Senate Bill No. 269

Introduced By _______________________________________________________________________________



A Bill for an Act entitled: "An Act requiring the department of administration to develop, with the concurrence of the department of justice, the department of transportation, and the department of corrections, a separate pay plan for protective services professionals; defining "protective services professional" for the purpose of compensation; providing for the development and implementation of a pay plan for protective services professionals; providing for transition to a separate pay plan for protective services professionals; requiring the department of administration to develop draft legislation for review by the 56th legislature for the implementation of a separate pay plan for protective services professionals; amending sections 2-18-101, 2-18-301, 2-18-303, and 2-18-304, MCA; and providing effective dates."



STATEMENT OF INTENT

A statement of intent is required for this bill because [section 6] authorizes the department of administration to develop rules for implementing a separate pay plan for protective services professionals. It is the intent of the legislature that rules to be promulgated may address:

(1) specific issues related to a separate pay plan that are and are not negotiable under 39-31-305;

(2) the form and structure of a pay schedule to be adopted prior to July 1, 1999, whether by rule or by legislation; and

(3) other matters consistent with the purposes of this bill.



Be it enacted by the Legislature of the State of Montana:



NEW SECTION. Section 1.  Protective services professionals' pay schedules. The department shall develop, with the concurrence of the department of justice, the department of transportation, and the department of corrections, a pay schedule for protective services professionals. The pay schedule must be implemented for the period beginning July 1, 1999, and ending June 30, 2001. Insofar as the pay schedule applies to employees of a collective bargaining unit, its implementation is a negotiable subject under 39-31-305.



Section 2.  Section 2-18-101, MCA, is amended to read:

"2-18-101.   Definitions. As used in parts 1 through 3 and part 10 of this chapter, the following definitions apply:

(1)  "Agency" means a department, board, commission, office, bureau, institution, or unit of state government recognized in the state budget.

(2)  "Anniversary date", except as modified in part 3 of this chapter, means the month and day on which an employee began the most recent period of uninterrupted state service.

(3)  "Base salary" means the amount of compensation paid to an employee, excluding:

(a)  state contributions to group benefits provided in 2-18-703;

(b)  overtime;

(c)  fringe benefits as defined in 39-2-903; and

(d)  the longevity allowance provided in 2-18-304.

(4)  "Board" means the board of personnel appeals established in 2-15-1705.

(5)  "Class" means one or more positions substantially similar with respect to the kind or nature of duties performed, responsibility assumed, and level of difficulty so that the same descriptive title may be used to designate each position allocated to the class, similar qualifications may be required of persons appointed to the positions in the class, and the same pay rate or pay grade may be applied with equity.

(6)  "Class series benchmark" means a representative position within a class series that is used to illustrate the application of the job evaluation factors that are used to classify positions in the classification plan. A benchmark description describes the duties and responsibilities assigned and the factors applied to the class series benchmark.

(7)  "Class specification" means a written descriptive statement of the duties and responsibilities characteristic of a class of positions and includes the education, experience, knowledge, skills, abilities, and qualifications necessary to perform the work of the class.

(8)  "Compensation" means the annual or hourly wage or salary and includes the state contribution to group benefits under the provisions of 2-18-703.

(9)  "Department" means the department of administration created in 2-15-1001.

(10) Except in 2-18-306, "employee" means any state employee other than an employee excepted under 2-18-103 or 2-18-104 from the statewide classification system.

(11) "Entry salary" means the entry-level base salary for each grade provided in 2-18-312.

(12) "Grade" means the number assigned to a pay range within a pay schedule in part 3 of this chapter.

(13) "Job sharing" means the sharing by two or more persons of a position that is considered an aggregate or permanent position.

(14) "Market ratio" means an employee's base salary divided by the market salary for the employee's pay grade.

(15) "Market salary" means the midpoint in a pay grade provided in 2-18-312, based on the average base salary that other employers pay to employees in comparable occupations as determined by the department's salary survey of the relevant labor market.

