Legislature(1995 - 1996)
1996-05-05 Senate Journal
Full Journal pdf1996-05-05 Senate Journal Page 3981 SB 152 Senator Miller requested that the reconsideration on CS FOR SENATE BILL NO. 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 be taken up. CS FOR SENATE BILL NO. 152(FIN) was before the Senate on reconsideration. Senator Miller moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 1. Senator Miller called the Senate. The call was satisfied. There being no objections, the bill was returned to second reading. 1996-05-05 Senate Journal Page 3982 SB 152 Senator Miller offered Amendment No. 1 : Page 1, line 1, through page 5, line 6: Delete all material and insert: ""An Act relating to public employee compensation, benefits, and labor relations; relating to salaries, geographic and cost-of-living differentials for certain state employees, and to salary surveys and preparation of an annual pay schedule regarding certain state employees; relating to retirement and early retirement incentives for certain public employees; relating to severance and other pay and benefit programs for public employees; relating to and making conforming amendments concerning certain state aid calculations formerly based on geographic differentials for state employee salaries; relating to the exempt status of certain state employees; and providing for an effective date." BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: * Section 1. PURPOSE AND LEGISLATIVE INTENT. The purpose of sec. 7 of this Act is to affirm the interpretation and practice of the state with regard to the use of criteria similar to the criteria in the permanent fund dividend program for determining the establishment and maintenance of state residency for eligibility for the cost-of-living differential under AS23.40.210. It is also the intent of the legislature to provide express statutory authority to the state to establish or clarify those standards through adoption of regulations by the Department of Administration and to set the eligibility criteria for the differential outside the collective bargaining context. * Sec. 2. AS22.05.140(a) is amended to read: (a) Except as provided in (d) of this section, the monthly base salary of the chief justice is $9,203 ª$8,333ß and for each other justice, the monthly base salary is $9,159 ª$8,292ß. * Sec. 3. AS22.07.090(a) is amended to read: (a) Except as provided in (c) of this section, the monthly base salary of a judge of the court of appeals is $8,652 ª$7,833ß. The compensation of a judge may not be diminished during the term of office, unless by a general law applying to all salaried officers of the state. 1996-05-05 Senate Journal Page 3983 SB 152 * Sec. 4. AS22.10.190(a) is amended to read: (a) Except as provided in (d) of this section, the monthly base salary for each superior court judge is $8,469 ª$7,667ß. * Sec. 5. AS22.15.220(a) is amended to read: (a) Except as provided in (e) of this section, the monthly base salary for each district court judge is $7,179 ª$6,500ß. * Sec. 6. AS22.15.220(b) is amended to read: (b) Each magistrate shall receive annual compensation including geographic differential pay to be determined by the supreme court. Salary increases shall be determined on the basis of percentage of pay increase the legislature provides for state employees in the classified service. ªTHE BASE SALARY OF A MAGISTRATE SHALL BE INCREASED BY A PERCENTAGE EQUAL TO THREE AND ONE-HALF PER CENT TIMES THE NUMBER OF STEP INCREASES PROVIDED UNDER AS39.27.020 THAT A STATE EMPLOYEE WOULD RECEIVE WORKING IN THE SAME ELECTION DISTRICT.ß A magistrate's annual compensation may be payable, at the option of the magistrate, either monthly in 12 equal installments or semi-monthly in 24 equal installments. * Sec. 7. AS23.40.210 is amended by adding new subsections to read: (b) An employee is eligible for the cost-of-living differential under (a) of this section only if the individual is a state resident. The required presence of an employee at a work station where room and board are provided or reimbursed by the employer may not be considered to be physical presence in the state or physical absence from the state for purposes of determining eligibility for the cost-of- living differential. (c) The commissioner of administration may adopt regulations under AS44.62 (Administrative Procedure Act) to clarify and implement the criteria for establishing and maintaining eligibility for the cost-of-living differential. (d) An agreement entered into under AS23.40.070 - 23.40.260 must require compliance with the eligibility criteria for receiving the cost-of-living differential contained in this section and the regulations adopted by the commissioner under (c) of this section. 1996-05-05 Senate Journal Page 3984 SB 152 (e) In this section, state resident means an individual who is physically present in the state with the intent to remain permanently in the state under the requirements of AS01.10.055 or, if the individual is not physically present in the state, intends to return to the state and remain permanently in the state under the requirements of AS01.10.055, and is absent only temporarily for reasons allowed under AS43.23.095(8) or a successor statute. * Sec. 8. AS29.60.160(a) is amended to read: (a) Payments to a municipality or other eligible recipient under AS29.60.110 - 29.60.130 shall reflect area cost-of-living differentials. Payments shall be based on the sum of per capita, per mile, and per bed or facility grants due each municipality or other recipient multiplied by the appropriate area cost-of-living differential. The area cost-of-living differential for each recipient shall be determined ªANNUALLY BY ELECTION DISTRICTß under the provisions of AS29.60.164 and 29.60.165 ªAS39.27.030ß. Application of the area cost-of-living differential may not result in distribution of an amount less than the amount of the payment determined without reference to application of this section. * Sec. 9. AS29.60 is amended by adding new sections to read: Sec. 29.60.164. AREA COST-OF-LIVING DIFFERENTIALS. (a) The area cost-of-living differential multiplier shall be determined by multiplying the cost-of-living steps found in the table in this subsection by three and one-half percent. The following area cost- of-living steps apply: Election District Cost of Living 1 0 2 1 3 1 4 0 5 2 6a (excluding Valdez Duty Station) 4 6b (Valdez Duty Station) 5 7 1 8 0 9 2 10 2 11 2 1996-05-05 Senate Journal Page 3985 SB 152 12 7 13 7 14 8 15a (excluding Nenana Duty Station) 9 15b (Nenana Duty Station) 8 16a (south of Arctic Circle) 4 16b (north of Arctic Circle) 9 17 9 18 9 19 8 In other states minus 6. (b) For purposes of (a) of this section, election district means an election district designated in the governors proclamation of reapportionment and redistricting of December7, 1961. Sec. 29.60.165. COST-OF-LIVING SURVEY. Subject to an appropriation for this purpose, the director shall conduct a survey, at least every five years, to review the differentials established in AS29.60.164. This survey must address factors, as determined by the director, that are also relevant in review of state salary schedules, entitlement for beneficiaries of state programs, and payments for state service providers. The survey must reflect the costs of living in various election districts of the state, and Seattle, Washington, by using the cost of living in Anchorage as the base. * Sec. 10. AS29.60.290(b) is amended to read: (b) The area cost-of-living differential payable to each municipality under this section shall be determined ªANNUALLY BY ELECTION DISTRICTß under the provisions of AS29.60.164 and 29.60.165 ªAS 39.27.030ß. Except as provided in AS29.60.300, application of the area cost-of-living differential may not result in a payment that is less than the minimum payment determined under (a) of this section. ªFOR PURPOSES OF THIS SUBSECTION, THE ELECTION DISTRICTS USED ARE THOSE DESIGNATED BY THE PROCLAMATION OF REAPPORTIONMENT AND REDISTRICTING OF DECEMBER 7, 1961, AND RETAINED FOR THE HOUSE OF REPRESENTATIVES BY PROCLAMATION OF THE GOVERNOR SEPTEMBER3, 1965.