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CSHB 317(MLV): "An Act relating to recruitment, selection, appointment, promotion, and nonretention of state employees and to the duties of the Department of Administration concerning those and other related functions; and providing for an effective date."

00CS FOR HOUSE BILL NO. 317(MLV) 01 "An Act relating to recruitment, selection, appointment, promotion, and 02 nonretention of state employees and to the duties of the Department of 03 Administration concerning those and other related functions; and providing for an 04 effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 39.25.080(a) is amended to read: 07  (a) State personnel records, including employment applications and 08 examination and other assessment materials, are confidential and are not open to 09 public inspection except as provided in this section. 10 * Sec. 2. AS 39.25.120(b) is amended to read: 11  (b) A person holding a position in the partially exempt service is not required 12 to complete an assessment [TAKE AN EXAMINATION OR QUALIFY OR EARN 13 A PLACE ON A REGISTER,] and is not eligible for a hearing by the personnel board 14 in case of dismissal, demotion, or suspension. Positions in the partially exempt service

01 are specifically exempt from the rules established under AS 39.25.150(3) - (10), (12), 02 (13), and (16). 03 * Sec. 3. AS 39.25.130(a) is amended to read: 04  Sec. 39.25.130. Extension of partially exempt and classified services. (a) 05 The personnel board, upon written recommendation of the commissioner of 06 administration, may extend the partially exempt service to include any position in the 07 classified service that, in the judgment of the board, 08  (1) involves principal responsibility for the determination of policy; 09  (2) involves principal responsibility for the way in which policies are 10 carried out; or 11  (3) involves responsibilities and duties of a type not susceptible to the 12 ordinary recruiting and assessment [EXAMINING] procedures. 13 * Sec. 4. AS 39.25.150 is amended to read: 14  Sec. 39.25.150. Scope of the rules. The personnel rules must provide for 15  (1) the preparation, maintenance, and revision by the director of 16 personnel, subject to approval of the commissioner of administration and the personnel 17 board, of a position classification plan for all positions in the classified and partially 18 exempt services; the position classification plan shall include 19  (A) a grouping together of all positions into classes on the basis 20 of duties and responsibilities; 21  (B) an appropriate title, a description of the duties and 22 responsibilities, training and experience qualifications, and other necessary 23 specifications for each class of positions; 24  (2) the preparation, maintenance, revision and administration by the 25 director of personnel of a pay plan for all positions in the classified and partially 26 exempt services; the pay plan (A) shall be based upon the position classification plan; 27 (B) shall provide for fair and reasonable compensation for services rendered, and 28 reflect the principle of like pay for like work; (C) may be amended, approved, or 29 disapproved by the legislature in regular or special session; after the pay plan is in 30 effect, a salary or wage payment may not be made to a state employee covered by the 31 plan unless the payment is in accordance with this chapter and the rules adopted under

01 this chapter or unless the payment is in accordance with a valid agreement entered into 02 in accordance with AS 23.40; 03  (3) the use of employee selection methods, including open competitive 04 assessment devices [EXAMINATIONS], when appropriate, that will fairly evaluate 05 [TEST] the capacity and fitness of the person assessed [EXAMINED] to discharge the 06 duties of the position [CLASS] in which employment is sought; 07  (4) the formulation of a list [ESTABLISHMENT AND 08 MAINTENANCE OF ELIGIBLE LISTS] for appointment and promotion to a position 09 [PROVIDING THE NAMES OF ELIGIBLE CANDIDATES IN ORDER OF THEIR 10 RELATIVE PERFORMANCE IN THE EXAMINATIONS]; 11  (5) the procedure for filling positions [CERTIFYING ELIGIBLE 12 CANDIDATES]; the rule adopted under this paragraph may include procedures 13 providing a preference for [CERTIFYING] local residents when appropriate; 14  (6) promotions from within the state service when there are qualified 15 candidates in the state service; vacancies shall be filled by promotion whenever 16 practicable and in the best interest of the state service , and promotion shall be by 17 competitive assessment [EXAMINATION] whenever possible; in considering 18 promotions, the applicants' qualifications, performance records, seniority, and conduct 19 shall be evaluated; 20  (7) a period of probation not to exceed one year before an appointment 21 to a position becomes permanent, except that a permanent employee receiving a 22 promotional appointment retains permanent status in the service and job class from 23 which appointed for the duration of the probationary period and may be demoted to 24 a former class without right of appeal, notwithstanding AS 39.25.170, but , if the 25 employee is dismissed from the service , the appeal rights under AS 39.25.170 apply; 26  (8) nonpermanent and emergency appointments to positions in the state 27 service in accordance with AS 39.25.195 - 39.25.200; 28  (9) provisional appointment without competitive assessment 29 [EXAMINATION] when the recruitment and assessment procedures have not 30 identified qualified candidates in sufficient number [APPROPRIATE ELIGIBLE 31 LISTS ARE NOT AVAILABLE];

