HB2857.DOC

SECTION 1. The purpose of this Act is to address certain public employment issues by, among other things:

(1) Dividing certain public employees' collective bargaining units into state and county units;

(2) Repealing, for certain collective bargaining units, mandatory arbitration to resolve an impasse in negotiation for a collective bargaining agreement;

(3) Requiring, in mandatory or voluntary arbitration, the arbitration panel or arbitrator to select one party's final position in its entirety as the final agreement;

(4) Making the amount of health fund contributions for active employees arbitrable for collective bargaining units without the right to strike; and

(5) Requiring a public employer and collective bargaining unit to agree to a single flat dollar amount as the employer's health fund contribution for every employee in the unit who enrolls in a health benefits plan.

The legislature finds that the current system of different public employers' health benefits plan contributions for public employees is not equitable. Public employees who enroll in more costly plans receive higher public employers' contributions than public employees enrolled in less costly plans or not enrolled at all. This Act seeks to rectify the inequity; and

(6) Repeals the group life insurance benefits.

The legislature intends that, for a collective bargaining unit not subject to mandatory arbitration, this Act shall not prohibit voluntary arbitration upon agreement between the pertinent exclusive representative and public employer.

SECTION 2. Section 87A-31, Hawaii Revised Statutes, is amended to read as follows:

"§87A-31 Trust fund; purpose. (a) The fund shall be used to provide employee-beneficiaries and dependent-beneficiaries with health and other benefit plans, and to pay administrative and other expenses of the fund. All assets of the fund are and shall be dedicated to providing health and other benefits plans to the employee-beneficiaries and dependent-beneficiaries in accordance with the terms of those plans and to pay administrative and other expenses of the fund, and shall be used for no other purposes except for those set forth in this section.

(b) The fund, including any earnings on investments, and rate credits or reimbursements from any carrier or self-insured plan and any earning or interest derived therefrom, may be used to stabilize health and other benefit plan rates; provided that the approval of the governor and the legislature shall be necessary to fund administrative and other expenses necessary to effectuate these purposes.

[(~~c) The fund may be used to provide group life insurance benefits to employees to the extent that contributions are provided for group life insurance benefits in sections 87A-32 and 87A-37.~~

~~(d)~~] (c) The fund may assist the State and the counties to implement and administer cafeteria plans authorized under Title 26 United States Code section 125, the Internal Revenue Code of 1986, as amended[~~, and part II of chapter 78~~].

[~~(e)~~] (d) At the discretion of the board, some or all of the fund may be used as a reserve against or to pay the fund's future costs of providing health and other benefits plans established under sections 87A-23 and 87A-37 and any other benefits plans the board establishes for retired employees and their beneficiaries. The board may create separate funds within the fund for this purpose. Each separate fund shall be subject to all of the provisions of this chapter."

SECTION 3. Section 87A-32, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-32[]] State and county contributions[;] for health benefits plan; active employees. [~~(a)~~] The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a monthly contribution equal to the amount established under chapter 89C or specified in the applicable public sector collective bargaining agreements, whichever is appropriate, for each of their respective employee-beneficiaries and employee-beneficiaries with dependent-beneficiaries, which shall be used toward the payment of the costs of [a] the health benefits plan[;] in which the employee-beneficiary is enrolled; provided that:

(1) The monthly contribution shall be a specified dollar amount;

(2) The monthly contribution shall not exceed the actual cost of [a] the health benefits plan in which the employee-beneficiary is enrolled;

(3) If both husband and wife are employee-beneficiaries, and they select a two-party or family plan, the total monthly contribution for them by the State or the county shall not exceed the [~~monthly contribution for a family plan;~~] lesser of the following:

(A) Sum of the contributions to which both are entitled under the applicable collective bargaining agreement or chapter 89C, as applicable; or

(B) Actual cost of the plan; and

(4) If the State or any of the counties establish cafeteria plans in accordance with Title 26, United States Code section 125, the Internal Revenue Code of 1986, as amended, [~~and part II of chapter 78,~~] the monthly contribution for those employee-beneficiaries who participate in a cafeteria plan shall be made through the cafeteria plan, and the payments made by the State or counties shall include their respective contributions to the fund and their employee-beneficiary's share of the cost of the employee-beneficiary's health benefits plan.

