HOUSE BILL NO. 13

INTRODUCED BY R. JOHNSON

BY REQUEST OF THE GOVERNOR

A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR PAY AND BENEFITS FOR STATE EMPLOYEES IN THE STATEWIDE AND BLUE-COLLAR PAY PLANS; INCREASING THE LONGEVITY ALLOWANCE AT THE 15- AND 20-YEAR INCREMENTS; REVISING THE MILEAGE REIMBURSEMENT RATE; INCREASING THE STATE CONTRIBUTION TO THE EMPLOYEE GROUP BENEFIT PROGRAM; REQUIRING A REDUCTION IN AUTHORIZED POSITIONS FOR CERTAIN AGENCIES; DIRECTING THE DEPARTMENT OF ADMINISTRATION TO DEVELOP AND IMPLEMENT AN ALTERNATIVE PAY AND CLASSIFICATION PLAN THROUGH DEMONSTRATION PROJECTS FOR CERTAIN CLASSES, OCCUPATIONS, AND WORK UNITS; PROVIDING APPROPRIATIONS; AMENDING SECTIONS 2-18-101, 2-18-204, 2-18-301, 2-18-303, 2-18-304, 2-18-312, 2-18-313, 2-18-315, 2-18-503, AND 2-18-703, MCA; AND PROVIDING EFFECTIVE DATES."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. 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) "Competencies" means sets of measurable and observable knowledge, skills, abilities, and behaviors that contribute to success in a job.

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

(11) 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.

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

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

(14) "Job sharing" means the sharing by two or more persons of a position.

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

(16) "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.

(17) "Permanent employee" means an employee who is designated by an agency as permanent and who has attained or is eligible to attain permanent status.

(18) "Permanent status" means the state an employee attains after satisfactorily completing an appropriate probationary period.

(19) "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.

(20) "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.

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

(22) "Seasonal employee" means a permanent employee who is designated by an agency as seasonal, who performs duties interrupted by the seasons, and who may be recalled without the loss of rights or benefits accrued during the preceding season.

(23) "Short-term worker" means a person who:

(a) is hired by an agency for an hourly wage established by the agency;

(b) may not work for the agency for more than 90 days in a continuous 12-month period;

(c) is not eligible for permanent status;

(d) may not be hired into another position by the agency without a competitive selection process; and

(e) is not eligible to earn the leave and holiday benefits provided in part 6 or the group insurance benefits provided in part 7.

(24) "Temporary employee" means an employee who:

(a) is designated as temporary by an agency for a definite period of time not to exceed 12 months;

(b) performs temporary duties or permanent duties on a temporary basis;

(c) is not eligible for permanent status;

(d) is terminated at the end of the employment period; and

(e) is not eligible to become a permanent employee without a competitive selection process."

Section 2. Section 2-18-204, MCA, is amended to read:

"2-18-204. Determination of number and classes of employees in each agency. (1) Based on documentation to be submitted by each agency, the department shall determine the classes of positions of employees of each agency or program thereof before the beginning of each fiscal year. At any time, upon request of the agency, the department may amend the classes of positions of employees in any agency or program thereof.

(2) Based on documentation to be submitted by each agency, the budget director shall determine the number of positions and employees (full-time equivalents) of each agency or program thereof prior to preparation of the executive budget and before the beginning of each fiscal year. At any time, upon the request of the agency, the budget director may amend the number of positions or employees (full-time equivalents) in any agency or program thereof.

(3) This section does not limit legislative authority to amend the determinations of the department or the budget director.

(4) (a) By September 1, 2000, each agency other than those referred to in subsection (4)(b) shall identify the specific positions that are to be removed from the list of authorized positions provided for in 2-18-206. The number of positions that are to be removed must be sufficient to equal a reduction of 3% of the amount of personal services appropriated for fiscal year 2001. Each agency and the budget director shall use the modified list of authorized positions in the preparation of the executive budget. The list prepared pursuant to this subsection must be provided to the legislative fiscal analyst and the office of budget and program planning.

(b) Subsection (4)(a) does not apply to an agency that has less than 85 authorized positions, the legislative branch, the judicial branch, any program with 50% or more elected officials, or the university system."

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 and 2-18-315, 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, 2-18-313, and 2-18-315 supersede any other plan or systems established through collective bargaining after the adjournment of the 56th legislature.

(4) Pay levels provided for in 2-18-312, 2-18-313, and 2-18-315 may not be increased through collective bargaining after adjournment of the 56th legislature.

