House Bill No. 13

Introduced By wiseman

By Request of the Governor



A Bill for an Act entitled: An Act directing the department of administration to develop an alternative compensation system for state employees to be presented to the 56th legislature; clarifying statutes governing certain salary and expense payments for elected officials; PROVIDING FOR IMPLEMENTATION OF THE LEGISLATIVE BRANCH PAY PLAN; providing pay adjustments for state employees in the statewide, teachers, and blue-collar pay plans; increasing the state contribution to the employee group benefit program; extending and revising the state employee incentive awards program; INCREASING THE SALARY OF THE COMMISSIONER OF POLITICAL PRACTICES; CLARIFYING THE BENEFITS TO WHICH THE COMMISSIONER OF POLITICAL PRACTICES IS ENTITLED; PROHIBITING THE REDUCTION OF THE SALARY OF THE COMMISSIONER OF POLITICAL PRACTICES DURING THE TERM TO WHICH THE COMMISSIONER IS APPOINTED; providing an appropriation to fund pay and benefit adjustments; amending sections 2-16-405, 2-18-103, 2-18-301, 2-18-303, 2-18-304, 2-18-312, 2-18-313, 2-18-315, 2-18-703, 2-18-1102, 2-18-1103, 2-18-1105, 2-18-1106, 5-2-301, and 13-37-106, MCA, and Section 13, Chapter 23, Special Laws of November 1993; repealing section 2-18-314, MCA; and providing an effective date.



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



Section 1.  Competency-based personnel systems. The department shall develop an alternative classification and pay system that is consistent with the market-based approach to pay administration but that emphasizes individual skills, competencies, and contributions in addition to the criteria provided in 2-18-202. The compensation system must provide for the means of identifying the requisite skills and competencies necessary for the state and its separate departments and agencies to provide service excellence to Montana's citizens. Each agency, when possible, shall implement the compensation plan in a manner that results in a flatter management structure. Employee recruitment, selection, evaluation, and compensation must be based, at least in part, on the demonstration of these necessary skills and competencies. The department shall develop the alternative system in consultation with employee representatives. The department shall test the effectiveness of the program through the implementation of pilot projects. Insofar as a pilot project applies to employees of a collective bargaining unit, its implementation is a negotiable subject under 39-31-305. The department shall present a proposal for an alternative system to the 56th legislature.



Section 2.  Section 2-16-405, MCA, is amended to read:

"2-16-405.   Salaries of certain elected state officials. (1) Subject to subsection (2), the salaries paid to certain elected officials of the state of Montana are:

(a)  Governor:,

(i)  $55,502;

(ii) $57,084 beginning July 1, 1995;

(iii) $59,310 beginning January 1, 1996.

(b)  Lieutenant governor:,

(i)  $40,466;

(ii) $41,619 beginning July 1, 1995;

(iii) $43,242 beginning January 1, 1996.

(c)  Attorney general:,

(i)  $50,841;

(ii) $52,290 beginning July 1, 1995;

(iii) $54,329 beginning January 1, 1996.

(d)  State auditor:,

(i)  $37,526;

(ii) $38,595 beginning July 1, 1995;

(iii) $40,101 beginning January 1, 1996.

(e)  Superintendent of public instruction:,

(i)  $44,177;

(ii) $45,436 beginning July 1, 1995;

(iii) $47,208 beginning January 1, 1996.

(f)  Public service commission presiding officer:,

(i)  $41,750;

(ii) $42,940 beginning July 1, 1995;

(iii) $44,615 beginning January 1, 1996.

(g)  Public service commissioners, other than presiding officer:,

(i)  $40,466;

(ii) $41,619 beginning July 1, 1995;

(iii) $43,242 beginning January 1, 1996.

(h)  Secretary of state:,

(i)  $37,526;

(ii) $38,595 beginning July 1, 1995;

(iii) $40,101 beginning January 1, 1996.

(i)  Clerk of the supreme court:,

(i)  $36,537;

(ii) $37,578 beginning July 1, 1995;

(iii) $39,044 beginning January 1, 1996.

(2)  Prior to June 30, 1996, and prior to Before June 30 of each even-numbered year thereafter, the department of administration shall conduct a salary survey of executive branch officials with similar titles to the Montana officials listed in subsection (1) for the states of North Dakota, South Dakota, Wyoming, and Idaho. The department shall include the salary for the Montana official in determining the average salary for the similar position officials with similar titles. If the average salary is greater than the salary for the similar position official in Montana, then beginning July 1, 1997, the average is the new salary for that position. In in each year following the year in which a survey is conducted, the average salary is the new salary for the position official."