[(b) The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a monthly contribution equal to the amount established under chapter 89C or specified in the applicable public sector collective bargaining agreement, whichever is applicable, for each of their respective employees, to be used toward the payment of group life insurance benefits for each employee.]"

SECTION 4. Section 89-2, Hawaii Revised Statutes, is amended as follows:

1. By amending the definition of "collective bargaining" to read:

""Collective bargaining" means the performance of the mutual obligations of the public employer and an exclusive representative to meet at reasonable times, to confer and negotiate in good faith, and to execute a written agreement with respect to wages, hours, [~~amounts of contributions~~] amount of contribution by the State [~~and~~] or counties to the Hawaii [~~public employees health fund,~~] employer-union health benefits trust fund, and other terms and conditions of employment, except that by any such obligation neither party shall be compelled to agree to a proposal, or be required to make a concession. For the purposes of this definition, "wages" includes the number of incremental and longevity steps, the number of pay ranges, and the movement between steps within the pay range and between the pay ranges on a pay schedule under a collective bargaining agreement."

2. By amending the definition of "employee organization" to read:

""Employee organization" means any organization of any kind in which public employees participate and which exists for the primary purpose of dealing with public employers concerning grievances, labor disputes, wages, hours, [~~amounts of contributions~~] amount of contribution by the State [~~and~~] or counties to the Hawaii [~~public employees health fund,~~] employer-union health benefits trust fund, and other terms and conditions of employment of public employees."

SECTION 5. Section 89-6, Hawaii Revised Statutes, is amended as follows:

1. By amending subsections (a) and (b) to read:

"(a) All employees throughout the State within any of the following categories shall constitute an appropriate bargaining unit:

(1) (A) Nonsupervisory employees in blue collar positions[;] under the state government;

(B) Nonsupervisory employees in blue collar positions under any county government;

(2) (A) Supervisory employees in blue collar positions[;] under the state government;

(B) Supervisory employees in blue collar positions under any county government;

(3) (A) Nonsupervisory employees in white collar positions[;] under the state government;

(B) Nonsupervisory employees in white collar positions under any county government;

(4) (A) Supervisory employees in white collar positions[;] under the state government;

(B) Supervisory employees in white collar positions under any county government;

(5) Teachers and other personnel of the department of education under the same pay schedule, including part-time employees working less than twenty hours a week who are equal to one-half of a full-time equivalent;

(6) Educational officers and other personnel of the department of education under the same pay schedule;

(7) Faculty of the University of Hawaii and the community college system;

(8) Personnel of the University of Hawaii and the community college system, other than faculty;

(9) (A) Registered professional nurses[;] under the state government;

(B) Registered professional nurses under any county government;

(10) (A) Institutional, health, and correctional workers[;] under the state government;

(B) Institutional, health, and correctional workers under any county government;

(11) (A) Firefighters[;] under the state government;

(B) Firefighters under any county government;

(12) Police officers; [~~and~~]

(13) (A) Professional and scientific employees[,] under the state government who cannot be included in any of the other bargaining units[.] comprised of state employees; and

(B) Professional and scientific employees under any county government who cannot be included in any of the other bargaining units comprised of county employees.

(b) Because of the nature of the work involved and the essentiality of certain occupations that require specialized training, supervisory employees who are eligible for inclusion in bargaining units (9)(A) through (13)(B) shall be included in bargaining units (9)(A) through (13)[,](B), respectively, instead of bargaining unit (2)(A), (2)(B), (4)(A), or (4)[.](B)."

2. By amending subsection (d) to read:

"(d) For the purpose of negotiating a collective bargaining agreement, the public employer of an appropriate bargaining unit shall mean the governor together with the following employers:

(1) For bargaining units (1)[,](A), (2)[,](A), (3)[,](A), (4)[,](A), (9)[,](A), (10)[,](A), and (13)[,](A), the governor shall have [~~six~~] two votes and [~~the mayors,~~] the chief justice[,] and the Hawaii health systems corporation board shall each have one vote if they have employees in the particular bargaining unit;

(2) For bargaining units (1)(B), (2)(B), (3)(B), (4)(B), (9)(B), (10)(B), (11)(B), (12), and (13)(B), each mayor shall have one vote;

[~~(2)~~] (3) For bargaining [~~units (11) and (12),~~] unit (11)(A), the governor shall have [~~four votes and the mayors shall each have one~~] the only vote;

[~~(3)~~] (4) For bargaining units (5) and (6), the governor shall have three votes, the board of education shall have two votes, and the superintendent of education shall have one vote; and

[~~(4)~~] (5) For bargaining units (7) and (8), the governor shall have three votes, the board of regents of the University of Hawaii shall have two votes, and the president of the University of Hawaii shall have one vote.

