2 AAC — Administration

Chapter 05 Office of the Commissioner

2 AAC 05.100 Duties {#sec-2-aac-05.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.100}

Repealed.

History

Eff. 4/1/74, Register 50; repealed 1/31/2017, Register 221

2 AAC 05.110 Use of agency records {#sec-2-aac-05.110 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.110}

Repealed.

History

Eff. 4/1/74, Register 50; repealed 1/31/2017, Register 221

2 AAC 05.120 General provisions {#sec-2-aac-05.120 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.120}

Repealed.

History

Eff. 4/1/74, Register 50; repealed 1/31/2017, Register 221

(a) The state social security administrator, under the general supervision of the commissioner of administration or designee, as required by 20 CFR 404.1204 is designated to act for the state in administering the state's section 218 of the Social Security Act (42 USC 418) coverage agreement. The state social security administrator will:

(1) maintain physical custody, in a secure location, of the state's section 218 of the Social Security Act (42 USC 418) coverage agreement, any modifications and all intrastate agreements;

(2) provide copies of all modifications and intrastate agreements to active political subdivisions with an explanation of any changes that have been overridden by subsequent changes to federal law;

(3) take appropriate steps to execute modifications to the original state's section 218 of the Social Security Act (42 USC 418) coverage agreement that include additional coverage groups, correct errors in modifications or identify additional political subdivisions that join a covered retirement system;

(4) conduct referenda on the coverage of services of individuals in positions under a retirement system;

(5) serve as an information liaison for federal, state and local agencies in the education and training of public employers;

(6) draft and publish rules, policies, procedures and standards for operation of the state social security administrator's office;

(7) provide the Federal Office of the Social Security Administration with notice and evidence of the legal dissolution of a covered state or political subdivision entity;

(8) provide guidance to the state's governmental employers on issues related to the state's section 218 of the Social Security Act (42 USC 418) coverage agreement;

(9) work with the Federal Office of the Social Security Administration and the Internal Revenue Service to address coverage and taxation questions related to the state's section 218 of the Social Security Act (42 USC 418) coverage agreement and any modifications to that agreement; and

(10) assess the state's covered political subdivisions, under existing state statutes, to determine the administrative costs for operation of the state's section 218 of the Social Security Act (42 USC 418) coverage agreement.

(b) In this section, "state's section 218 of the Social Security Act (42 USC 418) coverage agreement" means the agreement between the state and the Federal Office of the Social Security Administration under 42 U.S.C. 418.

History

Authority: AS 39.30.010; AS 39.30.040 AS 39.30.030; AS 39.30.060
Eff. 1/31/2017, Register 221

Article 3 Verification of Electronic Signatures

2 AAC 05.200 Establishment of department's electronic signature verification system {#sec-2-aac-05.200 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.200}

2 AAC 05.200 - 2 AAC 05.290 establishes the department's electronic signature verification system.

History

Authority: AS 09.80.150; AS 44.21.020; AS 44.21.170 AS 09.80.160; AS 44.21.150 AS 09.80.190; AS 44.21.160
Eff. 12/22/2002, Register 164

2 AAC 05.210 Verification of electronic signatures {#sec-2-aac-05.210 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.210}

The department will act as a certifying authority for an electronic signature if

(1) at least one of the parties to the transaction requiring the action is a state agency that has elected to use the department's system established in 2 AAC 05.200 - 2 AAC 05.290; and

(2) the individual whose electronic signature is to be verified has completed the enrollment, validation, and verification processes described in 2 AAC 05.220 and 2 AAC 05.230.

History

Authority: AS 09.80.150; AS 44.21.020; AS 44.21.170 AS 09.80.160; AS 44.21.150 AS 09.80.190; AS 44.21.160
Eff. 12/22/2002, Register 164

2 AAC 05.220 Enrollment in the department's electronic signature verification system {#sec-2-aac-05.220 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.220}

(a) An individual who wishes to have the department verify that individual's electronic signature must enroll in the department's system.

(b) To be eligible for enrollment in the department's system, an individual must have

(1) received a permanent fund dividend in the year before the year of enrollment; and

(2) one of the following documents that is valid and issued by this state:

(A) a driver's license;

(B) an identification card.

(1) providing the 10 characters that constitute the DLN number that appears on the Form 1099 pertaining to the preceding year's permanent fund dividend that was issued to that individual;

(2) providing the number on the license or card described in (b)(2) of this section;

(3) choosing a user name that is unique to the individual; and

(4) specifying a password; to enroll, the individual must enter the password twice in the system.

(d) If an individual enrolling under the procedures of (c) of this section chooses a user name or password that has already been taken, the department will notify the individual to select a substitute user name or password for the system using the procedures set out in (c)(3) and (4) of this section.

(e) After an individual has successfully completed the procedures of (c) of this section, the department's system will assign the individual an identification alphanumeric code and allow the individual to proceed to the validation process described in 2 AAC 05.230.

History

Authority: AS 09.80.150; AS 44.21.020; AS 44.21.170 AS 09.80.160; AS 44.21.150 AS 09.80.190; AS 44.21.160
Eff. 12/22/2002, Register 164

2 AAC 05.230 Validation process; verification {#sec-2-aac-05.230 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.230}

(a) The validation process applies to an individual who has successfully completed the enrollment procedures in 2 AAC 05.220 and voluntarily supplies information to the department's system required in (b) of this section.

(b) An individual described in (a) of this section shall, upon request supply the following information to the department:

(1) the individual's date of birth;

(2) the individual's state of birth, if one of the United States, or country of birth, if a foreign nation; and

(3) as indicated on the individual's license or card described in 2 AAC 05.220(b)(2),

(A) the individual's weight and height; and

(B) the issue date of that license or card.

(c) The department's system will verify whether the information supplied under (b) of this section matches the corresponding information maintained in the permanent fund dividend division's and the division of motor vehicles' databases.

(d) The department's system will mark the individual's supplied information as verified only if the validation of the individual's supplied information is made under (c) of this section. The department will notify the individual of the successful verification under this subsection.

(e) If the individual's supplied information is not verified under (c) of this section, the department's system will reject the information as not verified, and notify the individual.

History

Authority: AS 09.80.150; AS 44.21.020; AS 44.21.160 AS 09.80.160; AS 44.21.150; AS 44.21.170 AS 09.80.190
Eff. 12/22/2002, Register 164

2 AAC 05.240 Signature ceremony {#sec-2-aac-05.240 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.240}

(a) Upon notification of successful verification under 2 AAC 05.230, an individual may electronically sign a document as described in this section in the course of doing business with a state agency that has elected to use the department's system.

(b) When an individual initiates an electronic signature in the course of doing business with a state agency that has elected to use the department's system, the department must ensure that the system will indicate to the individual that

(1) a signature is taking place;

(2) by completing the signing ceremony, the individual operating the computer input device

(A) intends to be bound by and authenticate the electronic record, and to attest the statements contained within the electronic record;

(B) that the individual is the same individual identified by the department's system; and

(3) submitting another individual's electronic signature or attesting to false statements in an electronic record

(A) is a false statement that is punishable as unsworn falsification under AS 11.56.210;

(B) is an offering of a false instrument for recording that is punishable under AS 11.46.550; and

(i) other crimes, such as perjury, theft, attempted theft, criminal mischief, forgery, criminal impersonation, scheme to defraud or criminal use of a computer; or

(ii) other criminal offenses under state, municipal, or federal law.

(c) After successful completion of the requirements of (b) of this section, an individual must electronically reenter the individual's password assigned under 2 AAC 05.220.

