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HB 195: "An Act relating to the compensation, allowances, geographic differentials in pay, and leave of certain public officials, officers, and employees not covered by collective bargaining agreements; relating to certain petroleum engineers and petroleum geologists employed by the Department of Natural Resources; relating to increased pay for certain partially exempt employees of the state in specific circumstances; making conforming amendments; and providing for an effective date."

00 HOUSE BILL NO. 195 01 "An Act relating to the compensation, allowances, geographic differentials in pay, and 02 leave of certain public officials, officers, and employees not covered by collective 03 bargaining agreements; relating to certain petroleum engineers and petroleum 04 geologists employed by the Department of Natural Resources; relating to increased pay 05 for certain partially exempt employees of the state in specific circumstances; making 06 conforming amendments; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 39.20.200(a) is amended to read: 09 (a) Officers and employees of the state employed before July 1, 2013, are 10 entitled to personal leave with pay that accrues as follows: 11 (1) two days for each full monthly pay period in the case of officers 12 and employees with less than two years of service; 13 (2) two and one-quarter days for each full monthly pay period in the

01 case of officers and employees with two but less than five years of service; 02 (3) two and one-half days for each full monthly pay period in the case 03 of officers and employees with five but less than 10 years of service; 04 (4) three days for each full monthly pay period in the case of officers 05 and employees with 10 years or more of service. 06 * Sec. 2. AS 39.20.200 is amended by adding a new subsection to read: 07 (c) Officers and employees of the state employed on or after July 1, 2013, are 08 entitled to personal leave with pay that accrues as follows: 09 (1) one and three-quarters days for each full monthly pay period in the 10 case of officers and employees with less than two years of service; 11 (2) two days for each full monthly pay period in the case of officers 12 and employees with two but less than five years of service; 13 (3) two and one-quarter days for each full monthly pay period in the 14 case of officers and employees with five but less than 10 years of service; 15 (4) two and one-half days for each full monthly pay period in the case 16 of officers and employees with 10 but less than 15 years of service; 17 (5) three days for each full monthly pay period in the case of officers 18 and employees with 15 years or more of service. 19 * Sec. 3. AS 39.20.225(c) is amended to read: 20 (c) Except as otherwise provided in this section, each [EACH] officer or 21 [AND] employee shall, during each 12-month period, take at least 10 [FIVE] days of 22 personal leave. If the officer or employee does not take at least 10 [FIVE] days of 23 personal leave during a 12-month period, the difference between 10 [FIVE] days and 24 the amount of personal leave taken shall be canceled without pay unless the 25 department or agency head certifies in writing that the officer or employee was denied 26 the opportunity to take 10 [FIVE] days of personal leave during the 12-month period. 27 * Sec. 4. AS 39.20.225 is amended by adding new subsections to read: 28 (d) Except as otherwise provided in this section, each officer or employee may 29 accumulate a maximum of 1,000 hours of personal leave at the conclusion of each 12- 30 month period for use in the succeeding 12-month period. Notwithstanding the 31 requirements of this subsection, the personnel board may adopt regulations to allow

01 for an exemption from this subsection if the department or agency head certifies in 02 writing that the officer or employee was denied the opportunity to use personal leave 03 and required to accumulate more than the 1,000-hour maximum of personal leave in a 04 12-month period. 05 (e) Each officer or employee who, as of December 16, 2013, has a personal 06 leave balance that exceeds 400 hours 07 (1) is exempt from the 1,000-hour maximum limit set out in (d) of this 08 section until the officer's or employee's personal leave balance is less than or equal to 09 400 hours; 10 (2) shall, during each 12-month period, take at least 15 days of 11 personal leave. 12 * Sec. 5. AS 39.25.110(14) is amended to read: 13 (14) petroleum engineers and petroleum geologists employed in a 14 professional capacity by the Department of Natural Resources and by the Alaska Oil 15 and Gas Conservation Commission [, EXCEPT FOR THOSE EMPLOYED IN THE 16 DIVISION OF GEOLOGICAL AND GEOPHYSICAL SURVEYS IN THE 17 DEPARTMENT OF NATURAL RESOURCES]; 18 * Sec. 6. AS 39.27.011(a) is repealed and reenacted to read: 19 (a) The following monthly basic salary schedule is approved as the pay plan 20 for classified and partially exempt employees in the executive branch of the state 21 government who are not members of a collective bargaining unit established under the 22 authority of AS 23.40.070 - 23.40.260 (Public Employment Relations Act), and for 23 employees of the legislature under AS 24: 24 Range Step Step Step Step Step Step 25 No. A B C D E F 26 5 2,151 2,211 2,273 2,339 2,408 2,471 27 6 2,273 2,339 2,408 2,471 2,543 2,619 28 7 2,408 2,471 2,543 2,619 2,698 2,785 29 8 2,543 2,619 2,698 2,785 2,864 2,951 30 9 2,698 2,785 2,864 2,951 3,046 3,133 31 10 2,864 2,951 3,046 3,133 3,229 3,323

