REPORT TITLE:
Collective Bargaining


DESCRIPTION:
Amends the collective bargaining law to reduce conflicts of
interest situations for middle managers and full supervisors,
prohibit retroactivity of collective bargaining cost items,
clarify the intent of precedential and preemptive language, and
clarify resolutions of impasse by arbitration proceedings.

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


                   A  BILL  FOR  AN  ACT

RELATING TO COLLECTIVE BARGAINING.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 89-2, Hawaii Revised Statutes, is
 
 2 amended as follows:
 
 3      1.  By amending the definition "arbitration" to read:
 
 4      ""Arbitration" means the procedure whereby parties involved
 
 5 in an impasse mutually agree or are required under section 89-11
 
 6 to submit their remaining differences on cost items, excluding
 
 7 amounts of contributions to the Hawaii public employees health
 
 8 fund, to a third party for a final and binding decision[.], which
 
 9 shall be final and binding upon the parties after approval and
 
10 appropriations by the appropriate legislative bodies."
 
11      2.  By amending the definition of "cost items" to read:
 
12      ""Cost items" includes wages, hours, amounts of
 
13 contributions by the State and counties to the Hawaii public
 
14 employees health fund, and other terms and conditions of
 
15 employment, the implementation of which requires [an
 
16 appropriation by a legislative body.] approval and appropriations
 
17 by the appropriate legislative bodies."
 
18      SECTION 2.  Section 89-6, Hawaii Revised Statutes, is
 
19 amended by amending subsection (a) to read as follows:
 

 
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 1      "(a)  All employees throughout the State within any of the
 
 2 following categories shall constitute an appropriate bargaining
 
 3 unit:
 
 4      (1)  Nonsupervisory employees in blue-collar positions;
 
 5      (2)  Supervisory employees in blue-collar positions;
 
 6      (3)  Nonsupervisory employees in white-collar positions;
 
 7      (4)  Supervisory employees in white-collar positions;
 
 8      (5)  Teachers and other personnel of the department of
 
 9           education under the same salary schedule, including
 
10           part-time employees working less than twenty hours a
 
11           week who are equal to one-half of a full-time
 
12           equivalent;
 
13      (6)  Educational officers and other personnel of the
 
14           department of education under the same salary schedule;
 
15      (7)  Faculty of the University of Hawaii and the community
 
16           college system;
 
17      (8)  Personnel of the University of Hawaii and the community
 
18           college system, other than faculty;
 
19      (9)  [Registered] Nonsupervisory registered professional
 
20           nurses;
 
21     (10)  [Institutional,] Nonsupervisory institutional health,
 
22           and correctional workers;
 
23     (11)  [Firefighters;] Nonsupervisory firefighters;
 

 
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 1     (12)  [Police] Nonsupervisory police officers; and
 
 2     (13)  [Professional] Nonsupervisory professional and
 
 3           scientific employees, other than registered
 
 4           professional nurses.
 
 5      Because of the nature of work involved and the essentiality
 
 6 of certain occupations that require specialized training, units
 
 7 (9) through (13) are designated as optional appropriate
 
 8 bargaining units.  Employees in any of these optional units may
 
 9 vote either for separate units or for inclusion in their
 
10 respective units (1) [through (4).  If a majority of the
 
11 employees in any optional unit desire to constitute a separate
 
12 appropriate bargaining unit, supervisory employees may be
 
13 included in the unit by mutual agreement among supervisory and
 
14 nonsupervisory employees within the unit; if supervisory
 
15 employees are excluded, the appropriate bargaining unit for these
 
16 supervisory employees shall be (2) or (4), as the case may be.]
 
17 or (3).
 
18      The compensation plans for blue-collar positions pursuant to
 
19 section 77-5 and for white-collar positions pursuant to section
 
20 77-13, the salary schedules for teachers pursuant to section
 
21 302A-624 and for educational officers pursuant to section
 
22 302A-625, and the appointment and classification of faculty
 
23 pursuant to sections 304-11 and 304-13, existing on July 1, 1970,
 

 
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 1 shall be the bases for differentiating blue-collar from white-
 
 2 collar employees, professional from institutional, health and
 
 3 correctional workers, supervisory from nonsupervisory employees,
 
 4 teachers from educational officers, and faculty from nonfaculty.
 
