Public Employment

Reforms the civil service and public employment collective
bargaining laws by repealing the preemptory language of
chapter 89, eliminating the requirement of uniformity among the
counties and requiring coordination instead, eliminating
broadband salary descriptions, allowing lateral entry
appointments for certain bargaining units, excluding managers and
supervisors from chapter 89, limit the scope of negotiable
issues, allowing personnel actions during grievance processes,
and allowing year end savings for bonuses.

THE SENATE                              S.B. NO.           1226
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that structural changes in
 2 Hawaii's economy necessitate structural changes in government
 3 organization, government services, and service delivery.
 4 Economic revitalization is tied directly to government
 5 efficiency.  Inefficient government collects unnecessary revenue,
 6 distorting business and consumer decisions, creates unnecessary
 7 regulations which burden the private sector, and is unable to
 8 respond in a timely manner to changing public needs.  Inefficient
 9 government thus lacks accountability to the public.
10      Furthermore, government cannot correct inefficiencies and
11 lack of accountability without the authority and ability to
12 manage its workforce efficiently.  This is evidenced by the
13 following:
14      (1)  The inability to direct personnel to perform tasks
15           outside of overly narrow job descriptions;
16      (2)  The inability to reward outstanding employees with pay
17           increases;
18      (3)  The inability to use criteria other than seniority when
19           positions must be abolished.  For example, management

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 1           cannot consider performance evaluations in referral and
 2           recall lists, cannot interview and accept or reject
 3           referrals from the department of human resources
 4           development;
 5      (4)  Inclusion of supervisory personnel in bargaining units
 6           creates a conflict of interest for those employees;
 7      (5)  The inability of counties to shape personnel policies
 8           specific to their own needs due to the requirement of
 9           uniformity.
10      The purpose of this Act is to reform the collective
11 bargaining and civil service laws necessary to achieve economic
12 revitalization.
13      SECTION 2.  Chapter 76, Hawaii Revised Statutes, is amended
14 by adding a new section to be appropriately designated and to
15 read as follows:
16      "76-    Chapter takes precedence, when.  This chapter shall
17 take precedence over any other conflicting statutes concerning
18 this subject matter and shall preempt all contrary local
19 ordinances, executive orders, legislation, or rules adopted by
20 the State, a county, or any department or agency thereof,
21 including the departments of human resources development or of
22 personnel services or the civil service commission, and all
23 collective bargaining agreements entered into between the State,

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 1 a county, or any department or agency thereof, and the exclusive
 2 representative of a bargaining unit."
 3      SECTION 3.  Section 76-3, Hawaii Revised Statutes, is
 4 amended to read as follows:
 5      "76-3 [Uniform] Coordinated administration.  It is the
 6 intent of the legislature that the system of personnel
 7 administration established by this chapter and chapter 77 shall
 8 be as uniformly administered as is practicable[. In order to
 9 promote such uniformity, the several commissioners] and
10 administered as fairly as practicable and reasonable.  In order
11 to keep each other apprised of changes and trends in the field of
12 personnel administration, the directors of the state department
13 of human resources development and of the county departments of
14 civil service, the administrative director of the courts, and the
15 Hawaii health systems corporation chief executive officer's
16 designee shall meet [at least once] quarterly each year at the
17 call of the director of human resources development of the
18 State."
19      SECTION 4.  Section 77-9, Hawaii Revised Statutes, is
20 amended by amending subsection (a) to read as follows:
21      "(a)  All initial appointments shall be made at the first

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 1 step of the appropriate salary range[.]; provided that
 2 appointments to positions covered under bargaining unit (13) or
 3 its equivalents shall be made at a step that is commensurate with
 4 the level of training and experience of the appointee."
 5      SECTION 5.  Section 77-13, Hawaii Revised Statutes, is
 6 amended by amending subsection (a) to read as follows:
 7      "(a)  The salary structures for white-collar positions
 8 covered under this chapter shall be comprised of no more than
 9 thirty-one salary ranges, designated SR 4 to SR 31, SC-1, SC-2,
10 and SC-3[.]; provided that the director may establish a smaller
11 number of ranges.  In the publication of pay schedules, however,
12 salary ranges may be redesignated and salary ranges which are not
13 being used may be excluded from the respective pay schedules;
14 provided that if SC ranges are being used, they shall be
15 identified as such so that subsection (d) remains applicable.
16 Each salary range shall consist of no more than ten steps,
17 designated B to G and L-1 to L-4; provided that the director may
18 establish a smaller number of steps; provided that range SC-2
19 shall consist of nine steps, designated B to G, L-1, L-2, and
20 L-3, and range SC-3 shall consist of eight steps, designated B to
21 G, L-1, and L-2."
22      SECTION 6.  Section 82-4, Hawaii Revised Statutes, is

