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SB 98: "An Act relating to compensation for certain public officials, officers, and employees not covered by a collective bargaining agreement; establishing a two-week pay period for state employees who are not covered by a collective bargaining agreement; and providing for an effective date."

00 SENATE BILL NO. 98 01 "An Act relating to compensation for certain public officials, officers, and employees not 02 covered by a collective bargaining agreement; establishing a two-week pay period for 03 state employees who are not covered by a collective bargaining agreement; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 18.56.070 is amended to read: 07 Sec. 18.56.070. Personnel exempt from State Personnel Act. The executive 08 director and employees [PERSONNEL] of the corporation are in the exempt service 09 under [EXEMPT FROM] AS 39.25. 10 * Sec. 2. AS 24.10.060(c) is amended to read: 11 (c) Except as provided in (e) of this section for hourly employees, all 12 employees of the legislature are employed subject to 13 (1) classification and wage plans based on the merit principle and 14 adapted to the special needs of the legislature, including limitations on pay

01 increments comparable to the limitations on pay increments under 02 AS 39.27.011(h); and 03 (2) the general state laws regarding leave and retirement. 04 * Sec. 3. AS 31.25.065 is amended to read: 05 Sec. 31.25.065. Personnel exempt from State Personnel Act. The executive 06 director and employees [PERSONNEL] of the corporation are in the exempt service 07 under [EXEMPT FROM] AS 39.25. 08 * Sec. 4. AS 39.25.110(11) is amended to read: 09 (11) the executive director and employees [OFFICERS AND 10 EMPLOYEES] of the following boards, commissions, and authorities: 11 (A) [REPEALED] 12 (B) Alaska Permanent Fund Corporation; 13 (C) Alaska Industrial Development and Export Authority; 14 (D) Alaska Commercial Fisheries Entry Commission; 15 (E) Alaska Commission on Postsecondary Education; 16 (F) Alaska Aerospace Corporation; 17 (G) [REPEALED] 18 (H) Alaska Gasline Development Corporation and subsidiaries 19 of the Alaska Gasline Development Corporation; 20 (I) Alaska Housing Finance Corporation; 21 (J) Alaska Energy Authority; 22 * Sec. 5. AS 39.25.110(18) is amended to read: 23 (18) the executive director and employees of the Alaska Seafood 24 Marketing Institute; 25 * Sec. 6. AS 39.25.110(26) is amended to read: 26 (26) professionally credentialed investment officers [IN THE 27 DEPARTMENT OF REVENUE]; 28 * Sec. 7. AS 39.25.110 is amended by adding new subsections to read: 29 (b) The maximum salary of a position under (a) of this section except for 30 (a)(1) - (3) and (a)(40) is $300,000 a year. 31 (c) An agency or department with exempt positions in (a) of this section may

01 adopt a salary schedule for the positions. The salary schedule shall be submitted for 02 approval to the director of the office of management and budget. 03 (d) All salary increases and bonuses for exempt positions not subject to an 04 approved salary schedule under (c) of this section must be approved by the director of 05 the office of management and budget. 06 * Sec. 8. AS 39.25.120(c) is amended to read: 07 (c) The following positions in the state service constitute the partially exempt 08 service: 09 (1) deputy and assistant commissioners of the principal departments of 10 the executive branch, including the assistant adjutant general of the Department of 11 Military and Veterans' Affairs; 12 (2) the directors of the major divisions of the principal departments of 13 the executive branch and the regional directors of the Department of Transportation 14 and Public Facilities; 15 (3) attorney members of the staff of the Department of Law, of the 16 public defender agency, and of the office of public advocacy in the Department of 17 Administration; 18 (4) one private secretary for each head of a principal department in the 19 executive branch; 20 (5) employees of councils, boards, or commissions established by 21 statute in the Office of the Governor or the office of the lieutenant governor, unless a 22 different classification is provided by statute; 23 (6) not more than two special assistants to the commissioner of each of 24 the principal departments of the executive branch, but the number may be increased if 25 the partially exempt service is extended under AS 39.25.130 to include the additional 26 special assistants; 27 (7) the principal executive officer of the following boards, councils, or 28 commissions: 29 (A) Alaska Public Broadcasting Commission; 30 (B) Professional Teaching Practices Commission; 31 (C) Parole Board;