 5 In differentiating supervisory from nonsupervisory employees,
 
 6 class titles alone shall not be the basis for determination, but,
 
 7 in addition, the nature of the work, including whether or not a
 
 8 major portion of the working time of a supervisory employee is
 
 9 spent as part of a crew or team with nonsupervisory employees,
 
10 shall also be considered."
 
11      SECTION 3.  Section 89-6, Hawaii Revised Statutes, is
 
12 amended by amending subsection (c) to read as follows:
 
13      "(c)  No elected or appointed official, member of any board
 
14 or commission, representative of a public employer, including the
 
15 administrative officer, director, or chief of a state or county
 
16 department or agency, or any major division thereof, as well as
 
17 any first deputy, first assistant, legal counsel, and other top-
 
18 level managerial and administrative personnel, supervisor or
 
19 manager other than those covered by units (2) and (4), secretary
 
20 to top-level managerial and administrative personnel, individual
 
21 concerned with confidential matters affecting employee-employer
 
22 relations, part-time employee working less than twenty hours per
 
23 week except part-time employees included in unit (5), temporary
 

 
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 1 employee of three months' duration or less, employee of the
 
 2 executive office of the governor, household employee at
 
 3 Washington Place, employee of the executive office of the mayor,
 
 4 staff of the legislative branch of the State, employee of the
 
 5 executive office of the lieutenant governor, inmate, kokua,
 
 6 patient, ward or student of a state institution, student help,
 
 7 any commissioned and enlisted personnel of the Hawaii national
 
 8 guard, or staff of the legislative branches of the city and
 
 9 county of Honolulu and counties of Hawaii, Maui, and Kauai,
 
10 except employees of the clerks' offices of said city and county
 
11 and counties, shall be included in any appropriate bargaining
 
12 unit or entitled to coverage under this chapter."
 
13      SECTION 4.  Section 89-9, Hawaii Revised Statutes, is
 
14 amended by amending subsections (d) and (e) to read as follows:
 
15      "(d)  Excluded from the subjects of negotiations are matters
 
16 of classification and reclassification, benefits of but not
 
17 contributions to the Hawaii public employees health fund,
 
18 retirement benefits except as provided in section 88-8(h), and
 
19 the salary ranges now provided by law; provided that the number
 
20 of incremental and longevity steps, the amount of wages to be
 
21 paid in each range and step, and movement between steps within
 
22 the salary range shall be negotiable.  Further excluded from the
 
23 subjects of negotiations are all matters affecting the duties,
 

 
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 1 responsibilities, and other obligations owed by the employer to
 
 2 the public of Hawaii under chapter 92F.  The employer and the
 
 3 exclusive representative shall not agree to any proposal which
 
 4 would be inconsistent with merit principles or the principle of
 
 5 equal pay for equal work pursuant to sections 76-1, 76-2, 77-31,
 
 6 and 77-33, or which would interfere with the rights of a public
 
 7 employer to (1) direct employees; (2) determine qualification,
 
 8 standards for work, the nature and contents of examinations,
 
 9 hire, promote, transfer, assign, and retain employees in
 
10 positions and suspend, demote, discharge, or take other
 
11 disciplinary action against employees for proper cause; (3)
 
12 relieve an employee from duties because of lack of work or other
 
13 legitimate reason; (4) maintain efficiency of government
 
14 operations; (5) determine methods, means, and personnel by which
 
15 the employer's operations are to be conducted; and take such
 
16 actions as may be necessary to carry out the missions of the
 
17 employer in cases of emergencies; provided that the employer and
 
18 the exclusive representative may negotiate procedures governing
 
19 the promotion and transfer of employees to positions within a
 
20 bargaining unit, procedures governing the suspension, demotion,
 
21 discharge or other disciplinary actions taken against employees,
 
22 and procedures governing the layoff of employees; provided
 
23 further that violations of the procedures so negotiated may be
 

 
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 1 the subject of a grievance process agreed to by the employer and
 
 2 the exclusive representative.
 
