 Scope of negotiations[.]; consultation; grievance
 
19 procedures.  (a)  The employer and the exclusive representative
 
20 shall meet at reasonable times, including meetings sufficiently
 
21 in advance of the [employer's budget-making process,] time for an
 
22 impasse determination under section 89-11, and shall negotiate in
 
23 good faith with respect to wages, hours, [the number of
 

 
Page 126                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 incremental and longevity steps and movement between steps within
 
 2 the salary range,] benefits, the [amounts] specific per capita
 
 3 dollar amount of contributions by the [State and respective
 
 4 counties] jurisdiction to the Hawaii public employees health fund
 
 5 to the extent allowed in subsection [(e),] (f), and other terms
 
 6 and conditions of employment which are subject to negotiations
 
 7 under this chapter and which are to be embodied in a written
 
 8 agreement, or any question arising thereunder, but such
 
 9 obligation does not compel either party to agree to a proposal or
 
10 make a concession; provided that the parties may not negotiate
 
11 with respect to cost items as defined by section 89-2 for the
 
12 biennium 1999 to 2001, and the cost items of employees in
 
13 bargaining units under section 89-6 in effect on June 30, 1999,
 
14 shall remain in effect until July 1, 2001.
 
15      (b)  The employer or the exclusive representative desiring
 
16 to initiate negotiations shall notify the other party in writing,
 
17 setting forth the time and place of the meeting desired and
 
18 [generally] the nature of the business to be discussed, [and
 
19 shall mail the notice by certified mail to the last known address
 
20 of the other party] sufficiently in advance of the meeting.
 
21      (c)  Except as otherwise provided [herein,] in this chapter,
 
22 all matters affecting employee relations, including those that
 
23 are, or may be, the subject of a [regulation promulgated] rule
 

 
Page 127                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 adopted by the employer or any [personnel] director, [are] shall
 
 2 be subject to consultation with the exclusive representatives of
 
 3 the employees concerned.  The employer shall make every
 
 4 reasonable effort to consult with [the] exclusive representatives
 
 5 and consider their input, along with the input of other affected
 
 6 parties, prior to effecting changes in any major policy affecting
 
 7 employee relations.
 
 8      (d)  In the event of any controversy on whether the employer
 
 9 has met its obligation to negotiate or consult as required in
 
10 this section before making a change, the board shall consider the
 
11 conduct of both the employer and the exclusive representative.
 
12 The failure to reach mutual agreement after good faith
 
13 negotiations or dissatisfaction on the part of an exclusive
 
14 representative after consulting in good faith shall not prevent
 
15 the employer from implementing the change on which it negotiated
 
16 or consulted.  If negotiations or consultation did not transpire
 
17 because of the unwillingness or unreasonable delay on the part of
 
18 the exclusive representative, the employer may implement the
 
19 change by filing with the board the change together with a
 
20 statement of its good faith efforts to negotiate and consult on
 
21 the change.  The board shall not issue any order that prevents
 
22 the employer from making the change or requires the employer to
 
23 restore the status quo if the exclusive representative was
 

 
Page 128                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 notified of the change and was provided reasonable opportunity to
 
 2 negotiate or consult on the change.
 
 3      [(d)] (e)  Excluded from the subjects of negotiations are
 
 4 matters of classification [and], reclassification, recruitment,
 
 5 examination, initial pricing, benefits of but not the specific
 
 6 per capita dollar amount of contributions by the jurisdiction to
 
 7 the Hawaii public employees health fund, and retirement benefits
 
 8 except as provided in section 88-8(h)[, and the salary ranges now
 
 9 provided by law; provided that the number of incremental and
 
10 longevity steps, the amount of wages to be paid in each range and
 
11 step, and movement between steps within the salary range shall be
 
12 negotiable].  The employer and the exclusive representative shall
 
13 not agree to any proposal which would be inconsistent with the
 
14 merit [principles] principle or the principle of equal pay for
 
15 equal work within a jurisdiction pursuant to sections 76-1, and
 
16 76-2, [77-31, and 77-33,] or which would interfere with the
 
17 rights and obligations of a public employer to:
 
18      (1)  [direct] Direct employees;
 
19      (2)  [determine] Determine qualification, standards for
 
20           work, the nature and contents of examinations[, hire,];
 
21      (3)  Hire, promote, transfer, assign, and retain employees
 
22           in positions [and suspend,];
 
23      (4)  Suspend, demote, discharge, or take other disciplinary
 

 
Page 129                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           action against employees for proper cause; [(3)
 
 2           relieve]
 
 3      (5)  Relieve an employee from duties because of lack of work
 
 4           or other legitimate reason; [(4) maintain]
 
 5      (6)  Maintain efficiency of government operations; [(5)
 
 6           determine]
 
 7      (7)  Determine methods, means, and personnel by which the
 
 8           employer's operations are to be conducted; and [take]
 
 9      (8)  Take such actions as may be necessary to carry out the
 
10           missions of the employer in cases of emergencies[;
 
11           provided that the].
 
12      The employer and the exclusive representative may negotiate
 
13 procedures governing the promotion and transfer of employees to
 
14 positions within a bargaining unit[, procedures governing]; the
 
15 suspension, demotion, discharge or other disciplinary actions
 
16 taken against employees[, and procedures governing] within the
 
17 bargaining unit; and the layoff of employees[; provided further
 
18 that violations] within the bargaining unit.  Violations of the
 
19 procedures so negotiated may be [the] subject [of a] to the
 
20 grievance [process agreed to by the employer and the exclusive
 
21 representative.] procedure in the collective bargaining
 
22 agreement.
 
23      [(e)] (f)  Negotiations relating to contributions to the
 

 
Page 130                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 Hawaii public employees health fund shall be for the purpose of
 
 2 agreeing upon the [amounts which the State and counties] the per
 
 3 capita dollar amount the jurisdiction shall contribute under
 
 4 section 87-4, toward the payment of the costs for a health
 
 5 benefits plan, as defined in section 87-1(8), and group life
 
 6 insurance benefits, and the parties shall not be bound by the
 
 7 amounts contributed under prior agreements; provided that section
 
 8 89-11 for the resolution of disputes by way of fact-finding or
 
 9 arbitration shall not be available to resolve impasses or
 
10 disputes relating to the [amounts the State and counties] the per
 
11 capita dollar amount the jurisdiction shall contribute to the
 
12 Hawaii public employees health fund."
 
13      SECTION 102.  Section 89-10, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§89-10  Written agreements; [appropriations for] approval
 
16 and implementation[; enforcement].(a)  [Any collective]
 
17 Collective bargaining [agreement reached between the employer and
 
18 the exclusive representative] agreements shall be subject to
 
19 ratification by the employees concerned[.], except when the
 
20 agreement is reached pursuant to an arbitration decision.  The
 
21 agreement shall be reduced to writing and executed by both
 
22 parties.  [The agreement may contain] All provisions in the
 
23 agreement that are in conformance with this chapter, including a
 

 
Page 131                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

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

 
Page 132                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the public employer and the exclusive representative for each
 
 2 bargaining unit shall by mutual agreement include provisions in
 
 3 the] each collective bargaining agreement [for that bargaining
 
 4 unit for an] shall have a June 30 expiration date [which will be
 
 5 on June 30th of] in an odd-numbered year.
 
 6      [The parties may include provisions for the reopening date
 
 7 during the term of a collective bargaining agreement, provided
 
 8 that such provisions shall not allow for the reopening of cost
 
 9 items as defined in section 89-2.] The agreement may include
 
10 provisions for reopening if the duration of the agreement is for
 
11 more than two years.  Any cost items that are reopened shall be
 
12 subject to the same requirements as any other cost items.
 
13      [(d)] (c)  All existing rules and regulations adopted by the
 
14 employer, including civil service or other personnel regulations,
 
15 which are not contrary to this chapter, shall remain applicable.
 
16 If there is a conflict between the collective bargaining
 
17 agreement and any of the rules and regulations, the terms of the
 
18 agreement shall prevail; provided that the terms are not
 
19 inconsistent with section 89-9(d).
 
20      (d)  It is also in the public's best interest that the
 
21 legislative body of a jurisdiction consider cost items in
 
22 collective bargaining agreements for any biennium along with
 
23 requests for other operating funds for the same period.  A
 

 
Page 133                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 "biennium" means a period beginning July 1 of an odd-numbered
 
 2 year and ending two years later on June 30 of the next odd-
 
 3 numbered year.  Cost items shall be submitted for legislative
 
 4 approval separately for each biennium if an agreement is for more
 
 5 than two years.  To accomplish this objective, the legislative
 
 6 bodies shall establish and notify their respective chief
 
 7 executives, by February 1 of each even-numbered year, of the
 
 8 following:
 
 9      (1)  The date by which the chief executive shall be required
 
10           to submit all cost items for the biennium agreed to in
 
11           collective bargaining agreements.  This date shall
 
12           coincide with the due date for requests for operating
 
13           funds for the first year of the biennium and shall be
 
14           referred to as the "biennium submission date";
 
15      (2)  The date by which the chief executive shall be required
 
16           to submit all cost items for the biennium subsequently
 
17           agreed to in collective bargaining agreements.  The
 
18           date shall coincide with the due date for its request
 
19           for operating funds for the second year of the
 
20           biennium.
 
21      The chief executive shall immediately notify the exclusive
 
22 representatives and the board of these dates.  The conduct of
 
23 negotiations, issuance of arbitration decisions, and submission
 

 
Page 134                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 of cost items shall be done at times that will meet this
 
 2 objective.
 
 3      (e)  All cost items for the jurisdiction in any collective
 
 4 bargaining agreement, including an agreement reached pursuant to
 
 5 an arbitration decision, shall be submitted by the respective
 
 6 chief executive to its legislative body for approval.  Each chief
 
 7 executive shall submit the cost items for any biennium by the
 
 8 biennium submission date established pursuant to (d)(1).  If the
 
 9 cost items have not been submitted by that date due to the
 
10 failure of the exclusive representative to bargain in good faith,
 
11 all cost items for the biennium that are subsequently submitted
 
12 shall have an effective date no earlier than July 1 of the second
 
13 year of the biennium.  The chief executive shall submit these
 
14 cost items by the date established pursuant to subsection (d)(2).
 
15      (f)  Each legislative body shall approve or reject the cost
 
16 items in a collective bargaining agreement that are timely
 
17 submitted in accordance with subsection (e) by the next June 30.
 
18 Any failure to approve or reject the cost items by the next
 
19 June 30 shall be considered a rejection of the cost items by the
 
20 legislative body.  Whenever a legislative body rejects or fails
 
21 to approve the cost items in an agreement, it shall notify the
 
22 chief executive and the exclusive representative of its reasons.
 
23 If further bargaining might result in the subsequent approval of
 

 
Page 135                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 cost items, the parties shall bargain further in consideration of
 
 2 the legislative body's specific reasons for rejecting or not
 
 3 approving the cost items initially.  Any agreement on cost items
 
 4 after further bargaining shall be submitted by the chief
 
 5 executive to the legislative body within ten days of the
 
 6 agreement.  The limitation in subsection (e) on the effective
 
 7 date of cost items shall not apply to cost items that were timely
 
 8 submitted to, but rejected or not approved by, the appropriate
 
 9 legislative body."
 
