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CSSB 95(FIN): "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 the compensation and geographic differentials in pay of certain justices and judges; 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 CS FOR SENATE BILL NO. 95(FIN) 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 the compensation and geographic differentials in pay 04 of certain justices and judges; relating to certain petroleum engineers and petroleum 05 geologists employed by the Department of Natural Resources; relating to increased pay 06 for certain partially exempt employees of the state in specific circumstances; making 07 conforming amendments; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 22.05.140(c) is amended to read: 10 (c) In addition to the monthly salary, each justice is entitled to receive a 11 geographic cost-of-living adjustment each year on $100,000 of the justice's annual 12 base salary for that year [UNDER AS 22.35.010], based on the location of the 13 primary office assignment. The commissioner of administration shall calculate the

01 geographic cost-of-living adjustment based on the geographic pay differentials 02 established under AS 39.27.020(a). Retirement contributions and benefits shall be 03 computed only on the monthly base salary not including the geographic cost-of-living 04 adjustment. 05 * Sec. 2. AS 22.10.190(c) is amended to read: 06 (c) In addition to the monthly salary, each superior court judge is entitled to 07 receive a geographic cost-of-living adjustment each year on $100,000 of the judge's 08 annual base salary for that year [UNDER AS 22.35.010], based on the location of 09 the primary office assignment. The commissioner of administration shall calculate 10 the geographic cost-of-living adjustment based on the geographic pay 11 differentials established under AS 39.27.020(a). Retirement contributions and 12 benefits shall be computed only on the monthly base salary not including the 13 geographic cost-of-living adjustment. 14 * Sec. 3. AS 22.15.220(d) is amended to read: 15 (d) In addition to the monthly salary, each district court judge is entitled to 16 receive a geographic cost-of-living adjustment each year on $100,000 of the judge's 17 annual base salary for that year [UNDER AS 22.35.010], based on the location of 18 the primary office assignment. The commissioner of administration shall calculate 19 the geographic cost-of-living adjustment based on the geographic pay 20 differentials established under AS 39.27.020(a). Retirement contributions and 21 benefits shall be computed only on the monthly base salary not including the 22 geographic cost-of-living adjustment. 23 * Sec. 4. AS 39.20.200(a) is amended to read: 24 (a) Officers and employees of the state employed before July 1, 2013, are 25 entitled to personal leave with pay that accrues as follows: 26 (1) two days for each full monthly pay period in the case of officers 27 and employees with less than two years of service; 28 (2) two and one-quarter days for each full monthly pay period in the 29 case of officers and employees with two but less than five years of service; 30 (3) two and one-half days for each full monthly pay period in the case 31 of officers and employees with five but less than 10 years of service;

01 (4) three days for each full monthly pay period in the case of officers 02 and employees with 10 years or more of service. 03 * Sec. 5. AS 39.20.200 is amended by adding a new subsection to read: 04 (c) Officers and employees of the state employed on or after July 1, 2013, are 05 entitled to personal leave with pay that accrues as follows: 06 (1) one and three-quarters days for each full monthly pay period in the 07 case of officers and employees with less than two years of service; 08 (2) two days for each full monthly pay period in the case of officers 09 and employees with two but less than five years of service; 10 (3) two and one-quarter days for each full monthly pay period in the 11 case of officers and employees with five but less than 10 years of service; 12 (4) two and one-half days for each full monthly pay period in the case 13 of officers and employees with 10 but less than 15 years of service; 14 (5) three days for each full monthly pay period in the case of officers 15 and employees with 15 years or more of service. 16 * Sec. 6. AS 39.20.225(c) is amended to read: 17 (c) Except as otherwise provided in this section, each [EACH] officer or 18 [AND] employee shall, during each 12-month period, take at least 10 [FIVE] days of 19 personal leave. If the officer or employee does not take at least 10 [FIVE] days of 20 personal leave during a 12-month period, the difference between 10 [FIVE] days and 21 the amount of personal leave taken shall be canceled without pay unless the 22 department or agency head certifies in writing that the officer or employee was denied 23 the opportunity to take 10 [FIVE] days of personal leave during the 12-month period. 24 * Sec. 7. AS 39.20.240 is amended to read: 25 Sec. 39.20.240. Accumulation of personal leave. Except as provided in 26 AS 39.20.225(c) and this section, personal leave that is not taken by an officer or 27 employee during a 12-month period accumulates for use in succeeding 12-month 28 periods. 29 * Sec. 8. AS 39.20.240 is amended by adding new subsections to read: 30 (b) Notwithstanding (a) of this section, an officer or employee may not 31 accumulate more than 1,000 hours of personal leave at the end of each 12-month

