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SCS CSHB 417(FIN): "An Act relating to the compensation for certain public officials, officers, and employees not covered by collective bargaining agreements, to pay increments for longevity in state service, and to a State Officers Compensation Commission; providing for an effective date by repealing the effective dates of certain sections of ch. 124, SLA 1986; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 417(FIN) 01 "An Act relating to the compensation for certain public officials, officers, and employees 02 not covered by collective bargaining agreements, to pay increments for longevity in state 03 service, and to a State Officers Compensation Commission; providing for an effective 04 date by repealing the effective dates of certain sections of ch. 124, SLA 1986; and 05 providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 16.43.060 is amended to read: 08 Sec. 16.43.060. Compensation. Members of the commission are in the exempt 09 service and are entitled to a monthly salary equal to a step in [STEP C,] Range 27 10 [26] of the salary schedule in AS 39.27.011 [AS 39.27.011(a) FOR JUNEAU, 11 ALASKA]. 12 * Sec. 2. AS 24.10.100 is amended to read: 13 Sec. 24.10.100. Salary of legislators. Legislators shall receive a [THE]

01 monthly salary under AS 39.23 [FOR EACH MEMBER OF THE LEGISLATURE IS 02 $2,001]. The president of the senate and the speaker of the house of representatives 03 may receive additional compensation under AS 39.23 [ARE EACH ENTITLED 04 TO AN ADDITIONAL $500 A YEAR] during tenure of office. 05 * Sec. 3. AS 24.10.130 is amended to read: 06 Sec. 24.10.130. Moving expenses and per diem allowance. (a) A member of 07 the legislature may be [IS] entitled to reimbursement for the expenses of moving 08 between the member's place of residence and the capital city for the purpose of 09 attending a regular session of the legislature. 10 (b) Legislators and officers and employees of the legislative branch of 11 government may be [ARE] entitled to a per diem allowance. 12 (c) The Alaska Legislative Council shall adopt a policy in accordance with 13 AS 39.23.540(d) regarding reimbursement for moving expenses applicable to all 14 legislators and an applicable per diem allowance policy. The policy must set 15 conditions for the reimbursement for moving expenses and payment of per diem and 16 prescribe the amounts of reimbursement adapted to the special needs of the legislative 17 branch as determined by the council. 18 * Sec. 4. AS 26.05.260(i) is amended to read: 19 (i) When active state service is authorized by the governor or by the adjutant 20 general as the governor's designee, members of the Alaska State Defense Force are 21 entitled to receive, for each day of active service under AS 26.05.070, pay and 22 allowances as provided in this subsection. Pay is equal to that provided under 23 AS 39.27.011(a) - (f) and 39.27.020 [AS 39.27.011 - 39.27.020] for equivalent 24 assignments of state officials or employees, including adjustments under 25 AS 39.27.025, if applicable. Allowances shall be paid to the same extent, in the same 26 manner, and under the same conditions as provided for state officials and employees 27 under AS 39.20.110 - 39.20.170. However, pay or allowances are not authorized for 28 training or community service activities of members of the Alaska State Defense 29 Force. 30 * Sec. 5. AS 36.30.010(d) is amended to read: 31 (d) The annual salary of the chief procurement officer is range 27 [24] of the

01 salary schedule established in AS 39.27.011. 02 * Sec. 6. AS 39.20.010(a) is amended to read: 03 (a) The annual salary of the governor shall be in accordance with AS 39.23 04 [IS $125,000]. 05 * Sec. 7. AS 39.20.030(a) is amended to read: 06 (a) The annual salary of the lieutenant governor shall be in accordance with 07 AS 39.23 [IS $100,000]. 08 * Sec. 8. AS 39.20.080(a) is amended to read: 09 (a) The monthly salary of the head of each principal executive department of 10 the state shall be in accordance with AS 39.23 [IS NOT LESS THAN RANGE 28 11 NOR MORE THAN RANGE 30 OF THE SALARY SCHEDULE IN 12 AS 39.27.011(a) FOR JUNEAU, ALASKA]. 13 * Sec. 9. AS 39.20.080(b) is amended to read: 14 (b) The monthly salary of a deputy head of a principal executive department 15 of the state is equal to a step in [NOT LESS THAN STEP A NOR MORE THAN 16 STEP F,] Range 28 of the salary schedule in AS 39.27.011 [AS 39.27.011(a) FOR 17 JUNEAU, ALASKA]. 18 * Sec. 10. AS 39.23 is amended by adding new sections to read: 19 Sec. 39.23.500. Compensation commission established. (a) The State 20 Officers Compensation Commission is established. The commission is composed of 21 five members who are state residents appointed by the governor. One member shall be 22 appointed from a list of two or more candidates submitted by the president of the 23 senate. One member shall be appointed from a list of two or more candidates 24 submitted by the speaker of the house of representatives. Members serve for staggered 25 terms of four years. Except as provided in AS 39.05.080(4), a vacancy shall be filled 26 for the balance of the unexpired term. A commission member may serve not more than 27 two complete consecutive terms. 28 (b) The commission shall annually elect a member to chair its meetings. A 29 majority of the commission members constitutes a quorum to transact business. The 30 affirmative vote of three members is required to approve the commission's 31 recommendations on compensation.

