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HOUSE OF REPRESENTATIVES
TWENTY-FIRST LEGISLATURE, 2001
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO COLLECTIVE BARGAINING AGREEMENTS, FINANCIAL ABILITY OF THE EMPLOYER IN IMPASSE PROCEEDINGS AND TRANSFER OF THE OFFICE OF COLLECTIVE BARGAINING.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Act 253, Session Laws of Hawaii 2000, section 99, is amended by amending subsections (b) and (c) of section 89-10, Hawaii Revised Statutes, to read as follows:
"(b) All cost items shall be subject to appropriations by the appropriate legislative bodies. The employer shall submit within ten days of the date on which the agreement is ratified by the employees concerned all cost items contained therein to the appropriate legislative bodies, except that if any cost items require appropriation by the state legislature and it is not in session at the time, the cost items shall be submitted for inclusion in the governor's next operating budget within ten days after the date on which the agreement is ratified. The state legislature or the [legislative bodies of the counties acting in concert,] legislative body of a county, as the case may be, may approve or reject the cost items submitted to them[, as a whole]. If the state legislature or the legislative body of any county rejects any of the cost items submitted to them, [all cost items submitted] the whole agreement shall be returned to the parties for further bargaining.
(c) Because effective and orderly operations of government are essential to the public, it is declared to be in the public interest that in the course of collective bargaining, the public employer and the exclusive representative for each bargaining unit shall by mutual agreement include provisions in [the collective bargaining agreement for that bargaining unit for an expiration date of which will be] their respective collective bargaining agreement that provide for a duration not exceeding two years and ending on June 30th of an odd-numbered year.
The parties may include provisions for reopening during the term of a collective bargaining agreement; provided that cost items as defined in section 89-2 shall be subject to the requirements of this section."
SECTION 2. Act 253, Session Laws of Hawaii 2000, section 100, is amended by amending subsections (f) and (g) of Section 89-11, Hawaii Revised Statutes to read as follows:
"(f) A fact-finding panel in making its report and an arbitrator or arbitration panel in reaching its decision shall give weight to the following factors and shall include in its written report or decision an explanation of how the factors were taken into account:
(1) The lawful authority of the employer, including the ability of the employer to use special funds only for authorized purposes or under specific circumstances because of limitations imposed by federal or state laws or county ordinances, as the case may be[.]; including but not limited to constraints set forth in Article VII, Section 8 of the Hawaii Constitution and section 37-69(c)(5)(B), HRS;
(2) Stipulations of the parties[.];
(3) The interests and welfare of the public[.];
(4) The financial ability of the employer to meet these costs[;], including the ramification these costs may have on remaining collective bargaining agreements not yet agreed to, and to meet the costs of collective bargaining agreements already agreed to, and further including additional appropriated costs attributable to the employers' contributions to the health fund; provided that the employer's ability to fund cost items shall not be predicated on the premise that the employer may increase or impose new taxes, fees, or charges, or
develop other sources of revenues[.];
(5) The present and future general economic condition of the counties and the State, provided that, any revenue estimates exceeding the latest council of revenue estimates reported pursuant to section 37-11, which estimates are required to be used by the state executive branch to prepare the state's financial plan, shall not be considered[.];
(6) Comparison of wages, hours, and conditions of employment of the employees involved in the arbitration proceeding with the wages, hours, and conditions of employment of other persons performing similar services, and of other state and county employees in Hawaii[.];
(7) The average consumer prices for goods or services, commonly known as the cost of living[.];
(8) The overall compensation presently received by the employees, including direct wage compensation, vacation, holidays and excused time, insurance and pensions, medical and hospitalization benefits, the continuity and stability of employment, and all other benefits received[.];
(9) Changes in any of the foregoing circumstances during the pendency of the arbitration proceedings[.]; and
(10) Such other factors, not confined to the foregoing, which are normally or traditionally taken into consideration in the determination of wages, hours, and conditions of employment through voluntary collective bargaining, mediation, fact-finding, arbitration, or otherwise between the parties, in the public service or in private employment.
(g) The decision of the arbitration panel shall be final and binding upon the parties on all provisions submitted to the arbitration panel. If the parties have reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii public employees health fund by the tenth working day after the arbitration panel issues its decision, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions agreed to by the parties. If the parties have not reached agreement with respect to the amounts of contributions by the State and counties to the Hawaii public employees health fund by the close of business on the tenth working day after the arbitration panel issues its decision, the parties shall have five days to submit their respective recommendations for such contributions to the legislature, if it is in session, and if the legislature is not in session, the parties shall submit their respective recommendations for such contributions to the legislature during the next session of the legislature. In such event, the final and binding agreement of the parties on all provisions shall consist of the panel's decision and the amounts of contributions established by the legislature by enactment, after the legislature has considered the recommendations for such contributions by the parties. It is strictly understood that no member of a bargaining unit subject to this subsection shall be allowed to participate in a strike on the issue of the amounts of contributions by the State and counties to the Hawaii public employees health fund. The parties shall take whatever action is necessary to carry out and effectuate the final and binding agreement. The parties, may, at any time and by mutual agreement, amend or modify the panel's decision.
Agreements reached pursuant to the decision of an arbitration panel and the amounts of contributions by the State and counties to the Hawaii public employees health fund, as provided herein, shall not be subject to ratification by the employees concerned. All items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies as provided in section 89-10(b) and the employer shall submit all such items within ten days after the date on which the agreement is entered into as provided herein to the appropriate legislative bodies."
SECTION 3. Act 253, Session Laws of Hawaii 2000, section 104, is amended by amending subsection (a) of section 89A-1, Hawaii Revised Statutes, to read as follows:
"(a) There shall be established within the department of human resources development an office of collective bargaining and managed competition [in the office of the governor] to assist the governor in implementation and review of the managed process of public-private competition for particular government services through the managed competition process and negotiations between the State and the exclusive representatives on matters of wages, hours, and other negotiable terms and conditions of employment."
SECTION 4. Statutory material to be repealed is bracketed. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval; provided that section 1 shall apply to negotiations for collective bargaining agreements that will take effect beginning with the fiscal biennium 2003-2005; and section 3 shall take effect on July 1, 2002.