 3      (e)  Negotiations relating to contributions to the Hawaii
 
 4 public employees health fund shall be for the purpose of agreeing
 
 5 upon the amounts which the State and counties shall contribute
 
 6 under section 87-4, toward the payment of the costs for a health
 
 7 benefits plan, as defined in section 87-1(8), and group life
 
 8 insurance benefits, and the parties shall not be bound by the
 
 9 amounts contributed under prior agreements; provided that section
 
10 89-11 for the resolution of disputes by way of fact-finding or
 
11 arbitration shall not be available to resolve impasses or
 
12 disputes relating to the amounts the State and counties shall
 
13 contribute to the Hawaii public employees health fund.
 
14      If the parties have reached agreement on the amounts of
 
15 contributions, those amounts shall be submitted when cost items
 
16 are required to be submitted under section 89-10(b).  If the
 
17 parties have not reached agreement with respect to the amounts of
 
18 contributions when cost items are required to be submitted under
 
19 section 89-10(b), the parties shall submit their respective
 
20 recommendations for those contributions to the state legislature,
 
21 if it is in session, and if the legislature is not in session, to
 
22 the legislature during the next session of the legislature.  In
 
23 that event, the amounts of contributions shall be established by
 

 
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 1 the legislature by enactment, after the legislature has
 
 2 considered the recommendations for contributions by the parties.
 
 3 No bargaining unit shall be allowed to participate in a strike on
 
 4 the issue of the amounts of contributions by the State and
 
 5 counties to the Hawaii public employees health fund."
 
 6      SECTION 5.  Section 89-10, Hawaii Revised Statutes, is
 
 7 amended  to read as follows:
 
 8      "89-10  Written agreements; appropriations for
 
 9 implementation; enforcement.(a)  Any collective bargaining
 
10 agreement reached between the employer and the exclusive
 
11 representative shall be subject to ratification by the employees
 
12 concerned[.], unless otherwise provided under section 89-11(j).
 
13 The agreement shall be reduced to writing and executed by both
 
14 parties.  The agreement may contain a grievance procedure as
 
15 authorized in section 89-11(a) and an impasse procedure
 
16 culminating in [final and binding] arbitration[,] as authorized
 
17 in section 89-11(b) and shall be valid and enforceable when
 
18 entered into in accordance with provisions of this chapter.
 
19      (b)  All cost items shall be subject to approval and
 
20 appropriations by the appropriate legislative bodies.  The
 
21 employer shall submit within ten days of the date on which the
 
22 agreement is ratified by the employees concerned or agreement is
 
23 reached if ratification is not required under section 89-11(j),
 

 
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 1 all cost items [contained therein] to the appropriate legislative
 
 2 bodies, except that, if any cost items require approval and
 
 3 appropriation by the state legislature and it is not in session
 
 4 at the time, the cost items shall be submitted [for inclusion in
 
 5 the governor's next operating budget within ten days after the
 
 6 date on which the agreement is ratified.] to the legislature
 
 7 during the next session of the legislature.  The state
 
 8 legislature or the legislative bodies of the counties acting in
 
 9 concert, as the case may be, may approve, amend, or reject any of
 
10 the cost items submitted to them[, as a whole].  If the state
 
11 legislature or the legislative body of any county rejects any of
 
12 the cost items submitted to them, [all] the cost items
 
13 [submitted] rejected shall be returned to the parties for further
 
14 bargaining.
 
15      (c)  Because effective and orderly operations of government
 
16 are essential to the public, it is declared to be in the public
 
17 interest that in the course of collective bargaining, the public
 
18 employer and the exclusive representative for each bargaining
 
19 unit shall by mutual agreement include provisions in the
 
20 collective bargaining agreement for that bargaining unit for an
 
21 expiration date which will be on June 30th of an odd-numbered
 
22 year.
 
23      If the public employer and the exclusive representative fail
 

 
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 1 to agree on the terms of a new agreement by the June 30th
 
 2 collective bargaining agreement expiration date, all cost items
 
 3 agreed upon thereafter, including those pursuant to an
 
 4 arbitration decision, shall have an effective date no earlier
 
 5 than the date on which a final agreement is reached.
 
 6      The parties may include provisions for the reopening date
 
 7 during the term of a collective bargaining agreement[,]; provided
 
 8 that such provisions shall not allow for the reopening of cost
 
 9 items as defined in section 89-2.
 