01 (c) The commission shall meet at the call of the chair. Notice of a meeting 02 shall be mailed to each member at least 20 days before the date scheduled for the 03 meeting. 04 (d) The commission shall meet to discuss its findings and recommendations at 05 least twice before submitting its final report to the presiding officers of each house of 06 the legislature and the governor. 07 (e) For budgetary purposes, the commission shall be established in the 08 Department of Administration. 09 Sec. 39.23.510. Prohibitions against state or municipal service. (a) During 10 membership on the commission, a member of the commission may not 11 (1) be employed by the state, including the University of Alaska; 12 (2) serve as a member of another state board, commission, or 13 authority; or 14 (3) hold elective state or municipal office. 15 (b) A member of the commission may not, in the four years preceding that 16 member's appointment, have served in an office or position for which the commission 17 shall submit a recommendation under AS 39.23.540. 18 Sec. 39.23.520. Compensation. Members of the commission serve without 19 compensation but are entitled to per diem and travel expenses authorized for members 20 of boards and commissions under AS 39.20.180. 21 Sec. 39.23.530. Staff. The director of personnel in the Department of 22 Administration shall serve as ex officio secretary to the commission and provide 23 research, technical, and administrative services. 24 Sec. 39.23.540. Duties of the commission. (a) The commission shall review 25 the salaries, benefits, and allowances of members of the legislature, the governor, the 26 lieutenant governor, and each principal executive department head and prepare a 27 report on its findings at least once every two years, but not more frequently than every 28 year. The commission shall notify the legislature that the report is available. 29 (b) The commission may request reports or studies from any state agency as to 30 the rate and form of compensation, benefits, and allowances for legislators, the 31 governor, the lieutenant governor, and each executive department head. A state agency

01 from which a report or a study is requested shall furnish it within a period of time 02 prescribed by the commission. 03 (c) By November 15, the commission shall prepare its preliminary findings 04 and recommendations for compensation of state officers that is reasonable and 05 equitable. The commission shall give reasonable public notice of its preliminary 06 findings and recommendations, solicit public comments, and give due regard to the 07 public comments, before submitting a final report under (d) of this section. 08 (d) The commission shall make available to the governor and presiding 09 officers of each house of the legislature a final report of its findings and 10 recommendations as to the rate and form of compensation, benefits, and allowances 11 for legislators, the governor, the lieutenant governor, and each principal executive 12 department head during the first 10 days of a legislative session. Subject to (g) of this 13 section and unless a bill disapproving all the recommendations for all officers listed in 14 this section is enacted into law within 60 days after the recommendations are 15 submitted to the governor and presiding officers of each house of the legislature, a 16 recommendation as to the compensation, benefits, and allowances for 17 (1) a legislator has the force of law and becomes effective on the first 18 day of the next regular legislative session; and 19 (2) the governor, the lieutenant governor, and each principal executive 20 department head has the force of law and becomes effective on the first day of the 21 fiscal year following the fiscal year in which the recommendation is submitted. 22 (e) The commission may prepare amendments to the report submitted under 23 (d) of this section and notify the legislature that the amendments are available. 24 (f) A commission member who does not concur in the proposed or final 25 recommendations may attach written objections to the commission's report of its 26 findings and recommendations. 27 (g) A recommendation under this section increasing the compensation, 28 benefits, and allowances of a public officer is not effective unless all recommended 29 increases included in the final report under (d) of this section are fully funded by 30 appropriations. 31 Sec. 39.23.550. Recommendations relating to compensation. (a) A