10      SECTION 103.  Section 89-11, Hawaii Revised Statutes, is
 
11 amended to read as follows:
 
12      "§89-11  Resolution of disputes; grievances; impasses.(a)
 
13 A public employer shall have the power to enter into written
 
14 agreement with the exclusive representative of an appropriate
 
15 bargaining unit setting forth a grievance procedure culminating
 
16 in a final and binding decision, to be invoked in the event of
 
17 any dispute concerning the interpretation or application of a
 
18 written agreement.  In the absence of such a procedure, either
 
19 party may submit the dispute to the board for a final and binding
 
20 decision.  A dispute over the terms of an initial or renewed
 
21 agreement does not constitute a grievance.
 
22      (b)  A public employer shall have the power to enter into a
 
23 written agreement with [the] an exclusive representative [of an
 

 
Page 136                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 appropriate bargaining unit] setting forth an impasse procedure,
 
 2 culminating in [a final and binding] an arbitration decision[,]
 
 3 that complies with subsection (h), to be invoked in the event of
 
 4 an impasse over the terms of an initial or renewed agreement.
 
 5 [In the absence of such a procedure, either party may request the
 
 6 assistance of the board by submitting to the board and to the
 
 7 other party to the dispute a clear, concise statement of each
 
 8 issue on which an impasse has been reached together with a
 
 9 certificate as to the good faith of the statement and the
 
10 contents therein.  The board, on its own motion, may determine
 
11 that an impasse exists on any matter in a dispute.  If the board
 
12 determines on its own motion that an impasse exists, it may
 
13 render assistance by notifying both parties to the dispute of its
 
14 intent.
 
15      The board shall render assistance to resolve the impasse
 
16 according to the following schedule:] An impasse during the term
 
17 of a collective bargaining agreement on reopened items shall not
 
18 be subject to the impasse procedures in this section.  The
 
19 parties may voluntarily agree to an impasse procedure for
 
20 reopened items; provided that, if the procedure culminates in an
 
21 arbitration decision, the decision shall be in compliance with
 
22 subsection (h).
 
23      (c)  At least one hundred twenty days prior to the biennium
 

 
Page 137                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 submission date under section 89-10, the board shall initiate an
 
 2 investigation to determine whether an impasse exists in
 
 3 negotiations for any of the bargaining units as follows:
 
 4      (1)  The board shall require each party to submit to it and
 
 5           to the other party a clear, concise statement of all
 
 6           unresolved issues;
 
 7      (2)  If the board finds that the parties have mutually
 
 8           agreed upon an impasse procedure allowed in subsection
 
 9           (b), the board shall permit the parties to proceed with
 
10           the impasse procedure mutually agreed upon and assist
 
11           in the appointment of neutral third parties, at times
 
12           and in the manner as may be specified in the impasse
 
13           procedure.
 
14      (d)  If there are still unresolved issues on the one
 
15 hundredth day prior to the biennium submission date and the
 
16 parties have not mutually agreed upon an impasse procedure, the
 
17 board shall declare that an impasse exists on that date and the
 
18 parties shall be required to follow the impasse procedures
 
19 applicable to the bargaining unit as provided in this section.
 
20      (e)  The impasse procedures for bargaining unit (1), non-
 
21 supervisory employees in blue collar positions; bargaining unit
 
22 (5), teachers and other personnel of the department of education;
 
23 bargaining unit (7), faculty of the University of Hawaii and the
 

 
Page 138                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 community college system shall be as follows:
 
 2      (1)  [Mediation.  Assist] Mandatory mediation.  During the
 
 3           first fifteen days of the impasse, the board shall
 
 4           assist the parties [involved] in a voluntary resolution
 
 5           of the impasse by [appointing] providing a mediator or
 
 6           mediators, representative of the public, from a list of
 
 7           qualified persons maintained by the board[, within
 
 8           three days after the date of the impasse, which shall
 
 9           be deemed to be the day on which notification is
 
10           received or a determination is made that an impasse
 
11           exists].  If mutually requested by the parties, the
 
12           board may provide additional mediation assistance at
 
13           any time.
 
14      (2)  [Fact-finding.] Mandatory fact-finding.  If the
 
15           [dispute] impasse continues fifteen days after the date
 
16           of the impasse, the board shall [appoint, within three
 
17           days,] immediately convene a fact-finding board of not
 
18           more than three members, representative of the public,
 
19           from a list of qualified persons maintained by the
 
20           board.  The fact-finding board[,] shall, in addition to
 
21           powers delegated to it by the board, have the power to
 
22           make recommendations for the resolution of the
 
23           [dispute.] impasse.  The fact-finding board, acting by
 

 
Page 139                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

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

 
Page 140                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

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

 
Page 141                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 the board.  All other costs, including that of a neutral
 
 2 arbitrator, shall be borne equally by the parties involved in the
 
 3 dispute.]
 
 4      (3)  Voluntary arbitration.  The parties may mutually agree
 
 5           to submit the impasse, at any time, to an arbitration
 
 6           procedure for a decision that complies with subsection
 
 7           (h).  If there is mutual agreement on an arbitration
 
 8           procedure, but no agreement on an arbitrator or an
 
 9           arbitration panel, the board shall assist by convening
 
10           an arbitration panel pursuant to subsection (f).
 
11      (4)  Fact-finding report made public; mandatory cooling-off
 
12           period.  If the impasse remains unresolved and the
 
13           parties have not agreed to submit the impasse to
 
14           voluntary arbitration within thirty-five days after the
 
15           date of impasse, the board shall make public the fact-
 
16           finding report, including any recommendations.  Either
 
17           party shall be free to take whatever lawful action it
 
18           deems necessary to end the dispute; provided that no
 
19           action shall involve the disruption or interruption of
 
20           public services within sixty days after the fact-
 
21           finding report was made public.
 
22      (5)  Cost items to legislative bodies.  If the impasse
 
23           remains unresolved and there is no mutual agreement to
 

 
Page 142                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           submit to voluntary arbitration, the employers shall
 
 2           submit to their respective legislative bodies their
 
 3           recommendations for the settlement of all cost items,
 
 4           together with the fact-finding report, no later than
 
 5           its biennium submission date.  The exclusive
 
 6           representatives may submit to the respective
 
 7           legislative bodies their recommendations for the
 
 8           settlement of all cost items by the same date.
 
 9      [(c)  If the parties have not mutually agreed to submit the
 
10 dispute to final and binding arbitration, either party shall be
 
11 free to take whatever lawful action it deems necessary to end the
 
12 dispute; provided that no action shall involve the disruption or
 
13 interruption of public services within sixty days after the fact-
 
14 finding board has made public its findings of fact and any
 
15 recommendations for the resolution of the dispute.  The employer
 
16 shall submit to the appropriate legislative bodies the employer's
 
17 recommendations for the settlement of the dispute on all cost
 
18 items together with the findings of fact and any recommendations
 
19 made by the fact-finding board.  The exclusive representative may
 
20 submit to the appropriate legislative body its recommendations
 
21 for the settlement of the dispute on all cost items.
 
22      (d)  If a dispute between a public employer and the
 
23 exclusive representative of appropriate bargaining unit (2),
 

 
Page 143                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

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

 
Page 144                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

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

 
Page 145                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

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

 
Page 146                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 arbitration panel shall commence a hearing at which time the
 
 2 parties may submit either in writing or through oral testimony,
 
 3 all information or data supporting their respective final offers.
 
 4 Nothing in this section shall be construed to prohibit the
 
 5 parties from reaching a voluntary settlement on the unresolved
 
 6 issues, with or without the assistance of a mediator, at any time
 
 7 prior to the conclusion of the hearing conducted by the
 
 8 arbitration panel.
 
 9      Within thirty calendar days after the conclusion of the
 
10 hearing, a majority of the arbitration panel shall issue a final
 
11 and binding decision.]
 
12      (f)  The impasse procedures for bargaining unit (2),
 
13 supervisory employees in blue collar positions; bargaining unit
 
14 (3), nonsupervisory employees in white collar positions;
 
15 bargaining unit (4), supervisory employees in white collar
 
16 positions; bargaining unit (6), educational officers and other
 
17 personnel of the department of education under the same salary
 
18 schedule; bargaining unit (8), personnel of the University of
 
19 Hawaii and the community college system, other than faculty;
 
20 bargaining unit (9), registered professional nurses; bargaining
 
21 unit (10), institutional, health, and correctional workers;
 
22 bargaining unit (11), firefighters; bargaining unit (12), police
 
23 officers; and bargaining unit (13), professional and scientific
 

 
Page 147                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 employees, who can not be included in any of the other bargaining
 
 2 units, shall be as follows:
 
 3      (1)  Mandatory mediation.  During the first fifteen days of
 
 4           the impasse, the board shall assist the parties in a
 
 5           voluntary resolution of the impasse by providing a
 
 6           mediator or mediators, representative of the public,
 
 7           from a list of qualified persons maintained by the
 
 8           board.  If mutually requested by the parties, the board
 
 9           may provide additional mediation assistance prior to
 
10           convening an arbitration panel.
 
11      (2)  Voluntary arbitration.  The parties may mutually agree
 
12           to submit the impasse, at any time, to an arbitration
 
13           procedure for a decision that complies with subsection
 
14           (h).  If there is mutual agreement on an arbitration
 
15           procedure, but no agreement on an arbitrator or an
 
16           arbitration panel, the board shall assist by convening
 
17           an arbitration panel pursuant to subsection (g).
 
18      (3)  Mandatory final offer arbitration.  If the impasse
 
19           continues thirty days after the date of the impasse and
 
20           there is no mutual agreement to submit the impasse to
 
21           an arbitration procedure, the board shall convene an
 
22           arbitration panel as provided in subsection (g) within
 
23           forty-five days after the date of the impasse.  Each
 

 
Page 148                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           party shall submit in writing to the panel upon its
 
 2           appointment a final offer which shall include all
 
 3           provisions in any existing collective bargaining
 
 4           agreement not being modified, all provisions already
 
 5           agreed to in negotiations, and all provisions other
 
 6           than those relating to the per capita dollar amount of
 
 7           contributions by the jurisdiction to the Hawaii public
 
 8           employees health fund being proposed for inclusion in
 
 9           the agreement.  A copy of the final offer shall be
 
10           given to the other party and the board.  Upon its
 
11           appointment, the arbitration panel shall schedule a
 
12           hearing as soon as practicable and issue an arbitration
 
13           decision no later than five days prior to the
 
14           employer's biennium submission date that includes the
 
15           factors as specified in subsection (h).  During the
 
16           hearing, the parties shall be allowed to submit either
 
17           in writing or through oral testimony, all information
 
18           or data supporting their respective final offers or
 
19           positions, as the case may be.
 
20      (g)  Whenever an impasse is submitted to arbitration for a
 
21 decision and the parties have not agreed on an arbitrator or
 
22 arbitration panel, the board shall convene a three-member
 
23 arbitration panel in the following manner:
 

 
Page 149                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      (1)  Two members of the arbitration panel shall be selected
 
 2           by the parties; one shall be selected by the employer
 
 3           and one shall be selected by the exclusive
 
 4           representative.
 