(5) Total funds required to implement the pay schedules provided for in 2-18-312, 2-18-313, and 2-18-315 for any employee group or bargaining unit may not be increased through collective bargaining over the amount appropriated by the 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.

(8) Nothing in this part prohibits the board of regents from engaging in negotiations with the collective bargaining units representing the classified staff of the university system."

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 (6), (7), (8), and (9).

(c) On the first day of the first complete pay period in fiscal year 2000, each employee is entitled to the amount of the employee's base salary as it was on June 30, 1999.

(d) Effective on the first day of the pay period that includes an employee's anniversary date during the fiscal years ending June 30, 2000, and June 30, 2001, the employee's base salary must be increased by 3% or by a lesser amount so that the employee's base salary after the increase does not exceed the maximum salary of the pay grade as provided in subsection (1)(f). An employee's base salary increases resulting from subsection (1)(e) and this subsection may not exceed a maximum of 3% in each fiscal year. For employees hired on or before September 30, 1994, the anniversary date is October 1.

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

(f) 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.

(2) The pay schedules provided in 2-18-312 and the provisions of subsection (1) of this section do not apply to those teachers or blue-collar occupations compensated under the pay schedules provided in 2-18-313 and 2-18-315.

(3) The pay schedules provided in 2-18-313 and 2-18-315 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 2000 and 2001.

(ii) The compensation of each teacher on July 1, 1999, is the same as it was on June 30, 1999.

(b) (i) The pay schedules provided in 2-18-315 indicate the maximum hourly compensation for fiscal years ending June 30, 2000, and June 30, 2001, 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 each fiscal year is that amount corresponding to the grade occupied on the last day of the preceding fiscal year.

(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, 2001.

(ii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i), is not completed by July 1, 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, 1999, members of the bargaining unit must continue to receive the compensation that they were receiving as of June 30, 1999, 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, 2-18-313, 2-18-315, 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, 2-18-313, and 2-18-315.

(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 .

(7) (a) The department may develop and implement an alternative pay and classification plan through demonstration projects for certain classes, occupations, and work units. Pay for employees in the alternative pay and classification plan may be established and changed based on demonstrated competencies and accomplishments, on the labor market, and on other situations defined by the department.

(b) The department may develop demonstration projects for protective service and public safety classes, information technology classes, brand inspector classes in the department of livestock, managers in the department of commerce, counselors and resident care aides at the Montana chemical dependency center, health care facility surveyors at the department of public health and human services, classes in the department of revenue, and any other class or work unit appropriate for a demonstration project, as determined by the department.

(i) To the extent that a project applies to employees within a collective bargaining unit, the implementation of the project is a negotiable subject under 39-31-305.

(ii) No employee whose position is excepted from the provisions of this section under this subsection (7)(b) will receive a pay increase for the fiscal years ending 2000 and 2001 less than that prescribed under this section.

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

(9) 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. To the extent that these adjustments 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) In addition to the compensation provided for in 2-18-303, 2-18-312, 2-18-313, or 2-18-315, 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) Beginning October 1, 1999, in addition to the longevity allowance provided under subsection (1)(a), each employee who has completed 15 years of uninterrupted state service or completed 20 years of uninterrupted state service must receive an additional 0.5% of the employee's base salary for each of those additional 5 years of uninterrupted service.

(c) 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.

(3) For the purposes of calculating longevity, employment as a short-term worker does not apply toward years of service."

Section 6. Section 2-18-312, MCA, is amended to read:

"2-18-312. Statewide pay schedules . (1) The statewide classification pay schedule for the period beginning on the first day of the first full pay period in fiscal year 2000 , is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Pay Matrix -- State	Matrix Type -- Annual

Pay Range: Entry Salary to Market Salary

GRADE	ENTRY SALARY	MARKET SALARY

1	9,076	10,677

2	9,776	11,527

3	10,528	12,446

4	11,346	13,445

5	12,261	14,563

6	13,249	15,774

7	14,313	17,079

8	15,514	18,556

9	16,796	20,140

10	18,219	21,897

11	19,766	23,814

12	21,482	25,944

13	23,343	28,260

14	25,403	30,828

15	27,673	33,664

16	30,202	36,834

17	33,025	40,374

18	36,137	44,286

19	39,625	48,680

20	43,517	53,591

21	47,841	59,063

22	52,670	65,186

23	58,118	72,107

24	64,237	79,895

25	71,005	88,534

(2) Effective on the first day of the pay period that includes October 1, 1999, the statewide classification pay schedule is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Pay Matrix -- State	Matrix Type -- Annual

