State Employee Pay Plan

- 2025
69th Legislature 2025 HB 13
- 1 - Authorized Print Version – HB 13
ENROLLED BILL
AN ACT GENERALLY REVISING LAWS GOVERNING STATE EMPLOYEE COMPENSATION; REVISING
STATE EMPLOYEE PER DIEM RATES; INCREASING THE EMPLOYER CONTRIBUTION FOR GROUP
BENEFITS; SETTING THE HOURLY PAY RATE FOR LEGISLATORS IN FUTURE BIENNIA;
APPROPRIATING FUNDS TO IMPLEMENT PAY AND BENEFIT REVISIONS AND PER DIEM
ADJUSTMENTS; PROVIDING AN APPROPRIATION; AMENDING SECTIONS 2-18-303, 2-18-501, 2-18-703,
AND 5-2-301, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 2-18-303, MCA, is amended to read:
"2-18-303. Procedures for administering broadband pay plan. (1) On the first day of the first
complete pay period in fiscal year 2024 2026, each employee is entitled to the amount of the employee's base
salary as it was on June 30, 2023 2025.
(2) 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.
(3) Effective on the first day of the first complete pay period that includes July 1, 2023 2025, the
base salary of each employee must be increased by $1.50 $1.00 an hour or by 4% 2.5%, whichever is greater.
Effective on the first day of the first complete pay period that includes July 1, 2024 2026, the base salary of
each employee must be increased by $1.50 $1.00 an hour or by 4% 2.5%, whichever is greater. All full-time
employees must receive a one-time, lump-sum payment of $1,040 in the first full pay period after April 11,
2023. All employees who are regularly scheduled to work 20 hours or more a week but less than 40 hours a
week must receive a one-time, lump-sum payment of $780 in the first full pay period after April 11, 2023. All
employees who are regularly scheduled to work less than 20 hours a week must receive a one-time, lump-sum
payment of $520 in the first full pay period after April 11, 2023. These payments are applicable for fiscal year
- 2025
69th Legislature 2025 HB 13
- 2 - Authorized Print Version – HB 13
ENROLLED BILL
2023 only.
(4) (a) (i) A member of a bargaining unit may not receive the pay adjustment provided for in
subsection (3) until the employer's collective bargaining representative receives written notice that the
employee's collective bargaining unit has ratified a collective bargaining agreement.
(ii) If ratification of a collective bargaining agreement, as required by subsection (4)(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 consistent with the purpose of this part and necessary to properly
implement the pay adjustments provided for in this section may be provided for in collective bargaining
agreements.
(5) (a) Montana highway patrol officer base salaries must be established through the broadband
pay plan. Before January 1 of each odd-numbered year, the department shall, after seeking the advice of the
Montana highway patrol, conduct a salary survey to be used in establishing the base salary for existing and
entry-level highway patrol officer positions. The county sheriff's offices and the city police departments located
within the county seats of the following consolidated governments and counties are the labor market for
purposes of the survey: Butte-Silver Bow, Cascade, Yellowstone, Missoula, Lewis and Clark, Gallatin, Flathead,
and Dawson. The base salary for existing and entry-level highway patrol officer positions must then be
determined by the department of justice, using the results of the salary survey and the department of justice
pay plan guidelines. Base or biennial salary increases under this subsection are exclusive of and not in addition
to any increases otherwise awarded to other state employees after July 1, 2006.
(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.
(c) The department of justice shall submit the salary survey to the office of budget and program
planning as a part of the information required by 17-7-111.
(d) The salary survey and plan must be completed at least 6 months before the start of each
regular legislative session."
- 2025
69th Legislature 2025 HB 13
- 3 - Authorized Print Version – HB 13
ENROLLED BILL
Section 2. Section 2-18-501, MCA, is amended to read:
"2-18-501. Meals, lodging, and transportation of persons in state service. All elected state
officials, appointed members of boards, commissions, or councils, department directors, and all other state
employees must be reimbursed for meals and lodging while away from the person's designated headquarters
and engaged in official state business in accordance with the following provisions:
(1) Except as provided under subsection (3), for travel within the state of Montana, the following
provisions apply:
(a) lodging Lodging must be authorized at the actual cost of lodging and taxes on the allowable
cost of lodging., except as provided in subsection (3), plus $8.25 for the morning meal, $9.25 for the midday
meal, and $16.00 for the evening meal except as provided in subsection (9). All claims for lodging expense
reimbursement allowed under this section must be documented by an appropriate receipt.
