00 CS FOR SENATE BILL NO. 151(FIN) 01 "An Act relating to public employment labor relations; relating to the protection 02 of the rights of public employees under the Public Employment Relations Act; 03 establishing ethical standards for union representatives of public employees; and 04 establishing disclosure requirements for public employee labor organizations." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 23.40 is amended by adding a new section to read: 07  Sec. 23.40.011. Declaration of findings, purposes, and policy. (a) The 08 legislature finds that 09  (1) in the public interest, it continues to be the responsibility of the state 10 government to protect public employees' rights to organize, choose their own 11 representatives, bargain collectively, and otherwise engage in concerted activities for 12 their mutual aid or protection; 13  (2) the relations between public employers and labor organizations and 14 the thousands of workers they represent have a substantial effect on the delivery of 01 needed goods and services to the people of the state; and 02  (3) in order to accomplish the objectives of the maintenance of 03 harmonious and cooperative relations between public employees and employers and 04 to ensure the orderly and effective operations of government, it is essential that labor 05 organizations, public employers, and their officials adhere to the highest standards of 06 responsibility and ethical conduct in administering the affairs of their organizations, 07 particularly as they affect labor management relations. 08  (b) The legislature further finds that there have been instances of disregard for 09 the rights of individual employees and failures to observe high standards of 10 responsibility and ethical conduct. These instances require legislation to provide 11 protection for the rights and interests of employees and the public generally as those 12 rights and interests relate to the activities of labor organizations, public employers, and 13 their officers and representatives. 14  (c) The legislature further finds that legislation is necessary to eliminate or 15 prevent improper practices on the part of labor organizations, public employers, and 16 their officers and representatives that distort and defeat the policies of this chapter and 17 have the tendency or effect of burdening or obstructing harmonious and cooperative 18 relations between public employees and employers and interfering with the effective 19 and orderly operations of government. 20 * Sec. 2. AS 23.40.075 is amended to read: 21  Sec. 23.40.075. Items not subject to bargaining. The parties may not 22 negotiate terms contrary to the 23  (1) reemployment rights for injured state employees under 24 AS 39.25.158; 25  (2) reemployment rights of the organized militia under AS 26.05.075; 26  (3) authority of the Department of Health and Social Services under 27 AS 47.27.035 to assign Alaska temporary assistance program participants to a work 28 activity considered appropriate by the Department of Health and Social Services; or 29  (4) authority for agencies to create temporary positions under 30 AS 47.27.055(c); 31  (5) terms of a statute or, in the case of a political subdivision that 01 participates in collective bargaining under this chapter, an ordinance, that applies 02 to the employees unless the subject matter of the statute or ordinance is made 03 subject to bargaining under this chapter. 04 * Sec. 3. AS 23.40.075 is amended by adding a new subsection to read: 05  (b) Except as provided in this chapter, a public employer retains managerial 06 rights, prerogatives, and functions. Limitations on or exclusions from the rights of 07 employers under this chapter shall be narrowly construed. 08 * Sec. 4. AS 23.40.090 is amended to read: 09  Sec. 23.40.090. Collective bargaining unit. The labor relations agency shall 10 decide in each case, in order to assure to employees the fullest freedom in exercising 11 the rights guaranteed by this chapter [AS 23.40.070 - 23.40.260], the unit appropriate 12 for the purposes of collective bargaining, based on such factors as community of 13 interest, wages, hours, and other working conditions of the employees involved, the 14 history of collective bargaining, and the desires of the employees. Bargaining units 15 shall be as large as is reasonable, and unnecessary fragmenting shall be avoided. 16 * Sec. 5. AS 23.40.090 is amended by adding new subsections to read: 17  (b) A representative designated or selected by a majority of the employees 18 voting in an election to determine the representative for the bargaining unit is the 19 exclusive representative of all the employees in the unit. However, an employee or 20 group of employees within the bargaining unit may at any time present grievances to 21 the public employer and have those grievances adjusted as long as the adjustment is 22 consistent with the terms of the collective bargaining agreement that covers those 23 employees and as long as the bargaining representative has been given an opportunity 24 to be present when the grievance is presented or adjusted. 25  (c) The labor relations agency may not decide that a unit is appropriate for 26 collective bargaining if the unit combines 27  (1) a supervisory employee with a nonsupervisory employee; 28  (2) a confidential employee with a nonconfidential employee; 29  (3) a state employee in the classified service with a state employee who 30 is not in the classified service; 31  (4) an employee employed as a peace officer with an employee who 01 is not employed as a peace officer; 02  (5) an employee who is prohibited from engaging in strikes under 03 AS 23.40.200(b) with an employee who is not so prohibited. 04  (d) A labor organization may not be certified as the representative of 05 employees who are not peace officers if the organization 06  (1) has members or fee payers who are peace officers; 07  (2) is certified to represent peace officers; or 08  (3) is affiliated directly or indirectly with a labor organization that 09 represents or has members or fee payers who are peace officers. 10  (e) In this section, 11  (1) "confidential employee" means an employee who assists and acts 12 in a confidential capacity to a person who formulates, determines, or effectuates 13 management policies in labor relations matters; 14  (2) "peace officer" includes a correctional officer as defined in 15 AS 18.65.290; 16  (3) "supervisory employee" means a person, regardless of job 17 description or title, who has authority to act or to effectively recommend action in the 18 interest of a public employer in one or more of the following supervisory functions if 19 the exercise of that authority is not merely routine but requires the exercise of 20 independent judgment: 21  (A) employing, including hiring, transferring, laying off, or 22 recalling a public employee; 23  (B) discipline, including suspending, discharging, demoting, or 24 issuing written warnings to a public employee; 25  (C) grievance adjudication, including responding to a first level 26 grievance under a collective bargaining agreement. 27 * Sec. 6. AS 23.40.100(a) is amended to read: 28  (a) The labor relations agency shall investigate a petition if it is submitted in 29 a manner prescribed by the labor relations agency and is by 30  (1) [BY] an employee or group of employees or an organization acting 31 in their behalf alleging that 30 percent of the employees of a proposed bargaining unit 01  (A) want to be represented for collective bargaining by a labor 02 or employee organization as exclusive representative; [,] or 03  (B) assert that the organization that [WHICH] has been 04 certified or is currently being recognized by the public employer as bargaining 05 representative is no longer the representative of the majority of employees in 06 the bargaining unit; or 07  (2) [BY] the public employer alleging that 08   (A) one or more organizations have presented to it a claim to 09 be recognized as a representative of a majority of employees in an appropriate 10 unit; 11  (B) the organization that has been certified or is currently 12 recognized by the public employer as the bargaining representative is no 13 longer representative of a majority of employees in the bargaining unit; or 14  (C) the duties of one or more of the employees in the 15 bargaining unit have changed, or the nature of the work of the employees 16 in the unit has changed, requiring the bargaining unit to be clarified or the 17 certification amended. 18 * Sec. 7. AS 23.40.100(d) is amended to read: 19  (d) Nothing in this chapter prohibits recognition of an organization as the 20 exclusive representative by a public agency by mutual consent.  However, a member 21 of a bargaining unit whose exclusive representative was established by mutual 22 consent may petition the labor relations agency to hold an election to determine 23 if the 24  (1) unit is appropriate for bargaining; or 25  (2) labor organization is in fact the representative of the majority 26 of the members of the bargaining unit. 27 * Sec. 8. AS 23.40.100 is amended by adding a new subsection to read: 28  (f) The labor relations agency may not investigate a petition by a labor 29 organization and may not place the name of a labor organization on a ballot under this 30 section unless the organization has filed all reports required of the organization under 31 AS 23.40.400. 01 * Sec. 9. AS 23.40.110 is amended to read: 02  Sec. 23.40.110. Unfair labor practices. (a) A public employer or an agent 03 of a public employer may not 04  (1) interfere with, restrain, or coerce an employee in the exercise of the 05 employee's rights guaranteed in AS 23.40.080; 06  (2) dominate or interfere with the formation, existence, or 07 administration of an organization or contribute financial or other support to the 08 organization; however, a public employer, including a supervisor, manager, or 09 agent of a public employer, may confer with employees during working hours, 10 without loss of time or pay, on matters of mutual concern, including methods of 11 production, service delivery, training, and employer organizational structures and 12 processes; 13  (3) discriminate in regard to hire or tenure of employment or a term 14 or condition of employment to encourage or discourage membership in an 15 organization; 16  (4) discharge or discriminate against an employee because the employee 17 has signed or filed an affidavit, petition, or complaint or given testimony under this 18 chapter [AS 23.40.070 - 23.40.260]; 19  (5) refuse to bargain collectively in good faith with an organization 20 that [WHICH] is the exclusive representative of employees in an appropriate unit, 21 including but not limited to the discussing of grievances with the exclusive 22 representative. 23  (b) Nothing in this chapter prohibits a public employer from making an 24 agreement with an organization to require as a condition of employment 25  [(1) MEMBERSHIP IN THE ORGANIZATION WHICH 26 REPRESENTS THE UNIT ON OR AFTER THE 30TH DAY FOLLOWING THE 27 BEGINNING OF EMPLOYMENT OR ON THE EFFECTIVE DATE OF THE 28 AGREEMENT, WHICHEVER IS LATER; OR 29  (2)] payment by the employee to the exclusive bargaining agent of a 30 service fee to reimburse the exclusive bargaining agent for the expense of representing 31 the members of the bargaining unit.  The service fee may only include 01 reimbursement for collective bargaining activities, including the adjustment of 02 grievances. 03  (c) A labor or employee organization or its agents may not 04  (1) restrain or coerce 05  (A) an employee in the exercise of the rights guaranteed in 06 AS 23.40.080; [,] or 07  (B) a public employer in the selection of the employer's 08 representative for the purposes of collective bargaining or the adjustment of 09 grievances; 10  (2) refuse to bargain collectively in good faith with a public employer 11 [,] if the organization [IT] has been designated in accordance with this chapter [THE 12 PROVISIONS OF AS 23.40.070 - 23.40.260] as the exclusive representative of 13 employees in an appropriate unit; 14  (3) engage in, or induce or encourage an individual to engage in, 15 a strike or a refusal in the course of employment to use, manufacture, process, 16 transport, or otherwise handle or work on goods or perform services, or threaten, 17 coerce, or restrain a person if the object of the labor organization is to force or 18 require 19  (A) an employer or a self-employed person to join a labor 20 organization or an employer organization or to enter into an agreement 21 that is prohibited under (e) of this section; 22  (B) a person to stop using, selling, handling, transporting, 23 or otherwise dealing in a product of another producer, processor, or 24 manufacturer, or to stop doing business with another person; however, this 25 subparagraph may not be interpreted to make unlawful an otherwise 26 lawful primary strike or primary picketing or to require another employer 27 to recognize or bargain with a labor organization as the representative of 28 the employer's employees unless the labor organization has been certified 29 as the exclusive representative of those employees under AS 23.40.090; 30  (C) an employer to recognize or bargain with a particular 31 labor organization as the representative of its employees if another labor 01 organization has been certified as the exclusive representative of those 02 employees; 03  (D) an employer to assign particular work to employees in 04 a particular organization or in a particular trade, craft, or class rather 05 than to other employees unless the assignment is required by order or 06 certification of the labor relations agency; 07  (4) require employees covered by an agreement authorized under 08 (b) of this section to pay, as a condition of employment, a service fee in an 09 amount that the labor relations agency finds 10  (A) not reasonably based on the expenses incurred by the 11 labor organization for collective bargaining; or 12  (B) excessive or discriminatory under all the circumstances; 13  (5) cause or attempt to cause a public employer to pay or deliver, 14 or agree to pay or deliver, money or another thing of value for services that are 15 not performed or are not to be performed on behalf of the public employer; and 16  (6) picket or cause to be picketed, or threaten to picket or cause to 17 be picketed, an employer, unless the labor organization is currently certified as 18 the representative of the employer's employees, if the object of the picketing is to 19 force or require 20  (A) the employer to recognize or bargain with a labor 21 organization as the representative of the employer's employees; or 22  (B) the employees of an employer to accept or select the 23 labor organization as their collective bargaining representative. 