01  (10) transfers from one department to another and from another merit 02 system jurisdiction to the state service; 03  (11) transfers from one area of the state to another; 04  (12) the reinstatement of a person who resigns in good standing; 05  (13) layoffs for reason of lack of money or work, abolition of positions, 06 or material changes in duties or organization; both performance and seniority records 07 shall be considered in the development of layoff orders; 08  (14) the development, maintenance, and use of employee performance 09 records; 10  (15) the establishment of disciplinary measures , which may include 11 disciplinary suspension without pay; 12  (16) the procedures for review of disputed personnel actions, for 13 resolving employee and interagency grievances, and for resolving grievances of the 14 general public concerning the operation of the state personnel system; 15  (17) hours of work for all employees in the state service; 16  (18) methods and procedures covering overtime work and pay; 17  (19) the granting of employment preference rights, not within the area 18 of promotion, to a veteran or former prisoner of war under AS 39.25.159; 19  (20) the employment of persons in permanent positions on a part-time 20 basis of 15 hours or more a week, including the employment of two persons to fill one 21 permanent full-time position; these employees shall be designated as permanent part- 22 time employees; 23  (21) the granting of employment preference to individuals with severe 24 disabilities [SEVERELY HANDICAPPED PERSONS]; this includes the right to 25 provisional appointment without competitive assessment [EXAMINATION] for 26 periods of up to four months and the granting of eligibility to an individual with a 27 severe disability [A SEVERELY HANDICAPPED PERSON] provisionally appointed 28 under the rules who demonstrates ability to perform the job for permanent appointment 29 without competitive assessment [EXAMINATION]; provisional employment under this 30 paragraph may not exceed four months during a 12-month period; "individual with 31 a severe disability," ["SEVERELY HANDICAPPED"] as used in this paragraph ,

01 means an individual [PERSONS] certified by the director of the division of vocational 02 rehabilitation to be severely disabled [SEVERELY HANDICAPPED]; 03  (22) the establishment of programs facilitating the employment of 04 disadvantaged persons; 05  (23) the delegation, when feasible, of personnel responsibilities and 06 duties to the principal departments of the executive branch; 07  (24) the establishment of a transition period of up to 12 months for an 08 employee to be reappointed to a classified position if the employee's position is 09 withdrawn from the partially exempt or exempt service and placed in the classified 10 service; 11  (25) other rules and administrative regulations, not inconsistent with 12 this chapter, that are necessary for its enforcement. 13 * Sec. 5. AS 39.25.159(a) is amended to read: 14  (a) A veteran or former prisoner of war who possesses the necessary 15 qualifications for a position or job classification applied for under this chapter is 16 entitled to a preference under this subsection. In an assessment using numerical 17 ratings, points equal to five percent of the points available from the assessment 18 device or devices shall be added to the passing score of a veteran, and points 19 equal to 10 percent of the points available from the assessment device or devices 20 shall be added to the passing score of a disabled veteran or former prisoner of 21 war. In an assessment not using numerical ratings, consideration shall be 22 afforded to a veteran; additionally, an opportunity to interview for the position 23 shall be afforded to a disabled veteran or [EXAMINATION TO DETERMINE THE 24 QUALIFICATION OF APPLICANTS FOR THE CLASSIFIED SERVICE UNDER 25 MERIT SYSTEM EXAMINATION, FIVE POINTS SHALL BE ADDED TO THE 26 PASSING GRADE OF A VETERAN, 10 POINTS SHALL BE ADDED TO THE 27 PASSING GRADE OF A DISABLED VETERAN, OR 10 POINTS SHALL BE 28 ADDED TO THE PASSING GRADE OF] a former prisoner of war. A person may 29 receive preference [POINTS] under only one of the categories described in this 30 subsection or in (c) of this section. A person may use the preference without 31 limitation when being considered for a position for which persons who are not