Any decision to be reached by the applicable employer group shall be on the basis of simple majority[~~, except when a bargaining unit includes county employees from more than one county. In such case, the simple majority shall include at least one county~~]."

SECTION 6. Section 89-9, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

"(e) Negotiations relating to contributions to the Hawaii employer-union health benefits trust fund shall be for the purpose of agreeing upon the [~~amounts which~~] amount that the State [~~and~~] or counties shall contribute under [~~section 87-4,~~] section 87A-32, toward the payment of the costs for a health benefits plan, as defined in section [~~87-1(8), and group life insurance benefits, and the~~] 87A-1. A public employer and collective bargaining unit shall agree to a single dollar amount as the health benefits plan monthly contribution for every member of the unit who enrolls in a health benefits plan. The parties shall not be bound by the amounts contributed under prior agreements[; provided that section 89-11 for the resolution of disputes by way of arbitration shall not be available to resolve impasses or disputes relating to the amounts the State and counties shall contribute to the Hawaii employer-union health benefits trust fund]."

SECTION 7. Section 89-10, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) All cost items shall be subject to appropriations by the appropriate legislative bodies. The employer shall submit within ten days of the date on which the agreement is ratified by the employees concerned, all cost items contained therein to the [~~appropriate~~] state legislature or the appropriate county legislative [~~bodies,~~] body, as the case may be, except that if any cost items require appropriation by the state legislature and it is not in session at the time, the cost items shall be submitted for inclusion in the governor's next operating budget within ten days after the date on which the agreement is ratified. The state legislature or the legislative bodies of the counties [~~acting in concert~~], as the case may be, may approve or reject the cost items submitted to them, as a whole. If the state legislature or the legislative body of any county rejects any of the cost items submitted to them, all cost items submitted shall be returned to the parties for further bargaining."

SECTION 8. Section 89-11, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) A public employer and an exclusive representative may enter, at any time, into a written agreement setting forth an alternate impasse procedure culminating in an arbitration decision pursuant to subsection (f), to be invoked in the event of an impasse over the terms of an initial or renewed agreement. The alternate impasse procedure shall specify whether the parties desire an arbitrator or arbitration panel, how the neutral arbitrator is to be selected or the name of the person whom the parties desire to be appointed as the neutral arbitrator, and other details regarding the issuance of an arbitration decision. When an impasse exists, the parties shall notify the board if they have agreed on an alternate impasse procedure. The board shall permit the parties to proceed with their procedure and assist at times and to the extent requested by the parties in their procedure. If the alternative impasse procedure is to culminate in an arbitration decision, the procedure shall require the arbitration panel or arbitrator to select one party's final position as the final arbitration decision in the manner provided under subsection (e)(2)(D).

In the absence of an alternate impasse procedure, the board shall assist in the resolution of the impasse at times and in the manner prescribed in subsection (d) or (e), as the case may be. If the parties subsequently agree on an alternate impasse procedure, the parties shall notify the board. The board shall immediately discontinue the procedures initiated pursuant to subsection (d) or (e) and permit the parties to proceed with their procedure."

