HB76 HD1.DOC

SECTION 1. Chapter 89E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§89E- Employees who elect to remain in their positions until the expiration of their applicable collective bargaining agreement. (a) Notwithstanding any other law and with the consent of the employee's exclusive representative, the employee may elect to remain in the employee's position until the expiration of the applicable collective bargaining agreement. Upon being given written notice of the employee's election by the employee or the employee's exclusive representative, the governor may:

(1) Direct the agency to lease the services of an employee who opts to remain in the employee's state position pursuant to sections 89E-2 and 89E-3 to any other facility of the agency, at a cost to the State at least equal to the amount of the employee's monthly salary and fringe benefits, until the expiration of the collective bargaining agreement that covers that employee's position and the employee's state employment is terminated; provided that the employee's exclusive representative consents to the leasing of the employee's services; or

(2) Assign an employee who opts to remain in the employee's position pursuant to sections 89E-2 and 89E-3 to an equivalent position in public service until the expiration of the collective bargaining agreement that pertains to the employee's position and the employee's state employment is terminated; provided that the new position shall be on the same island as the terminated position.

(b) An employee whose services are leased or who is assigned an equivalent position pursuant to subsection (a) shall retain the employee's civil service status, whether permanent or temporary, without loss of salary, seniority (except as prescribed by applicable collective bargaining agreement), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employee possesses the minimum qualifications and public employment requirements for the class or position to which appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws."

SECTION 2. Section 89E-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any employee entitled to reduction-in-force rights under chapter 89 and who receives official notification that the employee's position is being abolished or who is directly affected by a reduction-in-force or workforce restructuring plan, including privatization, may elect to receive a voluntary severance benefit provided under this section in lieu of [~~exercising~~]:

(1) Exercising any reduction-in-force rights under chapter 89 [~~and in lieu of receiving~~];

(2) Receiving any special retirement benefit under section 89E-3[.]; and

(3) Electing to remain in the employee's position until the expiration of the applicable collective bargaining agreement."

SECTION 3. Section 89E-3, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Notwithstanding section 88-99 or any other law to the contrary, the employees' retirement system may provide, regardless of whether the actuarial value of the system's assets is one hundred per cent of the system's actuarial accrued liability, the benefits authorized under this section. Any employee who receives official notification that the employee's position is being abolished or who is directly affected by a reduction-in-force or workforce restructuring plan, including privatization, proposed by an agency may elect, if the employee is eligible to receive benefits from the employees' retirement system and meets any of the criteria specified in subsection (c), the special retirement benefit provided by this section in lieu of [~~exercising~~]:

(1) Exercising any reduction-in-force rights under chapter 89 [~~and in lieu of receiving~~];

(2) Receiving any severance benefits under section 89E‑2[.]; and

(3) Electing to remain in the employee's position until the expiration of the applicable collective bargaining agreement.

To receive the special retirement benefit offered under this section, the employee shall comply with the application and time frame requirements specified in subsection (b)."

2. By amending subsection (e) to read:

"(e) The head of the agency shall transmit a list of employees who elected and received the special retirement benefit to the board of trustees of the employees' retirement system not less than thirty days but not more than one hundred fifty days prior to the employee's retirement date. The head of the agency shall certify that the employees on the list have in fact selected the special retirement benefit in lieu of [~~receiving~~]:

(1) Receiving the severance benefit under section 89E-2 [and exercising];

(2) Exercising any reduction-in-force rights under chapter 89[.]; and

(3) Electing to remain in the employee's position until the expiration of the applicable collective bargaining agreement."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	76
TWENTY-NINTH LEGISLATURE, 2017		H.D. 1
STATE OF HAWAII