Section 3.  Section 2-18-103, MCA, is amended to read:

"2-18-103.  Officers and employees excepted. (1) Parts 1 and 2 through 3 and 10 do not apply to the following positions officers and employees in state government:

(a)(1)  elected officials;

(b)(2)  county assessors and their chief deputy;

(c)(3)  employees of the office of consumer counsel;

(d)(4)  judges and employees of the judicial branch;

(e)(5)  members of boards and commissions appointed by the governor, the legislature, or other elected state officials;

(f)(6)  officers or members of the militia;

(g)(7)  agency heads appointed by the governor;

(h)(8)  academic and professional administrative personnel with individual contracts under the authority of the board of regents of higher education;

(i)(9)  academic and professional administrative personnel and live-in houseparents who have entered into individual contracts with the state school for the deaf and blind under the authority of the state board of public education;

(j)(10)  teachers under the authority of the department of corrections or the department of public health and human services;

(k)(11)  investment officer, assistant investment officer, executive director, and three professional staff positions of the board of investments;

(l)(12)  four professional staff positions under the board of oil and gas conservation;

(m)(13)  assistant director for security of the Montana state lottery;

(n)(14)  executive director and senior investment officer of the Montana board of science and technology development;

(o)(15)  executive director and employees of the state compensation insurance fund;

(p)(16)  state racing stewards employed by the executive secretary of the Montana board of horseracing;

(q)(17)  executive director of the Montana wheat and barley committee;

(r)(18)  commissioner of banking and financial institutions; and

(s)(19)  training coordinator for county attorneys.; and

(20) employees of an entity of the legislative branch consolidated, as provided in 5-2-504.

(2)  Employees of an entity of the legislative branch,other than the office of consumer counsel, are exempt from the application of 2-18-1011 through 2-18-1013. With respect to entities of the legislative branch, other than the office of consumer counsel:

(a)  as used in parts 1 through 3 of this chapter, references to the "department of administration" or "department" apply to the legislative council established by 5-11-101, which may delegate administrative duties to the legislative services division established by 5-11-111;

(b)  as used in 2-18-102, the term "governor" applies to the legislature; and

(c)  as used in 2-18-204, the term "budget director" applies to the "approving authority" as defined in 17-7-102."



Section 4.  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 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, through and 2-18-315 supersede any other plan or systems established through collective bargaining after the adjournment of the 54th 55th legislature.

(4)  Pay levels provided for in 2-18-312, 2-18-313, through and 2-18-315 may not be increased through collective bargaining after adjournment of the 54th 55th legislature.

(5)  Total funds required to implement the pay schedules provided for in 2-18-312, 2-18-313, through and 2-18-315 for any employee group or bargaining unit may not be increased through collective bargaining over the amount appropriated by the 54th 55th 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 5.  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 1998, 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 1997, 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 1998, and June 30, 1997 1999, 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: The matrix for the target market ratios is as follows:

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 (iii) On the first day of the pay period that includes an employee's anniversary date during the fiscal year years ending June 30, 1996 1998, and June 30, 1999, 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 greater 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 not to exceed 4%; or

(B) if under subsection (1)(d)(iii)(A), progression from one target market ratio to the next exceeds 3%, then the employee's base salary increased by the amount of that progression plus 1%; or

(B)(C)  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 the employee's anniversary date, plus 5% 1%.

(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)(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.

(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 compensated under the pay schedules provided in 2-18-313 through and 2-18-315.

(3)  The pay schedules provided in 2-18-313 through 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 1996 and 1997 1998 and 1999.

(ii) The compensation of each teacher on July 1, 1995 1997, is the same as it was on June 30, 1995 1997.

(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 or the department of corrections prior to before 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)(b)  (i) The pay schedules provided in 2-18-315 indicate the maximum hourly compensation for fiscal years ending June 30, 1996 1998, and June 30, 1997 1999, 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 1996 or 1997 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, 1997 1999.

(ii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i), is not completed by July 1, 1995 1997, 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 1997, members of the bargaining unit must continue to receive the compensation that they were receiving as of June 30, 1995 1997, 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 2-18-313, 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, through 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 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 6.  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 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 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."



