REPORT TITLE:
Public Employees


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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3188
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO THE AUTONOMY OF PERSONNEL ADMINISTRATION SYSTEMS.



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

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

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

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

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

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

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

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

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 shall be given to a decent standard of living and to the ability
 
 2 of the people in the State and the respective county to pay for
 
 3 such service.  In order to effectively achieve this purpose, it
 
 4 is the declared policy of the State that the compensation for
 
 5 public employees be set and determined after careful
 
 6 consideration of at least the following factors:
 
 7      (1)  The general economic condition of the State[;] and the
 
 8           respective county;
 
 9      (2)  Conditions of the labor market;
 
10      (3)  The appropriate cost of living index;
 
11      (4)  The minimum standard of living which is compatible with
 
12           decency and health;
 
13      (5)  The amount of compensation which is offered by
 
14           employers competing for labor sought by the government
 
15           with due consideration being given to compensation
 
16           offered or paid of a nonmonetary character and with
 
17           proper concern over apparent economic trends.
 
18      Each director may conduct studies consistent with the
 
19 purposes and policies expressed in this section.  A director may
 
20 enter into cooperative arrangements with other public and private
 
21 agencies in the conduct of such studies."
 
22      SECTION 7.  Section 77-3, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

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

 
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                                     S.B. NO.           
                                                        
                                                        

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

 
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 1      Notwithstanding any other laws to the contrary, each member
 
 2 of the appeals board shall receive $10 per day for each day on
 
 3 which work is done by them in connection with authorized
 
 4 activities of the board, the cost thereof to be met by state
 
 5 legislative appropriations for the appeals board.
 
 6      The appeals board shall meet biennially to] Each director
 
 7 shall receive biennially recommendations and comments relating to
 
 8 the compensation plan[.  The board], shall schedule hearings for
 
 9 pricing appeals from affected persons and parties, and may hold
 
10 public hearings as well.  [At least one biennial appeal hearing
 
11 shall be held in each jurisdiction.]  All petitions for appeal
 
12 shall be filed with the [appeals board] director within twenty
 
13 days from the date of public notice of the tentative compensation
 
14 plan.  Notice of the time and place of the appeal hearings shall
 
15 be given in the jurisdiction at least ten days prior to the
 
16 hearings.
 
17      [The appeals board shall function independently of the
 
18 conference of personnel directors and the several civil service
 
19 departments of the State and the counties, but may procure office
 
20 facilities and clerical assistance from them.  The board] Each
 
21 director may appoint technical and other employees not subject to
 
22 chapters 76 and 77, that [it] the director deems necessary[.
 
23 Neither the appeals board nor any of its members or staff shall
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 consult with any member of the conference of personnel directors
 
 2 on any matter pending before the board except on notice and
 
 3 opportunity for the appealing employee or the employee's
 
 4 representative to participate.
 
 5      The appeals board may appoint], including a qualified
 
 6 hearings officer[, not subject to chapters 76 and 77, and invest
 
 7 the hearings officer] vested with power to hear the appeals and
 
 8 report thereon to the [appeals board.  The appeals board]
 
 9 director.  The director shall adopt policies and standards
 
10 relative to compensation[.  The appeals board] and may make rules
 
11 [and regulations] for the conduct of appeal hearings and public
 
12 hearings.
 
13      (d)  Based on the policies and standards referred to in
 
14 subsection (c), [the appeals board] each director shall make
 
15 whatever adjustments to the affected classes where the appeals
 
16 have been filed in the compensation plan that are necessary.
 
17 Decisions on changes to the compensation plan [shall be made on
 
18 the basis of majority vote,] shall be in writing and accompanied
 
19 by separate findings[, and shall be binding on all jurisdictions.
 
20 Each jurisdiction shall be entitled to one vote.  In the event a
 
21 commissioner is absent, the alternate of that jurisdiction shall
 
22 vote in the commissioner's stead].
 
23      The final adjustments to the compensation plan shall be
 
24 completed by the third Wednesday of January of each even-numbered
 

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

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

 
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                                     S.B. NO.           
                                                        
                                                        

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

 
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                                     S.B. NO.           
                                                        
                                                        

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

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

 
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 1                     Final adjustment by the [board] director to
 
 2                the compensation plan shall be in accordance with
 
 3                its established policies and standards relative to
 
 4                compensation.  The [board] director shall complete
 
 5                [its] the final adjustments by the third Wednesday
 
 6                in January of every even-numbered year.
 
 7                     Following the final adjustment, [the
 
 8                conference of personnel directors shall submit to
 
 9                the state legislature, through the office of the
 
10                governor,] each director shall submit to the
 
11                appropriate legislative body, through the office
 
12                of the respective chief executive, a report
 
13                setting forth the final compensation plan and the
 
14                cost thereof for its information and approval.
 