2. By amending subsections (d), (e), (f), and (g) to read:

"(d) If an impasse exists between [a] the applicable public employer and the exclusive bargaining representative of bargaining unit (1)[,](A) or (B), nonsupervisory employees in blue collar positions[;] under the state government or county governments, respectively; bargaining unit (2)(A) or (B), supervisory employees in blue collar positions under the state government or county governments, respectively; bargaining unit (3)(A) or (B), nonsupervisory employees in white collar positions under the state government or county governments, respectively; bargaining unit (4)(A) or (B), supervisory employees in white collar positions under the state government or county governments, respectively; bargaining unit (5), teachers and other personnel of the department of education; [or] bargaining unit (6), educational officers and other personnel of the department of education under the same salary schedule; bargaining unit (7), faculty of the University of Hawaii and the community college system[,]; bargaining unit (8), personnel of the University of Hawaii and the community college system, other than faculty; bargaining unit (9)(A) or (B), registered professional nurses under the state government or county governments, respectively; or bargaining unit (13)(A) or (B), professional and scientific employees under the state government or county governments, respectively; the board shall assist in the resolution of the impasse as follows:

(1) Voluntary mediation. During the first twenty days of the date of impasse, either party may request the board to assist in a voluntary resolution of the impasse by appointing a mediator or mediators, representative of the public from a list of qualified persons maintained by the board;

(2) Mediation. If the impasse continues more than twenty days, the board shall appoint a mediator or mediators representative of the public from a list of qualified persons maintained by the board, to assist the parties in a voluntary resolution of the impasse. The board may compel the parties to attend mediation, reasonable in time and frequency, until the fiftieth day of impasse. Thereafter, mediation shall be elective with the parties, subject to the approval of the board;

(3) Report of the board. The board shall promptly report to the appropriate legislative body or bodies the following circumstances as each occurs:

(A) The date of a tentative agreement and whether the terms thereof are confidential between the parties;

(B) The ratification or failure of ratification of a tentative agreement;

(D) The terms of a tentative agreement; or

(E) On or about the fiftieth day of impasse, the failure of mediation.

The parties shall provide the board with the requisite information; and

(4) After the fiftieth day of impasse, the parties may resort to such other remedies that are not prohibited by any agreement pending between them, other provisions of this chapter, or any other law.

(e) If an impasse exists between a public employer and the exclusive representative of [bargaining unit (2), supervisory employees in blue collar positions; bargaining unit (3), nonsupervisory employees in white collar positions; bargaining unit (4), supervisory employees in white collar positions; bargaining unit (6), educational officers and other personnel of the department of education under the same salary schedule; bargaining unit (8), personnel of the University of Hawaii and the community college system, other than faculty; bargaining unit (9), registered professional nurses;] bargaining unit (10)[,](A) or (B), institutional, health, and correctional workers[;] under the state government or county governments, respectively; bargaining unit (11)[,](A) or (B), firefighters[;] under the state government or county governments, respectively; or bargaining unit (12), police officers[~~; or bargaining unit (13), professional and scientific employees~~], the board shall assist in the resolution of the impasse as follows:

(1) Mediation. During the first twenty days after the date of impasse, the board shall immediately appoint a mediator, representative of the public from a list of qualified persons maintained by the board, to assist the parties in a voluntary resolution of the impasse.

(2) Arbitration. If the impasse continues twenty days after the date of impasse, the board shall immediately notify the employer and the exclusive representative that the impasse shall be submitted to a three-member arbitration panel who shall follow the arbitration procedure provided herein.

(A) Arbitration panel. Two members of the arbitration panel shall be selected by the parties; one shall be selected by the employer and one shall be selected by the exclusive representative. The neutral third member of the arbitration panel, who shall chair the arbitration panel, shall be selected by mutual agreement of the parties. In the event that the parties fail to select the neutral third member of the arbitration panel within thirty days from the date of impasse, the board shall request the American Arbitration Association, or its successor in function, to furnish a list of five qualified arbitrators from which the neutral arbitrator shall be selected. Within five days after receipt of such list, the parties shall alternately strike names from the list until a single name is left, who shall be immediately appointed by the board as the neutral arbitrator and chairperson of the arbitration panel.

(B) Final positions. Upon the selection and appointment of the arbitration panel, each party shall submit to the panel, in writing, with copy to the other party, a final position which shall include all provisions in any existing collective bargaining agreement not being modified, all provisions already agreed to in negotiations, and all further provisions which each party is proposing for inclusion in the final agreement. The final position shall include each party's proposed amount of employer's health benefits plan contribution for each member of the unit who enrolls in a health benefits plan.

(C) Arbitration hearing. Within one hundred twenty days of its appointment, the arbitration panel shall commence a hearing at which time the parties may submit either in writing or through oral testimony, all information or data supporting their respective final positions. The arbitrator, or the chairperson of the arbitration panel together with the other two members, are encouraged to assist the parties in a voluntary resolution of the impasse through mediation, to the extent practicable throughout the entire arbitration period until the date the panel is required to issue its arbitration decision.

