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HB 199: "An Act relating to compensation for certain state employees; and providing for an effective date."

00HOUSE BILL NO. 199 01 "An Act relating to compensation for certain state employees; and providing for 02 an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 14.20.470 is amended to read: 05  (a) The commission may 06  (1) study proposals developed by regular committees of any existing 07 professional organization whose members are within the teaching profession; 08  (2) subpoena witnesses, place them under oath, and maintain written 09 records; 10  (3) warn or reprimand members of the teaching profession, if in the 11 judgment of the commission such action is warranted; 12  (4) suspend or revoke the certificate of a member of the teaching 13 profession for one of the reasons set out in AS 14.20.030 except that in the case of an 14 administrator, the commissioner must concur;

01  (5) make any recommendation to the board or to school boards that will 02 promote an improvement in the teaching profession; 03  (6) request assistance through any of the investigative processes of any 04 existing professional teaching organizations when analyzing charges of breach of 05 ethical or professional teaching practices; 06  (7) appoint an executive secretary, delegate those ministerial functions 07 to the executive secretary as the commission may decide and set the executive 08 secretary's compensation with a starting salary not exceeding Step A, Range [RANGE] 09 26, [STEP B] of the pay plan for state employees in AS 39.27.011(a). 10 * Sec. 2. AS 22.05.140(d) is amended to read: 11  (d) Beginning January 1, 1991, and ending June 30, 1999, if the monthly 12 basic salary for Step E, Range 28, of the salary schedule set out in AS 39.27.011 13 increases, the monthly base salary of the chief justice and the other justices shall 14 increase by the same percentage. The increase takes effect when the salary increase 15 under AS 39.27.011 takes effect and may be retroactive if consistent with the change 16 in AS 39.27.011. The commissioner of administration shall, by regulation, establish 17 the percentage at which the salary is increased and the increased salary amount. 18 * Sec. 3. AS 22.07.090(c) is amended to read: 19  (c) Beginning January 1, 1991, and ending June 30, 1999, if the monthly 20 basic salary for Step E, Range 28, of the salary schedule set out in AS 39.27.011 21 increases, the monthly base salary of the judges of the court of appeals shall increase 22 by the same percentage. The increase takes effect when the salary increase under 23 AS 39.27.011 takes effect and may be retroactive if consistent with the change to 24 AS 39.27.011. The commissioner of administration shall, by regulation, establish the 25 percentage at which the salary is increased and the increased salary amount. 26 * Sec. 4. AS 22.10.190(d) is amended to read: 27  (d) Beginning January 1, 1991, and ending June 30, 1999, if the monthly 28 basic salary for Step E, Range 28, of the salary schedule set out in AS 39.27.011 29 increases, the monthly base salary of the judges of the superior court shall increase by 30 the same percentage. The increase takes effect when the salary increase under 31 AS 39.27.011 takes effect and may be retroactive if consistent with the change to

01 AS 39.27.011. The commissioner of administration shall, by regulation, establish the 02 percentage at which the salary is increased and the increased salary amount. 03 * Sec. 5. AS 22.15.220(e) is amended to read: 04  (e) Beginning January 1, 1991, and ending June 30, 1999, if the monthly 05 basic salary for Step E, Range 28, of the salary schedule set out in AS 39.27.011 06 increases, the monthly base salary of the judges of the district court shall increase by 07 the same percentage. The increase takes effect when the salary increase under 08 AS 39.27.011 takes effect and may be retroactive if consistent with the change to 09 AS 39.27.011. The commissioner of administration shall, by regulation, establish the 10 percentage at which the salary is increased and the increased salary amount. 11 * Sec. 6. AS 23.40.075 is amended by adding a new subsection to read: 12  (b) An agreement concerning the wages of state employees may not establish 13 a geographic differential or other cost-of-living allowance that is greater than the 14 differential set out in AS 39.27.021. 15 * Sec. 7. AS 23.40.215 is amended by adding a new subsection to read: 16  (d) If an agreement that applies to state employees contains a term that 17 authorizes a longevity pay increment or service bonus based on length of state 18 employment and the increment or bonus is based on service that is greater than seven 19 years, the commissioner of administration shall specifically report the term authorizing 20 the longevity pay increment or service bonus to the legislature, and the term may not 21 take effect unless it is approved by the legislature under (a) of this section. 22 * Sec. 8. AS 29.60.160(a) is amended to read: 23  (a) Payments to a municipality or other eligible recipient under AS 29.60.110 24 - 29.60.130 shall reflect area cost-of-living differentials. Payments shall be based on 25 the sum of per capita, per mile, and per bed or facility grants due each municipality 26 or other recipient multiplied by the appropriate area cost-of-living differential. The 27 area cost-of-living differential for each recipient shall be determined annually by 28 election district under the provisions of former AS 39.27.020 and AS 39.27.030. 29 Application of the area cost-of-living differential may not result in distribution of an 30 amount less than the amount of the payment determined without reference to 31 application of this section.

