Adjusts the salaries of certain department head positions, including: the auditor, legislative reference bureau, Hawaii labor relations board, ombudsman, state procurement office, the stadium authority, civil defense, commission on water resource management, the housing and community development corporation of Hawaii, the public utilities commission, the Hawaii paroling authority, the labor and industrial relations appeals board, commissioner of financial institutions and the office of the state public defender.

A BILL FOR AN ACT

SECTION 1. This Act addresses the salaries of various department head and the deputy positions that are set by statute. These salaries are tied in with the compensation established by the executive salary commission pursuant to section 26-55, Hawaii Revised Statutes. In the past, these positions were paid at the same level as the department head or deputy department heads that were all paid at the same salary level, as specified by statute. However, in 2004, the executive salary commission determined that department head and deputy positions should be paid at different ranges, as determined by several factors, including marketplace, level of responsibilities, number of employees supervised, and amount of operating budget. Accordingly, it is necessary to revise the statutory authority of certain positions and tie these salaries to the different tiers established by the executive salary commission.

SECTION 2. Section 23-3, Hawaii Revised Statutes, is amended to read as follows:

"§23-3 Salary of the auditor and appropriations. The salary of the auditor shall be fixed by the legislature and shall not be diminished during the auditor's term of office. Effective [January 1, 1989, and January 1, 1990,] July 1, 2005, the salary of the auditor shall be [$81,629 and $85,302 a year, respectively.] the same as the salary of the director of labor and industrial relations.

The funds for the support of the auditor's office shall be provided for in the act providing for the expenses of the legislature."

SECTION 3. Section 23-8, Hawaii Revised Statutes, is amended to read as follows:

"§23-8 Assistance and staff. In the performance of the auditor's duties, the auditor may employ the services of one or more certified public accountants or accounting firms, and [such] other assistants and clerical workers as may be necessary, provided the cost thereof shall not exceed [such] the sums as may be available out of the appropriation provided by law for the conduct of the auditor's office and provided further that [such] the accountants, firms, and assistants are entirely independent of the departments, offices, and agencies of the State and its political subdivisions whose affairs are subject to audit by the auditor. All employees shall be hired by the auditor subject to the approval of the president of the senate and the speaker of the house of representatives and shall serve at the auditor's pleasure; provided that in the establishment of the salary of each employee the auditor shall consult with the department of human resources development and shall follow as closely as possible the recommendations of the department; and provided further that effective [January 1, 1989, and January 1, 1990,] July 1, 2005, the salary of the first assistant or first deputy shall be [$69,748 and $72,886 a year, respectively.] not more than eighty-seven per cent of the salary of the auditor. The auditor and the auditor's full-time staff shall be entitled to participate in any employee benefit program privileges."

SECTION 4. Section 23G-1, Hawaii Revised Statutes, is amended to read as follows:

§23G-1 Legislative reference bureau; director, appointment, tenure, removal, compensation, vacancy. The office of the legislative reference bureau is established. The legislature, by a majority vote of each house in joint session, shall appoint a director for the bureau who shall serve for a period of six years and thereafter until a successor shall have been appointed. The legislature, by two-thirds vote of the members in joint session, may remove or suspend the director from office, but only for neglect of duty, misconduct, or disability.

If the director dies, resigns, becomes ineligible to serve, or is removed or suspended from office, the first assistant to the director shall become the acting director until a new director is appointed.

Effective [January 1, 1989, and January 1, 1990,] July 1, 2005, the salary of the director shall be [$81,629 and $85,302 a year, respectively.] the same as the salary of the director of labor and industrial relations. The salary of the director shall not be diminished during the director's term of office, unless by general law applying to all salaried officers of the State."

SECTION 5. Section 23G-2, Hawaii Revised Statutes, is amended to read as follows:

"§23G-2 Assistant; staff. The director shall appoint a first assistant and [such] other officers and employees as may be necessary to carry out the functions of the bureau. All employees, including the first assistant, shall be hired by the director and shall serve at the director's pleasure. In determining the salary of the employees of the bureau, the director shall consult with the department of human resources development; provided that, effective [January 1, 1989, and January 1, 1990,] July 1, 2005, the salary of the first assistant shall be [$69,748 and $72,886 a year, respectively.] not more than eighty-seven per cent of the salary of the director. The director and the director's full-time staff shall be entitled to participate in any employee benefit program plan or privilege."

SECTION 6. Section 89-5, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The members shall devote full time to their duties as members of the board. [Effective January 1, 1989, and January 1, 1990, the salary of the chairperson of the board shall be set by the governor within the range from $69,748 to $74,608 and $72,886 to $77,966 a year, respectively,] Effective July 1, 2005, the chairperson of the board shall be paid a salary set at eighty-seven per cent of the salary of the director of labor and industrial relations, and the salary of each of the other members shall be ninety-five per cent of the chairperson's salary. No member shall hold any other public office or be in the employment of the State or a county, or any department or agency thereof, or any employee organization during the member's term."

