Report Title:

Repeals Collective Bargaining and Establishes the Right to Work

 

Description:

Repeals collective bargaining in public employment and establishes the Right-to-Work Act.

HOUSE OF REPRESENTATIVES

H.B. NO.

906

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE RIGHT-TO-WORK IN PUBLIC EMPLOYMENT.

 

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

SECTION 1. The purpose of this Act is to repeal collective bargaining in public employment and establish a new chapter entitled, "The Right-to-Work Act".

SECTION 2. Chapters 89, 89A, and 89C, Hawaii Revised Statutes, are repealed.

SECTION 3. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

THE RIGHT-TO-WORK ACT

§ -1 Declaration of public policy. It is hereby declared to be the public policy of the State of Hawaii, in order to maximize individual freedom of choice in the pursuit of employment and to encourage an employment climate conducive to economic growth, that the right to work shall be subject to undue restraint or coercion. The right to work shall not be infringed or restricted in any way based on membership in, affiliation with, or financial support of a labor organization.

§ -2 Definition. The term "labor organization" means any organization of any kind, or agency or employee representation committee or union, that exists for the purpose, in whole or in part, of dealing with employers concerning wages, rate of pay, hours of work, other conditions of employment, or other forms of compensation.

§ -3 Freedom of choice guaranteed, discrimination prohibited. No person shall be required, as a condition of employment or continuation of employment to:

(1) Resign or refrain from voluntary membership in, voluntary affiliation with, or voluntary financial support of a labor organization;

(2) Become or remain a member of a labor organization;

(3) Pay any dues, fees, assessments, or other charges of any kind or amount to a labor organization;

(4) Pay to any charity or other third party, in lieu of such payments, any amount equivalent to or a pro-rata portion of dues, fees, assessments, or other charges regularly required of members of a labor organization; or

(5) Be recommended, approved, referred, or cleared by or through a labor organization.

§ -4 Voluntary deductions protected. It shall be unlawful to deduct from the wages, earnings, or compensation of an employee any union dues, fees, assessments, or other charges to be held for, transferred to, or paid over to a labor organization, unless the employee has first presented, and the employer has received, a signed written authorization of such deductions, which authorization may be revoked by the employee at any time by giving written notice of such revocation to the employer.

§ -5 Agreements in violation, and actions to induce such agreements, declared illegal. Any agreement, understanding, or practice, written or oral, implied or expressed, between any labor organization and employer that violates the rights of employees as guaranteed by provisions of this chapter is hereby declared to be unlawful, null and void, and of no legal effect. Any strike, picketing, boycott, or other action by a labor organization for the sole purpose of inducing or attempting to induce an employer to enter into any agreement prohibited under this chapter is hereby declared to be for an illegal purpose and is a violation of the provisions of this chapter.

§ -6 Coercion and intimidation prohibited. It shall be unlawful for any person, labor organization, or officer, agent or member thereof, or employer, of officer thereof, by any threatened or actual intimidation of an employee or prospective employee, or an employee's or prospective employee's parents, spouse, children, grandchildren, or any other person residing in the employee's or prospective employee's home, or by any damage or threatened damage to an employee's or prospective employee's property, to compel or attempt to compel such employee to join, affiliate with, or financially support a labor organization or to refrain from doing so, or otherwise forfeit any rights as guaranteed by provisions of this chapter. It shall also be unlawful to cause or attempt to cause an employee to be denied employment or discharged from employment because of support or nonsupport of a labor organization by inducing or attempting to induce any other person to refuse to work with such employees.

§ -7 Penalties. Any person who directly or indirectly violates any provision of this chapter shall be guilty of a misdemeanor, and upon conviction thereof shall be subject to a fine not exceeding $1,000 or imprisonment for a period of not more than one year, or both, such fine and imprisonment.

§ -8 Civil remedies. Any employee harmed as a result of any violation or threatened violation of the provisions of this chapter shall be entitled to injunctive relief against any and all violators or persons threatening violations and may in addition thereto recover any and all damages, including costs and reasonable attorney fees, of any character resulting from such violation or threatened violation. Such remedies shall be independent of and in addition to the penalties and remedies prescribed in other provisions of this chapter.

§ -9 Duty to investigate. It shall be the duty of the attorney general to investigate complaints of violations or threatened violations of this chapter and to prosecute all persons violating any of its provisions, and to take all action necessary to ensure its effective enforcement.

§ -10 Application. The provisions of this chapter shall apply to all contracts entered into after the effective date of this chapter and shall apply to any renewal or extension of any existing contract."

SECTION 4. Section 26-20, Hawaii Revised Statutes, is amended to read as follows:

"§26-20 Department of labor and industrial relations. The department of labor and industrial relations shall be headed by a single executive to be known as the director of labor and industrial relations.

The department shall administer programs designed to increase the economic security, physical and economic well-being, and productivity of workers, and to achieve good labor-management relations, including the administration of workers' compensation, employment security, apprenticeship training, wage and hour, and industrial relations laws. The department shall also have the function of developing, preparing, and disseminating information on employment, unemployment, and general labor market conditions.

The labor and industrial relations appeal board provided for in chapters 371 and 386 is placed within the department of labor and industrial relations for administrative purposes. The respective functions, duties, and powers, subject to the administrative control of the director of labor and industrial relations, and the composition of the board shall be as heretofore provided by law.

[There shall be within the department of labor and industrial relations a board to be known as the Hawaii labor relations board as provided for in section 89-5, which shall exercise powers and duties in accordance with chapters 89 and 377. The director shall have general administrative supervision over the board, but shall not have the power to supervise or control the board in the exercise of its powers or duties.]

The functions of mediation heretofore exercised by the commission of labor and industrial relations existing immediately prior to November 25, 1959, as provided in section 371-10, shall be exercised by the governor or the governor's designated agent.

The director may establish within the department of labor and industrial relations a committee to be known as the apprenticeship council which shall sit in an advisory capacity to the director of labor and industrial relations on matters within the jurisdiction of the department of labor and industrial relations relating to apprenticeship programs. The membership and organization of the council shall be determined by the director.

The functions and authority heretofore exercised by the department of labor and industrial relations, Hawaii labor relations board, and apprenticeship council as heretofore constituted are transferred to the department of labor and industrial relations established by this chapter."

