A BILL TO BE ENTITLED
AN ACT establishing a minimum fair wage for state employees subject to the state personnel act; creating the state government fair pay study commission; and appropriating funds for these purposes.
Whereas, female employees comprise 48.9% of the total State workforce subject to the State Personnel Act but comprise 71.5% of the low wage occupations that fall in pay grades 50‑59; and
Whereas, it is the intent of the General Assembly that employees receive a fair wage and a livable minimum wage for State government employment; and
Whereas, employees earning less than $20,112 fall into the lowest pay grades and are likely to qualify for Food Stamps, NC Health Choice, and possibly other public assistance; and
Whereas, the General Assembly provides the incremental increase in this act to move these employees closer to a living wage; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.(a)  It is the intent of the General Assembly that employees receive a fair minimum wage for State government employment.
SECTION 1.(b)  All permanent, full‑time employees subject to the State Personnel Act shall be paid a minimum salary of at least twenty thousand one hundred twelve dollars ($20,112) per year. All permanent, full‑time employees subject to the State Personnel Act working on a schedule requiring less than 12‑months service per year shall be paid a minimum salary equal to the ratio of the number of months of the required work schedule to 12 times twenty thousand one hundred‑twelve dollars ($20,112).
SECTION 1.(c)  There is appropriated from the General Fund to the Reserve for State Employee Minimum Wage the sum of six hundred seventy‑five thousand dollars ($675,000) for the 2005‑2006 fiscal year and the sum of six hundred seventy‑five thousand dollars ($675,000) for the 2006‑2007 fiscal year to provide a fairer minimum wage to employees subject to the State Personnel Act.
SECTION 1.(d)  In order to lessen salary compression and potential pay inequities, State agencies, departments, and institutions, and The University of North Carolina may, when increasing salaries pursuant to this section, make adjustments to the salaries of supervisors and other employees who have, when considering classification, significantly more experience and length of service compared to the employees receiving this pay increase. The Office of State Budget and Management may authorize funds for this purpose in a total amount not to exceed seven hundred fifty thousand dollars ($750,000) for the 2005‑2007 fiscal biennium.
SECTION 2.(a)  There is created the State Government Fair Pay Study Commission ("Commission"). The Commission shall consist of 15 members appointed as follows:
(1)	Five members appointed by the Governor, to include:
a.	One person who represents an organization whose primary purpose is to represent the interests of women.
b.	One representative of an organization whose objectives include the elimination of pay disparities between men and women and who has undertaken advocacy, educational, or legislative initiatives in pursuit of that objective.
c.	One representative of a higher education or research institution who has experience and expertise in the collection and analysis of data concerning pay disparities and whose research has been used in efforts to promote the elimination of those disparities.
d.	One person who is an active State employee.
e.	One person who is a retired State employee.
(2)	Five members appointed by the Speaker of the House of Representatives, to include:
a.	Four members of the House of Representatives.
b.	One person with human resources background and experience from a private business or firm employing 200 or more employees in this State.
(3)	Five members appointed by the President Pro Tempore of the Senate, to include:
a.	Four members of the Senate.
b.	One person with human resources background and experience from a private business or firm employing fewer than 200 employees in this State.
SECTION 2.(b)  The Commission shall study:
(1)	Whether the minimum annual salary for State employees is a livable salary and the impact of inflationary forces on that salary.
(2)	Whether there is fair pay for equivalent jobs in State government, including the extent of wage disparities in State government employment between men and women. 
(3)	The relationship between in‑range adjustments and pay disparities and how in‑range adjustments could be used to alleviate gender‑related pay disparities. 
(4)	The factors that cause or tend to increase pay disparities, including segregation between women and men across and within occupations and payment of lower wages for work in female‑dominated occupations.
(5)	The extent to which dissimilar State government job categories requiring similar education, training, skills, and responsibilities are being compensated with equal pay.
(6)	The consequences of the disparities on the efficiency of State government, the State's economy, and the families affected.
(7)	Actions, including proposed legislation, that are likely to lead to the elimination and prevention of compensation disparities in State government employment. In particular, the Commission shall propose the initial job classifications that should be targeted for remedial action and recommend the amount of funding required for the remediation efforts targeting those jobs.
(8)	Any other matters relating to pay disparities in State government employment.
The Commission may consider any other matter that the Commission finds relevant to its charge. The Commission may conduct public hearings around the State to solicit firsthand testimony regarding pay equity issues.
SECTION 2.(c)  The Speaker of the House of Representatives and the President Pro Tempore of the Senate shall each appoint a cochair for the Commission. The Commission may contract for consultant services as provided by G.S. 120‑32.02. Upon approval of the Legislative Services Commission, the Legislative Services Officer shall assign professional and clerical staff to assist in the work of the Commission. Clerical staff shall be furnished to the Commission through the offices of the House of Representatives and the Senate Directors of Legislative Assistants. The Commission may meet in the Legislative Building or the Legislative Office Building upon the approval of the Legislative Services Commission. Members of the Commission shall receive per diem, subsistence, and travel allowances at the rate established in G.S. 120‑3.1. The appointing authority shall fill vacancies.
The Commission, while in the discharge of its official duties, may exercise all the powers provided under the provisions of G.S. 120‑19 through G.S. 120‑19.4, including the power to request all officers, agents, agencies, and departments of the State to provide any information, data, or documents within their possession, ascertainable from their records, or otherwise available to them and the power to subpoena witnesses.
The State Personnel Director shall designate appropriate staff to serve as liaison to the Commission.
SECTION 2.(d)  The Commission's interim and final reports shall include the results of the Commission's study as well as recommendations, legislative and otherwise, for the elimination and prevention of disparities in State employee compensation between men and women. The Commission shall submit an interim report to the 2006 Regular Session of the 2005 General Assembly. The Commission shall make a final report to the 2007 General Assembly and shall terminate upon filing its final report.
SECTION 2.(e)  There is appropriated from the General Fund to the General Assembly the sum of twenty‑five thousand dollars ($25,000) for the 2005‑2006 fiscal year and the sum of twenty‑five thousand dollars ($25,000) for the 2006‑2007 fiscal year to fund the work of the State Government Fair Pay Study Commission.
SECTION 3.  This act becomes effective July 1, 2005.