Section 7.  Section 2-18-312, MCA, is amended to read:

"2-18-312.   Statewide pay schedules for fiscal years 1996 1998 and 1997 1999. (1) The statewide classification pay schedule for the period from July 1, 1995, until beginning on the first day of the first full pay period that includes October 1, 1996 in fiscal year 1998, 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   8,679 10,210

2   9,349 11,025

3 10,070 11,903

4 10,852 12,858

5 11,727 13,927

6 12,672 15,086

7 13,688 16,334

8 14,836 17,747

9 16,064 19,262

10 17,424 20,942

11 18,904 22,775

12 20,545 24,812

13 22,325 27,027

14 24,295 29,485

15 26,465 32,196

16 28,885 35,226

17 31,585 38,613

18 34,562 42,355

19 37,897 46,557

20 41,618 51,254

21 45,754 56,487

22 50,373 62,343

23 55,584 68,963

24 61,434 76,410

25 67,907 84,673

1 8,986 10,571

2 9,679 11,413

3 10,424 12,323

4 11,234 13,312

5 12,140 14,419

6 13,118 15,618

7 14,171 16,910

8 15,360 18,372

9 16,630 19,941

10 18,039 21,680

11 19,570 23,578

12 21,269 25,687

13 23,112 27,980

14 25,151 30,523

15 27,399 33,331

16 29,903 36,469

17 32,698 39,974

18 35,779 43,848

19 39,233 48,198

20 43,086 53,060

21 47,367 58,478

22 52,149 64,541

23 57,543 71,393

24 63,601 79,104

25 70,302 87,657

(2)  Effective on the first day of the first full pay period that includes October 1, 1996 in fiscal year 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 8,897 10,466

2 9,583 11,300

3 10,321 12,201

4 11,123 13,180

5 12,020 14,276

6 12,988 15,463

7 14,031 16,743

8 15,208 18,190

9 16,465 19,744

10 17,860 21,465

11 19,376 23,345

12 21,058 25,433

13 22,883 27,703

14 24,902 30,221

15 27,128 33,001

16 29,607 36,108

17 32,374 39,578

18 35,425 43,414

19 38,845 47,721

20 42,659 52,535

21 46,898 57,899

22 51,633 63,902

23 56,973 70,686

24 62,971 78,321

25 69,606 86,789

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"



Section 8.  Section 2-18-313, MCA, is amended to read:

"2-18-313.   Teachers' pay schedules. (1) The pay schedule for teachers for the period that includes October 1, 1995 1997, until the first day of the pay period that includes October 1, 1996 1998, 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 23,150 23,763 24,393 25,040 25,703 26,384

2 23,752 24,381 25,027 25,691 26,371 27,070

3 24,369 25,015 25,678 26,359 27,057 27,774

4 25,003 25,666 26,346 27,044 27,761 28,496

5 25,653 26,333 27,031 27,747 28,482 29,237

6 26,320 27,018 27,734 28,469 29,223 29,997

7 27,004 27,720 28,455 29,209 29,983 30,777

8 27,707 28,441 29,194 29,968 30,762 31,577

9 28,427 29,180 29,954 30,747 31,562 32,398

10 29,166 29,939 30,732 31,547 32,383 33,241

11 29,924 30,717 31,531 32,367 33,225 34,105

12 30,702 31,516 32,351 33,208 34,088 34,992

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

(2)  Effective on the first day of the pay period that includes October 1, 1996 1998, the pay schedule for teachers 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 9.  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, 1995 1997, through September 29, 1995 until the first day of the pay period that includes October 1997, is as follows:

Annual Hours -- 2080 Note: Does Not Include Insurance

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

Grade $/Hour

B1 9.266

B2 9.666

B3 10.066

B4 10.466

B5 10.866

B6 11.266

B7 11.666

B8 12.066

B9 12.466

B10 12.866

B11 13.266

B12 13.666

B00 14.066

B1 9.995

B2 10.395

B3 10.795

B4 11.195

B5 11.595

B6 11.995

B7 12.395

B8 12.795

B9 13.195

B10 13.595

B11 13.995

B12 14.395

B00 14.795

(2)  Effective September 30, 1995, on the first day of the pay period that includes October 1, 1997, until the first day of the pay period that includes October 1996 1998, 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 9.561

