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HB 260: "An Act relating to a State Officers Compensation Commission and establishing how legislators, the governor, the lieutenant governor, and executive department heads shall be compensated; providing for an effective date by repealing the effective dates of certain sections of ch. 124, SLA 1986; and providing for an effective date."

00 HOUSE BILL NO. 260 01 "An Act relating to a State Officers Compensation Commission and establishing how 02 legislators, the governor, the lieutenant governor, and executive department heads shall 03 be compensated; providing for an effective date by repealing the effective dates of 04 certain sections of ch. 124, SLA 1986; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 24.10.100 is amended to read: 07 Sec. 24.10.100. Salary of legislators. Legislators shall receive a [THE] 08 monthly salary under AS 39.23 [FOR EACH MEMBER OF THE LEGISLATURE IS 09 $2,001]. The president of the senate and the speaker of the house of representatives 10 may receive additional compensation under AS 39.23 [ARE EACH ENTITLED 11 TO AN ADDITIONAL $500 A YEAR] during tenure of office. 12 * Sec. 2. AS 24.10.130 is amended to read: 13 Sec. 24.10.130. Moving expenses and per diem allowance. (a) A member of 14 the legislature may be [IS] entitled to reimbursement for the expenses of moving

01 between the member's place of residence and the capital city for the purpose of 02 attending a regular session of the legislature. 03 (b) Legislators and officers and employees of the legislative branch of 04 government may be [ARE] entitled to a per diem allowance. 05 (c) The Alaska Legislative Council shall adopt a policy in accordance with 06 AS 39.23.540(d) regarding reimbursement for moving expenses applicable to all 07 legislators and an applicable per diem allowance policy. The policy must set 08 conditions for the reimbursement for moving expenses and payment of per diem and 09 prescribe the amounts of reimbursement adapted to the special needs of the legislative 10 branch as determined by the council. 11 * Sec. 3. AS 39.20.010(a) is amended to read: 12 (a) The annual salary of the governor shall be in accordance with AS 39.23 13 [IS $125,000]. 14 * Sec. 4. AS 39.20.030(a) is amended to read: 15 (a) The annual salary of the lieutenant governor shall be in accordance with 16 AS 39.23 [IS $100,000]. 17 * Sec. 5. AS 39.20.080(a) is amended to read: 18 (a) The monthly salary of the head of each principal executive department of 19 the state shall be in accordance with AS 39.23 [IS NOT LESS THAN RANGE 28 20 NOR MORE THAN RANGE 30 OF THE SALARY SCHEDULE IN 21 AS 39.27.011(a) FOR JUNEAU, ALASKA]. 22 * Sec. 6. AS 39.23 is amended by adding new sections to read: 23 Sec. 39.23.500. Compensation commission established. (a) The State 24 Officers Compensation Commission is established. The commission is composed of 25 five members who are state residents appointed by the governor. One member shall be 26 appointed from a list of two or more candidates submitted by the president of the 27 senate. One member shall be appointed from a list of two or more candidates 28 submitted by the speaker of the house of representatives. Members serve for staggered 29 terms of four years. Except as provided in AS 39.05.080(4), a vacancy shall be filled 30 for the balance of the unexpired term. A commission member may serve not more than 31 two complete consecutive terms.

01 (b) The commission shall annually elect a member to chair its meetings. A 02 majority of the commission members constitutes a quorum to transact business. The 03 affirmative vote of three members is required to approve the commission's 04 recommendations on compensation. 05 (c) The commission shall meet at the call of the chair. Notice of a meeting 06 shall be mailed to each member at least 20 days before the date scheduled for the 07 meeting. 08 (d) The commission shall meet to discuss its findings and recommendations at 09 least twice before submitting its final report to the presiding officers of each house of 10 the legislature and the governor. 11 (e) For budgetary purposes, the commission shall be established in the 12 Department of Administration. 13 Sec. 39.23.510. Prohibitions against state or municipal service. (a) A 14 member of the commission may not be employed by the state, including the 15 University of Alaska, serve as a member of another state board, commission, or 16 authority, or hold elective state or municipal office during membership on the 17 commission. 18 (b) A member of the commission may not have served in an office or position 19 for which the commission shall submit a recommendation under AS 39.23.540. 20 Sec. 39.23.520. Compensation. Members of the commission serve without 21 compensation but are entitled to per diem and travel expenses authorized for members 22 of boards and commissions under AS 39.20.180. 23 Sec. 39.23.530. Staff. The director of personnel in the Department of 24 Administration shall serve as ex officio secretary to the commission and provide 25 research, technical, and administrative services. 26 Sec. 39.23.540. Duties of the commission. (a) The commission shall review 27 the salaries, benefits, and allowances of members of the legislature, the governor, the 28 lieutenant governor, and each principal executive department head and prepare a 29 report on its findings at least once every two years, but not more frequently than every 30 year. The commission shall notify the legislature that the report is available. 31 (b) The commission may request reports or studies from any state agency as to

