CSHB 545(FIN): "An Act relating to the cost-of-living differential for certain public employees residing in the state and the establishment of criteria for determining eligibility for the differential; and providing for an effective date."
00CS FOR HOUSE BILL NO. 545(FIN) 01 "An Act relating to the cost-of-living differential for certain public employees 02 residing in the state and the establishment of criteria for determining eligibility 03 for the differential; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. PURPOSE AND LEGISLATIVE INTENT. The purpose of this Act is to 06 affirm the interpretation and practice of the state with regard to the use of criteria similar to 07 the criteria in the permanent fund dividend program for determining the establishment and 08 maintenance of state residency for eligibility for the cost-of-living differential under 09 AS 23.40.210. It is also the intent of the legislature to provide express statutory authority to 10 the state to establish or clarify those standards through adoption of regulations by the 11 Department of Administration and to set the eligibility criteria for the differential and the 12 differential rate itself outside of the collective bargaining context. 13 * Sec. 2. AS 23.40.210 is amended by adding new subsections to read: 14 (b) An employee is eligible for the cost-of-living differential under (a) of this
01 section only if the individual is a state resident. The required presence of an employee 02 at a work station where room and board are provided or reimbursed by the employer 03 may not be considered to be physical presence in the state or physical absence from 04 the state for purposes of determining eligibility for the cost-of-living differential. 05 (c) The commissioner of administration may adopt regulations under AS 44.62 06 (Administrative Procedure Act) to clarify and implement the criteria for establishing 07 and maintaining eligibility for the cost-of-living differential. 08 (d) An agreement entered into under AS 23.40.070 - 23.40.260 must require 09 compliance with the eligibility criteria for receiving the cost-of-living differential 10 contained in this section and the regulations adopted by the commissioner under (c) 11 of this section. 12 (e) An employee eligible for the cost-of-living differential is entitled to receive 13 the following pay differential unless a different rate is established by the director of 14 personnel under (f) of this section: 15 Community of Residence Percent Increase Above 16 Out-of-State Rate 17 Anchorage 0.0 18 Juneau 0.0 19 Ketchikan/Prince of Wales 5.0 20 Petersburg/Wrangell/Sitka 5.0 21 Kodiak 5.0 22 (f) The director of personnel in the Department of Administration may adopt 23 regulations to adjust the pay differential set out in (e) of this section and to establish 24 a differential for employees residing in places not designated in (e) of this section. 25 The differential is not subject to collective bargaining under AS 23.40.070 - 23.40.260 26 (Public Employment Relations Act). The differential shall be established or adjusted 27 under this subsection to reflect changes in the cost of living between communities of 28 residence in this state and the cost of living in Bellingham, Washington, as a base of 29 100. The director of personnel shall conduct a cost-of-living survey every five years. 30 The cost-of-living differential is subject to legislative review on an annual basis. 31 (g) In this section, "state resident" means an individual who is physically
01 present in the state with the intent to remain permanently in the state under the 02 requirements of AS 01.10.055 or, if the individual is not physically present in the state, 03 intends to return to the state and remain permanently in the state under the 04 requirements of AS 01.10.055, and is absent only temporarily for any of the following 05 reasons: 06 (1) vocational, professional, or other specific education for which a 07 comparable program was not reasonably available in the state; 08 (2) secondary or postsecondary education; 09 (3) military service; 10 (4) medical treatment; 11 (5) other reasons that the commissioner of administration may establish 12 by regulation. 13 * Sec. 3. This Act takes effect immediately under AS 01.10.070(c).