15                The effective date of the approved plans shall be
 
16                July 1 of every even-numbered year.
 
17      (5)  Subsequent implementation of the compensation plan.
 
18           The compensation plan for positions covered under this
 
19           section shall be reviewed and adjusted biennially in
 
20           accordance with paragraph (4)."
 
21      SECTION 10.  Section 77-10, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 
23      "§77-10  Compensation adjustments; rules.(a)  The state
 
24 director or the county commissions shall adopt rules to provide
 

 
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                                     S.B. NO.           
                                                        
                                                        

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

 
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 1      [(d)  The rules shall be adopted only after joint conference
 
 2 of the state director and all county commissions and shall be
 
 3 uniformly applied and interpreted throughout the State and the
 
 4 several counties.
 
 5      (e)] (d)  The rules shall give proper consideration to merit
 
 6 principles of employment, requirements of model conversion plans,
 
 7 and due recognition to length of service in the event of
 
 8 demotions resulting from physical conditions.  The rules shall
 
 9 provide for methods of pay adjustment which may, in the event of
 
10 nondisciplinary, involuntary movements or reassignments to lower
 
11 pay ranges, include the payment of a temporary differential which
 
12 is not to be considered as an adjustment to an employee's base
 
13 pay.  In no event may an employee's base pay exceed the maximum
 
14 step of a lower pay range, or be increased to an amount which
 
15 will exceed the maximum step of a higher pay range, when the
 
16 employee moves or is reassigned to a different pay range.  The
 
17 employee's service anniversary date shall not change.  No rule
 
18 shall be applied in any way in violation of sound merit
 
19 principles."
 
20      SECTION 11.  Section 77-13, Hawaii Revised Statutes, is
 
21 amended by amending subsection (a) to read as follows:
 
22      "(a)  The salary structures for white-collar positions
 
23 covered under this chapter shall be comprised of thirty-one
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1 salary ranges, designated SR 4 to SR 31, SC-1, SC-2, and SC-3.
 
 2 In the publication of pay schedules, however, salary ranges may
 
 3 be redesignated and salary ranges which are not being used may be
 
 4 excluded from the respective pay schedules; provided that if SC
 
 5 ranges are being used, they shall be identified as such so that
 
 6 subsection (d) remains applicable.  [Each salary range shall
 
 7 consist of ten steps, designated B to G and L-1 to L-4; provided
 
 8 that range SC-2 shall consist of nine steps, designated B to G,
 
 9 L-1, L-2, and L-3, and range SC-3 shall consist of eight steps,
 
10 designated B to G, L-1, and L-2.]"
 
11      SECTION 12.  Section 77-13, Hawaii Revised Statutes, is
 
12 amended by amending subsection (d) to read as follows:
 
13      "(d)  Salary ranges SC-1, SC-2, and SC-3 shall be utilized
 
14 in the following manner:
 
15      (1)  Salary ranges SC-1, SC-2, and SC-3 may be utilized by
 
16           the State, the judiciary, counties, and the Hawaii
 
17           health systems corporation for physician and
 
18           psychiatrist positions;
 
19      (2)  No position shall be classified and paid in salary
 
20           ranges SC-1, SC-2, and SC-3 unless specifically
 
21           recommended by the director of human resources
 
22           development and approved by the governor, recommended
 
23           by the administrative director of the courts and
 

 
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                                     S.B. NO.           
                                                        
                                                        

 
 1           approved by the chief justice, or recommended by the
 
 2           personnel director of a county and approved by the
 
 3           respective council and mayor or recommended by the
 
 4           Hawaii health systems corporation chief executive
 
 5           officer's designee and approved by the chief executive
 
 6           officer;
 
 7      (3)  There shall be at any given period not more than
 
 8           sixteen positions classified and paid in salary ranges
 
 9           SC-1, SC-2, and SC-3 by the State, not more than two
 
10           positions classified and paid in salary ranges SC-1,
 
11           SC-2, and SC-3 by the judiciary, and not more than
 
12           eight positions classified and paid in salary ranges
 
13           SC-1, SC-2, and SC-3 by any county.  Psychiatrist and
 
14           physician positions shall be excluded from the above-
 
15           mentioned totals; and
 
16      (4)  The director of human resources development, the
 
17           administrative director of the courts, and the
 
18           personnel directors of each county shall report
 
19           annually to the [legislature] appropriate legislative
 
20           body as to the manner in which the positions assigned
 
21           to salary ranges SC-1, SC-2, and SC-3 are being used."
 
22      SECTION 13.  Section 77-13.1, Hawaii Revised Statutes, is
 
23 amended by amending subsections (a) and (b) to read as follows:
 

 
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                                     S.B. NO.           
                                                        
                                                        

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

 
Page 24                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 compensation of officers and employees of the State and [its
 
 2 municipal subdivisions] the counties shall be adopted by the
 
 3 respective personnel directors of the State and [its municipal
 
 4 subdivisions,] the counties, subject to the approval of the
 
 5 governor for the state rules, the mayor of the city and county of
 
 6 Honolulu for the rules of the city and county, and the chief
 
 7 executive officer for the rules of each of the counties of
 
 8 Hawaii, Kauai, and Maui.  [The rules shall obtain, so far as
 
 9 possible, uniformity and practicability in the application of
 
10 this section.]"
 