Pay Range: Entry Salary to Market Salary

GRADE	ENTRY SALARY	MARKET SALARY

1	9,075	10,677

2	9,776	11,527

3	10,529	12,447

4	11,346	13,445

5	12,262	14,562

6	13,283	15,814

7	14,383	17,164

8	15,631	18,695

9	16,964	20,342

10	18,445	22,171

11	20,064	24,172

12	21,859	26,397

13	23,810	28,827

14	25,975	31,520

15	28,365	34,507

16	31,032	37,848

17	34,014	41,585

18	37,222	45,614

19	40,814	50,140

20	44,824	55,199

21	49,275	60,836

22	54,251	67,140

23	59,860	74,271

24	66,163	82,291

25	73,135	91,189

(3) Effective on the first day of the pay period that includes October 1, 2000, the statewide classification pay schedule is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Pay Matrix -- State	Matrix Type -- Annual

Pay Range: Entry Salary to Market Salary

GRADE	ENTRY SALARY	MARKET SALARY

1	9,075	10,677

2	9,776	11,527

3	10,529	12,447

4	11,346	13,445

5	12,262	14,562

6	13,316	15,854

7	14,456	17,249

8	15,748	18,834

9	17,135	20,546

10	18,676	22,447

11	20,365	24,534

12	22,241	26,859

13	24,286	29,403

14	26,560	32,230

15	29,074	35,370

16	31,884	38,888

17	35,036	42,833

18	38,339	46,983

19	42,039	51,644

20	46,170	56,885

21	50,754	62,660

22	55,877	69,154

23	61,655	76,498

24	68,147	84,760

25	75,329	93,924"

Section 7. Section 2-18-313, MCA, is amended to read:

"2-18-313. Teachers' pay schedules. The pay schedule for teachers for the period that includes October 1, 1998, and thereafter is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Term -- Twelve Months	Matrix Type -- Annual

Education Level

STEP	BA	BA+1	BA+2	BA+3	MA	MA+1

1	23,642	24,351	25,082	25,834	26,609	27,407

2	24,351	25,082	25,834	26,609	27,407	28,230

3	25,082	25,834	26,609	27,407	28,230	29,077

4	25,834	26,609	27,407	28,230	29,077	29,949

5	26,609	27,407	28,230	29,077	29,949	30,847

6	27,407	28,230	29,077	29,949	30,847	31,773

7	28,230	29,077	29,949	30,847	31,773	32,726

8	29,077	29,949	30,847	31,773	32,726	33,708

9	29,949	30,847	31,773	32,726	33,708	34,719

10	30,847	31,773	32,726	33,708	34,719	35,761

11	31,773	32,726	33,708	34,719	35,761	36,833

12	32,726	33,708	34,719	35,761	36,833	37,938

13	33,708	34,719	35,761	36,833	37,938	39,077"

Section 8. Section 2-18-315, MCA, is amended to read:

"2-18-315. Blue-collar pay schedules. (1) The pay schedule for blue-collar workers for the period from July 1, 1999, until the first day of the pay period that includes October 1999 is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Pay Matrix -- Blue-Collar	Matrix Type -- Hourly

Grade	Hour

B1	10 .515

B2	10 .915

B3	11 .315

B4	11 .715

B5	12 .115

B6	12 .515

B7	12 .915

B8	13 .315

B9	13 .715

B10	14 .115

B11	14 .515

B12	14 .915

B00	15 .315

(2) Effective on the first day of the pay period that includes October 1, 1999, until the first day of the pay period that includes October 2000, the pay schedule for blue-collar workers is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Pay Matrix -- Blue-Collar	Matrix Type -- Hourly

Grade	Hour

B1	10 .895

B2	11 .295

B3	11 .695

B4	12 .095

B5	12 .495

B6	12 .895

B7	13 .295

B8	13 .695

B9	14 .095

B10	14 .495

B11	14 .895

B12	15 .295

B00	15 .695

(3) Effective on the first day of the pay period that includes October 1, 2000, the pay schedule for blue-collar workers is as follows:

Annual Hours -- 2080	Note: Does Not Include Insurance

Pay Matrix -- Blue-Collar	Matrix Type -- Hourly

Grade	Hour

B1	11 .275

B2	11 .675

B3	12 .075

B4	12 .475

B5	12 .875

B6	13 .275

B7	13 .675

B8	14 .075

B9	14 .475

B10	14 .875

B11	15 .275

B12	15 .675

B00	16 .075"

Section 9. Section 2-18-503, MCA, is amended to read:

"2-18-503. Mileage -- allowance. (1) Members of the legislature, state officers and employees, jurors, witnesses, county agents, and all other persons who may be entitled to mileage paid from public funds when using their own automobiles in the performance of official duties are entitled to collect mileage for the distance actually traveled by automobile and no more unless otherwise specifically provided by law.

