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CSSB 152(FIN): "An Act relating to geographic differentials for the salaries of certain state employees who are not members of a collective bargaining unit; relating to periodic salary surveys and preparation of an annual pay schedule regarding certain state employees; relating to certain state aid calculations based on geographic differentials for state employee salaries; and providing for an effective date."

00CS FOR SENATE BILL NO. 152(FIN) 01 "An Act relating to geographic differentials for the salaries of certain state 02 employees who are not members of a collective bargaining unit; relating to 03 periodic salary surveys and preparation of an annual pay schedule regarding 04 certain state employees; relating to certain state aid calculations based on 05 geographic differentials for state employee salaries; and providing for an effective 06 date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 22.15.220(b) is amended to read: 09  (b) Each magistrate shall receive annual compensation to be determined by the 10 supreme court. Salary increases shall be determined on the basis of percentage of pay 11 increase the legislature provides for state employees in the classified service. The base 12 salary of a magistrate shall be increased by a percentage equal to three and one-half 13 percent times the number of step increases provided under former AS 39.27.020 that 14 a state employee would receive working in the same election district. A magistrate's

01 annual compensation may be payable, at the option of the magistrate, either monthly 02 in 12 equal installments or semi-monthly in 24 equal installments. 03 * Sec. 2. AS 29.60.160(a) is amended to read: 04  (a) Payments to a municipality or other eligible recipient under AS 29.60.110 05 - 29.60.130 shall reflect area cost-of-living differentials. Payments shall be based on 06 the sum of per capita, per mile, and per bed or facility grants due each municipality 07 or other recipient multiplied by the appropriate area cost-of-living differential. The 08 area cost-of-living differential for each recipient shall be determined [ANNUALLY BY 09 ELECTION DISTRICT] under the provisions of former AS 39.27.020 and former 10 AS 39.27.030. Application of the area cost-of-living differential may not result in 11 distribution of an amount less than the amount of the payment determined without 12 reference to application of this section. 13 * Sec. 3. AS 29.60.290(b) is amended to read: 14  (b) The area cost-of-living differential payable to each municipality under this 15 section shall be determined [ANNUALLY BY ELECTION DISTRICT] under the 16 provisions of former AS 39.27.020 and former AS 39.27.030. Except as provided 17 in AS 29.60.300, application of the area cost-of-living differential may not result in a 18 payment that is less than the minimum payment determined under (a) of this section. 19 For purposes of this subsection, the election districts used are those designated by the 20 proclamation of reapportionment and redistricting of December 7, 1961, and retained 21 for the house of representatives by proclamation of the governor September 3, 1965. 22 * Sec. 4. AS 39.27 is amended by adding a new section to read: 23  Sec. 39.27.021. PAY DIFFERENTIALS. (a) The following pay differentials 24 are approved as an amendment to the basic salary schedule in AS 39.27.011: 25  Geographic Area Percentage Above or Below 26 (Election Districts) Basic Salary Schedule 27 3, 4, and 7 - 28  0 28  1, 2, 5, 6, and 29 - 33 5 29  34, 35, and 3610 30  37 - 40 20 31  Washington State minus 20

01  (b) With the exception of a pay differential for Washington state, a pay 02 differential authorized by (a) of this section applies only to that part of an employee's 03 base salary that does not exceed $50,000 annually, prorated by pay period. 04  (c) For purposes of determining the differential provided under (a) of this 05 section, and notwithstanding (b) of this section, an appointing authority may increase 06 the salary on which the geographic pay differential is computed by up to 20 percent 07 of the employee's base salary set out in AS 39.27.011 if 08  (1) the duty station for the position or job class is located in election 09 district 37, 38, 39, or 40; 10  (2) the position or job class requires the employee to hold a license to 11 practice law under AS 08.08 or to practice medicine under AS 08.64; and 12  (3) the director certifies that recruitment or retention for the position 13 or job class in that election district is so difficult that the increase is essential to 14 recruitment or retention of employees in the position. 15  (d) The director may establish salary differentials for positions in foreign 16 countries or in states other than the State of Washington. If the director establishes 17 a salary differential under this subsection, the director shall adjust the differential as 18 necessary to maintain equitable relationships between salaries for positions outside the 19 state and in the state. 20  (e) For purposes of (a) of this section, "election district" means an election 21 district designated in the governor's proclamation of reapportionment and redistricting 22 applicable to the 1994 general election. 23 * Sec. 5. AS 39.27 is amended by adding a new section to read: 24  Sec. 39.27.031. COST-OF-LIVING SURVEY. Subject to an appropriation for 25 this purpose, the director shall conduct a survey, at least every five years, to review 26 the pay differentials established in AS 39.27.021. The survey may address factors, as 27 determined by the director, that are also relevant in review of state salary schedules, 28 entitlement for beneficiaries of state programs, and payments for state service 29 providers. The survey must reflect the costs of living in various election districts of 30 the state, and Seattle, Washington, by using the cost of living in Anchorage as a base. 31 * Sec. 6. AS 39.27.045 is amended to read:

01  Sec. 39.27.045. DEFINITION. In AS 39.27.021 - 39.27.031 [AS 39.27.030 - 02 39.27.040], "director" means the director of the division of personnel. 03 * Sec. 7. AS 39.35.675(d) is amended to read: 04  (d) In this section "cost-of-living differential" means an adjustment to salary 05 based on the cost of living in the geographic region where the employee works and 06 includes a pay step differential under former AS 39.27.020 or under AS 39.27.021. 07 * Sec. 8. AS 44.31.020 is amended to read: 08  Sec. 44.31.020. DUTIES OF DEPARTMENT. The Department of Labor shall 09  (1) enforce the laws, and adopt regulations under them concerning 10 employer-employee relationships, including the safety, hours of work, wages, and 11 conditions of workers, including children; 12  (2) accumulate, analyze, and report labor statistics; 13  (3) operate systems of workers' compensation and unemployment 14 insurance; and 15  (4) gather data reflecting the cost of living in the various election 16 districts of the state upon request of the director of personnel under AS 39.27.031 17 [AS 39.27.030 - 39.27.040]. 18 * Sec. 9. AS 39.27.020, 39.27.030, 39.27.035, and 39.27.040 are repealed. 19 * Sec. 10. LIMITATION ON THE REDUCTION OF EMPLOYEE SALARIES. (a) So 20 long as the employee remains in the same geographic area, as defined in AS 39.27.021(a) and 21 (e), as enacted by sec. 4 of this Act, 22 (1) the salary that an employee is receiving on June 30, 1996, may not be 23 reduced by application of a provision of this Act until July 1, 1997; 24 (2) for the fiscal year beginning July 1, 1997, the salary that an employee is 25 receiving on June 30, 1997, may not be reduced by more than five percent as a result of the 26 application of a provision of this Act. 27 (b) If an employee moves to another geographic area after June 30, 1996, both the pay 28 differential in AS 39.27.021(a), as amended by sec. 4 of this Act, and the limitation on 29 applicable salary in AS 39.27.021(b), as amended by sec. 4 of this Act, apply to that 30 employee's salary on the effective date of the move. 31 (c) Nothing in this Act prohibits a reduction in an employee's salary as a result of a

01 voluntary or involuntary demotion. 02 * Sec. 11. Nothing in this Act modifies or terminates the terms of a collective bargaining 03 agreement in effect on July 1, 1996. 04 * Sec. 12. Section 10 of this Act is repealed July 1, 1998. 05 * Sec. 13. This Act takes effect July 1, 1996.