01 currently state employees are being considered. If the recruitment for a position 02 [CONSIDERATION OF APPLICANTS] is limited to state employees, preference 03 [POINTS] under this subsection may not be counted. If a position in the classified 04 service is eliminated, employees shall be released in accordance with rules adopted 05 under AS 39.25.150(13). In the case of a comparison of employees with equal 06 qualifications on the factors adopted under AS 39.25.150(13) [THAT GIVE DUE 07 EFFECT TO ALL FACTORS. IF ALL JOB QUALIFICATIONS ARE EQUAL], a 08 veteran or former prisoner of war shall be given preference over a person who is 09 [WAS] not a veteran or former prisoner of war, and the veteran or former prisoner 10 of war shall be kept on the job. This subsection may not be interpreted to amend the 11 terms of a collective bargaining agreement. 12 * Sec. 6. AS 39.25.159(c) is amended to read: 13  (c) A member of the national guard who possesses the necessary qualifications 14 for a position or job classification applied for under this chapter is entitled to a 15 preference under this subsection. In an assessment using numerical ratings, points 16 equal to five percent of the points available from the assessment device or devices 17 shall be added to the passing score of a member of the national guard. In an 18 assessment not using numerical ratings, consideration shall be afforded to 19 [EXAMINATION TO DETERMINE THE QUALIFICATION OF APPLICANTS FOR 20 THE CLASSIFIED SERVICE UNDER MERIT SYSTEM EXAMINATION, FIVE 21 POINTS SHALL BE ADDED TO THE PASSING GRADE OF] a member of the 22 national guard. A person may use the preference without limitation when being 23 considered for a position for which persons who are not currently state employees are 24 being considered. If the recruitment for a position [CONSIDERATION OF 25 APPLICANTS] is limited to state employees, preference [POINTS] under this 26 subsection may not be counted. If a position in the classified service is eliminated, 27 employees shall be released in accordance with rules adopted under 28 AS 39.25.150(13). In the case of a comparison of employees with equal 29 qualifications on the factors adopted under AS 39.25.150(13) [THAT GIVE DUE 30 EFFECT TO ALL FACTORS. IF ALL JOB QUALIFICATIONS ARE EQUAL], a 31 member of the national guard shall be given preference over a person who is [WAS]

01 not a veteran, a former prisoner of war, or a member of the national guard. This 02 subsection may not be interpreted to amend the terms of a collective bargaining 03 agreement. In this subsection, "member of the national guard" means a person who 04 is presently serving as a member of the Alaska National Guard and who has at least 05 eight years of service in the Alaska National Guard. 06 * Sec. 7. AS 39.25.159(d) is amended by adding a new paragraph to read: 07  (4) "consideration" means reviewing a person's entire application in 08 order to determine whether the person should be selected, rejected, or admitted to 09 further steps in the assessment or selection process. 10 * Sec. 8. AS 39.25.160(h) is amended to read: 11  (h) A person may not knowingly make a false statement, [CERTIFICATE,] 12 mark, rating, or report with regard to an assessment [A TEST], certification, or 13 appointment made under this chapter or in any manner commit a fraud preventing the 14 impartial execution of this chapter and the personnel rules adopted under this chapter. 15 * Sec. 9. AS 39.25.160(i) is amended to read: 16  (i) A person may not obstruct the right of another person to assessment 17 [EXAMINATION], eligibility, certification, appointment, or promotion under this 18 chapter. 19 * Sec. 10. AS 39.25.195(b) is amended to read: 20  (b) An appointment to state service, except an emergency appointment, shall 21 be made from the list of applicants qualified for the position [AN APPLICABLE 22 ELIGIBLE LIST OR DISPATCHING REGISTER] unless , in appropriate 23 circumstances , the director has waived this requirement. 24 * Sec. 11. AS 39.25.195(c) is amended to read: 25  (c) An appointment of a nonpermanent employee may not be made unless the 26 request for authorization is approved by the director, adequate money is available for 27 the anticipated duration of the appointment, and the director determines that 28  [(1)] the hiring department or agency has certified that 29  (1) the legislature has appropriated money for the work in question 30 knowing that it is to be performed by a nonpermanent employee; 31  (2) [THE HIRING DEPARTMENT OR AGENCY HAS CERTIFIED