(d) An individual completes the signature ceremony by electronically confirming the individual's awareness that

(1) a signature is taking place;

(2) the individual operating the computer input device

(A) intends to be bound by and authenticate the electronic record and to attest the statements contained within the electronic record;

(B) the individual is the same individual identified by the department's system; and

(3) submitting another individual's electronic signature or attesting to false statements in an electronic record

(A) is an unsworn falsification under AS 11.56.210;

(B) is an offering of a false instrument for recording that is punishable under AS 11.46.550; and

(i) other crimes, such as perjury, theft, attempted theft, criminal mischief, forgery, criminal impersonation, scheme to defraud, or criminal use of a computer; or

(ii) other criminal offenses under state, municipal, or federal law.

(e) Upon receipt of the individual's confirmation of the information specified in (c) and (d) of this section, the department's system will validate the individual's identity by verifying the individual's password specified under 2 AAC 05.220(c)(4).

(f) Upon a successful verification of the individual's password, the department's system will

(1) create a tamper-evident hash of the signed data, the individual's electronic signature verification system's identifier, the appropriate state agency's electronic signature verification system's identifier, and a stamp showing the time and date of the signature; and

(2) digitally sign the hash with the department's system server certificate.

(g) Upon an unsuccessful verification of the individual's password, the department's system will advise the appropriate state agency of an incorrect password input that prevents electronic signature of the document.

(h) In this section, "statement" has the meaning given in AS 11.56.240.

History

Authority: AS 09.80.150; AS 44.21.020; AS 44.21.170 AS 09.80.160; AS 44.21.150 AS 09.80.190; AS 44.21.160
Eff. 12/22/2002, Register 164

2 AAC 05.250 Transmittal of data to coordinating state agency {#sec-2-aac-05.250 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.250}

Upon an individual's completion of the signature ceremony described in 2 AAC 05.240, the department's system will transmit to the appropriate state agency its verification of that individual's electronic signature and a confirmation code that will allow subsequent retrieval of an electronic certified copy of the original signed document.

History

Authority: AS 09.80.150; AS 44.21.020; AS 44.21.170 AS 09.80.160; AS 44.21.150 AS 09.80.190; AS 44.21.160
Eff. 12/22/2002, Register 164

2 AAC 05.260 Storage and confidentiality of data pertaining to electronic signatures {#sec-2-aac-05.260 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.260}

(a) At the conclusion of each signature ceremony described in 2 AAC 05.240, the department will store the tamper-evident hash described in 2 AAC 05.240(f) and a read-only copy of the data in the online form at the time of signature, so that the contents of the document each individual has electronically signed can be perpetually verified as to that individual.

(b) To the extent allowed by law, the department will preserve the confidentiality of all stored data that pertains to electronic signatures. If the department receives a public records request, under AS 40.25.100 - 40.25.220, or other similar request to inspect any record pertaining to an electronic signature, the department will refer that request to the appropriate state agency for disposition.

History

Authority: AS 09.80.150; AS 40.25.120; AS 44.21.160 AS 09.80.160; AS 44.21.020; AS 44.21.170 AS 09.80.190; AS 44.21.150
Eff. 12/22/2002, Register 164

2 AAC 05.290 Definitions {#sec-2-aac-05.290 omnilex-key=us-ak-regs-official--title-2--2 AAC 05.290}

In 2 AAC 05.200 - 2 AAC 05.290, unless the context indicates otherwise,

(1) "asymmetric cryptosystem" means a system that generates and employs a secure key pair, consisting of a private key for creating a digital signature, and a public key to verify a digital signature;

(2) "certified copy of the original" means a copy of the original data, the department's system's identifier of the signer, the appropriate state agency's electronic signature verification system's identifier, and the time and date of the signature, all confirmed by re-computing the hash and comparing the result to the hash digitally signed by the department's system;

(3) deleted;

(4) "department" means the Department of Administration;

(5) "digitally signed" means a transformation of a message using an asymmetric cryptosystem and a hash function that enables an individual having the initial message and the signer's public key to accurately determine

(A) whether the transformation was created using the private key that corresponds to the signer's public key; and

(B) whether the initial message has been altered since the transformation was made;

(6) "electronic signature" has the meaning given in AS 09.80.190;

(7) "hash" means a small mathematical summary or digest of an original clear-text data file or message that is performed for the purpose of ensuring data integrity through the detection of changes to data caused by tampering;

(8) "hash function" means an algorithm that takes as input an original message and produces a fixed-length summary of that message that is unique to the original message within an acceptable range of certainty;

(9) "identifier" means a unique alphanumeric code that is assigned by the electronic signature verification system to each object named by the system;

(10) "key" means a password needed to decipher encrypted data;

(11) "message" means a sequence of characters used to convey information or data;

(12) "permanent fund dividend" has the meaning given in AS 43.23.295;

(13) "read-only" means information that is electronically arranged so that it may be read but not changed in any way;

(14) "record" has the meaning given in AS 09.80.190;

(15) "server certificate" means a unique data string that

(A) identifies the certifying authority issuing it;

(B) names or identifies the department's system's server;

(D) identifies the certificate's operational period; and

(E) is digitally signed by the certifying authority issuing it;

(16) "state agency" has the meaning given in AS 44.62.640;

(17) "system" means the department's electronic signature verification system established in 2 AAC 05.200 - 2 AAC 05.290;

(18) "user name" means a word or phrase by which an individual is known to the department's system for the purpose of the department's verifying that individual's electronic signature.

History

Authority: AS 09.80.150; AS 44.21.020; AS 44.21.170 AS 09.80.160; AS 44.21.150 AS 09.80.190; AS 44.21.160
Eff. 12/22/2002, Register 164

Chapter 06 Adjustments to Judicial Salaries

2 AAC 06.005 Statement of purpose {#sec-2-aac-06.005 omnilex-key=us-ak-regs-official--title-2--2 AAC 06.005}

This chapter adjusts the dollar amounts of judicial salaries set out in AS 22.05.140(a), AS 22.07.090(a), AS 22.10.190(a), and AS 22.15.220(a) in response to an increase in the monthly base salary for Step E, Range 28, of the salary schedule set out in AS 39.27.011.

History

Authority: AS 22.05.140; AS 22.10.190; AS 39.27.011 AS 22.07.090; AS 22.15.220
Eff. 7/3/91, Register 123

2 AAC 06.010 Determination of changes in AS 39.27.011 {#sec-2-aac-06.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 06.010}

The department has determined that the change made by ch. 19, SLA 1991 to the monthly base salary for Step E, Range 28, of the salary schedule set out in AS 39.27.011 reflects a 4.99 percent increase, retroactive to January 1, 1991.

History

Authority: AS 22.05.140; AS 22.10.190; AS 39.27.011 AS 22.07.090; AS 22.15.220
Eff. 7/3/91, Register 123

2 AAC 06.015 Adjustments to salaries {#sec-2-aac-06.015 omnilex-key=us-ak-regs-official--title-2--2 AAC 06.015}

(a) The $8,333 monthly base salary of the chief justice of the supreme court prescribed in AS 22.05.140(a) is increased to $8,749. For each other justice, the $8,292 monthly base salary is increased to $8,706.

(b) The $7,833 monthly base salary of a judge of the court of appeals prescribed in AS 22.07.090(a) is increased to $8,224.

(d) The $6,500 monthly base salary of a district court judge prescribed in AS 22.15.220(a) is increased to $6,824.

(e) The salary increases in (a) - (d) of this section are retroactive to January 1, 1991.

History

Authority: AS 22.05.140(d)AS 22.10.190; AS 39.27.011 AS 22.07.090; AS 22.15.220
Eff. 7/3/91, Register 123

2 AAC 06.020 Definition {#sec-2-aac-06.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 06.020}

In this chapter, "department" means the Department of Administration.

