2019-03-25                     House Journal                      Page 0380
HB 112                                                                                                                        
HOUSE BILL NO. 112 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    "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."                                                                            
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Administration/Various Depts.                                                                              
                                                                                                                                
The Governor's transmittal letter dated March 22 follows:                                                                       
                                                                                                                                
"Dear Speaker Edgmon:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to pay for exempt                                                               
employees.                                                                                                                      
                                                                                                                                
The bill would amend the exempt service statutes for the Alaska                                                                 
Housing Finance Corporation, the Alaska Gasline Development                                                                     
Corporation, and the Alaska Seafood Marketing Institute to clarify that                                                         
the executive director and employees of those entities are in the                                                               
exempt service. The bill also would set a maximum salary for most                                                               
exempt employees at $300,000.00, provide that an agency or                                                                      
department with exempt positions may adopt a salary schedule for                                                                
those positions to submit to the Office of Management and Budget                                                                
(OMB) Director for approval, and require that any salary increases and                                                          
bonuses for exempt positions not subject to an approved salary                                                                  
schedule be approved by the OMB Director.                                                                                       
                                                                                                                                

2019-03-25                     House Journal                      Page 0381
The bill proposes to amend the statute providing for pay increments                                                             
for classified and partially-exempt employees who are not members of                                                            
a collective bargaining unit so that employees at the final step of a pay                                                       
range would be entitled to pay increments based on job performance                                                              
every three years instead of every two years. The bill would permit the                                                         
Director of Personnel to establish a bi-weekly pay procedure. The bill                                                          
would not apply to persons who are members of a collective                                                                      
bargaining unit established under AS 23.40.070 - 23.40.260 (Public                                                              
Employment Relations Act).                                                                                                      
                                                                                                                                
The bill would reduce overall personnel costs and promote a                                                                     
sustainable budget by reducing the number of positions that may                                                                 
receive salaries beyond that authorized by the statutory pay schedule                                                           
for exempt and partially-exempt service employees, prohibit bonuses                                                             
for executive exempt positions without the approval of the OMB                                                                  
Director, and establish a more affordable pay increment policy.                                                                 
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Michael J. Dunleavy                                                                                                             
Governor"