SECTION 5. Section 29-1, Hawaii Revised Statutes, is amended to read as follows:

"§29-1 Establishment of office. There shall be in Washington, District of Columbia, a Hawaii office of federal programs coordinator. The office shall be headed by a coordinator who shall be appointed and removed by the governor, not subject to [chapters 76, 77, and 89.] chapter 76. Effective July 1, 1982, the salary shall be $38,610 a year. Effective July 1, 1986, the salary of the federal programs coordinator shall be $0 a year. The coordinator shall appoint necessary staff, within available appropriations, not subject to [chapters 76, 77, and 89.] chapter 76.

The office is placed within the department of budget and finance for administrative purposes."

SECTION 6. Section 40-53, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) All employees hired on or after July 1, 1998, shall designate a financial institution account into which the State is authorized to deposit the employee's pay. The comptroller may waive the requirements of this section for any state employee upon request by the head of the employing department under policies prescribed by the comptroller. [The implementation of this section shall not be subject to negotiation under chapter 89.]"

SECTION 7. Section 78-13, Hawaii Revised Statutes, is amended to read as follows:

"§78-13 Salary periods. (a) Unless otherwise provided by law, all officers and employees shall be paid at least semimonthly except that substitute teachers, part-time hourly rated teachers of adult and evening classes, and other part-time, intermittent, or casual employees may be paid once a month and that the governor, upon reasonable notice and upon determination that the payroll payment basis should be converted from predicted payroll to after-the-fact payroll, may allow a one-time once a month payroll payment to all public officers and employees to effect a conversion to after-the-fact payroll as follows:

(1) The implementation of the after-the-fact payroll will commence with the June 30, 1998, pay day, which will be delayed to July 1, 1998;

(2) The July 15, 1998, pay day will be delayed to July 17, 1998;

(3) The July 31, 1998, pay day will be delayed to August 3, 1998;

(4) The August 14, 1998, pay day will be delayed to August 19, 1998;

(5) The August 31, 1998, pay day will be delayed to September 4, 1998;

(6) The September 15, 1998, pay day will be delayed to September 18, 1998; and

(7) Thereafter, pay days will be on the fifth and the twentieth of every month. If the fifth and the twentieth fall on a state holiday, Saturday, or Sunday, the pay day will be the immediately preceding weekday.

[The implementation of the after-the-fact payroll shall not be subject to negotiation under chapter 89.]

(b) If an employee has been working for the State for at least six months, has no paid leave accumulated, and has an existing salary overpayment balance:

(1) The employee may be paid the employee's salary on the same pay dates and for the same pay periods as non-salaried employees.

(2) Upon accumulation of eighty hours of paid leave, the employee shall be paid the employee's salary on the same pay dates and for the same pay periods as salaried employees.

(c) If an employee has been working for the State for at least six months and has had at least two incidents of leave which results in salary overpayment within the past six months:

(1) The employee may be paid the employee's salary on the same pay dates and for the same pay period as non-salaried employees.

(2) If there are no incidents of leave which result in salary overpayment for a subsequent four-month period, the employee shall be paid the employee's salary on the same pay dates and for the same pay periods as salaried employees.

[(d) The implementation of subsections (b) and (c) shall not be subject to negotiation under chapter 89.

(e)] (d) All employees, except those belonging to bargaining units 5 and 7, hired on or after July 1, 1998, shall be paid on the same pay dates and for the same pay periods as non-salaried employees."

SECTION 8. Section 78-18.3, Hawaii Revised Statutes, is amended to read as follows:

"[[]§78-18.3[]] Prohibition on certain increases in salaries for certain state and county officers or employees. Any law to the contrary notwithstanding, neither the State nor any of the counties shall provide or pay to the following state or county officers or employees any adjustment or increase in the officer's or employee's respective salary or compensation where such adjustment or increase constitutes a mandatory adjustment or increase which is, directly or indirectly, dependent upon and related to negotiated salary adjustments or increases received under collective bargaining agreements by civil service or other public employees covered by collective bargaining: any elected or appointed officer or employee in the executive and judicial branches of state government and the executive branch of any county government (1) whose salary or compensation is fixed, limited, or otherwise specified by statute, ordinance, or other legislative enactment whether or not in express dollar amounts or express dollar amount ceilings; (2) who is not subject to [chapters 76 and 77;] chapter 76; and (3) who is excluded from collective bargaining [and not subject to chapter 89C]."

SECTION 9. Section 87-4, Hawaii Revised Statutes, is amended by amending subsections (a) to (c) to read as follows:

"(a) The State through the department of budget and finance and the several counties through their respective departments of finance shall pay to the fund a monthly contribution equal to the amount [established under chapter 89C or] specified in the applicable public sector collective bargaining agreement[, whichever is appropriate,] for each of their respective employee-beneficiaries and employee-beneficiaries with dependent-beneficiaries, which shall be used toward the payment of costs of a health benefits plan; provided that the monthly contribution shall not exceed the actual cost of a health benefits plan. If both husband and wife are employee-beneficiaries, the total contribution by the State or the appropriate county shall not exceed the monthly contribution of a family plan for both of them. If, however, the State or any of the several counties establish cafeteria plans in accordance with section 125 of the Internal Revenue Code of 1986, as amended, and part II of chapter 78, the monthly contribution to the fund for those employee-beneficiaries who participate in a cafeteria plan shall be made through the cafeteria plan. In this event, the payments made by the State or the counties shall include the State's and the counties' respective contributions to the fund and the employee-beneficiary's share of the cost of the health benefits plan selected and authorized by the employee-beneficiary through the cafeteria plan.

(b) The State through the department of budget and finance and the several counties through their respective departments of finance shall pay to the fund a monthly contribution equal to the amount [established under chapter 89C or] specified in the applicable public sector collective bargaining agreement[, whichever is appropriate,] for each child who has not attained the age of nineteen of all employee-beneficiaries who are enrolled for dental benefits. The contributions shall be used towards the payment of costs of dental benefits of a health benefits plan. Notwithstanding any provisions to the contrary, no part of the fund shall be used to finance the contributions except a rate credit or reimbursement or earnings or interest therefrom received by the fund or general revenues appropriated for that purpose.

(c) The State through the department of budget and finance and the several counties through their respective departments of finance shall pay to the fund a monthly contribution equal to the amount [established under chapter 89C or] specified in the applicable public sector collective bargaining agreement[, whichever is applicable,] for each of their respective employees, to be used towards the payment of group life insurance benefits for each employee."

