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<br /> -UJ bJ i1~ L..1 ld.l c <br /> <br /> <br /> <br /> <br /> Richard D. Nurdeman, Egg. <br /> David Z. Arakaws, Esq. <br /> J. P. Schmidt, Esq. <br /> August 4, 1998 <br /> Page 2 <br /> legal authority to unilaterally pay wage increase or other cost <br /> items which require specific appropriations from the respective <br /> legislative bodies. The non-cost items remain in effect. <br /> DISCUSSION <br /> <br /> The Legislature clearly reserved authority to fund or not <br /> fund cost items contained within any collective bargaining <br /> agreement reached between the public employer and the exclusive <br /> bargaining representatives. Section 89-10(b), Hawaii Revised <br /> Statutes (HRS), states: <br /> (b) All vest Items sha11 be subject to <br /> appropriations by the appropriate legislative <br /> bodies. The employer shall submit within ten <br /> days of the date on which the agreement is <br /> ratified by the employees concerned all cost <br /> items contained therein to the appropriate <br /> legislative bodies, except that it any cost <br /> items require appropriation by the state <br /> legislature and it is not in session at the <br /> time, the cost items shall be submitted for <br /> inclusion in the governor's next operating <br /> budget within tea days after the date on <br /> which the agreement as ratified. Who state <br /> legislature or the legislative bodies of the <br /> counties acting in concert, as the case may <br /> be, may approve or reject the cost items <br /> submitted to then, as a whole. If the state <br /> legislature or the Legislative body of any <br /> county rejeots any of the cost items <br /> submitted to them, all cost items submitted <br /> shall be returned to the parties for further <br /> bargaining. [Emphasis added). <br /> Section 89-2, HRS, defines cost items as including 'wagea, <br /> hours, and other terms and conditions of etaQloymsnt the <br /> implementation of which requires an appropriation by a <br /> legislative body.' <br /> The process to obtain appropriation to fund the cost items <br /> begins after the respective exclusive bargaining representatives <br /> notify the Office of Collective Bargaining that a negotiated <br /> agreement has been ratified. Upon receipt of such a notice, the <br /> employer is required to submit the cost items to the appropriate <br /> legislative bodies. The Governor, as the employer for the State, <br /> <br /> 08/04/98 17:23 TX/RX N0.8856 P.003 <br />