History

Authority: AS 22.05.140; AS 22.10.190; AS 39.27.011 AS 22.07.090; AS 22.15.220
Eff. 7/3/91, Register 123

Chapter 07 Personnel Rules

Article 1 Classification

2 AAC 07.005 Classification plan {#sec-2-aac-07.005 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.005}

The director shall prepare a classification plan that groups into classes all the positions in the classified service and the partially exempt service. The director may consider job duties, responsibilities, qualifications and any other factors in preparing the plan.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.010 Class specifications {#sec-2-aac-07.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.010}

The director shall establish written specifications for each class of positions. The specifications must include a title, a definition, typical duties and responsibilities, and minimum qualifications for appointment to a position in the class.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.015 Class titles {#sec-2-aac-07.015 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.015}

The title of a class is the official title for every position allocated to that class. For the purpose of internal management, abbreviations, working titles or other similar usages may be employed.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.020 Allocation of positions {#sec-2-aac-07.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.020}

(a) The director shall allocate all existing and new positions in the classified service and the partially exempt service to classes.

(b) An appointing authority requesting allocation action for a new or existing position shall provide the director with a written or electronic description of the duties, responsibilities and authority to be assigned the position, a staffing chart, and other information as the director may require. The appointing authority requesting an allocation will certify that money is available to pay for the position.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.025 Maintenance of descriptions {#sec-2-aac-07.025 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.025}

(a) If a substantial change, or a change that may affect the allocation of the position, is made in a job assignment, the appointing authority shall provide the director with a written description of the revised duties and responsibilities in a manner determined by the director.

(b) The appointing authority shall concurrently provide the incumbent of a position with a copy of the current description of duties and responsibilities, and any revisions submitted to the director.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.030 Review of allocations {#sec-2-aac-07.030 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.030}

The director shall provide for a systematic and periodic review of positions in the classified and partially exempt services for the purpose of adjusting the allocation of positions when the duties and responsibilities have materially changed, or when the director finds current classifications to be in error.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.035 Effective dates of allocation action {#sec-2-aac-07.035 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.035}

The effective date of all allocation and reallocation actions by the director is the first day of the regular pay period following the action, unless the director specifies another date that does not precede the date of the director's approval. A personnel action that is required because of an allocation or reallocation must be taken not later than the first day of the second regular pay period following the effective date of the allocation or reallocation.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

Article 2 Recruitment and Examination

2 AAC 07.040 Recruitment {#sec-2-aac-07.040 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.040}

Repealed.

2 AAC 07.041 Vacancy description {#sec-2-aac-07.041 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.041}

When an appointing authority decides to fill a position in the classified service, the appointing authority shall prepare a description of the vacancy in a form approved by the director. However, a description of the vacancy is not required when an appointing authority fills a position by transfer or rehire, or when an appointing authority fills an emergency position. The description of the vacancy must be based on the written description of duties, responsibilities, and authority of the position required in 2 AAC 07.020(b), and the written specifications for the class of positions provided in 2 AAC 07.010.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156; am 8/25/2005, Register 175

2 AAC 07.042 Continuous recruitment {#sec-2-aac-07.042 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.042}

Recruitment for positions on a continuous basis may be announced without a designated closing date when the director determines that continuous recruitment is necessary to maintain an adequate pool of applicants. Continuous recruitment must be periodically publicized.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 4/23/2005, Register 175

2 AAC 07.045 Continuous examinations {#sec-2-aac-07.045 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.045}

Repealed.

2 AAC 07.046 Appointments without public notice: transfer or preferential rights {#sec-2-aac-07.046 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.046}

Repealed.

History

Eff. 8/31/2000, Register 156; repealed 4/23/2004, Register 175

2 AAC 07.050 Specific examinations {#sec-2-aac-07.050 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.050}

Repealed.

2 AAC 07.051 Appointments without public notice: nonpreferential rights {#sec-2-aac-07.051 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.051}

Repealed.

History

Eff. 8/31/2000, Register 156; repealed 4/23/2004, Register 175

2 AAC 07.055 Promotional examinations {#sec-2-aac-07.055 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.055}

Repealed.

2 AAC 07.056 Scope of recruitment {#sec-2-aac-07.056 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.056}

(a) An appointing authority must make a public announcement of a vacancy except as provided in 2 AAC 07.225 - 2 AAC 07.235. Except as provided in (b) - (d) of this section, the public announcement must be for at least 10 days.

(b) When the appointing authority determines that a departmental or interdepartmental recruitment is in the best interest of the state service, the announcement of a vacancy may be limited to recruitment of classified employees only. The announcement must be available to the appropriate permanent employees for a period of not less than five days. Applications for a departmental assessment must be accepted only from employees who have permanent status in the recruiting department. Applications for an interdepartmental assessment must be accepted only from employees who have permanent status.

(c) When the appointing authority recruits under provisions specific to a recognized collective bargaining agreement, the announcement of the vacancy may be limited to recruitment under those provisions.

(d) When a position is moved from the exempt or partially exempt service into the classified service as provided in 2 AAC 07.215, the announcement of a vacancy may be limited to recruitment of employees of the exempt or partially exempt services whose positions have been moved to the classified service. The announcement must be available to the appropriate employees for a period of not less than five days. Applications for the positions covered by the announcement must be accepted only from employees whose positions are covered by the announcement.

(e) Unless the director determines that insufficient competition exists or will exist among applicants domiciled or claiming residency in this state under 2 AAC 07.106(b), the announcement of a vacancy under (a) of this subsection is limited to recruitment of applicants domiciled or claiming residency in this state. If the director determines that insufficient competition exists or will exist, the announcement of a vacancy may include recruitment of any applicant with the legal right to work in the United States. The appointing authority shall rank candidates for selection in accordance with 2 AAC 07.106(b).

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156; am 4/23/2004, Register 175

2 AAC 07.060 Application for employment {#sec-2-aac-07.060 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.060}

Repealed.

2 AAC 07.061 Recruitment for an individual position {#sec-2-aac-07.061 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.061}

An announcement of a vacancy is for an individual position, unless recruitment is made under 2 AAC 07.066. An applicant responding to an announcement must only be evaluated and considered for the specific position that is the subject of the announcement.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156

2 AAC 07.065 Disqualification {#sec-2-aac-07.065 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.065}

Repealed.

2 AAC 07.066 Recruitment for multiple positions {#sec-2-aac-07.066 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.066}

The director may determine to announce two or more vacancies in the same class of positions in the same announcement. An applicant responding to the announcement must only be evaluated and considered for the positions that are the subject of the announcement.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156

2 AAC 07.070 Character of examinations {#sec-2-aac-07.070 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.070}

Repealed.

2 AAC 07.071 Form of public notice {#sec-2-aac-07.071 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.071}

The director shall use one or more forms of public notice that the director determines to be appropriate to the circumstances of the vacancy being announced. Public notice may include newspaper advertisement, publication and distribution of printed material, publication by electronic mail, toll or toll free telephonic recorded messages, or a public Internet site. The director shall make a reasonable effort to make the current form of public notice known to the potential applicant population.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156

2 AAC 07.075 Interim selection procedures and devices {#sec-2-aac-07.075 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.075}

Repealed.

History

Eff. 6/28/84, Register 91; repealed 8/31/2000, Register 156

2 AAC 07.076 Deadlines to be announced {#sec-2-aac-07.076 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.076}

For each announcement of a vacancy for which public notice is required, the announcement must include any deadline required for the submission of applications, or must identify where information on a deadline is maintained. The director, solely in the director's discretion, may determine to extend a deadline. The director shall make a reasonable effort under the circumstances that lead to a determination to extend a deadline to provide at least one form of public notice of the extension.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156

2 AAC 07.080 Conduct of examinations {#sec-2-aac-07.080 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.080}

Repealed.

