HOUSE BILL NO. 461
INTRODUCED BY D. GALLIK
A BILL FOR AN ACT ENTITLED: "AN ACT INCREASING THE PAY SCHEDULES FOR STATE EMPLOYEES IN THE STATEWIDE, TEACHERS', AND BLUE-COLLAR PAY PLANS; INCREASING THE STATE CONTRIBUTION TO THE EMPLOYEE GROUP BENEFITS PROGRAM; PROVIDING FLEXIBILITY FOR IMPLEMENTING PAY SCHEDULES; APPROPRIATING FUNDS TO IMPLEMENT BENEFIT REVISIONS AND CONTINGENCIES; AMENDING SECTIONS 2-18-301, 2-18-303, 2-18-312, 2-18-313, 2-18-315, AND 2-18-703, MCA; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. 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 57th 58th 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 57th 58th 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 57th 58th 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 2. 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) through (9).
(c) On the first day of the first complete pay period in fiscal year 2002 2004, each employee is entitled to the amount of the employee's base salary as it was on June 30, 2001 2003.
(d) Effective on the first day of the pay period that includes an employee's anniversary date during the fiscal years ending June 30, 2002 2004, and June 30, 2003 2005, the employee's base salary must be increased by 4% 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 4% 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 2002 2004 and 2003 2005.
(ii) The compensation of each teacher on July 1, 2001 2003, is the same as it was on June 30, 2001 2003.
(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 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.
(b) The pay schedules provided in 2-18-315 indicate the maximum hourly compensation for fiscal years ending June 30, 2002 2004, and June 30, 2003 2005, 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.
(c) 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, 2003 2005.
(ii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i), is not completed by July 1, 2001 2003, 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, 2001 2003, members of the bargaining unit must continue to receive the compensation that they were receiving as of June 30, 2001 2003, 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 classes of medical professionals if the rates provided in 2-18-312 are not sufficient to attract and retain fully licensed and qualified professionals.
(7) (a) The department may develop and implement an alternative pay and classification plan 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) To the extent that the plan applies to employees within a collective bargaining unit, the implementation of the plan is a negotiable subject under 39-31-305.
(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 3. 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 2002 2004, 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
1 9,703 11,415
2 10,452 12,324
3 11,257 13,308
4 12,131 14,375
5 13,110 15,569
6 14,237 16,950
7 15,456 18,442
8 16,837 20,136
9 18,320 21,967
10 19,968 23,999
11 21,773 26,231
12 23,779 28,716
13 25,966 31,436
14 28,397 34,459
15 31,085 37,816
16 34,089 41,577
17 37,459 45,795
18 40,990 50,232
19 44,946 55,215
20 49,363 60,819
21 54,264 66,993
22 59,741 73,936
23 65,919 81,788
24 72,860 90,622
25 80,538 100,419
(2) Effective on the first day of the pay period that includes October 1, 2001 2003, 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 9,384 11,040
2 10,108 11,919
3 10,887 12,870
4 11,732 13,902
5 12,679 15,057
6 13,769 16,393
7 14,948 17,835
8 16,283 19,474
9 17,718 21,245
10 19,311 23,210
11 21,057 25,368
12 22,997 27,772
13 25,112 30,403
14 27,463 33,326
15 30,063 36,573
16 32,968 40,210
17 36,227 44,289
18 39,643 48,580
19 43,468 53,400
20 47,740 58,819
21 52,480 64,790
22 57,777 71,505
23 63,751 79,099
24 70,464 87,642
25 77,890 97,117
1 10,091 11,872
2 10,870 12,817
3 11,707 13,840
4 12,616 14,950
5 13,634 16,192
6 14,806 17,628
7 16,074 19,180
8 17,510 20,941
9 19,053 22,846
10 20,767 24,959
11 22,644 27,280