10      (d)  All existing rules [and regulations] adopted by the
 
11 employer, including civil service or other personnel
 
12 [regulations,] rules, which are not contrary to this chapter,
 
13 shall remain applicable.  If there is a conflict between the
 
14 collective bargaining agreement and any of the rules [and
 
15 regulations,] adopted prior to the enactment of this chapter, the
 
16 terms of the agreement shall prevail; provided that the terms are
 
17 [not inconsistent with section 89-9(d).] within the parameters of
 
18 sections 89-9, 89-19, and 89-20."
 
19      SECTION 6.  Section 89-11, Hawaii Revised Statutes, is
 
20 amended to read as follows:
 
21      "89-11  Resolution of disputes; grievances; impasses.(a)
 
22 A public employer shall have the power to enter into written
 
23 agreement with the exclusive representative of an appropriate
 

 
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 1 bargaining unit setting forth a grievance procedure culminating
 
 2 in a final and binding decision, to be invoked in the event of
 
 3 any dispute concerning the interpretation or application of a
 
 4 written agreement.  In the absence of such a procedure, either
 
 5 party may submit the dispute to the board for a final and binding
 
 6 decision.  A dispute over the terms of an initial or renewed
 
 7 agreement does not constitute a grievance.
 
 8      (b)  A public employer shall have the power to enter into
 
 9 written agreement with the exclusive representative of an
 
10 appropriate bargaining unit setting forth an impasse procedure
 
11 culminating in [a final and binding decision,] arbitration to be
 
12 invoked in the event of an impasse over the terms of an initial
 
13 or renewed agreement[.] subject to the requirements set forth in
 
14 subsection (e).
 
15      (c)  In the absence of such a procedure[,] for an
 
16 appropriate bargaining unit not included in subsection (d),
 
17 either party may request the assistance of the board by
 
18 submitting to the board and to the other party to the dispute a
 
19 clear, concise statement of each issue on which an impasse has
 
20 been reached together with a certificate as to the good faith of
 
21 the statement and the contents therein.  The board, on its own
 
22 motion, may determine that an impasse exists on any matter in a
 
23 dispute.  If the board determines on its own motion that an
 

 
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 1 impasse exists, it may render assistance by notifying both
 
 2 parties to the dispute of its intent.
 
 3      The board shall render assistance to resolve the impasse
 
 4 according to the following schedule:
 
 5      (1)  Mediation.  Assist the parties involved in a voluntary
 
 6           resolution of the impasse by appointing a mediator or
 
 7           mediators, representative of the public, from a list of
 
 8           qualified persons maintained by the board, within three
 
 9           days after the date of the impasse, which shall be
 
10           deemed to be the day on which notification is received
 
11           or a determination is made that an impasse exists.
 
12      (2)  Fact-finding.  If the dispute continues fifteen days
 
13           after the date of the impasse, the board shall appoint,
 
14           within three days, a fact-finding board of not more
 
15           than three members, representative of the public, from
 
16           a list of qualified persons maintained by the board.
 
17           The fact-finding board, shall, in addition to powers
 
18           delegated to it by the board, have the power to make
 
19           recommendations for the resolution of the dispute.  The
 
20           fact-finding board, acting by a majority of its
 
21           members, shall transmit its findings of fact and any
 
22           recommendations for the resolution of the dispute to
 
23           both parties within ten days after its appointment.  If
 

 
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 1           the dispute remains unresolved five days after the
 
 2           transmittal of the findings of fact and any
 
 3           recommendations, the board shall publish the findings
 
 4           of fact and any recommendations for public information
 
 5           if the parties have not mutually agreed yet to submit
 
 6           the dispute [is not referred] to [final and binding]
 
 7           arbitration.
 