(b) Except as provided in subsection (9), meals must be authorized at 70% of the standard federal
rate of reimbursement for breakfast, lunch, and dinner in Montana established by the United States general
services administration in accordance with the federal travel regulation.
(2) Except as provided in subsection (3), for travel outside the state of Montana including foreign
travel, the following provisions apply:
(a) Lodging must be reimbursed at actual cost, not to exceed the prescribed maximum standard
federal rate per day for the location involved plus taxes on the allowable cost.
(b) Meal reimbursement may not exceed the prescribed maximum standard federal rate per meal.
(3) Except as provided in subsection (9), the department of administration shall designate the
locations and circumstances under which the governor, other elected state officials, appointed members of
boards, commissions, or councils, department directors, and all other state employees may be authorized the
actual cost of the following:
(a) meals, not including alcoholic beverages, when the actual cost exceeds the maximum
established in subsection (2)(b); and
(b) lodging when the actual cost exceeds the maximum established in subsection (2)(a).
(4) When other than commercial, nonreceiptable lodging facilities are used by a state official or
employee while conducting official state business in a travel status, the amount of $12 is authorized for lodging
- 2025
69th Legislature 2025 HB 13
- 4 - Authorized Print Version – HB 13
ENROLLED BILL
expenses for each day in which travel involves an overnight stay in lieu of the amount authorized in subsection
(1) or (2)(a). However, when overnight accommodations are provided at the expense of a government entity,
reimbursement may not be claimed for lodging.
(5) The actual cost of reasonable transportation expenses and other necessary business
expenses incurred by a state official or employee while in an official travel status is subject to reimbursement.
(6) The provisions of this section may not be construed as affecting the validity of 5-2-301.
(7) The department of administration shall establish policies necessary to effectively administer
this section for state government.
(8) All commercial air travel must be by the least expensive class service available.
(9) When the actual cost of meals exceeds the maximum standard allowed pursuant to subsection
(1), the department of administration may authorize the actual cost of meals for firefighters.
(10) For the purposes of implementing subsection (9), the following definitions apply:
(a) "Firefighter" means a firefighter who is employed by the department of natural resources and
conservation and who is directly involved in the suppression of a wildfire in Montana.
(b) "Wildfire" means an unplanned, unwanted fire burning uncontrolled and consuming vegetative
fuels.
(11) Except for claims made pursuant to subsection (4), all claims for lodging expense
reimbursement allowed under this section must be documented by an appropriate receipt."
Section 3. 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) (a) Except as provided in subsection (2)(b), for employees defined in 2-18-701 and for
members of the legislature, the employer contribution for group benefits is $1,054 $1,080 a month beginning
January 2026 and $1,107 a month beginning January 2027.
(b) For employees defined in 2-18-701 and for members of the legislature, beginning January
2020 and for each succeeding month, the cost of group benefits, including both the employer and employee
contributions for group benefits and health flexible spending accounts, may not exceed the monthly amount for
- 2025
69th Legislature 2025 HB 13
- 5 - Authorized Print Version – HB 13
ENROLLED BILL
self-only coverage and coverage other than self-only that will trigger the excise tax under 26 U.S.C. 4980I,
including any cost-of-living adjustments under 26 U.S.C. 4980I. This section limits contributions for group
benefits only to the extent needed to avoid triggering the excise tax under 26 U.S.C. 4980I.
(c) Except as provided in subsection (2)(d), for employees of the Montana university system, the
employer contribution for group benefits is $1,054 $1,080 a month beginning July 2025 and $1,107 a month
beginning July 2026.
(d) For employees of the Montana university system, beginning the earlier of July 2020 or the first
month in 2020 in which the excise tax under 26 U.S.C. 4980I applies, and for each succeeding month, the cost
of group benefits, including both the employer and employee contributions for group benefits and health flexible
spending accounts, may not exceed the monthly amount for self-only coverage and coverage other than self-
only that will trigger the excise tax under 26 U.S.C. 4980I, including any cost-of-living adjustments under 26
U.S.C. 4980I. This section limits contributions for group benefits only to the extent needed to avoid triggering
the excise tax under 26 U.S.C. 4980I.