11      SECTION 15.  Section 89-1, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "§89-1 Statement of findings and policy.  The legislature
 
14 finds that joint decision-making is the modern way of
 
15 administering government.  Where public employees have been
 
16 granted the right to share in the decision-making process
 
17 affecting wages and working conditions, they have become more
 
18 responsive and better able to exchange ideas and information on
 
19 operations with their administrators.  Accordingly, government is
 
20 made more effective.  The legislature further finds that the
 
21 enactment of positive legislation establishing guidelines for
 
22 public employment relations is the best way to harness and direct
 
23 the energies of public employees eager to have a voice in
 

 
Page 25                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 26                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 representative to meet at reasonable times, to confer and
 
 2 negotiate in good faith, and to execute a written agreement with
 
 3 respect to wages, hours, amounts of an employer's contributions
 
 4 [by the State and counties] to the Hawaii public employees health
 
 5 fund, and other terms and conditions of employment, except that
 
 6 by any such obligation neither party shall be compelled to agree
 
 7 to a proposal, or be required to make a concession.
 
 8      "Cost items" includes wages, hours, amounts of an employer's
 
 9 contributions [by the State and counties] to the Hawaii public
 
10 employees health fund, and other terms and conditions of
 
11 employment, the implementation of which requires an appropriation
 
12 by a legislative body."
 
13      2.  By amending the definition of "employee organization" to
 
14 read:
 
15      ""Employee organization" means any organization of any kind
 
16 in which public employees participate and which exists for the
 
17 primary purpose of dealing with public employers concerning
 
18 grievances, labor disputes, wages, hours, amounts of an
 
19 employer's contributions [by the State and counties] to the
 
20 Hawaii public employees health fund, and other terms and
 
21 conditions of employment of public employees."
 
22      3.  By amending the definition of "mediation" to read:
 
23      ""Mediation" means assistance by an impartial third party to
 
24 reconcile an impasse between the public employer and the
 

 
Page 27                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 exclusive representative regarding wages, hours, amounts of an
 
 2 employer's contributions [by the State and counties] to the
 
 3 Hawaii public employees health fund, and other terms and
 
 4 conditions of employment through interpretation, suggestion, and
 
 5 advice to resolve the impasse."
 
 6      SECTION 17.  Section 89-2, Hawaii Revised Statutes, is
 
 7 amended by adding a new definition to be appropriately inserted
 
 8 and to read as follows:
 
 9      ""Jurisdiction" means the State, the city and county of
 
10 Honolulu, the county of Hawaii, the county of Maui, or the county
 
11 of Kauai."
 
12      SECTION 18.  Section 89-6, Hawaii Revised Statutes, is
 
13 amended by amending subsections (a) and (b) to read as follows:
 
14      "(a)  All employees throughout the State or a county within
 
15 any of the following categories shall constitute an appropriate
 
16 bargaining unit[:] of the relevant jurisdiction:
 
17      (1)  Nonsupervisory employees in blue-collar positions;
 
18      (2)  Supervisory employees in blue-collar positions;
 
19      (3)  Nonsupervisory employees in white-collar positions;
 
20      (4)  Supervisory employees in white-collar positions;
 
21      (5)  Teachers and other personnel of the department of
 
22           education under the same salary schedule, including
 
23           part-time employees working less than twenty hours a
 

 
Page 28                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1           week who are equal to one-half of a full-time
 
 2           equivalent;
 
 3      (6)  Educational officers and other personnel of the
 
 4           department of education under the same salary schedule;
 
 5      (7)  Faculty of the University of Hawaii and the community
 
 6           college system;
 
 7      (8)  Personnel of the University of Hawaii and the community
 
 8           college system, other than faculty;
 
 9      (9)  Registered professional nurses;
 
10     (10)  Institutional, health, and correctional workers;
 
11     (11)  Firefighters;
 
12     (12)  Police officers; and
 
13     (13)  Professional and scientific employees, other than
 
14           registered professional nurses.
 