SECTION 10. Section 88-8, Hawaii Revised Statutes, is amended as follows:

1. By amending subsection (a) to read:

"(a) Notwithstanding any other law to the contrary, the board of regents may establish without regard to the public notice or public hearing requirements of chapter 91, a retirement system separate from the state employees' retirement system to provide retirement allowances and other benefits for University of Hawaii employees who are:

(1) Members of bargaining unit (7); or

(2) Other employees of the University of Hawaii or the community college system [who are excluded from bargaining unit (7) pursuant to chapter 89]."

2. By amending subsections (f) and (g) to read:

"(f) Any member of the state employees' retirement system when the optional retirement system of the University of Hawaii is established who is also:

(1) A member of bargaining unit (7); or

(2) Other employees of the University of Hawaii or the community college system [who are excluded from bargaining unit (7) pursuant to chapter 89],

shall remain a member of the state employees' retirement system unless the person elects in writing on a form prescribed by the board of regents to terminate the person's membership. The form shall be submitted to the state employees' retirement system no later than ninety days after the establishment of the optional retirement system of the University of Hawaii.

(g) Any person hired after the establishment of the optional retirement system of the University of Hawaii who is:

(1) A member of bargaining unit (7); or

(2) Other employees of the University of Hawaii or the community college system [who are excluded from bargaining unit (7) pursuant to chapter 89],

shall elect to be a member of the state employees' retirement system or the optional retirement system of the University of Hawaii. Upon an election the person may not transfer from one system to the other."

SECTION 11. Section 92-6, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) This part shall not apply:

(1) To the judicial branch.

(2) To adjudicatory functions exercised by a board and governed by sections 91-8 and 91-9, or authorized by other sections of the Hawaii Revised Statutes. In the application of this subsection, boards exercising adjudicatory functions include, but are not limited to, the following:

[(A) Hawaii labor relations board, chapters 89 and 377;

(B)] (A) Labor and industrial relations appeals board, chapter 371;

[(C)] (B) Hawaii paroling authority, chapter 353;

[(D)] (C) Civil service commission, chapter 26;

[(E)] (D) Board of trustees, employees' retirement system of the State of Hawaii, chapter 88;

[(F)] (E) Crime victim compensation commission, chapter 351; and

[(G)] (F) State ethics commission, chapter 84."

SECTION 12. Section 103F-301, Hawaii Revised Statutes, is amended to read as follows:

"[[]§103F-301[]] Powers and duties of the administrator. The administrator of the state procurement office shall carry out the following duties:

(1) Assist, advise, and guide state agencies in matters relating to planning and purchasing health and human services;

(2) Establish and maintain a central health and human services contracts database;

(3) Develop and administer a statewide orientation and training program for purchasing agency employees, provider organization employees, and all other interested parties on all matters relating to carrying out the purposes of this chapter;

(4) Develop, distribute, and maintain a health and human service procurement manual for all state procurement officials;

(5) Develop, distribute, and maintain a procurement guide for health and human service vendors wishing to do business with the State;

(6) Perform periodic review of the procurement practices of all governmental bodies which purchase health and human services;

(7) Contract for such services as may be necessary for the purposes of this chapter; and

(8) Establish and fill such positions as may be necessary to carry out the functions of this chapter, without regard to [chapters 76, 77, and 89.] chapter 76."

SECTION 13. Section 109-2, Hawaii Revised Statutes, is amended to read as follows:

"§109-2 Stadium authority; powers and duties. The powers and duties of the stadium authority shall be as follows:

(1) To maintain, operate, and manage the stadium and related facilities, and to provide for the maintenance, operation, management, and promotion of the Kapolei recreational sports complex;

(2) To prescribe and collect rents, fees, and charges for the use or enjoyment of the stadium or any of its facilities;

(3) To make and execute contracts and other instruments necessary or convenient to exercise its powers under this chapter and subject to any limitations in this chapter, to exercise all powers necessary, incidental, or convenient to carry out and effectuate the purposes and provisions of this chapter, including entering into contracts under chapter 102 or 103D for the management of the Kapolei recreational sports complex, to include but not be limited to the operation, maintenance, and promotion of the complex in a manner that is beneficial to both the State and the contractor. These contracts may contain revenue sharing incentives based on increased usage of the complex;

(4) To adopt, amend, and repeal in accordance with chapter 91 rules it may deem necessary to effectuate this chapter and in connection with its projects, operations, and facilities;

(5) To appoint a manager and a deputy manager who shall have such qualifications as the authority deems necessary and who shall hold their respective offices at the pleasure of the authority. The manager and deputy manager shall be exempt from the requirements of [chapters 76, 77, and 89.] chapter 76. Effective January 1, 1989, and January 1, 1990, the salary of the manager shall be set by the governor within the range from $69,748 to $74,608 and $72,886 to $77,966 a year, respectively. Effective January 1, 1989, and January 1, 1990, the salary of the deputy manager shall be $62,854 and $65,683 a year, respectively. The manager shall have full power to administer the affairs of the stadium and related facilities, and to provide for a management contract for the Kapolei recreational sports complex, subject to the direction and approval of the authority. The manager shall, subject to the approval of the authority, have power to appoint, suspend, and discharge a secretary who shall be exempt from the requirements of [chapters 76, 77, and 89,] chapter 76 and such other employees, subordinates, and assistants as may be necessary for the proper conduct of the business of the authority. Except for persons hired on contract or otherwise as provided in section 109-3 and except for the manager, deputy manager, and secretary, all appointments, suspensions, or discharges shall be made in conformity with the applicable provisions of [chapters] chapter 76 [and 77]; and

(6) To plan, promote, and market the stadium, its related facilities, and the Kapolei recreational sports complex."

SECTION 14. Section 196D-13, Hawaii Revised Statutes, is amended to read as follows:

"[[]§196D-13[]] Exemptions from certain state laws. In order to promote the purposes of this chapter, all persons hired by the department to effectuate this chapter are excepted from [chapters 76, 77, and 89.] chapter 76."

SECTION 15. Section 201G-474, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The executive director of the corporation shall appoint a state homeless section administrator to carry out the purposes of this subpart and coordinate all programs and responses of state agencies relating to the problem of homelessness. The administrator, with approval of the executive director, may contract with private services to carry out the duties and responsibilities of the program.

Notwithstanding any other law to the contrary, any contracts entered into by the administrator with a private sector entity pursuant to this subsection shall not be subject to [chapters 76, 77, and 89.] chapter 76. This subsection shall apply to contracts entered into by the state homeless programs coordinator with private sector entities pursuant to Act 279, Session Laws of Hawaii 1992, section 3, before July 14, 1998."

