HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



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

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 1 to the compensation for positions referred to [[]in[]] section
 2 77-5, commonly known as blue-collar positions."
 3      SECTION 2.  Section 77-4, Hawaii Revised Statutes, is
 4 amended by amending subsection (c) to read as follows:
 5      "(c)  There shall be an appeals board composed of one civil
 6 service commission member from each jurisdiction who shall be
 7 appointed by the governor.  Alternate members from each
 8 jurisdiction shall also be appointed by the governor.  The term
 9 of two of the incumbents shall expire on June 30, 1964, and the
10 term of the other three shall expire on June 30, 1966.
11 Thereafter, succeeding members and their respective alternates
12 shall be appointed for a term of two years.  The cost of
13 operations thereof shall be met by state legislative
14 appropriations.
15      Notwithstanding any other laws to the contrary, each member
16 of the appeals board shall receive $10 per day for each day on
17 which work is done by them in connection with authorized
18 activities of the board, the cost thereof to be met by state
19 legislative appropriations for the appeals board.
20      The appeals board shall meet biennially to receive
21 recommendations and comments relating to the compensation plan.
22 The board shall schedule hearings for pricing appeals from
23 affected persons and parties and may hold public hearings as

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 1 well.  At least one biennial appeal hearing shall be held in each
 2 jurisdiction[.] or made available to employees and other
 3 interested parties in all jurisdictions by a videoconference
 4 system that permits audio and visual interaction between all
 5 board members and the affected individuals.  All petitions for
 6 appeal shall be filed with the appeals board within twenty days
 7 from the date of public notice of the tentative compensation
 8 plan. Notice of the time and place of the appeal hearings shall
 9 be given in the jurisdiction at least ten days prior to the
10 hearings.
11      The appeals board shall function independently of the
12 conference of personnel directors and the several civil service
13 departments of the State and the counties, but may procure office
14 facilities and clerical assistance from them.  The board may
15 appoint technical and other employees not subject to chapters 76
16 and 77, that it deems necessary.  Neither the appeals board nor
17 any of its members or staff shall consult with any member of the
18 conference of personnel directors on any matter pending before
19 the board except on notice and opportunity for the appealing
20 employee or the employee's representative to participate.
21      The appeals board may appoint a qualified hearings officer,
22 not subject to chapters 76 and 77, and invest the hearings
23 officer with power to hear the appeals and report thereon to the

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

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

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

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 1                hold public hearings as well.  At least one appeal
 2                hearing shall be held in each jurisdiction[.] or
 3                made available to employees and other interested
 4                parties in all jurisdictions by a videoconference
 5                system that permits audio and visual interaction
 6                between all board members and the affected
 7                individuals.
 8                     Final adjustment by the board to the
 9                compensation plan shall be in accordance with its
10                established policies and standards relative to
11                compensation.  The board shall complete its final
12                adjustments by the third Wednesday in January of
13                every even-numbered year.
14                     Following the final adjustment, the
15                conference of personnel directors shall submit to
16                the state legislature, through the office of the
17                governor, a report setting forth the final
18                compensation plan and the cost thereof for its
19                information and approval.  The effective date of
20                the approved plans shall be July 1 of every even-
21                numbered year.
22      (5)  Subsequent implementation of the compensation plan.
23           The compensation plan for positions covered under this

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 1           section shall be reviewed and adjusted biennially in
 2           accordance with paragraph (4)."
 3      SECTION 3.  Statutory material to be repealed is bracketed.
 4 New statutory material is underscored.
 5      SECTION 4.  This Act shall take effect upon its approval.
 7                           INTRODUCED BY:  _______________________

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