01 THAT] there is an immediate need to fill an authorized, permanent position and it is 02 impractical either to establish or recruit for the position [OR TO MAKE 03 CERTIFICATION] within a reasonable time; 04  (3) [THE HIRING DEPARTMENT OR AGENCY HAS CERTIFIED 05 THAT] an immediate need exists and the director determines that the hiring 06 department or agency could not reasonably have been expected to anticipate and meet 07 that need through the creation of a permanent position; or 08  (4) [THE HIRING DEPARTMENT OR AGENCY HAS CERTIFIED 09 THAT] a program or project exists and the director determines that the need for 10 employees can most appropriately be met through the use of program or project 11 employees. 12 * Sec. 12. AS 39.25.196(a) is amended to read: 13  (a) Notwithstanding the provisions of AS 39.25.195, a hiring department or 14 agency may grant a preference to local residents in the appointment of nonpermanent 15 employees or in the appointment of permanent employees to perform seasonal work 16 assignments of 180 calendar days or less in a 12-month period. If there are no local 17 residents on the applicable list of applicants qualified for [ELIGIBLE LIST FOR] a 18 nonpermanent or a permanent seasonal position or if the local residents on the 19 applicable [ELIGIBLE] list of applicants qualified for the position are unavailable, 20 the hiring department or agency may obtain referrals of qualified job applicants for 21 these positions from the job service office of the Department of Labor and Workforce 22 Development serving the area and , from those applicants , select a qualified person who 23 is a local resident for the position. 24 * Sec. 13. AS 44.21.020 is amended to read: 25  Sec. 44.21.020. Duties of department. The Department of Administration 26 shall 27  (1) make surveys and studies to improve administrative procedures, 28 methods, and organization; 29  (2) keep general accounts; 30  (3) approve vouchers and disburse funds for all purposes; 31  (4) operate centralized purchasing and supply services, and necessary

01 storerooms and warehouses; 02  (5) allot space in state buildings to the various departments according 03 to need and available space; 04  (6) supervise telephone, mailing, messenger, duplicating, and similar 05 services adaptable to centralized management; 06  (7) administer the public employees' retirement system and teachers' 07 retirement system; 08  (8) administer a statewide personnel program, including central 09 personnel services such as recruitment, assessment [EXAMINATION], position 10 classification, and pay administration; 11  (9) administer the Alaska Pioneers' Homes; 12  (10) administer and supervise a statewide automatic data processing 13 program; 14  (11) study, design, implement, and manage the telecommunications 15 systems and services of the state under AS 44.21.305 - 44.21.330; 16  (12) [REPEALED 17  (13)] administer state veterans' home facilities; in carrying out its duties 18 under this paragraph, the department shall consult with the Department of Military and 19 Veterans' Affairs. 20 * Sec. 14. AS 39.25.153(b), 39.25.153(c), and 39.25.153(d) are repealed. 21 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section 22 to read: 23 TRANSITION: REGULATIONS. The personnel board may proceed to adopt 24 amendments to the personnel rules to implement the changes made by this Act. The 25 amendments to the personnel rules take effect under AS 39.25.140, but not before the effective 26 date of secs. 1 - 14 of this Act. 27 * Sec. 16. Section 15 of this Act takes effect immediately under AS 01.10.070(c).