SECTION 7. Section 96-2, Hawaii Revised Statutes, is amended to read as follows:

"§96-2 Ombudsman; office established, appointment, tenure, removal, qualifications, salary, vacancy. The office of ombudsman is established. The legislature, by a majority vote of each house in joint session, shall appoint an ombudsman who shall serve for a period of six years and thereafter until a successor shall have been appointed. An ombudsman may be reappointed but may not serve for more than three terms. The legislature, by two-thirds vote of the members in joint session, may remove or suspend the ombudsman from office, but only for neglect of duty, misconduct, or disability.

No person may serve as ombudsman within two years of the last day on which the person served as a member of the legislature, or while the person is a candidate for or holds any other state office, or while the person is engaged in any other occupation for reward or profit. Effective [January 1, 1989, and January 1, 1990,] July 1, 2005, the salary of the ombudsman shall be [$81,629 and $85,302 a year, respectively.] the same as the salary of the director of labor and industrial relations. The salary of the ombudsman shall not be diminished during the ombudsman's term of office, unless by general law applying to all salaried officers of the State.

If the ombudsman dies, resigns, becomes ineligible to serve, or is removed or suspended from office, the first assistant to the ombudsman becomes the acting ombudsman until a new ombudsman is appointed for a full term."

SECTION 8. Section 96-3, Hawaii Revised Statutes, is amended to read as follows:

"§96-3 Assistance, staff, delegation, funding. The ombudsman shall appoint a first assistant and [such] other officers and employees as may be necessary to carry out this chapter. All employees, including the first assistant, shall be hired by the ombudsman and shall serve at the ombudsman's pleasure. In determining the salary of each [such] employee, the ombudsman shall consult with the department of human resources development and shall follow as closely as possible the recommendations of the department. Effective [January 1, 1989, and January 1, 1990,] July 1, 2005, the first assistant's salary shall be [$69,748 and $72,886 a year, respectively.] not more than eighty-seven per cent of the salary of the ombudsman. The ombudsman and the ombudsman's full-time staff shall be entitled to participate in any employee benefit plan.

The ombudsman may delegate to the ombudsman's appointees any of the ombudsman's duties except those specified in sections 96-12 and 96-13; provided that during the absence of the ombudsman from the island of Oahu, or the ombudsman's temporary inability to exercise and discharge the powers and duties of the ombudsman's office, [such] the powers and duties as contained in sections 96-12 and 96-13 shall devolve upon the first assistant during the ombudsman's absence or inability.

The funds for the support of the office of the ombudsman shall be provided for in the act providing for the expenses of the legislature."

SECTION 9. Section 103D-204, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There shall be a state procurement office, placed for administrative purposes only, within the department of accounting and general services, which shall be headed by the administrator of the state procurement office. The administrator shall be the chief procurement officer for those governmental bodies of the executive branch as provided in section [[]103D-203(a)(7)[]]. The administrator shall be a full-time public official. The administrator shall serve a term of four years, and shall be paid the salary [established for deputies or assistants to department heads under section 26-53] not to exceed eighty-seven per cent of the salary of the director of human resources development, without diminution during the administrator's term of office unless by general law applying to all deputies or assistants to department heads."

SECTION 10. Section 109-2, Hawaii Revised Statutes, is amended to read as follows:

"§109-2 Stadium authority; powers and duties. The powers and duties of the stadium authority shall be as follows:

SECTION 11. Section 128-3, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) There shall be a vice-director of civil defense who shall be appointed and may be removed by the director. The vice-director shall be the first assistant to the director and shall, in the absence of the director, have all the duties and responsibilities of the director. The vice-director shall [receive such compensation as shall be provided pursuant to section 26-53.] be paid a salary not to exceed eighty-seven per cent of the salary of director of human resources development. Chapter 76 shall not apply to the vice-director."

SECTION 12. Section 174C-6, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The salary of the deputy for water resource management shall be as provided in section 26-53 for the first [deputies or first assistants] deputy to the [head of any department.] the chairperson of land and natural resources."