ß 1996-05-05 Senate Journal Page 3986 SB 152 * Sec. 11. AS 39.20.250(a) is amended to read: (a) Terminal leave for unused personal leave shall be allowed upon separation from service. The payment equals the personal leave balance at the time of separation from service multiplied by the officer's or employee's annualized hourly rate of pay ªTHE COMPENSATION THAT THE OFFICER OR EMPLOYEE WOULD HAVE RECEIVED IF THE OFFICER OR EMPLOYEE HAD REMAINED IN THE SERVICE UNTIL THE EXPIRATION OF THE PERIOD OF UNUSED PERSONAL LEAVEß. A payment of terminal leave to an employee shall be made as a lump sum payment ªOR IN INSTALLMENTS OVER A PERIOD OF TIME, AS THE EMPLOYEE ELECTSß. * Sec. 12. AS39.25.110 is amended by adding a new subsection to read: (31) persons employed in the labor relations section in the Department of Administration except those persons employed in clerical or secretarial positions. * Sec. 13. AS39.27.011 is amended by adding new subsections to read: (e) Effective July1, 1996, the amounts set out in the salary schedule contained in (a) of this section are increased by the lesser of (1) 1.5 percent; or (2) one-half of the percentage increase in the United States Department of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for Anchorage, Alaska, from the second half of 1994 to the second half of 1995. (f) Effective July1, 1997, the amounts set out in the salary schedule contained in (a) of this section, as increased under (e) of this section, are increased by the lesser of (1) 1.5 percent; or (2) one-half of the percentage increase in the United States Department of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for Anchorage, Alaska, from the second half of 1995 to the second half of 1996. (g) Effective July1, 1998, the amounts set out in the salary schedule contained in (a) of this section, as increased under (e) and (f) of this section, are increased by the lesser of 1996-05-05 Senate Journal Page 3987 SB 152 (1) 1.5 percent; or (2) one-half of the percentage increase in the United States Department of Labor, Bureau of Labor Statistics, consumer price index for all urban consumers for Anchorage, Alaska, from the second half of 1996 to the second half of 1997. * Sec. 14. AS39.27.020 is repealed and reenacted to read: Sec. 39.27.020. PAY DIFFERENTIALS. (a) The following pay differentials are approved as an amendment to the basic salary schedule in AS39.27.011: Geographic Area Percentage Above or Below (Election Districts) Basic Salary Schedule 3, 4, and 7 - 28 0 1, 2, 5, 6 5 34 - 36 10 29 - 33 4 37 - 40 20 Washington State minus 10. (b) For purposes of determining the differential provided under (a) of this section, an appointing authority may increase the salary on which the geographic pay differential is computed by up to 20 percent of the employees base salary set out in AS39.27.011 if (1) the duty station for the position or job class is located in election districts 37, 38, 39, or 40; (2) the position or job class requires the employee to hold a license to practice law under AS08.08 or to practice medicine under AS08.64; and (3) the director certifies that recruitment or retention for the position or job class in that election district is so difficult that the increase is essential to recruitment or retention of employees in the position. (c) The director may establish pay differentials for positions in foreign countries or in states other than the State of Washington. If the director establishes a pay differential under this subsection, the director shall adjust the differential as necessary to maintain equitable relationships between salaries for positions outside the state and in the state. (d) For purposes of (a) of this section, "election district" means an election district designated in the governors proclamation of reapportionment and redistricting applicable to the 1994 general election. 1996-05-05 Senate Journal Page 3988 SB 152 * Sec. 15. AS39.27.030 is repealed and reenacted to read: Sec. 39.27.030. COST-OF-LIVING SURVEY. Subject to an appropriation for this purpose, the director shall conduct a survey, at least every five years, to review the pay differentials established in AS39.27.020. The survey may address factors, as determined by the director, that are also relevant in review of state salary schedules, entitlement for beneficiaries of state programs, and payments for state service providers. The survey must reflect the costs of living in various election districts of the state, and Seattle, Washington, by using the cost of living in Anchorage as a base. * Sec. 16. AS39.27.045 is amended to read: Sec. 39.27.045. DEFINITION. In AS39.27.020 - 39.27.030 [AS 39.27.030 - 39.27.040ß, "director" means the director of the division of personnel. * Sec. 17. AS39.35.160(a) is amended to read: (a) A ªBEGINNING JANUARY 1, 1987, EACHß peace officer or fire fighter who is first hired on or after the effective date of this bill section shall contribute to the system an amount equal to seven percent of the peace officer's or fire fighter's compensation. A peace officer or fire fighter first hired before the effective date of this bill section shall contribute to the system an amount equal to seven and one-half percent of the peace officer's or fire fighter's compensation. Each ªBEGINNING JANUARY1, 1987, EACHß other employee who is first hired on or after the effective date of this bill section shall contribute to the system an amount equal to six percent of the employee's compensation. Each other employee who is first hired before the effective date of this bill section shall contribute to the system an amount equal to six and three-quarters percent of the employee's compensation. The contributions shall be deducted by the employer at the end of each payroll period. The contributions shall be deducted from employee compensation before computation of applicable federal taxes, and the contributions shall be treated as employer contributions under 26 U.S.C. 414(h)(2). * Sec. 18. AS39.35.370(a) is amended to read: (a) Subject to AS39.35.450, a terminated employee is eligible for a normal retirement benefit (1) at age 60 with at least five years credited service; 1996-05-05 Senate Journal Page 3989 SB 152 (2) with at least 20 years of credited service as a peace officer or fire fighter for peace officers or fire fighters first hired before the effective date of this bill section; ªORß (3) at age 50 with at least 20 years of credited service as a peace officer or fire fighter, for peace officers and fire fighters first hired on or after the effective date of this bill section; (4) with at least 30 years of credited service for all other employees if the employee was first hired before the effective date of this bill section; or (5) at any time when the employee's age and amount of credited service equal or exceed 85 when added together for all other employees first hired on or after the effective date of this bill section. * Sec. 19. AS39.35.370(b) is amended to read: (b) Subject to former AS39.35.450, a terminated employee is eligible for an early retirement benefit at age 55 with at least five years credited service. An actuarial adjustment shall be made to retirement benefits paid under this section for an early retirement benefit. The monthly amount of a retirement benefit that would be due under (c) of this section shall be reduced by multiplying one-half of one percent times the number of months, to the nearest month, by which the retirement date of the employee falls short of the date that the employee reaches age 60. * Sec. 20. AS39.35.370(c) is amended to read: (c) The monthly amount of a retirement benefit for (1) a peace officer or fire fighter is two percent of the average monthly compensation times the years of credited service through 10 years, plus two and one-half percent of the average monthly compensation times the years of service over 10 years; (2) ª. FORß all other employees first hired before the effective date of this bill section, ªITß is (A) ª(1)ß two percent of the average monthly compensation times all years of service before July1, 1986, and for years of service through a total of 10 years; plus (B) ª(2)ß two and one-quarter percent of the average monthly compensation times all years of service after June30, 1986, over 10 years of total service through 20 years; plus 1996-05-05 Senate Journal Page 3990 SB 152 (C) ª(3)ß two and one-half percent of the average monthly compensation times all years of service after June30, 1986, over 20 years of total service; (3) all other employees first hired on or after the effective date of this bill section, is (A) one and one-half percent of the average monthly compensation times all years of service through