2 AAC 07.081 Other conditions to be announced {#sec-2-aac-07.081 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.081}

Each announcement of a vacancy for which public notice is required, shall include, in addition to any deadline required by 2 AAC 07.076, information regarding the location of the vacancy, whether the vacancy is full time, part time, seasonal, or nonpermanent, the agency, rate of pay, and other information determined by the director to be necessary for the recruitment. An applicant submitting an application in response to an announcement is considered as being willing and available to work under the circumstances described in the announcement.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156

2 AAC 07.085 Ranking of applicants {#sec-2-aac-07.085 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.085}

Repealed.

2 AAC 07.086 Method of application {#sec-2-aac-07.086 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.086}

The director shall specify the form required for submitting an application for a vacancy, which may include electronic forms and alternate means of submission. The director shall make reasonable efforts to assure that potential applicants have at least one means of submitting an application available to them. On the form, the director shall require the reporting of a misdemeanor conviction that occurred within the five years before the date of application, and a felony conviction regardless of the date that the conviction occurred. The director may also require information and evidence pertaining to the education, training, and experience of the applicant, and other information the director considers pertinent to the recruitment. An application may not be accepted after the announced deadline.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156

2 AAC 07.090 Access to examination results {#sec-2-aac-07.090 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.090}

Repealed.

2 AAC 07.091 Evaluation of convictions {#sec-2-aac-07.091 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.091}

(a) The director shall review the applications of individuals convicted of crimes and may disqualify the applicant if the offense for which the applicant was convicted is incompatible with the position for which application was made.

(b) In making the determination of whether an applicant is disqualified for a position, the director may consider

(1) the nature and seriousness of the offense;

(2) the position for which the applicant is applying and the requirements of that position;

(3) the circumstances under which the offense occurred;

(4) the amount of time that has passed since commission of the offense;

(5) the age of the applicant at the time the offense was committed;

(6) whether the offense was an isolated or repeated violation; and

(7) any aggravating, mitigating, or other facts or circumstances that might have a bearing on the suitability of the applicant for employment in the position sought.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156; am 4/23/2004, Register 175

2 AAC 07.095 Preference in state employment for veterans and prisoners of war {#sec-2-aac-07.095 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.095}

Repealed.

2 AAC 07.096 Evaluation of applications {#sec-2-aac-07.096 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.096}

(a) An application received by an announced deadline must be evaluated against the minimum qualifications for the class of positions. The director may provide for an electronic or other means of evaluating an application. If alternative means of application are permitted, the director may convert the various means to a common form for purposes of evaluation. The conversion is presumed to be made accurately, and a complaint under 2 AAC 07.450 may not be based on the results of a conversion. When the evaluation of an application shows that the requirements for qualification are met, the applicant must be admitted to the assessment, except as provided in 2 AAC 07.112.

(b) An appointing authority may request the director to approve the evaluation of applications against a specified portion of the minimum qualifications for the class of positions. The appointing authority may request such an approval when the appointing authority expects that some applicants who would meet the minimum qualifications for the class of positions would not be able to perform the duties of a specific position. The appointing authority shall document the unique or unusual circumstances involved in the request. The documentation must be consistent with the position description, the specification of the job class, and other factors relating to the principles of selection on the basis of merit from among the persons best qualified to perform the duties of the position. The director, solely in the director's discretion, may approve a request. If approved by the director, the specified portion of the minimum qualifications must be identified and applied to the position as if they were the minimum qualifications for the job class on all subsequent announcements of a vacancy in the position.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156

2 AAC 07.097 Preference in state employment for persons injured while employed by the state {#sec-2-aac-07.097 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.097}

Repealed.

History

Eff. 10/18/90, Register 137; am 8/24/94, Register 137; am 11/3/95, Register 137; am 12/24/98, Register 150; repealed 8/31/2000, Register 156

2 AAC 07.100 Re-examinations {#sec-2-aac-07.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.100}

Repealed.

2 AAC 07.101 Scope of assessment {#sec-2-aac-07.101 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.101}

(a) The appointing authority shall make reasonable efforts to assess qualified applicants to determine the persons best qualified to perform the duties of a position. To the extent that it is feasible and practicable, an assessment must be designed to fairly predict satisfactory performance of the duties of a position.

(b) An assessment under this section may include

(1) an evaluation of education, experience, or record of accomplishment;

(2) an assessment of knowledge, skill, ability, capacity, intelligence, or aptitude;

(3) an inquiry into any matter related to bona fide occupational qualifications; and

(4) any combination of these factors reasonably calculated to predict successful performance in the position.

(c) An appointing authority may utilize tests as an assessment device after approval by the director. Work-related exercises, such as typing exercises and writing samples, do not need review if the exercise is job related.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156; am 8/25/2005, Register 175

2 AAC 07.103 Access to assessment results {#sec-2-aac-07.103 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.103}

(a) Under conditions approved by the director, an applicant must be given the opportunity to review an assessment that is open for inspection and was used in determining the person best qualified to perform the duties of a position. An applicant may also obtain information concerning the types of items failed, may request to have the answer sheet rescored, or make any other reasonable request concerning the means or methods used in determining the person best qualified to perform the duties of a position.

(b) A report regarding reputation, previous employment, background investigations, and similar information obtained by the director as a result of confidential inquiries is confidential, and is not available to the applicant. A written examination used for evaluation of applicants is not open for inspection by an applicant until after the examination is no longer used for competitive testing. Specific examination items currently in use for competitive selection may only be inspected as authorized by the director.

History

Authority: AS 39.25.070; AS 39.25.140 AS 39.25.080; AS 39.25.150
Eff. 8/31/2000, Register 156; am 4/23/2004, Register 175

2 AAC 07.105 Special boards of examiners {#sec-2-aac-07.105 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.105}

Repealed.

2 AAC 07.106 Scope of ranking {#sec-2-aac-07.106 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.106}

(a) The appointing authority shall use reasonable techniques and procedures as circumstances permit to determine the relative ranking of qualified applicants. An applicant may be required to pass each part of the assessment in order to be considered for appointment. Any preference for certain veterans, disabled veterans, former prisoners of war, or active members of the Alaska National Guard, as provided in AS 39.25.159, must be included in the selection process.

(b) Qualified applicants domiciled in this state or who otherwise claim residency in this state for employment purposes must be given a preference in consideration above persons who are not domiciled in this state or are not eligible to claim residency for employment purposes. An applicant is eligible to claim residency for employment purposes if the applicant

(1) is domiciled in this state;

(2) presently serves in the military with the intent of being domiciled in this state upon completion of military service;

(3) provides documentation of graduation from an accredited high school or post-secondary institution in this state, or of a general equivalency diploma earned while domiciled in this state; or

(4) is presently enrolled in a post-secondary institution in this state and not enrolled solely in on-line classes.

(c) a non-resident displaced to any area of the United States by a natural disaster, with proof of residence from the area declared to be a natural disaster by the President of the United States, will be considered a resident for employment purposes for a 12-month period following the declaration. An applicant applying under this subsection, however, will not receive the preference afforded residents under (d) of this section.

(d) In applicant pools in which both residents and non-residents of the state compete for selection, the appointing authority will give a preference in ranking to applicants eligible to claim residency in this state by

(1) utilizing a point scoring system to provide for relative ranking in (a) of this section; and

(2) increasing the score of an applicant eligible to claim residency by 10 percent of the available score; this preference cannot be combined with any other preferential point scoring system; if two preferences apply, the applicant will be given the single preference, which provides for the greatest benefit to the applicant.

(e) If the director determines that the economy and efficiency of the state service would be enhanced, the appointing authority shall rerank the applicants and accord priority among persons domiciled in this state to those who reside in the locale, district, and region of this state where the vacancy exists. This method must also be used to give a preference under AS 39.25.196 to local residents in the filling of nonpermanent positions and the filling of seasonal positions of 180 calendar days or less.