SECTION 16. Section 206P-6, Hawaii Revised Statutes, is amended to read as follows:

"[[]§206P-6[]] Employees of the corporation. The board may appoint an executive director and such other employees as may be necessary in administering the affairs of the corporation. The salary shall not exceed that of a first deputy under section 26-53. It shall set the employees' duties, responsibilities, salaries, holidays, vacations, leaves, hours of work, and working conditions. It may grant such other benefits to its employees as it deems necessary. Employees of the corporation shall not be entitled to any benefits conferred under chapter 76 relating to civil service, [chapter 77 relating to compensation,] chapters 78 to 83 relating to public employment, and chapter 88 relating to pension and retirement system[, and chapter 89 relating to collective bargaining]."

SECTION 17. Section 269-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Effective January 1, 1989, and January 1, 1990, the chairperson of the commission shall be paid a salary set by the governor within the range of $69,748 to $74,608 and $72,886 to $77,966 a year, respectively, and each of the other commissioners shall be paid a salary equal to ninety-five per cent of the chairperson's salary. The commissioners shall be exempt from [chapters 76, 77, and 89] chapter 76 but shall be members of the state employees retirement system and shall be eligible to receive the benefits of any state or federal employee benefit program generally applicable to officers and employees of the State, including those under chapter 87.

The commission is placed within the department of budget and finance for administrative purposes."

SECTION 18. Section 302A-610, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) Benefits that can be divided in half, such as the number of days of sick leave, and are considered to be an equitable share when divided, shall be computed on that basis. Benefits that cannot be divided, such as eligibility for membership in the public employees' health plan shall be given to the job-sharers without the foregoing division, notwithstanding any provision of chapter 87 or 88 to the contrary. [The newly hired job-sharer shall be excluded from collective bargaining under chapter 89.]

The full-time permanent employee shall not lose membership in an employee bargaining unit because of participation in this program, any other law to the contrary notwithstanding. Union membership or service fees paid by the job-sharer under this section shall be at a level consistent with normal union membership dues or service fees. The State's contribution to the job-sharers' prepaid health, prepaid dental, and group life insurance plans shall be the same as for full-time employees, any other law to the contrary notwithstanding. Job-sharers shall be covered under chapter 386 and the applicable provisions of chapter 383. Service credit for the tenured teacher participating in the program under this section shall be given on the same basis as that for full-time employees. Nothing in this section shall be construed, however, to vest any person with any rights to permanent employment status, whether under civil service or otherwise, which did not exist prior to the participation of the person in the job-sharing program. The granting of tenure shall be under applicable statutes. No full-time position shall be abolished or reduced to a half-time position except for the purpose of job-sharing. In a reduction-in-force procedure, consideration of a job-sharer's tenure rights shall be on the same basis as that of a full-time employee. Nothing in this section shall impair the employment or employment rights or benefits of any employee."

SECTION 19. Section 302A-701, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-701[]] Incentive packages for quality teachers. Teachers in the public school system may accept incentive packages provided by local communities for the purpose of retaining those teachers in schools with high teacher turnover. Packages may include such items as:

(1) Provision of housing;

(2) Provision of mileage reimbursement;

(3) Provision of discounts at local businesses; and

(4) Other [items not covered by chapter 89, and] agreed upon by the community."

SECTION 20. Section 302A-1004, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

"(d) The superintendent of education is responsible for the development and implementation of an educational accountability system. The system shall include consequences and shall be designed through a collaborative process involving stakeholders that shall include parents, community members, the respective exclusive representatives, as well as others deemed appropriate by the superintendent.

For the purposes of this section, negotiations [under chapter 89] shall be between the superintendent or the superintendent's designee and the respective exclusive representative, and shall be limited to the impact on personnel arising from the superintendent's decision in implementing the educational accountability system. After the initial agreement is negotiated, provisions on the impact of the accountability on personnel may be reopened only upon mutual agreement of the parties."

SECTION 21. Section 302A-1126, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1126[]] Waiver of policy, rule, or procedures. Any state agency that may be required to act under state law on a matter affecting an individual school, its school community, or a learning support center shall waive otherwise applicable policies, rules, or procedures when requested to do so by a school or a learning support center participating in the school/community-based management system unless the agency, within thirty days, can justify a denial to the appropriate authority. The board shall adopt procedures necessary to process waivers initiated by schools or learning support centers subject to the school/community-based management system. This section shall apply to collective bargaining agreements [as provided for in all relevant collective bargaining agreements negotiated pursuant to chapter 89]."

SECTION 22. Section 302A-1184, Hawaii Revised Statutes, is amended to read as follows:

"[[]§302A-1184[]] New century charter schools; exemptions. Schools designated as new century charter schools shall be exempt from all applicable state laws, except those regarding:

[(1) Collective bargaining under chapter 89; provided that:

(A) The exclusive representatives defined in chapter 89 may enter into agreements that contain cost and noncost items to facilitate decentralized decisionmaking;

(B) The exclusive representatives and the local school board of the new century charter school may enter into agreements that contain cost and noncost items;

(C) The agreements shall be funded from the current allocation or other sources of revenue received by the new century charter school; and

(D) These agreements may differ from the master contracts;

(2)] (1) Discriminatory practices under section 378-2; and

[(3)] (2) Health and safety requirements.

New century charter schools shall be exempt from the state procurement code, chapter 103D, but shall develop internal policies and procedures for the procurement of goods, services, and construction, consistent with the goals of public accountability and public procurement practices. However, where possible, the new century charter school is encouraged to use the provisions of chapter 103D; provided that the use of one or more provisions of chapter 103D shall not constitute a waiver of the exemption of chapter 103D and shall not subject the new century charter school to any other provision of chapter 103D. New century charter schools shall account for funds expended for the procurement of goods and services, and this accounting shall be available to the public."

SECTION 23. Section 304-4.3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The board of regents may appoint or retain by contract one or more attorneys who are independent of the attorney general, to provide legal services for the university, including:

(1) Representation for the university in civil actions to which the university is a party, either directly or through the acts or omissions of its officers or employees;

(2) Advice and assistance to ensure the lawful and efficient administration and operation of the university;

(3) Review and approval of documents relating to the acquisition of land or interest in land by the university; and

(4) Other legal service specified by the board of regents.

The board of regents may fix the compensation of the attorneys appointed pursuant to this section. Attorneys appointed or retained by contract shall be exempt from [chapters 76, 77, and 89.] chapter 76."