01 recommendation of the commission may not have the effect of reducing the 02 compensation or benefits of the governor and lieutenant governor who are in office or 03 an executive department head who is appointed on or before the effective date of the 04 commission's recommendation. 05 (b) The commission may recommend reduction in compensation for 06 individuals who become governor, lieutenant governor, or an executive department 07 head after the effective date of the commission's recommendation. 08 Sec. 39.23.560. Recommendations relating to benefits. The 09 recommendations of the commission relating to benefits may not include any 10 recommendation relating to health, retirement, disability, or death benefits under 11 AS 39.30 and AS 39.35 for members of the legislature, the governor, the lieutenant 12 governor, and each principal executive department head. 13 Sec. 39.23.570. Filing with lieutenant governor and certification. The 14 commission shall, on transmitting its final recommendations for the compensation of 15 legislators to the legislature, file the recommendations in the office of the lieutenant 16 governor. When the recommendations become effective, the commission shall certify 17 the copy of the recommendations on file in the office of the lieutenant governor. 18 Sec. 39.23.580. Policy of the legislature. It is the policy of the legislature that 19 the commission recommend an equitable rate and form of compensation, benefits, and 20 allowances for legislators. 21 Sec. 39.23.590. Administrative Procedure Act inapplicable. AS 44.62 22 (Administrative Procedure Act) does not apply to proceedings of the commission. 23 Sec. 39.23.599. Definition. In AS 39.23.500 - 39.23.599, "commission" means 24 the State Officers Compensation Commission. 25 * Sec. 11. AS 39.27.011(a) is repealed and reenacted to read: 26 (a) The following monthly basic salary schedule is approved as the pay plan 27 for classified and partially exempt employees in the executive branch of the state 28 government who are not members of a collective bargaining unit established under the 29 authority of AS 23.40.070 - 23.40.260 (Public Employment Relations Act), and for 30 employees of the legislature under AS 24: 31 Range Step Step Step Step Step Step

01 No. A B C D E F 02 05 1892 1945 1999 2056 2117 2174 03 06 1999 2056 2117 2174 2238 2303 04 07 2117 2174 2238 2303 2374 2449 05 08 2238 2303 2374 2449 2518 2596 06 09 2374 2449 2518 2596 2679 2755 07 10 2518 2596 2679 2755 2840 2922 08 11 2679 2755 2840 2922 3022 3118 09 12 2840 2922 3022 3118 3223 3332 10 13 3022 3118 3223 3332 3449 3572 11 14 3223 3332 3449 3572 3697 3837 12 15 3449 3572 3697 3837 3960 4109 13 16 3697 3837 3960 4109 4257 4407 14 17 3960 4109 4257 4407 4558 4715 15 18 4257 4407 4558 4715 4861 5046 16 19 4558 4715 4861 5046 5203 5393 17 20 4861 5046 5203 5393 5555 5761 18 21 5203 5393 5555 5761 5938 6153 19 22 5555 5761 5938 6153 6353 6582 20 23 5938 6153 6353 6582 6801 7054 21 24 6353 6582 6801 7054 7289 7536 22 25 6801 7054 7289 7536 7809 8100 23 26 7054 7289 7536 7809 8100 8391 24 27 7289 7536 7809 8100 8391 8707 25 28 7536 7809 8100 8391 8707 9010 26 29 7809 8100 8391 8707 9010 9327 27 30 8100 8391 8707 9010 9327 9655. 28 * Sec. 12. AS 39.27.011(e) is amended to read: 29 (e) Effective July 1, 2008 [2005], the amounts set out in the salary schedule 30 contained in (a) of this section are increased by three [TWO] percent. 31 * Sec. 13. AS 39.27.011(f) is amended to read:

01 (f) Effective July 1, 2009 [2006], the amounts set out in the salary schedule 02 contained in (a) of this section, as increased under (e) of this section, are increased by 03 three [TWO] percent. 04 * Sec. 14. AS 39.27.011 is amended by adding new subsections to read: 05 (h) Pay increments, computed at the rate of 3.75 percent of the employee's 06 base salary, shall be provided after an employee has remained in the final step within a 07 given range for two years, and every two years thereafter, if, at the time the employee 08 becomes eligible for the increment, the employee's current annual rating by the 09 employee's supervisors is designated as "good" or higher. 10 (i) Pay increments provided for in (h) of this section are approved under 11 AS 39.25.150(2) as an amendment to the pay plan for employees of the state. 12 (j) Subsections (h) and (i) of this section apply to employees of the legislature 13 only if the committee responsible for adopting employment policies concerning the 14 employee adopts a written policy that (h) and (i) of this section apply. Subsections (h) 15 and (i) of this section apply to the employees of the office of the ombudsman only if 16 the ombudsman adopts a policy that (h) and (i) of this section apply. Subsections (h) 17 and (i) of this section apply to the employees of the office of victims' rights only if the 18 victims' advocate adopts a policy that (h) and (i) of this section apply. 19 * Sec. 15. AS 42.04.020(f) is amended to read: 20 (f) Members of the commission are in the exempt service and are entitled to a 21 monthly salary equal to a step in [STEP C,] Range 27 [26], of the salary schedule in 22 AS 39.27.011(a) for Juneau, Alaska. The chair of the commission is entitled to a 23 monthly salary equal to a step in [STEP C,] Range 27 [,] of the salary schedule in 24 AS 39.27.011(a) for Juneau, Alaska. 25 * Sec. 16. AS 39.23.200, 39.23.210, 39.23.220, 39.23.230, 39.23.240, 39.23.250, 39.23.260, 26 39.23.270, and 39.23.400 are repealed. 27 * Sec. 17. AS 39.27.022 is repealed. 28 * Sec. 18. Sections 5, 6, 7, and 8, ch. 124, SLA 1986, and that portion of sec. 12, ch. 124, 29 SLA 1986, that provides for the delayed repeal of AS 24.10.100 and AS 24.10.105 are 30 repealed. 31 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to

01 read: 02 SALARY ADJUSTMENTS FOR CERTAIN EXEMPT OFFICERS AND 03 EMPLOYEES OF THE EXECUTIVE BRANCH. (a) Public officers and permanent and 04 temporary employees in the executive branch of the state government, other than the governor 05 and lieutenant governor, who are in the exempt service under AS 39.25.110, are not members 06 of a collective bargaining unit established under AS 23.40.070 - 23.40.260 (Public 07 Employment Relations Act), and are not otherwise covered by AS 39.27.011(a), are entitled 08 to receive salaries comparable to those received by classified and partially exempt employees 09 of the executive branch under AS 39.27.011(a), as repealed and reenacted by sec. 11 of this 10 Act, and under AS 39.27.011(e) and (f), as amended by secs. 12 and 13 of this Act. 11 (b) The agencies employing noncovered exempt officers and employees covered by 12 this section may adopt compensation policies that provide for pay increments under 13 AS 39.27.011(h) and (i), enacted by sec. 14 of this Act. 14 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 SALARY ADJUSTMENTS FOR CERTAIN EMPLOYEES OF THE JUDICIAL 17 BRANCH. (a) Permanent and temporary employees and magistrates in the judicial branch of 18 the state government, other than justices and judges, who are not members of a collective 19 bargaining unit established under AS 23.40.070 - 23.40.260 (Public Employment Relations 20 Act), and are not otherwise covered by AS 39.27.011(a), are entitled to receive salary 21 adjustments comparable to those received by classified and partially exempt employees of the 22 executive branch under AS 39.27.011(a), as repealed and reenacted by sec. 11 of this Act, and 23 under AS 39.27.011(e) and (f), as amended by secs. 12 and 13 of this Act. 24 (b) The judicial branch may adopt compensation policies for its temporary and 25 permanent employees and magistrates, other than justices and judges, that provide for pay 26 increments under AS 39.27.011(h) and (i), enacted by sec. 14 of this Act. 27 (c) Justices of the supreme court and judges of the court of appeals and the superior 28 and district courts are entitled to receive salary adjustments provided for in secs. 11 - 13 of 29 this Act, in accordance with AS 22.05.140(d), AS 22.07.090(c), AS 22.10.190(d), and 30 AS 22.15.220(e). 31 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to