(16) "Permanent position" means a position so designated as a permanent position on the appropriate agency list of authorized positions referenced in 2-18-206 and approved as such a permanent position in the biennium budget.

(17) "Permanent status" means the state that an employee attains after satisfactorily completing an appropriate probationary period in a permanent position.

(18) "Personal staff" means those positions occupied by employees appointed by the elected officials enumerated in Article VI, section 1, of the Montana constitution or by the public service commission as a whole.

(19) "Position" means a collection of duties and responsibilities currently assigned or delegated by competent authority, requiring the full-time, part-time, or intermittent employment of one person.

(20) "Program" means a combination of planned efforts to provide a service.

(21) "Protective services professional" means:

(a) a highway patrol officer, as defined in 61-1-305, except the chief, as defined in 61-1-302;

(b) an agent, as described in 44-2-111;

(c) a person authorized by the department of transportation or the department of justice to conduct an inspection pursuant to 61-9-501; or

(d) a person whose primary work function is to supervise or otherwise guard persons incarcerated in a component of the department of corrections described in 53-1-202(2).

(22) "Seasonal position" means a position so designated as a seasonal position on the appropriate agency list of authorized positions referenced in 2-18-206 and that is a permanent position but that is interrupted by the seasonal nature of the position.

(22)(23) "Temporary position" means a position so designated as a temporary position on the appropriate agency list of authorized positions referenced in 2-18-206, created for a definite period of time not to exceed 9 months."



Section 3.  Section 2-18-301, MCA, is amended to read:

"2-18-301.   Purpose and intent of part -- rules. (1) The purpose of this part is to provide the market-based compensation necessary to attract and retain competent and qualified employees in order to perform the services that the state is required to provide to its citizens.

(2)  It is the intent of the legislature that compensation plans for state employees, excluding those employees excepted under 2-18-103 or 2-18-104 and excluding employees compensated under 2-18-313 through 2-18-315 and [section 1], be based on an analysis of the labor market as provided by the department in a salary survey. The salary survey must be submitted to the office of budget and program planning as a part of the information required by 17-7-111.

(3)  Except as provided in 2-18-110, pay adjustments and pay schedules provided for in 2-18-303 and in, 2-18-312 through 2-18-315, and [section 1] supersede any other plan or systems established through collective bargaining after the adjournment of the 54th 56th legislature.

(4)  Pay levels provided for in 2-18-312 through 2-18-315 and [section 1] may not be increased through collective bargaining after adjournment of the 54th 56th legislature.

(5)  Total funds required to implement the pay schedules provided for in 2-18-312 through 2-18-315 and [section 1] for any employee group or bargaining unit may not be increased through collective bargaining over the amount appropriated by the 54th 56th legislature.

(6)  The department shall administer the pay program established by the legislature on the basis of merit, internal equity, and competitiveness to external labor markets when fiscally able.

(7)  The department may promulgate rules not inconsistent with the provisions of this part, collective bargaining statutes, or negotiated contracts to carry out the purposes of this part."



Section 4.  Section 2-18-303, MCA, is amended to read:

"2-18-303.   Procedures for using pay schedules. (1) The pay schedules provided in 2-18-312 must be implemented as follows:

(a)  The pay schedules provided in 2-18-312 indicate the entry salary and market salary for each grade for positions classified under the provisions of part 2 of this chapter.

(b)  Each employee newly hired by the state of Montana must be hired at the entry rate, except as provided in subsections (7) and (8).

(c)  On the first day of the first complete pay period in fiscal year 1996, each employee hired before July 1, 1995, is entitled to the amount of the employee's base salary as it was on June 30, 1995, plus, on the employee's anniversary date that occurs on or after September 30, 1995, the increases provided in subsection (1)(d), if applicable.

(d)  (i) Effective on the first day of the pay period that includes an employee's anniversary date during the fiscal years ending June 30, 1996, and June 30, 1997, an employee's market ratio must be compared to the target market ratio in the matrix in subsection (1)(d)(ii) that corresponds to the employee's grade level and completed years of uninterrupted state service. For employees hired on or before September 30, 1994, the anniversary date is October 1.