24 * Sec. 10. AS 23.40.110 is amended by adding new subsections to read: 25  (d) The expression or dissemination of views, argument, or opinion in any 26 form does not constitute and is not evidence of an unfair labor practice under this 27 chapter so long as the expression does not contain a threat of reprisal or force or a 28 promise of benefit. 29  (e) It is an unfair labor practice for a labor organization and a public employer 30 to enter into a contract or agreement, express or implied, in which the public employer 31 ceases or refrains or agrees to cease or refrain from handling, using, selling, 01 transporting, or otherwise dealing in a product or service of another public or private 02 employer or to cease doing business with another person. If a contract or agreement 03 contains an agreement prohibited by this subsection, the part prohibited by this 04 subsection is unenforceable and void. 05  (f) A statement or action of a member of the legislature, a justice or judge, or 06 a member of the legislative body of a political subdivision of the state may not be 07 considered to be an unfair labor practice under this section if the statement or action 08 was within the scope of the individual's normal duties and if the individual was not 09 at the time of the statement or action designated to act as the agent of the public 10 employer in collective bargaining or the adjustment of grievances. 11 * Sec. 11. AS 23.40.120 is amended to read: 12  Sec. 23.40.120. Investigation and conciliation of complaints. If a verified 13 written complaint by or for a person claiming to be aggrieved by a practice prohibited 14 by AS 23.40.110, or a written accusation that a person subject to this chapter 15 [AS 23.40.070 - 23.40.260] has engaged in a prohibited practice, is filed with the labor 16 relations agency, it shall investigate the complaint or accusation. If it determines after 17 the preliminary investigation that probable cause exists in support of the complaint or 18 accusation, it shall try to eliminate the prohibited practice by informal methods of 19 conference, conciliation, and persuasion. Nothing said or done during this endeavor 20 may be used as evidence in a subsequent proceeding. 21 * Sec. 12. AS 23.40.130 is amended to read: 22  Sec. 23.40.130. Complaint and accusation. If the labor relations agency fails 23 to eliminate the prohibited practice by conciliation and to obtain voluntary compliance 24 with this chapter [AS 23.40.070 - 23.40.260,] or [,] before it attempts conciliation, it 25 may serve a copy of the complaint or accusation upon the respondent. The complaint 26 or accusation and the subsequent procedures shall be handled in accordance with 27 AS 44.62.330 - 44.62.630 [THE ADMINISTRATIVE ADJUDICATION PORTION 28 OF AS 44.62 (ADMINISTRATIVE PROCEDURE ACT)]. 29 * Sec. 13. AS 23.40.140 is amended to read: 30  Sec. 23.40.140. Orders and decisions. If the labor relations agency finds that 31 a person named in the written complaint or accusation has engaged in a prohibited 01 practice, the labor relations agency shall issue and serve on the person an order or 02 decision requiring the person to cease and desist from the prohibited practice and to 03 take affirmative action which will carry out the provisions of this chapter 04 [AS 23.40.070 - 23.40.260]. If the labor relations agency finds that a person named 05 in the complaint or accusation has not engaged or is not engaging in a prohibited 06 practice, the labor relations agency shall state its findings of fact and issue an order 07 dismissing the complaint or accusation. 08 * Sec. 14. AS 23.40.150 is amended to read: 09  Sec. 23.40.150. Enforcement by injunction. The labor relations agency may 10 apply to the superior court [IN THE JUDICIAL DISTRICT IN WHICH THE 11 PROHIBITED PRACTICE OCCURRED] for an order enjoining the prohibited acts 12 specified in the order or decision of the labor relations agency. Upon a showing by 13 the labor relations agency that the person has engaged or is about to engage in the 14 practice, an injunction, restraining order, or other order which is appropriate may be 15 granted by the court and shall be without bond. 16 * Sec. 15. AS 23.40.160(a) is amended to read: 17  (a) For the purpose of the investigations, proceedings, or hearings that 18 [WHICH] the labor relations agency considers necessary to carry out the provisions 19 of this chapter [AS 23.40.070 - 23.40.260], the labor relations agency may issue 20 subpoenas requiring the attendance and testimony of witnesses and the production of 21 relevant evidence. 22 * Sec. 16. AS 23.40.160(d) is amended to read: 23  (d) If a person refuses to obey a subpoena issued under this chapter 24 [AS 23.40.070 - 23.40.260], the superior court in the district in which the person 25 resides or is found may, upon application by the labor relations agency, issue an order 26 requiring the person to comply with the subpoena. 27 * Sec. 17. AS 23.40.170 is amended to read: 28  Sec. 23.40.170. Regulations and adjudications.  (a) The labor relations 29 agency may adopt regulations under AS 44.62 (Administrative Procedure Act) to carry 30 out the provisions of this chapter [AS 23.40.070 - 23.40.260]. 31 * Sec. 18. AS 23.40.170 is amended by adding a new subsection to read: 01  (b) Except for the requirements concerning hearing officers in AS 44.62.350, 02 the provisions of AS 44.62 (Administrative Procedure Act) apply to adjudications 03 under this chapter. 04 * Sec. 19. AS 23.40.200(b) is amended to read: 05  (b) The class in (a)(1) of this section is composed exclusively of (1) police 06 [AND FIRE PROTECTION EMPLOYEES], jail, prison, and other correctional 07 institution employees whose positions require certification by the Alaska Police 08 Standards Council, (2) fire fighters, (3) employees of juvenile detention facilities 09 who are responsible for the physical security of the facility or of minors 10 incarcerated in the facility, and (4) licensed health care providers employed by a 11 hospital or correctional facility [EMPLOYEES]. Employees in this class may not 12 engage in strikes. Upon a showing by a public employer or the labor relations agency 13 that employees in this class are engaging or about to engage in a strike, an injunction, 14 restraining order, or other order that [WHICH] may be appropriate shall be granted 15 by the superior court [IN THE JUDICIAL DISTRICT IN WHICH THE STRIKE IS 16 OCCURRING OR IS ABOUT TO OCCUR]. If an impasse or deadlock is reached in 17 collective bargaining between the public employer and employees in this class [,] and 18 mediation has been used [UTILIZED] without resolving the deadlock, the parties shall 19 submit to arbitration. The arbitrator shall be selected under (g) of this section [TO 20 BE CARRIED OUT UNDER AS 09.43.030]. 21 * Sec. 20. AS 23.40.200(c) is amended to read: 22  (c) The class in (a)(2) of this section is composed exclusively of public utility, 23 snow removal, residential care facility, and sanitation [, AND EDUCATIONAL 24 INSTITUTION] employees and employees of hospitals other than licensed health 25 care providers [OTHER THAN EMPLOYEES OF A SCHOOL DISTRICT, A 26 REGIONAL EDUCATIONAL ATTENDANCE AREA, OR THE STATE BOARDING 27 SCHOOL]. Employees in this class may engage in a strike after mediation, subject 28 to the voting requirement of (d) of this section, for a limited time. The limit is 29 determined by the interests of the health, safety, or welfare of the public. The public 30 employer or the labor relations agency may apply to the superior court in the judicial 31 district in which the strike is occurring for an order enjoining the strike. A strike may 01 not be enjoined unless it can be shown that it has begun to threaten the health, safety, 02 or welfare of the public. A court, in deciding whether or not to enjoin the strike, shall 03 consider the total equities in the particular class. "Total equities" includes not only the 04 impact of a strike on the public but also the extent to which employee organizations 05 and public employers have met their statutory obligations. If an impasse or deadlock 06 still exists after the issuance of an injunction, the parties shall submit to arbitration. 07 The arbitrator shall be selected under (g) of this section [TO BE CARRIED OUT 08 UNDER AS 09.43.030]. 09 * Sec. 21. AS 23.40.200(d) is amended to read: 10  (d) The class in (a)(3) of this section includes all other public employees who 11 are not included in the classes in (a)(1) or (a)(2) of this section, including employees 12 of the Alaska marine highway system. Employees in this class may engage in a 13 strike after an impasse or deadlock is reached in collective bargaining if a majority 14 of the employees in a collective bargaining unit vote by secret ballot to do so. 15 However, if an impasse or deadlock is reached in collective bargaining negotiations 16 between a municipal school district, a regional educational attendance area, or the state 17 boarding school and its employees, the parties shall submit to advisory arbitration 18 before the employees may engage in a strike. The arbitrator selected to conduct the 19 advisory arbitration must be a member of the American Arbitration Association Panel 20 of Labor Arbitrators or the Federal Mediation and Conciliation Service. In selecting 21 the arbitrator, the parties shall request a list of arbitrators who have knowledge of and 22 recent experience in the local conditions in the school district, regional educational 23 attendance area, or state boarding school. A list containing at least five nominees who 24 meet the qualifications of this subsection is a complete list for the purpose of striking 25 names and selecting the arbitrator. 26 * Sec. 22. AS 23.40.200 is amended by adding new subsections to read: 27  (g) An arbitrator selected to conduct arbitration under (b), (c), or (e) of this 28 section must be a member of the Federal Mediation and Conciliation Service panel of 29 labor arbitrators. In selecting an arbitrator, the parties shall request a list of arbitrators 30 who have knowledge of and recent experience in the public sector and in this state or 31 the Pacific Northwest region. A list containing at least seven nominees who meet the 01 qualifications of this subsection is a complete list for the purpose of striking names and 02 selecting the arbitrator. If the parties are unable to agree upon an arbitrator or a 03 method of selecting an arbitrator within 30 days after impasse or deadlock, an 04 arbitrator shall be selected under AS 09.43.030. 05  (h) Arbitration conducted under (b), (c), (d), or (e) of this section shall be open 06 to the public and, the decision and award of the arbitrator are public records. 07 * Sec. 23. AS 23.40.205 is amended to read: 08  Sec. 23.40.205. Family leave. Notwithstanding any provision of this chapter 09 [AS 23.40.070 - 23.40.260] to the contrary, an agreement between the employer 10 subject to AS 23.10.500 - 23.10.550 and an employee bargaining organization that 11 does not contain benefit provisions at least as beneficial to the employee as those 12 provided by AS 23.10.500 - 23.10.550 shall be considered to contain the benefit 13 provisions of those statutes. 14 * Sec. 24. AS 23.40.210(a) is amended to read: 15  (a) Upon the completion of negotiations between an organization and a public 16 employer, if a settlement is reached, the employer shall reduce it to writing in the form 17 of an agreement. The agreement must [MAY] include a term for which it will remain 18 in effect, not to exceed three years.  The agreement may not contain a provision for 19 automatic renewal. The agreement must [SHALL] include a pay plan designed to 20 provide for a cost-of-living differential between the salaries paid employees residing 21 in the state and employees residing outside the state. The plan must [SHALL] provide 22 that the salaries paid, as of August 26, 1977, to employees residing outside the state 23 shall remain unchanged until the difference between those salaries and the salaries paid 24 employees residing in the state reflects the difference between the cost of living in 25 Alaska and living in Seattle, Washington. The agreement must [SHALL] include a 26 grievance procedure that, during its term, has [WHICH SHALL HAVE] binding 27 arbitration as its final step. Either party to the agreement has a right of action to 28 enforce the agreement by petition to the labor relations agency.  However, a labor 29 organization that has failed to file the reports required by AS 23.40.400 may not 30 petition the labor relations agency to enforce an agreement under this section. 31 * Sec. 25. AS 23.40.210(c) is amended to read: 01  (c) The labor relations agency shall [COMMISSIONER OF 02 ADMINISTRATION MAY] adopt regulations under AS 44.62 (Administrative 03 Procedure Act) to clarify and implement the criteria for establishing and maintaining 04 eligibility for the cost-of-living differential. 05 * Sec. 26. AS 23.40.210(d) is amended to read: 06  (d) An agreement entered into under this chapter [AS 23.40.070 - 23.40.260] 07 must require compliance with the eligibility criteria for receiving the cost-of-living 08 differential contained in this section and the regulations adopted by the labor relations 09 agency [COMMISSIONER] under (c) of this section. 