12 24,730 29,865
13 27,005 32,693
14 29,533 35,837
15 32,328 39,329
16 35,453 43,240
17 38,957 47,627
18 42,630 52,241
19 46,744 57,424
20 51,338 63,252
21 56,435 69,673
22 62,131 76,893
23 68,556 85,060
24 75,774 94,247
25 83,760 104,436
(3) Effective on the first day of the pay period that includes October 1, 2002 2004, 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 9,703 11,415
2 10,452 12,324
3 11,257 13,308
4 12,131 14,375
5 13,110 15,569
6 14,237 16,950
7 15,456 18,442
8 16,837 20,136
9 18,320 21,967
10 19,968 23,999
11 21,773 26,231
12 23,779 28,716
13 25,966 31,436
14 28,397 34,459
15 31,085 37,816
16 34,089 41,577
17 37,459 45,795
18 40,990 50,232
19 44,946 55,215
20 49,363 60,819
21 54,264 66,993
22 59,741 73,936
23 65,919 81,788
24 72,860 90,622
25 80,538 100,419
1 10,495 12,346
2 11,305 13,330
3 12,176 14,394
4 13,121 15,548
5 14,180 16,839
6 15,399 18,333
7 16,717 19,947
8 18,211 21,779
9 19,815 23,760
10 21,597 25,957
11 23,550 28,371
12 25,719 31,059
13 28,085 34,001
14 30,714 37,271
15 33,622 40,902
16 36,871 44,970
17 40,516 49,532
18 44,335 54,331
19 48,614 59,721
20 53,391 65,782
21 58,692 72,460
22 64,616 79,969
23 71,298 88,462
24 78,805 98,017
25 87,110 108,613"
Section 4. 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, 2001 2003, until the first day of the pay period that includes October 1, 2002 2004, is as follows:
Annual Hours -- 2080 Note: Does Not Include Insurance
Term -- Twelve Months Matrix Type -- Annual
Education Level
STEP BA BA+15 BA+30 BA+45 BA+60 BA+75
1 26,085 26,867 27,673 28,503 29,359 30,239
2 26,867 27,673 28,503 29,358 30,239 31,147
3 27,673 28,503 29,358 30,239 31,147 32,082
4 28,503 29,358 30,239 31,147 32,082 33,044
5 29,358 30,239 31,147 32,082 33,044 34,035
6 30,239 31,147 32,082 33,044 34,035 35,056
7 31,147 32,082 33,044 34,035 35,056 36,108
8 32,082 33,044 34,035 35,056 36,108 37,191
9 33,044 34,035 35,056 36,108 37,191 38,307
10 34,035 35,056 36,108 37,191 38,307 39,457
11 35,056 36,108 37,191 38,307 39,457 40,640
12 36,108 37,191 38,307 39,457 40,640 41,858
13 37,191 38,307 39,457 40,640 41,858 43,114
1 28,214 29,060 29,931 30,829 31,753 32,707
2 29,060 29,931 30,829 31,753 32,707 33,689
3 29,931 30,829 31,753 32,707 33,689 34,700
4 30,829 31,753 32,707 33,689 34,700 35,741
5 31,753 32,707 33,689 34,700 35,741 36,812
6 32,707 33,689 34,700 35,741 36,812 37,917
7 33,689 34,700 35,741 36,812 37,917 39,054
8 34,700 35,741 36,812 37,917 39,054 40,226
9 35,741 36,812 37,917 39,054 40,226 41,434
10 36,812 37,917 39,054 40,226 41,434 42,676
11 37,917 39,054 40,226 41,434 42,676 43,957
12 39,054 40,226 41,434 42,676 43,957 45,273
13 40,226 41,434 42,676 43,957 45,273 46,633
(2) Effective on the first day of the pay period that includes October 1, 2002 2004, 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+15 BA+30 BA+45 BA+60 BA+75
1 27,129 27,942 28,780 29,643 30,532 31,449
2 27,942 28,780 29,643 30,532 31,449 32,393
3 28,780 29,643 30,532 31,449 32,393 33,365
4 29,643 30,532 31,449 32,393 33,365 34,366
5 30,532 31,449 32,393 33,365 34,366 35,396
6 31,449 32,393 33,365 34,366 35,396 36,459
7 32,393 33,365 34,366 35,396 36,459 37,552
8 33,365 34,366 35,396 36,459 37,552 38,679
9 34,366 35,396 36,459 37,552 38,679 39,840
10 35,396 36,459 37,552 38,679 39,840 41,035
11 36,459 37,552 38,679 39,840 41,035 42,266
12 37,552 38,679 39,840 41,035 42,266 43,532
13 38,679 39,840 41,035 42,266 43,532 44,839
1 29,343 30,222 31,128 32,062 33,023 34,015
2 30,222 31,128 32,062 33,023 34,015 35,036
3 31,128 32,062 33,023 34,015 35,036 36,088
4 32,062 33,023 34,015 35,036 36,088 37,170
5 33,023 34,015 35,036 36,088 37,170 38,284
6 34,015 35,036 36,088 37,170 38,284 39,434
7 35,036 36,088 37,170 38,284 39,434 40,616
8 36,088 37,170 38,284 39,434 40,616 41,835
9 37,170 38,284 39,434 40,616 41,835 43,091
10 38,284 39,434 40,616 41,835 43,091 44,383
11 39,434 40,616 41,835 43,091 44,383 45,715
12 40,616 41,835 43,091 44,383 45,715 47,084
13 41,835 43,091 44,383 45,715 47,084 48,498"