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 1 amended to read as follows:
 2      "82-4 Funds.  Awards and expenses for the honorary
 3 recognition of officers and employees may be paid from the funds
 4 or appropriations, including unencumbered funds that would
 5 otherwise lapse at the end of the fiscal period for which the
 6 appropriation was made, available to the department primarily
 7 benefiting or may be paid from the several funds or
 8 appropriations of the various departments benefiting as may be
 9 determined by the governor, the mayor of the city and county of
10 Honolulu and the respective chief executive officers of the
11 several counties, as the case may be, for awards under section
12 82-3 and by the head of the department concerned for awards under
13 section 82-1."
14      SECTION 7.  Section 89-1, Hawaii Revised Statutes, is
15 amended to read as follows:
16      "89-1 Statement of findings and policy.  The legislature
17 finds that joint decision-making is the modern way of
18 administering government.  Where public employees have been
19 granted the right to share in the decision-making process
20 affecting wages and working conditions, they have become more
21 responsive and better able to exchange ideas and information on
22 operations with their administrators.  Accordingly, government is

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 1 made more effective.  The legislature further finds that the
 2 enactment of positive legislation establishing guidelines for
 3 public employment relations is the best way to harness and direct
 4 the energies of public employees eager to have a voice in
 5 determining their conditions of work, to provide a rational
 6 method for dealing with disputes and work stoppages, and to
 7 maintain a favorable political and social environment.
 8      The legislature declares that it is the public policy of the
 9 State to promote harmonious and cooperative relations between
10 government and its employees and to protect the public by
11 assuring effective and orderly operations of government.  These
12 policies are best effectuated by (1) recognizing the right of
13 public employees to organize for the purpose of collective
14 bargaining, (2) requiring the public employers to negotiate with
15 and enter into written agreements with exclusive representatives
16 on matters of wages, hours, and other conditions of employment,
17 while, at the same time, (3) maintaining merit principles and the
18 principle of equal pay for equal work among state and county
19 employees pursuant to sections 76-1, [76-2,] 77-31, and 77-33,
20 and (4) creating a labor relations board to administer the
21 provisions of chapters 89 and 377."
22      SECTION 8.  Section 89-6, Hawaii Revised Statutes, is

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

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

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 1 302A-625, and the appointment and classification of faculty
 2 pursuant to sections 304-11 and 304-13, existing on July 1, 1970,
 3 shall be the bases for differentiating blue-collar from white-
 4 collar employees, professional from institutional, health and
 5 correctional workers, supervisory from nonsupervisory employees,
 6 teachers from educational officers, and faculty from nonfaculty.
 7 In differentiating supervisory from nonsupervisory employees,
 8 class titles alone shall not be the basis for determination, but,
 9 in addition, the nature of the work, including whether or not a
10 major portion of the working time of a supervisory employee is
11 spent as part of a crew or team with nonsupervisory employees,
12 shall also be considered."
13      SECTION 9.  Section 89-9, Hawaii Revised Statutes, is
14 amended as follows:
15      1.  By amending subsection (a) to read:
16      "(a)  The employer and the exclusive representative shall
17 meet at reasonable times, including meetings in advance of the
18 employer's budget-making process, and shall negotiate in good
19 faith with respect to only wages, hours, the number of
20 incremental and longevity steps and movement between steps within
21 the salary range, and the amounts of contributions by the State
22 and respective counties to the Hawaii public employees health