10 * Sec. 27. AS 23.40.210 is amended by adding new subsections to read: 11  (f) An arbitrator selected to conduct arbitration under (a) of this section must 12 be a member of the Federal Mediation and Conciliation Service panel of labor 13 arbitrators. In selecting an arbitrator, the parties shall request and maintain a list of 14 arbitrators who have knowledge of and recent experience in the public sector and in 15 this state or the Pacific Northwest region. A list containing at least seven nominees 16 who meet the qualifications of this subsection is a complete list for the purpose of 17 striking names and selecting the arbitrator. 18  (g) The decision and award in an arbitration conducted under this section are 19 considered to be a final administrative determination under AS 44.62 (Administrative 20 Procedures Act) for purposes of appeal. The decision and award are public records. 21 * Sec. 28. AS 23.40.212(a) is amended to read: 22  (a) The Board of Regents of the University of Alaska may delegate to the 23 Department of Administration its authority under this chapter [AS 23.40.070 - 24 23.40.260] to negotiate with an organization for an agreement. 25 * Sec. 29. AS 23.40.215(a) is amended to read: 26  (a) The monetary terms of any agreement entered into under this chapter and 27 the extension or modification of an agreement, including an award by an 28 arbitrator acting under AS 23.40.200, if the extension or modification affects in 29 any way the monetary terms of an agreement, [AS 23.40.070 - 23.40.260] are 30 subject to funding through [LEGISLATIVE] appropriation by the legislature or by 31 the legislative body of a political subdivision that is subject to this chapter, as 01 appropriate. A monetary term of an agreement is not effective or enforceable 02 until the term has been approved and funded under this section. 03 * Sec. 30. AS 23.40.215(b) is amended to read: 04  (b) The Department of Administration shall submit the monetary terms of an 05 agreement, an arbitrator's award under AS 23.40.200, or an extension, or 06 modification of an agreement, to the legislature within 10 legislative days after the 07 agreement of the parties [,] if the legislature is in session, or within 10 legislative days 08 after the convening of the next regular session. The legislature shall advise the parties 09 by concurrent resolution if it approves or disapproves of the monetary terms within 60 10 legislative days after the agreement is submitted to the legislature. The approval of 11 the monetary terms of an agreement under this subsection is a nonbinding, advisory 12 expression of legislative intent. If within 60 legislative days after the agreement is 13 submitted the legislature advises the parties by concurrent resolution that it disapproves 14 the monetary terms of the agreement, the parties shall [MAY] resume negotiations.  15 This subsection applies to an agreement, award, extension, or modification 16 between the state, including the University of Alaska or a public corporation of 17 the state, and a labor organization representing state employees. 18 * Sec. 31. AS 23.40.215 is amended by adding new subsections to read: 19  (d) An agreement, resolution, settlement, or arbitrator's award during the term 20 of a collective bargaining agreement between the state and a labor organization that 21  (1) will require the expenditure of $10,000 or more over the life of the 22 collective bargaining agreement or that requires the state to forego repayment of 23 money owed to the state may not take effect until at least 30 days after a copy of the 24 terms has been received by the Legislative Budget and Audit Committee for review; 25  (2) substantially modifies the monetary terms reported to the legislature 26 under (a) of this section is subject to approval by the legislature as provided in (a) and 27 (b) of this section and is not effective unless and until it receives legislative funding 28 and approval. 29  (e) The legislative body of a political subdivision that is an employer under 30 this chapter may, by ordinance or resolution, provide a system of review and approval 31 of the monetary terms of collective bargaining agreements consistent with this section. 01 * Sec. 32. AS 23.40.220 is amended to read: 02  Sec. 23.40.220. Labor or employee organization dues and employee 03 benefits, deduction and authorization. Upon the annual voluntary written 04 authorization of a public employee within a bargaining unit, the public employer shall 05 deduct from the payroll of the public employee the monthly amount of membership 06 dues [, FEES,] and other employee benefits as certified by the secretary of the 07 exclusive bargaining representative and shall deliver it to the chief fiscal officer of the 08 exclusive bargaining representative.  An authorization under this subsection may not 09 be made irrevocable for a period longer than one year. 10 * Sec. 33. AS 23.40.220 is amended by adding new subsections to read: 11  (b) Upon the voluntary written authorization of a public employee required to 12 pay a service fee under AS 23.40.110(b), the public employer shall deduct from the 13 salary of the employee the monthly amount of the service fee or other employee 14 benefits as certified by the secretary of the exclusive bargaining representative and 15 shall deliver the amount withheld to the chief fiscal officer of the exclusive bargaining 16 representative. The authorization from the public employee may not take effect before 17 the effective date of the applicable collective bargaining agreement, may not last later 18 than the termination date of the collective bargaining agreement, and may not be made 19 irrevocable for a period longer than one year. 20  (c) An authorization form presented to a public employee by a public employer 21 or labor organization must clearly state that an employee required to pay a service fee 22 under AS 23.40.110(b) is obligated to pay, as a condition of employment, only a 23 service fee for representation and may not be compelled to be or become a member 24 of a labor organization as a condition of employment or to provide monetary support 25 to a labor organization's social, fraternal, or political activities. 26 * Sec. 34. AS 23.40.250 is amended to read: 27  Sec. 23.40.250. Definitions.  Except as otherwise provided in AS 23.40.900, 28 in this chapter [IN AS 23.40.070 - 23.40.260], unless the context otherwise requires, 29  (1)  "bargaining unit member" means an employee of a public 30 employer who is employed in a position or job classification in a unit that has 31 been determined by the labor relations agency to be appropriate for collective 01 bargaining; 02  (2) "collective bargaining" means the performance of the mutual 03 obligation of the public employer or the employer's designated representatives and the 04 representative of the employees to meet at reasonable times, including meetings in 05 advance of the budget making process, and negotiate in good faith with respect to 06 wages, hours, and other terms and conditions of employment, or the negotiation of an 07 agreement, or negotiation of a question arising under an agreement and the execution 08 of a written contract incorporating an agreement reached [IF REQUESTED BY 09 EITHER PARTY], but these obligations do not compel either party to agree to a 10 proposal or require the making of a concession; 11   (3) [(2)] "election" means a proceeding conducted by the labor relations 12 agency in which the employees in a collective bargaining unit cast a secret ballot for 13 collective bargaining representatives, or for any other purpose specified in this chapter 14 [AS 23.40.070 - 23.40.260]; 15   (4) "fee payer" or "service fee payer" means a person in a 16 collective bargaining unit who is obligated to pay a service fee; 17  (5) "intentionally" has the meaning given in AS 11.81.900; 18  (6) "knowingly" has the meaning given in AS 11.81.900; 19  (7) "labor dispute" includes a controversy concerning wages, hours, 20 or terms and conditions of employment, or concerning the association or 21 representation of persons in negotiating, fixing, maintaining, changing, or seeking 22 to arrange terms or conditions of employment, regardless of whether the 23 disputants stand in the proximate relation of public employer and employee; 24   (8) [(3)] "labor relations agency" means the Alaska labor relations 25 agency established in AS 23.05.360; 26   (9) "member" or "member in good standing," when used in 27 reference to a labor organization, includes a person who has fulfilled the 28 requirements for membership in the organization, and who neither has voluntarily 29 withdrawn from membership nor has been expelled or suspended from 30 membership after appropriate proceedings consistent with lawful provisions of the 31 constitution and bylaws of the organization; 01   (10) [(4)] "monetary terms of an agreement" means the changes in the 02 terms and conditions of employment from a predecessor agreement, or from the 03 terms and conditions established by statute, ordinance, resolution, or other means, 04 resulting from an agreement that will require the expenditure of public money [AN 05 APPROPRIATION] for their implementation or will result in a change in [STATE] 06 revenues of the public employer or productive work hours for public [STATE] 07 employees; 08   (11) "officer" means a constitutional officer, a person authorized 09 to perform the functions of president, vice-president, secretary, treasurer, or other 10 executive functions of a labor organization, and a member of its executive board 11 or similar governing body, including an employee or agent of a labor organization 12 who acts at the direction of an officer; 13  (12) "officer, agent, shop steward, or other representative," when 14 used with respect to a labor organization, includes elected officials and key 15 administrative personnel, whether elected or appointed, including business agents, 16 heads of departments or major units, and organizers who exercise substantial 17 independent authority, but does not include salaried nonsupervisory professional 18 staff, stenographic, and service personnel; 19   (13) [(5)] "organization" means a labor or employee organization of any 20 kind, an agency, or employee representative committee, group, association, or plan 21 in which employees participate and that [WHICH] exists for the [PRIMARY] purpose, 22 in whole or in part, of dealing with public employers concerning grievances, labor 23 disputes, wages, rates of pay, hours of employment, and other terms and conditions 24 of employment; 25  (14) "person" includes a labor organization; 26   (15) [(6)] "public employee" means any employee of a public employer, 27 whether or not in the classified service of the public employer, and includes an 28 individual whose work has stopped as a consequence of, or in connection with, a 29 current labor dispute, because of an unfair labor practice, or because of exclusion 30 or expulsion from a labor organization in any manner or for any reason 31 inconsistent with the requirements of this chapter, except 01   (A) elected or appointed officials; 02  (B) [OR] superintendents of schools; 03   (C) temporary or nonpermanent employees; 04  (D) part-time employees who work less than 20 hours per 05 work week; 06  (E) employees of the legislative branch of state government; 07  (F) employees employed primarily to formulate, effectuate, 08 or determine management policy in the area of collective bargaining; or 09  (G) a person who is employed to act or assist a member of 10 the legislative body of a political subdivision of the state or a justice, judge, 11 or magistrate in the state court system in a confidential capacity; 12   (16) [(7)] "public employer" means 13   (A) the state or a political subdivision of the state, including 14 without limitation, a municipality, district, school district, regional educational 15 attendance area, board of regents, public and quasi-public corporation, housing 16 authority, or other authority established by law; 17  (B) [, AND] a person designated by the public employer to act 18 in its interest in dealing with public employees; 19   (C) a person employed by a public employer primarily to 20 formulate, effectuate, or determine the public employer's policies in the 21 area of labor relations; 22   (D) a group or association of public employers that 23  (i) is, with respect to public employees, an employer 24 under this chapter; or 25  (ii) may deal with a labor organization concerning 26 grievances, labor disputes, wages, rates of pay, hours of 27 employment, or conditions of work; 28   (17) [(8)] "regional educational attendance area" means an educational 29 service area in the unorganized borough that may or may not include a military 30 reservation [,] and that contains one or more public schools of grade levels K - 12 or 31 any portion of those grade levels that are to be operated under the management and 01 control of a single regional school board; 02   (18) "secret ballot" means the expression by ballot, voting machine, 03 or otherwise, but in no event by proxy, of a choice with respect to an election or 04 vote taken on a matter, which is cast in such a manner that the person expressing 05 the choice cannot be identified with the choice expressed; 06  (19) "service fee" means a fee authorized by AS 23.40.110(b) for 07 the costs associated with representation; 08  (20) "spousal equivalent" means a person who is cohabiting with 09 another person in a relationship that is like a marriage but that is not a legal 10 marriage; 11   (21) "trusteeship" means a receivership, trusteeship, or other 12 method of supervision or control whereby a labor organization suspends the 13 autonomy otherwise available to a subordinate body under its constitution or 14 bylaws; 15   (22) [(9)] "terms and conditions of employment" 16   (A) means the hours of employment, the compensation and 17 fringe benefits, and the employer's personnel policies affecting the working 18 conditions of the employees; but 19   (B) does not mean the general policies describing the function 20 and purposes of a public employer. 