00 CS FOR SENATE CONCURRENT RESOLUTION NO. 29(FIN) am 01 Objecting to the Department of Administration's settlement with certain employees 02 of the Alaska marine highway system. 03 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 WHEREAS the labor relations section in the Department of Administration determined 05 after investigation that several employees of the Alaska marine highway system had 06 intentionally defrauded the state of approximately $800,000 between 1990 and 1994 by 07 claiming to be state residents for purposes of receiving the cost-of-living differential that is 08 available only to state residents; and 09 WHEREAS these acts of deception are punishable under state law as criminal fraud; 10 and 11 WHEREAS the commissioner of administration and the Marine Engineers Benevolent 12 Association, which represents these employees, have entered into a settlement agreement 13 requiring the employees to reimburse the state for less than 15 cents on the dollar for the extra 14 compensation they claimed and received; and 01 WHEREAS the settlement terms provide that no offending employee will be 02 prosecuted for these offenses and that the offending employees may continue to work for the 03 marine highway system without suspension, so long as they do not reoffend; and 04 WHEREAS the Department of Administration did not consult with or inform the state 05 legislature or the general public before it entered into negotiations with the bargaining 06 organization or agreed to these settlement terms; and 07 WHEREAS the settlement appears excessively lenient given the intentional fraud 08 alleged against the employees; and 09 WHEREAS the settlement deprives the people of the state of the repayment of money 10 to which the state is rightfully entitled, thereby reducing the revenue of the state; and 11 WHEREAS the monetary terms of an agreement reached under authority of the Public 12 Employment Relations Act are subject to legislative funding under AS 23.40.215(a) and 13 legislative approval under AS 23.40.215(b); 14 BE IT RESOLVED that the Alaska State Legislature disapproves the settlement 15 agreement reached between the Department of Administration and the Marine Engineers 16 Benevolent Association on behalf of certain employees of the Alaska marine highway system 17 and respectfully instructs the governor that the legislature does not authorize the agreement; 18 and be it 19 FURTHER RESOLVED that the commissioner of administration should refrain from 20 engaging in any further settlement discussions with the Marine Engineers Benevolent 21 Association, the International Association of Masters, Mates, and Pilots, or the 22 Inlandboatmen's Union of the Pacific aimed at reducing any sum considered to be owed to 23 the state by any member of one of those collective bargaining organizations because of an 24 inappropriately claimed resident cost-of-living differential; and be it 25 FURTHER RESOLVED that the Department of Administration and the Alaska 26 marine highway system take all measures available to them under law or contract to secure 27 repayment of all sums owed to the state relating to the cost-of-living differential; and be it 28 FURTHER RESOLVED that the Alaska State Legislature requests that the attorney 29 general appoint a special investigator to conduct an investigation into the actions and decisions 30 of the Department of Administration leading to the settlement between the commissioner of 31 administration and the Marine Engineers Benevolent Association to determine whether the 01 agreement violates AS 39.52.120(a) or any other statutory or regulatory provisions. The 02 special investigator shall report to the President of the Senate and the Speaker of the House 03 of Representatives no later than April 24, 1996, concerning the results of that investigation. 04 FURTHER RESOLVED that if by April 25, 1996 the special investigator has not 05 been appointed or no report has been made to the Speaker of the House and President of the 06 Senate that the presiding officers jointly agree to appoint a special investigator to proceed and 07 request time before a grand jury if warranted.