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

01 10 2,864 2,951 3,046 3,133 3,229 3,323 02 11 3,046 3,133 3,229 3,323 3,436 3,545 03 12 3,229 3,323 3,436 3,545 3,665 3,790 04 13 3,436 3,545 3,665 3,790 3,922 4,061 05 14 3,665 3,790 3,922 4,061 4,204 4,363 06 15 3,922 4,061 4,204 4,363 4,503 4,672 07 16 4,204 4,363 4,503 4,672 4,841 5,011 08 17 4,503 4,672 4,841 5,011 5,184 5,361 09 18 4,841 5,011 5,184 5,361 5,527 5,737 10 19 5,184 5,361 5,527 5,737 5,917 6,133 11 20 5,527 5,737 5,917 6,133 6,318 6,551 12 21 5,917 6,133 6,318 6,551 6,752 6,997 13 22 6,318 6,551 6,752 6,997 7,225 7,483 14 23 6,752 6,997 7,225 7,483 7,733 8,022 15 24 7,225 7,483 7,733 8,022 8,289 8,569 16 25 7,733 8,022 8,289 8,569 8,879 9,210 17 26 8,022 8,289 8,569 8,879 9,210 9,541 18 27 8,289 8,569 8,879 9,210 9,541 9,900 19 28 8,569 8,879 9,210 9,541 9,900 10,244 20 29 8,879 9,210 9,541 9,900 10,244 10,606 21 30 9,210 9,541 9,900 10,244 10,606 10,979 22 * Sec. 11. AS 39.27.011(e) is amended to read: 23 (e) Effective July 1, 2014 [2011], the amounts set out in the salary schedule 24 contained in (a) of this section are increased by one [TWO] percent. 25 * Sec. 12. AS 39.27.011(f) is amended to read: 26 (f) Effective July 1, 2015 [2012], the amounts set out in the salary schedule 27 contained in (a) of this section, as increased under (e) of this section, are increased by 28 2.5 [TWO] percent. 29 * Sec. 13. AS 39.27.011(h) is amended to read: 30 (h) Pay increments, computed at the rate of 3.25 [3.75] percent of the 31 employee's base salary, shall be provided after an employee has remained in the final

01 step within a given range for two years, and every two years thereafter, if, at the time 02 the employee becomes eligible for the increment, the employee's current annual rating 03 by the employee's supervisors is designated as "good" or higher. 04 * Sec. 14. AS 39.27.011 is amended by adding a new subsection to read: 05 (k) Notwithstanding (a) - (j) of this section, the governor or a designee of the 06 governor may, on a case-by-case basis, authorize for a partially exempt employee in 07 the executive branch a higher pay than Step F. The authorization must be based on a 08 determination that the action serves a critical governmental interest of the state, the 09 employee possesses exceptional qualifications, recruitment difficulties exist, or the 10 action is necessary due to competitive salaries in the relevant labor market. A 11 determination made under this subsection must be in writing. 12 * Sec. 15. AS 39.27.020 is repealed and reenacted to read: 13 Sec. 39.27.020. Geographic pay differentials. (a) The following geographic 14 pay differentials established as a percentage above the basic salary schedule provided 15 in AS 39.27.011 are approved as an amendment to the basic salary schedule provided 16 in AS 39.27.011: 17 Geographic Pay 18 Duty Station Differential 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 administration shall establish by regulation 22 the appropriate geographic pay differential. The regulations are not subject to 23 AS 44.62 (Administrative Procedure Act). 24 (c) The commissioner of administration shall establish geographic pay 25 differentials for positions in foreign countries. The differentials shall be adjusted 26 annually, effective July 1, to maintain equity between salaries for positions in foreign 27 countries and salaries for positions in the state. 28 * Sec. 16. AS 39.27.030 is repealed and reenacted to read: 29 Sec. 39.27.030. Geographic pay differential survey. Subject to appropriation, 30 the director of the division of personnel shall conduct a survey, at least every five 31 years, to review the geographic pay differentials under AS 39.27.020. The survey may