21 * Sec. 35. AS 23.40.250 is amended by adding a new subsection to read: 22  (b) A labor organization is subject to this chapter if it 23  (1) is the recognized or certified representative of public employees 24 under this chapter; 25  (2) although not certified, is a national or international labor 26 organization or a local labor organization recognized or acting as the representative of 27 employees of a public employer or employers under this chapter; or 28  (3) has been chartered by a labor organization representing or actively 29 seeking to represent public employees as the local or subordinate body through which 30 the employees may enjoy membership or become affiliated with a labor organization. 31 * Sec. 36. AS 23.40.260 is amended to read: 01  Sec. 23.40.260. Short title.  This chapter [AS 23.40.070 - 23.40.260] may be 02 cited as the Public Employment Relations Act. 03 * Sec. 37. AS 23.40 is amended by adding new sections to read: 04 Article 3. Rights of Members of Labor Organizations. 05  Sec. 23.40.300. Rights of members of labor organizations. (a) A member 06 of a labor organization has equal rights and privileges within the organization, subject 07 to reasonable rules and regulations in the organization's constitution and bylaws, to 08  (1) nominate candidates; 09  (2) vote in elections or referenda of the labor organization; 10  (3) attend membership meetings, and participate in the deliberations and 11 vote on the business of those meetings. 12  (b) A bargaining unit member, including a service fee payer, has equal rights 13 to vote in 14  (1) an election that has as its purpose the acceptance or rejection of a 15 collective bargaining agreement reached under AS 23.40.210, or the modification, 16 extension, or amendment of an agreement; 17  (2) an election or referendum of the labor organization that affects 18 wages, hours, or terms and conditions of employment of members of the bargaining 19 unit or of a subdivision of the bargaining unit to which the employee belongs. 20  (c) A member of a labor organization has the right to meet and assemble freely 21 with other members. Subject to (d) of this section, a member of a labor organization 22 also has the right to express 23  (1) views, arguments, or opinions; and 24  (2) at meetings of the labor organization, the member's views on 25 candidates in an election of the labor organization or on any business properly before 26 the meeting. 27  (d) Notwithstanding (c) of this section, a labor organization has the right to 28 adopt and enforce reasonable rules concerning the conduct of meetings, the 29 responsibility of every member toward the organization as an institution, and to the 30 members refraining from conduct that would interfere with the performance of the 31 labor organization's obligations. 01  Sec. 23.40.310. Dues, initiation fees, and assessments. (a) Except in the 02 case of a federation of national or international labor organizations, the rates of dues 03 and initiation fees payable by members of a labor organization in effect on the 04 effective date of this Act may not be increased and a general or special assessment 05 may not be levied on the members of the labor organization except as provided in this 06 section. 07  (b) A labor organization may increase dues or initiation fees or impose a 08 special or general assessment by majority vote by secret ballot of the members in good 09 standing voting 10  (1) at a general or special membership meeting after reasonable notice 11 of the intention to vote on the question; or 12  (2) in a membership referendum. 13  Sec. 23.40.320. Protection of the right to sue. (a) Except as provided in (b) 14 of this section, a labor organization may not limit the right of a member of 15  (1) the labor organization to institute an action in a court, or a 16 proceeding before an administrative agency, whether the labor organization or its 17 officers are named as defendants or respondents in the action or proceeding; or 18  (2) a labor organization to appear as a witness in a judicial, legislative, 19 or administrative proceeding, including a grievance proceeding or an arbitration 20 proceeding, to petition the legislature, or to communicate with a legislator. 21  (b) A labor organization may require a member to exhaust reasonable hearing 22 procedures within the organization, not to exceed a two-month lapse of time following 23 the member's commencement of the proceeding, before instituting legal or 24 administrative proceedings against the labor organization or an officer of the labor 25 organization. 26  (c) An interested public employer or employer association may not directly or 27 indirectly finance, encourage, appear in, or participate in, except as a party, an action, 28 proceeding, or petition described in (a) of this section. 29  Sec. 23.40.330. Safeguards against improper disciplinary action. (a) A 30 labor organization may not fine, suspend, expel, or otherwise discipline a member or 31 an officer of the organization except for nonpayment of dues unless the member or 01 officer has been 02  (1) served with written specific charges; 03  (2) given a reasonable time to prepare a defense; and 04  (3) afforded a fair hearing. 05  (b) Any part of the constitution or bylaws of a labor organization that is 06 inconsistent with this section is void. 07  (c) A person whose rights have been infringed by a violation of 08 AS 23.40.340(a) or this section may bring a civil action in superior court for 09 appropriate relief, including injunctions. 10  (d) Nothing in AS 23.40.300 - 23.40.350 limits the rights and remedies of a 11 member of a labor organization under state or federal law, or before a court or other 12 tribunal, or under the constitution and bylaws of a labor organization. 13  Sec. 23.40.340. Right to copies of a collective bargaining agreement. (a) 14 In the case of a local labor organization, the secretary or the equivalent officer shall 15 forward a copy of the collective bargaining agreement made by the labor organization 16 with a public employer to an employee who requests a copy and whose rights as an 17 employee are directly affected by the agreement. In the case of a labor organization 18 other than a local labor organization, the secretary or the equivalent officer shall 19 forward a copy of the agreement to each constituent unit that has members directly 20 affected by the agreement. The secretary or the equivalent officer shall maintain at 21 the principal office of that labor organization copies of the agreements made or 22 received by the labor organization. If the labor organization does not have its principal 23 office in this state, it shall make the copies available at a location in this state. The 24 copies shall be available for inspection by a member or employee whose rights are 25 affected by the agreement. The provisions of AS 23.40.330(c) apply in the 26 enforcement of this section. 27  (b) A collective bargaining agreement between a labor organization and a 28 public employer, including extensions, modifications, and amendments of the 29 agreement, is a public record under AS 09.25.110. 30  Sec. 23.40.350. Information concerning the Public Employment Relations 31 Act. A labor organization shall inform its members of the provisions of this chapter. 01 Article 4. Reporting by Labor Organizations and Employers. 02  Sec. 23.40.400. Reporting by labor organizations. (a) A labor organization 03 shall adopt a constitution and bylaws and shall file copies of them with the 04 commissioner together with a report signed by the organization's president and 05 secretary or the equivalent officers containing 06  (1) the name of the labor organization, its mailing address, and any 07 other address at which it maintains its principal office or keeps the records referred to 08 in AS 23.40.400 - 23.40.470; 09  (2) the name and title of each of the organization's officers; 10  (3) the amount of the initiation fee or fees required from a new or 11 transferred member and hiring hall fees required by the reporting labor organization; 12  (4) the amount of the regular dues or fees or other periodic payments 13 required to remain a member of the labor organization and the service fee required of 14 an employee subject to an agreement authorized by AS 23.40.110(b); and 15  (5) detailed statements, or references to specific provisions of 16 documents filed under this subsection that contain the required statements, showing the 17 provisions made and procedures followed with respect to 18  (A) qualifications for or restrictions on membership; 19  (B) the levying of assessments; 20  (C) participation in insurance or other benefit plans; 21  (D) authorization for disbursement of funds of the labor 22 organization; 23  (E) the audit of financial transactions of the labor organization; 24  (F) calling regular and special meetings; 25  (G) selection of officers, stewards, and representatives to other 26 bodies composed of labor organizations' representatives with a specific 27 statement of the manner in which each officer was elected, appointed, or 28 otherwise selected; 29  (H) discipline or removal of officers or agents for breaches of 30 trust; 31  (I) imposition of fines, suspensions, and expulsions of members, 01 including the grounds for the action and provisions made for notice, hearing, 02 judgment on the evidence, and appeal procedures; 03  (J) authorization for bargaining demands; 04  (K) ratification of contract terms; 05  (L) authorization for strikes; and 06  (M) the issuance of work dispatches. 07  (b) A labor organization shall report a change in the information required by 08 (a) of this section to the commissioner at the time the labor organization files the 09 annual financial report required by (c) of this section. 10  (c) Except as provided in (e) of this section, a labor organization shall file 11 annually with the commissioner a financial report for the preceding fiscal year, signed 12 by its president and treasurer or the equivalent officers, containing the information 13 required by this subsection in adequate detail to accurately disclose the organization's 14 financial condition and operations. The financial report must be organized in 15 categories prescribed by the commissioner that permit the identification of costs 16 associated with political, social, fraternal, or other activities not incident to the 17 negotiation or administration of a collective bargaining agreement or the adjustment 18 of grievances and must contain 19  (1) assets and liabilities of the organization at the beginning and end 20 of the fiscal year; 21  (2) receipts of any kind and the sources for the receipts; 22  (3) salary, allowances, and other direct or indirect disbursements, 23 including reimbursed expenses, to each officer, employee, consultant, or contractor 24 who, during the fiscal year, received more than $1,000 in the aggregate from the labor 25 organization and any other labor organization affiliated with it or with which it is 26 affiliated or that is affiliated with the same national or international labor organization; 27  (4) direct and indirect loans made to an officer, employee, or member 28 that aggregated more than $250 during the fiscal year, together with a statement of the 29 purpose, security, if any, and arrangements for repayment; 30  (5) direct and indirect loans to a business enterprise, together with a 31 statement of the purpose, security, if any, and arrangements for repayment; 01  (6) any payment of money or other thing of value and any expenditure, 02 including compensation and reimbursed expenses paid to employees or agents of the 03 labor organization, that is intended to influence the outcome of an election of a 04 candidate, a ballot proposition, or the passage or defeat of legislation; and 05  (7) other disbursements made by the labor organization and the 06 purposes of those disbursements. 07  (d) A labor organization required to submit a report under this chapter shall 08 maintain the information required to be reported in this state and make it available to 09 all of its members and fee payers without cost to the member or fee payer. 10  (e) A labor organization that has established the amount of its service fee as 11 a result of the decision or order of an impartial arbitrator or court may comply with 12 the reporting requirements set out in (c) of this section by annually filing a copy of the 13 order or decision with the commissioner. 14  Sec. 23.40.410. Reporting by officers and employees of labor organizations. 15 (a) Except for an employee performing exclusively clerical or custodial services and 16 except as provided in (c) and (d) of this section, an officer or employee of a labor 17 organization who was paid more than $250, other than reimbursement for actual 18 expenses, by the labor organization in a calendar year shall file with the commissioner 19 a signed report describing for the preceding fiscal year 20  (1) income or other benefit with monetary value, including reimbursed 21 expenses, that the individual or the individual's spouse, spousal equivalent, or minor 22 child derived directly or indirectly from a public employer whose employees are 23 represented by the labor organization or whose employees the labor organization is 24 actively seeking to represent, except payments and other benefits received as a bona 25 fide employee of the employer and except permanent fund dividends; 26  (2) any transaction in which the individual or the individual's spouse, 27 spousal equivalent, or minor child engaged directly or indirectly involving a grant 28 from, contract with, or loan to or from a public employer whose employees are 29 represented by the labor organization or whose employees the labor organization is 30 actively seeking to represent; 31  (3) stocks, bonds, securities, or other interest, legal or equitable, that 01 the individual or the individual's spouse, spousal equivalent, or minor child directly 02 or indirectly held in, and income or other benefit with monetary value, including 03 reimbursed expenses, that the individual or the individual's spouse, spousal equivalent, 04 or minor child directly or indirectly derived from, a business 05  (A) a substantial part of which consists of buying from, selling 06 or leasing to, or otherwise dealing with, a public employer whose employees 07 are represented by the labor organization or whose employees the labor 08 organization is actively seeking to represent; 09  (B) a part of which consists of buying from, or selling or 10 leasing directly or indirectly to, or otherwise dealing with the labor 11 organization; 12  (4) a direct or indirect business transaction or arrangement between the 13 individual or the individual's spouse, spousal equivalent, or minor child and a public 14 employer whose employees the individual's organization represents or is actively 15 seeking to represent, except work performed and payments and benefits received as a 16 bona fide employee of the employer and except the receipt, purchase, or sale of goods 17 or services in the regular course of business at prices generally available to a state 18 resident; 19  (5) a payment of money or other thing of value, including reimbursed 20 expenses, but not including a permanent fund dividend, that the individual or the 21 individual's spouse, spousal equivalent, or minor child received directly or indirectly 22 from a public employer; 23  (6) a payment of money greater than $100 or other thing of value worth 24 more than $100, including reimbursed expenses, made by the individual or the 25 individual's spouse, spousal equivalent, or minor child to an elected or appointed 26 official of a public employer or a candidate for public office in a state or local 27 election. 