Alaska Employment Law

As of May 12, HB 109, as amended, has passed both houses and should soon be on its way to the Governor, who requested the original bill.  As you can see from the title, the legislation tightens rules governing the conduct of public employees and officials:

An Act relating to bribery, receiving unlawful gratuities, and campaign contributions; denying public employee retirement pension benefits to certain legislators, legislative directors, and public officers who commit certain offenses, and adding to the duties of the Alaska Retirement Management Board and to the list of matters governed by the Administrative Procedure Act concerning that denial; relating to campaign financing and ethics, including disclosures, in state and municipal government, to lobbying, and to employment, service on boards, and disclosures by certain public officers and employees who leave state or municipal service or leave certain positions in state or municipal government; restricting representation of others by legislators; relating to blind trusts approved by the Alaska Public Offices Commission; and providing for an effective date.

The changes which will affect the most public employees are direct amendments to the Executive Branch Ethics Act, which start at Section 63.  In general, the Act limits or prohibits action on personal or financial interests by state employees in the executive branch as well as those serving public and quasi-public corporations (for a complete definition of agencies covered see AS 39.52.960(2)).  Proposed changes include:

• Would establish what is an “insignificant” financial interest for purposes of the Act – a stock or ownership interest in a business would be deemed insignificant if less than $5,000 (Section 63, adding sub-section (d) to AS 39.52.110);
• A gift from a lobbyist would be presumed to be intended to influence official action (Section 66, amending AS 39.52.130(a));
• Expanded post-employment limitations - The two year prohibition on a former public officer working for compensation for a 3rd party on a matter under consideration by the public officer’s former administrative unit, and in which the public officer participated personally & substantially, would also apply to legislation and regulations. (Section 67, amending AS 39.52.180(a))
• Post-service prohibitions on lobbying would be extended to the governing boards and the executive officer of public corporations. (Section 68, amending AS 39.52.180(d))
• Nepotism – The Act would specifically state that it does not preclude an Immediate Family Member (defined at AS 39.52.960(11) from employment in the same agency or administrative unit, so long as the public employee does not have authority to take or withhold official action affecting terms and conditions of employment in a manner that violates the law;  however, it would also specifically state that the Act does not supersede AS 39.90.020, which prohibits a spouse or blood relative within the second degree of kindred to the executive head of a principal dept or agency from being employed in that department or agency.  (Section 71, adding a new section (d) to AS 39.52.910.)
• Would expand the definition of official action to include “advice, participation, or assistance, including, for example, a recommendation, decision, approval, disapproval, vote or other similar action, including inaction . . .” (Section 72, amending AS 39.52.960(14))