a total of 10 years; plus (B) one and three-quarters percent of the average monthly compensation times all years of service over 10 years of total service through 20 years; plus (C) two percent of the average monthly compensation times all years of service over 20 years. * Sec. 21. AS39.35.475(a) is amended to read: (a) Once each year the administrator shall increase benefit payments to (1) eligible disabled members; (2) ª, TOß persons age 60 or older receiving benefits under this system in the preceding calendar year; (3) members who were first hired before the effective date of this bill section ª, AND TO PERSONSß who have received benefits under this system for at least five years and who are not otherwise eligible for an increase under this section; and (4) survivors of members described in (3) of this subsection when the member and the survivor have together received benefits under this system for at least five years. * Sec. 22. AS39.35.475(b) is amended to read: (b) The increase in benefit payments applies to total benefit payments except for the cost-of-living allowance under AS39.35.480. For members first hired on or after the effective date of this bill section, the amount of the increase is a percentage of the current benefit equal to the lesser of 50 percent of the increase in the cost of living in the preceding calendar year or six percent. For members first hired before the effective date of this bill section, the ªTHEß amount of the increase is a percentage of the current benefit equal to (1) the lesser of 75 percent of the increase in the cost of living in the preceding calendar year or nine percent, for recipients who on July 1 are at least 65 years old and for members receiving disability benefits; and 1996-05-05 Senate Journal Page 3991 SB 152 (2) the lesser of 50 percent of the increase in the cost of living in the preceding calendar year or six percent, for recipients who on July1 are at least 60 but less than 65 years old or for recipients who are less than 60 years old on July1 but who have received benefits from the system for at least five years. * Sec. 23. AS39.35.535(c) is amended to read: (c) A benefit recipient may elect major medical insurance coverage in accordance with regulations and under the following conditions: (1) a person who is younger than 60 years of age must pay an amount equal to the full monthly group premium for retiree major medical insurance coverage and the full monthly group premium for any dependent coverage elected; (2) a person who is at least 60 years of age but is younger than 65 years of age must pay an amount equal to one-half of the full monthly group premium for retiree major medical insurance coverage and any dependent coverage elected; (3) a disabled member or a person 65 years of age or older and who is receiving a benefit based on membership which began before the effective date of this bill section is not required to make premium payments for retiree major medical insurance coverage or any dependent coverage; (4) a disabled member or person 65 years of age or older and who is receiving a benefit based on membership that began on or after the effective date of this bill section is not required to make premium payments for retiree major medical insurance coverage; however, for any dependent coverage elected, the person is required to pay an amount equal to one-half of the monthly group premium. * Sec. 24. AS39.35.680(4) is amended to read: (4) "average monthly compensation" means the result obtained by dividing the compensation earned by an employee during a considered period by the number of months, including fractional months, for which compensation was earned; the considered period consists of (A) for employees first hired before the effective date of this bill section, the three consecutive payroll 1996-05-05 Senate Journal Page 3992 SB 152 years during the period of credited service that yields the highest average, and (B) for employees first hired on or after the effective date of this bill section, the five consecutive payroll years during the period of credited service that yield the highest average, or if the employee does not have the required number of ªTHREEß consecutive payroll years, the employee's period of credited service; an employee must have at least 115 days of credited service in the last payroll year in order for that year to be used as part of the [THREEß consecutive payroll years; * Sec. 25. AS44.31.020 is amended to read: Sec. 44.31.020. DUTIES OF DEPARTMENT. The Department of Labor shall (1) enforce the laws, and adopt regulations under them concerning employer-employee relationships, including the safety, hours of work, wages, and conditions of workers, including children; (2) accumulate, analyze, and report labor statistics; (3) operate systems of workers' compensation and unemployment insurance; and (4) gather data reflecting the cost of living in the various election districts of the state upon request of the director of personnel for determination of area cost-of-living differentials under AS29.60.164 and 29.60.165 or under AS39.27.030 ªAS 39.27.030 - 39.27.040ß. * Sec. 26. AS39.27.035, 39.27.040; AS39.35.450(a)(3), and 39.35.460 are repealed. * Sec. 27. FINDINGS AND PURPOSE ASTO SECS. 28 - 41. The State of Alaska and many local governments are facing the need to restructure their operations and their work forces in order to reduce expenditures and to balance budgets. Retirement and separation incentives are management tools that have been used extensively by the private sector, the federal government, and other state and local governments across the country. The purpose of secs. 28 - 41 of this Act is to make these management tools temporarily available to the state and to the municipalities of the state. Sections 28 - 41 of this Act will enable these entities to be more efficient and cost-effective by eliminating certain nonessential positions and producing a net reduction in personnel costs. 1996-05-05 Senate Journal Page 3993 SB 152 * Sec. 28. RETIREMENT INCENTIVE PROGRAM. (a) An employer may adopt a retirement incentive plan under secs. 28 - 41 of this Act, as appropriate, and designate categories of employees eligible to participate in that plan. An employer need not extend the incentive plan to all employees who would otherwise be eligible, but may choose to extend the plan only to employees (1) in specific budget or administrative components of the employer; (2) in specific job classifications; (3) in specific geographic locations; or (4) on the basis of any combination of factors under (1) - (3) of this subsection. (b) An employee is eligible to participate in a retirement incentive plan under secs. 28 - 41 of this Act only if the (1) employee is a vested member of the public employees retirement system or the teachers retirement system; (2) employee will be qualified to retire under AS14.25.110 or AS39.35.370 after receipt of the credit described in (f) of this section; (3) savings to the employer in personal services costs for the employees position will exceed the costs to the employer for that position within three years after the employee is appointed to retirement. (c) An employer shall file its proposed retirement incentive plan with the commissioner of administration. The commissioner shall approve the plan if the plan meets the requirements of secs. 28 - 41 of this Act, except that the commissioner may approve a state agencys retirement incentive plan only if the office of management and budget approves the calculation of savings under (b)(3) of this section. A proposed plan filed under this section must (1) identify job classifications of employees, and specific budget or administrative components, eligible to participate in the plan; (2) include a reimbursement agreement that (A) requires the employer, for each employee who retires under the plan, to reimburse the appropriate retirement system, within three years after the end of the fiscal year in which the employee is appointed to retirement, in an amount equal to 1996-05-05 Senate Journal Page 3994 SB 152 (i) the actuarial equivalent of the difference between the benefits the participant receives after the addition of the credit under (f) of this section and the amount the participant would have received without the credit, less the amount the participant has paid on the indebtedness determined under (d) or (e) of this section; and (ii) an appropriate share of the administrative costs of the program; and (B) provides that contributions from the employer under this section take priority over other obligations of the employer to the maximum extent permitted by law. (d) A member of the teachers retirement system who participates in an approved retirement incentive plan under secs. 28 - 41 of this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 25.95 percent of the members actual compensation for the school year in which the member terminates employment, or the calculated school year compensation for a member who works less than the entire school year. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. (e) A member of the public employees retirement system who participates in an approved retirement incentive plan under secs. 28 - 41 of this Act is indebted to that system for an amount calculated under this subsection. The indebtedness is 22 1/2 percent for a peace officer or fire fighter, and 20 1/4 percent for other members, of the members actual annual compensation for the year in which the member terminates employment, or the calculated annual compensation for a member who works fewer than 12 months. An outstanding indebtedness at the time a member is appointed to retirement under an approved retirement incentive plan requires an actuarial adjustment to the benefits payable to that member. (f) An employee who participates in an approved retirement incentive plan under secs. 28 - 41 of this Act receives a credit of three years. The three years must be applied in the following order until exhausted: 1996-05-05 Senate Journal Page 3995 SB 152 (1) to meet the age or service required for eligibility for normal retirement under AS14.25.110 or AS39.35.370, as appropriate; (2) to meet the age required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (3) to reduce the actuarial adjustment required for early retirement under AS14.25.110 or AS39.35.370, as appropriate; (4) as years of credited service for calculating retirement benefits. (g) In this section, (1) "department" means (A) a principal department of the executive branch of state government; an independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this paragraph; and (B) the Office of the Governor; (2) "employer" (A) for purposes of a retirement incentive plan under AS14.25, means the Board of Regents of the University of Alaska, the Department of Education, or the Regional Resource Center, but does not include a school district; and (B) for purposes of a retirement incentive plan under AS39.35, has the meaning given in AS39.35.680 and includes a department but does not include a school district. * Sec. 29. AUTHORIZATION FOR STATE EMPLOYEE RETIREMENT INCENTIVE. (a) A state agency may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees as part of a permanent reduction in the personal services costs in that section of the state agency. (b) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency who are eligible under sec. 28(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the state agencys 1996-05-05 Senate Journal Page 3996 SB 152 approved plan. The periods shall begin no earlier than June30, 1996, and end no later than June30, 1999. The periods shall be no less than 30 days and no more than 60 days in duration, and may not begin less than 30 days after their establishment. A state agency is not required to request an application period and may request more than one application period. (c) A proposed retirement incentive plan adopted under this section may not permit an employee who is the governor, the lieutenant governor, or a commissioner, deputy commissioner, or assistant commissioner of a principal department of the executive branch to participate in the plan. (d) A proposed retirement incentive plan adopted under this section may permit participation only by an employee who is eligible to participate under sec. 28(b) of this Act and who (1) has been continuously employed by the state for at least one year before the employee applies to participate in the state agencys approved plan; (2) is a permanent seasonal employee who has been continuously employed by the state in a permanent seasonal position during all of the time in the one year before the employees application to participate in which the position normally is filled; (3) has a job sharing agreement with a state agency in which two or more employees share a single position identified by a single position control number and in which the employee who applies to participate in the plan was continuously employed by the agency during the portion of the one year before the employees application in which the employee normally worked under the job sharing agreement; or (4) meets a combination of the requirements of this subsection. (e) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (b) of this section. A state agency, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. 1996-05-05 Senate Journal Page 3997 SB 152 * Sec. 30. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF THE UNIVERSITY OF ALASKA. (a) The Board of Regents of the University of Alaska may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for university employees. (b) Upon the request of the Board of Regents, the commissioner of administration shall establish one or more periods during which the employees of the university who are eligible under sec. 28(b) of this Act to participate in a retirement incentive plan may apply to the commissioner of administration to participate in the universitys approved plan. The periods shall begin no earlier than June30, 1996, and end no later than June30, 1999. The periods shall be no less than 30 days and no more than 60 days in duration and may not begin less than 30 days after their establishment. The Board of Regents is not required to request an application period and may request more than one application period. (c) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (b) of this section. The Board of Regents, in a plan adopted under this section, may set an earlier date by which an employee of the University of Alaska must be appointed to retirement in order to participate in the plan. (d) A participant in the optional university retirement program under AS14.40.661 - 14.40.799 who is vested in the public employees retirement system or the teachers retirement system may participate in a retirement incentive plan for that system if the participant meets the other qualifications of secs. 28 - 41 of this Act. If a provision of this subsection is inconsistent with another provision of law, the provision of this subsection governs. * Sec. 31. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR OTHER EMPLOYEES IN THE PUBLIC EMPLOYEES RETIREMENT SYSTEM. (a) The governing body of a political subdivision of the state or public organization that has elected to participate in the public employees retirement system under AS39.35.550 - 39.35.650 may adopt, and file with the commissioner 1996-05-05 Senate Journal Page 3998 SB 152 of administration for approval, a proposed retirement incentive plan for its employees. A plan adopted under this section must provide that the application period for participation in the retirement incentive plan is December31, 1996, through June30, 1997. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement on or before February1, 1998. The governing body of the political subdivision or public organization, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 32. AUTHORIZATION FOR RETIREMENT INCENTIVE FOR EMPLOYEES OF REGIONAL RESOURCE CENTERS IN THE TEACHERS RETIREMENT SYSTEM. (a) A regional resource center that has employees who are members of the teachers retirement system may adopt, and file with the commissioner of administration for approval, a proposed retirement incentive plan for its employees. A plan adopted under this section must provide that the application period for participation in the retirement incentive plan is June30, 1996, through December31, 1996. (b) The commissioner of administration may not accept the application of an employee to participate in an approved retirement incentive plan adopted under this section unless the employee will be appointed to retirement on or before August1, 1997. The regional resource center, in a plan adopted under this section, may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. * Sec. 33. POLITICAL SUBDIVISION OR PUBLIC ORGANIZATION EMPLOYMENT. For purposes of determining the years of service requirements for retirement under AS14.25.110 or AS39.35.370, as appropriate, a vested member who is a state employee and who applies to participate in a retirement incentive plan approved under secs. 28 - 41 of this Act may receive credit for employment with a political subdivision or public organization before the political subdivision or organization became an employer under the public employees retirement system. The member may not receive credit for those years under this section for purposes of determining benefits. If a provision of this section is inconsistent with any other provision of law, the provision of this section governs. 