15      Because of the nature of work involved and the essentiality
 
16 of certain occupations that require specialized training, units
 
17 (9) through (13) are designated as optional appropriate
 
18 bargaining units[.]; provided that no separate optional unit
 
19 shall be deemed appropriate within a jurisdiction whenever there
 
20 are, or would be, fewer than ten employees in a separate optional
 
21 unit.  In such case, the board shall include the affected
 
22 employees in another existing appropriate bargaining unit of the
 
23 jurisdiction, after hearing upon due notice, and an election by
 

 
Page 29                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 the employees shall not be required.  Employees in any of these
 
 2 optional units may vote either for separate units or for
 
 3 inclusion in their respective units (1) through (4).  If a
 
 4 majority of the employees in any optional unit desire to
 
 5 constitute a separate appropriate bargaining unit, supervisory
 
 6 employees may be included in the unit by mutual agreement among
 
 7 supervisory and nonsupervisory employees within the unit; if
 
 8 supervisory employees are excluded, the appropriate bargaining
 
 9 unit for these supervisory employees shall be (2) or (4), as the
 
10 case may be.
 
11      The compensation plans for blue-collar positions pursuant to
 
12 section 77-5 and for white-collar positions pursuant to section
 
13 77-13, the salary schedules for teachers pursuant to section
 
14 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, 1970,
 
17 shall be the bases for differentiating blue-collar from white-
 
18 collar employees, professional from institutional, health and
 
19 correctional workers, supervisory from nonsupervisory employees,
 
20 teachers from educational officers, and faculty from nonfaculty.
 
21 In differentiating supervisory from nonsupervisory employees,
 
22 class titles alone shall not be the basis for determination, but,
 
23 in addition, the nature of the work, including whether or not a
 

 
Page 30                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 major portion of the working time of a supervisory employee is
 
 2 spent as part of a crew or team with nonsupervisory employees,
 
 3 shall also be considered.
 
 4      (b)  For the purpose of negotiations, the public employer of
 
 5 an appropriate bargaining unit shall mean the governor or the
 
 6 governor's designated representatives of not less than three
 
 7 together with not more than two members of the board of education
 
 8 in the case of units (5) and (6), the governor or the governor's
 
 9 designated representatives of not less than three together with
 
10 not more than two members of the board of regents of the
 
11 University of Hawaii in the case of units (7) and (8)[, and the
 
12 governor or the governor's designated representatives together
 
13 with the mayors of all the counties or their designated
 
14 representatives in the case of the remaining units].  The
 
15 designated employer representatives for units (5), (6), (7), and
 
16 (8) shall each have one vote [and in the case of the remaining
 
17 units, the governor shall be entitled to four votes and the mayor
 
18 of each county shall each have one vote, which may be assigned to
 
19 their designated representatives.  Any] and any decision to be
 
20 reached [by the applicable employer group] shall be on the basis
 
21 of simple majority.  With respect to the remaining bargaining
 
22 units, the public employer shall mean the governor or the
 
23 governor's designated representatives, in the case of bargaining
 
24 units for a county."
 

 
Page 31                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1      SECTION 19.  Section 89-8, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§89-8 Recognition and representation; employee
 
 4 participation.(a)  The employee organization which has been
 
 5 certified by the board as representing the majority of employees
 
 6 in an appropriate bargaining unit shall be the exclusive
 
 7 representative of all employees in the unit.  As exclusive
 
 8 representative, it shall have the right to act for and negotiate
 
 9 agreements covering all employees in the unit and shall be
 
10 responsible for representing the interests of all such employees
 
11 without discrimination and without regard to employee
 
12 organization membership.
 
13      (b)  Any other provision [herein] in this chapter to the
 
14 contrary notwithstanding, whenever two or more employee
 
15 organizations which have been duly certified by the board as the
 
16 exclusive representatives of employees in bargaining units merge,
 
17 combine, or amalgamate or enter into an agreement for common
 
18 administration or operation of their affairs, all rights and
 
19 duties of such employee organizations as exclusive
 
20 representatives of employees in such units shall inure to and
 
21 shall be discharged by the organization resulting from such
 
22 merger, combination, amalgamation, or agreement, either alone or
 
23 with such employee organizations.  Election by the employees in
 

 
Page 32                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 the unit involved, and certification by the board of such
 
 2 resulting employee organization shall not be required.
 
 3      (c)  Notwithstanding any other law to the contrary, the
 
 4 employee organization which has been certified by the board as
 
 5 the exclusive representative of an appropriate bargaining unit
 
 6 for employees throughout the State shall continue as the
 
 7 exclusive representative of the respective appropriate bargaining
 
 8 units for employees within each jurisdiction which has employees
 
 9 in the unit on the effective date of this Act; provided that, if
 
10 there are fewer than ten employees in any optional bargaining
 
11 unit, section 89-6(a) shall apply.  The board shall issue
 
12 certifications recognizing the employee organization as the
 
13 exclusive representative for the respective appropriate
 
14 bargaining units of each jurisdiction and no election shall be
 
15 required.
 
16      [(b)] (d)  An individual employee may present a grievance at
 
17 any time to the employee's employer and have the grievance heard
 
18 without intervention of an employee organization; provided that
 
19 the exclusive representative is afforded the opportunity to be
 
20 present at such conferences and that any adjustment made shall
 
21 not be inconsistent with the terms of an agreement then in effect
 
22 between the employer and the exclusive representative.
 