01 the rate and form of compensation, benefits, and allowances for legislators, the 02 governor, the lieutenant governor, and each executive department head. A state agency 03 from which a report or a study is requested shall furnish it within a period of time 04 prescribed by the commission. 05 (c) The commission shall prepare its preliminary findings and 06 recommendations for the compensation of state officers by November 15. The 07 commission shall give reasonable public notice of its preliminary findings and 08 recommendations, solicit public comments, and give due regard to the public 09 comments, before submitting a final report under (d) of this section. 10 (d) The commission shall make available to the governor and presiding 11 officers of each house of the legislature a final report of its findings and 12 recommendations as to the rate and form of compensation, benefits, and allowances 13 for legislators, the governor, the lieutenant governor, and each principal executive 14 department head during the first 10 days of a legislative session. Subject to (g) of this 15 section and unless a bill disapproving all the recommendations for all officers listed in 16 this section is enacted into law within 60 days after the recommendations are 17 submitted to the governor and presiding officers of each house of the legislature, a 18 recommendation as to the compensation, benefits, and allowances for 19 (1) a legislator has the force of law and becomes effective on the first 20 day of the next regular legislative session; and 21 (2) the governor, the lieutenant governor, and each principal executive 22 department head has the force of law and becomes effective on the first day of the 23 fiscal year following the fiscal year in which the recommendation is submitted. 24 (e) The commission may prepare amendments to the report submitted under 25 (d) of this section and notify the legislature that the amendments are available. 26 (f) A commission member who does not concur in the proposed or final 27 recommendations may attach written objections to the commission's report of its 28 findings and recommendations. 29 (g) A recommendation under this section increasing the compensation, 30 benefits, and allowances of a public officer is not effective unless all recommended 31 increases included in the final report under (d) of this section are fully funded by

01 appropriations. 02 Sec. 39.23.545. Recommendations relating to compensation. (a) A 03 recommendation of the commission may not have the effect of reducing the 04 compensation or benefits of the governor and lieutenant governor who are in office or 05 an executive department head who is appointed on or before the effective date of the 06 commission's recommendation. 07 (b) The commission may recommend reduction in compensation or benefits 08 for individuals who become governor, lieutenant governor, or an executive department 09 head after the effective date of the commission's recommendation. 10 Sec. 39.23.550. Filing with lieutenant governor and certification. The 11 commission shall, on transmitting its final recommendations for the compensation of 12 legislators to the legislature, file the recommendations in the office of the lieutenant 13 governor. When the recommendations become effective, the commission shall certify 14 the copy of the recommendations on file in the office of the lieutenant governor. 15 Sec. 39.23.560. Policy of the legislature. It is the policy of the legislature that 16 the commission recommend an equitable rate and form of compensation, benefits, and 17 allowances for legislators. 18 Sec. 39.23.570. Administrative Procedure Act. AS 44.62 (Administrative 19 Procedure Act) does not apply to proceedings of the commission. 20 Sec. 39.23.600. Definition. In this chapter, "commission" means the State 21 Officers Compensation Commission. 22 * Sec. 7. AS 39.23.200, 39.23.210, 39.23.220, 39.23.230, 39.23.240, 39.23.250, 39.23.260, 23 39.23.270, and 39.23.400 are repealed. 24 * Sec. 8. Sections 5, 6, 7, and 8, ch. 124, SLA 1986, and that portion of sec. 12, ch. 124, 25 SLA 1986, that provides for the delayed repeal of AS 24.10.100 and AS 24.10.105 are 26 repealed. 27 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 INITIAL APPOINTMENTS AND TERMS; FIRST MEETING. (a) The initial 30 members of the State Officers Compensation Commission shall be appointed within 90 days 31 after the effective date of sec. 13 of this Act.

01 (b) Notwithstanding AS 39.23.500(a) as enacted by sec. 6 of this Act, the terms of the 02 first members of the State Officers Compensation Commission appointed by the governor 03 under AS 39.23.500(a), as enacted by sec. 6 of this Act, are as follows: (1) two members shall 04 be appointed for a four-year term; (2) one member shall be appointed for a three-year term; 05 (3) one member shall be appointed for a two-year term; and (4) one member shall be 06 appointed for a one-year term. The governor shall specify the term of office of each member 07 appointed subject to this section. 08 (c) Notwithstanding AS 39.23.500(c), as amended by sec. 6 of this Act, the first 09 meeting of the commission shall be called by the governor. 10 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 CONDITIONAL EFFECT. (a) Sections 1 - 5 of this Act take effect only if 13 (1) the State Officers Compensation Commission, established under sec. 6 of 14 this Act, submits recommendations under AS 39.23.540(d), as amended by sec. 6 of this Act; 15 (2) those recommendations are not disapproved of in the time and manner 16 described in AS 39.23.540(d), as amended by sec. 6 of this Act; and 17 (3) all of those recommendations are fully funded by appropriations as 18 required by AS 39.23.540(g), added by sec. 6 of this Act. 19 (b) If the first recommendations submitted by the State Officers Compensation 20 Commission under (a) of this section are disapproved or are not fully funded, the commission 21 may continue to submit recommendations under (a) of this section until secs. 1 - 5 of this Act 22 take effect. 23 * Sec. 11. Section 9 and 12, ch. 124, SLA 1986, are repealed. 24 * Sec. 12. If secs. 1 - 5 of this Act take effect under sec. 10 of this Act, secs. 1 and 2 of this 25 Act take effect on the effective date of the appropriation described in sec. 10(a)(3) of this Act 26 fully funding the recommendation for legislators; and secs. 3 - 5 of this Act take effect on the 27 effective date of the appropriation described in sec. 10(a)(3) of this act fully funding the 28 recommendations for the governor, lieutenant governor, and each principal executive 29 department head. 30 * Sec. 13. Except as provided in sec. 12 of this Act, this Act takes effect immediately under 31 AS 01.10.070(c).