1996-05-05 Senate Journal Page 3999 SB 152 * Sec. 34. PROVISION AND AUTHORIZATION FOR ADMINISTRATIVE DIRECTOR OF COURT. (a) The chief justice of the state supreme court may adopt a retirement incentive plan for an administrative director of the Alaska Court System who is a member of the judicial retirement system under AS22.25.012 if participation in the plan will result in savings to the court system in personal services costs within three years after commencement of the plan. The administrative director may participate only if the administrative director is vested in the judicial retirement system and will be qualified to retire under AS22.25.010 after receipt of the retirement incentive. To participate, the administrative director shall apply to the commissioner of administration to participate in the approved court system plan. (b) The court system shall include in the retirement incentive plan a reimbursement agreement that requires the court system, for each administrative director of the Alaska Court System who is retired under the plan, to reimburse the judicial retirement system within three years after the end of the fiscal year in which the administrative director is appointed to retirement in an amount equal to (1) the actuarial equivalent of the difference between the benefits the administrative director receives after the addition of the credit under (e) of this section and the amount the participant would have received without the credit, less the total of the amount the participant has paid on the indebtedness determined under (d) of this section; and (2) an appropriate share of the administrative costs of the program. (c) A retirement incentive plan adopted under this section must provide that contributions from the court system under (b) of this section take priority over other obligations of the court system under (b) of this section to the maximum extent permitted by law. (d) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan is indebted to the system. The amount of indebtedness is equal to 21 percent of the directors actual annual compensation for the year in which the director terminates employment to participate in the program, or the calculated annual compensation for an administrative director who 1996-05-05 Senate Journal Page 4000 SB 152 works fewer than 12 months. An outstanding indebtedness at the time the administrative director is appointed to retirement under an approved retirement incentive plan will require an actuarial adjustment to the benefits payable to the director. (e) An administrative director of the Alaska Court System who participates in an approved retirement incentive plan receives a credit of three years that may only be used to meet the age requirements for normal or early retirement under AS22.25.010(d). (f) The chief justice of the Alaska Supreme Court may adopt and file with the commissioner of administration for approval, a proposed retirement incentive plan for the administrative director of the court system who is a member of the judicial retirement system. Upon the request of the chief justice, the commissioner of administration shall establish a period during which an administrative director eligible to participate in the retirement incentive plan of the court system may apply to the commissioner of administration to participate in the court systems approved plan. The period shall begin no earlier than July1, 1996, and end no later than June30, 1999. The period shall be no less than 30 days and no more than 60 days in duration and may not begin less than 30 days after establishment. The chief justice is not required to request an application period. (g) The commissioner of administration may not accept the application of an administrative director of the court system to participate in an approved retirement incentive plan adopted under this section unless the administrative director will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the commissioner under (f) of this section. The chief justice, in a plan adopted under this section, may set an earlier date by which an administrative director must be appointed to retirement in order to participate in the plan. * Sec. 35. RECOVERY OF EMPLOYER DELINQUENCIES. To recover a delinquency owed by an employer other than the state under an agreement entered into under sec. 28(c)(2) of this Act, the Department of Administration may (1) direct that the amount of the delinquency or a lesser amount be withheld from any money payable to the employer by a state department or agency and that the amount withheld be credited to the delinquency; and (2) bring action against the employer. 1996-05-05 Senate Journal Page 4001 SB 152 * Sec. 36. REEMPLOYMENT INDEBTEDNESS; PROHIBITION ON REEMPLOYMENT. (a) If an individual is reemployed as a member of the public employees retirement system under AS39.35, the teachers retirement system under AS14.25, the judicial retirement system under AS22.25, or the optional university retirement program under AS14.40.661 - 14.40.799 after appointment to retirement under secs. 28 - 41 of this Act, that individual forfeits the incentive credit received under secs. 28 - 41 of this Act and is indebted to the system under which the individual took retirement. The indebtedness is 150 percent of the amount the individual received as a result of participation in a retirement incentive plan under secs. 28 - 41 of this Act and to which the individual would not otherwise have been entitled, including the cost of health insurance. The amount that the individual has paid under sec. 28(d) or (e) of this Act will be applied as a credit toward the reemployment indebtedness. Interest on the reemployment indebtedness accrues from the date of reemployment until the date that the individual either is appointed to retirement and accepts an actuarial adjustment to the individuals future benefits or repays the indebtedness in full. The rate of interest is that established by regulation for the public employees retirement system by the public employees retirement board and for the teachers retirement system by the teachers retirement board. (b) An individual who was appointed to retirement under secs. 28 - 41 of this Act may not be employed by, or enter into a contract for personal services with, a state agency or the University of Alaska within the five years after the date of appointment to retirement, except that (1) the University of Alaska may enter into a personal services contract with the individual for teaching or research that does not entitle the individual to receive retirement, health, or leave benefits, except social security replacement if required by the Internal Revenue Code; and (2) the individual may accept employment with the legislature during a legislative session if the employment is on an hourly basis and does not entitle the individual to receive retirement, health, or leave benefits. 