23      [(c)] (e)  Employee participation in the collective
 
24 bargaining process conducted by the exclusive representative of
 

 
Page 33                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 the appropriate bargaining unit shall be permitted during regular
 
 2 working hours without loss of regular salary or wages.  [The
 
 3 number of participants from each bargaining unit with over 2,500
 
 4 members shall be limited to one member for each five hundred
 
 5 members of the bargaining unit.  For bargaining units with less
 
 6 than 2,500 members, there shall be at least five participants,
 
 7 one of whom shall reside in each county; provided that there need
 
 8 not be a participant residing in each county for the bargaining
 
 9 unit established by section 89-6(a)(8).  The bargaining unit
 
10 shall select the participants] Participants for each bargaining
 
11 unit shall be limited to a reasonable number as mutually agreed
 
12 upon between the employer and the exclusive representative and
 
13 shall be selected by the bargaining unit from representative
 
14 departments, divisions, or sections to minimize interference with
 
15 the normal operations and service of the departments, divisions,
 
16 or sections."
 
17      SECTION 20.  Section 89-9, Hawaii Revised Statutes, is
 
18 amended as follows:
 
19      1.  By amending subsection (a) to read:
 
20      "(a)  The employer and the exclusive representative shall
 
21 meet at reasonable times, including meetings in advance of the
 
22 employer's budget-making process, and shall negotiate in good
 
23 faith with respect to wages, hours, the number of incremental and
 

 
Page 34                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 longevity steps and movement between steps within the salary
 
 2 range, the amounts of an employer's  contributions [by the State
 
 3 and respective counties] to the Hawaii public employees health
 
 4 fund to the extent allowed in subsection (e), and other terms and
 
 5 conditions of employment which are subject to negotiations under
 
 6 this chapter and which are to be embodied in a written agreement,
 
 7 or any question arising thereunder, but such obligation does not
 
 8 compel either party to agree to a proposal or make a concession;
 
 9 provided that the parties may not negotiate with respect to cost
 
10 items as defined by section 89-2 for the biennium 1999 to 2001,
 
11 and the cost items of employees in bargaining units under section
 
12 89-6 in effect on June 30, 1999, shall remain in effect until
 
13 July 1, 2001."
 
14      2.  By amending subsections (d) and (e) to read as follows:
 
15      "(d)  Excluded from the subjects of negotiations are matters
 
16 of classification and reclassification, benefits of but not
 
17 contributions to the Hawaii public employees health fund,
 
18 retirement benefits except as provided in section 88-8(h), and
 
19 the salary ranges now provided by law; provided that the number
 
20 of incremental and longevity steps, the amount of wages to be
 
21 paid in each range and step, and movement between steps within
 
22 the salary range shall be negotiable.  The employer and the
 
23 exclusive representative shall not agree to any proposal which
 

 
Page 35                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 would be inconsistent with merit principles [or the principle of
 
 2 equal pay for equal work pursuant to sections 76-1, 76-2, 77-31,
 
 3 and 77-33,] pursuant to section 76-1 or which would interfere
 
 4 with the rights of a public employer to (1) direct employees; (2)
 
 5 determine [qualification,] qualifications, standards for work,
 
 6 the nature and contents of examinations, hire, promote, transfer,
 
 7 assign, and retain employees in positions and suspend, demote,
 
 8 discharge, or take other disciplinary action against employees
 
 9 for proper cause; (3) relieve an employee from duties because of
 
10 lack of work or other legitimate reason; (4) maintain efficiency
 
11 of government operations; (5) determine methods, means, and
 
12 personnel by which the employer's operations are to be conducted;
 
13 and (6) take such actions as may be necessary to carry out the
 
14 missions of the employer in cases of emergencies; provided that
 
15 the employer and the exclusive representative may negotiate
 
16 procedures governing the promotion and transfer of employees to
 
17 positions within a bargaining unit, procedures governing the
 
18 suspension, demotion, discharge or other disciplinary actions
 
19 taken against employees, and procedures governing the layoff of
 
20 employees; provided further that violations of the procedures so
 
21 negotiated may be the subject of a grievance process agreed to by
 
22 the employer and the exclusive representative.
 
23      (e)  Negotiations relating to contributions to the Hawaii
 
24 public employees health fund shall be for the purpose of agreeing
 

 
Page 36                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 37                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 legislative body may approve or reject the cost items submitted
 
 2 to [them, as a whole.  If the state legislature or the
 
 3 legislative body of any county rejects] it and if any of the cost
 
 4 items [submitted to them,] are rejected, all cost items submitted
 
 5 shall be deemed rejected and returned to the parties for further
 
 6 bargaining[.] if:
 
 7      (1)  The appropriate legislative body rejects any of the
 
 8           cost items submitted to it;
 
 9      (2)  The state legislature adjourns the regular session or
 
10           special session without approving the appropriation
 
11           request for cost items; or
 
12      (3)  The calendar year ends without a county's approval of
 
13           the appropriation request."
 