28  (b) The provisions of (a)(1) - (5) of this section may not be construed to 29 require an officer or employee to report bona fide investments in securities traded on 30 a securities exchange registered as a national securities exchange under 15 U.S.C. 78a - 31 78lll (Securities Exchange Act of 1934), in shares in an investment company registered 01 under 15 U.S.C. 80a-1 - 80a-64 (Investment Company Act), or in securities of a public 02 utility holding company registered under 15 U.S.C. 79 - 79z-6 (Public Utility Holding 03 Company Act of 1935), or to report income derived from those investments. 04  (c) This section may not be construed to require an officer or employee of a 05 labor organization to file a report under (a) of this section unless the individual or the 06 individual's spouse, spousal equivalent, or minor child holds or has held an interest, 07 has received income or any other benefit with monetary value or a loan, or has 08 engaged in a transaction described in this section. 09  (d) An officer or employee of a labor organization that has established the 10 amount of its service fee as a result of the decision or order of an impartial arbitrator 11 or court and is complying with the reporting requirements of AS 23.40.400(c) by filing 12 a copy of that decision or order is not required to file the report required by this 13 section. 14  Sec. 23.40.420. Reports of public employers and others. (a) An officer or 15 elected or appointed official of a public employer who in a fiscal year made a 16 payment, loan, expenditure, promise, agreement, or other transaction covered by this 17 section shall file a report that meets the requirements of (b) of this section. The report 18 shall list 19  (1) any payment or loan, direct or indirect, of money or other thing of 20 value, including reimbursed expenses, or a promise or agreement for a payment or 21 loan, to a labor organization, or to an officer, agent, shop steward, or other 22 representative of a labor organization, or to an employee of a labor organization, 23 except 24  (A) a payment of money or another thing of value in 25 satisfaction of a judgment of a court or a decision or award of an arbitrator or 26 impartial chair, or in compromise, adjustment, settlement, or release of a claim, 27 complaint, grievance, or dispute in the absence of fraud or duress; 28  (B) money deducted from the wages of employees in payment 29 of membership dues in a labor organization if the employer has received 30 written authorization from the employee for the deduction under AS 23.40.220; 31  (C) a payment to a benefit program authorized by a collective 01 bargaining agreement, except payments and other benefits made to a person as 02 a bona fide employee of the public employer if making the payments is a part 03 of the normal and regular duties of the officer or elected or appointed official; 04  (D) a payment or other benefit made to the person as a bona 05 fide employee of the public employer if making the payment is a part of the 06 normal and regular duties of the officer or elected or appointed official; 07  (2) any payment, including reimbursed expenses, made by an officer 08 or elected or appointed official to employees of the public employer for whom the 09 officer or official works, or a group or committee of employees, to cause the employee 10 or group or committee of employees to persuade other employees to exercise or not 11 to exercise, or to persuade them as to the manner of exercising, the right to organize 12 and bargain collectively under AS 23.40.080 unless the payments were 13 contemporaneously or previously disclosed to the other employees; 14  (3) any expenditure during the fiscal year if an object of the 15 expenditure, directly or indirectly, is to interfere with, restrain, or coerce employees 16 in the exercise of the right to organize and bargain collectively under AS 23.40.080, 17 or is to obtain information concerning the activities of employees or a labor 18 organization in connection with a labor dispute involving the employer, except for use 19 solely in conjunction with an administrative or arbitral proceeding or a criminal or civil 20 judicial proceeding; 21  (4) any agreement or arrangement with an independent contractor or 22 organization under which the contractor or organization undertakes 23  (A) activities if an object of the agreement or arrangement, 24 directly or indirectly, is to persuade employees to exercise or not to exercise, 25 or persuade employees as to the manner of exercising, the right to organize and 26 bargain collectively under AS 23.40.080; or 27  (B) to supply the employer with information concerning the 28 activities of employees or a labor organization in connection with a labor 29 dispute involving the employer, except information for use solely in 30 conjunction with an administrative or arbitral proceeding or a criminal or civil 31 judicial proceeding; 01  (5) any payment, including reimbursed expenses, under an agreement 02 or arrangement described in (4) of this subsection. 03  (b) A report under this section must be filed with the commissioner in a form 04 prescribed by the commissioner, signed by the principal executive officer, showing in 05 detail 06  (1) the date and amount of each payment, loan, expenditure, promise, 07 agreement, or arrangement; 08  (2) the name, address, and position, if any, in any firm or labor 09 organization of the person to whom the transaction in (1) of this subsection was made; 10 and 11  (3) a full explanation of the circumstances of the transactions under (1) 12 of this subsection, including the terms of an agreement or understanding under which 13 the transactions were made. 14  (c) A person shall file, within 30 days after entering into an agreement or 15 arrangement covered by this section, a report with the commissioner containing the 16 name under which the person is engaged in doing business, the address of its principal 17 office, and a detailed statement of the terms and conditions of the agreement or 18 arrangement if the person, under an agreement or arrangement with a public employer, 19 undertakes activities where an object of the activity is, directly or indirectly, to 20  (1) persuade employees to exercise or not to exercise, or persuade 21 employees as to the manner of exercising, the right to organize and bargain 22 collectively through representatives of their own choosing; or 23  (2) supply an employer with information concerning the activities of 24 employees or a labor organization in connection with a labor dispute involving the 25 employer, except information for use solely in conjunction with an administrative or 26 arbitral proceeding or a criminal or civil judicial proceeding. 27  (d) This section may not be construed as an amendment to or modification of 28 the rights protected by AS 23.40.110. 29  (e) In this section, "interfere with, restrain, or coerce" means interference, 30 restraint, and coercion that, if done with respect to the exercise of rights guaranteed 31 in AS 23.40.080, would constitute an unfair labor practice under AS 23.40.110. 01  Sec. 23.40.430. Exemptions for attorney-client and deliberative 02 communications. (a) AS 23.40.400 - 23.40.470 may not be construed to require an 03 attorney who is a member in good standing of the state bar to include in a report 04 required to be filed under AS 23.40.400 - 23.40.470, information that was lawfully 05 communicated to the attorney by a client in the course of an attorney-client 06 relationship. 07  (b) If a note, letter, memorandum, or other writing between elected or 08 appointed officials of a public employer or between an elected or appointed official 09 or a person who formulates, effectuates, or determines management policies and a 10 person who assists or acts in a confidential capacity in labor relations matters is 11 deliberative in nature and does not constitute a final administrative determination, it 12 is privileged and confidential and is not a public document. 13  Sec. 23.40.440. Reports; public records. (a) The reports and documents filed 14 with the commissioner under AS 23.40.400, 23.40.410, 23.40.420, and 23.40.470 are 15 public records under AS 09.25.110. 16  (b) A person required to file a report under this chapter shall maintain records 17 at a location in the state on the matters required to be reported for a period of not less 18 than five years after the filing of the documents based on the information that the 19 records contain. The records must 20  (1) provide the necessary basic detailed information and data from 21 which the documents filed with the commissioner may be verified, explained, or 22 clarified, and checked for accuracy and completeness; 23  (2) include vouchers, worksheets, receipts, and applicable resolutions. 24  (c) A labor organization shall file the initial report required under 25 AS 23.40.400 within 30 days after the date on which the labor organization first 26 becomes subject to this chapter. A person required to file a report under AS 23.40.400 27 - 23.40.420 shall file the report within 90 days after the end of the person's fiscal year. 28  Sec. 23.40.450. Criminal provisions. (a) A person who intentionally violates 29 a provision of AS 23.40.400 - 23.40.470 is guilty of a class A misdemeanor. 30  (b) A person who makes a false statement or representation of a material fact, 31 knowing it to be false, or who knowingly fails to disclose a material fact, in a 01 document, report, or other information required under AS 23.40.400 - 23.40.470 is 02 guilty of a class A misdemeanor. 03  (c) A person who intentionally makes a false entry in or intentionally 04 withholds or destroys books, records, reports, or statements required to be kept under 05 AS 23.40.400 - 23.40.470 is guilty of a class A misdemeanor. 06  (d) An individual required to sign reports under AS 23.40.400 - 23.40.430 07 shall be personally responsible for the filing of the report and for any statement 08 contained in the report that the person knows to be false. 09  Sec. 23.40.460. Civil enforcement. When a person has violated or is about 10 to violate a provision of AS 23.40.400 - 23.40.470, the commissioner may bring a civil 11 action for appropriate relief, including injunctions. 12  Sec. 23.40.470. Auditing and accounting reports. A company or individual 13 that is engaged to provide auditing or accounting services necessary to provide the 14 information required by AS 23.40.400 - 23.40.470 shall file annually with the 15 commissioner, with respect to each fiscal year during which an audit or accounting 16 was performed, a report in the form and detail required by the commissioner by 17 regulation. The report shall be filed by the president and treasurer or the equivalent 18 principal officers of the auditing or accounting company describing the company's 19 experience and credentials, including information as to the payments received, 20 administrative and legal expenses, and other related data and information the 21 commissioner determines to be necessary to the public interest and to carry out the 22 policy of AS 23.40.400 - 23.40.470. 23 Article 5. Trusteeships. 24  Sec. 23.40.500. Trusteeship reports. (a) A labor organization that has or 25 assumes trusteeship over a subordinate labor organization shall file with the 26 commissioner within 30 days after the establishment of the trusteeship, and 27 semiannually thereafter, a report signed by its president and treasurer or the equivalent 28 principal officers and by the trustees of the subordinate labor organization. The report 29 must contain 30  (1) the name and address of the subordinate organization; 31  (2) the date the trusteeship was established; 01  (3) a detailed statement of the reason or reasons for establishing or 02 continuing the trusteeship; and 03  (4) the nature and extent of participation by the membership of the 04 subordinate organization in the selection of delegates to represent the subordinate 05 organization in regular or special conventions, in other policy determining bodies, and 06 in the election of officers of the labor organization that has assumed trusteeship over 07 the subordinate organization. 08  (b) The initial report must also include a full and complete account of the 09 financial condition of the subordinate organization as of the time trusteeship was 10 established. During the continuance of a trusteeship, the labor organization that has 11 assumed trusteeship over the subordinate labor organization shall file on behalf of the 12 subordinate labor organization the annual report required by AS 23.40.400 signed by 13 the president and treasurer or the equivalent principal officers of the labor organization 14 that has assumed the trusteeship and by the trustees of the subordinate labor 15 organization. 