(ii) As provided in subsection (1)(d)(i), the following matrix must be used to compare an employee's market ratio to the target market ratio that corresponds to the employee's grade level and completed years of uninterrupted state service:

TARGET MARKET RATIOS

Grade Years

0 1 2 3 4 5 6 7 8 9 10

4 0.844 0.874 0.904 0.935 0.967 0.999 1.000 1.000 1.000 1.000 1.000

5 0.842 0.871 0.900 0.930 0.961 0.992 1.000 1.000 1.000 1.000 1.000

6 0.840 0.868 0.896 0.925 0.955 0.985 1.000 1.000 1.000 1.000 1.000

7 0.838 0.865 0.892 0.920 0.949 0.978 1.000 1.000 1.000 1.000 1.000

8 0.836 0.862 0.889 0.916 0.944 0.972 1.000 1.000 1.000 1.000 1.000

9 0.834 0.859 0.885 0.911 0.938 0.965 0.993 1.000 1.000 1.000 1.000

10 0.832 0.857 0.882 0.908 0.934 0.961 0.988 1.000 1.000 1.000 1.000

11 0.830 0.854 0.878 0.903 0.928 0.954 0.980 1.000 1.000 1.000 1.000

12 0.828 0.851 0.875 0.899 0.924 0.949 0.975 1.000 1.000 1.000 1.000

13 0.826 0.849 0.872 0.896 0.920 0.945 0.970 0.996 1.000 1.000 1.000

14 0.824 0.846 0.869 0.892 0.915 0.939 0.963 0.988 1.000 1.000 1.000

15 0.822 0.844 0.866 0.888 0.911 0.934 0.958 0.982 1.000 1.000 1.000

16 0.820 0.841 0.863 0.885 0.907 0.930 0.953 0.977 1.000 1.000 1.000

17 0.818 0.839 0.860 0.882 0.904 0.926 0.949 0.972 0.996 1.000 1.000

18 0.816 0.836 0.857 0.878 0.899 0.921 0.943 0.966 0.989 1.000 1.000

19 0.814 0.834 0.854 0.875 0.896 0.917 0.939 0.961 0.984 1.000 1.000

20 0.812 0.831 0.851 0.871 0.892 0.913 0.935 0.957 0.979 1.000 1.000

21 0.810 0.829 0.849 0.869 0.889 0.910 0.931 0.953 0.975 0.997 1.000

22 0.808 0.827 0.846 0.866 0.886 0.906 0.927 0.948 0.970 0.992 1.000

23 0.806 0.825 0.844 0.863 0.883 0.903 0.923 0.944 0.965 0.987 1.000

24 0.804 0.822 0.841 0.860 0.879 0.899 0.919 0.940 0.961 0.982 1.000

25 0.802 0.820 0.838 0.857 0.876 0.895 0.915 0.935 0.956 0.977 0.999

(iii) If, on the first day of the pay period that includes an employee's anniversary date during the fiscal year ending June 30, 1996, the employee's market ratio is less than the target market ratio that corresponds to the employee's grade level and completed years of uninterrupted state service, the employee's base salary must be increased to the lesser of:

(A)  the market salary for the employee's grade multiplied by the target ratio that corresponds to the employee's grade level and completed years of uninterrupted state service; or

(B)  the employee's base salary as it was on the last day of the pay period immediately preceding the pay period that includes October 1, 1995, plus 5%.

(iv) If, on the first day of the pay period that includes an employee's anniversary date during the fiscal year ending June 30, 1997, the employee's market ratio is less than the target market ratio that corresponds to the employee's grade level and completed years of uninterrupted state service, the employee's base salary must be increased to the lesser of:

(A)  the market salary for the employee's grade multiplied by the target ratio that corresponds to the employee's grade level and completed years of uninterrupted state service; or

(B)  the employee's base salary as it was on the last day of the pay period immediately preceding the pay period that includes October 1, 1996, plus 6%.

(e)  An employee's base salary may be no less than the entry salary for the employee's assigned grade.