 8      (3)  Arbitration.  If the dispute continues thirty days
 
 9           after the date of the impasse, the parties may mutually
 
10           agree to submit the [remaining differences to
 
11           arbitration, which shall result in a final and binding
 
12           decision.  The arbitration panel shall consist of three
 
13           arbitrators, one selected by each party, and the third
 
14           and impartial arbitrator selected by the other two
 
15           arbitrators.  If either party fails to select an
 
16           arbitrator or for any reason there is a delay in the
 
17           naming of an arbitrator, or if the arbitrators fail to
 
18           select a neutral arbitrator within the time prescribed
 
19           by the board, the board shall appoint the arbitrator or
 
20           arbitrators necessary to complete the panel, which
 
21           shall act with the same force and effect as if the
 
22           panel had been selected by the parties as described
 
23           above.  The arbitration panel shall take whatever
 

 
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 1           actions necessary, including but not limited to
 
 2           inquiries, investigations, hearings, issuance of
 
 3           subpoenas, and administering oaths, in accordance with
 
 4           procedures prescribed by the board to resolve the
 
 5           impasse.  If the dispute remains unresolved within
 
 6           fifty days after the date of the impasse, the
 
 7           arbitration panel shall transmit its findings and its
 
 8           final and binding decision on the dispute to both
 
 9           parties.  The parties shall enter into an agreement or
 
10           take whatever action is necessary to carry out and
 
11           effectuate the decision.  All items requiring any
 
12           moneys for implementation shall be subject to
 
13           appropriations by the appropriate legislative bodies,
 
14           and the employer shall submit all such items agreed to
 
15           in the course of negotiations within ten days to the
 
16           appropriate legislative bodies.] dispute to arbitration
 
17           as provided in subsections (g), (h), (i), and (j).
 
18 The time frame prescribed in the foregoing schedule may be
 
19 altered by mutual agreement of the parties, subject to the
 
20 approval of the board.
 
21      [The costs for mediation and fact-finding shall be borne by
 
22 the board.  All other costs, including that of a neutral
 
23 arbitrator, shall be borne equally by the parties involved in the
 

 
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 1 dispute.
 
 2      (c)]  If the parties have not mutually agreed to submit the
 
 3 dispute to [final and binding] arbitration, either party shall be
 
 4 free to take whatever lawful action it deems necessary to end the
 
 5 dispute; provided that no action shall involve the disruption or
 
 6 interruption of public services within sixty days after the fact-
 
 7 finding board has made public its findings of fact and any
 
 8 recommendations for the resolution of the dispute.  The employer
 
 9 shall submit to the appropriate legislative bodies the employer's
 
10 recommendations for the settlement of the dispute on all cost
 
11 items together with the findings of fact and any recommendations
 
12 made by the fact-finding board.  The exclusive representative may
 
13 submit to the appropriate legislative body its recommendations
 
14 for the settlement of the dispute on all cost items.
 
15      (d)  If a dispute between a public employer and the
 
16 exclusive representative of [appropriate bargaining unit (2),
 
17 supervisory employees in blue collar positions; appropriate
 
18 bargaining unit (3), nonsupervisory employees in white collar
 
19 positions; appropriate bargaining unit (4), supervisory employees
 
20 in white collar positions; appropriate bargaining unit (6),
 
21 educational officers and other personnel of the department of
 
22 education under the same salary schedule; appropriate bargaining
 
23 unit (8), personnel of the University of Hawaii and the community
 

 
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 1 college system, other than faculty;] optional appropriate
 
 2 bargaining unit (9), registered professional nurses; optional
 
 3 appropriate bargaining unit (10), institutional, health, and
 
 4 correctional workers; optional appropriate bargaining unit (11),
 
 5 firefighters; or optional appropriate bargaining unit (12),
 
 6 police officers[; or optional appropriate bargaining unit (13),
 
 7 professional and scientific employees, other than registered
 
 8 professional nurses], exists over the terms of an initial or
 
 9 renewed agreement more than ninety working days after written
 
10 notification by either party to initiate negotiations, either
 
11 party may give written notice to the board that an impasse exists
 
12 and the board shall assist in the voluntary resolution of the
 
13 impasse by appointing a mediator within three days after the date
 
14 of impasse.  If the dispute continues to exist fifteen working
 
15 days after the date of impasse, the dispute shall be submitted to
 
16 arbitration proceedings as provided herein.
 