16  (c) A person who intentionally violates this section is guilty of a class A 17 misdemeanor. 18  (d) A person who makes a false statement or representation of a material fact, 19 knowing it to be false, or who knowingly fails to disclose a material fact in any report 20 required under this section or intentionally makes a false entry in or intentionally 21 withholds, conceals, or destroys documents, books, records, reports, or statements upon 22 which the report is based is guilty of a class A misdemeanor. 23  (e) An individual required to sign a report under this section shall be 24 personally responsible for the filing of the report and for any statement contained in 25 the report that the individual knows to be false. 26  Sec. 23.40.510. Conduct and purposes of a trusteeship. A trusteeship shall 27 be established and administered by a labor organization over a subordinate body only 28 in accordance with the constitution and bylaws of the organization that has assumed 29 trusteeship over the subordinate body and for the purpose of correcting corruption or 30 financial malpractice, assuring the performance of collective bargaining agreements or 31 other duties of a bargaining representative, restoring democratic procedures, or 01 otherwise carrying out the legitimate objects of the labor organization. 02  Sec. 23.40.520. Unlawful acts relating to labor organizations under 03 trusteeship. (a) Except as provided in (b) of this section, during a period when a 04 subordinate body of a labor organization is in trusteeship, it is unlawful to 05  (1) count the votes of delegates from the body in a convention or 06 election of officers of the labor organization unless the delegates have been chosen by 07 secret ballot in an election in which all the members in good standing of the 08 subordinate body were eligible to participate; or 09  (2) transfer to the organization current receipts or other funds of the 10 subordinate body except the normal per capita tax or assessments payable by 11 subordinate bodies not in trusteeship. 12  (b) This section does not prevent the distribution of the assets of a labor 13 organization in accordance with its constitution and bylaws upon the bona fide 14 dissolution of the labor organization. 15  (c) A person who intentionally violates a provision of AS 23.40.500 - 16 23.40.540 is guilty of a class A misdemeanor. 17  (d) Upon the written complaint of a member or subordinate body of a labor 18 organization alleging that the organization has violated the provisions of AS 23.40.500 19 - 23.40.540, the commissioner shall investigate the complaint. If the commissioner 20 finds probable cause to believe that the violation has occurred and has not been 21 remedied, the commissioner shall, without disclosing the identity of the complainant, 22 bring a civil action in superior court for appropriate relief, including injunctive relief. 23 A member or subordinate body of a labor organization affected by a violation of 24 AS 23.40.500 - 23.40.540 may bring a civil action in superior court for appropriate 25 relief, including injunctive relief. 26  Sec. 23.40.530. Duration of trusteeship. In a proceeding under AS 23.40.500 27 - 23.40.540, a trusteeship established by a labor organization in conformity with the 28 procedural requirements of its constitution and bylaws and authorized or ratified after 29 a fair hearing before the executive board or another appropriate body under its 30 constitution or bylaws is presumed valid for a period of 18 months from the date of 31 its establishment. The trusteeship may not be attacked during that period except upon 01 clear and convincing evidence that the trusteeship was not established or maintained 02 in good faith for a purpose allowable under AS 23.40.500 - 23.40.540. After the 03 expiration of 18 months, the trusteeship is presumed invalid and the court shall require 04 its discontinuance unless the labor organization shows by clear and convincing 05 evidence that the continuation of the trusteeship is necessary for a purpose allowable 06 under AS 23.40.500 - 23.40.540. If it is determined that continuance of the trusteeship 07 is necessary, the court may dismiss a complaint to dissolve the trusteeship or retain 08 jurisdiction of the cause on conditions and for a period as the court considers 09 appropriate. 10  Sec. 23.40.540. Complaint by the commissioner. The rights and remedies 11 provided by AS 23.40.500 - 23.40.540 are in addition to other rights and remedies at 12 law or in equity. However, if the commissioner files a complaint, the jurisdiction of 13 the superior court in which the complaint is filed over the trusteeship is exclusive. 14 Article 6. Labor Organization Elections and Removal of Officers. 15  Sec. 23.40.600. Terms of office; election procedures. (a) A labor 16 organization shall elect its officers not less often than once every three years by secret 17 ballot among the members in good standing. 18  (b) A labor organization and its officers shall comply with the reasonable 19 requests of a candidate for office in the organization to distribute by mail or otherwise, 20 at the candidate's expense, campaign literature in aid of the individual's candidacy to 21 all members in good standing of the labor organization and shall refrain from 22 discrimination in favor of or against a candidate with respect to the use of lists of 23 members. A bona fide candidate for office in the labor organization may bring suit 24 in the superior court to enforce the requirements of this subsection. Whenever a labor 25 organization or its officers authorize the distribution to members, by mail or otherwise, 26 of campaign literature on behalf of a candidate for office in the labor organization with 27 reference to the election, similar distribution at the request of any other bona fide 28 candidate shall be made by the labor organization and its officers with equal treatment 29 as to the expense of the distribution. Every bona fide candidate has the right, once 30 within the 30 days before an election of a labor organization in which the candidate 31 is standing for election, to inspect a list containing the names and last known addresses 01 of all members of the labor organization who are subject to a collective bargaining 02 agreement requiring membership in the organization or payment of a service fee. The 03 labor organization shall keep the list at its principal office and shall designate an 04 official of the organization to maintain it. If the labor organization does not have its 05 principal office in this state, the list shall be made available in the state. Adequate 06 safeguards to ensure a fair election shall be provided, including the right of a candidate 07 to have an observer at the polls and at the counting of the ballots. 08  Sec. 23.40.610. Procedures for elections by secret ballot. (a) In an election 09 required by AS 23.40.600 - 23.40.660 that is to be held by secret ballot, a reasonable 10 opportunity shall be given for the nomination of candidates. A member in good 11 standing is eligible to be a candidate and to hold office, subject to reasonable 12 qualifications uniformly imposed, and has the right to vote for or otherwise support the 13 candidate or candidates of the member's choice without being subject to penalty, 14 discipline, or improper interference or reprisal of any kind by the labor organization 15 or any member of the organization. 16  (b) Not less than 30 days before the election, the organization shall mail 17 notice of the election to each member at the member's last known home address. 18  (c) A member in good standing is entitled to one vote. A member whose dues 19 have been withheld by the member's employer under AS 23.40.220 may not be 20 declared ineligible to vote or to be a candidate for office in the organization by reason 21 of alleged delay or default in the payment of dues. 22  (d) The votes cast by members of a local labor organization shall be counted 23 separately and the results shall be published separately. 24  (e) The election officials designated in the constitution or bylaws, or the 25 secretary if no other official is designated, shall preserve for one year the ballots and 26 all other records pertaining to the election. 27  (f) The election shall be conducted in accordance with the constitution and 28 bylaws of the labor organization insofar as they are not inconsistent with the provisions 29 of AS 23.40.600 - 23.40.660. 30  Sec. 23.40.620. Selection of officers by a convention. (a) When officers are 31 chosen by a convention of delegates elected by secret ballot, the convention shall be 01 conducted in accordance with the constitution and bylaws of the labor organization 02 insofar as they are not inconsistent with the provisions of AS 23.40.600 - 23.40.660. 03  (b) The officials designated in the constitution and bylaws, or the secretary if 04 no other official is designated, shall preserve for one year the credentials of the 05 delegates and all minutes and other records of the convention pertaining to the election 06 of officers. 07  Sec. 23.40.630. Limitation on use of dues for candidacies. Money received 08 by a labor organization as dues, assessments, or similar levy, and money of a public 09 employer may not be contributed or applied to promote the candidacy of a person in 10 an election subject to the provisions of AS 23.40.600 - 23.40.660. However, a labor 11 organization may pay for notices, factual statements of issues not involving candidates, 12 and other expenses necessary for the holding of an election. 13  Sec. 23.40.640. Removal of officers by the labor relations agency. (a) If 14 the labor relations agency, upon application of a member of a labor organization, finds 15 after hearing that the constitution and bylaws of the labor organization do not provide 16 an adequate procedure for the removal of an elected officer guilty of serious 17 misconduct, the labor relations agency may authorize removal under (b) of this section. 18 (b) If the labor relations agency makes the finding required by (a) of this 19 section, the members in good standing of the labor organization, after notice and 20 hearing, may remove the officer for cause by voting in a secret ballot conducted by 21 the officers of the labor organization in accordance with its constitution and bylaws 22 to the extent that they are not inconsistent with the provisions of AS 23.40.600 - 23 23.40.660. 24  (c) The labor relations agency shall adopt regulations setting minimum 25 standards and procedures for determining the adequacy of the removal procedures 26 under this section. 27  Sec. 23.40.650. Complaints. (a) A member of a labor organization may file 28 a complaint with the labor relations agency alleging the violation of a provision of 29 AS 23.40.600 - 23.40.660, including violation of the constitution or bylaws of the labor 30 organization pertaining to the election and removal of officers, if the member has 31  (1) exhausted the remedies available under the constitution and bylaws 01 of the labor organization and of any parent body; or 02  (2) invoked the available remedies without obtaining a final decision 03 within three calendar months after their invocation. 04  (b) An election challenge under this section must be filed within 30 days after 05 the member becomes eligible under (a) of this section to file the challenge. The 06 challenged election shall be presumed valid pending a final decision on the challenge 07 as provided in this section. In the interim, the elected officers of the organization shall 08 conduct the affairs of the organization, or the organization's affairs shall be conducted 09 as provided in the organization's constitution and bylaws. 10  (c) The labor relations agency shall investigate a complaint filed under this 11 section. If it finds probable cause to believe that a violation of AS 23.40.600 - 12 23.40.660 has occurred and has not been remedied, it shall, within 60 days after the 13 filing of the complaint, bring a civil action against the labor organization in the 14 superior court. The civil action must seek to set aside the invalid election, if any, and 15 to direct the conduct of an election or hearing and vote upon the removal of officers 16 under the supervision of the agency and in accordance with the provisions of 17 AS 23.40.600 - 23.40.660. The court may take actions it considers proper to preserve 18 the assets of the labor organization. 19  (d) In an action brought under (c) of this section, the court shall declare an 20 election void and direct the conduct of a new election under supervision of the labor 21 relations agency and, so far as lawful and practicable, in conformity with the 22 constitution and bylaws of the labor organization if the court finds, upon a 23 preponderance of the evidence after a trial upon the merits, that 24  (1) an election has not been held within the time prescribed by 25 AS 23.40.600; or 26  (2) the violation of AS 23.40.600 - 23.40.640 may have affected the 27 outcome of an election. 28  (e) After an election held under (d) of this section, the labor relations agency 29 shall promptly certify to the court the names of the persons elected. The court shall 30 enter a decree declaring those persons to be the officers of the labor organization. If 31 the proceeding is for the removal of officers under this section, the labor relations 01 agency shall certify the results of the vote, and the court shall enter a decree declaring 02 whether those persons have been removed as officers of the labor organization. 03  (f) An order directing an election, dismissing a complaint, or designating 04 elected officers of a labor organization is appealable in the same manner as the final 05 judgment in a civil action, but an order directing an election may not be stayed 06 pending appeal. 