History

Authority: AS 39.25.070; AS 39.25.150; AS 39.25.196 AS 39.25.140; AS 39.25.159
Eff. 8/31/2000, Register 156; am 2/11/2004, Register 175; am 4/9/2006, Register 178; am 7/4/2010, Register 196; am 11/16/2011, Register 201

2 AAC 07.110 Maintenance of documents {#sec-2-aac-07.110 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.110}

Repealed.

2 AAC 07.111 Exception to scope of ranking {#sec-2-aac-07.111 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.111}

(a) Under directives prepared by the director, an appointing authority may determine that ranking of qualified applicants for a position is not practicable or feasible. When the appointing authority determines that ranking of qualified applicants for a position is not practicable or feasible, the addition of points for certain veterans, disabled veterans, former prisoners of war, or active members of the Alaska National Guard provided in AS 39.25.159 is not applicable.

(b) The director's directives may include the following factors:

(1) the feasibility and practicability of developing an assessment that fairly predicts satisfactory performance of the duties of a position;

(2) the feasibility and practicability of determining grades that identify the relative ranking of qualified applicants;

(3) the expected number of qualified applicants that will apply for a position;

(4) the number of positions in the same job class that will be filled over a period of time.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.25.159
Eff. 8/31/2000, Register 156

2 AAC 07.112 Loss of eligibility {#sec-2-aac-07.112 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.112}

(a) In addition to any other provision of this chapter regarding disqualification, the director or an appointing authority may refuse to evaluate an application; may refuse to admit an applicant to an assessment; may, after assessment, refuse to consider the applicant for appointment; or may remove the applicant's name from any list of relative rankings, if that applicant

(1) fails to follow all application instructions or submit an application correctly and within prescribed time limits;

(2) is found to lack any of the preliminary or minimum requirements;

(3) is not eligible to apply under the scope of recruitment identified for the vacancy;

(4) after consideration, is determined to be unable to perform the essential functions of the position with or without a reasonable accommodation; or

(5) fails to secure rehire rights provided in 2 AAC 07.235;

(6) repealed 4/26/2004.

(b) The director may temporarily or permanently exclude a person from submitting applications, refuse to evaluate an application submitted by a person, refuse to assess the applicant, or refuse to provide for a person to be considered for appointment for any of the reasons listed in (a) of this section or those who

(1) fail to report for duty at the time and place prescribed by an appointing authority after accepting a job offer;

(2) have received two or more unsatisfactory references and has been rejected by one or more appointing authorities;

(3) make a false statement of material fact in the application;

(4) use or attempt to use intimidation, political pressure, or bribery to secure an advantage in the assessment or appointment;

(5) obtain confidential information regarding an assessment administered under this chapter;

(6) engage in conduct prohibited under this chapter, under the State Personnel Act (AS 39.25), or under the Alaska Executive Branch Ethics Act (AS 39.52);

(7) have been dismissed from public service for misconduct, unsatisfactory performance of duties, or other similar cause; or

(8) have been nonretained from public service for misconduct or other similar cause.

(c) The director or appointing authority taking an action under (a) or (b) of this section shall provide notice of the action to a disqualified applicant.

(d) Nothing in this section shall be construed to prohibit an agreement to temporarily or permanently disqualify a person from employment as a term of settlement.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156; am 4/23/2004, Register 175; am 8/25/2005, Register 175; am 7/8/2006, Register 179

2 AAC 07.113 Records; maintenance of documents {#sec-2-aac-07.113 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.113}

The applications, examination papers, and records of ratings of applicants are official records and must be maintained by the appointing authority for not less than two years after an appointment has been made.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/31/2000, Register 156

Article 3 Reserved

2 AAC 07.115 Eligible list {#sec-2-aac-07.115 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.115}

Repealed.

2 AAC 07.120 Active and inactive eligibles {#sec-2-aac-07.120 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.120}

Repealed.

History

Eff. 6/28/84, Register 91; repealed 8/31/2000, Register 156

2 AAC 07.125 Removal of name from list {#sec-2-aac-07.125 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.125}

Repealed.

2 AAC 07.130 Statement of availability {#sec-2-aac-07.130 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.130}

Repealed.

2 AAC 07.135 Reactivation of names {#sec-2-aac-07.135 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.135}

Repealed.

Article 4 Reserved

2 AAC 07.140 Certification from eligible list {#sec-2-aac-07.140 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.140}

Repealed.

2 AAC 07.145 Requests for certification {#sec-2-aac-07.145 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.145}

Repealed.

2 AAC 07.150 Methods of filling vacancies {#sec-2-aac-07.150 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.150}

Repealed.

2 AAC 07.155 Certification of eligibles to fill vacancies {#sec-2-aac-07.155 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.155}

Repealed.

2 AAC 07.160 Waiver of eligible list in filling nonpermanent positions {#sec-2-aac-07.160 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.160}

Repealed.

Article 5 Appointments

2 AAC 07.165 Position must be allocated to a job classification {#sec-2-aac-07.165 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.165}

(a) An appointment, promotion, transfer, or demotion may not be made to a position in the classified or partially exempt service unless the position has been allocated to a class.

(b) An appointment may not be made to a nonpermanent position unless the position has been approved by the director.

(c) A commitment of appointment or salary rate may not be made to a prospective employee unless the requirements established under this chapter are satisfied.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.25.195

2 AAC 07.170 Selection for appointment {#sec-2-aac-07.170 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.170}

(a) Appointments to positions in the classified service must be made on the basis of merit by selection from persons eligible for appointment without public announcement, or from the available qualified applicants responding to an announcement of a vacancy taking into account the duties that are assigned to the position.

(b) When qualified applicants are ranked under the provisions of 2 AAC 07.106, appointments will normally be made from among the most qualified applicants. If practicable and in the best interest of the state service, vacancies will be filled by promotion.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.175 Affirmative action {#sec-2-aac-07.175 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.175}

The director shall establish procedures for appointment that give consideration to affirmative action goals and shall include requirements that appointing authorities give consideration to qualified applicants of protected groups if those groups are underutilized in the job class.

History

Authority: AS 39.25.050; AS 39.25.140 AS 39.25.070; AS 39.25.150
Eff. 6/28/84, Register 91; am 8/31/2000, Register 156; am 4/23/2004, Register 175; am 8/25/2005, Register 175

2 AAC 07.180 Substitute appointments {#sec-2-aac-07.180 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.180}

(a) With the prior approval of the director, an appointing authority may appoint a nonpermanent employee to perform the work of a permanent employee when the permanent employee is on leave. Appointment is limited to the duration of the incumbent's leave. Nonpermanent employees appointed under the provisions of this subsection do not have the rights of employees who hold permanent substitute appointments.

(b) An appointing authority may appoint a substitute permanent employee to perform the work of another permanent employee when the employee of record is on approved leave for a period expected to exceed the probationary period. The substitute employee appointed under the provisions of this section is entitled to all rights of a permanent employee except that the substitute employee will be laid off upon the return of the incumbent of record unless the substitute employee is on leave from another position under 2 AAC 07.500(4). In that case, the substitute employee shall return to the employee's own position with no right of layoff.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.185 Subfilling positions {#sec-2-aac-07.185 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.185}

(a) If authorized by the director, and in the absence of at least three qualified applicants, a position in the classified service may be filled by a person eligible for appointment to a lower class in the class series. Appointment may be made by any means required or authorized by 2 AAC 07.042 - 2 AAC 07.111 and 2 AAC 07.226 - 2 AAC 07.235 for the lower class.