 5      (2)  The neutral third member of the arbitration panel shall
 
 6           be selected by the two previously selected panel
 
 7           members and shall chair the arbitration panel.
 
 8      (3)  In the event that the two previously selected
 
 9           arbitration panel members fail to select a neutral
 
10           third arbitrator within five calendar days from the
 
11           date of their appointment, the board shall furnish a
 
12           list of five qualified arbitrators from which the
 
13           neutral arbitrator shall be selected.  In developing
 
14           the list of arbitrators, the board may request the
 
15           assistance of the American Arbitration Association or
 
16           any other organization of arbitrators.  Within five
 
17           calendar days after receipt of the list, the parties
 
18           shall alternately strike names therefrom until a single
 
19           name is left, who shall be appointed by the board as
 
20           the neutral arbitrator and chairperson of the
 
21           arbitration panel.
 
22      (h)  Any arbitration procedure utilized to resolve an
 
23 impasse shall provide for the issuance of a decision no later
 

 
Page 150                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 than five days prior to the employer's biennium submission date,
 
 2 if possible.  If an arbitration decision cannot be issued by that
 
 3 time, the arbitrator or arbitration panel shall ensure that the
 
 4 effective date of cost items in the decision are in compliance
 
 5 with section 89-10.  In reaching a decision, [the] an arbitrator
 
 6 or arbitration panel utilized to resolve any impasse shall give
 
 7 weight to the factors listed below and shall include in a written
 
 8 opinion an explanation of how the factors were taken into account
 
 9 [in reaching the decision]:
 
10      (1)  The lawful authority of the employer[.] including, but
 
11           not limited to, federal restrictions on the ability of
 
12           the employer to access special funds or other
 
13           restrictions on the ability of the employer to access
 
14           funds that are authorized to be used only for a
 
15           specific purpose.
 
16      (2)  Stipulations of the parties.
 
17      (3)  [The] Due consideration to the interests and welfare of
 
18           the public[.] that shall not be compromised because of
 
19           the need to fund new or enhanced cost items by
 
20           reallocating funds from current levels of services or
 
21           programs previously authorized by the legislature.
 
22      (4)  The financial ability of the employer to meet these
 
23           costs[.]; provided that the employer's ability to fund
 

 
Page 151                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           cost items shall not be predicated on the premise that
 
 2           the employer may increase or impose new taxes, fees, or
 
 3           charges, receive moneys from judgments or settlements,
 
 4           or develop other sources of revenues.
 
 5      (5)  The present and future general economic condition of
 
 6           the counties and the State[.]; provided that any
 
 7           revenue estimates exceeding the latest council of
 
 8           revenue estimates reported pursuant to section 37-11,
 
 9           which is used by the state executive branch to prepare
 
10           the state's financial plan, shall not be considered.
 
11      (6)  Comparison of wages, hours, benefits, and conditions of
 
12           employment of the employees involved in the arbitration
 
13           proceeding with the wages, hours, benefits, and
 
14           conditions of employment of other persons performing
 
15           similar services[,] in Hawaii, and of other state and
 
16           county employees in Hawaii[.]; provided that, with
 
17           respect to a bargaining unit that has historically
 
18           recruited on a national level, the comparison shall be
 
19           with the wages, hours, benefits, and other conditions
 
20           of employment of other persons performing similar
 
21           services across the nation.
 
22      (7)  The average consumer prices for goods or services,
 
23           commonly known as the cost of living[.], including
 

 
Page 152                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           comparison of the rate of change in Hawaii with the
 
 2           rate of change nationally.
 
 3      (8)  The overall compensation presently received by the
 
 4           employees, including direct wage compensation,
 
 5           vacation, holidays and excused time, insurance and
 
 6           pensions, medical and hospitalization benefits, the
 
 7           continuity and stability of employment, and all other
 
 8           benefits received.
 
 9      (9)  Changes in any of the foregoing circumstances during
 
10           the pendency of the arbitration proceedings.
 
11    [(10)  Such other factors, not confined to the foregoing,
 
12           which are normally or traditionally taken into
 
13           consideration in the determination of wages, hours, and
 
14           conditions of employment through voluntary collective
 
15           bargaining, mediation, fact-finding, arbitration, or
 
16           otherwise between the parties, in the public service or
 
17           in private employment.]
 
18      The decision of the arbitration panel shall be final and
 
19 binding upon the parties on all provisions except for cost items
 
20 subject to section 89-10 submitted to the arbitration panel.  If
 
21 the parties have reached agreement with respect to the [amounts]
 
22 per capita dollar amount of contributions by the [State and
 
23 counties] jurisdiction to the Hawaii public employees health fund
 

 
Page 153                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 by the tenth working day after the arbitration panel issues its
 
 2 decision, the final and binding agreement of the parties on all
 
 3 provisions shall consist of the panel's decision and the
 
 4 [amounts] per capita dollar amount of contributions agreed to by
 
 5 the parties.  If the parties have not reached agreement with
 
 6 respect to the [amounts] per capita dollar amount of
 
 7 contributions by the [State and counties] jurisdiction 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] per capita
 
18 dollar amount of contributions established by the legislature by
 
19 enactment, after the legislature has considered the
 
20 recommendations for such contributions by the parties.  It is
 
21 strictly understood that no member of a bargaining unit subject
 
22 to this subsection shall be allowed to participate in a strike on
 
23 the issue of the [amounts] per capita dollar amount of
 

 
Page 154                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 contributions by the [State and counties] jurisdiction to the
 
 2 Hawaii public employees health fund.  The parties shall take
 
 3 whatever action is necessary to carry out and effectuate the
 
 4 final and binding agreement.  The parties may, at any time and by
 
 5 mutual agreement, amend or modify the panel's decision.
 
 6      Agreements reached pursuant to the decision of an
 
 7 arbitration panel and the [amounts] per capita dollar amount of
 
 8 contributions by the [State and counties] jurisdiction to the
 
 9 Hawaii public employees health fund, as provided herein, shall
 
10 not be subject to ratification by the employees concerned.  All
 
11 items requiring any moneys for implementation shall be subject to
 
12 appropriations by the appropriate legislative bodies and the
 
13 employer shall submit all such items within ten days after the
 
14 date on which the agreement is entered into as provided herein,
 
15 to the appropriate legislative bodies.
 
16      (i)  Nothing in this section shall be construed to prohibit
 
17 the parties from reaching a voluntary settlement on the
 
18 unresolved issues, with or without the assistance of a mediator,
 
19 at any time prior to the conclusion of the hearing conducted by
 
20 the arbitration panel.
 
21      (j)  Any time frame provided in this section may be modified
 
22 by mutual agreement of the parties, subject to the approval of
 
23 the board; provided that the times for submission of cost items
 

 
Page 155                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 in section 89-10 shall not be altered and shall remain
 
 2 applicable.
 
 3      (k)  The costs for mandatory mediation and fact-finding
 
 4 required in this section shall be borne by the board.  [All other
 
 5 costs] Costs incurred by either party [in complying with these
 
 6 provisions,] for arbitration, including the costs of its selected
 
 7 member on the arbitration panel, shall be borne by the party
 
 8 incurring them[, except that all].  All other costs and expenses
 
 9 [of the impartial arbitrator] for the services of any other
 
10 neutrals, including additional mediation, shall be borne equally
 
11 by the parties."
 
12      SECTION 104.  Section 89-12, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§89-12  Strikes[,]; rights and prohibitions.(a)
 
15 [Participation in a strike] It shall be unlawful for any employee
 
16 [who] to participate in a strike if the employee:
 
17      (1)  [is] Is not included in [an] the appropriate bargaining
 
18           unit [for which an exclusive representative has been
 
19           certified by the board,] involved in an impasse; or
 
20      (2)  [is] Is included in [an] the appropriate bargaining
 
21           unit [for which process for resolution of a dispute is
 
22           by referral to final and binding arbitration, or]
 
23           involved in an impasse that has been referred to
 

 
Page 156                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           arbitration for a decision.
 
 2      (3)  [is] Is an essential employee.
 
 3      (b)  It shall be lawful for an employee, who is not
 
 4 prohibited from striking under [paragraph] subsection (a) and who
 
 5 is in the appropriate bargaining unit involved in an impasse, to
 
 6 participate in a strike [after] under the following conditions:
 
 7      (1)  [the] The requirements of section 89-11 relating to the
 
 8           resolution of disputes have been complied with in good
 
 9           faith[,];
 
10      (2)  [the] The proceedings for the prevention of any
 
11           prohibited practices have been exhausted[,];
 
12      (3)  [sixty] Sixty days have elapsed since the fact-finding
 
13           [board has made public its findings] report and any
 
14           [recommendation,] recommendations were made public;
 
15      (4)  The collective bargaining agreement and any extension
 
16           of the agreement has expired; and
 
17     [(4)  the] (5)  The exclusive representative has given a ten-
 
18           day notice of intent to strike to the board and to the
 
19           employer.
 
20      (c)  (1)  If a strike, which may endanger the health or
 
21           safety of the public, is about to occur or is in
 
22           progress, the public employer concerned may petition
 
23           the board to make an investigation.  If the board finds
 

 
Page 157                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1           that there is imminent or present danger to the health
 
 2           or safety of the public, the board shall establish
 
 3           specific requirements that must be complied with and
 
 4           which shall include, but not be limited to:
 
 5           (A)  Designation of essential positions; and
 
 6           (B)  Any other requirement it deems necessary in order
 
 7                to avoid or remove any imminent or present danger
 
 8                to the health or safety of the public.
 
 9      (2)  The public employer shall give notice to an essential
 
10           employee:
 
11           (A)  By serving or delivering a copy thereof to the
 
12                essential employee being notified; or
 
13           (B)  By mailing a copy thereof by certified or
 
14                registered mail, return receipt requested,
 
15                deliverable to the addressee only, addressed to
 
16                the essential employee being notified at the
 
17                essential employee's place of residence; or
 
18           (C)  If service cannot be effected as set forth in
 
19                (2)(A) or (2)(B) above, or if the strike is in
 
20                progress, by publishing at least once a day for
 
21                three consecutive days, a copy thereof in both of
 
22                the newspapers having the largest general
 
23                circulation in the State.  After the final
 

 
Page 158                                                   2859
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1                publication, it shall be conclusively presumed
 
 2                that the essential employee has received such
 
 3                notice.
 
 4           After receipt of notice, it shall be the duty of the
 
 5           essential employee to contact the public employer for
 
 6           the essential employee's work assignment.
 
 7      (d)  No employee organization shall declare or authorize a
 
 8 strike of employees[,] which is or would be in violation of this
 
 9 section.  Where it is alleged by the public employer that an
 
10 employee organization has declared or authorized a strike of
 
11 employees which is or would be in violation of this section, the
 
12 public employer may apply to the board for a declaration that the
 
13 strike is or would be unlawful [and the].  The board, after
 
14 affording an opportunity to the employee organization to be heard
 
15 on the application, may make such a declaration.
 