B2 9.961

B3 10.361

B4 10.761

B5 11.161

B6 11.561

B7 11.961

B8 12.361

B9 12.761

B10 13.161

B11 13.561

B12 13.961

B00 14.361

B1 10.245

B2 10.645

B3 11.045

B4 11.445

B5 11.845

B6 12.245

B7 12.645

B8 13.045

B9 13.445

B10 13.845

B11 14.245

B12 14.645

B00 15.045

(3)  Effective on the first day of the pay period that includes October 1, 1996 1998, 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 9.995 10.515

B2 10.395 10.915

B3 10.795 11.315

B4 11.195 11.715

B5 11.595 12.115

B6 11.995 12.515

B7 12.395 12.915

B8 12.795 13.315

B9 13.195 13.715

B10 13.595 14.115

B11 13.995 14.515

B12 14.395 14.915

B00 14.795 15.315"



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 $220 $245 per month for the fiscal year ending June 30, 1996 1998, and $225 $270 a month for the fiscal year ending June 30, 1997 1999, and for each succeeding fiscal year thereafter. 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."



Section 11.  Section 2-18-1102, MCA, is amended to read:

"2-18-1102.   (Temporary) Creation of program. The department shall develop and administer a statewide employee incentive award program to appropriately recognize and monetarily reward individual state employees and groups or teams of employees for documented achievements and outcomes innovations that contribute to the efficiency, economy, or other improvement of state government by reducing the costs or improving the effectiveness of governmental operations. (Terminates July 1, 1997--sec. 13, Ch. 23, Sp. L. November 1993.)

2-18-1102.   (Effective July 1, 1997) Creation of program. The department shall develop and administer a statewide employee incentive award program to appropriately recognize and monetarily reward state employees in a timely manner for suggestions or inventions that contribute to the efficiency, economy, or other improvement of state government by reducing the costs of governmental operations."



Section 12.  Section 2-18-1103, MCA, is amended to read:

"2-18-1103.   (Temporary) Powers and duties of department. The department shall:

(1)  adopt rules to implement this part;

(2)  provide an opportunity for all employees to participate in the program develop model guidelines and promotional materials to assist agencies in implementing this part; and

(3)  assist agencies in making incentive awards under this part; and

(4)(3)  prepare and submit, in the manner provided in 5-11-210, a list of incentive awards granted under 2-18-1106 and the corresponding savings to the state and improvements in the effectiveness of state government and shall provide a general review of and recommendations for improving the operation of this part. (Terminates July 1, 1997--sec. 13, Ch. 23, Sp. L. November 1993.)

2-18-1103.   (Effective July 1, 1997) Powers and duties of the department. The department shall:

(1)  adopt rules to equitably administer the employee incentive award program;

(2)  provide an opportunity for all employees to participate in the program;

(3)  assist agencies in making incentive awards under the program;

(4)  grant or deny incentive awards in consultation with the incentive awards advisory council and determine the amount of each incentive award based on first-year monetary savings;

(5)  hear appeals from employees on the operation of the program;

(6)  prepare and submit, as a part of the information required by 17-7-111, a list of incentive awards and the corresponding savings to the state resulting from each employee's suggestion or invention and providing a general review of and recommendations for improving the program; and

(7)  send a copy of all suggestions or inventions submitted under this program to the office of the legislative fiscal analyst."



Section 13.  Section 2-18-1105, MCA, is amended to read:

"2-18-1105.   (Temporary) Eligibility for award. (1) Except as provided in subsection (2) (3), an employee, a group or team of employees, or a nonemployee is eligible for an incentive award for innovations that:

(a)  for efforts that significantly contribute to documented achievements or outcomes eliminating or reducing an agency's expenditures; or

(b)  for improving improve the effectiveness of state government or improving improve services to the public by permitting more work to be accomplished within an agency without increasing the cost of governmental operations.

(2)  (a) An To be eligible for an incentive award, an employee, a group or team of employees, or a nonemployee is not eligible for an individual incentive award unless the employee's or nonemployee's documented achievement or outcome was accomplished without significant contributions from others. must receive approval from agency management for immediate implementation, for a short-term test of an idea or innovation, or for the development and testing of a prototype that could make significant improvement in the way an agency conducts business by addressing fiscal, customer service, efficiency, or safety issues.

(b)(3)  A director, as defined in 2-15-102, or a legislator is not eligible for the incentive award provided for under this part.