17      (e)  The board shall immediately determine whether the
 
18 parties to the dispute have mutually agreed upon an arbitration
 
19 procedure that complies with subsections (h), (i), and (j) and
 
20 whether the parties have agreed upon a person or persons whom the
 
21 parties desire to be appointed as the arbitrator or as a panel of
 
22 arbitrators, as the case may be.
 
23      If the board determines that [an arbitration procedure
 

 
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 1 mutually agreed upon by the parties will result in a final and
 
 2 binding decision, and that] the parties have mutually agreed upon
 
 3 an arbitration procedure that complies with subsections (h), (i),
 
 4 and (j) and an arbitrator [or arbitration panel has been mutually
 
 5 agreed upon], it shall appoint such arbitrator [or arbitration
 
 6 panel] and permit the parties to proceed with the arbitration
 
 7 procedure mutually agreed upon.
 
 8      (f)  If, after eighteen working days from the date of
 
 9 impasse, the parties have not mutually agreed upon an arbitration
 
10 procedure [and] that complies with subsections (h), (i), and (j)
 
11 or an arbitrator [or arbitration panel], the board shall
 
12 immediately notify the employer and the exclusive representative
 
13 that the [issues in] dispute shall be submitted to [a three-
 
14 member arbitration panel] an arbitrator who shall be selected as
 
15 provided in subsection (g) and who shall follow the arbitration
 
16 procedure provided [herein.] in subsections (h), (i), and (j).
 
17      (g)  Within [twenty-one working days from the date of
 
18 impasse, two members of the arbitration panel shall be selected
 
19 by the parties; one shall be selected by the employer and one
 
20 shall be selected by the exclusive representative.  The impartial
 
21 third member of the arbitration panel shall be selected by the
 
22 two previously selected panel members and shall chair the
 
23 arbitration panel.
 

 
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 1      In the event that the two previously selected arbitration
 
 2 panel members fail to select an impartial third arbitrator within
 
 3 twenty-four] three working days from the date [of impasse,] the
 
 4 parties mutually agree to submit the dispute to arbitration under
 
 5 subsection (c)(3) or the date the parties are notified by the
 
 6 board that the dispute shall be submitted to arbitration under
 
 7 subsection (f), the board shall request the American Arbitration
 
 8 Association, or its successor in function, to furnish a list of
 
 9 five qualified arbitrators from which the [impartial] arbitrator
 
10 shall be selected.  Within five calendar days after receipt of
 
11 such list, the parties shall alternately strike names therefrom
 
12 until a single name is left, who shall be immediately appointed
 
13 by the board as the [impartial] arbitrator [and chairperson of
 
14 the arbitration panel].
 
15      (h)  Upon the selection and appointment of the [arbitration
 
16 panel,] arbitrator, each party shall submit to the [panel,]
 
17 arbitrator, in writing, with copy to the other party, a final
 
18 offer which shall include all [provisions in any existing
 
19 collective bargaining agreement not being modified, all
 
20 provisions already agreed to in negotiations, and all further
 
21 provisions other than those relating to contributions by the
 
22 State and respective counties to the Hawaii public employees
 
23 health fund which] remaining differences on cost items that each
 

 
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 1 party is proposing for inclusion in the final agreement[.],
 
 2 except for amounts of contributions by the State and counties to
 
 3 the Hawaii public employees health fund. By joint stipulation of
 
 4 the parties, all provisions in any existing collective bargaining
 
 5 agreement not being modified because neither party desired a
 
 6 change or both parties could not mutually agree on a change
 
 7 during negotiations and all provisions already agreed to in
 
 8 negotiations shall also be submitted to the arbitrator for
 
 9 consideration in reaching a decision on the remaining differences
 
10 on cost items.
 
11      Within twenty calendar days of [its] appointment, the
 
12 [arbitration panel] arbitrator shall commence a hearing at which
 
13 time the parties may submit either in writing or through oral
 
14 testimony, all information or data supporting their respective
 
15 final offers[.] on the remaining differences on cost items.
 
16 Nothing in this section shall be construed to prohibit the
 
17 parties from reaching a voluntary settlement on the unresolved
 
18 issues, with or without the assistance of a mediator, at any time
 
19 prior to the conclusion of the hearing conducted by the
 
20 [arbitration panel.] arbitrator.
 
