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HB 71: "An Act relating to compensation, merit increases, and pay increments for certain public officials, officers, and employees not covered by collective bargaining agreements; and providing for an effective date."

00 HOUSE BILL NO. 71 01 "An Act relating to compensation, merit increases, and pay increments for certain 02 public officials, officers, and employees not covered by collective bargaining agreements; 03 and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 GENERAL PAY INCREASES, MERIT INCREASES, AND PAY INCREMENTS: 08 LEGISLATIVE FINDINGS AND INTENT. The legislature finds that the state is in a 09 condition of fiscal difficulty as a result of the abrupt reduction in oil prices beginning in 2014 10 and continuing to the present. This has led to a structural imbalance between revenues and 11 expenditures. It is the intent of the legislature to reduce the state's expenditures while 12 preserving essential services to the citizens of this state. Actions contrary to these two 13 essential goals jeopardize the state’s long-term fiscal health. A combination of program 14 reductions and short-term budgetary discipline is necessary to assist the state in returning to

01 fiscal stability while ensuring adequate funding for the provision of essential services. 02 For these reasons, the legislature is eliminating general pay increases, merit step 03 increases, and pay increments for unrepresented employees in the executive branch, 04 legislative branch, and the University of Alaska during fiscal years 2018 and 2019 in order to 05 reduce expenditures while maintaining stable workforce levels in order to provide essential 06 services to the public. 07 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 MERIT STEP AND PAY INCREMENT INCREASES FOR CLASSIFIED AND 10 PARTIALLY EXEMPT EMPLOYEES OF THE EXECUTIVE BRANCH. Notwithstanding 11 AS 39.25.140, 39.25.150, AS 39.27.011, and 2 AAC 07.365 - 2 AAC 07.368, employees in 12 the classified and partially exempt service in the executive branch, who are not members of a 13 collective bargaining unit established under AS 23.40.070 - 23.40.260 (Public Employment 14 Relations Act), may not receive a merit step or pay increment increase during the period 15 July 1, 2017, through June 30, 2019. 16 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 SALARY ADJUSTMENTS FOR CERTAIN EXEMPT EMPLOYEES OF THE 19 EXECUTIVE BRANCH. Notwithstanding any other applicable law, employees in the exempt 20 service under AS 39.25.110(9), (11) - (14), (17), (18), (20), (26), (30), and (34) - (43) and 21 employees in service under AS 18.56.052 and 18.56.060, who are not members of a collective 22 bargaining unit established under AS 23.40.070 - 23.40.260 (Public Employment Relations 23 Act), may not receive a general salary increase, merit step, pay increment, bonus, or 24 comparable salary increase during the period July 1, 2017, through June 30, 2019. 25 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 SALARY ADJUSTMENTS FOR THE GOVERNOR, LIEUTENANT GOVERNOR, 28 DEPARTMENT HEADS, AND MEMBERS OF THE LEGISLATURE. (a) Notwithstanding 29 AS 39.23.500 - 39.23.599, the governor, lieutenant governor, department heads, and members 30 of the legislature may not receive a salary increase during the period July 1, 2017, through 31 June 30, 2019.

01 (b) Notwithstanding AS 39.23.500 - 39.23.599, the governor may waive any portion 02 of the governor's salary during the period July 1, 2017, through June 30, 2019. 03 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 SALARY ADJUSTMENTS FOR EMPLOYEES OF THE LEGISLATURE. 06 Notwithstanding AS 39.25.140, 39.25.150, AS 39.27.011, and 2 AAC 07.365 - 2 AAC 07 07.368, permanent and temporary employees of the legislative branch of the state 08 government, including employees of the house and senate receiving compensation under 09 AS 24.10.200, employees of agencies governed by permanent interim committees of the 10 legislature, and employees of the committees themselves, receiving compensation under 11 AS 24.10.210, the employees of the office of victims' rights and the victims' advocate, and the 12 employees of the office of the ombudsman and the ombudsman, who are not members of a 13 collective bargaining unit established under AS 23.40.070 - 23.40.260 (Public Employment 14 Relations Act), may not receive a general salary increase, merit step, pay increment, bonus, or 15 comparable salary increase during the period July 1, 2017, through June 30, 2019. 16 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 17 read: 18 SALARY ADJUSTMENTS FOR CERTAIN EMPLOYEES OF THE UNIVERSITY 19 OF ALASKA. Employees of the University of Alaska, who are not members of a collective 20 bargaining unit established under AS 23.40.070 - 23.40.260 (Public Employment Relations 21 Act), may not receive a general salary increase, merit step, pay increment, bonus, or 22 comparable salary increase during the period July 1, 2017, through June 30, 2019. 23 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 APPLICABILITY: MERIT STEP INCREASES FOR CERTAIN EMPLOYEES. If an 26 employee would be considered for a merit step increase between July 1, 2017, and June 30, 27 2019, but for secs. 2, 3, 5, and 6 of this Act, the employee may be considered for a step 28 increase on the employee's merit anniversary date, as determined by 2 AAC 07.360, occurring 29 between July 1, 2019, and June 30, 2020. Time worked before July 1, 2017, at one step may 30 be considered for purposes of a merit step increase, but time worked between July 1, 2017, 31 and June 30, 2019, may not be considered. The increase may not be paid retroactively.

01 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY: PAY INCREMENTS FOR CERTAIN EMPLOYEES. If an 04 employee would be considered for a pay increment between July 1, 2017, and June 30, 2019, 05 but for secs. 2, 3, 5, and 6 of this Act, the employee may be considered for a pay increment on 06 the employee's merit anniversary date, as determined by 2 AAC 07.360, occurring between 07 July 1, 2019, and June 30, 2021. Time worked before July 1, 2017, at one step may be 08 considered for purposes of a pay increment, but time worked between July 1, 2017, and 09 June 30, 2019, may not be considered. The increase may not be paid retroactively. 10 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 11 read: 12 APPLICABILITY. This Act does not apply to individual employment contracts 13 entered into before July 1, 2017. 14 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 TRANSITION: REGULATIONS. The commissioner of administration or the 17 personnel board may adopt regulations necessary to implement the respective changes made 18 by this Act. The regulations are not subject to AS 44.62 (Administrative Procedure Act). 19 * Sec. 11. Section 10 of this Act takes effect immediately under AS 01.10.070(c). 20 * Sec. 12. Except as provided in sec. 11 of this Act, this Act takes effect July 1, 2017.