(D) Arbitration decision. Within thirty days after the conclusion of the hearing, a majority of the arbitration panel [~~shall reach a decision pursuant to~~], after complying with subsection (f) [~~on all provisions that each party proposed in its respective~~], shall select one party's final position [~~for inclusion~~] in its entirety as the final agreement [~~and~~]. The selected final position shall be deemed the decision of the arbitration panel, and the panel shall transmit [~~a preliminary draft of its~~] this decision to the parties. [The parties shall review the preliminary draft for completeness, technical correctness, and clarity and may mutually submit to the panel any desired changes or adjustments that shall be incorporated in the final draft of its decision. Within fifteen days after the transmittal of the preliminary draft, a majority of the arbitration panel shall issue the arbitration decision.] The arbitration panel shall not reach a decision that combines the terms and conditions of both parties' final positions.

(f) An arbitration panel in reaching its decision shall give weight to the following factors and shall include in its written report or decision an explanation of how the factors were taken into account:

(1) The lawful authority of the employer, including the ability of the employer to use special funds only for authorized purposes or under specific circumstances because of limitations imposed by federal or state laws or county ordinances, as the case may be;

(2) Stipulations of the parties;

(3) The interests and welfare of the public;

(4) The financial ability of the employer to meet these costs; provided that the employer's ability to fund cost items shall not be predicated on the premise that the employer may increase or impose new taxes, fees, or charges, or develop other sources of revenues;

(5) The present and future general economic condition of the counties and the State;

(6) Comparison of wages, hours, and conditions of employment of the employees involved in the arbitration proceeding with the wages, hours, and conditions of employment of other persons performing similar services, and of other state and county employees in Hawaii;

(7) Comparison of the public employer's health benefits plan contribution for the employees involved in the arbitration proceeding with the public employer's health benefits plan contributions for other state and county employees;

[(7)] (8) The average consumer prices for goods or services, commonly known as the cost of living;

[~~(8)~~] (9) The overall compensation presently received by the employees, including direct wage compensation, vacation, holidays and excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received;

[~~(9)~~] (10) Changes in any of the foregoing circumstances during the pendency of the arbitration proceedings; [~~and~~]

(11) The impact on the public employer's contributions to the employees' retirement system for the employees involved in the arbitration proceeding;

(12) The completeness of each party's final position that was submitted to arbitration; and

[~~(10)~~] (13) Such other factors, not confined to the foregoing, which are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment through voluntary collective bargaining, mediation, arbitration, or otherwise between the parties, in the public service or in private employment.

(g) The decision of the arbitration panel shall be final and binding upon the parties on all provisions submitted to the arbitration panel. [If the parties have reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund by the tenth working day after the arbitration panel issues its decision, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions agreed to by the parties. If the parties have not reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund by the close of business on the tenth working day after the arbitration panel issues its decision, the parties shall have five days to submit their respective recommendations for such contributions to the legislature, if it is in session, and if the legislature is not in session, the parties shall submit their respective recommendations for such contributions to the legislature during the next session of the legislature. In such event, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions established by the legislature by enactment, after the legislature has considered the recommendations for such contributions by the parties. It is strictly understood that no member of a bargaining unit subject to this subsection shall be allowed to participate in a strike on the issue of the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund.] The parties shall take whatever action is necessary to carry out and effectuate the final and binding agreement. The parties may, at any time and by mutual agreement, amend or modify the panel's decision.

Agreements reached pursuant to the decision of an arbitration panel [~~and the amounts of contributions by the State and counties to the Hawaii employer-union health benefits trust fund, as provided herein,~~] shall not be subject to ratification by the employees concerned. All items requiring any moneys for implementation, including employers' health fund contributions, shall be subject to appropriations by the appropriate legislative bodies [~~and the employer~~]. The employers shall submit all such items within ten days after the date on which the agreement is entered into as provided herein, to the appropriate legislative bodies."

SECTION 9. Section 87A-17, Hawaii Revised Statutes, is repealed.