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 1 fund to the extent allowed in subsection (e)[, and other terms
 2 and conditions of employment which are subject to negotiations
 3 under this chapter and which are to be embodied in a written
 4 agreement, or any question arising thereunder, but such
 5 obligation does not compel either party to agree to a proposal or
 6 make a concession]."
 7      2.  By amending subsection (d) to read:
 8      "(d)  Excluded from the subjects of negotiations are all
 9 other terms and conditions of employment not subject to
10 negotiations under this chapter, including, but not limited to,
11 matters of classification and reclassification, benefits of but
12 not contributions to the Hawaii public employees health fund,
13 retirement benefits, and the salary ranges now provided by law;
14 provided that the number of incremental and longevity steps, the
15 amount of wages to be paid in each range and step, and movement
16 between steps within the salary range shall be negotiable.  The
17 employer and the exclusive representative shall not agree to any
18 proposal which would be inconsistent with merit principles or the
19 principle of equal pay for equal work pursuant to sections 76-1,
20 [76-2,] 77-31, and 77-33, or which would interfere with the
21 rights of a public employer to (1) direct employees; (2)
22 determine qualification, standards for work, the nature and

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 1 contents of examinations, hire, promote, transfer, assign, and
 2 retain employees in positions and suspend, demote, discharge, or
 3 take other disciplinary action against employees for proper
 4 cause; (3) relieve an employee from duties because of lack of
 5 work or other legitimate reason; (4) maintain efficiency of
 6 government operations; (5) determine methods, means, and
 7 personnel by which the employer's operations are to be conducted;
 8 and take such actions as may be necessary to carry out the
 9 missions of the employer in cases of emergencies; provided that
10 the employer and the exclusive representative may negotiate
11 procedures governing the promotion and transfer of employees to
12 positions within a bargaining unit, procedures governing the
13 suspension, demotion, discharge or other disciplinary actions
14 taken against employees, and procedures governing the layoff of
15 employees; provided further that violations of the procedures so
16 negotiated may be the subject of a grievance process agreed to by
17 the employer and the exclusive representative."
18      SECTION 10.  Section 89-11, Hawaii Revised Statutes, is
19 amended by amending subsection (a) to read as follows:
20      "(a)  A public employer shall have the power to enter into
21 written agreement with the exclusive representative of an
22 appropriate bargaining unit setting forth a grievance procedure

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 1 culminating in a final and binding decision, to be invoked in the
 2 event of any dispute concerning the interpretation or application
 3 of a written agreement.  In the absence of such a procedure,
 4 either party may submit the dispute to the board for a final and
 5 binding decision.  A dispute over the terms of an initial or
 6 renewed agreement does not constitute a grievance.  In no event
 7 shall the submission of a dispute to the board under this section
 8 stay the employer's authority to proceed in good faith with the
 9 execution of a personnel action that forms the subject matter of
10 the dispute."
11      SECTION 11.  Section 76-2, Hawaii Revised Statutes, is
12 repealed.
13      ["76-2 Uniform interpretation.  It is the intent of the
14 legislature that the construction and interpretation of any of
15 the provisions of this chapter and of chapter 77 be uniform for
16 the State and the several counties.
17      All questions requiring the construction or interpretation
18 of any of the provisions of this chapter or of chapter 77 shall
19 be submitted to the attorney general for an opinion and the
20 attorney general shall render an opinion promptly on any such
21 question when requested by the head of any department of the
22 State or any county.  In case the opinion is in conflict with an

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 1 opinion rendered upon the same or substantially similar question
 2 by any county attorney or corporation counsel and the question
 3 upon which the opinion is rendered has been raised by a county,
 4 the question may, either at the instance of the county attorney,
 5 corporation counsel or the attorney general, be submitted to the
 6 circuit court of the first judicial circuit for a declaratory
 7 judgment on the question, and jurisdiction to hear and determine
 8 the questions is hereby conferred upon the circuit court.  The
 9 circuit court shall determine the question without delay."]
10      SECTION 12.  Section 89-19, Hawaii Revised Statutes, is
11 repealed.
12      ["89-19  Chapter takes precedence, when.  This chapter
13 shall take precedence over all conflicting statutes concerning
14 this subject matter and shall preempt all contrary local
15 ordinances, executive orders, legislation, or rules adopted by
16 the State, a county, or any department or agency thereof,
17 including the departments of human resources development or of
18 personnel services or the civil service commission."]
19      SECTION 13.  Statutory material to be repealed is bracketed.
20 New statutory material is underscored.
21      SECTION 14.  This Act shall take effect upon its approval.
23                           INTRODUCED BY:  _______________________
25                                           _______________________