1996-05-05 Senate Journal Page 4002 SB 152 (c) Notwithstanding the prohibition in (b) of this section, a state agency or the University of Alaska may enter into a personal services contract with an individual who was appointed to retirement under secs. 28 - 41 of this Act if the Board of Regents, for the University of Alaska, or the commissioner of administration, for a state agency, determines that there is a compelling reason to do so because of the individuals specialized or extensive experience that relates to a particular program or project of the state agency or university. However, a state agency may not enter into a contract with an individual under this subsection if the individual was employed by the state agency at the time of the individuals appointment to retirement. * Sec. 37. SEPARATION INCENTIVE PROGRAM. (a) A state agency may, with the approval of the director of the office of management and budget, establish a separation incentive program for its employees. The program may be offered in combination with an approved retirement incentive plan adopted under sec. 29 of this Act, or may be offered separately from such a plan. A state agency need not extend an incentive program under this section to all employees who would otherwise be eligible to participate, but may choose to extend the program only to employees (1) in specific budget or administrative components of the state agency; (2) in specific job classifications; (3) on the basis of any combination of factors under (1) and (2) of this subsection. (b) A separation incentive program payment under this section shall be paid in a lump sum after the employees separation from state service, and shall be equal to the lesser of an amount equaling six months of the employees base salary, or $25,000. However, a state agency or the office of management and budget may set a lower separation incentive payment in the state agencys separation incentive program. (c) Upon the request of a state agency, the commissioner of administration shall establish one or more periods during which the employees of that state agency may apply to the commissioner of administration to participate in the state agencys approved separation incentive program. The periods shall begin no earlier than July 1, 1996, and end no later than June 30, 1999. The periods shall be no less than 30 days and no more than 60 days in duration, 1996-05-05 Senate Journal Page 4003 SB 152 and may not begin less than 30 days after their establishment. A state agency is not required to request an application period, and may request more than one application period. If the commissioner of administration has established one or more application periods for a state agency under sec. 29(b) of this Act, the application period or periods established under this subsection must coincide with the period or periods established under sec. 29(b) of this Act. (d) A separation incentive program established under this section must provide that a separation incentive payment to an employee may be made only if (1) the employee is a permanent full-time or permanent full-time seasonal employee with at least five years of service with the state; and (2) the savings to the state agency in personal services costs for the position occupied by that employee would exceed, in three years after the employee separates, the amount of separation incentive payment. (e) If an individual who received a separation incentive payment under this section subsequently is reemployed by a state agency or the University of Alaska within the three years after the date that the individual received the separation incentive payment, the individual is liable to the state in an amount equal to 150 percent of the amount of the separation incentive payment, plus interest at the rate prescribed by AS45.45.010, commencing on the date that the individual received the separation incentive payment. (f) If an employee is eligible to participate in an approved retirement incentive plan adopted under sec. 29 of this Act, (1) a separation incentive payment to that employee may not exceed the amount that the state agency would be obligated to pay to the appropriate retirement system, notwithstanding (b) of this section; and (2) the employee may participate in either the separation incentive program under this section or the retirement incentive plan adopted under sec. 29 of this Act, but not both. (g) In this section, "base salary" means the monthly salary paid to an employee under the applicable collective bargaining agreement, AS39.27.011, or another applicable pay schedule, and includes geographic differential; if an employee is paid on an hourly basis, the employees base salary is the employees hourly rate, including geographic differential, multiplied by the number of hours in the employees regular work week, multiplied by 4.35. 1996-05-05 Senate Journal Page 4004 SB 152 (h) Notwithstanding any provisions of the Public Employment Relations Act (AS23.40.040 - 23.40.260), no aspect of the separation incentive program set out in this section is subject to collective bargaining under that Act. * Sec. 38. OFFICE OF MANAGEMENT AND BUDGET. (a) When designating an employee category for participation in a retirement incentive plan or a separation incentive program under secs. 28 - 41 of this Act, the executive head of the relevant state agency shall describe in detail the expected effect of the plan or program on the agencys personal services cost and operation. This financial report must be approved by the director of the office of management and budget before the commissioner of administration may approve the proposed plan or program. The state agency shall report each year to the office of management and budget on the cost of each employees participation and the effect on the agencys personal services cost and operation. (b) The office of management and budget shall submit to the legislature annual reports on the retirement incentive and separation incentive programs under secs. 28 - 41 of this Act beginning January15, 1998, and continuing through January15, 2000, and shall submit a final report January15, 2001. Each report must provide the information necessary for the legislature to evaluate the effectiveness of the programs in achieving their objectives. The report must include information on the designated employee categories under the incentive programs, the cost to the state, the cost to the employee, the annual budgeted amount, by state agency, for the incentives, the number of positions deleted or left vacant, and the projected or actual net savings over the three-year period, and recommendations to the legislature for changes in appropriations that reflect the cost and cost savings resulting from the retirement and separation incentive programs. * Sec. 39. PROGRAM CHANGES. (a) An individual employee does not have a vested or contractual right to a benefit under secs. 28 - 41 of this Act until an agreement is executed with the administrator that specifically authorizes that employee to participate in the retirement incentive program under secs. 28 - 41 of this Act or until an agreement is executed with the commissioner of administration to participate in the separation incentive program under secs. 28 - 41 of this Act. The legislature reserves the right to 1996-05-05 Senate Journal Page 4005 SB 152 change any aspect of either incentive program as it relates to employees for whom participation agreements have not yet been executed with the administrator or with the commissioner of administration. (b) In this section, "administrator" means the administrator of the public employees retirement system of employees who are members of that system, and the administrator of the teachers retirement system for employees who are members of that system. * Sec. 40. REGULATIONS. The commissioner of administration may adopt regulations under AS44.62 (Administrative Procedure Act) to implement and interpret secs. 28 - 41 of this Act. * Sec. 41. DEFINITIONS. (a) Unless otherwise provided in secs. 28 - 41 of this Act, the definitions set out in AS14.25.220 apply to provisions in secs. 29 - 36 of this Act that relate to teachers retirement system and members of the teachers retirement system. (b) Unless otherwise provided in secs. 28 - 41 of this Act, the definitions set out in AS39.35.680 apply to provisions in secs. 29 - 37 of this Act that relate to the public employees retirement system and members of the public employees retirement system except that "employer" does not include a school district. (c) In secs. 28 - 41 of this Act, (1) "office of management and budget" means the office of management and budget in the Office of the Governor; (2) "public employees' retirement system" means the Public Employees Retirement System of Alaska (AS39.35); (3) "state agency" (A) means (i) the legislative branch of state government; (ii) the judicial branch of state government; (iii) a principal department of the executive branch of state government; and independent state entity that is attached to a principal department of the executive branch for administrative purposes but that is not a public organization as defined