(f)  An employee's base salary may not exceed the maximum salary for the employee's grade. The salary of an employee may not be reduced because of this provision.

(g)  The maximum salary for each grade is determined by subtracting the entry salary from the market salary and adding that amount to the market salary.

(h)  An employee's market ratio, as it was on the last day of the pay period immediately preceding the pay period that includes October 1, 1996, may not be reduced as a result of the adjustment of the pay ranges provided in 2-18-312(2).

(2)  The pay schedules provided in 2-18-312 and the provisions of subsection (1) of this section do not apply to those teachers, liquor store occupations, or blue-collar occupations, or protective services professional occupations compensated under the pay schedules provided in 2-18-313 through 2-18-315 and [section 1].

(3)  The pay schedules provided in 2-18-313 through 2-18-315 and [section 1] must be implemented as follows:

(a)  (i) The pay schedules provided for in 2-18-313 indicate the annual compensation for teachers employed under the authority of the department of corrections or the department of public health and human services for fiscal years 1996 and 1997.

(ii) The compensation of each teacher on July 1, 1995, is the same as it was on June 30, 1995.

(iii) On the first day of the first pay period that includes October 1 of each fiscal year, a teacher employed under the authority of the department of public health and human services prior to October 1, 1994, shall advance one step on the appropriate pay schedule adopted in 2-18-313. A teacher hired after October 1, 1994, shall advance on the teacher's actual anniversary date.

(iv) On the first day of the first full pay period during the month that includes the teacher's anniversary date, a teacher employed under the authority of the department of corrections shall advance one step on the appropriate pay schedule adopted in 2-18-313.

(v)  On the first day of the first pay period that includes October 1 of each fiscal year, a teacher employed by the Montana school for the deaf and blind shall advance one step on the teacher pay matrix used by the school.

(b)  (i) The pay schedules provided in 2-18-314 indicate the maximum hourly compensation for fiscal years ending June 30, 1996, and June 30, 1997, for those employees in liquor store occupations who have collectively bargained separate classification and pay plans.

(ii) The compensation of each employee on the first day of the first pay period in fiscal year 1996 or 1997 is that amount corresponding to the grade occupied on the last day of the preceding fiscal year.

(c)  (i) The pay schedules provided in 2-18-315 indicate the maximum hourly compensation for fiscal years ending June 30, 1996, and June 30, 1997, for employees in apprentice trades and crafts and other blue-collar occupations recognized in the state blue-collar classification plan who are members of units that have collectively bargained separate classification and pay plans.

(ii) The compensation of each employee on the first day of the first pay period in fiscal year 1996 or 1997 is that amount corresponding to the grade occupied on the last day of the preceding fiscal year.

(d) The pay schedule provided in [section 1] indicates the maximum compensation for fiscal years ending June 30, 2000, and June 30, 2001, for employees classified as protective services professionals.

(4)  (a) (i) A member of a bargaining unit may not receive a pay increase until the employer's collective bargaining representative receives written notice that the employee's bargaining unit has ratified a completely integrated collective bargaining agreement covering the biennium ending June 30, 1997 2001.

(ii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i), is not completed by July 1, 1995 1999, retroactivity to that date may be negotiated.

(iii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i), is not completed by July 1, 1995 1999, members of the bargaining unit must continue to receive the compensation that they were receiving as of June 30, 1995 1998, until an agreement is ratified.

(b)  Methods of administration not inconsistent with the purpose of this part and necessary to properly implement the pay schedules and adjustments provided in 2-18-312 through 2-18-315, [section 1], and this section may be provided for in collective bargaining agreements.

(5)  The current wage or salary of an employee may not be reduced by the implementation of the pay schedules provided for in 2-18-312 through 2-18-315 or [section 1].

(6)  The department may authorize a separate pay schedule for medical doctors if the rates provided in 2-18-312 are not sufficient to attract and retain fully licensed and qualified physicians at the state institutions.

(7)  The department may develop programs that enable the department to mitigate problems associated with difficult recruitment, retention, transfer, or other exceptional circumstances. Insofar as the program may apply to employees within a collective bargaining unit, it is a negotiable subject under 39-31-305.

