00 HOUSE CS FOR CS FOR SENATE BILL NO. 180(FIN) 01 "An Act implementing pay differentials based on geographic areas for certain state 02 employees and for members of the Alaska State Defense Force; relating to cost-of-living 03 differentials for state aid to municipalities." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. AS 26.05.260(i) is amended to read: 06 (i) When active state service is authorized by the governor or by the adjutant 07 general as the governor's designee, members of the Alaska State Defense Force are 08 entitled to receive, for each day of active service under AS 26.05.070, pay and 09 allowances as provided in this subsection. Pay is equal to that provided under 10 AS 39.27.011 - 39.27.021 [AS 39.27.011 - 39.27.020] for equivalent assignments of 11 state officials or employees, including adjustments under AS 39.27.025, if applicable. 12 Allowances shall be paid to the same extent, in the same manner, and under the same 13 conditions as provided for state officials and employees under AS 39.20.110 - 14 39.20.170. However, pay or allowances are not authorized for training or community 01 service activities of members of the Alaska State Defense Force. 02  * Sec. 2. AS 29.60.160(a) is amended to read: 03 (a) Payments to a municipality or other eligible recipient under AS 29.60.110 04 - 29.60.130 shall reflect area cost-of-living differentials. Payments shall be based on 05 the sum of per capita, per mile, and per bed or facility grants due each municipality or 06 other recipient multiplied by the appropriate area cost-of-living differential. The area 07 cost-of-living differential for each recipient shall be determined annually by election 08 district under the provisions of AS 39.27.020 and 39.27.030 [AS 39.27.030]. 09 Application of the area cost-of-living differential may not result in distribution of an 10 amount less than the amount of the payment determined without reference to 11 application of this section. 12  * Sec. 3. AS 29.60.290(b) is amended to read: 13 (b) The area cost-of-living differential payable to each municipality under this 14 section shall be determined annually by election district under the provisions of 15 AS 39.27.020 and 39.27.030 [AS 39.27.030]. Except as provided in AS 29.60.300, 16 application of the area cost-of-living differential may not result in a payment that is 17 less than the minimum payment determined under (a) of this section. For purposes of 18 this subsection, the election districts used are those designated by the proclamation of 19 reapportionment and redistricting of December 7, 1961, and retained for the house of 20 representatives by proclamation of the governor September 3, 1965. 21  * Sec. 4. AS 39.27.020 is amended by adding new subsections to read: 22 (d) The pay step differentials in this section apply only to a person who has 23 been employed by the state before July 1, 2002, and remains continuously employed 24 by the state in the same geographic differential location. 25 (e) If, but for application of (d) of this section, an employee's salary would 26 have been increased under AS 39.27.021 on July 1, 2002, that employee's salary shall 27 be calculated under AS 39.27.021 so long as the employee remains in the same 28 geographic differential location. 29  * Sec. 5. AS 39.27 is amended by adding a new section to read: 30 Sec. 39.27.021. Pay differentials by election district and in other states  31 and countries. (a) Except as provided in AS 39.27.020(d), the following pay 01 differentials apply on or after July 1, 2002, and are approved as an amendment to the 02 basic salary schedules provided in AS 39.27.011: 03 Percentage Pay Geographic Areas 04 Differential (Election Districts) 05 0 1, 2, 3, 4, 7, 8, 9, and 10 06 4 16a (Fairbanks South of the Arctic Circle 07 except the duty stations of Tok and 08 Delta Junction) 09 5 5 10 9 11 11 11 6 12 16 16b (the duty stations of Tok and Delta 13 Junction) 14 20 15b (the duty station of Nenana) 15 27 12 and 13 16 30 15a (Yukon-Kuskokwim except the duty 17 station of Nenana) and 19 18 34 18 19 38 14 20 42 16c (Fort Yukon - North of the Arctic 21 Circle) and 17. 22 (b) The basic salary schedule set out in AS 39.27.011 is amended for positions 23 in other states to provide that those positions shall be compensated using a pay step 24 differential of minus six pay steps. 25 (c) The director of the division of personnel shall establish salary differentials 26 for positions in foreign countries. The differentials shall be adjusted annually, 27 effective July 1, to maintain equitable relationships between salaries for positions in 28 foreign countries and salaries for positions in Alaska. 29  * Sec. 6. AS 39.27.030 is amended to read: 30 Sec. 39.27.030. Cost-of-living survey. Subject to an appropriation for this 31 purpose, the director shall conduct a survey, at least every five years, to review the pay 01 differentials established in AS 39.27.020 and 39.27.021. The survey may address 02 factors, as determined by the director, that are also relevant in review of state salary 03 schedules, entitlement for beneficiaries of state programs, and payments for state 04 service providers. The survey must reflect the costs of living in various election 05 districts of the state, and Seattle, Washington, by using the cost of living in Anchorage 06 as a base. [IN THIS SECTION, "ELECTION DISTRICT" HAS THE MEANING 07 GIVEN IN AS 39.27.020(b).] 08  * Sec. 7. AS 39.27.045 is amended to read: 09 Sec. 39.27.045. Definitions [DEFINITION]. In AS 39.27.020 - 39.27.030, 10 (1) "director" means the director of the division of personnel;  11 (2) "election district" means an election district designated in the  12 governor's proclamation of reapportionment and redistricting of December 7,  13 1961. 14  * Sec. 8. AS 39.35.675(d) is amended to read: 15 (d) In this section, "cost-of-living differential" means an adjustment to salary 16 based on the cost of living in the geographic region where the employee works and 17 includes a pay step differential under AS 39.27.020 or a pay differential under  18 AS 39.27.021. 19  * Sec. 9. AS 44.31.020 is amended to read: 20 Sec. 44.31.020. Duties of department. The Department of Labor and 21 Workforce Development shall 22 (1) enforce the laws, and adopt regulations under them concerning 23 employer-employee relationships, including the safety, hours of work, wages, and 24 conditions of workers, including children; 25 (2) accumulate, analyze, and report labor statistics; 26 (3) operate systems of workers' compensation and unemployment 27 insurance; 28 (4) gather data reflecting the cost of living in the various election 29 districts of the state upon request of the director of personnel under AS 39.27.030; in 30 this paragraph, "election district" has the meaning given in AS 39.27.045 31 [AS 39.27.020(b)]; 01 (5) operate the federally funded employment and training programs 02 under 29 U.S.C. 1501 - 1792b (Job Training Partnership Act); and 03 (6) administer the state's program of adult basic education.