07  Sec. 23.40.660. Application of other laws. Except as provided in 08 AS 23.40.600 - 23.40.660, a labor organization may not be required to conduct 09 elections of officers with greater frequency or in a different form or manner than is 10 required by its own constitution or bylaws. The provisions of AS 23.40.600 - 11 23.40.660 do not affect rights and remedies to enforce, before the conduct of the 12 election, the constitution and bylaws of a labor organization with respect to elections. 13 The remedy provided by AS 23.40.600 - 23.40.660 for challenging an election already 14 conducted is exclusive. 15 Article 7. Safeguards for Labor Organizations. 16  Sec. 23.40.700. Fiduciary responsibility of officers of labor organizations. 17 (a) The officers, agents, shop stewards, and other representatives of a labor 18 organization occupy positions of trust in relation to the organization and its members 19 as a group. It is, therefore, the duty of each of those persons, taking into account the 20 special problems and functions of a labor organization, to 21  (1) hold its money and property solely for the benefit of the 22 organization and its members and to manage, invest, and expend the same in 23 accordance with its constitution and bylaws and resolutions of the governing bodies; 24  (2) refrain from dealing with the organization as an adverse party, or 25 on behalf of an adverse party, in any matter connected with the individual's duties and 26 to refrain from holding or acquiring any pecuniary or personal interest that conflicts 27 with the interests of the organization; and 28  (3) account to the organization for any profit received by the individual 29 in whatever capacity in connection with transactions conducted by the individual or 30 under the individual's direction on behalf of the organization. 31  (b) A general exculpatory provision in the constitution or bylaws of a labor 01 organization or a general exculpatory resolution of a governing body purporting to 02 relieve a representative of a labor organization of liability for breach of the duties 03 declared by this section is void as against public policy. 04  Sec. 23.40.710. Action by member. When a representative of a labor 05 organization is alleged to have violated the duties declared in AS 23.40.700(a) and the 06 labor organization or its governing board or officers refuse or fail to sue or recover 07 damages or secure an accounting or other appropriate relief within a reasonable time 08 after being requested to do so by a member of the bargaining unit, the member may 09 sue the representative in superior court to recover damages or secure an accounting or 10 other appropriate relief for the benefit of the labor organization. 11  Sec. 23.40.720. Embezzlement. A person who embezzles, steals, or 12 unlawfully and intentionally abstracts or converts to the person's own use, or the use 13 of another, any of the money, funds, securities, property, or other assets of a labor 14 organization of which the person is an officer, or by which the person is employed 15 directly or indirectly, is guilty of a class A misdemeanor. 16  Sec. 23.40.730. Bonding. (a) Except as provided in (d) of this section, a 17 representative or employee of a labor organization, or of a trust in which a labor 18 organization is interested, who handles funds or other property of the labor 19 organization or trust shall be bonded to provide protection against loss by reason of 20 acts of fraud or dishonesty on the person's part directly or through connivance with 21 others. The bond of each person shall be fixed at the beginning of the organization's 22 fiscal year and shall be in an amount not less than 10 percent of the funds handled by 23 the person and the person's predecessor or predecessors, if any, during the preceding 24 fiscal year, but in no case more than $500,000. If the labor organization or the trust 25 in which a labor organization is interested does not have a preceding fiscal year, the 26 amount of the bond shall be, in the case of a local labor organization, not less than 27 $1,000, and, in the case of another labor organization or of a trust in which a labor 28 organization is interested, not less than $10,000. 29  (b) A bond under this section must be individual or schedule in form and shall 30 have a corporate surety company as surety. A person who is not covered by a bond 31 may not receive, handle, disburse, or otherwise exercise custody or control of the funds 01 or other property of a labor organization or of a trust in which a labor organization is 02 interested. 03  (c) A bond under this section may not be placed through an agent or broker 04 or with a surety company in which a labor organization or a representative of a labor 05 organization has a direct or indirect interest. A surety company through which a bond 06 under this section is placed shall be a corporate surety that holds a grant of authority 07 from the Secretary of the Treasury under the Act of July 30, 1947 (6 U.S.C. 6-13), as 08 an acceptable surety on federal bonds; however, when, in the opinion of the 09 commissioner, a labor organization has made other bonding arrangements that would 10 provide the protection required by this section at a comparable cost or less, the 11 commissioner may exempt the labor organization from placing a bond through a surety 12 company holding a grant of authority required by this subsection. 13  (d) This section does not apply to a labor organization whose property and 14 annual financial receipts are equal to or less than $5,000 in value. 15  (e) A person who intentionally violates this section is guilty of a class A 16 misdemeanor. 17  Sec. 23.40.740. Making loans. (a) A labor organization may not directly or 18 indirectly make a loan or loans to an officer or employee of the organization that result 19 in a total indebtedness on the part of the officer or employee to the labor organization 20 in excess of $2,000. 21  (b) A labor organization or public employer may not directly or indirectly pay 22 the fine of an officer or employee convicted of an intentional violation of 23 AS 23.40.700 - 23.40.750. 24  (c) A person who intentionally violates this section is guilty of a class A 25 misdemeanor. 26  Sec. 23.40.750. Prohibitions against certain persons holding office. (a) 27 Except as provided in (b) of this section, for a period of 13 years after a conviction 28 of a crime listed in (d) of this section or after the end of imprisonment for a crime 29 listed in (d) of this section, whichever is later, a person who has been convicted of or 30 served a part of a prison term resulting from a conviction of a crime set out in (d) of 31 this section may not serve 01  (1) as a consultant or advisor to a labor organization; 02  (2) as an officer, director, trustee, member of an executive board, or 03 similar governing body, business agent, manager, organizer, employee, or 04 representative in any capacity of a labor organization; 05  (3) as a labor relations consultant or advisor to a public employer, or 06 as an officer, director, agent, or employee of a group or association of public 07 employers dealing with a labor organization or in a position having specific collective 08 bargaining authority or direct responsibility in the area of labor-management relations 09 on behalf of a public employer; 10  (4) in a position that entitles the person to a share of the proceeds of, 11 or as an officer, executive, or administrative employee of, an entity whose activities 12 are in whole or in substantial part devoted to providing goods or services to a labor 13 organization; or 14  (5) in a capacity, other than in the person's capacity as a member of 15 the labor organization, that involves decision-making authority concerning, or decision- 16 making authority over, or custody or control of the money, funds, assets, or property of, a 17 labor organization. 18  (b) The period of the prohibition against service under (a) of this section may 19 be shortened if the sentencing court, on the motion of the person convicted, sets a 20 lesser period of at least three years after the conviction or after the end of 21 imprisonment, whichever is later, or unless before the end of the three years, in the 22 case of a person convicted or imprisoned, 23  (1) the person's citizenship rights, having been revoked as a result of 24 the conviction, have been fully restored; or 25  (2) the sentencing court determines that the person's service in a 26 capacity referred to in (a) of this section would not be contrary to the purposes of 27 AS 23.40.700 - 23.40.750. 28  (c) Before making a determination under (b) of this section, the court shall 29 hold a hearing and shall give notice of the proceeding by certified mail to the 30 commissioner and to state and local prosecuting officials in the jurisdiction or 31 jurisdictions in which the person was convicted. A person may not knowingly hire, 01 retain, employ, or otherwise place another person to serve in a capacity in violation 02 of this section. 03  (d) This section applies to 04  (1) a felony; or 05  (2) a misdemeanor involving abuse or misuse of the person's position 06 or employment for a public employer or in a labor organization or employee benefit 07 plan to seek or obtain an illegal gain at the expense of the public or of the members 08 of the labor organization or the beneficiaries of the employee benefit plan. 09  (e) A person who intentionally violates this section is guilty of a class A 10 misdemeanor. 11  (f) For the purpose of this section, 12  (1) a person is considered to have been convicted and to be under the 13 disability of conviction from the date of the judgment of the trial court regardless of 14 whether that judgment remains under appeal; 15  (2) a period of parole may not be considered as part of a period of 16 imprisonment. 17  (g) Whenever a person (1) by operation of this section, has been barred from 18 office or other position in a labor organization as a result of a conviction, and (2) has 19 filed an appeal of that conviction, the individual employer or organization responsible 20 for payment of the salary shall place the salary that would be otherwise due the person 21 by virtue of that office or position in escrow. Payment of the salary into escrow shall 22 continue for the duration of the appeal or for the period of time during which the 23 salary would be otherwise due, whichever period is shorter. Upon the final reversal 24 of the person's conviction on appeal, the amounts in escrow shall be paid to the 25 person. Upon the final sustaining of the person's conviction on appeal, the amounts 26 in escrow shall be returned to the individual employer or organization responsible for 27 payment of those amounts. Upon final reversal of the person's conviction, that crime 28 no longer bars the person from assuming a position from which the person was 29 previously barred. 30  Sec. 23.40.790. Definition for AS 23.40.700 - 23.40.790. In AS 23.40.700 - 31 23.40.790, "representative of a labor organization" means an officer, agent, shop 01 steward, or other representative of a labor organization. 02 Article 8. Restrictions on Financial Transactions. 03  Sec. 23.40.800. Payment or lending of money. (a) It shall be unlawful for 04 a public employer, elected or appointed official, association of public employers, or 05 person who acts as a labor relations expert, advisor, or consultant to a public employer 06 or who has been designated to act in the interest of an employer in dealing with public 07 employees to pay, lend, or deliver, or agree to pay, lend, or deliver, money or other 08 thing of value to 09  (1) a representative of its employees; 10  (2) a labor organization or an officer or employee of a labor 11 organization that represents, seeks to represent, or would admit to membership, 12 employees of the public employer; 13  (3) an employee or group or committee of employees of the public 14 employer in excess of the employees' normal compensation to cause the employee, 15 group, or committee directly or indirectly to influence other employees in the exercise 16 of organizing and bargaining rights under this chapter; or 17  (4) an officer or employee of a labor organization with intent to 18 influence the officer or employee in respect to actions, decisions, or duties taken as a 19 representative of employees or as an officer or employee of the labor organization. 20  (b) It is unlawful for a person to request, demand, receive, or accept, or agree 21 to receive or accept, a payment, loan, or delivery of money or other thing of value 22 prohibited by (a) of this section. 23  (c) It is unlawful for a labor organization, or for a person acting as an officer, 24 agent, representative, or employee of a labor organization, to 25  (1) demand or accept from an officer or elected or appointed official 26 of a public employer money or other thing of value payable to the organization or to 27 an officer, agent, representative, employee, or member of the organization as a fee or 28 charge for refraining from the prosecution of a grievance, arbitration, or other 29 administrative proceeding or to secure resolution of a negotiation, grievance, 30 arbitration, or other administrative proceeding; 31  (2) offer, deliver, or cause to be delivered to an officer or elected or 01 appointed official, including candidates for public office, of a public employer, money 02 or other thing of value as a contribution to a political campaign, voter education 03 campaign, or defense fund if the purpose or effect of that contribution is to affect the 04 outcome of a negotiation, grievance, arbitration, or other administrative proceeding or 05 labor dispute between the public employer and the labor organization. 