(8)  The department shall review the competitiveness of the compensation provided to all occupations under this part. If the department finds that substantial problems exist with recruitment and retention because of inadequate salaries when compared to competing employers, the department may establish criteria allowing an adjustment in pay or classification to mitigate the problems. Insofar as these adjustments may apply to employees within a collective bargaining unit, the implementation of these adjustments is a negotiable subject under 39-31-305."



Section 5.  Section 2-18-304, MCA, is amended to read:

"2-18-304.   Longevity allowance. (1) (a) (i) Effective July 1, 1995, through the last day of the pay period immediately preceding the pay period that includes October 1, 1995, in addition to the compensation provided for in 2-18-303, 2-18-312, 2-18-313, 2-18-314, or 2-18-315, each employee who has completed 5 years of uninterrupted state service must receive 9/10 of 1% of the employee's base salary multiplied by the number of completed, contiguous 5-year periods of uninterrupted state service.

(ii) Effective on the first day of the pay period that includes October 1, 1995, in addition to the compensation provided for in 2-18-303, 2-18-312, 2-18-313, 2-18-314, or 2-18-315, or [section 1], each employee who has completed 5 years of uninterrupted state service must receive 1.5% of the employee's base salary multiplied by the number of completed, contiguous 5-year periods of uninterrupted state service.

(b)  Service to the state is not interrupted by authorized leaves of absence.

(2)  (a) For the purpose of determining years of service under this section, an employee must be credited with 1 year of service for each period of:

(i)  2,080 hours of service following the employee's date of employment; an employee must be credited with 80 hours of service for each biweekly pay period in which the employee is in a pay status or on an authorized leave of absence without pay, regardless of the number of hours of service in the pay period; or

(ii) 12 uninterrupted calendar months following the employee's date of employment in which the employee was in a pay status or on an authorized leave of absence without pay, regardless of the number of hours of service in any month. An employee of a school at a state institution or the university system must be credited with 1 year of service if the employee is employed for an entire academic year.

(b)  State agencies, other than the university system and a school at a state institution, shall use the method provided in subsection (2)(a)(i) to calculate years of service under this section."



NEW SECTION. Section 6.  Transition. (1) For the purposes of developing the pay schedule required in [section 1] and for otherwise implementing the provisions of 2-18-101, 2-18-301, 2-18-303, 2-18-304, [section 1], and this section:

(a) it is the intent of the legislature to provide to protective services professionals market-based compensation that is based on an analysis of the labor market determined in a salary survey; and

(b) the labor market for protective services professionals includes all positions for which the essential functions are similarly comparable to the essential functions of protective services professionals in:

(i) Montana cities and counties of the first class; and

(ii) the states of Idaho, North Dakota, South Dakota, Wyoming, and Washington if the persons employed in the comparable positions are employed by any of the respective states.

(2) The salary survey must be submitted to the office of budget and program planning as a part of the information required by 17-7-111.

(3)  Total funds required to implement the pay schedule provided for in [section 1] for any employee group or bargaining unit may not be increased through collective bargaining over the amount appropriated by the 56th legislature.

(4)  The department of administration shall administer the pay schedule established in [section 1] on the basis of merit, internal equity, and competitiveness to external labor markets when fiscally able.

(5)  The department of administration may promulgate rules consistent with the provisions of Title 2, chapter 18, part 3, collective bargaining statutes, or negotiated contracts to carry out the purposes of 2-18-101, 2-18-301, 2-18-303, 2-18-304, [section 1], and this section.

(6) By November 1, 1998, the department of administration shall submit to the 56th legislature in the form of proposed legislation the pay schedule developed pursuant to [section 1].



NEW SECTION. Section 7.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 2, chapter 18, part 3, and the provisions of Title 2, chapter 18, apply to [section 1].



NEW SECTION. Section 8.  Effective dates. (1) Except as provided in subsection (2), [this act] is effective on passage and approval.

(2) [Sections 3 through 5] are effective July 1, 1999.

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