14      SECTION 22.  Section 89-11, Hawaii Revised Statutes, is
 
15 amended by amending subsections (b), (c), and (d) to read as
 
16 follows:
 
17      "(b)  A public employer shall have the power to enter into
 
18 written agreement with the exclusive representative of an
 
19 appropriate bargaining unit setting forth an impasse procedure
 
20 culminating in a final and binding decision, to be invoked in the
 
21 event of an impasse over the terms of an initial or renewed
 
22 agreement.  In the absence of such a procedure, either party may
 
23 request the assistance of the board by submitting to the board
 

 
Page 38                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 39                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 40                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 41                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 42                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 43                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 44                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 45                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 Hawaii public employees health fund which each party is proposing
 
 2 for inclusion in the final agreement.
 
 3      Within twenty calendar days of its appointment, the
 
 4 arbitration panel shall commence a hearing at which time the
 
 5 parties may submit either in writing or through oral testimony,
 
 6 all information or data supporting their respective final offers.
 
 7 Nothing in this section shall be construed to prohibit the
 
 8 parties from reaching a voluntary settlement on the unresolved
 
 9 issues, with or without the assistance of a mediator, at any time
 
10 prior to the conclusion of the hearing conducted by the
 
11 arbitration panel.
 
12      Within thirty calendar days after the conclusion of the
 
13 hearing, a majority of the arbitration panel shall issue a final
 
14 and binding decision.
 
15      In reaching a decision, the arbitration panel shall give
 
16 weight to the factors listed below and shall include in a written
 
17 opinion [an] a full and complete explanation of how the factors
 
18 were taken into account in reaching the decision:
 
19      (1)  The lawful authority of the employer[.] including, but
 
20           not limited to, federal restrictions on the ability of
 
21           the employer to access special funds or other
 
22           restrictions on the ability of the employer to access
 
23           funds that are authorized to be used only for a
 
24           specific purpose.
 

 
Page 46                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1      (2)  Stipulations of the parties.
 
 2      (3)  [The] Due consideration to the interests and welfare of
 
 3           the public[.] that shall not be compromised or
 
 4           diminished because of the need to fund new or enhanced
 
 5           cost items by reallocating funds from current levels of
 
 6           services or programs previously authorized by the
 
 7           legislature.
 
 8      (4)  The financial ability of the employer to meet these
 
 9           costs[.]; provided that the employer's ability to fund
 
10           cost items shall not be predicated on the premise that
 
11           the employer may increase or impose new taxes, fees, or
 
12           charges, or develop other sources of revenues.
 
13      (5)  The present and future general economic condition of
 
14           [the counties and] the State[.] and the respective
 
15           county; provided that any revenue estimates exceeding
 
16           the latest council of revenue estimates reported
 
17           pursuant to section 37-11, which are used by the state
 
18           executive branch to prepare the State's financial plan,
 
19           shall not be considered. 
 
20      (6)  Comparison of wages, hours, and conditions of
 
21           employment of the employees involved in the arbitration
 
22           proceeding with the wages, hours, and conditions of
 
23           employment of other persons performing similar
 

 
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 1           services[,] in Hawaii, and of other state and county
 
 2           employees in Hawaii[.]; provided that with respect to a
 
 3           bargaining unit that has historically recruited on a
 
 4           national level, the comparison shall be with the wages,
 
 5           hours, benefits, and other conditions of employment of
 
 6           other persons performing similar services across the
 
 7           nation.
 
 8      (7)  The average consumer prices for goods or services,
 
 9           commonly known as the cost of living[.], including
 
10           comparison of the rate of change in Hawaii with the
 
11           rate of change nationally.
 
12      (8)  The overall compensation presently received by the
 
13           employees, including direct wage compensation,
 
14           vacation, holidays and excused time, insurance and
 
15           pensions, medical and hospitalization benefits, the
 
16           continuity and stability of employment, and all other
 
17           benefits received.
 
18      (9)  Changes in any of the foregoing circumstances during
 
19           the pendency of the arbitration proceedings.
 
20     (10)  Such other factors, not confined to the foregoing,
 
21           which are normally or traditionally taken into
 
22           consideration in the determination of wages, hours, and
 
23           conditions of employment through voluntary collective
 

 
Page 48                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1           bargaining, mediation, fact-finding, arbitration, or
 
 2           otherwise between the parties, in the public service or
 
 3           in private employment.
 