16      (e)  If any employee organization or any employee is
 
17 violating or failing to comply [with the requirements of this
 
18 section], or if there is reasonable cause to believe that an
 
19 employee organization or an employee will violate or fail to
 
20 comply, with [such] the requirements[,] of this section, the
 
21 public employer affected shall, forthwith, institute appropriate
 
22 proceedings in the circuit in which the violation occurs to
 
23 enjoin the performance of any acts or practices forbidden by this
 

 
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 1 section[,] or to require the employee organization or employees
 
 2 to comply with the requirements of this section.  Jurisdiction to
 
 3 hear and dispose of all actions under this section is conferred
 
 4 upon each circuit court, and each court may issue in compliance
 
 5 with chapter 380, such orders and decrees, by way of injunction,
 
 6 mandatory injunction, or otherwise, as may be appropriate to
 
 7 enforce this section.  The right to a jury trial shall not apply
 
 8 to any proceeding brought under this section."
 
 9      SECTION 105.  Section 89-15, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§89-15  Financial reports to employees.  Every employee
 
12 organization shall keep an adequate record of its financial
 
13 transactions [and].  It shall make available [annually,] to [the]
 
14 all employees who [are members of the organization, within sixty
 
15 days after the end of its fiscal year, a detailed written] pay
 
16 the employee organization dues or its equivalent an annual
 
17 financial report [thereof] in the form of a balance sheet and an
 
18 operating statement, certified as to accuracy by a certified
 
19 public accountant[.], within sixty days after the end of its
 
20 fiscal year.  Additional details on which the financial report is
 
21 based shall be made available to an employee upon request.  In
 
22 the event of failure [of compliance] to comply with this section,
 
23 [any] an employee [within the organization] may petition the
 

 
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 1 board for an order compelling [such] compliance.  [An] The order
 
 2 [of the board on such petition] shall be enforceable in the same
 
 3 manner as other orders of the board under this chapter."
 
 4      SECTION 106.  Section 89-16.5, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§89-16.5  Access to personal records by an employee
 
 7 organization.  [Exclusive representatives] (a)  An exclusive
 
 8 representative shall be allowed access to [an employee's personal
 
 9 records which] information in the personal records of the
 
10 employees it represents that are relevant to the investigation or
 
11 processing of a grievance.  The exclusive representative shall
 
12 [not share or disclose the specific information contained in the
 
13 personal records and shall notify the employee that access has
 
14 been obtained.] notify the affected employees whenever it has
 
15 obtained access to information in their personal records."
 
16      SECTION 107.  Section 89-16.6, Hawaii Revised Statutes, is
 
17 amended by amending subsection (d) to read as follows:
 
18      "(d)  Information disclosed pursuant to this section shall
 
19 be provided in a form conducive to electronic data processing;
 
20 provided the employer possesses appropriate data processing
 
21 capability[.] and the exclusive representative may be required to
 
22 pay for any extraordinary costs."
 
23      SECTION 108.  Section 89-18, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "§89-18  Penalty.  Any person who wilfully assaults,
 
 3 resists, prevents, impedes, or interferes with [a mediator,
 
 4 member of the fact-finding board, or arbitrator, or] any member
 
 5 of the board or any of [the] its agents or employees [of the
 
 6 board] in the performance of duties pursuant to this chapter
 
 7 shall be fined not more than $500 or imprisoned not more than one
 
 8 year, or both.  The term "agent" includes a neutral third party
 
 9 that assists in the resolution of an impasse under section
 
10 89-11."
 
11      SECTION 109.  Section 89A-1, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§89A-1 Office of collective bargaining [in the state
 
14 government established.] and managed competition.  (a)  There
 
15 shall be established an office of collective bargaining and
 
16 managed competition in the office of the governor to assist the
 
17 governor in implementation and review of the managed process of
 
18 public-private competition for particular government services as
 
19 established pursuant to Act 230, Session Laws of Hawaii 1998,
 
20 [negotiating with and entering into written agreements between
 
21 the public employers] and negotiations between the State and the
 
22 exclusive representatives on matters of wages, hours, and other
 
23 negotiable terms and conditions of employment.
 

 
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 1      (b)  The position of chief negotiator for the State is
 
 2 hereby established to head the office.  The chief negotiator
 
 3 shall be experienced in labor relations.  [The governor shall
 
 4 appoint and remove the chief negotiator and the deputy
 
 5 negotiators, who shall not be subject to chapters 76, 77, and
 
 6 89.]  Effective January 1, 1989, and January 1, 1990, the salary
 
 7 of the chief negotiator shall be set by the governor within the
 
 8 range from $69,748 to $74,608 and $72,886 to $77,966 a year,
 
 9 respectively.  [The chief negotiator and deputy negotiators shall
 
10 be included in any benefit program generally applicable to the
 
11 officers and employees of the State.  All other employees shall
 
12 be appointed in accordance with chapters 76 and 77.  The chief
 
13 negotiator shall serve as one of the governor's designated
 
14 representatives as set forth in section 89-6(b).] The governor
 
15 shall appoint the chief negotiator with the advice and consent of
 
16 the senate, and may also appoint deputy negotiators to assist the
 
17 chief negotiator.  The governor, at pleasure, may remove the the
 
18 chief negotiator and any deputy negotiator.  All other employees
 
19 shall be appointed by the chief negotiator.  No employees of the
 
20 office of collective bargaining and managed competition shall be
 
21 included in the civil service, any civil service classification
 
22 system, or any appropriate bargaining unit; provided that any
 
23 civil service position on the effective date of this ACt shall
 

 
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 1 not be converted to an exempt position until the incumbent in
 
 2 that civil service position on the effective date of this Act
 
 3 vacates the position.  All employees in the office of collective
 
 4 bargaining and managed competition shall be included in any
 
 5 benefit programs generally applicable to employees of the State.
 
 6      (c)  The chief negotiator may provide negotiation services
 
 7 to other jurisdictions to assist those jurisdictions in
 
 8 negotiations with exclusive representatives required under
 
 9 chapter 89.  The chief negotiator may assess and collect fees for
 
10 services provided under this subsection.  The moneys collected
 
11 from these fees shall be deposited to the credit of the state
 
12 general fund.
 
13      (d)  Subject to the approval of the governor, the office of
 
14 collective bargaining and managed competition shall:
 
15      (1)  Assist the governor in formulating plans, including
 
16           objectives, criteria to measure the State's
 
17           accomplishment of objectives, and programs through
 
18           which the objectives are to be attained;
 
19      (2)  Assist the governor in formulating the State's
 
20           philosophy for public collective bargaining, as well as
 
21           planning bargaining strategies, and for the managed
 
22           process for public-private competition for government
 
23           services, including which particular service can be
 

 
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 1           provided more efficiently, effectively, and
 
 2           economically considering all relevant costs;
 
 3      (3)  Conduct negotiations with the exclusive representatives
 
 4           on matters involving the State and designate the
 
 5           State's spokespersons for each negotiation;
 
 6      (4)  Coordinate the State's resources in mediation, fact-
 
 7           finding, and interest arbitration cases as well as in
 
 8           labor disputes involving the State;
 
 9      (5)  Conduct systematic reviews of collective bargaining
 
10           agreements for the purpose of contract negotiations;
 
11      (6)  Coordinate the systematic compilation of data by all
 
12           state agencies that is required for negotiating
 
13           purposes;
 
14      (7)  Coordinate the establishment of cost data negotiated
 
15           with each exclusive representative and assist the
 
16           governor in making recommendations with respect thereto
 
17           to the legislature;
 
18      (8)  Coordinate the managed competition process established
 
19           pursuant to Act 230, Session Laws of Hawaii 1998 to
 
20           ensure that it is in compliance with the intent of Act
 
21           230, Session Laws of Hawaii 1998; and
 
22      (9)  Prepare and submit an annual report and such other
 
23           reports as may be requested to the governor and to the
 

 
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 1           legislature on the implementation of this chapter."
 
 2      SECTION 110.  Section 89A-2, Hawaii Revised Statutes, is
 
 3 repealed.
 
 4      ["[§89A-2]  Functions of the office of collective
 
 5 bargaining.  In addition to the powers and functions provided in
 
 6 other sections of this chapter, and subject to the approval of
 
 7 the governor, the office of collective bargaining shall:
 
 8      (1)  Assist the governor in formulating plans, including
 
 9           objectives, criteria to measure management's
 
10           accomplishment of objectives, and programs through
 
11           which the objectives are to be attained;
 
12      (2)  Assist the governor in formulating management's
 
13           philosophy for public collective bargaining as well as
 
14           planning bargaining strategies;
 
15      (3)  Conduct negotiations with the exclusive representatives
 
16           of each employee organization and designate employer
 
17           spokespersons for each negotiation;
 
18      (4)  Coordinate the State's resources in all mediation,
 
19           fact-finding and interest arbitration cases as well as
 
20           in all labor disputes;
 
21      (5)  Conduct systematic reviews of collective bargaining
 
22           agreements for the purpose of contract negotiations;
 
23      (6)  Coordinate the systematic compilation of data by all
 

 
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 1           agencies that is required for negotiating purposes;
 
 2      (7)  Coordinate the establishment of cost data negotiated
 
 3           with each exclusive representative and assist the
 
 4           governor in making recommendations with respect thereto
 
 5           to the legislative bodies;
 
 6      (8)  Prepare and submit an annual report and such other
 
 7           reports as may be requested to the governor and to the
 
 8           legislature on the implementation of the collective
 
 9           bargaining act."]
 
10      SECTION 111.  Chapter 89C, Hawaii Revised Statutes, is
 
11 amended by adding two new sections to be appropriately designated
 
12 and to read as follows:
 
13      "§89C-    Definitions.  As used in this chapter:
 
14      "Adjustment" means a change in wages, hours, benefits, or
 
15 other term and condition of employment.
 
16      "Appropriate authority" means the governor, the respective
 
17 mayors, the chief justice of the supreme court, the board of
 
18 education, the board of regents, the Hawaii health system
 
19 corporation board, and the legislative auditor, the ombudsman,
 
20 and the director of the legislative reference bureau.  These
 
21 individuals or boards may make adjustments for their respective
 
22 excluded officers and employees.
 
23      "Excluded employee" means any individual who is employed by
 

 
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 1 one of the appropriate authorities and who is not included in an
 
 2 appropriate bargaining unit under section 89-6 and, therefore, is
 
 3 not entitled to collective bargaining coverage under chapter 89.
 
 4      "Key personnel" means an individual appointed to a division
 
 5 chief or an agency head position, regardless of job title, that
 
 6 is responsible for the operations of a departmental program area
 
 7 and is excluded from collective bargaining coverage under chapter
 
 8 89.  The term does not include any of the following:
 
 9      (1)  An individual whose appointment, prior to the effective
 
10           date of this Act, is at the pleasure of an appointing
 
11           authority;
 
12      (2)  An individual whose appointment is required to be made
 
13           as specifically provided for by law; or
 
14      (3)  An individual who is the head of a departmental staff
 
15           office, such as, personnel or budget, that provides
 
16           support services to the key personnel in charge of the
 
17           program operations within the department.
 