(2) When the individual is authorized to operate a privately owned vehicle even though a government-owned or leased vehicle is available, a rate of 3 cents less per mile than the mileage rate allowed by the United States internal revenue service for the current year must be paid.

(3) When a privately owned vehicle is used because a government-owned or leased vehicle is not available or because the use is in the best interest of the governmental entity, a rate equal to the mileage allotment allowed by the United States internal revenue service for the current year must be paid for the first 1,000 miles and 3 cents less per mile for all additional miles traveled within a given calendar month.

(4) Members of the legislature, state officers and employees, jurors, witnesses, county agents, and all other persons who may be entitled to mileage paid from public funds, when using their own airplanes in the performance of official duties, are entitled to collect mileage for the nautical air miles actually traveled at a rate of twice the mileage allotment for automobile travel and no more unless specifically provided by law.

(5) This section does not alter 5-2-301.

(6) The department of administration shall prescribe policies necessary for the effective administration of this section for state government. The Montana Administrative Procedure Act, Title 2, chapter 4, does not apply to policies prescribed to administer this part."

Section 10. Section 2-18-703, MCA, is amended to read:

"2-18-703. Contributions. (1) Each agency, as defined in 2-18-601, shall contribute the amount specified in this section towards the group benefits cost.

(2) For employees defined in 2-18-701 and for members of the legislature, the employer contribution for group benefits is $270 a month for the period from July 1999 through December 1999, $285 a month for the period from January 2000 through December 2000, and $295 a month for January 2001 and for each succeeding month. For employees of the Montana university system, the employer contribution for group benefits is $285 a month for the period from July 1999 through June 2000 and $295 a month for the period from July 2000 through June 2001 and for each succeeding month. When a state employee is terminated to achieve a reduction in force, the continuation of contributions for group benefits beyond the termination date is subject to negotiation under 39-31-305. Permanent part-time, seasonal part-time, and temporary part-time employees who are regularly scheduled to work less than 20 hours a week are not eligible for the group benefit contribution. An employee who elects not to be covered by a state-sponsored group benefit plan may not receive the state contribution. A portion of the employer contribution for group benefits may be applied to an employee's costs for participation in Part B of medicare under Title XVIII of the Social Security Act, as amended, if the state group benefit plan is the secondary payer and medicare the primary payer.

(3) For employees of elementary and high school districts and of local government units, the employer's premium contributions may exceed but may not be less than $10 a month.

(4) Unused employer contributions for any state employee must be transferred to an account established for this purpose by the department of administration and upon transfer may be used to offset losses occurring to the group of which the employee is eligible to be a member.

(5) Unused employer contributions for any government employee may be transferred to an account established for this purpose by a self-insured government and upon transfer may be used to offset losses occurring to the group of which the employee is eligible to be a member or to increase the reserves of the group.

(6) The laws prohibiting discrimination on the basis of marital status in Title 49 do not prohibit bona fide group insurance plans from providing greater or additional contributions for insurance benefits to employees with dependents than to employees without dependents or with fewer dependents."

NEW SECTION. Section 11. Appropriations. The following money for the indicated fiscal years is appropriated to the listed agencies to implement the adjustments provided for in [sections 1 through 10]:

Fiscal Year 2000	Fiscal Year 2001

General	Other	General	Other

Fund	Funds	Fund	Funds

Legislative Branch	106,820	25,563	256,094	60,984

Consumer Counsel	7,700	18,500

Judiciary	42,255	11,808	102,438	28,320

University System

2,711,658	1,160,385	5,880,749	2,765,221

Office of Budget and Program Planning:

for distribution to other agencies

3,060,987	5,236,444	7,385,909	12,412,723

NEW SECTION. Section 12. Effective dates. (1) [Sections 1 through 8, 10, and 11] are effective July 1, 1999.

(2) [Section 9] is effective April 1, 1999.

(3) [This section] is effective on passage and approval.

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