(e) 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 and to
the protections of 2-18-1205. 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, the employer's contributions may
exceed but may not be less than $10 a month.
(4) (a) For employees of political subdivisions, as defined in 2-9-101, except school districts, the
employer's contributions may exceed but may not be less than $10 a month.
(b) Subject to the public hearing requirement provided in 2-9-212(2)(b), the amount in excess of
the base contribution of a local government's property tax levy for contributions for group benefits as
determined in subsection (4)(c) is not subject to the mill levy calculation limitation provided for in 15-10-420.
- 2025
69th Legislature 2025 HB 13
- 6 - Authorized Print Version – HB 13
ENROLLED BILL
(c) (i) Subject to subsections (4)(c)(ii) and (4)(c)(iii), the base contribution is determined by
multiplying the average annual contribution for each employee on July 1, 1999, times the number of employees
for whom the employer makes contributions for group benefits under 2-9-212 on July 1 of each fiscal year.
(ii) If a political subdivision did not make contributions for group benefits on or before July 1, 1999,
and subsequently does so, the base contribution is determined by multiplying the average annual contribution
for each employee in the first year the political subdivision provides contributions for group benefits times the
number of employees for whom the employer makes contributions for group benefits under 2-9-212 on July 1 of
each fiscal year.
(iii) If a political subdivision has made contributions for group benefits but has not previously levied
for contributions in excess of the base contribution, the political subdivision's base is determined by multiplying
the average annual contribution for each employee at the beginning of the fiscal year immediately preceding
the year in which the levy will first be levied times the number of employees for whom the employer made
contributions for group benefits under 2-9-212 in that fiscal year.
(5) 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.
(6) 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.
(7) 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 4. Section 5-2-301, MCA, is amended to read:
"5-2-301. Compensation and expenses for members while in session. (1) Legislators are entitled
to a salary commensurate to that of the daily rate for an employee earning $10.33 an hour when the regular
session of the legislature in which they serve is convened under 5-2-103 for those days during which the
- 2025
69th Legislature 2025 HB 13
- 7 - Authorized Print Version – HB 13
ENROLLED BILL
legislature is in session. The hourly rate must be adjusted by any statutorily required pay increase For the
legislators serving in the legislative session beginning in January 2027, the salary of each legislator must be
determined by multiplying 80% times the average hourly wage for the state of Montana, all industry types,
posted by the United States bureau of labor statistics from the most recently published quarter of employment
and wages data. For the legislators serving in the legislative session beginning in January 2029 and any
subsequent biennium, the salary of each legislator must be determined to be equal to the average hourly wage
for the state of Montana, all industry types, posted by the United States bureau of labor statistics from the most
recently published quarter of employment and wages data. The average hourly rate must be calculated by
dividing the average weekly wage by 40 hours. The president of the senate and the speaker of the house must
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) Legislators are entitled to a daily allowance, 7 days a week, during a legislative session, as
reimbursement for lodging, breakfast, lunch, dinner, and incidental expenses incurred in attending a session.
The amount of the daily allowance is equal to the amount an employee of the executive branch of the federal
government is generally entitled to receive as per diem for lodging, breakfast, lunch, dinner, and incidental
expenses while away from home in the city of Helena but serving in the United States. Expense payments must
stop when the legislature recesses for more than 3 days and resume when the legislature reconvenes.
(4) 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.
(5) In addition to the mileage allowance provided for in subsection (4), legislators, on 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.
(6) Legislators are not entitled to any additional mileage allowance under subsection (4) for a
special session if it is convened within 7 days of a regular session.
(7) The department of administration shall work with the legislative services division to offer
options to legislators to receive their session salary provided for in subsection (1) over the 2-year legislative
- 2025
69th Legislature 2025 HB 13
- 8 - Authorized Print Version – HB 13
ENROLLED BILL
term or a portion of the term. The options must be offered to all legislators in order to assist legislators to
manage their income over the term. The per diem allowance and mileage as provided in this section, salary
during a special session as provided in 5-3-101, and the salary during the interim as provided for in 5-2-302
may not be affected."
