HOUSE OF REPRESENTATIVES
TWENTY-NINTH LEGISLATURE, 2017
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO PUBLIC EMPLOYEES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Hawaii's collective bargaining in public employment law, chapter 89, Hawaii Revised Statutes, was enacted to promote labor management harmony in the public sector by:
(1) Establishing guidelines for employment relations relating to wages, hours, and working conditions;
(2) Providing a method for dealing with disputes and work stoppages; and
(3) Maintaining a favorable political and social environment.
The legislature further finds that the policy to promote harmonious and cooperative relations between government and its employees rests on the right of public employees to organize for the purpose of collective bargaining, in accordance with article XIII, section 2, of the Constitution of the State of Hawaii.
The legislature also finds that changes in federal constitutional law could have an impact on public employee collective bargaining in Hawaii. In Friedrichs v. California Teachers Association, the petitioners asked the United States Supreme Court whether:
(1) Abood v. Detroit Board of Education should be overruled and public-sector agency shop arrangements invalidated under the First Amendment; and
(2) The First Amendment prohibits the practice of requiring public employees to affirmatively opt-out of subsidizing nonchargeable speech rather than to affirmatively consent.
An equally divided United States Supreme Court affirmed the judgment of the United States Court of Appeals in favor of the California Teachers Association.
Nevertheless, the legislature also finds that these issues could be revisited after President Trump's nominee fills the vacancy on the United States Supreme Court. The outcome and disposition of such a landmark case could result in huge ramifications on the application and adherence to both chapters 76 and 89, Hawaii Revised Statutes.
The legislature finds that should the United States Supreme Court strike down laws requiring the payment of union dues by public sector employees, such a ruling would fundamentally undermine this legislature's consistent efforts to ensure labor management peace. Not only would such a ruling effectively hamstring the collective bargaining representative's ability to collect resources from its membership, it would greatly diminish the public employee's ability to negotiate with management.
Accordingly, the purpose of this Act is to ensure that public employees are able to effectively collectively bargain with the public employer by establishing a mechanism that will provide the exclusive bargaining representative with the resources necessary to adequately represent public employees.
SECTION 2. Chapter 89, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§89- Public employees' collective bargaining fund. (a) There is established in the treasury the public employees' collective bargaining fund into which shall be deposited an amount not less than per cent of the total compensation provided by the State to every public employee during the previous fiscal year. The amount shall be deposited not later than the close of business of the first day of each fiscal year.
(b) Moneys from the fund shall be disbursed pursuant to a contract between the department of budget and finance and the exclusive bargaining representative. The amount disbursed to the exclusive bargaining representative shall equal the amount deposited into the fund on the first day of each fiscal year pursuant to subsection (a), multiplied by the number of employees classified in the unit represented by the exclusive bargaining representative, and divided by the total number of public employees at the end of business on June 30 of the previous fiscal year.
(c) After disbursements are made to the exclusive bargaining representative for every collective bargaining unit, any remaining balance in the fund shall be transferred to the general fund."
SECTION 3. Section 89-1, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(b) The legislature declares that it is the public policy of the State to promote harmonious and cooperative relations between government and its employees and to protect the public by assuring effective and orderly operations of government. These policies are best effectuated by:
(1) Recognizing the right of public employees to organize for the purpose of collective bargaining;
(2) Requiring public employers to negotiate with and
enter into written agreements with exclusive representatives on matters of
wages, hours, and other conditions of employment, while, at the same time,
maintaining the merit principle pursuant to section 76-1; [
(3) Enabling exclusive representatives to maintain financial viability, organizational capacity, and the ability to effectively represent public employees; and
(4) Creating a labor relations board to administer the provisions of chapters 89 and 377."
SECTION 4. Section 89-3, Hawaii Revised Statutes, is amended to read as follows:
"§89-3 Rights of employees.
Employees shall have the right of self-organization and the right to form,
join, or assist any employee organization for the purpose of bargaining
collectively through representatives of their own choosing on questions of
wages, hours, and other terms and conditions of employment, and to engage in
lawful, concerted activities for the purpose of collective bargaining or other
mutual aid or protection, free from interference, restraint, or coercion. An
employee shall have the right to refrain from any or all of such activities[
except for having a payroll deduction equivalent to regular dues remitted to an
exclusive representative as provided in section 89-4]."