21      (i)  Within thirty calendar days after the conclusion of the
 
22 hearing, [a majority of the arbitration panel] the arbitrator
 
23 shall select either the employer's or the exclusive
 

 
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 1 representative's final offer on the remaining differences on cost
 
 2 items and shall issue a [final and binding] decision.
 
 3      In reaching a decision, the [arbitration panel] arbitrator
 
 4 shall consider the cost items already agreed to in negotiations,
 
 5 shall give weight to all the factors listed below, and shall
 
 6 include in a written opinion an explanation of how [the factors
 
 7 were] each factor was taken into account in reaching the
 
 8 decision:
 
 9      (1)  The lawful authority of the employer[.];
 
10      (2)  Stipulations of the parties[.];
 
11      (3)  The interests and welfare of the public[.];
 
12      (4)  The financial ability of the employer to meet these
 
13           costs[.];
 
14      (5)  The present and future general economic condition of
 
15           the counties and the State[.];
 
16      (6)  Comparison of wages, hours, and conditions of
 
17           employment of the employees involved in the arbitration
 
18           proceeding with the wages, hours, and conditions of
 
19           employment of other persons performing similar
 
20           services, and of other state and county employees in
 
21           Hawaii[.];
 
22      (7)  The average consumer prices for goods or services,
 
23           commonly known as the cost of living[.];
 

 
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 1      (8)  The overall compensation presently received by the
 
 2           employees, including direct wage compensation,
 
 3           vacation, holidays and excused time, insurance and
 
 4           pensions, medical and hospitalization benefits, the
 
 5           continuity and stability of employment, and all other
 
 6           benefits received[.];
 
 7      (9)  Changes in any of the foregoing circumstances during
 
 8           the pendency of the arbitration proceedings[.]; and
 
 9     (10)  Such other factors, not confined to the foregoing,
 
10           which are normally or traditionally taken into
 
11           consideration in the determination of wages, hours, and
 
12           conditions of employment through voluntary collective
 
13           bargaining, mediation, fact-finding, arbitration, or
 
14           otherwise between the parties, in the public service or
 
15           in private employment.
 
16      The decision of the [arbitration panel] arbitrator shall be
 
17 final and binding upon the parties [on all provisions submitted
 
18 to the arbitration panel.  If the parties have reached agreement
 
19 with respect to the amounts of contributions by the State and
 
20 counties to the Hawaii public employees health fund by the tenth
 
21 working day after the arbitration panel issues its decision, the
 
22 final and binding agreement of the parties on all provisions
 
23 shall consist of the panel's decision and the amounts of
 

 
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 1 contributions agreed to by the parties.  If the parties have not
 
 2 reached agreement with respect to the amounts of contributions by
 
 3 the State and counties to the Hawaii public employees health fund
 
 4 by the close of business on the tenth working day after the
 
 5 arbitration panel issues its decision, the parties shall have
 
 6 five days to submit their respective recommendations for such
 
 7 contributions to the legislature, if it is in session, and if the
 
 8 legislature is not in session, the parties shall submit their
 
 9 respective recommendations for such contributions to the
 
10 legislature during the next session of the legislature.  In such
 
11 event, the final and binding agreement of the parties on all
 
12 provisions shall consist of the panel's decision and the amounts
 
13 of contributions established by the legislature by enactment,
 
14 after the legislature has considered the recommendations for such
 
15 contributions by the parties.  It is strictly understood that no
 
16 member of a bargaining unit subject to this subsection shall be
 
17 allowed to participate in a strike on the issue of the amounts of
 
18 contributions by the State and counties to the Hawaii public
 
19 employees health fund.  The parties shall take whatever action is
 
20 necessary to carry out and effectuate the final and binding
 
21 agreement.] after approval and appropriations by the appropriate
 
22 legislative bodies.  The parties [may], at any time and by mutual
 
23 agreement, may amend or modify the [panel's] decision[.] of the
 

 
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 1 arbitrator.
 