Section 5. Appropriations. (1) The following money for the indicated fiscal years is appropriated to
the listed agencies to implement the adjustments provided in 2-18-303:
Fiscal Year 2026
General Fund State Special Federal Special Proprietary
Legislative Branch
441,185 66,291
Consumer Counsel
18,266
Judicial Branch
1,012,535 48,454 812
Executive Branch
12,940,632 10,811,397 6,347,166 237,519
Montana University System
9,489,860 1,569 56,860
Total
23,884,212 10,945,977 6,404,838 237,519
Fiscal Year 2027
General Fund State Special Federal Special Proprietary
Legislative Branch
890,017 133,406
Consumer Counsel
36,925
Judicial Branch
- 2025
69th Legislature 2025 HB 13
- 9 - Authorized Print Version – HB 13
ENROLLED BILL
2,027,488 97,184 1,624
Executive Branch
25,951,443 21,676,963 12,720,808 475,848
Montana University System
19,094,292 3,177 113,925
Total
47,963,240 21,947,655 12,836,357 475,848
(2) The following money is appropriated for both fiscal year 2026 and fiscal year 2027, in each
fiscal year, to the listed agencies to implement the adjustments provided in 2-18-501:
General Fund State Special Federal Special Proprietary
Legislative Branch
4,525 331
Consumer Counsel
54
Judicial Branch
3,395 309 15
Executive Branch
80,748 175,299 108,980 2,074
Montana University System
5,521 181
Total
94,189 175,993 109,176 2,074
(3) The following money for the indicated fiscal years is appropriated to the listed agencies to
implement the adjustments provided in 2-18-703:
Fiscal Year 2026
General Fund State Special Federal Special Proprietary
Legislative Branch
23,026 3,650
- 2025
69th Legislature 2025 HB 13
- 10 - Authorized Print Version – HB 13
ENROLLED BILL
Consumer Counsel
936
Judicial Branch
73,690 3,276 98
Executive Branch
800,421 662,800 291,446 14,386
Montana University System
932,969 156 3,569
Total
1,830,106 670,818 395,113 14,386
Fiscal Year 2027
General Fund State Special Federal Special Proprietary
Legislative Branch
69,962 11,092
Consumer Counsel
2,844
Judicial Branch
223,903 9,480 299
Executive Branch
2,432,049 2,011,048 1,189,393 43,712
Montana University System
1,906,522 474 10,843
Total
4,632,436 2,034,938 1,200,535 43,712
(4) The following money is appropriated for the biennium beginning July 1, 2025, to the office of
budget and program planning from the designated state fund and is to be distributed to agencies when
personnel vacancies do not occur, retirement costs exceed agency resources, or other contingencies arise:
General Fund $1,000,000
- 2025
69th Legislature 2025 HB 13
- 11 - Authorized Print Version – HB 13
ENROLLED BILL
State Special Revenue $500,000
Federal Special Revenue $250,000
Proprietary Funds $50,000
(5) There is appropriated $75,000 from the general fund to the department of administration for the
biennium beginning July 1, 2025, for a labor-management training initiative.
Section 6. Effective date. [This act] is effective July 1, 2025.
- END -
I hereby certify that the within bill,
HB 13, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 13
INTRODUCED BY J. FITZPATRICK
BY REQUEST OF THE OFFICE OF BUDGET AND PROGRAM PLANNING
AN ACT GENERALLY REVISING LAWS GOVERNING STATE EMPLOYEE COMPENSATION; REVISING
STATE EMPLOYEE PER DIEM RATES; INCREASING THE EMPLOYER CONTRIBUTION FOR GROUP
BENEFITS; SETTING THE HOURLY PAY RATE FOR LEGISLATORS IN FUTURE BIENNIA; APPROPRIATING
FUNDS TO IMPLEMENT PAY AND BENEFIT REVISIONS AND PER DIEM ADJUSTMENTS; PROVIDING AN
APPROPRIATION; AMENDING SECTIONS 2-18-303, 2-18-501, 2-18-703, AND 5-2-301, MCA; AND
PROVIDING AN EFFECTIVE DATE.