06  (d) This section does not apply with respect to 07  (1) money or other thing of value payable by an employer to 08  (A) an employee whose established duties include acting openly 09 for the employer in matters of labor relations or personnel administration; or 10  (B) an officer or employee of a labor organization who is also 11 an employee or former employee of the employer as compensation for, or by 12 reason of, the officer's or employee's service as an employee of the employer; 13  (2) the payment or delivery of money or other thing of value in 14 satisfaction of a judgment of a court or a decision or award of an arbitrator or 15 impartial chair or in compromise, adjustment, settlement, or release of any claim, 16 complaint, grievance, or dispute in the absence of fraud or duress; 17  (3) the sale or purchase of an article or commodity at the prevailing 18 market price in the regular course of business; 19  (4) money deducted from the wages of employees in payment of 20 service fees or membership dues of a labor organization if the employer has received 21 from each employee on whose account the deductions are made a written assignment 22 under an agreement authorized by AS 23.40.220; 23  (5) money or other thing of value paid to a trust fund that satisfies the 24 requirements of (e) of this section; 25  (6) money or other thing of value paid by an employer to a trust fund 26 established by the representative for the purpose of pooled vacation, holiday, 27 severance, or similar benefits, or defraying costs of apprenticeship or other training 28 programs; this paragraph does not require a labor organization or employer to bargain 29 on the establishment of a trust fund, and refusal to do so does not constitute an unfair 30 labor practice; 31  (7) money or other thing of value paid, lent, or delivered by a public 01 employer to a person covered by this section if the transaction is part of the 02 employer's regular activities and the person covered by this section does not receive 03 special treatment or special consideration of any sort because of the person's status 04 with regard to public employment labor relations. 05  (e) To qualify as a trust fund under (d)(5) of this section, 06  (1) the trust fund must be established by a representative of the labor 07 organization, for the sole and exclusive benefit of the employees of the employer, and 08 the employee's family and dependents, or of those employees, families, and dependents 09 jointly with the employees of other employers making similar payments and the 10 families and dependents of the other employees; 11  (2) payments must be held in trust for the purpose of paying, either 12 from principal or income or both, for the benefit of employees, the employee's family 13 and dependents, for medical or hospital care, pensions on retirement or death of 14 employees, compensation for injuries or illness resulting from occupational activity, 15 or insurance to provide any of the foregoing, or unemployment benefits or life 16 insurance, disability and health insurance, or accident insurance; 17  (3) the detailed basis on which the payments are to be made must be 18 specified in a written agreement with the employer, and employees and employers 19 must be equally represented in the administration of the trust fund, together with those 20 neutral persons that the representatives of the employers and the representatives of 21 employees may agree upon; the agreement must 22  (A) in the event the employer and employee groups deadlock 23 on the administration of the trust fund and there is no neutral person 24 empowered to break the deadlock, provide that the two groups shall agree on 25 an impartial arbitrator to decide the dispute, or in event of their failure to agree 26 within a reasonable length of time, on petition of either group, provide that the 27 superior court shall appoint an impartial arbitrator to decide the dispute; 28  (B) contain provisions for an annual audit of the trust fund, a 29 statement of the results of which shall be available for inspection by interested 30 persons at the principal office of the trust fund and at other places designated 31 in the written agreement; and 01  (4) those payments from the trust that are intended to be used for 02 providing pensions or annuities for employees must be made to a separate trust that 03 provides that the funds held in the separate trust cannot be used for any purpose other 04 than paying the pensions or annuities. 05 Article 9. Miscellaneous Provisions. 06  Sec. 23.40.840. Retention of rights under other state laws. Except as 07 explicitly provided to the contrary, nothing in this chapter 08  (1) reduces or limits the responsibilities of a labor organization or an 09 officer, agent, shop steward, or other representative of a labor organization, or of a 10 trust in which a labor organization is interested, under the laws of the state; or 11  (2) takes away a right or bars a remedy to which members of a labor 12 organization are entitled under federal or state law. 13  Sec. 23.40.850. Service of process. For the purposes of this chapter, service 14 of summons, subpoena, or other legal process of a court of the state upon an officer 15 or agent of a labor organization in the officer's or agent's capacity as such constitutes 16 service on the labor organization. 17  Sec. 23.40.860. Cooperation by other agencies. Each agency of the 18 executive branch of state government shall, to the extent permitted by state or federal 19 law, cooperate fully with the commissioner and the labor relations agency by providing 20 information and assistance, including disclosure of financial material and other records 21 related to collective bargaining and labor relations matters. 22  Sec. 23.40.870. Prohibition on certain discipline by a labor organization. 23 It shall be unlawful for a labor organization, an officer, agent, shop steward, or other 24 representative of a labor organization, or an employee of a labor organization to fine, 25 suspend, expel, or otherwise discipline a member for exercising a right to which the 26 member is entitled under this chapter. 27 Article 10. Definition for AS 23.40.300 - 23.40.900. 28  Sec. 23.40.900. Definition for AS 23.40.300 - 23.40.900. In AS 23.40.300 - 29 23.40.900, "employer" includes a person acting directly or indirectly as an employer 30 or an agent of an employer in relation to a public employee. 31 * Sec. 38. AS 14.16.050(a)(3) is amended to read: 01  (3) requirements relating to teacher employment and retirement: 02  (A) AS 14.14.105 and 14.14.107 (relating to sick leave); 03  (B) AS 14.20.095 - 14.20.215 (relating to the employment and 04 tenure of teachers); 05  (C) AS 14.20.220 (relating to the salaries of teachers 06 employed); 07  (D) AS 14.20.280 - 14.20.350 (relating to sabbatical leave 08 provisions for teachers); 09  (E)  AS 23.40 [AS 23.40.070 - 23.40.260] (authorizing collective 10 bargaining by certificated employees), except with regard to teachers who are 11 administrators and except that the board may delegate some or all of its 12 responsibilities under those statutes; 13  (F) AS 14.25 (provisions regarding the teachers' retirement 14 system); 15 * Sec. 39. AS 14.16.070 is amended to read: 16  Sec. 14.16.070. Applicability of other law.  AS 23.40 [AS 23.40.070 - 17 23.40.260] (Public Employment Relations Act) applies [APPLY] to the employees of 18 the state boarding school. 19 * Sec. 40. AS 23.05.360(f) is amended to read: 20  (f) For purposes of holding hearings, the members of the board sit in panels 21 of three members. The chair designates the panel that will consider a matter. Each 22 panel must include a representative of management, a representative of labor, and a 23 representative from the general public. A member of one panel may serve on the other 24 panel when the chair considers it necessary for the prompt administration of AS 23.40 25 [AS 23.40.070 - 23.40.260] (Public Employment Relations Act) or AS 42.40 (Alaska 26 Railroad Corporation Act). 27 * Sec. 41. AS 23.05.370(a) is amended to read: 28  (a) The agency shall 29  (1) establish its own rules of procedure; 30  (2) exercise general supervision and direct the activities of staff 31 assigned to it by the department; 01  (3) prepare and submit to the governor an annual report on labor 02 relations problems it has encountered during the previous year, including 03 recommendations for legislative action; the agency shall notify the legislature that the 04 report is available; 05  (4) serve as the labor relations agency under AS 23.40 [AS 23.40.070 - 06 23.40.260] (Public Employment Relations Act) and carry out the functions specified 07 in that Act; and 08  (5) serve as the railroad labor relations agency for the Alaska Railroad 09 under AS 42.40 (Alaska Railroad Corporation Act) and carry out the functions 10 specified in that Act. 11 * Sec. 42. AS 23.05.380 is amended to read: 12  Sec. 23.05.380. Regulations. The agency shall adopt regulations under 13 AS 44.62 (Administrative Procedure Act) to carry out labor relations functions under 14 AS 23.05.360 - 23.05.390, AS 23.40 [AS 23.40.070 - 23.40.260], and AS 42.40.730 - 15 42.40.890. 16 * Sec. 43. AS 29.35.685(c) is amended to read: 17  (c)  AS 23.40 applies [AS 23.40.070 - 23.40.260 APPLY] to employees of an 18 authority established under AS 29.35.600 - 29.35.730 unless all municipalities 19 participating in the authority are exempt under sec. 4, ch. 113, SLA 1972. 20 * Sec. 44. AS 39.20.310(8) is amended to read: 21  (8) persons employed by the division of marine transportation as 22 masters and members of the crews operating the state ferry system who are covered 23 by collective bargaining agreements as provided in AS 23.40.210 [AS 23.40.040], 24 except as expressly provided by law; 25 * Sec. 45. AS 39.25.110(16) is amended to read: 26  (16) persons employed by the division of marine transportation as 27 masters and members of the crews of vessels who operate the state ferry system and 28 who are covered by a collective bargaining agreement provided in AS 23.40 29 [AS 23.40.040]; 30 * Sec. 46. AS 39.25.158(j) is amended to read: 31  (j) A collective bargaining agreement under AS 23.40 [AS 23.40.070 - 01 23.40.260] may not include terms contrary to this section. 02 * Sec. 47. AS 39.27.012 is amended to read: 03  Sec. 39.27.012. Temporary salary schedules. The director of the division of 04 personnel may establish salary schedules providing lesser amounts than those in the 05 basic salary schedule in order to meet salary limit requirements for receipt and 06 expenditure of federal funds. Salary rates established under authority of this section 07 do not affect the salaries of employees provided for by a collective bargaining 08 agreement negotiated under the authority of AS 23.40 [AS 23.40.070 - 23.40.260] 09 (Public Employment Relations Act). 10 * Sec. 48. AS 42.40.720 is amended to read: 11  Sec. 42.40.720. Collective bargaining rights. The provisions of AS 23.40 12 [AS 23.40.070 - 23.40.260] do not apply to the corporation or to its employees. 13 However, employees who are not executive officers may organize and form, join, or 14 assist an organization to engage in collective bargaining through representatives of 15 their own choosing and engage in concerted activities for the purpose of collective 16 bargaining or other mutual aid or protection. 17 * Sec. 49. AS 44.19.451(c) is amended to read: 18  (c) A collective bargaining agreement adopted under AS 23.40 [AS 23.40.070 - 19 23.40.260] (Public Employment Relations Act) must be consistent with principles of 20 equal employment opportunity and affirmative action. AS 44.19.450 - 44.19.458 21 supersede the provisions of AS 39.25 (State Personnel Act). 22 * Sec. 50. AS 47.27.035(f), added by sec. 7, ch. 107, SLA 1996, is amended to read: 23  (f) A participant in work activities under this section is not considered an 24 employee of the state or other public employer for purposes of AS 23.40 25 [AS 23.40.070 - 23.40.260] (Public Employment Relations Act), nor shall any 26 provision of a collective bargaining agreement entered into under AS 23.40 27 [AS 23.40.070 - 23.40.260] be construed to interfere with the department's authority 28 to assign participants to work activities as authorized under this section. 29 * Sec. 51. AS 23.40.020, 23.40.030, 23.40.040, 23.40.215(c), and 23.40.240 are repealed. 30 * Sec. 52. APPLICATION OF PROVISIONS CONCERNING LABOR ORGANIZATION 31 ELECTIONS. The provisions of AS 23.40.600 - 23.40.660, enacted by sec. 37 of this Act, 01 become applicable (1) 90 days after the effective date of this Act in the case of a labor 02 organization whose constitution and bylaws can lawfully be modified or amended by action 03 of its constitutional officers or governing body, or (2) where those modifications can only be 04 made by a constitutional convention of the labor organization, no later than the earlier of the 05 conclusion of the constitutional convention of the labor organization that immediately follows 06 the effective date of this Act, or one year after the effective date of this Act. If a convention 07 is not held within the one-year period, the executive board or similar governing body 08 empowered to act for the labor organization between conventions is empowered to make the 09 interim constitutional changes necessary to carry out the provisions of AS 23.40.600 - 10 23.40.660. 11 * Sec. 53. APPLICATION OF TRUSTEESHIP REPORT PROVISION. Notwithstanding 12 AS 23.40.500(a), enacted by sec. 37 of this Act, a labor organization that has assumed 13 trusteeship over a subordinate labor organization before the effective date of this Act shall, 14 within 30 days after the effective date of this Act, file with the commissioner the information 15 required by AS 23.40.500. 16 * Sec. 54. REPORT FROM LABOR ORGANIZATION. Notwithstanding the deadline set 17 out in AS 23.40.440(c), a labor organization that is subject to the requirements of 18 AS 23.40.440 on the effective date of this Act must file its initial report under AS 23.40.440 19 no later than 30 days after the effective date of this Act. 20 * Sec. 55. Notwithstanding the provisions of AS 23.40.090(c) and (d), enacted by sec. 5 21 of this Act, a bargaining unit in effect on the effective date of this Act that is composed of 22 employees of a political subdivision of the state does not become invalid because of the 23 enactment of this Act. However, if the composition of a bargaining unit of employees of a 24 political subdivision is challenged on or after the effective date of this Act, the Labor 25 Relations Agency shall apply AS 23.40.090 as amended by this Act to the resolution of the 26 challenge.