(b) A position in the partially exempt service may be filled by a person eligible for appointment to a lower class in the same class series when the director authorizes specific authority to the principal head of a department or agency.

(c) The appointing authority shall advise the appointee in writing of the subfill conditions, and shall assign duties consistent with the lower classification.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.190 Emergency appointments {#sec-2-aac-07.190 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.190}

(a) An emergency appointment may be made by the appointing authority for a period not to exceed 30 calendar days under conditions necessitating immediate action to provide for work that must be continued in the public interest.

(b) A report describing the circumstances which required the emergency appointment must be made by the appointing authority to the director within 15 days following the appointment. When the need for action for filling a vacancy is known far enough in advance to afford an opportunity for appropriate action under some other provision of this chapter or AS 39.25, an emergency does not exist and an emergency appointment may not be made.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.195 Provisional appointments {#sec-2-aac-07.195 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.195}

(a) When authorized by the director in the absence of at least five qualified applicants, a provisional appointment of a qualified person may be made to fill a vacant position. The provisional appointment must be terminated upon the employee's competition for and appointment to the position or at the expiration of six months, whichever occurs first. When the director's evaluation of the response to an announcement of the vacancy indicates it to be in the best interests of the state service, the director may authorize the extension of a provisional appointment beyond six months.

(b) The appointing authority making a provisional appointment shall provide the director with a statement of the employee's qualifications.

(c) No person may receive more than one provisional appointment to the same position or serve in the position beyond the length of the probationary period.

(d) A provisionally appointed employee does not accrue seniority as a result of a provisional appointment except for the continuance of seniority in a lower class, unless the appointment later becomes a permanent appointment.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.200 Probationary status for provisional employees {#sec-2-aac-07.200 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.200}

Repealed.

2 AAC 07.205 Trainee appointments {#sec-2-aac-07.205 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.205}

A person appointed to serve as an intern or apprentice must participate in an established training program approved by the director.

History

Authority: AS 39.25.050; AS 39.25.140 AS 39.25.070; AS 39.25.150

2 AAC 07.210 Transfer appointments {#sec-2-aac-07.210 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.210}

Repealed.

2 AAC 07.215 Transition period for employees moved to classified service {#sec-2-aac-07.215 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.215}

An employee in the exempt or partially exempt service whose position is moved to the classified service may retain the position as an exempt or partially exempt employee for up to 12 months in order to establish entitlement to appointment in the classified service. Upon successful completion of competition for the classified service position, the individual may be appointed and serve a probation period. Range and step placement will be governed by 2 AAC 07.315 - 2 AAC 07.390.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 6/28/84, Register 91; am 8/24/94, Register 137; am 8/31/2000, Register 156

2 AAC 07.220 Direct appointment from other merit systems {#sec-2-aac-07.220 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.220}

With the prior approval of the director, merit system employees of the United States Government or the legislative or judicial branch of the Alaska State Government may, upon transfer to the executive branch of Alaska State Government, be appointed to the classified service, notwithstanding other provisions of this chapter.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.225 Rehire {#sec-2-aac-07.225 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.225}

Repealed.

2 AAC 07.226 Preferential rights due to a request from a pregnant employee {#sec-2-aac-07.226 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.226}

(a) An appointing authority may fill a position without public notice by request of a pregnant employee under AS 39.20.520.

(b) A candidate may not be appointed to a position that is suitable for a pregnant employee and to which a pregnant employee has requested to transfer under AS 39.20.520 until the pregnant employee has been offered the position and refused the offer

History

Authority: AS 39.20.520; AS 39.25.140 AS 39.25.070; AS 39.25.150
Eff. 4/23/2004, Register 175

2 AAC 07.227 Preferential rights due to layoff {#sec-2-aac-07.227 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.227}

If a position is not filled under 2 AAC 07.226, a person with preferential rights due to layoff may be appointed as follows:

(1) if the vacancy is in an organizational unit for which a layoff list has been established under 2 AAC 07.405, the person who is highest in the reverse order of layoff must be considered for the vacancy; the appointing authority may offer the position to the person or may determine not to fill the position; if an employment offer is made and that person declines the offer of appointment, the next person in the reverse order of layoff must be considered until the layoff list for the organizational unit is exhausted;

(2) if the vacancy is in an organizational unit for which no organizational unit layoff list exists, or if each person on the layoff list in the organizational unit has declined appointment, the person who is highest in the reverse order of layoff from all layoff lists in the department for the job class must be considered for the vacancy; the appointing authority may offer the position to the person or may determine not to fill the position; if an employment offer is made and that person declines the appointment, the next person in the reverse order of layoff from all layoff lists in the department for the job class must be considered until the layoff lists for the department for the job class are exhausted; however, if the vacancy exists because the position has been reallocated from another job class, if the appointment is not required to be made under the provision of this section, and the reallocation is based on duties that have been, are, and will be performed by the incumbent, the appointing authority may appoint the incumbent of the reallocated position to the new job class; this paragraph does not limit the appointing authority from filling the position through (3) of this section;

(3) if a vacancy is in an organizational unit for which an organizational layoff list and layoff list in the department for the job class do not exist, or if each person on the layoff lists for the job class in the organizational unit and department has declined appointment, and the appointing authority has determined not to appoint the incumbent under (2) of this section, the person who is highest in the reverse order of layoff from all layoff lists in all other departments for the job class must be considered for the vacancy; the appointing authority may offer the position to the person or may determine not to fill the position; if an employment offer is made and that person declines appointment, the next person in the reverse order of layoff from all layoff lists in all other departments for the job class must be considered until the layoff lists of all departments for the job class are exhausted.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 4/23/2004, Register 175

2 AAC 07.228 Preferential rights of injured state employees {#sec-2-aac-07.228 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.228}

(a) If a person is not appointed under 2 AAC 07.226 or 2 AAC 07.227, a person with preferential rights because of qualification under AS 39.25.158 as an injured state employee may be appointed.

(b) A request for a workers' compensation injury preference must be filed within 30 calendar days after the date the injured employee is released to full or modified employment by the injured employee's treating physician; the request for workers' compensation preference must

(1) be in writing; and

(2) be accompanied by a copy of the treating physician's release.

(1) a complete application for state employment under 2 AAC 07.086, specifying the geographic location where the injured employee will accept employment, and indicating whether the injured employee is interested in full-time, seasonal, or part-time employment;

(2) a physical capacities evaluation form completed and signed by the injured employee's treating physician; and

(3) other material that the director may require to evaluate the request made under this subsection.

(d) The director shall forward the materials submitted by the injured employee, along with a copy of the description of the position held by the employee at the time of injury, to the director of the division of vocational rehabilitation or to the workers' compensation reemployment benefits administrator for certification. If the injured employee is certified, the director will endeavor to place the employee in a position in accordance with AS 39.25.158.

(e) Nothing in this section prohibits an employee from applying for benefits for which the employee is qualified under AS 23.30 (Alaska Workers' Compensation Act).

(f) An injured employee may exercise the workers' compensation injury preference under this section only

(1) once for each injury in state employment;

(2) for a position for which the injured employee meets the minimum qualifications and is able to perform the essential functions; and

(3) for a position that provides a comparable wage, unless the injured employee agrees in writing to accept a position at a lower base pay rate.

(g) At any point in the placement process, the employee may agree in writing to accept a wage lower than one comparable to the employee's former position.

(h) If an injured employee completes retraining under AS 23.30.041, the injured employee may apply under provisions established by the director for vacancies for which the injured employee was retrained, is qualified, and is able to perform the essential functions.

(i) If the injured employee is not placed under this section, the director shall permit the appointing authority to fill the position under provisions of 2 AAC 07.041 - 2 AAC 07.113.