01 11 3,046 3,133 3,229 3,323 3,436 3,545 02 12 3,229 3,323 3,436 3,545 3,665 3,790 03 13 3,436 3,545 3,665 3,790 3,922 4,061 04 14 3,665 3,790 3,922 4,061 4,204 4,363 05 15 3,922 4,061 4,204 4,363 4,503 4,672 06 16 4,204 4,363 4,503 4,672 4,841 5,011 07 17 4,503 4,672 4,841 5,011 5,184 5,361 08 18 4,841 5,011 5,184 5,361 5,527 5,737 09 19 5,184 5,361 5,527 5,737 5,917 6,133 10 20 5,527 5,737 5,917 6,133 6,318 6,551 11 21 5,917 6,133 6,318 6,551 6,752 6,997 12 22 6,318 6,551 6,752 6,997 7,225 7,483 13 23 6,752 6,997 7,225 7,483 7,733 8,022 14 24 7,225 7,483 7,733 8,022 8,289 8,569 15 25 7,733 8,022 8,289 8,569 8,879 9,210 16 26 8,022 8,289 8,569 8,879 9,210 9,541 17 27 8,289 8,569 8,879 9,210 9,541 9,900 18 28 8,569 8,879 9,210 9,541 9,900 10,244 19 29 8,879 9,210 9,541 9,900 10,244 10,606 20 30 9,210 9,541 9,900 10,244 10,606 10,979 21 * Sec. 7. AS 39.27.011(e) is amended to read: 22 (e) Effective July 1, 2014 [2011], the amounts set out in the salary schedule 23 contained in (a) of this section are increased by one [TWO] percent. 24 * Sec. 8. AS 39.27.011(f) is amended to read: 25 (f) Effective July 1, 2015 [2012], the amounts set out in the salary schedule 26 contained in (a) of this section, as increased under (e) of this section, are increased by 27 2.5 [TWO] percent. 28 * Sec. 9. AS 39.27.011(h) is amended to read: 29 (h) Pay increments, computed at the rate of 3.25 [3.75] percent of the 30 employee's base salary, shall be provided after an employee has remained in the final 31 step within a given range for two years, and every two years thereafter, if, at the time

01 the employee becomes eligible for the increment, the employee's current annual rating 02 by the employee's supervisors is designated as "good" or higher. 03 * Sec. 10. AS 39.27.011 is amended by adding a new subsection to read: 04 (k) Notwithstanding (a) - (j) of this section, the governor or a designee of the 05 governor may, on a case-by-case basis, authorize for a partially exempt employee in 06 the executive branch a higher pay than Step F. The authorization must be based upon a 07 determination that the action serves a critical governmental interest of the state, the 08 employee possesses exceptional qualifications, recruitment difficulties exist, or the 09 action is necessary due to competitive salaries in the relevant labor market. A 10 determination made under this subsection must be in writing. 11 * Sec. 11. AS 39.27.020 is repealed and reenacted to read: 12 Sec. 39.27.020. Geographic pay differentials. (a) The following geographic 13 pay differentials established as a percentage above the basic salary schedule provided 14 in AS 39.27.011 are approved as an amendment to the basic salary schedule provided 15 in AS 39.27.011: 16 Geographic Pay 17 Duty Station Differential 18 19 Anchor Point 0 20 Anchorage 0 21 Anchorage International Airport 0 22 Aniak 50 23 Anvik 50 24 Auke Bay 5 25 Barrow 50 26 Bethel 50 27 Camp Carroll 0 28 Cantwell 0 29 Chena River 3 30 Chignik 50 31 Chitina 0