(3)(4)  Suggestions relating to an agency are eligible for an award from that agency's agency head even if the employee or group or team of employees, or one or more members of the group or team, do not work for that agency. (Terminates July 1, 1997--sec. 13, Ch. 23, Sp. L. November 1993.)

2-18-1105.   (Effective July 1, 1997) Eligibility for award. (1) Except as provided in subsection (2), an employee may be eligible for an incentive award if his the employee's suggestion or invention results in:

(a)  eliminating or reducing an agency's expenditures; or

(b)  improving services to the public by permitting more work to be accomplished within an agency without increasing the cost of governmental operations.

(2)  (a) An employee may not be eligible for an incentive award if his the employee's suggestion or invention directly relates to his the employee's assigned duties and responsibilities unless the proposal is so superior or meritorious as to warrant special recognition as determined by the department.

(b)  Suggestions or inventions relating to the following matters may not be considered for awards:

(i)  personnel grievances;

(ii) classification and pay of positions;

(iii) matters recommended for study or review; and

(iv) proposals resulting from assigned or contracted audits, studies, surveys, reviews, or research."



Section 14.  Section 2-18-1106, MCA, is amended to read:

"2-18-1106.   (Temporary) Agency head to grant award -- amount and source of award. (1) An agency head may grant an incentive award to an employee, a group or team of employees, or a nonemployee who has made a significant contribution to achievements or outcomes in the agency, as enumerated in 2-18-1105. An employee or a member of a group or team of employees need not be employed by the agency that benefits from the achievement or outcome and whose agency head grants the award in order to be granted an award.

(2)  The incentive award for an achievement or outcome that does not result in cost savings that can be specifically determined a year after the achievement or outcome is implemented and the cost savings are actually incurred is the agency head's estimated dollar value of the achievement or outcome, up to a maximum of $500 per employee or nonemployee or, in the discretion of the agency head, not more than 40 hours of paid leave time for an employee. Larger awards may be proposed and submitted to the legislature for consideration. If agency management determines that an idea, innovation, or prototype that has been implemented will result in cost savings or improvements to agency operations, the agency head, at the agency head's discretion, may grant an incentive award of up to $500, up to 40 hours paid leave time, or other nonmonetary recognition.

(3)  The amount of an award for If an achievement or outcome producing produces cost savings that can be measured after the savings are actually incurred realized or that can be accurately projected for a period of 12 months following implementation, a larger award may be granted by the agency head. The amount of the award must be determined by the agency head but may not exceed:

(a)  10% of the first $100,000 of cost savings actually incurred realized or accurately projected during the 12 months following implementation of the suggestion; plus

(b)  5% of the next $100,000 of cost savings actually incurred realized or accurately projected during that 12-month period; plus

(c)  2% of the next $100,000 of cost savings actually incurred realized or accurately projected during that 12-month period.

(4)  (a) If the award is to be divided between two or more persons, the agency head shall determine the amount each person is to receive.

(b)  Each person must be paid in one lump sum no later than 90 days after the end of the 12-month period following implementation of the suggestion. However, an agency head may pay an award at any time that savings can be determined. The agency head shall pay the award from the agency's budget. This award is in addition to the recipient's regular compensation or leave time.

(5)  The number of awards granted by an agency in a state government fiscal year may not exceed the number equal to 20% of the average number of full-time equivalent employees in that agency during that fiscal year. The office of budget and program planning may grant an agency with less that 50 full-time equivalent employees an exemption from this limitation, but the exemption may not allow more awards than the number equal to 50% of the average number of full-time equivalent employees in the agency during the fiscal year.

(6)(5)  Within 30 days after the end of each fiscal year, each agency shall submit to the department a list of the number of incentive awards granted, to whom each award was granted, the estimated value of each achievement or outcome, and the amount of each award. (Terminates July 1, 1997--sec. 13, Ch. 23, Sp. L. November 1993.)

2-18-1106.   (Effective July 1, 1997) Agency head to grant award -- amount and source of award. (1) After an agency implements an employee's suggestion or invention and the monetary savings to the state is estimated, an agency head, upon written application to and approval from the department and the incentive awards advisory council, may grant an incentive award to an employee whose proposal meets the requirements enumerated in 2-18-1105.

(2)  The incentive award shall must be 10% of the savings resulting from implementing the employee's proposal for 1 year up to a maximum of $3,000. Larger awards may be proposed and submitted to the legislature for consideration.