SECTION 13. Section 201G-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The corporation shall employ, exempt from chapter 76 and section 26-35(a)(4), an executive director and an executive assistant. [Effective July 1, 1998, the salary of the executive director shall be set by the governor within the range from $72,886 to $77,966 a year. Effective July 1, 1998, the salary of the executive assistant shall be set by the governor within the range from $65,597 to $70,169 a year.] Effective July 1, 2005, the executive director shall be paid a salary not to exceed eighty-five per cent of the salary of the director of human resources development. Effective July 1, 2005, the executive assistant shall be paid a salary not to exceed ninety per cent of the executive director's salary. The corporation may employ, subject to chapter 76, technical experts and officers, agents, and employees, permanent and temporary, as required. The corporation may also employ officers, agents, and employees; prescribe their duties and qualifications; and fix their salaries, not subject to chapter 76, when in the determination of the corporation, the services to be performed are unique and essential to the execution of the functions of the corporation. The corporation may call upon the attorney general for legal services as it may require. The corporation may delegate to one or more of its agents or employees the powers and duties as it deems proper."

SECTION 14. Section 269-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) [Effective January 1, 1989, and January 1, 1990, the chairperson of the commission shall be paid a salary set by the governor within the range of $69,748 to $74,608 and $72,886 to $77,966 a year, respectively,] Effective July 1, 2005, the chairperson of the commission shall be paid a salary set at eighty-seven per cent of the salary of the director of human resources development, and each of the other commissioners shall be paid a salary equal to ninety-five per cent of the chairperson's salary. The commissioners shall be exempt from chapters 76 and 89 but shall be members of the state employees retirement system and shall be eligible to receive the benefits of any state or federal employee benefit program generally applicable to officers and employees of the State, including those under chapter 87.

The commission is placed within the department of budget and finance for administrative purposes."

SECTION 15. Section 353-63, Hawaii Revised Statutes, is amended to read as follows:

"§353-63 Service of Hawaii paroling authority members; compensation; expenses. The chairperson of the Hawaii paroling authority shall serve on a full-time basis. The other two members shall serve on a part-time basis. [Effective July 1, 1994, the chairperson of the Hawaii paroling authority shall be paid a salary set by the governor within the range of $72,886 to $77,966, a year.] Effective July 1, 2005, the chairperson of the Hawaii paroling authority shall be paid a salary set at eighty-seven per cent of the salary of the director of public safety. The compensation of each of the part-time members shall be eighty per cent of the hourly wage paid the chairperson. For each hour engaged in the official duties of the authority, each part-time member of the authority shall be paid an hourly wage at the percentage rate specified in this section based on the hourly wage paid the chairperson; provided that compensation shall not exceed eighty per cent of the total regular working hours in a month; and provided further that part-time members shall not be entitled to any vacation, sick leave, or other benefits except as provided in this section. All paroling authority members shall receive their necessary expenses for travel and incidentals which shall be paid from appropriations provided the authority for such purposes, on vouchers approved by the director of public safety."

SECTION 16. Section 371-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created a labor and industrial relations appeals board composed of three members nominated and, by and with the advice and consent of the senate, appointed by the governor for terms of ten years each, except that the terms of members first appointed shall be for six, eight, and ten years respectively as designated by the governor at the time of appointments. The governor shall designate the chairperson of the board who shall be an attorney at law licensed to practice in all of the courts of this State. Each member shall hold office until the member's successor is appointed and qualified. Because cumulative experience and continuity in office are essential to the proper handling of appeals under workers' compensation law and other labor laws, it is hereby declared to be in the public interest to continue board members in office as long as efficiency is demonstrated. The members shall devote full time to their duties as members of the board. [Effective January 1, 1989, and January 1, 1990, the salary of the chairperson of the board shall be set by the governor within the range from $69,748 to $74,608 and $72,886 to $77,966 a year, respectively,] Effective July 1, 2005, the chairperson of the board shall be paid a salary set at eighty-seven per cent of the salary of the director of labor and industrial relations, and the salary of each of the other members shall be ninety-five per cent of the chairperson's salary."

SECTION 17. Section 412:2-100, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The salary of the commissioner shall be set by the director of commerce and consumer affairs but shall not be more than the maximum salary of first [deputies] deputy to the [department heads.] director of commerce and consumer affairs."

SECTION 18. Section 802-11, Hawaii Revised Statutes, is amended to read as follows:

"§802-11 Appointment of state public defender. The state public defender shall be appointed by the defender council without regard to chapters 76 and 89. The state public defender's appointment shall be for a term of four years except as otherwise provided herein, and until the state public defender's successor is appointed and qualified. The state public defender shall be qualified to practice law before the supreme court of this State. [Effective January 1, 1989, and January 1, 1990, the salary of the state public defender shall be set by the governor within the range from $69,748 to $74,608 and $72,886 to $77,966 a year, respectively.] Effective July 1, 2005, the state public defender shall be paid a salary set at eighty-seven per cent of the attorney general. The state public defender shall devote full time to the performance of the state public defender's duties and shall not engage in the general practice of law."

SECTION 19. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 20. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 21. This Act shall take effect on July 1, 2005.