18      §89C-    Key personnel in charge of program operations.  (a)
 
19 At the discretion of the chief executive, a cadre of key
 
20 personnel may be appointed by and serve at the pleasure of the
 
21 chief executive, based on recommendations submitted by the
 
22 respective department head or other appropriate authority.  An
 
23 employee appointed to serve in a key personnel position, who is a
 

 
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 1 member of the civil service, shall be granted a leave of absence
 
 2 from the employee's civil service position for the duration of
 
 3 the appointment and shall have return rights to the employee's
 
 4 former or a comparable position upon being released from the
 
 5 appointment.
 
 6      (b)  Because technical knowledge and continuity is essential
 
 7 for expeditious accomplishment of program objectives and goals,
 
 8 as well as the cooperation, commitment, support, and leadership
 
 9 capability of the individuals occupying these positions,
 
10 appointment to these key personnel positions shall be made as
 
11 follows:
 
12      (1)  Priority consideration shall be given to the incumbent
 
13           in the position based on past performance in the
 
14           position, willingness and ability to accomplish the
 
15           objectives and goals of the administration, and other
 
16           criteria deemed appropriate by the chief executive or
 
17           the department head;
 
18      (2)  If a determination is made to release the incumbent,
 
19           the appointment shall be made from among employees
 
20           within the service of the jurisdiction who have at
 
21           least five years of continuous service immediately
 
22           prior to the date of appointment; provided that the
 
23           five-year service requirement shall not apply to a
 

 
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 1           position that cannot be filled from among employees
 
 2           within the service because of unique or special
 
 3           qualifications required of the position.
 
 4      (c)  All incumbents in positions identified as key personnel
 
 5 positions, who are members of the civil service on the effective
 
 6 date of this Act, shall be considered as serving in exempt
 
 7 positions at the pleasure of the chief executive and shall suffer
 
 8 no loss of pay.  Upon the incumbent's release from the key
 
 9 personnel position, the incumbent shall be entitled to placement
 
10 in another civil service position deemed appropriate by the
 
11 appointing authority.  The incumbent shall not suffer any loss of
 
12 benefits or prior service credits and shall be entitled to retain
 
13 the same pay on the effective date of this Act with appropriate
 
14 adjustments made for the duration of appointment in the key
 
15 personnel position, irrespective of the position in which they
 
16 are placed; provided that, if the employee's pay exceeds the
 
17 maximum rate of the new pay range, the employee shall not be
 
18 entitled to any pay adjustment until the maximum rate of the pay
 
19 range equals or exceeds the employee's pay."
 
20      SECTION 112.  Section 89C-1, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§89C-1 Purpose.  [The legislature finds that existing
 
23 statutes do not permit the chief executives of the State and
 

 
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 1 counties, the board of education, the board of regents, the
 
 2 auditor, the director of the legislative reference bureau, the
 
 3 ombudsman, and the chief justice of the supreme court sufficient
 
 4 flexibility to make appropriate and timely adjustments in the
 
 5 compensation, hours, terms, and conditions of employment, amounts
 
 6 of contributions by the State and respective counties to the
 
 7 Hawaii public employees health fund, and other benefits for
 
 8 public officers and employees who are excluded from collective
 
 9 bargaining coverage under  chapter 89.  To this end, the
 
10 legislature grants to the respective chief executives, the board
 
11 of education, the board of regents, the auditor, the director of
 
12 the legislative reference bureau, the ombudsman, and the chief
 
13 justice, the authority to make such adjustments for officers and
 
14 employees excluded from collective bargaining in conformance with
 
15 this chapter.
 
16      Nothing in this chapter shall be construed to interfere with
 
17 or diminish any authority already provided by statutes to the
 
18 chief executives, the board of education, the board of regents,
 
19 the auditor, the director of the legislative reference bureau,
 
20 the ombudsman, or the chief justice.] The legislature finds that
 
21 the appropriate authorities in the jurisdictions do not have
 
22 sufficient flexibility to adjust the wages, hours, benefits, and
 
23 other terms and conditions of employment for their respective
 

 
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 1 excluded public officers and employees.  The organizational
 
 2 status and employment conditions of these individuals in the
 
 3 excluded group are diverse and include:  cabinet members, board
 
 4 and commission members, managerial employees, and nonmanagerial
 
 5 employees; appointees, civil service employees, and employees
 
 6 exempt from civil service; permanent and temporary employees; and
 
 7 full-time, part-time, seasonal, casual, and intermittent
 
 8 employees.  Sufficient flexibility must be provided so that
 
 9 timely and relevant adjustments can be made.
 
10      To this end, the legislature grants appropriate authorities
 
11 the necessary flexibility to make adjustments as provided in this
 
12 chapter; provided that nothing in this chapter shall be construed
 
13 to interfere with or diminish authority already provided to them.
 
14 The legislature also finds that the chief executives do not have
 
15 a sufficient cadre of key personnel to ensure that the various
 
16 program areas are in sync with the directions, priorities, and
 
17 program objectives and goals that they have established for their
 
18 administrations.  The department heads and their deputies have
 
19 difficulty in making desired changes and accomplishing the
 
20 program objectives and goals of the administration during their
 
21 limited terms of office without the cooperation, commitment,
 
22 support, leadership capability, and technical knowledge of key
 
23 personnel in charge of the various program areas.  Therefore, to
 

 
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 1 enable the chief executives and their cabinet officials to have a
 
 2 sufficient cadre of key personnel to accomplish their program
 
 3 objectives and goals, the legislature authorizes each chief
 
 4 executive to develop, at discretion, a cadre of key personnel who
 
 5 shall be appointed by and serve at the pleasure of the chief
 
 6 executive to head the various program areas within their
 
 7 respective jurisdictions."
 
 8      SECTION 113.  Section 89C-2, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§89C-2 Adjustments authorized; limitations, restrictions.
 
11 [Any provision of law to the contrary notwithstanding, the
 
12 compensation, hours, terms, and conditions of employment, amounts
 
13 of contributions by the State and respective counties to the
 
14 Hawaii public employees health fund, and other benefits for
 
15 public officers and employees who are excluded from collective
 
16 bargaining shall be adjusted by the chief executives of the State
 
17 or counties, the board of education, the board of regents, the
 
18 auditor, the director of the legislative reference bureau, the
 
19 ombudsman, or the chief justice, as applicable.  The chief
 
20 executives, the board of education, the board of regents, the
 
21 auditor, the director of the legislative reference bureau, the
 
22 ombudsman, and the chief justice, or their designated
 
23 representatives, shall determine the adjustments to be made and
 

 
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 1 which excluded officers or employees are to be granted
 
 2 adjustments under this chapter, in accordance with the following
 
 3 guidelines and limitations:
 
 4      (1)  For excluded officers and employees under the same
 
 5           compensation plans as officers and employees within
 
 6           collective bargaining units, such adjustments shall be
 
 7           not less than those provided under collective
 
 8           bargaining agreements for officers and employees hired
 
 9           on a comparable basis.
 
10      (2)  For excluded officers and employees in the excluded
 
11           managerial compensation plan, such adjustments shall be
 
12           not less than those provided under collective
 
13           bargaining to officers and employees in the
 
14           professional and scientific employees bargaining unit.
 
15           Alternate adjustments may be granted to officers and
 
16           employees whose work is related to that of officers and
 
17           employees in the other optional bargaining units in
 
18           order to maintain appropriate pay relationships with
 
19           such officers and employees.
 
20      (3)  No adjustment in compensation, hours, terms, and
 
21           conditions of employment, amounts of contributions by
 
22           the State and respective counties to the Hawaii public
 
23           employees health fund, or other benefits shall be
 

 
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 1           established which is in conflict with the system of
 
 2           personnel administration based on merit principles and
 
 3           scientific methods governing the classification of
 
 4           positions and the employment conduct, movement, and
 
 5           separation of public officers and employees.
 
 6      (4)  The compensation of officers or employees whose
 
 7           salaries presently are limited or fixed by legislative
 
 8           enactment shall not be adjusted under this chapter, but
 
 9           shall continue to be adjusted by the appointing
 
10           authority within limits established by law or by
 
11           legislative enactment.
 
12      (5)  The compensation of officers or employees, who are not
 
13           covered under the same compensation plans as officers
 
14           and employees within collective bargaining units and
 
15           whose salaries presently are authorized to be fixed by
 
16           the appointing authority, need not be adjusted under
 
17           this chapter.  The appointing authority may continue to
 
18           make specific adjustments in the salaries of individual
 
19           officers or employees from available funds
 
20           appropriated.
 
21      (6)  Adjustments to the amounts of contributions by the
 
22           State and respective counties to the Hawaii public
 
23           employees health fund on behalf of officers or
 

 
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 1           employees who are not covered by adjustments made under
 
 2           this chapter shall be made by legislative enactment.]
 
 3 Each appropriate authority may make adjustments for their
 
 4 respective excluded employees subject to the following guidelines
 
 5 and limitations:
 
 6      (1)  The compensation of excluded employees, whose pay is
 
 7           presently fixed or limited by legislative action, shall
 
 8           not be adjusted under this chapter and shall continue
 
 9           to be fixed or limited by the respective legislative
 
10           body.
 
11      (2)  The compensation of excluded employee exempt from civil
 
12           service coverage, whose pay is set at the discretion of
 
13           the appointing authority, shall continue to be adjusted
 
14           at the discretion of the appointing authority from
 
15           funds allowed for this purpose.
 
16      (3)  Any adjustment made for excluded civil service
 
17           employees shall be consistent with the merit principle
 
18           and shall not diminish any rights provided under
 
19           chapter 78.
 
20      (4)  Adjustments, to the extent practicable, shall uniformly
 
21           apply to every excluded employee within a homogenous
 
22           grouping, such as, cabinet members or managerial
 
23           employees, to ensure fairness.  This does not preclude
 

 
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 1           variable adjustments based on performance or other job
 
 2           criteria and specific adjustments warranted based on
 
 3           the nature of work performed or working conditions.
 
 4      (5)  No adjustment shall be made in benefits provided under
 
 5           chapter 88 unless specifically authorized by that
 
 6           chapter, or with respect to any other matter that the
 
 7           state legislature may specifically prohibit or limit by
 
 8           law."
 
 9      SECTION 114.  Section 89C-3, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "§89C-3 Adjustments for officers and employees [covered by
 
12 chapter 77].  [The state director of human resources development
 
13 and the directors of personnel services of the counties who shall
 
14 serve as representatives of their respective chief executives,
 
15 and the administrative director of the courts who shall serve as
 
16 the representative of the chief justice, shall decide by majority
 
17 vote on the adjustments to be made under this chapter for
 
18 officers and employees covered under chapter 77.  Any adjustments
 
19 and their effective dates shall be uniform among the
 
20 jurisdictions.] (a)  Each appropriate authority shall determine
 
21 the adjustments that are relevant for their respective excluded
 
22 civil service employees based on recommendations from its
 
23 respective director.
 