in AS39.35.680 is part of that department for purposes of this clause; and (iv) the Office of the Governor; 1996-05-05 Senate Journal Page 4006 SB 152 (B) does not include (i) the University of Alaska; (ii) a political subdivision of the state; or (iii) a public organization as defined in AS39.35.680; (4) "teachers retirement system" means the Teachers Retirement System of Alaska (AS14.25). * Sec. 42. CERTAIN EXEMPT EMPLOYEES OF THE EXECUTIVE BRANCH. Permanent and temporary employees of the executive branch who are in the exempt service under AS39.25, who are not members of a collective bargaining unit established under the Public Employment Relations Act (AS23.40), and who are not otherwise covered by AS39.27.011(a), are entitled to receive salary adjustments comparable to those received by the classified and partially exempt employees of the executive branch under AS39.27.011(e) - (g), as enacted by sec. 13 of this Act, and to receive geographic differentials comparable to those received by the classified and partially exempt employees of the executive branch under AS39.25.020, as enacted by sec. 14 of this Act. * Sec. 43. EMPLOYEES OF THE UNIVERSITY OF ALASKA. The employees of the University of Alaska who are not members of a collective bargaining unit are entitled to receive salary increases in accordance with the compensation policy of the Board of Regents of the University of Alaska. * Sec. 44. EMPLOYEES OF THE JUDICIAL BRANCH. For the fiscal years beginning July1, 1997, and July1, 1998, permanent and temporary employees of the judicial branch, other than justices and judges, who are not members of a collective bargaining agreement, are entitled to receive salary adjustments comparable to those received by the classified and partially exempt employees of the executive branch under AS39.27.011(f) - (g), as that statute is amended in sec. 13 of this Act, and geographic differential adjustments comparable to those received by the classified and partially exempt employees of the executive branch under AS39.27.020, as enacted by sec. 14 of this Act. 1996-05-05 Senate Journal Page 4007 SB 152 * Sec. 45. JUDICIAL BRANCH EMPLOYEES. For the fiscal year beginning July1, 1996, and ending June30, 1997, the temporary and permanent employees of the judicial branch, other than justices and judges, who are not members of a collective bargaining unit are entitled to receive a salary increase of 5.2 percent of the employees base salary as of June30, 1996. * Sec. 46. JUDGES AND JUSTICES. Notwithstanding AS22.05.140(d), AS22.07.090(c), AS22.10.190(d), and AS22.15.220(e), and sec. 13 of this Act, justices and judges in the judicial branch are not entitled to receive the increases provided by AS22.05.140(d), AS22.07.090(c), AS22.10.190(d), and AS22.15.220(e) for the fiscal year beginning July1, 1996, and ending June30, 1997. * Sec. 47. APPROVAL OF MONETARY TERMS OF AGREEMENTS. This section constitutes approval of the monetary terms of the collective bargaining agreements entered into between the state and the following collective bargaining organizations: (1) Alaska State Employees Association, for the General Government Unit; (2) Alaska Public Employees Association, for the Supervisory Unit; (3) Public Employees Local 71, for the Labor, Trades and Crafts Unit; (4) Inlandboatmen's Union of the Pacific, representing the unlicensed marine unit; (5) International Organization of Masters, Mates, and Pilots, Pacific Maritime Region, for the Masters, Mates, and Pilots Unit; (6) Public Safety Employees Association, representing state troopers and other commissioned law enforcement personnel; (7) the Classified Employees Association, representing University of Alaska employees; and (8) the Alaska Community Colleges' Federation of Teachers, representing faculty members of the University of Alaska; (9) the Alyeska Correspondence School Education Association representing teachers at the Alyeska Central School; (10) Alaska Vocational Technical Center Teacher's Association representing teachers at the Alyeska Central School; and 1996-05-05 Senate Journal Page 4008 SB 152 (11) International Brotherhood of Electrical Workers representing nonjudicial, nonsupervisory, classified employees of the Alaska Court System. * Sec. 48. LIMITATION ON THE REDUCTION OF EMPLOYEE SALARIES. (a) The salary that an employee is receiving on June30, 1996, may not be reduced by application of a provision of sec. 14 of this Act until June30, 1997, so long as the employee remains in the same geographic area, as set out in AS39.27.020, as amended by sec. 14 of this Act. (b) If an employee moves to another geographic area after July1, 1996, the pay differential in AS39.27.020(a), as amended by sec. 14 of this Act, applies to that employees salary on the effective date of the move. (c) Nothing in this Act prohibits a reduction in an employees salary as a result of a voluntary or involuntary demotion. * Sec. 49. Nothing in this Act modifies or terminates the terms of a collective bargaining agreement in effect on the effective date of this Act. * Sec. 50. Section 48 of this Act is repealed July1, 1997. * Sec. 51. Sections 28, 29, and 37 of this Act are repealed July1, 2000. * Sec. 52. Sections 30 - 34 of this Act are repealed December31, 1999. * Sec. 53. This Act takes effect July1, 1996." Senator Miller moved for the adoption of Amendment No. 1. Objections were heard. The question being: Shall Amendment No. 1 be adopted? The roll was taken with the following result: CSSB 152(FIN) Second Reading Amendment No. 1 YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff 1996-05-05 Senate Journal Page 4009 SB 152 and so, Amendment No. 1 was adopted. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Frank moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 2. Without objection, the bill was returned to second reading. Senator Frank offered Amendment No. 2 : Page 20, delete Section 37 and all conforming references in the bill. Renumber accordingly. Including title amendment if required. Senator Frank moved for the adoption of Amendment No. 2. Objections were heard. The question being: Shall Amendment No. 2 be adopted? The roll was taken with the following result: CSSB 152(FIN) am Second Reading Amendment No. 2 YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff and so, Amendment No. 2 was adopted. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Duncan moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 3. Without objection, the bill was returned to second reading. 1996-05-05 Senate Journal Page 4010 SB 152 Senator Duncan offered Amendment No. 3 : Delete Sections 17 through 23. Senator Duncan moved for the adoption of Amendment No. 3. Senator Miller objected. The question being: Shall Amendment No. 3 be adopted? The roll was taken with the following result: CSSB 152(FIN) am Second Reading Amendment No. 3 YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson and so, Amendment No. 3 failed. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Duncan moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 4. Without objection, the bill was returned to second reading. Senator Duncan offered Amendment No. 4 : Delete Section 22. Senator Duncan moved for the adoption of Amendment No. 4. Senator Miller objected. The question being: Shall Amendment No. 4 be adopted? The roll was taken with the following result: 1996-05-05 Senate Journal Page 4011 SB 152 CSSB 152(FIN) am Second Reading Amendment No. 4 YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Miller changed from "Yea" to "Nay". and so, Amendment No. 4 failed. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Duncan moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 5. Without objection, the bill was returned to second reading. Senator Duncan offered Amendment No. 5 : Delete Sections 17 through 21. Senator Duncan moved for the adoption of Amendment No. 5. Senator Miller objected. The question being: Shall Amendment No. 5 be adopted? The roll was taken with the following result: 1996-05-05 Senate Journal Page 4012 SB 152 CSSB 152(FIN) am Second Reading Amendment No. 5 YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson and so, Amendment No. 5 failed. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Duncan moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 6. Without objection, the bill was returned to second reading. Senator Duncan offered Amendment No. 6 : Delete section 23. Senator Duncan moved for the adoption of Amendment No. 6. Senator Miller objected. The question being: Shall Amendment No. 6 be adopted? The roll was taken with the following result: CSSB 152(FIN) am Second Reading Amendment No. 6 YEAS: 8 NAYS: 12 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson 1996-05-05 Senate Journal Page 4013 SB 152 and so, Amendment No. 6 failed. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Kelly moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 7. Without objection, the bill was returned to second reading. Senator Kelly offered Amendment No. 7 : Page 25 of the amendment, following line 16: Insert a new section to read: "* Sec. 47. LEGISLATIVE BRANCH EMPLOYEES. Employees of the legislative branch of state government, other than legislators, are entitled to receive salary adjustments comparable to those received by the classified and partially exempt employees of the executive branch under AS 39.27.011(e) - (g), as enacted by sec. 13 of this Act." Renumber the following amendment sections accordingly. Page 26, line 18: Delete "Section 48" Insert "Section 49" Senator Kelly moved for the adoption of Amendment No. 7. Without objection, Amendment No. 7 was adopted. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Amendment No. 8 was not offered. Senator Salo moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 9. Without objection, the bill was returned to second reading. Senator Salo offered Amendment No. 9 : 1996-05-05 Senate Journal Page 4014 SB 152 Page 26, line 18: Insert new section to read: Sec. 50. Nothing in this act shall apply to non- certificated school employees. Renumber remaining sections. Senator Salo moved for the adoption of Amendment No. 9. Objections were heard. The question being: Shall Amendment No. 9 be adopted? The roll was taken with the following result: CSSB 152(FIN) am Second Reading Amendment No. 9 YEAS: 10 NAYS: 10 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Green, Halford, Hoffman, Lincoln, Salo, Zharoff Nays: Frank, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson and so, Amendment No. 9 failed. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Sharp moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 10. Without objection, the bill was returned to second reading. Senator Sharp offered Amendment No. 10 : Page 6, line 21: Delete 10 Insert 20 Senator Sharp moved for the adoption of Amendment No. 10. Without objection, Amendment No. 10 was adopted. 1996-05-05 Senate Journal Page 4015 SB 152 CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Frank moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 11. Without objection, the bill was returned to second reading. Senators Frank, Miller, Sharp offered Amendment No. 11 : Page 7, line 9: Insert new section and renumber Sec. LIMITATION ON THE REDUCTION OF EMPLOYEE SALARIES. (a) So long as the employee remains in the same geographic area, as defined in AS 39.27.021(a) and (e), as enacted by sec. 4 of this Act, (1) the salary that an employee is receiving on June 30, 1996, may not be reduced by application of a provision of this Act until July 1, 1997; (2) for the fiscal year beginning July 1, 1997, the salary that an employee is receiving on June 30, 1997, may not be reduced by more than five percent as a result of the application of a provision of this Act. (b) If an employee moves to another geographic area after June 30, 1996, both the pay differential in AS 39.27.021(a), as amended by sec. 4 of this Act, and the limitation on applicable salary in AS 39.27.021(b), as amended by sec. 4 of this Act, apply to that employee's salary on the effective date of the move. Senator Frank moved and asked unanimous consent for the adoption of Amendment No. 11. Without objection, Amendment No. 11 was adopted. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. Senator Kelly moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 12. Without objection, the bill was returned to second reading. 1996-05-05 Senate Journal Page 4016 SB 152 Senator Kelly offered Amendment No. 12 : Page 23, following line 21: Insert a new bill section to read: "* Sec. 41. LEGISLATIVE EMPLOYEE RETIREMENT INCENTIVE PLAN. (a) The Legislative Council may adopt and file with the commissioner of administration a retirement incentive plan for employees of the legislative branch of state government. The plan must designate categories of employees eligible to participate in that plan, include a reimbursement agreement for the cost of participation by employees in the plan, require employees to meet the eligibility criteria, and pay the indebtedness amount as though the plan were subject to sec. 28 of this Act. The Legislative Council may exercise the powers of a state agency under sec. 28 of this Act, but a plan adopted by the council is not subject to review by the office of management and budget or approval of the commissioner of administration. (b) The application periods established by the Legislative Council under the plan during which the employees of a legislative agency who meet the requirements of sec. 28(b) of this Act are eligible to participate in the retirement incentive plan shall begin no earlier than June 30, 1996, and end no later than June 30, 1999. The application periods shall be no less than 30 days and not more than 60 days in duration, and may not begin less than 30 days after their establishment. The Legislative Council is not required to establish an application period and may establish more than one application period. (c) The commissioner of administration may not accept the application of an employee to participate in the Legislative Council retirement incentive plan under this section unless the employee will be appointed to retirement not later than the first day of the month that is six months after the last day of the application period established by the Legislative Council under this section. The Legislative Council may set an earlier date by which an employee must be appointed to retirement in order to participate in the plan. (d) The provisions of secs. 33, 35, 36, 39, and 41 of this Act apply to a plan adopted under this section." 1996-05-05 Senate Journal Page 4017 SB 152 Renumber the following bill sections accordingly. Conform the internal references to bill sections in secs. 27 - 41 of Amendment 1 accordingly. Page 24, line 5: Delete all material. Renumber the following sub-subparagraphs accordingly. Page 26, line 18: Delete "Section 48" Insert "Section 49" Senator Kelly moved for the adoption of Amendment No. 12. Without objection, Amendment No. 12 was adopted. CS FOR SENATE BILL NO. 152(FIN) am was automatically in third reading. The question to be reconsidered: Shall CS FOR SENATE BILL NO. 152(FIN) am "An Act relating to public employee compensation, benefits, and labor relations; relating to salaries, geographic and cost- of-living differentials for certain state employees, and to salary surveys and preparation of an annual pay schedule regarding certain state employees; relating to retirement and early retirement incentives for certain public employees; relating to severance and other pay and benefit programs for public employees; relating to and making conforming amendments concerning certain state aid calculations formerly based on geographic differentials for state employee salaries; relating to the exempt status of certain state employees; and providing for an effective date" pass the Senate? The roll was taken with the following result: CSSB 152(FIN) am Third Reading - On Reconsideration YEAS: 12 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Hoffman, Lincoln, Salo, Zharoff 1996-05-05 Senate Journal Page 4018 SB 152 and so, CS FOR SENATE BILL NO. 152(FIN) am passed the Senate on reconsideration. Senator Halford moved the effective date clause. The question being: Shall the effective date clause be adopted? The roll was taken with the following result: CSSB 152(FIN) am Effective Date Vote YEAS: 13 NAYS: 7 EXCUSED: 0 ABSENT: 0 Yeas: Frank, Green, Halford, Hoffman, Kelly, Leman, Miller, Pearce, R.Phillips, Rieger, Sharp, Taylor, Torgerson Nays: Adams, Donley, Duncan, Ellis, Lincoln, Salo, Zharoff and so, the effective date clause failed. Senator Halford moved and asked unanimous consent under rule 43(b) of the Uniform Rules engrossment be waived on CS FOR SENATE BILL NO. 152(FIN) am(efd fld). Without objection, it was so ordered.