01 Cold Bay 50 02 Coldfoot Camp 37 03 Cooper Landing 0 04 Cordova 11 05 Craig 0 06 Crown Point 0 07 Deadhorse 50 08 Delta Junction 0 09 Denali 0 10 Dillingham 37 11 Douglas 5 12 Dutch Harbor 60 13 Eagle 0 14 Eagle River 0 15 Eielson Air Force Base 3 16 Elfin Cove 0 17 Elmendorf Air Force Base 0 18 Emmonak 50 19 Fairbanks 3 20 Finger Lake 0 21 Fort Richardson 0 22 Fort Wainwright 3 23 Fort Yukon 37 24 Gakona 0 25 Galena 37 26 Girdwood 0 27 Glennallen 0 28 Gustavus 0 29 Haines 0 30 Harding Lake 3 31 Healy 0

01 Homer 0 02 Hoonah 0 03 Iliamna 50 04 Juneau 5 05 Kaltag 50 06 Kenai 0 07 Ketchikan 0 08 King Cove 50 09 King Salmon 50 10 Klawock 0 11 Kodiak 11 12 Kotzebue 60 13 Mackenzie Point 0 14 Matanuska 0 15 McGrath 37 16 Mount Edgecumbe 5 17 Nancy 0 18 Nenana 0 19 Nikiski 0 20 Ninilchik 0 21 Nome 37 22 Northway 0 23 Palmer 0 24 Pelican 0 25 Petersburg 0 26 Point Alsworth 50 27 Port Moller 50 28 Saint Mary's 50 29 Sand Point 50 30 Selawik 60 31 Seward 0

01 Sitka 5 02 Skagway 0 03 Soldotna 0 04 Sterling 0 05 Sutton 0 06 Talkeetna 0 07 Tazlina 0 08 Tenakee Springs 0 09 Tok 0 10 Trapper Creek 0 11 Unalakleet 50 12 Unalaska 60 13 Valdez 11 14 Wasilla 0 15 Whittier 0 16 Willow 0 17 Wrangell 0 18 Yakutat 0 19 Other states 0 20 (b) If an employee's duty station is not included in (a) of this section and is not 21 in a foreign country, the commissioner of the Department of Administration shall 22 establish by regulation the appropriate geographic pay differential. The regulations are 23 not subject to AS 44.62 (Administrative Procedure Act). 24 (c) The commissioner of the Department of Administration shall establish 25 salary differentials for positions in foreign countries. The differentials shall be 26 adjusted annually, effective July 1, to maintain equitable relationships between 27 salaries for positions in foreign countries and salaries for positions in the state. 28 * Sec. 12. AS 39.27.030 is repealed and reenacted to read: 29 Sec. 39.27.030. Geographic pay differential survey. Subject to an 30 appropriation for this purpose, the director of the division of personnel shall conduct a 31 survey, at least every five years, to review the geographic pay differentials established

01 in or adopted under AS 39.27.020. The survey may address factors, as determined by 02 the director, that are also relevant in review of state salary schedules, entitlement for 03 beneficiaries of state programs, and payments for state service providers. The survey 04 must reflect the costs of living of duty stations in the state, and of other duty stations 05 outside of the state, by using the cost of living in Anchorage, Alaska as a base. 06 * Sec. 13. 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 geographic pay [STEP] differential under AS 39.27.020. 10 * Sec. 14. AS 44.31.020 is amended to read: 11 Sec. 44.31.020. Duties of department. The Department of Labor and 12 Workforce Development shall 13 (1) enforce the laws and adopt regulations under them concerning 14 employer-employee relationships, including the safety, hours of work, wages, and 15 conditions of workers, including children; 16 (2) accumulate, analyze, and report labor statistics; 17 (3) operate systems of workers' compensation and unemployment 18 insurance; 19 (4) gather data reflecting the cost of living in [THE] various locations 20 [ELECTION DISTRICTS] of the state upon request of the director of personnel under 21 AS 39.27.030 [; IN THIS PARAGRAPH, "ELECTION DISTRICT" HAS THE 22 MEANING GIVEN IN AS 39.27.020(b)]; 23 (5) operate the federally funded employment and training programs 24 under 29 U.S.C. 2801-2945 (Workforce Investment Act of 1998); 25 (6) administer the state's program of adult basic education and adopt 26 regulations to administer the program; and 27 (7) administer the programs of the Alaska Vocational Technical Center 28 and adopt regulations to administer the programs, including regulations that set rates 29 for student tuition and room and board and fees for the programs and services 30 provided by the department regarding the Alaska Vocational Technical Center. 31 * Sec. 15. AS 39.20.240 and AS 39.27.045 are repealed.