 
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 1      In formulating recommendations to the appropriate authority,
 
 2 the respective director shall:
 
 3      (1)  Establish rules and procedures that allow excluded
 
 4           civil service employees and employee organizations
 
 5           representing them the opportunity to provide input on
 
 6           the kinds of adjustments that are relevant and
 
 7           important to them for the director's consideration.
 
 8      (2)  Ensure that adjustments for excluded civil service
 
 9           employees result in compensation and benefit packages
 
10           that are appropriate for what they do and the
 
11           contribution they make in consideration of the
 
12           compensation and benefit packages provided under
 
13           collective bargaining agreements for counterparts and
 
14           subordinates within the jurisdiction.
 
15      (3)  Confer with other directors on proposed adjustments to
 
16           ensure that adjustments are consistent with chapter 89.
 
17      (b)  Each appropriate authority shall provide by rules for a
 
18 grievance procedure that provides excluded civil service
 
19 employees complaints and appeal rights comparable to those
 
20 provided under collective bargaining agreements for counterparts
 
21 and subordinates within the jurisdiction."
 
22      SECTION 115.  Section 89C-4, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "§89C-4 [Adjustments for other officers and employees.(a)
 
 2 The respective representatives of the State, counties, and the
 
 3 judiciary shall submit to their respective chief executives and
 
 4 to the chief justice, recommendations on the adjustments to be
 
 5 made under this chapter for other officers and employees within
 
 6 their respective personnel systems.  The conference of personnel
 
 7 directors shall confer prior to the submittal of any recommended
 
 8 adjustment by each director to the director's chief executive or
 
 9 by the administrative director of the courts to the chief
 
10 justice.  Any adjustments and their effective dates shall be
 
11 uniform, if practicable, among the jurisdictions.
 
12      (b)  The superintendent of education and the president of
 
13 the University of Hawaii shall submit to the board of education
 
14 and the board of regents, respectively, recommendations on the
 
15 adjustments to be made under this chapter for officers and
 
16 employees within their respective personnel systems.  The
 
17 superintendent and the president shall confer with the state
 
18 director of human resources development prior to the submittal of
 
19 any recommended adjustment.  Any adjustments adopted by the board
 
20 of education or the board of regents which presently require the
 
21 approval of the governor shall remain subject to the approval of
 
22 the governor.
 
23      (c)  The auditor, the director of the legislative reference
 

 
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 1 bureau, and the ombudsman shall decide by majority vote on the
 
 2 adjustments to be made under this chapter for officers and
 
 3 employees within their respective offices, including employees of
 
 4 the state ethics commission which is administratively within the
 
 5 office of the auditor.  The auditor, the director of the
 
 6 legislative reference bureau, and the ombudsman shall confer with
 
 7 the state director of human resources development prior to voting
 
 8 on any adjustment.  Any adjustments and their effective dates
 
 9 shall be uniform for employees under sections 23-8, 23G-2, 84-35,
 
10 and 96-3.] Excluded employees exempt from civil service.  Each
 
11 appropriate authority shall determine the adjustments that are
 
12 relevant for their respective excluded employees who are exempt
 
13 from civil service in consideration of the compensation and
 
14 benefit packages provided for other employees within the
 
15 jurisdiction."
 
16      SECTION 116.  Section 89C-5, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§89C-5 [Implementation; effective date, appropriations,
 
19 approval.(a)  Adjustments made under this chapter which do not
 
20 exceed those for officers and employees in collective bargaining
 
21 units shall take effect on the same dates as appropriate
 
22 collective bargaining agreements.  Any such adjustments which
 
23 constitute cost items shall be subject to appropriations by the
 

 
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 1 appropriate legislative bodies.  Such cost items shall be
 
 2 submitted separately from any cost items under collective
 
 3 bargaining to the appropriate legislative bodies, except that if
 
 4 appropriation by the state legislature is required, and it is not
 
 5 in session at the time, such cost items shall be submitted for
 
 6 inclusion in the governor's next operating budget.  The state
 
 7 legislature or the legislative bodies of the counties acting in
 
 8 concert, as the case may be, may approve or reject the cost items
 
 9 submitted to them, as a whole.  If the state legislature or the
 
10 legislative body of any county rejects any of the cost items
 
11 submitted to them, all cost items shall be returned for revision.
 
12      (b)  Any other adjustments made under this chapter which
 
13 constitute cost items or which were specifically provided for by
 
14 legislative enactment shall be subject to approval or rejection
 
15 as a whole by the appropriate legislative body.  Such adjustments
 
16 for officers and employees covered under chapter 77 shall be
 
17 subject to the approval or rejection as a whole by all
 
18 appropriate legislative bodies acting in concert.  If the state
 
19 legislature or the legislative body of any county rejects any of
 
20 the adjustments submitted to it, all adjustments for officers and
 
21 employees covered under chapter 77 or all adjustments for other
 
22 officers and employees, as the case may be, shall be returned for
 
23 revision.
 

 
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 1      (c)  The chief executives of the State or counties, the
 
 2 board of education, the board of regents, the auditor, the
 
 3 director of the legislative reference bureau, the ombudsman, or
 
 4 the chief justice, shall not make any adjustments nor use funds
 
 5 for purposes of this chapter without the prior approval of the
 
 6 appropriate legislative bodies as required in this section.]
 
 7 Implementation; approval and appropriations.  (a)  Adjustments
 
 8 that do not require appropriations by the respective legislative
 
 9 body and do not exceed those provided for counterparts or
 
10 subordinates under collective bargaining agreements may be
 
11 implemented without legislative approval.  Any such adjustment
 
12 shall not be effective earlier than the date on which the
 
13 adjustment was made under the relevant collective bargaining
 
14 agreement.
 
15      (b)  All other adjustments that require appropriations by
 
16 the respective legislative body or exceed those provided for
 
17 counterparts or subordinates under collective bargaining
 
18 agreements units shall be subject to approval and, if necessary,
 
19 appropriations by the respective legislative body.  These
 
20 adjustments and applicability, effective dates, and any
 
21 associated costs shall be submitted separately to the respective
 
22 legislative body for consideration, at such time and in such
 
23 matter as the legislative body may require.  The respective
 

 
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 1 legislative body may approve any adjustment as submitted or, if
 
 2 amended, after discussing the change with the appropriate
 
 3 authority.
 
 4      (c)  No adjustment shall be made nor shall be funds used for
 
 5 purposes of this chapter without the prior approval of the
 
 6 respective legislative body as required in this section."
 
 7                              PART V
 
 8      SECTION 117.  Experimental modernization projects.  (a)  It
 
 9 is the intent of this part to encourage and facilitate
 
10 improvements in the human resource programs of the several
 
11 jurisdictions.  With the approval of the chief executive, the
 
12 director may conduct experimental modernization projects to
 
13 determine whether specific changes in its human resource program
 
14 would result in a more desirable program for the jurisdiction.
 
15      (b)  Prior to implementing any experimental modernization
 
16 project, the director shall:
 
17      (1)  Develop a plan identifying the purposes of the project,
 
18           the methodology to be used, the duration of the
 
19           project, the criteria for evaluation of the project,
 
20           and the cost of the project, if any.
 
21      (2)  Consult with the employees who would be involved in the
 
22           conduct of the project.
 
23      (3)  Negotiate with the exclusive representative if a
 

 
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 1           modification or waiver of provisions under a collective
 
 2           bargaining agreement is necessary for the employees
 
 3           involved in the conduct of the project.
 
 4      (c)  While the project is in progress, it shall not be
 
 5 limited by state or local personnel laws and rules, but shall be
 
 6 in compliance with all equal employment opportunity laws and laws
 
 7 prohibiting discrimination.
 
 8      (d)  For purposes of this part:
 
 9      "Chief executive" means the governor, the respective mayors,
 
10 the chief justice of the supreme court, the superintendent of the
 
11 department of education, the president of the University of
 
12 Hawaii, and the chief executive officer of the Hawaii health
 
13 systems corporation.
 
14      "Director" means the head of the central personnel agency
 
15 for a jurisdiction regardless of title, whether it is the
 
16 director of human resources development, director of personnel,
 
17 director of personnel services, or personnel director.
 
18      "Jurisdiction" means the State, the city and county of
 
19 Honolulu, the county of Hawaii, the county of Maui, and the
 
20 county of Kauai, the judiciary, the department of education, the
 
21 University of Hawaii, or the Hawaii health systems corporation.
 
22                              PART VI
 

 
 
 
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 1      SECTION 118.  This part applies to employees in the
 
 2 executive branch of state government, including employees of the
 
 3 board of education, the board of regents, and the Hawaii health
 
 4 systems corporations board.  For the purposes of this part,
 
 5 "employee" means an individual covered under chapter 88, Hawaii
 
 6 Revised Statutes, and employed with the state executive branch,
 
 7 except for school level personnel with the department of
 
 8 education engaged in administrative or instructional work, such
 
 9 as, principals and teachers.
 
10      This part may apply to county employees covered under
 
11 chapter 88, Hawaii Revised Statutes, and employed with the city
 
12 and county of Honolulu, county of Hawaii, county of Kauai or
 
13 county of Maui should the county chief executive declare by
 
14 providing notice to each of the exclusive collective bargaining
 
15 representatives for public employees and to the board of trustees
 
16 for the employees' retirement system that the county will
 
17 initiate a planned workforce reduction program in conjunction
 
18 with the offering of a voluntary severance benefit or an early
 
19 retirement incentive program.
 
20      This part does not apply to the state legislature, the
 
21 judiciary, or the office of Hawaiian affairs.
 
22      SECTION 119.  Voluntary severance benefit.  (a)  Any
 
23 employee who receives official notification or a ninety day
 
24 notice of a reduction-in-force from an appointing authority that
 

 
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 1 the employee's position is specifically eliminated or eliminated
 
 2 as a result of a workforce reduction plan proposed by the
 
 3 department, may elect to receive a voluntary severance benefit
 
 4 under this section in lieu of any reduction-in-force rights to
 
 5 which the employee is entitled under a collective bargaining
 
 6 agreement or rules.  An employee who is not entitled to
 
 7 reduction-in-force rights shall not be eligible to receive a
 
 8 voluntary severance benefit under this section.  An employee who
 
 9 elects to receive the early retirement incentive under section
 
10 120 of this Act shall not be paid a voluntary severance benefit
 
11 under this section.  An employee who receives a reduction-in-
 
12 force notice as the result of a reduction-in-force bumping action
 
13 shall not be eligible to receive a voluntary severance benefit
 
14 under this section.
 
15      (b)  A one-time lump sum cash bonus voluntary severance
 
16 benefit shall be calculated and paid by the terminated employee's
 
17 department as follows:  Five per cent of the employee's base
 
18 annual salary for every year of service worked, up to ten years,
 
19 that shall not exceed fifty per cent of the employee's annual
 
20 base salary.
 
21      For the purposes of this section, "base salary" means an
 
22 employee's annual salary for the position from which the employee
 

 
 
 
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 1 is to be separated, excluding all other forms of compensation
 
 2 paid or accrued, whether a bonus, allowance, differential, or
 
 3 value of leave or compensatory time off credits.  Compensation
 
 4 excluded from base salary includes but is not limited to:
 
 5 shortage category differential, night shift differential,
 
 6 overtime, compensatory time off credits, vacation or sick leave,
 
 7 and workers' compensation benefits.
 