01 (D) Board of Nursing; 02 (E) Real Estate Commission; 03 (F) Alaska Royalty Oil and Gas Development Advisory Board; 04 (G) Alaska State Council on the Arts; 05 (H) Alaska Police Standards Council; 06 (I) Alaska Commission on Aging; 07 (J) Alaska Mental Health Board; 08 (K) State Medical Board; 09 (L) Governor's Council on Disabilities and Special Education; 10 (M) Advisory Board on Alcoholism and Drug Abuse; 11 (N) Statewide Suicide Prevention Council; 12 (O) State Board of Registration for Architects, Engineers, and 13 Land Surveyors; 14 (P) Alaska Health Care Commission; 15 (Q) Board of Pharmacy; 16 (8) Alaska Pioneers' Home and Alaska Veterans' Home managers; 17 (9) hearing examiners in the Department of Revenue; 18 (10) the comptroller in the division of treasury, Department of 19 Revenue; 20 (11) airport managers in the Department of Transportation and Public 21 Facilities employed at the Anchorage and Fairbanks International Airports; 22 (12) the deputy director of the division of insurance in the Department 23 of Commerce, Community, and Economic Development; 24 (13) the executive director and staff of the Alaska Public Offices 25 Commission; 26 (14) the rehabilitation administrator of the division of workers' 27 compensation; 28 (15) guards employed by the Department of Public Safety for 29 emergencies; 30 (16) marine pilot coordinator of the Board of Marine Pilots; 31 (17) guards employed by the Department of Corrections, other than in

01 state correctional facilities, to carry out the responsibility of the commissioner of 02 corrections under AS 33.30.071(b); 03 (18) hearing officers and administrative law judges of the Regulatory 04 Commission of Alaska; 05 (19) the compact administrator appointed under AS 33.36.130; 06 (20) the chief administrative law judge and administrative law judges 07 of the office of administrative hearings; 08 (21) the executive secretary of the Board of Public Accountancy; 09 (22) persons employed in a professional capacity to make a 10 temporary or special inquiry, study, or examination as authorized by the 11 governor; 12 (23) labor relations analysts in the Department of Administration. 13 * Sec. 9. AS 39.27.011(h) is amended to read: 14 (h) Pay increments, computed at the rate of 3.25 percent of the employee's 15 base salary, shall be provided to the employee after the [AN] employee has remained 16 in the final step of [WITHIN] a given range for three [TWO] years, and every three 17 [TWO] years thereafter, if, at the time the employee becomes eligible for the 18 increment, the employee's current annual rating by the employee's supervisors is 19 designated as "good" or higher. 20 * Sec. 10. AS 39.27.012 is amended to read: 21 Sec. 39.27.012. Temporary salary schedules; pay periods. The director of 22 the division of personnel may establish salary schedules providing lesser amounts than 23 those in the basic salary schedule in order to meet salary limit requirements for receipt 24 and expenditure of federal funds. [SALARY RATES ESTABLISHED UNDER 25 AUTHORITY OF THIS SECTION DO NOT AFFECT THE SALARIES OF 26 EMPLOYEES PROVIDED FOR BY A COLLECTIVE BARGAINING 27 AGREEMENT NEGOTIATED UNDER THE AUTHORITY OF AS 23.40.070 - 28 23.40.260 (PUBLIC EMPLOYMENT RELATIONS ACT).] 29 * Sec. 11. AS 39.27.012 is amended by adding new subsections to read: 30 (b) The director of the division of personnel may establish a two-week pay 31 period for biweekly payment of a monthly salary under AS 39.27.011. The director

01 shall determine the amount paid biweekly based on 02 (1) an annual salary equal to the monthly salary multiplied by 12; 03 (2) a rate of hourly pay equal to the annual salary divided by 1,975.50, 04 for an employee subject to a normal work week of 37.5 hours, or the annual salary 05 divided by 2,088, for an employee subject to a normal workweek of 40 hours; 06 (3) a rate of daily pay equal to the hourly pay multiplied by the number 07 of hours in the employee's normal work day; 08 (4) a rate of weekly pay equal to the hourly rate multiplied by 37.5, for 09 an employee subject to a normal work week of 37.5 hours, or the hourly rate 10 multiplied by 40, for an employee subject to a normal work week of 40 hours; and 11 (5) a rate of biweekly pay equal to the hourly rate multiplied by 75, for 12 an employee subject to a normal work week of 37.5 hours, or the hourly rate 13 multiplied by 80, for an employee subject to a normal work week of 40 hours. 14 (c) This section does not apply to an employee in a bargaining unit 15 represented by an organization under AS 23.40.070 - 23.40.260 (Public Employment 16 Relations Act). 17 * Sec. 12. AS 39.25.110(9) is repealed. 18 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 APPLICABILITY. This Act does not apply to individual employment contracts 21 entered into before July 1, 2019. 22 * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITION. Agencies and departments shall submit to the director of the office of 25 management and budget a list of all exempt positions and salaries of exempt positions that 26 exist on the effective date of this Act for review and approval. Agencies and departments may 27 also submit proposed salary schedules for exempt positions. 28 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 TRANSITION: REGULATIONS. The commissioner of administration or the 31 personnel board may adopt regulations necessary to implement the respective changes made

01 by this Act. The regulations are not subject to AS 44.62 (Administrative Procedure Act). 02 * Sec. 16. This Act takes effect July 1, 2019.