(j) A workers' compensation injury preference expires if the injured employee refuses a job offer under this section, or is placed in a position under this section, or accepts a probationary appointment through competition or non-preferential rights for a position at a comparable wage. If an injured employee receives a written offer of employment under this section and does not accept the offer within 10 calendar days of the date the offer is received, the offer is considered refused.

(k) The appointing authority shall notify any employee subsequently employed in a position vacated by an injured employee of the injured employee's rights under AS 39.25.158(c).

(l) In this section,

(1) "comparable wage" means a wage equal to at least 75 percent of the gross hourly rate of pay earned by the injured employee at the time of the injury; all comparable wage calculations are made using the geographic salary schedule applicable to the location of the position to which the injured employee is seeking to return;

(2) "injured employee" means a permanent, provisional or probationary employee in the classified service who suffers an injury or disease as defined by AS 23.30.395 that is covered by a compensable workers' compensation claim, and resulted in termination of employment due to the inability to perform the essential duties of the employee's position;

(3) "position" means a position in the classified service other than an emergency or nonpermanent position.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.25.158
Eff. 4/23/2004, Register 175

2 AAC 07.230 Order of preferential rights {#sec-2-aac-07.230 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.230}

An appointing authority may fill a position without public notice by the appointment of a person who has a preferential employment right in the following order of preference:

(1) due to a request to transfer by a pregnant employee under AS 39.20.520;

(2) due to layoff under 2 AAC 07.405;

(3) due to qualification under AS 39.25.158 as an injured state employee;

(4) due to reassignment of duties under 42 U.S.C. 12001 - 12213 (Americans with Disabilities Act).

History

Authority: AS 39.20.520; AS 39.25.140; AS 39.25.158 AS 39.25.070; AS 39.25.150
Eff. 4/23/2004, Register 175

2 AAC 07.235 Nonpreferential appointment rights without public notice, including transfer and rehire {#sec-2-aac-07.235 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.235}

(a) If not required to be filled under the provisions of 2 AAC 07.226 - 2 AAC 07.228, a vacancy may be filled without public notice by one of the means established in this section.

(b) An employee may be transferred within a department or to a different department. Any transfer that includes a change in location affected for the good of the service without the consent of the employee must be approved by the director. The intradepartmental or interdepartmental transfer of an employee does not change the employment status of the transferred employee.

(c) An employee who separated in good standing while holding a permanent or probationary appointment may be re-employed in the same job class or in a lower class in the same series without assessment within two years after the employee's date of separation.

(d) If the state has entered into a collective bargaining agreement that provides for appointment to be made under provisions of the agreement that are not consistent with the provisions of this section, an appointing authority may appoint a person under the terms of the collective bargaining agreement.

(e) The director may, solely at the director's discretion, designate job classes for which an appointing authority may request referrals for appointment from the Department of Labor and Workforce Development.

(f) If the vacancy exists because the position has been reallocated from another job class, an appointing authority may appoint the incumbent of the reallocated position to the new job class if the incumbent of the reallocated position meets the minimum qualifications of the new job class. The provisions of this subsection do not limit the appointing authority from filling the position through other means authorized in this section.

(g) An appointing authority may appoint a person who has a severe disability, as determined by the director of vocational rehabilitation, to a job class for which the person meets the minimum qualifications in provisional status for a period not to exceed four months within a 12-month period.

(h) If in the best interest of the state, and at the director's sole discretion, a current or former state employee who is receiving workers' compensation benefits, who is receiving disability retirement benefits or who has applied for disability retirement benefits, relating to their state employment, may be placed in a position in a job class for which the individual meets the minimum qualifications and is capable of performing the essential functions of the position.

(i) As authorized by AS 39.25.195(b), in appropriate circumstances, the director may waive the requirement of using the public announcement process of 2 AAC 07.056 in filling non-permanent positions.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.25.195
Eff. 6/4/2004, Register 175; am 8/25/2005, Register 175

Article 6 Probationary Periods

2 AAC 07.240 Objective of probation {#sec-2-aac-07.240 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.240}

Permanent appointment in the classified service is subject to a probationary period. It is an integral part of the examination process, which is to be used to evaluate the employee's work and conduct on the job. A supervisor may separate without prior notice any probationary employee whose overall performance is in the judgment of the appointing authority not fully acceptable.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.245 Duration of probation {#sec-2-aac-07.245 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.245}

(a) An employee appointed to a permanent position at salary range 13 or below must serve a six-month probationary period. An employee appointed to a permanent position at salary range 14 or above must serve a 12-month probationary period.

(b) A probationary employee who is appointed to a different position, other than by intradepartmental transfer, must serve a new probationary period. If the new appointment is a promotion within the same class series, the employee may complete the probationary period started in the lower position through service in the higher position.

(c) A permanent employee who is appointed to a different position, other than as a transfer, salary range change, or as a demotion within the same class series, must serve a new probationary period.

(d) An employee who has been recalled from a layoff list is subject to a probationary period only as necessary to complete any incomplete probationary period.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.250 Extension of probationary period {#sec-2-aac-07.250 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.250}

The probationary period will be extended one month for each accumulation of 23 working days of leave without pay except for periods of furlough under 2 AAC 07.407 or as otherwise provided by state or federal law.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.260 Return of permanent employee during probationary period {#sec-2-aac-07.260 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.260}

(a) If a probationary employee holding permanent status performs in less than a fully satisfactory manner during the probationary period, the employee may be returned without prior notice to the class in which permanent status is held, or transferred to another appropriate class at the salary range in which permanent status was obtained if the employee meets the minimum requirements for the class to which transferred.

(b) When returning or transferring an employee under (a) of this section, the appointing authority shall inform the employee in writing of the unsatisfactory performance and the reasons for the return or transfer.

(c) A return or transfer under subsection (a) of this section must be within the location and department in which probationary status is held. If no vacancy exists in the class in which permanent status is held, the employee must return to the department in which permanent status was gained with no change in geographic location. If no vacancy exists in the department and job class in which permanent status was gained, the employee will be placed into layoff from the department, job class, and status in which permanent status was gained and in the location of the probationary position from which the employee is being returned, or to another location designated as acceptable to the employee.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.270 Probationary status for provisional employees {#sec-2-aac-07.270 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.270}

(a) A provisional employee appointed to a permanent position under the provisions of 2 AAC 07.235(g) and who has demonstrated the ability to perform the duties of the position must be granted probationary status retroactive to the original date of provisional appointment. The employee's ability to perform in a fully satisfactory manner must be documented in a performance evaluation by the appointing authority as provided for in 2 AAC 07.295.

(b) Retroactive probationary status in the job class must be granted to a provisional employee appointed under 2 AAC 07.195 who is selected under 2 AAC 07.170 before the end of the provisional appointment.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 9/22/2004, Register 175; am 8/7/2013, Register 208

2 AAC 07.275 Completion of probation {#sec-2-aac-07.275 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.275}

Unless the appointing authority has demoted or dismissed the employee, or has notified the employee of non-retention, the employee attains permanent status upon completion of the probationary period.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

Article 7 Personnel Evaluation and Training

2 AAC 07.295 Personnel evaluation {#sec-2-aac-07.295 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.295}

(a) The director shall prescribe the nature, form, and frequency of personnel evaluations and may require a personnel evaluation at any time during an employee's probationary period.

(b) The director may take any action necessary to secure the correction of an evaluation report that is in error.

(c) The standards of performance that are established as a basis for personnel evaluation must relate to the duties of the employee's position and the job class to which it is allocated.

(d) The employee's supervisor shall discuss each personnel evaluation with the employee, with a goal of assisting the employee to understand the degree to which the employee is meeting the requirements of the position.