 8      (c)  A voluntary severance benefit provided under this
 
 9 section shall not be considered as a part of a terminated
 
10 employee's salary, service credit, or a collectively bargainable
 
11 cost item when calculating retirement benefits or sick and
 
12 vacation leave.
 
13      (d)  The voluntary severance benefit shall be in addition to
 
14 any payment owing to the employee for accumulated unused vacation
 
15 allowances.
 
16      (e)  All voluntary severance benefits payable pursuant to
 
17 this section shall be subject to applicable state income tax laws
 
18 and rules.
 
19      (f)  No voluntary severance benefit shall be payable to a
 
20 state employee terminated for disciplinary reasons or reasons
 
21 other than a reduction in state government workforce.
 
22      (g)  No employee who has received a voluntary severance
 
23 benefit provided by this section shall be reemployed by the
 

 
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 1 employee's immediate former state or county employer within five
 
 2 years of receiving the voluntary severance benefit unless the
 
 3 gross amount of the voluntary severance benefit is returned by
 
 4 the employee to the appropriate fund prior to the commencement of
 
 5 reemployment.
 
 6      (h)  The heads of all affected state departments shall
 
 7 transmit a list of all employees whose positions are eliminated
 
 8 and who elected and received voluntary severance benefits under
 
 9 this section to the directors of finance and human resources
 
10 development.  The heads of all affected departments shall certify
 
11 that the employees on the list have in fact selected the
 
12 voluntary severance benefit, which shall be in lieu of an early
 
13 retirement incentive under section 120 of this Act and any
 
14 reduction-in-force rights to which the employees may have been
 
15 entitled.
 
16      SECTION 120.  Early retirement incentive.  (a)  Any employee
 
17 who receives official notification or a ninety day notice of
 
18 reduction-in-force notification from an appointing authority that
 
19 the employee's position is specifically eliminated or eliminated
 
20 as a result of a workforce reduction plan proposed by the
 
21 department, may elect, if the employee is a vested member of the
 
22 employees' retirement system and meets any of the criteria
 
23 specified in subsection (c), the early retirement incentive
 

 
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 1 provided by this section.  If an employee is also eligible for a
 
 2 voluntary severance benefit under section 119 of this Act, the
 
 3 early retirement incentive shall be in lieu of the voluntary
 
 4 severance benefit and any reduction-in-force rights the employee
 
 5 may be entitled to under a collective bargaining agreement or
 
 6 rules.  An employee who receives reduction-in-force notice as the
 
 7 result of a reduction-in-force bumping action shall not be
 
 8 eligible to receive the early retirement incentive benefit under
 
 9 this section.  To receive the early retirement incentive under
 
10 this section, the employee shall comply with the requirements
 
11 specified in subsection (b).
 
12      (b)  An employee who elects to retire and receive the early
 
13 retirement incentive under this section shall notify the
 
14 employee's department by filing a formal application for
 
15 retirement not less than thirty days nor more than ninety days
 
16 prior to the date of retirement.
 
17      (c)  Notwithstanding the age and length of service
 
18 requirements of sections 88-73 and 88-281, Hawaii Revised
 
19 Statutes, an employee shall qualify for the early retirement
 
20 incentive if, on the member's retirement date, the member meets
 
21 any of the following criteria:
 
22      (1)  Has at least ten years of credited service as a
 
23           contributory class A or B member and is at least fifty
 

 
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 1           years of age;
 
 2      (2)  Has at least twenty years of credited service as a
 
 3           contributory class A or B member, irrespective of age;
 
 4      (3)  Has at least ten years of credited service as a
 
 5           noncontributory class C member and is at least fifty-
 
 6           seven years of age; or
 
 7      (4)  Has at least twenty-five years of credited service as a
 
 8           noncontributory class C member, irrespective of age.
 
 9      (d)  Any employee who exercises the option of early
 
10 retirement under this section who does not qualify with respect
 
11 to the age and length of service requirements under section
 
12 88-73, Hawaii Revised Statutes, to receive a retirement benefit
 
13 without penalty, shall not have the retirement benefit reduced in
 
14 accordance with the actuarial formula normally used by the
 
15 employees' retirement system for the calculation of early
 
16 retirement benefits.
 
17      (e)  The member shall forfeit any benefit derived from the
 
18 early retirement incentive, as determined by the board of
 
19 trustees of the employee's retirement system, upon subsequent
 
20 reentry into the employees' retirement system.
 
21      (f)  The heads of all affected state departments and the
 
22 chief executive of participating county shall transmit a list of
 
23 employees whose positions are eliminated and who elected and
 

 
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 1 received early retirement incentives under this section to the
 
 2 board of trustees of the employees' retirement system not less
 
 3 than thirty days but not more than ninety days prior to the
 
 4 employees' retirement dates.  The heads of the affected
 
 5 department or chief executive of the county 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 119 of this Act and any
 
 9 reduction-in-force rights to which employees may have been
 
10 entitled.
 
11      SECTION 121.  All positions vacated by employees who are
 
12 provided a voluntary severance benefit under section 119 of this
 
13 Act or an early retirement incentive under section 120 of this
 
14 Act shall be abolished upon the employees' separation from
 
15 service.  All funds allocated for the salary of the position
 
16 vacated and abolished pursuant to this part shall be lapsed to
 
17 the appropriate fund from which the position is funded, as
 
18 applicable, upon the separation of the employee and after the
 
19 deduction of amounts sufficient to cover the voluntary severance
 
20 benefit or the costs, direct or indirect, associated with the
 
21 retiring employee's early retirement incentive, and the
 
22 accumulated vacation leave of the employee who occupied the
 
23 position.
 

 
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 1      All state departments affected by the voluntary severance
 
 2 benefit and early retirement incentive authorized by this part
 
 3 shall reduce its personnel count by the equivalent of each
 
 4 voluntary severance benefit and each early retirement incentive
 
 5 conferred.  Each state department shall forward a report on the
 
 6 positions affected to the directors of finance and human
 
 7 resources development who shall then abolish the vacated
 
 8 positions from the appropriate budget and personnel data files.
 
 9      Each participating county shall initiate appropriate action
 
10 to abolish vacated positions from the appropriate budget and
 
11 personnel files.
 
12      SECTION 122.  The department of human resources development
 
13 and the department of budget and finance for the State and the
 
14 respective county directors of personnel and finance for the
 
15 participating county shall develop guidelines for participating
 
16 agencies to facilitate the implementation of the voluntary
 
17 severance benefit provided in section 119 of this Act and the
 
18 early retirement incentive provided in section 120 of this Act.
 
19      SECTION 123.  The department of human resources development,
 
20 in cooperation with the employees' retirement system, shall for
 
21 the State and the county director of personnel and employees
 
22 retirement system shall for the participating county provide
 
23 briefings prior to the implementation of any strategic workforce
 

 
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 1 reduction plan to educate those employees whose positions are
 
 2 being eliminated.
 
 3      SECTION 124.  The governor and respective mayors for each
 
 4 participating county shall report to the legislature no later
 
 5 than twenty days prior to the convening of each regular session
 
 6 on the restructuring or reengineering activities initiated within
 
 7 the various departments and the positions abolished by offering a
 
 8 voluntary severance benefit or an early retirement incentive as a
 
 9 consequence of this part.
 
10      SECTION 125.  The board of trustees of the employees'
 
11 retirement system shall make payments with respect to all
 
12 eligible employees who retire pursuant to section 120 of this
 
13 Act.  The board shall determine the portion of the additional
 
14 actuarial present value of benefits to be charged to the State or
 
15 participating county, based on retirements under the early
 
16 retirement incentive program.  If necessary, the State or
 
17 participating county shall make additional payments to the
 
18 employees, retirement system in the amounts required to amortize
 
19 the additional actuarial present value of benefits over a period
 
20 of five years beginning January 1, 2002.
 
21                             PART VII
 
22      SECTION 126.  Chapter 302A, part III, Hawaii Revised
 
23 Statutes, is amended by adding a new section to be appropriately
 
24 designated and to read as follows:
 

 
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 1      "§302A-    School personnel, other than teachers and
 
 2 educational officers engaged in instructional work.  (a)  The
 
 3 board of education shall appoint all personnel that may be
 
 4 required to carry out the purposes of this chapter, prescribe
 
 5 their qualifications and duties, and fix their compensation.  For
 
 6 tenured positions that allow employees to remain in service
 
 7 subject to good behavior and competent service, the board shall
 
 8 establish probationary and other requirements for tenure, adopt
 
 9 classification/compensation plans, classify all positions
 
10 accordingly, and provide a classification appeals procedure.
 
11      (b)  The wages, hours, benefits, specific per capita dollar
 
12 amount of contributions to the Hawaii public employees health
 
13 fund, and other terms and conditions of employment for employees
 
14 in collective bargaining units shall be negotiated in accordance
 
15 with chapter 89.  The wages, hours, benefits, specific per capita
 
16 dollar amount of contributions to the Hawaii public employees
 
17 health fund, and other terms and conditions of employment for
 
18 employees excluded from collective bargaining coverage shall be
 
19 adjusted in accordance with chapter 89C."
 
20      SECTION 127.  Chapter 312, Hawaii Revised Statutes, is
 
21 amended by adding a new section to be appropriately designated
 
22 and to read as follows:
 

 
 
 
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 1      "§312-    Personnel of the public library system.  (a)  The
 
 2 board of education shall appoint all personnel that may be
 
 3 required to carry of the purposes of this chapter, prescribe
 
 4 their qualifications and duties, and fix their compensation.  For
 
 5 tenured positions that allow employees to remain in service
 
 6 subject to good behavior and competent service, the board shall
 
 7 establish probationary and other requirements for tenure, adopt
 
 8 classification/compensation plans, classify all positions
 
 9 accordingly, and provide a classification appeals procedure.
 
10      (b)  The wages, hours, benefits, specific per capita dollar
 
11 amount of contributions to the Hawaii public employees health
 
12 fund, and other terms and conditions of employment for employees
 
13 in collective bargaining units shall be negotiated in accordance
 
14 with chapter 89.  The wages, hours, benefits, specific per capita
 
15 dollar amount of contributions to the Hawaii public employees
 
16 health fund, and other terms and conditions of employment for
 
17 employees excluded from collective bargaining coverage shall be
 
18 adjusted in accordance with chapter 89C."
 
19                             PART VIII
 
20      SECTION 128.  Section 304-11, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "§304-11  Personnel.  [Personnel] (a)  All personnel of the
 
23 university not subject to [chapters] chapter 76 [and 77] shall be
 

 
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 1 under the direction of a president who shall be appointed by the
 
 2 board of regents.  The board shall appoint [such deans,
 
 3 directors, members of the faculty, and other employees as] all
 
 4 personnel that may be required to carry out the purposes of the
 
 5 institution, prescribe their [salaries and terms of service,
 
 6 where such salaries and terms of service are not specifically
 
 7 fixed by legislative enactment, make and enforce rules governing
 
 8 sabbatical and professional improvement leaves with or without
 
 9 pay, consistent with the practice of similar institutions on the
 
10 mainland, and notwithstanding the laws of the State relating to
 
11 vacations of the officers and employees of the State.]
 