SECTION 24. Section 304-8.41, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) There is established a revolving fund for the University of Hawaii into which shall be deposited all revenues derived from the operation of commercial enterprises by university programs. Revenues deposited into this account may be expended by the university for all costs and expenses associated with the operation of the enterprises, including hiring personnel, renovating commercial space, and purchasing merchandise, supplies, and equipment, without regard to chapters 76 [through 80, 89], 78, 103, and 103D. Revenues not expended as provided herein may be transferred to other university funds to be expended for the general benefit of the university."

SECTION 25. Section 304-10.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Management and other support services provided by the research corporation pursuant to this section may include:

(1) The procurement of goods and services;

(2) Employment of personnel; and

(3) The provision of advance funding for research and training contracts and grants.

These services may be provided by the corporation to the university without regard to chapter 76, [77,] 78, [89,] or 103D."

SECTION 26. Section 323F-7, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any other law to the contrary, the corporation shall have and exercise the following duties and powers:

(1) Developing its own policies, procedures, and rules necessary or appropriate to plan, operate, manage, and control the system of public health facilities and services without regard to chapter 91;

(2) Evaluating the need for health facilities and services;

(3) Entering into and performing any contracts, leases, cooperative agreements, or other transactions whatsoever that may be necessary or appropriate in the performance of its purposes and responsibilities, and on terms it may deem appropriate, with either:

(A) Any agency or instrumentality of the United States, or with any state, territory, or possession, or with any subdivision thereof; or

(B) Any person, firm, association, or corporation, whether operated on a for-profit or not-for-profit basis;

provided that the transaction furthers the public interest;

(4) Conducting activities and entering into business relationships as the corporation board deems necessary or appropriate, including but not limited to:

(A) Creating nonprofit corporations, including but not limited to charitable fund-raising foundations, to be controlled wholly by the corporation or jointly with others;

(B) Establishing, subscribing to, and owning stock in business corporations individually or jointly with others; and

(C) Entering into partnerships and other joint venture arrangements, or participating in alliances, purchasing consortia, health insurance pools, or other cooperative arrangements, with any public or private entity; provided that any corporation, venture, or relationship entered into under this section furthers the public interest; provided further that this paragraph shall not be construed to authorize the corporation to abrogate any responsibility or obligation under paragraph (15);

(5) Participating in and developing prepaid health care service and insurance programs and other alternative health care delivery programs, including programs involving the acceptance of capitated payments or premiums that include the assumption of financial and actuarial risk;

(6) Executing, in accordance with all applicable bylaws, rules, and laws, all instruments necessary or appropriate in the exercise of any of the corporation's powers;

(7) Preparing and executing all corporation budgets, policies, and procedures;

(8) Setting rates and charges for all services provided by the corporation without regard to chapter 91;

(9) Developing a corporation-wide hospital personnel system that is subject to [chapters 76, 77, and 89;] chapter 76;

(10) Developing the corporation's capital and strategic plans;

(11) Suing and being sued; provided that the corporation shall enjoy the same sovereign immunity available to the State;

(12) Making and altering corporation board bylaws for its organization and management without regard to chapter 91;

(13) Adopting rules, without regard to chapter 91, governing the exercise of its powers and the fulfillment of its purpose under this chapter;

(14) Entering into any contract or agreement whatsoever, not inconsistent with this chapter or the laws of this State, and authorizing the corporation chief executive officer to enter into all contracts, execute all instruments, and do all things necessary or appropriate in the exercise of the powers granted in this chapter, including securing the payment of bonds;

(15) Issuing revenue bonds subject to the approval of the legislature; provided that all revenue bonds shall be issued pursuant to part III, chapter 39;

(16) Reimbursing the state general fund for debt service on general obligation bonds or reimbursable general obligation bonds issued by the State for the purposes of the corporation;

(17) Pledging or assigning all or any part of the receipts and revenues of the corporation for purposes of meeting bond or health systems liabilities;

(18) Owning, purchasing, leasing, exchanging, or otherwise acquiring property, whether real, personal or mixed, tangible or intangible, and of any interest therein, in the name of the corporation, which property is not owned or controlled by the State but is owned or controlled by the corporation;

(19) Maintaining, improving, pledging, mortgaging, selling, or otherwise holding or disposing of property, whether real, personal or mixed, tangible or intangible, and of any interest therein, at any time and manner, in furtherance of the purposes and mission of the corporation; provided that the corporation legally holds or controls the property in its own name; and provided further that the corporation shall not sell, assign, lease, hypothecate, mortgage, pledge, give, or dispose of all or substantially all of its property;

(20) Purchasing insurance and creating captive insurers in any arrangement deemed in the best interest of the corporation, including but not limited to funding and payment of deductibles and purchase of reinsurance;

(21) Acquiring by condemnation, pursuant to chapter 101, any real property required by the corporation to carry out the powers granted by this chapter;

(22) Depositing any moneys of the corporation in any banking institution within or without the State, and appointing, for the purpose of making deposits, one or more persons to act as custodians of the moneys of the corporation;

(23) Contracting for and accepting any gifts, grants, and loans of funds, property, or any other aid in any form from the federal government, the State, any state agency, or any other source, or any combination thereof, and complying, subject to this chapter, with the terms and conditions thereof;

(24) Providing health and medical services for the public directly or by agreement or lease with any person, firm, or private or public corporation or association through or in the health facilities of the corporation or otherwise;

(25) Approving medical staff bylaws, rules, and medical staff appointments and reappointments for all public health facilities, including without limitation, determining the conditions under which a health professional may be extended the privilege of practicing within a health facility, and adopting and implementing reasonable rules, without regard to chapter 91, for the credentialing and peer review of all persons and health professionals within the facility;

(26) (A) Investing any funds not required for immediate disbursement in property or in securities that meet the standard for investments established in chapter 88 as provided by the corporation board; provided the investment assists the corporation in carrying out its public purposes; selling from time to time securities thus purchased and held, and depositing any securities in any bank or financial institution within or without the State. Any funds deposited in a banking institution or in any depository authorized in this section shall be secured in a manner and subject to terms and conditions as the corporation board may determine, with or without payment of any interest on the deposit, including, without limitation, time deposits evidenced by certificates of deposit. Any bank or financial institution incorporated under the laws of this State may act as depository of any funds of the corporation and may issue indemnity bonds or may pledge securities as may be required by the corporation board.

(B) Notwithstanding subparagraph (A), contracting with the holders of any of its notes or bonds as to the custody, collection, securing, investment, and payment of any moneys of the corporation and of any moneys held in trust or otherwise for the payment of notes or bonds and carrying out the contract. Moneys held in trust or otherwise for the payment of notes or bonds or in any way to secure notes or bonds, and deposits of such moneys, may be secured in the same manner as moneys of the corporation, and all banks and trust companies are authorized to give security for the deposits;

(27) Entering into any agreement with the State including but not limited to contracts for the provision of goods, services, and facilities in support of the corporation's programs, and contracting for the provision of services to or on behalf of the State;

(28) Having a seal and altering the same at pleasure;

(29) Waiving, by means that the corporation deems appropriate, the exemption from federal income taxation of interest on the corporation's bonds, notes, or other obligations provided by the Internal Revenue Code of 1986, as amended, or any other federal statute providing a similar exemption;

(30) Developing internal policies and procedures for the procurement of goods and services, consistent with the goals of public accountability and public procurement practices, but not subject to chapter 103D. However, where possible, the corporation is encouraged to use the provisions of chapter 103D; provided that the use of one or more provisions of chapter 103D shall not constitute a waiver of the exemption from chapter 103D and shall not subject the corporation to any other provision of chapter 103D;

(31) Authorizing and establishing positions;

(32) Calling upon the attorney general for such legal services as the corporation may require; and

(33) Having and exercising all rights and powers necessary or incidental to or implied from the specific powers granted in this chapter, which specific powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of this chapter."

SECTION 27. Section 323F-8, Hawaii Revised Statutes, is amended to read as follows:

"§323F-8 Chief executive officer; exempt positions. (a) The corporation board may appoint, exempt from [chapters 76 and 77] chapter 76 and section 26-35(4), a chief executive officer of the corporation whose salary shall be set by the corporation board. The chief executive officer may also appoint up to eighteen other personnel, exempt from [chapters 76, 77, and 89,] chapter 76 to work directly for the chief executive officer and the corporate board.

(b) The corporation board or its designee may discharge its exempt personnel with or without cause; provided that removal without cause shall not prejudice any contract rights of personnel.

(c) The corporation's chief executive officer or the chief executive officer's designee may appoint, exempt from [chapters 76, 77, and 89,] chapter 76, hospital administrators, assistant administrators, directors of nursing, medical directors, and staff physicians, to facilitate the management of facilities within the corporation; provided that directors of nursing appointed before July 1, 1998, may maintain their civil service status as provided in [chapters 76 and 77,] chapter 76, by so communicating in writing to the chief executive officer by October 31, 1998. Hospital administrators and assistant administrators appointed before July 1, 1983, may maintain their permanent civil service status as provided in [chapters 76 and 77.] chapter 76."

SECTION 28. Section 349-2, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The head of this office shall be known as the director of the executive office on aging, hereinafter referred to as director. The director shall have professional training in the field of social work, education, public health, and other related fields; extensive direct experience in programs or services related to elders; and recent experience in a supervisory, consultative, or administrative position. The director shall be nominated and appointed by the governor without regard to [chapters 76, 77, and 89.] chapter 76. Effective January 1, 1989, and January 1, 1990, the salary of the director shall be $56,505 and $59,048 a year, respectively. The director shall be included in any benefit program generally applicable to the officers and employees of the State."

SECTION 29. Section 363-2, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) The head of the office shall be known as the director of the office of veterans' services. The director shall be nominated and appointed by the governor without regard to [chapters 76, 77, and 89.] chapter 76. Effective July 1, 1990, the salary of the director shall be $59,048 a year. The director shall be included in any benefit program generally applicable to the officers and employees of the State."

(c) The director shall have the following principal functions, duties, and powers:

(1) Serve as the principal official in state government responsible for the performance, development, and control of programs, policies, and activities under this chapter;

(2) Oversee, supervise, and direct the performance by the director's subordinates of activities in such areas as planning, evaluation, and coordination of veterans programs and development of a statewide service delivery network;

(3) Assess the policies and practices of other agencies with respect to delivery of services and benefits to veterans;

(4) Administer funds allocated for the office, and apply for, receive, and disburse grants and donations from all sources for veterans programs and services provided under this chapter;

(5) Establish a clearinghouse for complaints of persons regarding services to veterans, or operations of state and county agencies affecting veterans, investigate such complaints, and refer the complaints and the director's findings to the appropriate agency for corrective action;

(6) Adopt, amend, and repeal rules pursuant to chapter 91 for the purposes of this chapter;

(7) Employ and retain such staff as may be necessary for the purposes of this chapter, in conformance with [chapters 76, 77, and 89] chapter 76 except for the position of coordinator and executive secretary to the director, who shall be hired without regard to [chapters 76, 77, and 89; and] chapter 76;

(8) Contract for or grant such services as may be necessary for the purposes of this chapter, including a master contract with other state agencies receiving federal and state funds for programs and services for veterans, and purchase of service agreements with appropriate agencies; and

(9) Oversee the development, establishment, and operation of a state veterans cemetery on Oahu; develop and administer the policies and procedures of the state veterans cemetery in accordance with the United States Veterans Administration and existing state guidelines; oversee the maintenance of state veterans cemeteries on all islands."

SECTION 30. Section 371-4, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:

"(f) The chairperson of the appeal board shall be responsible for the administrative functions of the appeal board. The appeal board may:

(1) Appoint an executive officer and employ other employees as it deems necessary in the performance of its functions;

(2) Set the duties and compensation of the executive officer and employees; and

(3) Provide for the reimbursement of actual and necessary expenses incurred by the executive officer and employees in the performance of their duties, within the amounts made available by appropriations therefor.

Members of the appeal board and employees other than clerical and stenographic employees shall be exempt from [chapters 76, 77, and 89.] chapter 76. Clerical and stenographic employees shall be employed in accordance with [chapters 76 and 77.] chapter 76."

SECTION 31. Section 377-1, Hawaii Revised Statutes, is amended by amending the definition of "board" to read:

"(10) "Board" means the [Hawaii labor relations board, provided for by sections 26-20, 89-5, and 377-2.] director of labor and industrial relations."

SECTION 32. Section 377-2, Hawaii Revised Statutes, is amended to read as follows:

"§377-2 Administration by [Hawaii labor relations board.] director of labor and industrial relations. The [Hawaii labor relations board provided for in chapter 89] director shall administer the Hawaii employment relations act.

[The board shall have a seal for the authentication of its orders and proceedings, upon which shall be inscribed the words "Hawaii Labor Relations Board--Seal".]"

SECTION 33. Section 386-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Notwithstanding any provision of law to the contrary, any employer may determine the benefits and coverage of a policy required under this chapter through collective bargaining with an appropriate bargaining unit; provided that the bargained agreement shall be reviewed by the director to ensure that the agreement does not provide benefits and coverage less than those provided in this chapter. The director shall approve the agreement within ninety days after submittal upon a finding that the agreement provides the benefits and coverage required. [This section shall not apply to collective bargaining contracts negotiated pursuant to chapter 89.] The director may adopt rules pursuant to chapter 91 to implement this section."

SECTION 34. Section 612-51, Hawaii Revised Statutes, is amended to read as follows:

"§612-51 Grand jury counsel; appointment and removal. The chief justice of the state supreme court shall appoint one or more grand jury counsel for the four judicial circuits of the State, without regard to [chapters 76, 77, and 89.] chapter 76. Right to removal shall rest with the chief justice."

SECTION 35. Section 663-1.95, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The good faith presumption under subsection (a) shall be rebuttable upon a showing by a preponderance of the evidence that the information or opinion disclosed was:

(1) Knowingly false; or

(2) Knowingly misleading.

(c) Nothing in this section shall affect rights, obligations, remedies, liabilities, or standards of proof under chapters [89,] 92F, 368, and 378."

SECTION 36. Section 802-11, Hawaii Revised Statutes, is amended to read as follows:

"§802-11 Appointment of state public defender. The state public defender shall be appointed by the defender council without regard to [chapters 76, 77, and 89.] chapter 76. The state public defender's appointment shall be for a term of four years except as otherwise provided herein, and until the state public defender's successor is appointed and qualified. The state public defender shall be qualified to practice law before the supreme court of this State. Effective January 1, 1989, and January 1, 1990, the salary of the state public defender shall be set by the governor within the range from $69,748 to $74,608 and $72,886 to $77,966 a year, respectively. The state public defender shall devote full time to the performance of the state public defender's duties and shall not engage in the general practice of law."

SECTION 37. Act 253, Session Laws of Hawaii 2000, is amended as follows:

1. By amending section 76-1, Hawaii Revised Statutes, in section 5 of the Act to read:

"§76-1 Purposes; merit principle. It is the purpose of this chapter to require each jurisdiction to establish and maintain a separately administered civil service system based on the merit principle. The merit principle is the selection of persons based on their fitness and ability for public employment and the retention of employees based on their demonstrated appropriate conduct and productive performance. It is also the purpose of this chapter to build a career service in government, free from coercive political influences, to render impartial service to the public at all times, according to the dictates of ethics and morality and in compliance with all laws.

In order to achieve these purposes, it is the declared policy of the State that the human resource program within each jurisdiction be administered in accordance with the following:

(1) Equal opportunity for all in compliance with all laws prohibiting discrimination. No person shall be discriminated against in examination, appointment, reinstatement, reemployment, promotion, transfer, demotion, or removal, with respect to any position when the work may be efficiently performed by the person without hazard or danger to the health and safety of the person or others;

(2) Impartial selection of individuals for public service by means of competitive tests which are fair, objective, and practical;

(3) Incentives for competent employees within the service, whether financial or promotional opportunities and other performance based group and individual awards that encourage continuous improvement to achieve superior performance;

(4) Reasonable job security for competent employees and discharge of unnecessary or inefficient employees with the right to grieve and appeal personnel actions [through the:

(A) Contractual grievance procedure for employees covered by chapter 89; or

(B) Internal complaint procedures and the merit appeals board for employees excluded from coverage under chapter 89];

(5) Equal pay for equal work shall apply between classes in the same bargaining unit among jurisdictions for those classes determined to be equal through systematic classification of positions based on objective criteria and adequate job evaluation, unless it has been agreed [in accordance with chapter 89] to negotiate the repricing of classes; and

(6) Harmonious and cooperative relations between government and its employees, including employee organizations representing them, to develop and maintain a well-trained, efficient, and productive work force that utilizes advanced technology to ensure effective government operations and delivery of public services.""

2. By amending the definition of "exclusive representative" in section 76-11, Hawaii Revised Statutes, in section 9 of the Act to read:

""Exclusive representative" means the employee organization [certified by the board under section 89-8 as the collective bargaining agent to represent] representing all employees in an appropriate bargaining unit without discrimination and without regard to employee organization membership."

3. By amending section 76-13, Hawaii Revised Statutes, in section 11 of the Act to read:

"§76-13 Specific duties and powers of director. The director shall direct and supervise all the administrative and technical activities of the director's department. In addition to other duties imposed upon the director by this chapter, the director shall:

(1) Establish and maintain a roster of all persons in the civil service;

(2) Appoint employees necessary to assist the director in the proper performance of the director's duties and for which appropriations shall have been made;

(3) Foster and develop, in cooperation with appointing authorities and others, programs for the improvement of employee efficiency;

(4) Cooperate fully with appointing authorities, giving full recognition to their requirements and needs, in the administration of this chapter to promote public service by establishing conditions of service that will attract and retain employees of character and capability, and to increase efficiency and productivity in governmental departments by continuously improving methods of human resources administration and maximizing the use of advanced technology;

(5) Encourage and exercise leadership in the development of effective human resources administration within the several departments and make available the facilities of the director's department to this end;

(6) Investigate from time to time the operation and effect of this chapter and the rules adopted thereunder;

(7) Develop and maintain classification systems;

(8) Make recommendations and advise the chief executive on appropriate adjustments for employees excluded from collective bargaining [as authorized under chapter 89C]; and

(9) Perform any other lawful acts deemed by the director to be necessary or desirable to carry out the purposes and provisions of this chapter."

4. By amending subsection (a) of section 76-14, Hawaii Revised Statutes, in section 12 of the Act to read:

"(a) The merit appeals board of each jurisdiction shall decide appeals from any action under this chapter taken by the chief executive, the director, an appointing authority, or a designee acting on behalf of one of these individuals, relating to:

(1) Recruitment and examination;

(2) Classification and reclassification of a particular position;

(3) Initial pricing of classes; and

(4) Other employment actions under this chapter, including disciplinary actions and adverse actions for failure to meet performance requirements[, taken against civil service employees who are excluded from collective bargaining coverage under section 89-6]."

5. By amending section 76-17, Hawaii Revised Statutes, in section 15 of the Act to read:

"§76-17 Rules; policies, standards, and procedures. (a) In conformity with chapter 91, the director shall prescribe rules to carry out this chapter which shall have the force and effect of law. The rules may include any matter not inconsistent with law concerning the establishment and maintenance of a system of personnel management based on the merit principle, including but not limited to matters set forth in this chapter, and may be amended or repealed in like manner as the same were adopted. The rules shall be in conformity with principles of good public administration.

(b) The director may also issue, without regard to chapter 91, policies, standards, and procedures consistent with rules to facilitate and ensure appropriate functioning of the human resources program.

[(c) The section shall not apply to matters that are negotiable under chapter 89 or adjusted under chapter 89C.]"

6. By amending subsection (d) of section 76-30, Hawaii Revised Statutes, in section 22 of the Act to read:

"(d) Actions taken by the appointing authority under this section shall, if grieved, be filed pursuant to the departmental complaint procedure and the merit appeals board for employees [excluded from coverage under chapter 89, as applicable.] not covered under a collective bargaining agreement."

7. By amending subsection (c) of section 76-41, Hawaii Revised Statutes, in section 23 of the Act to read:

"(c) Any civil service employee who fails to meet performance requirements shall have the right to grieve under:

(1) A collective bargaining grievance procedure that culminates in a final and binding decision by a performance judge [pursuant to section 89-10.8]; or

(2) The departmental complaint procedure that culminates in a final and binding decision by the merit appeals board under section 76-14.

The performance judge or the merit appeals board, as the case may be, shall use the conditions in subsection (b) as tests in reaching a decision on whether the employer's action, based on a failure by the employee to meet performance requirements of the employee's position, was with or without merit."

8. By amending section 76-43, Hawaii Revised Statutes, in section 25 of the Act to read:

"§76-43 Layoff. When it is necessary to release employees due to lack of work, lack of funds, or other legitimate reasons, employees with permanent appointments in civil service positions shall have layoff rights. [Layoffs shall be made in accordance with procedures negotiated under chapter 89 or established under chapter 89C, as applicable.]"

9. By amending section 76-45, Hawaii Revised Statutes, in section 26 of the Act to read:

"§76-45 Suspension. An appointing authority may, for disciplinary purposes, suspend any employee without pay or place an employee on leave without pay pending an investigation. [Suspensions and leaves without pay pending an investigation shall be in accordance with procedures negotiated under chapter 89 or established under chapter 89C, as applicable.]"

10. By amending section 76-46, Hawaii Revised Statutes, in section 27 of the Act to read:

"§76-46 Discharges; demotions. An appointing authority may discharge or demote any employee when the appointing authority considers that the good of the service will be served thereby. Discharges may be made only for such causes that will promote the efficiency of government service.

[Demotions or discharges shall be in accordance with procedures negotiated under chapter 89 or established under chapter 89C, as applicable.]"

11. By amending section subsection (e) of section 76-47, Hawaii Revised Statutes, in section 28 of the Act to read:

"(e) Any civil service employee, who is suspended, discharged, or demoted and who is not included in an appropriate bargaining unit [under section 89-6], may appeal to the merit appeals board within twenty days after a final decision is made under the internal complaint procedures.

Upon the appeal, both the appealing employee and the appointing authority shall have the right to be heard publicly, present evidence and be represented by counsel, who shall have the right to examine and cross-examine witnesses. At the hearing technical rules of evidence shall not apply and the evidence shall be taken stenographically or recorded by machine. For the purpose of hearing the appeals fairly and expeditiously, the board may at any time appoint a competent and qualified disinterested person to act as its hearing officer. The hearing officer shall hear the matter in the same manner as if it were before the board and upon the conclusion of the hearing, shall report the hearing officer's findings of fact and the hearing officer's conclusions and recommendations based thereon to the board and to the employee. The board shall render the final decision in accordance with section 91-11.

If the board finds that the reasons for the action are not substantiated in any material respect, the board shall order that the employee be reinstated in the employee's position, without loss of pay, but if the board finds that the reasons are substantiated or are only partially substantiated, the board shall sustain the action of the appointing authority, provided that the board may modify the action of the appointing authority if it finds the circumstances of the case so require and may thereupon order such disposition of the case as it may deem just.

The findings and decisions of the board shall be final on all appeals, unless an appeal is taken as provided in chapter 91.

Notwithstanding any other law to the contrary, when an appeal hearing is before a merit appeals board of a county or the city and county of Honolulu, the attorney general shall be counsel for the board and the county attorney or corporation counsel shall be counsel for the appointing authority. If, however, an appeal hearing is before the state merit appeals board, the attorney general shall be counsel for the appointing authority and the county attorney or corporation counsel of the county, including the city and county of Honolulu, in which the appeal hearing is being conducted shall be counsel for the state merit appeals board.

Notwithstanding any other law to the contrary, when the decision and order of the merit appeals board of a county or the city and county of Honolulu, is appealed as provided in chapter 91, the attorney general shall be counsel for the board and the county attorney or corporation counsel shall be counsel for the appointing authority. When the decision and order of the state merit appeals board is appealed as provided in chapter 91, the attorney general shall be counsel for the appointing authority and the county attorney or corporation counsel of the county, including the city and county of Honolulu, in which the chapter 91 appeal is being conducted, shall be counsel for the state merit appeals board."

12. By amending subsection (a) of section 78-23, Hawaii Revised Statutes, in section 74 of Act 253 to read:

"(a) Employees shall be eligible for vacation leave, sick leave, and other leaves of absence, with or without pay, as negotiated [under chapter 89 or adjusted under chapter 89C, as applicable]."

13. By amending subsection (b) of section 302A-633.5, Hawaii Revised Statutes, in section 125 of Act 253 to read:

"(b) Employees in positions under subsection (a) shall be board of education appointees exempt from chapter 76[, but the application of section 89-6 with respect to collective bargaining coverage and the employer for purposes of collective bargaining shall not be affected]. Except for rights or benefits specifically conditioned upon membership in the civil service, the wages, hours, benefits, and other terms and conditions of employment for these employees in existence on July 1, 2002 shall remain in effect[, but may be changed as provided in chapter 89 or 89C, as applicable]. Any employee who is a member of the civil service on July 1, 2002 shall be granted tenure by the board of education without the necessity of meeting any probationary or other requirements for tenure that the board of education establishes."

SECTION 38. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 39. This Act shall take effect on July 1, 2002.

INTRODUCED BY:

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