Section 5. 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, 2001 2003, until the first day of the pay period that includes October 2001 2003 is as follows:
Annual Hours -- 2080 Note: Does Not Include Insurance
Pay Matrix -- Blue-Collar Matrix Type -- Hourly
Grade $/Hour
B1 11.275 12.395
B2 11.675 12.795
B3 12.075 13.195
B4 12.475 13.595
B5 12.875 13.995
B6 13.275 14.395
B7 13.675 14.795
B8 14.075 15.195
B9 14.475 15.595
B10 14.875 15.995
B11 15.275 16.395
B12 15.675 16.795
B13 16.075 17.195
B14 16.475 17.595
(2) Effective on the first day of the pay period that includes October 1, 2001 2003, until the first day of the pay period that includes October 2002 2004, 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 11.835 13.015
B2 12.235 13.415
B3 12.635 13.815
B4 13.035 14.215
B5 13.435 14.615
B6 13.835 15.015
B7 14.235 15.415
B8 14.635 15.815
B9 15.035 16.215
B10 15.435 16.615
B11 15.835 17.015
B12 16.235 17.415
B13 16.635 17.815
B14 17.035 18.215
(3) Effective on the first day of the pay period that includes October 1, 2002 2004, 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 12.395 13.635
B2 12.795 14.035
B3 13.195 14.435
B4 13.595 14.835
B5 13.995 15.235
B6 14.395 15.635
B7 14.795 16.035
B8 15.195 16.435
B9 15.595 16.835
B10 15.995 17.235
B11 16.395 17.635
B12 16.795 18.035
B13 17.195 18.435
B14 17.595 18.835"
Section 6. Section 2-18-703, MCA, is amended to read:
"2-18-703. Contributions. (1) Each agency, as defined in 2-18-601, and the state compensation insurance fund shall contribute the amount specified in this section toward 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 $295 $366 a month for the period from July 2001 2003 through December 2001 2003, $325 $410 a month for the period from January 2002 2004 through December 2002 2004, and $366 $460 a month for January 2003 2005 and for each succeeding month. For employees of the Montana university system, the employer contribution for group benefits is $325 $410 a month for the period from July 2001 2003 through June 2002 2004 and $366 $460 a month for the period from July 2002 2004 through June 2003 2005 and for each succeeding month. When If 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. Subject to the public hearing requirement provided in 2-9-212(2)(b), the increase in a local government's property tax levy for premium contributions for group benefits beyond the amount of contributions in effect on July 1, 1999, is not subject to the mill levy calculation limitation provided for in 15-10-420.
(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 7. Appropriations. (1) The following money for the indicated fiscal years is appropriated to the listed agencies to implement the adjustments provided for in 2-18-703:
Fiscal Year 2004 Fiscal Year 2005
General Other General Other
Fund Funds Fund 60; Funds
Legislative Branch 24,969 6,399 81,583 20,908
Consumer Counsel 0 1,277 0 4,006
Judicial Branch 85,726 12,247 268,867 38,410
Executive Branch 1,042,381 1,926,519 3,263,472 6,015,663
University System 1,087,384 1,182,729 2,323,048 2,526,739
(2) The following money is appropriated for the biennium to the office of budget and program planning to be distributed to agencies when personnel vacancies do not occur, retirement costs exceed agency resources, or other contingencies arise:
Fiscal Year 2004
General Fund Other Funds
Personal Services Contingency 1,500,000 3,000,000
(3) The funding for the pay schedules is contained in House Bill No. 2. Each agency listed in subsection (1) shall determine how to fund the pay schedule increases within the House Bill No. 2 appropriations for fiscal year 2004 and fiscal year 2005.
NEW SECTION. Section 8. Effective date. [This act] is effective July 1, 2003.
NEW SECTION. Section 9. Coordination instruction. If both House Bill No. 13 and [this act] are passed and approved, then House Bill No. 13 is void.
- END -
Latest Version of HB 461 (HB0461.01)
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