(3)  The agency head shall pay the employee from the agency's budget in a single, lump-sum award. This award is in addition to the recipient's regular compensation."



Section 15.  Section 5-2-301, MCA, is amended to read:

"5-2-301.   Compensation and expenses for members while in session. (1) Except as provided in subsection (8), legislators are entitled to a salary commensurate to that of the daily rate of an entry grade 8 classified state employee in effect when the regular session of the legislature in which they serve is convened under 5-2-103 for those days during which the legislature is in session. The president of the senate and the speaker of the house shall receive an additional $5 a day in salary for those days during which the legislature is in session.

(2)  Legislators may serve for no salary.

(3)  Subject to subsection (4), legislators are entitled to $50 a day a daily allowance, 7 days a week, during a legislative session, as reimbursement for expenses incurred in attending a session. Expense payments must stop when the legislature recesses for more than 3 days and resume when the legislature reconvenes.

(4)  After November 15, 1996, and prior to December 15, 1996, and prior to December 15 of each even-numbered year thereafter, the department of administration shall conduct a survey of the allowance for daily expenses of legislators for the states of North Dakota, South Dakota, Wyoming, and Idaho. The department shall include the average daily expense allowance for Montana legislators in determining the average daily rate for legislators. The department shall include only states with specific daily allowances in the calculation of the average. If the average daily rate is greater than the daily rate for legislators in Montana, the average is the new daily rate for legislators for those days during which the legislature is in session. The expense allowance is effective when the next regular session of the legislature in which the legislators serve is convened under 5-2-103.

(5)  Legislators are entitled to a mileage allowance as provided in 2-18-503 for each mile of travel to the place of the holding of the session and to return to their place of residence at the conclusion of the session.

(6)  In addition to the mileage allowance provided for in subsection (5), legislators, upon submittal of an appropriate claim for mileage reimbursement to the legislative services division, are entitled to:

(a)  three additional round trips to their place of residence during each regular session; and

(b)  additional round trips as authorized by the legislature during special session.

(7)  Legislators are not entitled to any additional mileage allowance under subsection (5) for a special session if it is convened within 7 days of a regular session.

(8)  In lieu of the salary provided for in subsection (1) and the expense allowance provided for in subsection (4), a legislator may receive remuneration for services performed during a legislative session. A legislator choosing to receive remuneration for services performed shall file a request to receive payment under this subsection with the legislative services division. A legislator exercising the option to receive remuneration for services performed may not receive more remuneration than legislators paid pursuant to subsections (1) and (4). Remuneration for services performed must be reduced $50 by an amount a day equal to the daily expense allowance for a legislator established under this section when the legislature recesses for more than 3 days."



Section 16.  Section 13-37-106, MCA, is amended to read:

"13-37-106.   Salary. (1) The commissioner of political practices is entitled to receive a salary of $30,303 in fiscal year 1992 and $31,551 in fiscal year 1993 and thereafter of $31,551 and beginning October 1, 1997, is entitled to receive a salary equal to the market salary of a grade 18 classified employee as provided in 2-18-312.

(2) The commissioner is also entitled to longevity, expense reimbursement, leave, insurance, and other benefits provided to classified state employees under Title 2, chapter 18.

(3) The salary of the commissioner may not be reduced during the term for which the commissioner is appointed."



Section 17. Section 13, Chapter 23, Special Laws of November 1993, is amended to read:

"Section 13. Termination. [This act] [Section 8] terminates July 1, 1997."



Section 18.  Repealer. Section 2-18-314, MCA, is repealed.



Section 19.  Appropriation. The following money is appropriated for the fiscal years indicated to implement the adjustments provided for in [sections 2 through 14]:

Fiscal Year 1998 Fiscal Year 1999

General Other General Other

Fund Funds Fund Funds

Legislative Branch 71,771 33,124 165,275 56,429

Consumer Counsel 0 5,780 0 11,950

Judiciary 98,361 13,348 205,426 27,843

University System 1,874,008 1,338,057 3,901,345 2,790,164

Office of Budget and

Program Planning for

distribution to all

other agencies 2,652,778 5,149,180 5,718,261 10,836,498



Section 20.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 2, chapter 18, and the provisions of Title 2, chapter 18, apply to [section 1].



Section 21.  Effective date. [This act] is effective July 1, 1997.

-END-