01 read: 02 SALARY INCREASES FOR CERTAIN EMPLOYEES OF THE UNIVERSITY OF 03 ALASKA. The employees of the University of Alaska who are not members of a collective 04 bargaining unit are entitled to receive salary increases in accordance with the compensation 05 policy of the Board of Regents of the University of Alaska. 06 * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 INITIAL APPOINTMENTS AND TERMS; FIRST MEETING. (a) The initial 09 members of the State Officers Compensation Commission shall be appointed within 90 days 10 after the effective date of this section. 11 (b) Notwithstanding AS 39.23.500(a) as enacted by sec. 10 of this Act, the terms of 12 the first members of the State Officers Compensation Commission appointed by the governor 13 under AS 39.23.500(a), as enacted by sec. 10 of this Act, are as follows: (1) two members 14 shall be appointed for a four-year term; (2) one member shall be appointed for a three-year 15 term; (3) one member shall be appointed for a two-year term; and (4) one member shall be 16 appointed for a one-year term. The governor shall specify the term of office of each member 17 appointed subject to this section. 18 (c) Notwithstanding AS 39.23.500(c), as enacted by sec. 10 of this Act, the first 19 meeting of the commission shall be called by the governor. 20 * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 PROSPECTIVE APPLICATION. (a) Notwithstanding any other provisions of law, 23 sec. 14 of this Act applies prospectively only. An employee may only earn pay increments 24 under AS 39.27.011(h) and (i), as enacted by sec. 14 of this Act, based on qualifying service 25 occurring on or after the effective date of sec. 14 of this Act. 26 (b) It is the intent of the legislature that (a) of this section is to expressly avoid the 27 result in the decision of the Alaska Supreme Court in APEA v. State, 525 P.2d 12 (Alaska 28 1974). 29 (c) Notwithstanding any other provision of this section, an employee who does not 30 elect to receive a pay increment under sec. 24 of this Act is entitled to receive a pay increment 31 computed at the rate of 3.75 percent of the employee's base salary instead of the first

01 increment to which the employee would otherwise be entitled under AS 39.27.011(h) and (i), 02 as enacted by sec. 14 of this Act, if, at the time the employee becomes eligible for the 03 increment under this subsection, the employee's current annual rating by the employee's 04 supervisors is designated as good or higher and the employee has served 05 (1) at least two years toward an increment under former AS 39.27.022; or 06 (2) at the last step of the employee's pay range for the two years immediately 07 preceding the effective date of this section. 08 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 TRANSITION. Notwithstanding sec. 17 of this Act, if, but for the repeal of 11 AS 39.27.022 by sec. 17 of this Act, an employee would have received a pay increment under 12 former AS 39.27.022 within two years after the effective date of sec. 17 of this Act, the 13 employee may elect to receive that increment instead of 14 (1) the first increment to which the employee would otherwise be entitled 15 under AS 39.27.011(h) and (i), as enacted by sec. 14 of this Act; and 16 (2) the increment to which the employee would otherwise be entitled under 17 sec. 23(c) of this Act. 18 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 RETROACTIVITY. Sections 11, 19(a), 20(a), and 21 of this Act are retroactive to 21 July 1, 2007. 22 "* Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 CONDITIONAL EFFECT. (a) Sections 2, 3, and 6 - 8 of this Act take effect only if 25 (1) the State Officers Compensation Commission, established under sec. 10 of 26 this Act, submits recommendations under AS 39.23.540(d), as enacted by sec. 10 of this Act; 27 (2) those recommendations are not disapproved of in the time and manner 28 described in AS 39.23.540(d), as enacted by sec. 10 of this Act; and 29 (3) all of those recommendations are fully funded by appropriations as 30 required by AS 39.23.540(g), added by sec. 10 of this Act. 31 (b) If the first recommendations submitted by the State Officers Compensation

01 Commission under (a) of this section are disapproved or are not fully funded, the commission 02 may continue to submit recommendations under (a) of this section until secs. 2, 3, and 6 - 8 of 03 this Act take effect. 04 (c) This section does not prevent a head of a principal executive department of the 05 state from obtaining a salary adjustment under sec. 19(a) of this Act. 06 * Sec. 27. Section 9 and 12, ch. 124, SLA 1986, are repealed. 07 * Sec. 28. If secs. 2, 3, and 6 - 8 of this Act take effect under sec. 26 of this Act, 08 (1) secs. 2 and 3 of this Act take effect on the effective date of the 09 appropriation described in sec. 26(a)(3) of this Act fully funding the recommendation for 10 legislators; and 11 (2) secs. 6 - 8 of this Act take effect on the effective date of the appropriation 12 described in sec. 26(a)(3) of this Act fully funding the recommendations for the governor, 13 lieutenant governor, and each principal executive department head. 14 * Sec. 29. Sections 10, 11, 16, 19(a), 20(a), 21, 22, and 25 - 27 of this Act take effect 15 immediately under AS 01.10.070(c). 16 * Sec. 30. Except as provided in secs. 28 and 29 of this Act, this Act takes effect July 1, 17 2008.