12 qualifications and duties, and fix their compensation.  For
 
13 tenured positions that allow employees to remain in service
 
14 subject to good behavior and competent service, the board shall
 
15 establish probationary and other requirements for tenure, adopt
 
16 classification/compensation plans, classify all positions
 
17 accordingly, and provide a classification appeals procedure.
 
18      (b)  The wages, hours, benefits, specific per capita dollar
 
19 amount of contributions to the Hawaii public employees health
 
20 fund, and other terms and conditions of employment for employees
 
21 in collective bargaining units shall be negotiated in accordance
 
22 with chapter 89.  The wages, hours, benefits, specific per capita
 
23 dollar amount of contributions to the Hawaii public employees
 

 
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 1 health fund, and other terms and conditions of employment for
 
 2 employees excluded from collective bargaining coverage shall be
 
 3 adjusted in accordance with chapter 89C."
 
 4      SECTION 129.  Section 312-1, Hawaii Revised Statutes, is
 
 5 amended to read as follows:
 
 6      "§312-1  Duties of the board of education.  The board of
 
 7 education shall care for, manage, and control all property set
 
 8 apart, donated, loaned to, or in any manner acquired for the use
 
 9 of libraries; receive, care for, expend, and account for any
 
10 money which may be received for the purpose of erecting buildings
 
11 for libraries or for any other purposes of the libraries;
 
12 collect, purchase, receive gifts of, and otherwise acquire all
 
13 books and other publications proper for libraries, and arrange,
 
14 classify, and catalogue the same; provide for their safekeeping;
 
15 expend moneys appropriated by the legislature and otherwise
 
16 acquired for the development, use, support, and maintenance of
 
17 libraries; provide ways and means for placing libraries within
 
18 reach of all residents throughout the State and particularly of
 
19 all public and private school children; provide and maintain
 
20 branch libraries, offices, or places for the distribution of
 
21 books and periodicals throughout the State; make such contracts
 
22 as may be necessary to carry into effect the general duties
 
23 herein imposed; [appoint such officers and employees as it deems
 

 
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 1 necessary;] and make rules for the management and use of
 
 2 libraries, and for the control of the property under its
 
 3 management."
 
 4                              PART IX
 
 5      SECTION 130.  Chapter 77, Hawaii Revised Statutes, is
 
 6 repealed.
 
 7      SECTION 131.  Chapter 79, Leaves of Absence, Hawaii Revised
 
 8 Statutes, is repealed.
 
 9      SECTION 132.  Chapter 80, Hours of Work, Hawaii Revised
 
10 Statutes, is repealed.
 
11      SECTION 133.  Chapter 81, In-Service Training Programs,
 
12 Hawaii Revised Statutes, is repealed.
 
13      SECTION 134.  Chapter 82, Incentive and Service Awards,
 
14 Hawaii Revised Statutes, is repealed.
 
15      SECTION 135.  Chapter 83, Temporary Intergovernmental
 
16 Assignment of Public Employees, Hawaii Revised Statutes, is
 
17 repealed.
 
18      SECTION 136.  Section 302A-634, Hawaii Revised Statutes, is
 
19 repealed.
 
20      ["[§302A-634]  Noncertificated personnel.  (a)  All
 
21 noncertificated administrative, professional, and technical
 
22 personnel not engaged in instructional work shall be placed by
 
23 the department in the appropriate salary ranges within the
 

 
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 1 educational officers schedule.
 
 2      (b)  Beginning with the 1997-1998 school year, this section
 
 3 shall be interpreted as though the term "certificate" read
 
 4 "license" or "credential", as the later terms are used in subpart
 
 5 D, and as circumstances require."]
 
 6      SECTION 137.  Section 302A-635, Hawaii Revised Statutes, is
 
 7 repealed.
 
 8      ["[§302A-635]  Educational assistants.  All educational
 
 9 assistants employed in the department shall be employed under the
 
10 provisions of chapter 76 and shall have their compensation fixed
 
11 in accordance with chapter 77; provided that:
 
12      (1)  The monthly rate of compensation so determined shall be
 
13           multiplied by ten and then divided by twelve and the
 
14           resulting amount shall be the employee's monthly salary
 
15           payable over a twelve-month period;
 
16      (2)  Weekly working hours for educational assistants shall
 
17           be established in the same manner as working hours for
 
18           teachers; and
 
19      (3)  Educational assistants shall have the same vacation and
 
20           sick leave allowances as teachers."]
 
21      SECTION 138.  Section 302A-636, Hawaii Revised Statutes, is
 
22 repealed.
 
23      ["[§302A-636]  Cafeteria managers.  All cafeteria managers
 

 
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 1 employed in the department shall be employed under chapter 76 and
 
 2 shall have their salaries fixed in accordance with chapter 77,
 
 3 and the monthly rates of basic compensation so determined shall
 
 4 be payable over a twelve-month period without proration or
 
 5 deduction for periods when school is not in session.  Cafeteria
 
 6 managers shall have the same vacation and sick leave allowances
 
 7 as school teachers and principals."]
 
 8      SECTION 139.  Section 302A-637, Hawaii Revised Statutes, is
 
 9 repealed.
 
10      ["[§302A-637]  Cafeteria workers.  All cafeteria workers
 
11 employed in the department shall be employed under chapter 76 and
 
12 shall have their compensation fixed in accordance with chapter
 
13 77, and the monthly rates of basic compensation so determined
 
14 shall be payable for employment over a twelve-month period.  All
 
15 cafeteria workers shall be employed on a full-time basis, except
 
16 that a limited number of part-time workers may be employed by the
 
17 department.  No cafeteria worker employed on a part-time basis
 
18 shall work less than twenty hours per week.  The department shall
 
19 establish a schedule, based on factors that determine the need
 
20 for part-time workers, fixing the number of part-time workers
 
21 that may be employed by the department."]
 
22      SECTION 140.  Section 302A-639, Hawaii Revised Statutes, is
 
23 repealed.
 

 
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 1      ["[302A-639]  Houseparents; statewide center for students
 
 2 with hearing and visual impairments.  All houseparents at the
 
 3 statewide center for students with hearing and visual impairments
 
 4 employed in the department shall be employed under chapter 76 and
 
 5 shall have their compensation fixed in accordance with chapter
 
 6 77, and the monthly rates of basic compensation so determined
 
 7 shall be payable for employment over a twelve-month period.  All
 
 8 houseparents shall be employed for twelve months on a full-time
 
 9 basis."]
 
10      SECTION 141.  Section 304-13, Hawaii Revised Statues, is
 
11 repealed.
 
12      ["§304-13  Classification schedule.  The board of regents
 
13 shall classify all members of the faculty of the university
 
14 including research workers, extension agents, and all personnel
 
15 engaged in instructional work as defined in section 76-16 and
 
16 adopt a classification schedule conforming, as nearly as may be
 
17 practical, to the schedules set forth in chapter 77.  The
 
18 department of human resources development of the State shall,
 
19 upon the request of the board of regents, render such assistance
 
20 as may be practicable in connection with such classification.
 
21 The adjustments of compensation to conform with the
 
22 classification shall be made in general accordance, so far as may
 
23 be practical, with chapter 77 relating to state employees.
 

 
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 1      Annual increases of compensation shall be allowable, and
 
 2 shall be allowed, in general accordance, so far as may be
 
 3 practical, with chapter 77, providing for the allowance of annual
 
 4 increases to state employees for efficient service, and the board
 
 5 of regents shall adopt a fair and reasonable plan for rating the
 
 6 efficiency of individual employees affected by this section."]
 
 7                              PART X
 
 8      SECTION 142.  All acts by the legislature during the Regular
 
 9 Session of 2000, whether enacted before or after the effective
 
10 date of this Act, shall be amended to conform to this Act unless
 
11 such acts specifically provide that this Act is being amended.
 
12      SECTION 143.  If any part of this Act is found to be in
 
13 conflict with federal requirements that are a prescribed
 
14 condition for the allocation of federal funds to the State or a
 
15 county, the conflicting part of this Act is inoperative solely to
 
16 the extent of the conflict and with respect to the agencies
 
17 directly affected, and this finding does not affect the operation
 
18 of the remainder of this Act in its application to the agencies
 
19 concerned.  The rules prescribed to implement this Act shall meet
 
20 federal requirements that are a necessary condition to the
 
21 receipt of federal funds by the State.
 
22      SECTION 144.  If any provision of this Act, or the
 
23 application thereof to any person or circumstance is held
 
24 invalid, the invalidity does not affect other provisions or
 

 
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 1 applications of the Act which can be given effect without the
 
 2 invalid provision or application, and to this end the provisions
 
 3 of this Act are severable.
 
 4      SECTION 145.  There is appropriated out of the general
 
 5 revenues of the State of Hawaii the sum of $600,000 for fiscal
 
 6 year 2000-2001, to be paid into the special fund created in
 
 7 section 2 of this Act, section 26-5(e), Hawaii Revised Statutes.
 
 8 The sum appropriated shall be expended by the department of human
 
 9 resources development for the purposes of the fund.
 
10      SECTION 146.  There is appropriated out of the general
 
11 revenues of the State of Hawaii the sum of $128,000 for fiscal
 
12 year 2000-2001, for the REACH (Resource for Employee Assistance
 
13 and Counseling Help) program that provides short-term counseling
 
14 for troubled state employees who need help in dealing with
 
15 personal problems affecting their work performance.  The sum
 
16 appropriated shall be expended by the department of human
 
17 resources development.
 
18      SECTION 147.  There is appropriated out of the employees'
 
19 retirement system's investment earnings the sum of $        , or
 
20 so much thereof as may be necessary for fiscal year 2000-2001,
 
21 for the employees' retirement system to process the early
 
22 retirement incentive elected by state employees in the executive
 

 
 
 
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 1 branch whose positions are being eliminated as authorized in
 
 2 section 120 of this Act.  The sum appropriated shall be expended
 
 3 by the employees' retirement system.
 
 4      SECTION 148.  Between the effective date of this Act and
 
 5 June 30, 2001, any rule, ordinance, executive order, or directive
 
 6 that is not consistent with this Act shall be amended to conform
 
 7 with this Act.  New or amended provisions that must be adopted or
 
 8 enacted to carry out this Act shall not take effect before
 
 9 July 1, 2001.
 
10      SECTION 149.  In codifying the new sections added by this
 
11 Act, the revisor of statutes shall substitute the appropriate
 
12 section numbers for the letters used in designating the new
 
13 sections in sections 82, 104, and 105 of, and referred to in,
 
14 this Act.
 
15      SECTION 150.  Statutory material to be repealed is
 
16 bracketed.  New statutory material is underscored.
 
17      SECTION 151.  This Act shall take effect on July 1, 2010;
 
18 provided that upon approval section 26-5(e), Hawaii Revised
 
19 Statutes, in section 2 of this Act shall take effect; and
 
20 sections 142, 145, 146, 147, 148, 149, 150, and 151 of this Act
 
21 shall take effect on July 1, 2000.