01 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 SALARY ADJUSTMENTS FOR CERTAIN EXEMPT OFFICERS AND 04 EMPLOYEES OF THE EXECUTIVE BRANCH. Public officers and permanent and 05 temporary employees in the executive branch of the state government, other than the governor 06 and lieutenant governor, and department heads, who are in the exempt service under 07 AS 39.25.110, are not members of a collective bargaining unit established under 08 AS 23.40.070 - 23.40.260 (Public Employment Relations Act), and are not otherwise covered 09 by AS 39.27.011(a) are entitled to receive salaries comparable to those received by classified 10 and partially exempt employees of the executive branch under AS 39.27.011(a), as repealed 11 and reenacted by sec. 6 of this Act, and under AS 39.27.011(e) and (f), as amended by secs. 7 12 and 8 of this Act. 13 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 SALARY ADJUSTMENTS FOR CERTAIN EMPLOYEES OF THE JUDICIAL 16 BRANCH. (a) Permanent and temporary employees and magistrates in the judicial branch of 17 the state government, other than justices and judges, who are not members of a collective 18 bargaining unit established under AS 23.40.070 - 23.40.260 (Public Employment Relations 19 Act) and are not otherwise covered by AS 39.27.011(a) are entitled to receive salary 20 adjustments comparable to those received by classified and partially exempt employees of the 21 executive branch under AS 39.27.011(a), as repealed and reenacted by sec. 6 of this Act, and 22 under AS 39.27.011(e) and (f), as amended by secs. 7 and 8 of this Act. 23 (b) Justices of the supreme court and judges of the court of appeals and the superior 24 and district courts are entitled to receive salary adjustments provided for in secs. 6 - 8 of this 25 Act in accordance with AS 22.05.140(d), AS 22.07.090(c), AS 22.10.190(d), and 26 AS 22.15.220(e). 27 * Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 SALARY INCREASES FOR CERTAIN EMPLOYEES OF THE UNIVERSITY OF 30 ALASKA. The employees of the University of Alaska who are not members of a collective 31 bargaining unit are entitled to receive salary increases in accordance with the compensation

01 policy of the Board of Regents of the University of Alaska. 02 * Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 APPLICABILITY. Section 10 of the Act applies whether a partially exempt employee 05 of the state in the executive branch was hired before, on, or after the effective date of this Act. 06 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 TRANSITION: GEOGRAPHIC PAY DIFFERENTIAL FOR CERTAIN STATE 09 EMPLOYEES. (a) If a state employee employed on the effective date of this Act would have 10 the employee's pay lowered as a result of changes to AS 39.27.020, as repealed and reenacted 11 by sec. 11 of this Act, the state employer may not lower the employee's pay as a result of 12 those provisions. However, the pay of a state employee described in this section continues at 13 the same amount so long as the employee remains in the same job at the same duty station as 14 the employee was employed on the effective date of this Act, or changes in response to other 15 law or personnel actions resulting in the employee receiving a higher pay than the fixed 16 amount. 17 (b) Notwithstanding AS 39.27.020, as repealed and reenacted by sec. 11 of this Act, if 18 the pay of an employee is reduced because of a demotion for cause or accepting a voluntary 19 demotion, the employee's pay differential solely as a result of the location of the employee's 20 duty station as of June 30, 2013, remains unchanged and continues so long as the employee 21 remains at the same duty station. Subsection (a) of this section does not apply to a state 22 employee who continues to meet the standards set out in this subsection. 23 (c) If the pay for a position of an employee described in (a) of this section is lowered 24 by the reclassification of the position, the employee must continue to receive the fixed pay 25 calculated under (a) of this section as long as the employee continues to meet the standards set 26 out in (a) of this section. 27 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSITION: REGULATIONS. The commissioner of the Department of 30 Administration or the personnel board may immediately adopt regulations necessary to 31 implement the respective changes made by this Act. The regulations shall not be subject to

01 AS 44.62 (Administrative Procedure Act). The regulations may not take effect before July 1, 02 2013. 03 * Sec. 22. Sections 3 and 4 of this Act take effect on December 16, 2013. 04 * Sec. 23. Section 9 of this Act takes effect July 1, 2015. 05 * Sec. 24. Section 21 of this Act takes effect immediately under AS 01.10.070(c). 06 * Sec. 25. Except as provided in secs. 22 - 24 of this Act, this Act takes effect July 1, 2013.