01 address factors the director determines are relevant to review state salary schedules, 02 entitlements for beneficiaries of state programs, and payments for state service 03 providers. The survey must reflect the cost of living for duty stations in the state or 04 outside of the state by using the cost of living in Anchorage, Alaska, as a base. 05 * Sec. 17. AS 39.35.675(d) is amended to read: 06 (d) In this section, "cost-of-living differential" means an adjustment to salary 07 based on the cost of living in the geographic region where the employee works and 08 includes a geographic pay [STEP] differential under AS 39.27.020. 09 * Sec. 18. AS 44.31.020 is amended to read: 10 Sec. 44.31.020. Duties of department. The Department of Labor and 11 Workforce Development shall 12 (1) enforce the laws and adopt regulations under them concerning 13 employer-employee relationships, including the safety, hours of work, wages, and 14 conditions of workers, including children; 15 (2) accumulate, analyze, and report labor statistics; 16 (3) operate systems of workers' compensation and unemployment 17 insurance; 18 (4) gather data reflecting the cost of living in [THE] various locations 19 [ELECTION DISTRICTS] of the state upon request of the director of personnel under 20 AS 39.27.030 [; IN THIS PARAGRAPH, "ELECTION DISTRICT" HAS THE 21 MEANING GIVEN IN AS 39.27.020(b)]; 22 (5) operate the federally funded employment and training programs 23 under 29 U.S.C. 2801 - 2945 (Workforce Investment Act of 1998); 24 (6) administer the state's program of adult basic education and adopt 25 regulations to administer the program; and 26 (7) administer the programs of the Alaska Vocational Technical Center 27 and adopt regulations to administer the programs, including regulations that set rates 28 for student tuition and room and board and fees for the programs and services 29 provided by the department regarding the Alaska Vocational Technical Center. 30 * Sec. 19. AS 22.35.010 and AS 39.27.045 are repealed. 31 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to

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

01 APPLICABILITY. Section 14 of this Act applies to a partially exempt employee of 02 the state in the executive branch hired before, on, or after the effective date of sec. 14 of this 03 Act. 04 * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 TRANSITION: GEOGRAPHIC PAY DIFFERENTIAL FOR CERTAIN JUSTICES, 07 JUDGES, AND STATE EMPLOYEES. (a) If a state employee, including a justice or judge, 08 employed on the effective date of sec. 15 of this Act would have the employee's pay lowered 09 as a result of changes to AS 39.27.020, as repealed and reenacted by sec. 16 of this Act, the 10 state may not lower the employee's pay as a result of those changes. However, the pay of a 11 state employee described in this subsection may not be raised as long as the employee remains 12 in the job and duty station that the employee was employed in on the effective date of sec. 15 13 of this Act, unless the employee is entitled to a pay raise irrespective of the changes to 14 AS 39.27.020, as repealed and reenacted by sec. 15 of this Act. 15 (b) The geographic pay differentials under AS 39.27.020, as repealed and reenacted 16 by sec. 15 of this Act, do not apply to the pay of an employee whose pay is reduced because 17 of a demotion for cause or a voluntary demotion, and (a) of this section does not apply, as 18 long as the employee remains at the job and duty station that the employee was employed in 19 on the effective date of sec. 15 of this Act. 20 (c) If the pay for a position of an employee described in (a) of this section is lowered 21 by the reclassification of the position, the employee remains subject to (a) of this section as 22 long as the employee continues to remain at the job and duty station that the employee was 23 employed in on the effective date of sec. 15 of this Act. 24 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 TRANSITION: REGULATIONS. The commissioner of administration or the 27 personnel board may immediately adopt regulations necessary to implement the respective 28 changes made by this Act. The regulations are not subject to AS 44.62 (Administrative 29 Procedure Act). The regulations may take effect after the effective date of the law 30 implementing the regulation. 31 * Sec. 26. Sections 6 - 8 of this Act take effect December 16, 2013.

01 * Sec. 27. Section 13 of this Act takes effect July 1, 2015. 02 * Sec. 28. Section 25 of this Act takes effect immediately under AS 01.10.070(c). 03 * Sec. 29. Except as provided in secs. 26 - 28 of this Act, this Act takes effect July 1, 2013.