01 * Sec. 9. AS 29.60.290(b) is amended to read: 02  (b) The area cost-of-living differential payable to each municipality under this 03 section shall be determined annually by election district under the provisions of former 04 AS 39.27.020 and AS 39.27.030. Except as provided in AS 29.60.300, application of 05 the area cost-of-living differential may not result in a payment that is less than the 06 minimum payment determined under (a) of this section. For purposes of this 07 subsection, the election districts used are those designated by the proclamation of 08 reapportionment and redistricting of December 7, 1961, and retained for the house of 09 representatives by proclamation of the governor September 3, 1965. 10 * Sec. 10. AS 39.20.080(a) is amended to read: 11  (a) The monthly salary of the head of each principal executive department of 12 the state is equal to Step C [STEP E], Range 28 , of the salary schedule in 13 AS 39.27.011(a) for Juneau, Alaska. 14 * Sec. 11. AS 39.27.011(a) is repealed and reenacted to read: 15  (a) The following monthly basic salary schedule is approved as the pay plan 16 for classified and partially exempt employees in the executive branch of the state 17 government whose salaries are not determined under a valid collective bargaining 18 agreement adopted under the authority of AS 23.40.070 - 23.40.260 (Public 19 Employment Relations Act) and for employees of the legislature under AS 24.10 and 20 AS 24.20: 21 Range No. Step Step Step 22 A C F 23 5 1,557 1,647 1,789 24 6 1,647 1,743 1,895 25 7 1,743 1,841 2,014 26 8 1,841 1,954 2,137 27 9 1,954 2,071 2,269 28 10 2,071 2,206 2,409 29 11 2,206 2,338 2,568 30 12 2,338 2,491 2,745 31 13 2,491 2,656 2,946

01 14 2,656 2,842 3,165 02 15 2,842 3,049 3,392 03 16 3,049 3,267 3,640 04 17 3,267 3,515 3,895 05 18 3,515 3,765 4,174 06 19 3,765 4,022 4,463 07 20 4,022 4,302 4,767 08 21 4,302 4,599 5,095 09 22 4,599 4,918 5,457 10 23 4,918 5,263 5,850 11 24 5,263 5,639 6,253 12 25 5,639 6,048 6,727 13 26 5,850 6,253 6,969 14 27 6,048 6,484 7,234 15 28 6,253 6,727 7,486 16 29 6,484 6,969 7,750 17 30 6,727 7,234 8,023 18 * Sec. 12. AS 39.27.011 is amended by adding a new subsection to read: 19  (h) An employee who is compensated under the salary schedule set out in (a) 20 of this section qualifies for the next step in the salary schedule only by completing 21 three years of continuous service that is evaluated as being of progressively greater 22 value to the state. 23 * Sec. 13. AS 39.27 is amended by adding a new section to read: 24  Sec. 39.27.021. Pay differentials by election district and in other states. 25 (a) The following pay differentials are approved as an amendment to the basic salary 26 schedules provided in AS 39.27.011: 27  Percentage Pay Geographic Areas 28  Differential (Election Districts) 29  0 1, 2, 3, 4, 7, 8, 9, and 10 30 4 16a (Fairbanks South of the Arctic Circle except 31 the duty stations of Tok and Delta Junction)

01  5 5 02  9 11 03  11 6 04 16 16b (the duty stations of Tok and Delta Junction) 05  20 15b (the duty station of Nenana) 06 27 12 and 13 07 30 15a (Yukon-Kuskokwim except the duty station of Nenana) and 19 08  34 18 09 38 14 10 42 16c (Fort-Yukon - North of the Arctic Circle) and 17 11  -13 Seattle-Tacoma 12  (b) For purposes of (a) of this section, "election district" means an election 13 district designated in the governor's proclamation of reapportionment and redistricting 14 of December 7, 1961. 15  (c) The director of the division of personnel shall establish salary differentials 16 for positions in other states or foreign countries. The differentials shall be adjusted 17 annually, effective July 1, to maintain equitable relationships between salaries for 18 positions in other states or foreign countries and salaries for positions in Alaska. 19 * Sec. 14. AS 39.27.030 is amended to read: 20  Sec. 39.27.030. Cost-of-living survey. Subject to an appropriation for this 21 purpose, the director shall conduct a survey, at least every five years, to review the pay 22 differentials established in AS 39.27.021 [AS 39.27.020]. The survey may address 23 factors, as determined by the director, that are also relevant in review of state salary 24 schedules, entitlement for beneficiaries of state programs, and payments for state 25 service providers. The survey must reflect the costs of living in various election 26 districts of the state, and Seattle, Washington, by using the cost of living in Anchorage 27 as a base. 28 * Sec. 15. AS 39.27.045 is amended to read: 29  Sec. 39.27.045. Definition. In AS 39.27.021 - 39.27.045 [AS 39.27.020 - 30 39.27.030], "director" means the director of the division of personnel. 31 * Sec. 16. AS 39.30 is amended by adding a new section to read:

01  Sec. 39.30.165. Limitation on participation by state employees. A state 02 employee may participate in the supplemental benefits program under AS 39.50.150 - 03 39.50.180 only if 04  (1) the employee was in pay status, on approved leave without pay, or 05 on seasonal leave without pay on June 30, 1999; 06  (2) the state made a contribution to the system under AS 39.30.150 - 07 39.30.180 for the pay period that included June 30, 1999, for that employee or, in the 08 case of an employee on approved leave without pay or on seasonal leave without pay, 09 the state made a contribution for the last pay period that the employee worked before 10 beginning the leave; and 11  (3) the employee remains continuously employed by the state after 12 June 30, 1999; for purposes of this paragraph, an employee is continuously employed 13 if the employee is in pay status, on approved leave of absence, or on seasonal leave 14 without pay. 15 * Sec. 17. AS 39.35.675(d) is amended to read: 16  (d) In this section , "cost-of-living differential" means an adjustment to salary 17 based on the cost of living in the geographic region where the employee works and 18 includes a pay step differential under former AS 39.27.020 or a pay differential 19 under AS 39.27.021 . 20 * Sec. 18. AS 39.27.020 and 39.27.022 are repealed. 21 * Sec. 19. LIMITATION ON SALARY REDUCTION FOR GEOGRAPHIC 22 DIFFERENTIALS. (a) The salary that an employee is receiving on June 30, 1999, may not 23 be reduced by application of a provision of sec. 13 of this Act until July 1, 2001, so long as 24 the employee remains in the same geographic area as set out in AS 39.27.021, enacted by 25 sec. 13 of this Act. If an employee moves to another geographic area on or after July 1, 1999, 26 the pay differential in AS 39.27.021, enacted by sec. 13 of this Act, applies to the employee's 27 salary on the effective date of the move. 28 (b) If, on July 1, 1999, an employee's salary would have been reduced but for the 29 provisions of (a) of this section, that employee's salary may not be increased by application 30 of an adjustment to the salary schedules in AS 39.27.011 or a step increase until the 31 application of the adjustment or increase to the reduced salary the employee would otherwise

01 have been receiving as of July 1, 1999, results in an amount that meets or exceeds the salary 02 that the employee was receiving on June 30, 1999. 03 * Sec. 20. SALARY SCHEDULE TRANSITION. (a) An employee who, on June 30, 04 1999, is compensated in Step A or B of the salary schedule set out in AS 39.27.011(a) shall 05 remain in that step until the employee qualifies for Step C by completing three years of 06 continuous service that is evaluated as being of progressively greater value to the state from 07 the date of the employee's appointment to Step A. If the employee was directly appointed 08 to Step B, the three years shall be counted from the date of the employee's initial 09 appointment. 10 (b) An employee who, on June 30, 1999, is compensated in Step C, D, or E of the 11 salary schedule set out in AS 39.27.011(a) shall remain in that step until the employee 12 qualifies for Step F by completing three years of continuous service that is evaluated as being 13 of progressively greater value to the state from the date that the employee was appointed to 14 Step C. If the employee was appointed directly to Step D or E, the years of continuous 15 service shall be counted from the date of the employee's initial appointment. 16 (c) Notwithstanding the repeal of AS 39.27.022 made by sec. 18 of this Act, an 17 employee who, on June 30, 1999, was compensated under the longevity steps based on pay 18 increments for longevity in service under AS 39.27.022 may continue to receive longevity pay 19 increments until July 1, 2001, if the employee would have been entitled to them but for the 20 repeal of AS 39.27.022. Beginning July 1, 2001, an employee may not be compensated at 21 greater than Step F of the salary schedule under AS 39.27.011(a), as amended by sec. 11 of 22 this Act. 23 * Sec. 21. COMMISSIONERS' SALARIES. Notwithstanding the amendments to 24 AS 39.20.080(a), made by sec. 10 of this Act, and to AS 39.27.011(a) made by sec. 11 of this 25 Act, the head of a principal executive department of the state who was serving in that capacity 26 on June 30, 1999, is entitled to receive a monthly salary in the amount of $7,234 until the date 27 on which the next governor is sworn into office. 28 * Sec. 22. This Act takes effect July 1, 1999.