 4      The decision of the arbitration panel shall be final and
 
 5 binding upon the parties on all provisions submitted to the
 
 6 arbitration panel.  If the parties have reached agreement with
 
 7 respect to the amounts of the employer's contributions [by the
 
 8 State and counties] to the Hawaii public employees health fund by
 
 9 the tenth working day after the arbitration panel issues its
 
10 decision, the final and binding agreement of the parties on all
 
11 provisions shall consist of the panel's decision and the amounts
 
12 of contributions agreed to by the parties.  If the parties have
 
13 not reached agreement with respect to the amounts of the
 
14 employer's contributions [by the State and counties] to the
 
15 Hawaii public employees health fund by the close of business on
 
16 the tenth working day after the arbitration panel issues its
 
17 decision, the parties shall have five days to submit their
 
18 respective recommendations for such contributions to the
 
19 legislature, if it is in session, and if the legislature is not
 
20 in session, the parties shall submit their respective
 
21 recommendations for such contributions to the legislature during
 
22 the next session of the legislature.  In such event, the final
 
23 and binding agreement of the parties on all provisions shall
 
24 consist of the panel's decision and the amounts of contributions
 

 
Page 49                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 established by the legislature by enactment, after the
 
 2 legislature has considered the recommendations for such
 
 3 contributions by the parties.  It is strictly understood that no
 
 4 member of a bargaining unit subject to this subsection shall be
 
 5 allowed to participate in a strike on the issue of the amounts of
 
 6 the employer's contributions [by the State and counties] to the
 
 7 Hawaii public employees health fund.  The parties shall take
 
 8 whatever action is necessary to carry out and effectuate the
 
 9 final and binding agreement.  The parties may, at any time and by
 
10 mutual agreement, amend or modify the panel's decision.
 
11      Agreements reached pursuant to the decision of an
 
12 arbitration panel and the amounts of the employer's contributions
 
13 [by the State and counties] to the Hawaii public employees health
 
14 fund, as provided herein, shall not be subject to ratification by
 
15 the employees concerned.  All items requiring any moneys for
 
16 implementation shall be subject to [appropriations] approval by
 
17 the appropriate legislative [bodies and the employer shall submit
 
18 all such items within ten days after the date on which the
 
19 agreement is entered into as provided herein, to the appropriate
 
20 legislative bodies.] body pursuant to section 89-10(b).
 
21      The costs for mediation shall be borne by the board.  All
 
22 other costs incurred by either party in complying with these
 

 
 
 
Page 50                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 provisions, including the costs of its selected member on the
 
 2 arbitration panel, shall be borne by the party incurring them,
 
 3 except that all costs and expenses of the impartial arbitrator
 
 4 shall be borne equally by the parties."
 
 5      SECTION 23.  Section 89A-1, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "§89A-1 Office of collective bargaining in the state
 
 8 government established.  There shall be established an office of
 
 9 collective bargaining in the office of the governor to assist the
 
10 governor in negotiating with and entering into written agreements
 
11 between the [public employers] State and the exclusive
 
12 representatives on matters of wages, hours, and other negotiable
 
13 terms and conditions of employment.
 
14      The position of chief negotiator for the State is hereby
 
15 established to head the office.  The chief negotiator shall be
 
16 experienced in labor relations.  The governor shall appoint and
 
17 remove the chief negotiator and the deputy negotiators, who shall
 
18 not be subject to chapters 76, 77, and 89.  Effective January 1,
 
19 1989, and January 1, 1990, the salary of the chief negotiator
 
20 shall be set by the governor within the range from $69,748 to
 
21 $74,608 and $72,886 to $77,966 a year, respectively.  The chief
 
22 negotiator and deputy negotiators shall be included in any
 
23 benefit program generally applicable to the officers and
 

 
Page 51                                                    3188
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 1 employees of the State.  All other employees shall be appointed
 
 2 in accordance with chapters 76 and 77.  [The chief negotiator
 
 3 shall serve as one of the governor's designated representatives
 
 4 as set forth in section 89-6(b).]"
 
 5      SECTION 24.  Section 89C-1, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7      "§89C-1 Purpose.  The legislature finds that existing
 
 8 statutes do not permit the respective chief executives of the
 
 9 State and counties, the board of education, the board of regents,
 
10 the auditor, the director of the legislative reference bureau,
 
11 the ombudsman, and the chief justice of the supreme court
 
12 sufficient flexibility to make appropriate and timely adjustments
 
13 in the compensation, hours, terms, and conditions of employment,
 
14 amounts of an employer's contributions [by the State and
 
15 respective counties] to the Hawaii public employees health fund,
 
16 and other benefits for their public officers and employees who
 
17 are excluded from collective bargaining coverage under chapter
 
18 89.  To this end, the legislature grants to the respective chief
 
19 executives, the board of education, the board of regents, the
 
20 auditor, the director of the legislative reference bureau, the
 
21 ombudsman, and the chief justice, the authority to make such
 
22 adjustments for their officers and employees excluded from
 
23 collective bargaining in conformance with this chapter.
 

