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SB 180: "An Act implementing pay differentials based on geographic areas for certain state employees and for members of the Alaska State Defense Force; and providing for an effective date."

00 SENATE BILL NO. 180 01 "An Act implementing pay differentials based on geographic areas for certain state 02 employees and for members of the Alaska State Defense Force; and providing for an 03 effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 26.05.260(i) is amend 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 former AS 39.27.020 and AS 39.27.030. Application 09 of the area cost-of-living differential may not result in distribution of an amount less 10 than the amount of the payment determined without reference to application of this 11 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 former AS 39.27.020 and 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 is amended by adding a new section to read: 22 Sec. 39.27.021. Pay differentials by election district and in other states 23 and countries. (a) The following pay differentials are approved as an amendment to 24 the basic salary schedules provided in AS 39.27.011: 25 Percentage Pay Geographic Areas 26 Differential (Election Districts) 27 0 1, 2, 3, 4, 7, 8, 9, and 10 28 4 16a (Fairbanks South of the Arctic Circle 29 except the duty stations of Tok and Delta 30 Junction) 31 5 5

01 9 11 02 11 6 03 16 16b (the duty stations of Tok and Delta 04 Junction) 05 20 15b (the duty station of Nenana) 06 27 12 and 13 07 30 15a (Yukon-Kuskokwim except the duty 08 station of Nenana) and 19 09 34 18 10 38 14 11 42 16c (Fort Yukon - North of the Arctic 12 Circle) and 17. 13 (b) The basic salary schedule set out in AS 39.27.011 is amended for positions 14 in other states to provide that those positions shall be compensated using a pay step 15 differential of minus six pay steps. 16 (c) The director of the division of personnel shall establish salary differentials 17 for positions in foreign countries. The differentials shall be adjusted annually, 18 effective July 1, to maintain equitable relationships between salaries for positions in 19 foreign countries and salaries for positions in Alaska. 20 * Sec. 5. AS 39.27.030 is amended to read: 21 Sec. 39.27.030. Cost-of-living survey. Subject to an appropriation for this 22 purpose, the director shall conduct a survey, at least every five years, to review the pay 23 differentials established in AS 39.27.021 [AS 39.27.020]. The survey may address 24 factors, as determined by the director, that are also relevant in review of state salary 25 schedules, entitlement for beneficiaries of state programs, and payments for state 26 service providers. The survey must reflect the costs of living in various election 27 districts of the state, and Seattle, Washington, by using the cost of living in Anchorage 28 as a base. [IN THIS SECTION, "ELECTION DISTRICT" HAS THE MEANING 29 GIVEN IN AS 39.27.020(b).] 30 * Sec. 6. AS 39.27.045 is amended to read: 31 Sec. 39.27.045. Definitions [DEFINITION]. In AS 39.27.021 - 39.27.045

01 [AS 39.27.020 - 39.27.030], 02 (1) "director" means the director of the division of personnel; 03 (2) "election district" means an election district designated in the 04 governor's proclamation of reapportionment and redistricting of December 7, 05 1961. 06 * Sec. 7. AS 39.35.675(d) is amended to read: 07 (d) In this section, "cost-of-living differential" means an adjustment to salary 08 based on the cost of living in the geographic region where the employee works and 09 includes a pay step differential under former AS 39.27.020 or a pay differential 10 under AS 39.27.021. 11 * Sec. 8. AS 44.31.020 is amended to read: 12 Sec. 44.31.020. Duties of department. The Department of Labor and 13 Workforce Development shall 14 (1) enforce the laws, and adopt regulations under them concerning 15 employer-employee relationships, including the safety, hours of work, wages, and 16 conditions of workers, including children; 17 (2) accumulate, analyze, and report labor statistics; 18 (3) operate systems of workers' compensation and unemployment 19 insurance; 20 (4) gather data reflecting the cost of living in the various election 21 districts of the state upon request of the director of personnel under AS 39.27.030; in 22 this paragraph, "election district" has the meaning given in AS 39.27.045 23 [AS 39.27.020(b)]; 24 (5) operate the federally funded employment and training programs 25 under 29 U.S.C. 1501 - 1792b (Job Training Partnership Act); and 26 (6) administer the state's program of adult basic education. 27 * Sec. 9. AS 39.27.020 is repealed. 28 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 LIMITATION ON SALARY ADJUSTMENT FOR GEOGRAPHIC 31 DIFFERENTIALS. (a) The salary that an employee is receiving on June 30, 2001, may not

01 be reduced by application of a provision of sec. 4 of this Act so long as the employee remains 02 in the same geographic area as set out in AS 39.27.021, enacted by sec. 4 of this Act. If an 03 employee moves to another geographic area on or after July 1, 2001, the pay differential in 04 AS 39.27.021, enacted by sec. 4 of this Act, applies to the employee's salary on the effective 05 date of the move. 06 (b) If, on July 1, 2001, an employee's salary would have been reduced but for the 07 provisions of (a) of this section, that employee's salary may not be increased by application of 08 an adjustment to the salary schedules in AS 39.27.011 or a step increase until the application 09 of the adjustment or increase to the reduced salary the employee would otherwise have been 10 receiving as of July 1, 2001, results in an amount that meets or exceeds the salary that the 11 employee was receiving on June 30, 2001. 12 * Sec. 11. This Act takes effect July 1, 2001.