["[~~§87A-17~~~~] Group life insurance benefits or group life insurance program. The board may provide benefits under a group life insurance benefits program or group life insurance program to employees.~~"]

SECTION 10. Section 87A-37, Hawaii Revised Statutes, is repealed.

["[~~§87A-37~~] Group life insurance benefits plans for retired employees; contributions. (a) The State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund a monthly contribution for each retired employee enrolled in the fund's group life insurance benefits plan under section 87A-34, 87A-35, and 87A-36.

(b) Effective July 1, 2003, there is established a base monthly contribution of $4.16 for each retired employee enrolled in a group life insurance plan; provided that the monthly contribution shall not exceed the actual cost of the group life insurance benefits plan. The base composite monthly contribution shall be adjusted annually beginning July 1, 2004. The adjusted base composite monthly contribution for each new plan year shall be calculated by increasing or decreasing the base composite monthly contribution in effect through the end of the previous plan year by the percentage increase or decrease in the medicare part B premium rate for those years. The percentage shall be calculated by dividing the medicare part B premium rate in effect at the beginning of the new plan year by the rate in effect through the end of the previous plan year.

As used in this subsection, "medicare part B premium rate" means the rate published in the Federal Register each year on November 1 or on the business day closest to November 1 of each year after the medicare part B premium rate has been established by the Secretary of Health and Human Services and approved by the United States Congress."]

SECTION 11. (a) For the purpose of this section:

"New collective bargaining unit" means the collective bargaining unit resulting from the division of a previous collective bargaining unit. A "new collective bargaining unit" is identified by a numeral and alphabet.

"Previous collective bargaining unit" means a collective bargaining unit that was in existence on the day before the effective date of this Act, which is divided into two separate collective bargaining units by this Act. The term does not include collective bargaining unit (5), (6), (7), (8), or (12).

(b) On the effective date of this Act:

(1) Collective bargaining unit (1) shall be divided into collective bargaining unit (1)(A) and collective bargaining unit (1)(B);

(2) Collective bargaining unit (2) shall be divided into collective bargaining unit (2)(A) and collective bargaining unit (2)(B);

(3) Collective bargaining unit (3) shall be divided into collective bargaining unit (3)(A) and collective bargaining unit (3)(B);

(4) Collective bargaining unit (4) shall be divided into collective bargaining unit (4)(A) and collective bargaining unit (4)(B);

(5) Collective bargaining unit (9) shall be divided into collective bargaining unit (9)(A) and collective bargaining unit (9)(B);

(6) Collective bargaining unit (10) shall be divided into collective bargaining unit (10)(A) and collective bargaining unit (10)(B);

(7) Collective bargaining unit (11) shall be divided into collective bargaining unit (11)(A) and collective bargaining unit (11)(B);

(8) Collective bargaining unit (13) shall be divided into collective bargaining unit (13)(A) and collective bargaining unit (13)(B); and

(9) After the divisions described under paragraphs (1) to (8) are completed, collective bargaining units (1), (2), (3), (4), (9), (10), (11), and (13) shall cease to exist as single bargaining units.

(c) On the effective date of this Act, the exclusive representative of a previous collective bargaining unit shall become, without necessity of petition or election, the exclusive representative of the two new collective bargaining units resulting from the division of the previous collective bargaining unit. The exclusive representative of the new collective bargaining unit shall remain the same unless and until changed in accordance with chapter 89, Hawaii Revised Statutes.

(d) Any new, renewed, or extended collective bargaining agreement, supplemental agreement, or memorandum of agreement in effect for a previous collective bargaining unit on the day before the effective date of this Act shall continue in effect for the new collective bargaining units resulting from the division of the previous collective bargaining unit. The new, renewed, or extended collective bargaining agreement, supplemental agreement, or memorandum of agreement shall be in effect from the effective date of this Act until terminated, expired, or superseded.

SECTION 12. The amendments made to section 89-9(e), Hawaii Revised Statutes by section 6 of this Act shall be retained when section 89-9(e) is reenacted on July 1, 2010 by section 1 of Act 5, Special Session Laws of Hawaii 2008.

SECTION 13. This Act shall to apply amounts of employers' health fund contributions to be effective from July 1, 2011.

SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 15. This Act shall take effect on January 1, 2011.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	2857
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII