SB1271 SD1.DOC

SECTION 1. Section 78-23, Hawaii Revised Statutes, is amended to read as follows:

"§78-23 Leaves of absence. (a) Employees shall be eligible for vacation leave, sick leave, and other leaves of absence, with or without pay, as negotiated under chapter 89 or adjusted under chapter 89C, as applicable.

(b) When an employee, including any managerial employee of an executive department of the State who is exempt from chapter 76 and any managerial employee of the legislative branch of the State who is exempt from chapter 76, is transferred from one department to another within the same jurisdiction or to another jurisdiction within the State, the employee shall be given credit for the vacation earned or accumulated in the department from which the employee transferred, and the director of finance of the State or the equivalent officers of the several jurisdictions shall make the appropriate transfer of funds to implement the employee transfer. Moneys received from [~~any such~~] the transfer of funds by a state agency financed by the general fund of the State shall be deposited with the director of finance of the State to the credit of the general fund of the State; provided that, when an employee is transferred from one department to another within the same jurisdiction, the transfer of funds shall not be made if the employee's salary is paid from the same fund. Compensation for any period of vacation allowance shall be paid at the rate to which the employee is entitled at the time the allowance is granted.

(c) [~~Upon~~] Except as provided in subsection (f), upon discharge, an employee shall be entitled to all of the employee's accumulated vacation allowance plus the employee's current accrued vacation allowance to and including the date of discharge, notwithstanding that the current accrued vacation allowance may not have been recorded at the time. If any employee, including any managerial employee of an executive department of the State who is exempt from chapter 76 and any managerial employee of the legislative branch of the State who is exempt from chapter 76, dies with accumulated or current accrued vacation earned but not taken, an amount equal to the value of the employee's pay over the period of [~~such~~] the earned vacation, and any earned and unpaid wages, shall be paid to the person or persons who may have been designated as the beneficiary or beneficiaries by the employee during the employee's lifetime in a verified written statement filed with the comptroller or other disbursing officer who issues warrants or checks to pay the employee for the employee's services as a public employee, or, failing the designation, to the employee's estate.

(d) [~~Whenever~~] Except as provided in subsection (f), whenever an employee is to be discharged, voluntarily or involuntarily, the employee, at the option of the appointing authority, may be discharged and paid forthwith, in lieu of the employee's vacation allowance, the amount of compensation to which the employee would be entitled or which the employee would be allowed during the vacation period if the employee were permitted to take the employee's vacation in the normal manner, and in [~~such~~] that case the employee's position may be declared vacant and may be permanently filled by a new appointee before the expiration of any vacation period following the date of the discharge. For an employee hired after June 30, 1997, who is to be discharged, voluntarily or involuntarily, the amount of compensation to be paid in lieu of vacation allowance under this section shall be computed using the rate of pay and amount of accumulated and accrued vacation on the date the employee is discharged. [~~Prompt~~] The department head shall give employees prompt notice [~~upon such forms and in such manner as may be required shall be given by the department head~~] of any action taken under this provision.

(e) Payments of vacation allowance paid pursuant to subsections (c) or (d) shall be subject to the provisions of chapter 88D.

(f) Upon voluntary or involuntary discharge from the State, a managerial employee of an executive department of the State who is exempt from chapter 76 or a managerial employee of the legislative branch of the State who is exempt from chapter 76 shall not be entitled to compensation in lieu of the employee's accumulated vacation allowance or the employee's current accrued vacation allowance to and including the date of discharge; rather, beginning July 1, 2009, the employee shall:

(1) Use, prior to discharge, accumulated vacation allowance and current accrued vacation allowance to and including the date of discharge;

(2) Donate, prior to discharge, accumulated vacation allowance through a leave sharing program pursuant to section 78‑26; or

(3) Forfeit accumulated vacation allowance and current accrued vacation allowance to and including the date of discharge that is not used or not donated in accordance with paragraphs (1) and (2). An amount equivalent to the compensation that would have been paid to the employee upon discharge prior to enactment of this section shall be deposited with the director of finance of the State to the credit of the department that employed the employee immediately prior to discharge.

If a managerial employee of an executive department of the State who is exempt from chapter 76 or a managerial employee of the legislative branch of the State who is exempt from chapter 76 is voluntarily or involuntarily discharged, the employee shall not be entitled to reemployment by the same department that employed the employee immediately prior to discharge."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2050.

THE SENATE	S.B. NO.	1271
TWENTY-FIFTH LEGISLATURE, 2009		S.D. 1
STATE OF HAWAII