SECTION 5. Section 89-4, Hawaii Revised Statutes, is amended to read as follows:
"§89-4 Payroll deductions. (a)
Upon receiving from an exclusive representative a written statement specifying
the amount of regular dues required of its members in the appropriate
bargaining unit, the employer shall deduct this amount from the payroll of
every member employee in the appropriate bargaining unit and remit the amount
to the exclusive representative. Additionally, the employer shall deduct [
amount equivalent to the regular dues] from the payroll of every nonmember
employee in the appropriate bargaining unit, and shall remit [ the amount]
to the exclusive representative[ ; provided that the deduction from the
payroll of every nonmember employee shall be made only for an exclusive
representative which provides for a procedure for determining the amount of a
refund to any employee who demands the return of any part of the deduction
which represents the employee's pro rata share of expenditures made by the
exclusive representative for activities of a political and ideological nature
unrelated to terms and conditions of employment. If a nonmember employee
objects to the amount to be refunded, the nonmember employee may petition the
board for review thereof within fifteen days after notice of the refund has
been received.], an amount agreed between the nonmember employee and the
exclusive representative. If an employee organization is no longer the
exclusive representative of the appropriate bargaining unit, the deduction from
the payroll of members and nonmembers shall terminate.
(b) The employer shall, upon written
authorization by an employee, executed at any time [
after the employee's
joining an employee organization], deduct from the payroll of the employee
the amount of membership dues, initiation fees, representation fees,
group insurance premiums, [ and] or other association benefits,
and shall remit the amount to the employee organization designated by the
(c) The employer shall continue all payroll assignments authorized by an employee prior to July 1, 1970 and all assignments authorized under subsection (b) until notification is submitted by an employee to discontinue the employee's assignments.
(d) The exclusive representative may establish dues, rates, or charges to support its activities and other programs it may choose to provide to members. The exclusive representative may establish rates or charges for services, or other programs it may choose to provide to nonmembers.
(e) The public employer shall be entitled to rely on, and shall not be liable for accurately implementing, reports of employees' deductions supplied by the exclusive representative. Any challenge to rates or charges for services shall be within the exclusive original jurisdiction of the board, as a prohibited practice."
SECTION 6. Section 89-8, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The employee organization which has
been certified by the board as representing the majority of employees in an
appropriate bargaining unit shall be the exclusive representative of all
employees in the unit. As exclusive representative, it shall have the right to
act for and negotiate agreements covering all employees in the unit and shall
be responsible for representing the interests of all such employees without
and without regard to employee organization membership.],
except that it need not represent employees who do not pay reasonable costs of
representation. Any other provision herein to the contrary
notwithstanding, whenever two or more employee organizations which have been
duly certified by the board as the exclusive representatives of employees in
bargaining units merge, combine, or amalgamate or enter into an agreement for
common administration or operation of their affairs, all rights and duties of
such employee organizations as exclusive representatives of employees in such
units shall inure to and shall be discharged by the organization resulting from
such merger, combination, amalgamation, or agreement, either alone or with such
employee organizations. Election by the employees in the unit involved, and
certification by the board of such resulting employee organization shall not be
SECTION 7. Section 89-3.5, Hawaii Revised Statutes, is repealed.
§89-3.5 Religious exemption from
support of employee organization. Notwithstanding any other
provision of law to the contrary, any employee who is a member of and adheres
to established and traditional tenets or teachings of a bona fide religion,
body, or sect which has historically held conscientious objections to joining
or financially supporting employee organizations shall not be required to join
or financially support any employee organization as a condition of employment;
except that an employee may be required in a contract between an employee's
employer and employee organization in lieu of periodic dues and initiation
fees, to pay sums equal to the dues and initiation fees to a nonreligious,
nonlabor organization charitable fund exempt from taxation under section
501(c)(3) of the Internal Revenue Code, chosen by the employee from a list of
at least three funds, designated in the contract or if the contract fails to
designate any funds, then to any fund chosen by the employee. If an employee
who holds conscientious objections pursuant to this section requests the
employee organization to use the grievance-arbitration procedure on the
employee's behalf, the employee organization is authorized to charge the
employee for the reasonable cost of using the procedure."]
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect on .
Collective Bargaining; Public Employees
Establishes the public employees' collective bargaining fund. Requires the deposit of not less than the amount equal to an undisclosed percentage of the total compensation provided to all public employees during the previous fiscal year. Amends the rights of public employee elective representation and deductions for nonmembers. Repeals the religious exemption from support of employee organization.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.