HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 77-9, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "77-9  Initial appointments and shortage categories.(a)
 4 All initial appointments shall be made at the first step of the
 5 appropriate salary range[.], except as provided below.
 6      (b)  In the event that recruitment of an employee is not
 7 practicable at the first step, the director, after appropriate
 8 notice and advertising, may recruit at any step within the
 9 appropriate salary range at which a suitable employee can be
10 recruited.
11      (c)  Whenever a labor shortage exists in a class or group of
12 positions in a class, the director, with the prior approval of
13 the chief executive, may declare the class or group of positions
14 to be a shortage category.  The director may review the impact of
15 making such a declaration on other classes or groups of positions
16 in classes within the same series.  If the director finds that it
17 is necessary to preserve internal relationships within the
18 series, the director may declare those other classes or groups of
19 positions as related shortage categories.  The director shall

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 1 review each shortage category periodically, but at least once
 2 each year, to determine whether the shortage category should be
 3 continued.  In making this determination, the following procedure
 4 shall be followed:
 5      (1)  The director shall set the new entry salary of a
 6           shortage category at an amount that is fair and
 7           reasonable and at which employees can be recruited from
 8           the labor market;
 9      (2)  The director shall set the new entry salary of a
10           related shortage category in consideration of
11           appropriate internal pay relationships;
12      (3)  Whenever a new entry salary is determined for a class
13           or group of positions in a class under paragraphs (1)
14           and (2), incumbents thereof who are being paid less
15           than the new entry salary shall have their pay adjusted
16           to an amount that is not less than the new entry salary
17           in a manner determined by the director;
18      (4)  In addition to establishing a new entry rate, the
19           director, if necessary to promote retention of existing
20           incumbents, may provide alternative adjustments to the
21           salaries of incumbents in a shortage category and
22           related shortage category.  No adjustment under this
23           paragraph shall result in a salary that exceeds the

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 1           maximum step of the pay range;
 2      (5)  The director is authorized to provide similar
 3           adjustments for positions and employees in the excluded
 4           managerial compensation plan;
 5      (6)  As a result of the periodic review of each shortage
 6           category, the director may adjust salaries established
 7           under this subsection.  If the director determines that
 8           a shortage no longer exists, the director shall
 9           reestablish the first step of the appropriate salary
10           range as the entry salary rate for the class or group
11           of positions;
12      (7)  In the event that the new entry salary for a shortage
13           category or related shortage category is subsequently
14           lowered, incumbents shall not have their pay reduced so
15           long as they remain in the same shortage class or group
16           of positions; and
17      (8)  If employees move from their respective shortage or
18           related shortage positions, the director shall adjust
19           their pay appropriately.
20      (d)  The director shall maintain a list of all recruitment
21 above the first step and shortage category determinations under
22 this section and the justifications therefor.
23      (e)  The director may announce vacancies at a range of

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 1 rates, rather than at the first step as provided in subsection
 2 (a), for professional and scientific positions and positions in
 3 the excluded managerial compensation plan.  The range shall
 4 consist of the first step and may consist of additional steps or
 5 rates up to and including, but not exceeding, the midpoint of the
 6 salary range.
 7      (1)  The director shall determine the number of steps to be
 8           made available under this subsection at any given time
 9           and the minimum number of creditable years of
10           experience required.
11      (2)  The appointing authority, as part of the selection and
12           appointment process, may evaluate the relevancy of each
13           applicant's qualifications to the specific duties of
14           the position and may, in recognition of pertinent
15           education or experience which exceed the minimum
16           qualification requirements of the class, make an
17           initial appointment at an appropriate step within the
18           advertised range.  All such evaluations and
19           appointments shall be in accordance with the guidelines
20           adopted by the director.  Only excess experience or
21           equivalent education of a kind and level directly
22           relevant to the work to be performed by the appointee
23           shall be credited under this provision.

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 1      (3)  Nothing in this subsection precludes the employer from
 2           offering a higher starting rate under subsection (b) or
 3           (c)."
 4      SECTION 2.  Statutory material to be repealed is bracketed.
 5 New statutory material is underscored.
 6      SECTION 3.  This Act shall take effect upon its approval.
 8                           INTRODUCED BY:  _______________________

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