Hawaii 2022 Regular Session

Hawaii House Bill HB1793 Compare Versions

Only one version of the bill is available at this time.

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1	1	HOUSE OF REPRESENTATIVES H.B. NO. 1793 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII A BILL FOR AN ACT relating to public employee compensation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	HOUSE OF REPRESENTATIVES H.B. NO. 1793
4	4	THIRTY-FIRST LEGISLATURE, 2022
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9	9	H.B. NO.
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11	11	1793
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13	13	THIRTY-FIRST LEGISLATURE, 2022
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to public employee compensation.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. Chapter 76, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows: "§76-A Public employees' compensation appeals board; established; repricing. (a) There is established within the department of accounting and general services for administrative purposes a public employees' compensation appeals board to hear appeals on the repricing of classes. The public employees' compensation appeals board shall be composed of: (1) One member from each jurisdiction nominated by the head of the respective jurisdiction; and (2) One member nominated by the head of each employee organization representing public employees in the State; provided that the executive representative of bargaining units (2), (3), (4), (6), (8), (9), (13), (14), and (15), and the exclusive representative for bargaining units (1) and (10) shall each nominate two members. The appointment, tenure, and removal of the members and the filling of vacancies on the public employees' compensation appeals board shall be as provided in section 26-34. (b) The members of the public employees' compensation appeals board shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties. (c) The public employees' compensation appeals board may: (1) Appoint a qualified hearings officer and invest the hearings officer with power to hear the appeals and report thereon to the board; and (2) Appoint other employees that it deems necessary. If appointed, the qualified hearings officer and the other employees shall not subject to chapters 76 and 78. The public employees' compensation appeals board shall adopt policies and standards relative to compensation of any appointed qualified hearings officer and other employees. (d) The public employees' compensation appeals board shall adopt rules pursuant to chapter 91 regarding deadlines and procedures for the filing of appeals and for the conduct of appeal hearings. The public employees' compensation appeals board may adopt other rules pursuant to chapter 91 to carry out its purpose. Nine members shall constitute a quorum at any board meeting. Decisions on the repricing of classes shall require at least the affirmative vote of the majority of a quorum to be valid. (e) Neither the public employees' compensation appeals board nor any of its members or staff shall consult with any public employer on any matter pending before the board except on notice and opportunity for the petitioner to participate. §76-B Public employees' compensation appeals process; repricing. (a) All petitions for appeals from affected persons on the repricing of a class shall be filed with the public employees' compensation appeals board. (b) Each appeal shall be filed within thirty days of the ratification, agreement, or issuance of the applicable collective bargaining agreement, supplemental agreement, or agreement reached through arbitration decision; provided that if a class is not repriced for a period of three years, an appeal may be filed at any time after the three-year period has expired. (c) Upon receipt of a petition filed pursuant to this section, the public employees' compensation appeals board shall give public notice of the time and place of the hearing. The public notice shall be given at least thirty days prior to the hearing. The hearing shall take place within one year of the filing of the petition and in the county in which the appeal is filed, unless otherwise agreed upon by the petitioner. (d) If the public employees' compensation appeals board determines that a class should not be repriced, the petition shall be closed, and the petitioner shall be precluded from filing a subsequent appeal for that class for two years from the date of the board's determination. (e) If the public employees' compensation appeals board determines that a class should be repriced, the public employees' compensation appeals board shall make adjustments to the affected class or classes where the appeals have been filed in the compensation plan that are necessary. The decision of the public employees' compensation appeals board shall be in writing, accompanied by separate findings, and binding on all jurisdictions. (f) Following the final adjustments, each director shall submit to the state legislature, through the office of the governor, a report setting forth the compensation plan and the cost thereof for its information and approval. The approved compensation plan shall be effective as of July 1 of each even‑numbered year. (g) The director shall assign new classes to salary ranges on the basis of the policies and standards established pursuant to this section. The assignments shall be effective immediately if the availability of funds is certified to by the respective fiscal officers and shall be in effect until adoption of the next compensation plan. (h) All decisions of the board under this section in favor of the person appealing and granting a higher compensation shall be retroactive to the