HOUSE BILL NO. 13
INTRODUCED BY R. RIPLEY
BY REQUEST OF THE DEPARTMENT OF ADMINISTRATION AND THE OFFICE OF BUDGET AND PROGRAM PLANNING
A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR PAY AND BENEFITS FOR STATE EMPLOYEES IN THE STATEWIDE, TEACHERS', AND BLUE-COLLAR PAY PLANS; INCREASING THE STATE CONTRIBUTION TO THE EMPLOYEE GROUP BENEFITS PROGRAM; REPEALING STATUTORY TEACHERS' AND BLUE-COLLAR PAY SCHEDULES; APPROPRIATING FUNDS TO IMPLEMENT PAY AND BENEFIT REVISIONS, FOR PERSONAL SERVICES CONTINGENCIES, AND FOR A LABOR-MANAGEMENT TRAINING INITIATIVE; AMENDING SECTIONS 2-18-301, 2-18-303, 2-18-312, AND 2-18-703, MCA; REPEALING SECTIONS 2-18-313 AND 2-18-315, 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 58th 59th 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 58th 59th 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 58th 59th 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 schedule provided in 2-18-312 must be implemented as follows:
(a) The pay schedule provided in 2-18-312 indicates 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 2004 2006, each employee is entitled to the amount of the employee's base salary as it was on June 30, 2003 2005.
(d) Effective on the first day of the first complete pay period that includes January 1, 2005 an employee's anniversary date during fiscal years ending June 30, 2006, and June 30, 2007, the base salary of each employee must be increased by an amount equal to 25 cents an hour 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). For employees hired on or before September 30, 2005, 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 schedule provided in 2-18-312 and the provisions of subsection subsections (1)(a) through (1)(d) 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 employees who are members of collective bargaining units that have collectively bargained separate classification and pay plans or employees covered under subsections (6) and (7) of this section.
(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 2004 and 2005.
(ii) The compensation of each teacher on July 1, 2003, is the same as it was on June 30, 2003.
(iii) Effective on the first day of the first complete pay period that includes January 1, 2005, the base salary of each teacher employed in the department of public health and human services and the department of corrections is the amount provided for the teacher's step and education level under 2-18-313(2). This subsection (3)(a)(iii) does not provide for a step advancement.
(b) The pay schedules provided in 2-18-315 indicate the maximum hourly compensation for fiscal years ending June 30, 2004, and June 30, 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)(3) (a) (i) If the legislature authorizes a pay increase for state employees, 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.
(ii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i) (3)(a)(i), is not completed by the date on which a legislatively authorized pay increase is implemented, retroactivity to that date may be negotiated.
(iii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i) (3)(a)(i), is not completed by the date on which a legislatively authorized pay increase is implemented, members of the bargaining unit must continue to receive the compensation that they were receiving 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)(4) 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)(5) 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)(6) (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)(7) 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)(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. 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 schedule. (1) The statewide classification pay schedule for the period beginning on the first day of the first full pay period in fiscal year 2004 2006 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
(2) The statewide classification pay schedule beginning the first pay period that includes October 1, 2005, is as follows:
GRADE ENTRY SALARY MARKET SALARY
1 9,994 11,757
2 10,766 12,694
3 11,595 13,707
4 12,495 14,806
5 13,503 16,036
6 14,664 17,459
7 15,920 18,995
8 17,342 20,740
9 18,870 22,625
10 20,567 24,719
11 22,426 27,018
12 24,492 29,577
13 26,745 32,379
14 29,249 35,493
15 32,018 38,950
16 35,112 42,824
17 38,583 47,169
18 42,220 51,739
19 46,294 56,871
20 50,844 62,644
21 55,892 69,003
22 61,533 76,154
23 67,897 84,242
24 75,046 93,341
25 82,954 103,432
(3) The statewide classification pay schedule beginning the first pay period that includes October 1, 2006, is as follows:
GRADE ENTRY SALARY MARKET SALARY
1 10,294 12,110
2 11,089 13,075
3 11,943 14,118
4 12,870 15,250
5 13,908 16,517
6 15,104 17,982
7 16,397 19,565
8 17,862 21,362
9 19,436 23,305
10 21,184 25,461
11 23,099 27,828
12 25,227 30,465
13 27,547 33,350
14 30,126 36,558
15 32,978 40,119
16 36,165 44,109
17 39,740 48,584
18 43,486 53,291
19 47,683 58,578
20 52,369 64,523
21 57,569 71,073
22 63,379 78,439
23 69,933 86,769
24 77,297 96,141
25 85,443 105,535"
Section 4. 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, and for employees of the Montana university system, the employer contribution for group benefits is $410 $460 a month for the period from July 2003 2005 through June 2004 December 2005, $506 a month for the period from January 2006 through December 2006, and $460 $557 a month for the period from July 2004 through June 2005 January 2007 and for each succeeding month. For employees of the Montana university system, the employer contribution for group benefits is $506 a month for the period from July 2005 through June 2006 and $557 a month for July 2006 and for each succeeding month. 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 the first day of the last fiscal year 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 5. Appropriation. (1) The following money for the indicated fiscal years is appropriated to the listed agencies to implement the adjustments provided for in [section 2]:
Fiscal Year 2006 Fiscal Year 2007
General Fund Other Funds General Fund Other Funds
Legislative Branch $ 177,219 $ 15,802 $ 444,838 $ 39,532
Consumer Council 10,254 25,342
Judicial Branch 520,470 18,381 1,303,340 45,957
Executive Branch 4,662,443 7,938,840 11,907,644 20,096,049
University System 3,360,580 108,790 7,592,508 241,249
Total $8,720,712 $8,092,067 $21,248,330 $20,448,129
(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 2006
General Fund Other Funds
Personal Services Contingency $1,500,000 $3,000,000
(3) The following money is appropriated for the biennium to the department of administration for a labor-management training initiative:
Fiscal Year 2006
General Fund Other Funds
Labor-Management Training Initiative $ 75,000
NEW SECTION. Section 6. Repealer. Sections 2-18-313 and 2-18-315, MCA, are repealed.
NEW SECTION. Section 7. Effective date. [This act] is effective July 1, 2005.
- END -
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