 
Page 52                                                    3188
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 1      Nothing in this chapter shall be construed to interfere with
 
 2 or diminish any authority already provided by statutes to the
 
 3 chief executives, the board of education, the board of regents,
 
 4 the auditor, the director of the legislative reference bureau,
 
 5 the ombudsman, or the chief justice."
 
 6      SECTION 25.  Section 89C-2, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§89C-2 Adjustments authorized; limitations, restrictions.
 
 9 Any provision of law to the contrary notwithstanding, the
 
10 compensation, hours, terms, and conditions of employment, amounts
 
11 of an employer's contributions [by the State and respective
 
12 counties] to the Hawaii public employees health fund, and other
 
13 benefits for public officers and employees who are excluded from
 
14 collective bargaining shall be adjusted by the respective chief
 
15 executives of the State or counties, the board of education, the
 
16 board of regents, the auditor, the director of the legislative
 
17 reference bureau, the ombudsman, or the chief justice, as
 
18 applicable.  The respective chief executives, the board of
 
19 education, the board of regents, the auditor, the director of the
 
20 legislative reference bureau, the ombudsman, and the chief
 
21 justice, or their designated representatives, shall determine the
 
22 adjustments to be made and which excluded officers or employees
 
23 are to be granted adjustments under this chapter, in accordance
 
24 with the following guidelines and limitations:
 

 
Page 53                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 54                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 55                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1      SECTION 26.  Section 89C-3, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§89C-3 Adjustments for officers and employees covered by
 
 4 chapter 77.  The state director of human resources development
 
 5 [and], the directors of personnel services of the counties [who
 
 6 shall serve as representatives of their respective chief
 
 7 executives], and the administrative director of the courts [who
 
 8 shall serve as the representative of the chief justice, shall
 
 9 decide by majority vote on the adjustments] shall submit to their
 
10 respective chief executives and to the chief justice,
 
11 recommendations on the adjustments to be made under this chapter
 
12 for officers and employees covered under chapter 77[.  Any
 
13 adjustments and their effective dates shall be uniform among the
 
14 jurisdictions.] within their respective personnel systems."
 
15      SECTION 27.  Section 89C-4, Hawaii Revised Statutes, is
 
16 amended by amending subsection (a) to read as follows:
 
17      "(a)  The respective representatives of the State, counties,
 
18 and the judiciary shall submit to their respective chief
 
19 executives and to the chief justice, recommendations on the
 
20 adjustments to be made under this chapter for other officers and
 
21 employees within their respective personnel systems.  [The
 
22 conference of personnel directors shall confer prior to the
 
23 submittal of any recommended adjustment by each director to the
 

 
Page 56                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 57                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 58                                                    3188
                                     S.B. NO.           
                                                        
                                                        

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

 
Page 59                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1 uniformity, the several commissioners and directors of the state
 
 2 department of human resources development and of the county
 
 3 departments of civil service, the administrative director of the
 
 4 courts, and the Hawaii health systems corporation chief executive
 
 5 officer's designee shall meet at least once each year at the call
 
 6 of the director of human resources development of the State."]
 
 7      SECTION 30.  Section 76-5, Hawaii Revised Statutes, is
 
 8 repealed.
 
 9      ["§76-5 Furnishing of services and facilities.  Subject to
 
10 the rules of the state department of human resources development,
 
11 the director of human resources development may enter into
 
12 agreements with the judiciary, any county, and the Hawaii health
 
13 systems corporation to furnish services and facilities of the
 
14 state department to the judiciary, any county, and the Hawaii
 
15 health systems corporation in the administration of civil service
 
16 including position classification in the judiciary, any county,
 
17 and the Hawaii health systems corporation.  The agreements may
 
18 provide for the reimbursement to the State of the reasonable
 
19 value of the services and facilities furnished, as determined by
 
20 the director.  The judiciary, all counties, and the Hawaii health
 
21 systems corporation are authorized to enter into the
 
22 agreements."]
 
23      SECTION 31.  Section 76-7, Hawaii Revised Statutes, is
 
24 repealed.
 

 
Page 60                                                    3188
                                     S.B. NO.           
                                                        
                                                        

 
 1      ["§77-7 Appeal board procedure.  It shall be mandatory that
 
 2 the appeal board established under section 77-4(c) shall comply
 
 3 with chapter 91 in all respects."]
 
 4      SECTION 32.  The substantive provisions of this Act shall
 
 5 amend any other conflicting Act enacted by the Regular Session of
 
 6 1996, but nonsubstantive amendments made by this Act shall not
 
 7 supersede any substantive amendments made to chapters 76, 77, 80,
 
 8 89, 89A, and 89C, Hawaii Revised Statutes, by any other Act
 
 9 enacted by this Regular Session of 2000.
 
10      SECTION 33.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 34.  This Act shall take effect upon its approval.
 
13 
 
14                           INTRODUCED BY:  _______________________
 
15 
 
16