date of the filed petition." SECTION 2. Section 76-1, Hawaii Revised Statutes, is amended to read as follows: §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] agreed or determined in accordance with this chapter or chapter 89 for 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." SECTION 3. Section 89-9, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows: "(f) The repricing of classes within an appropriate bargaining unit may be negotiated or determined as follows: (1) At the request of the exclusive representative and at times allowed under the collective bargaining agreement, the employer shall negotiate the repricing of classes within the bargaining unit. The negotiated repricing actions that constitute cost items shall be subject to the requirements in section 89-10; [[]and[]] (2) If repricing has not been negotiated under paragraph (1), the employer of each jurisdiction shall ensure establishment of procedures to periodically review, at least once in five years, unless otherwise agreed to by the parties, the repricing of classes within the bargaining unit. The repricing of classes based on the results of the periodic review shall be at the discretion of the employer. Any appropriations required to implement the repricing actions that are made at the employer's discretion shall not be construed as cost items[.]; or (3) By the public employees' compensation appeals board pursuant to section 76-B." SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for establishment of the public employees' compensation appeals board. The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act. SECTION 5. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act. SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 7. This Act shall take effect upon its approval; provided that section 4 shall take effect on July 1, 2022. INTRODUCED BY: _____________________________
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49	49	SECTION 1. Chapter 76, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:
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51	51	"§76-A Public employees' compensation appeals board; established; repricing. (a) There is established within the department of accounting and general services for administrative purposes a public employees' compensation appeals board to hear appeals on the repricing of classes. The public employees' compensation appeals board shall be composed of:
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53	53	(1) One member from each jurisdiction nominated by the head of the respective jurisdiction; and
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55	55	(2) One member nominated by the head of each employee organization representing public employees in the State; provided that the executive representative of bargaining units (2), (3), (4), (6), (8), (9), (13), (14), and (15), and the exclusive representative for bargaining units (1) and (10) shall each nominate two members.
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57	57	The appointment, tenure, and removal of the members and the filling of vacancies on the public employees' compensation appeals board shall be as provided in section 26-34.
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59	59	(b) The members of the public employees' compensation appeals board shall serve without compensation but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.
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61	61	(c) The public employees' compensation appeals board may:
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63	63	(1) Appoint a qualified hearings officer and invest the hearings officer with power to hear the appeals and report thereon to the board; and
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65	65	(2) Appoint other employees that it deems necessary.
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67	67	If appointed, the qualified hearings officer and the other employees shall not subject to chapters 76 and 78. The public employees' compensation appeals board shall adopt policies and standards relative to compensation of any appointed qualified hearings officer and other employees.
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69	69	(d) The public employees' compensation appeals board shall adopt rules pursuant to chapter 91 regarding deadlines and procedures for the filing of appeals and for the conduct of appeal hearings. The public employees' compensation appeals board may adopt other rules pursuant to chapter 91 to carry out its purpose. Nine members shall constitute a quorum at any board meeting. Decisions on the repricing of classes shall require at least the affirmative vote of the majority of a quorum to be valid.
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71	71	(e) Neither the public employees' compensation appeals board nor any of its members or staff shall consult with any public employer on any matter pending before the board except on notice and opportunity for the petitioner to participate.
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73	73	§76-B Public employees' compensation appeals process; repricing. (a) All petitions for appeals from affected persons on the repricing of a class shall be filed with the public employees' compensation appeals board.
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75	75	(b) Each appeal shall be filed within thirty days of the ratification, agreement, or issuance of the applicable collective bargaining agreement, supplemental agreement, or agreement reached through arbitration decision; provided that if a class is not repriced for a period of three years, an appeal may be filed at any time after the three-year period has expired.
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77	77	(c) Upon receipt of a petition filed pursuant to this section, the public employees' compensation appeals board shall give public notice of the time and place of the hearing. The public notice shall be given at least thirty days prior to the hearing. The hearing shall take place within one year of the filing of the petition and in the county in which the appeal is filed, unless otherwise agreed upon by the petitioner.
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79	79	(d) If the public employees' compensation appeals board determines that a class should not be repriced, the petition shall be closed, and the petitioner shall be precluded from filing a subsequent appeal for that class for two years from the date of the board's determination.
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81	81	(e) If the public employees' compensation appeals board determines that a class should be repriced, the public employees' compensation appeals board shall make adjustments to the affected class or classes where the appeals have been filed in the compensation plan that are necessary. The decision of the public employees' compensation appeals board shall be in writing, accompanied by separate findings, and binding on all jurisdictions.
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83	83	(f) Following the final adjustments, each director shall submit to the state legislature, through the office of the governor, a report setting forth the compensation plan and the cost thereof for its information and approval. The approved compensation plan shall be effective as of July 1 of each even‑numbered year.
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85	85	(g) The director shall assign new classes to salary ranges on the basis of the policies and standards established pursuant to this section. The assignments shall be effective immediately if the availability of funds is certified to by the respective fiscal officers and shall be in effect until adoption of the next compensation plan.
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87	87	(h) All decisions of the board under this section in favor of the person appealing and granting a higher compensation shall be retroactive to the date of the filed petition."
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89	89	SECTION 2. Section 76-1, Hawaii Revised Statutes, is amended to read as follows:
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91	91	§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.
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93	93	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:
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95	95	(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;
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97	97	(2) Impartial selection of individuals for public service by means of competitive tests which are fair, objective, and practical;
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99	99	(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;
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101	101	(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:
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103	103	(A) Contractual grievance procedure for employees covered by chapter 89; or
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105	105	(B) Internal complaint procedures and the merit appeals board for employees excluded from coverage under chapter 89;
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107	107	(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] agreed or determined in accordance with this chapter or chapter 89 for the repricing of classes; and
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109	109	(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."
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111	111	SECTION 3. Section 89-9, Hawaii Revised Statutes, is amended by amending subsection (f) to read as follows:
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113	113	"(f) The repricing of classes within an appropriate bargaining unit may be negotiated or determined as follows:
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115	115	(1) At the request of the exclusive representative and at times allowed under the collective bargaining agreement, the employer shall negotiate the repricing of classes within the bargaining unit. The negotiated repricing actions that constitute cost items shall be subject to the requirements in section 89-10; [[]and[]]
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117	117	(2) If repricing has not been negotiated under paragraph (1), the employer of each jurisdiction shall ensure establishment of procedures to periodically review, at least once in five years, unless otherwise agreed to by the parties, the repricing of classes within the bargaining unit. The repricing of classes based on the results of the periodic review shall be at the discretion of the employer. Any appropriations required to implement the repricing actions that are made at the employer's discretion shall not be construed as cost items[.]; or
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119	119	(3) By the public employees' compensation appeals board pursuant to section 76-B."
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121	121	SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for establishment of the public employees' compensation appeals board.
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123	123	The sum appropriated shall be expended by the department of accounting and general services for the purposes of this Act.
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125	125	SECTION 5. In codifying the new sections added by section 1 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
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127	127	SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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129	129	SECTION 7. This Act shall take effect upon its approval; provided that section 4 shall take effect on July 1, 2022.
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133	133	INTRODUCED BY: _____________________________
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135	135	INTRODUCED BY:
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143	143	Report Title: Public Employees' Compensation Appeals Board; Collective Bargaining; Classes; Repricing; Appropriation Description: Establishes the public employees' compensation appeals board to hear appeals requesting the repricing of a class. Appropriates moneys. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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149	149	Report Title:
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151	151	Public Employees' Compensation Appeals Board; Collective Bargaining; Classes; Repricing; Appropriation
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155	155	Description:
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157	157	Establishes the public employees' compensation appeals board to hear appeals requesting the repricing of a class. Appropriates moneys.
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167	167	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.