 2      (j)  [Agreements] Any agreement reached pursuant to the
 
 3 decision of an [arbitration panel] arbitrator and the amounts of
 
 4 contributions by the State and counties to the Hawaii public
 
 5 employees health fund[, as provided herein,] pursuant to section
 
 6 89-9(e) shall not be subject to ratification by the employees
 
 7 concerned.  All cost items [requiring any moneys for
 
 8 implementation] shall be subject to approval and appropriations
 
 9 by the appropriate legislative bodies and the employer shall
 
10 submit all [such] cost items [within ten days after the date on
 
11 which the agreement is entered into] as provided [herein,] in
 
12 section 89-10(b) to the appropriate legislative bodies.
 
13      (k)  The costs for mediation and fact-finding shall be borne
 
14 by the board.  All other costs incurred by either party in
 
15 complying with [these provisions, including the costs of its
 
16 selected member on the arbitration panel,] this section, shall be
 
17 borne by the party incurring them, except that all costs and
 
18 expenses of the [impartial] arbitrator shall be borne equally by
 
19 the parties."
 
20      SECTION 7.  Section 89-12, Hawaii Revised Statutes, is
 
21 amended by amending subsections (a) and (b) to read as follows:
 
22      "(a)  Participation in a strike shall be unlawful for any
 
23 employee who (1) is not included in an appropriate bargaining
 

 
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 1 unit for which an exclusive representative has been certified by
 
 2 the board, or (2) is included in an appropriate bargaining unit
 
 3 for which [process for] resolution of a dispute is by referral to
 
 4 [final and binding] arbitration, or (3) is an essential employee.
 
 5      (b)  It shall be lawful for an employee, who is not
 
 6 prohibited from striking under [paragraph] subsection (a) and who
 
 7 is in the appropriate bargaining unit involved in an impasse, to
 
 8 participate in a strike after (1) the requirements of section
 
 9 89-11 relating to the resolution of disputes have been complied
 
10 with in good faith, (2) the proceedings for the prevention of any
 
11 prohibited practices have been exhausted, (3) sixty days have
 
12 elapsed since the fact-finding board has made public its findings
 
13 and any recommendation, and (4) the exclusive representative has
 
14 given a ten-day notice of intent to strike to the board and to
 
15 the employer."
 
16      SECTION 8.  Section 89-19, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "89-19  Chapter takes precedence, when.  This chapter shall
 
19 only take precedence over [all] conflicting statutes [concerning
 
20 this subject matter] and shall preempt [all] contrary local
 
21 ordinances, executive orders, [legislation,] or rules adopted by
 
22 the State, a county, or any department or agency thereof,
 
23 including the departments of human resources development or of
 

 
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 1 personnel services or the civil service commission[.], which set
 
 2 forth the wages, hours, and other terms and conditions of
 
 3 employment for employees covered under this chapter prior to the
 
 4 enactment of this chapter.  This section shall not be construed
 
 5 as limiting in any way the authority or purview of a legislative
 
 6 body to enact legislation nor the responsibility of a public
 
 7 employer to adopt rules to implement any state or federal law.
 
 8 Specifically, it shall not take precedence over chapter 92F."
 
 9      SECTION 9.  Section 89-20, Hawaii Revised Statutes, is
 
10 amended to read as follows:
 
11      "[[]89-20[]]  Chapter inoperative, when.  If any provision
 
12 of this chapter jeopardizes the receipt by the State or any
 
13 county of any federal grant-in-aid or other federal allotment of
 
14 money, or interferes with, prevents, or obstructs a public
 
15 employer's ability to comply with any state or federal law,
 
16 mandate, or prohibition, the provision shall, insofar as the fund
 
17 is jeopardized[,] or compliance is interefered with, be deemed to
 
18 be inoperative."
 
19      SECTION 10.  The substantive provision of this Act shall
 
20 amend any other conflicting Act enacted by the regular session of
 
21 1999, but nonsubstantive amendments made by this Act shall not
 
22 supersede any substantive amendments made to chapter 89, Hawaii
 
23 Revised Statutes, by any other Act enacted by this regular
 

 
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 1 session of 1999.
 
 2      SECTION 11.  Statutory material to be repealed is bracketed.
 
 3 New statutory material is underscored.
 
 4      SECTION 12.  This Act shall take effect upon its approval;
 
 5 provided that section 5 shall take effect on July 1, 1999.
 
 6 
 
 7                           INTRODUCED BY:  _______________________
 

 
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