(e) The appointing authority shall file employee evaluations with the director. An employee evaluation is open to inspection by the employee or the employee's designated agent. The evaluations must also be open for inspection, for employment related considerations, by other officers and employees at the discretion of the director.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.300 Employee training {#sec-2-aac-07.300 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.300}

(a) The purpose of the employee training program is to assure continued high-quality service to the public by assisting employees in improving their job performance skills and in preparing for career changes in the best interest of the state.

(b) The director, in cooperation with appointing authorities and others, is responsible for establishing priorities within the training program. To the extent practicable, available resources will be allocated in accordance with the following priorities:

(1) training to improve performance in an employee's current position, including training to handle emergencies;

(2) training for skills required for higher level positions;

(3) retraining for other state jobs for employees facing layoff.

History

Authority: AS 39.25.050; AS 39.25.150

2 AAC 07.305 Intern and apprenticeship training programs {#sec-2-aac-07.305 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.305}

With the approval of the director, an appointing authority may establish intern or apprenticeship training programs.

History

Authority: AS 39.25.050; AS 39.25.150

2 AAC 07.310 Reimbursement agreement for education costs {#sec-2-aac-07.310 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.310}

At the discretion of the appointing authority, employees in the classified and partially exempt service receiving training for which they receive reimbursement for travel or educational costs may be required to sign an agreement to reimburse the state for all or part of the state's expenditure if they leave the service of the state as a result of their own action before the completion of a stated amount of service in accordance with procedures established by the Commissioner of Administration.

History

Authority: AS 39.25.050; AS 39.25.150

Article 8 Pay

2 AAC 07.315 Beginning salary {#sec-2-aac-07.315 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.315}

Except as provided in 2 AAC 07.315 - 2 AAC 07.390, the beginning salary of a newly appointed employee is the minimum rate for the job class.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.316 Salary for deputy heads of a principal department {#sec-2-aac-07.316 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.316}

(a) The initial step placement of a deputy head of a principal department shall be equal to a step in Range 28 of the salary schedule.

(b) If the employee was employed in the partially exempt or classified service before appointment as the deputy head of a principal department, and was receiving a salary higher than that established for the deputy head position, the employee shall be placed at a step or pay increment under AS 39.27.011 in Range 28 that constitutes a pay increase under 2 AAC 07.330.

(c) A deputy head of a principal department who is not eligible for pay increments under AS 39.27.011(h) or who is not covered by 2 AAC 07.330, must be appointed to a step in AS 39.27.011(a). However, if the employee was employed in the exempt service within the executive branch before appointment as a deputy head of a principal department and is receiving a salary higher than that established for the deputy head position, the employee shall be placed at range 28, step F and be paid at an exception rate of pay equal to the employee's former salary.

History

Authority: AS 39.20.080; AS 39.25.140; AS 39.27.011 AS 39.25.070; AS 39.25.150
Eff. 9/22/2004, Register 175; am 7/16/2008, Register 187; am 12/3/2008, Register 189

2 AAC 07.320 Exceptions for original appointments {#sec-2-aac-07.320 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.320}

(a) A beginning salary higher than the minimum rate for the job class may be authorized by the director for a position in the classified service or by the principal executive officer for a position in the partially exempt service. A salary rate higher than the minimum rate may only be authorized if

(1) the appointee is exceptionally qualified;

(2) recruitment is extremely difficult for a job class or particular position;

(3) the salary is authorized by the appointing authority under 2 AAC 07.325; or

(4) the appointee is an employee in the exempt or partially exempt service whose position was moved to the classified service due to reorganization.

(b) If the employee was a State of Alaska employee before appointment as a division director, and was receiving a salary higher than that established for the director position, the employee shall be entitled to continue to receive the higher rate of pay. In such cases, the employee shall be placed at step F and be paid at an exception rate of pay equal to the employee's former salary.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.27.011

2 AAC 07.325 Exception for former employee {#sec-2-aac-07.325 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.325}

A beginning salary higher than the minimum rate for the job class may be authorized by an appointing authority to a former employee eligible for noncompetitive rehire under 2 AAC 07.235 if the salary step does not exceed the salary step formerly earned by the employee.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.330 Promoted employee {#sec-2-aac-07.330 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.330}

(a) A promoted employee's salary must be equal to the salary of the lowest step at the higher range that provides at least the salary provided by a two-step increase in the range of the class from which promoted.

(b) A promoted employee who has served one-half or more of the time required for consideration for a step increase in the class from which promoted must receive at least the salary provided by a three-step increase in the range of the class from which promoted.

(c) For the purposes of this section, the two or three-step increase calculation in (a) and (b) of this section must include the merit and pay increments of AS 39.27.011 as applicable.

(d) Repealed 4/15/2007.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.27.011

2 AAC 07.331 Exceptions for initial appointment of an employee to a new job class {#sec-2-aac-07.331 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.331}

(a) A salary rate higher than that specified in 2 AAC 07.330 may be authorized by the director for a position in the classified service, or by the principal executive officer for a position in the partially exempt service, upon initial appointment to a new job classification for a current state employee when the appointment has been made through a competitive hire process. A salary rate higher than that specified in 2 AAC 07.330 may only be authorized if

(1) the appointee is exceptionally qualified; or

(2) recruitment is extremely difficult for a job class or particular position.

(b) The employee appointed under (a) of this section may not be placed in a pay increment under AS 39.27.011(h) in the new range.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.27.011
Eff. 9/22/2004, Register 175; am 7/16/2008, Register 187; am 7/8/2011, Register 200

2 AAC 07.333 Acting in a higher range {#sec-2-aac-07.333 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.333}

An employee who has received prior written delegation from the employee's principal executive officer to perform essentially all the duties of a specific position in a higher range than the employee's own for more than 15 consecutive calendar days shall, retroactive to the first day, be paid at the step in the higher range that would be appropriate in the case of a promotion. Upon resumption of the employee's normal duties, the employee will return to the employee's regular salary. Delegations to perform essentially all the duties of a specific position in a higher range may not exceed 60 consecutive calendar days unless an extension is approved in advance by the director as necessary for the economy or efficiency of the state service.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/24/94, Register 137; am 7/22/2004, Register 175

2 AAC 07.335 Salary range changes {#sec-2-aac-07.335 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.335}

When a job class is advanced in salary range assignment from one pay range to a higher pay range, the action is called a "salary range change." The simultaneous reallocation of some positions to other job classes does not affect the action on the remaining positions. The step of all employees in positions subject to the salary range change must be advanced to the same step in the new range.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.340 Laterally moved employee {#sec-2-aac-07.340 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.340}

The salary of an employee moving from one position to another position in the same range must remain unchanged.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.345 Demoted employees' salaries {#sec-2-aac-07.345 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.345}

(a) An employee may be demoted for cause under 2 AAC 07.420, voluntarily demoted in the same class series, or involuntarily demoted because the employee holds a position reallocated to a class at a lower pay range.

(b) If an employee is demoted for cause, the employee's step placement must remain unchanged or be at another higher step approved in advance by the director. If an employee is demoted to a class in which they have not previously attained permanent status, the employee shall serve a new probationary period.

(c) If an employee is voluntarily demoted in the same class series, or to a closely related class series, the employee's step will be the step that best reflects the earned step based upon creditable service, or other step approved in advance by the director.

(d) Repealed 8/24/94.

(e) The salary of the incumbent of a position that is reallocated to a class at a lower pay range will be paid according to the following:

(1) if the current salary is the same as a step in the new range, the employee will enter the new range at that step;

(2) if the employee's current salary falls within the lower range, but between merit steps, the employee's salary shall be placed at the lower step and the employee's salary shall remain frozen until the employee's next merit anniversary date that results in the award of a performance incentive, at which time the employee shall be placed at the next higher step;

(3) if the employee's current salary exceeds the maximum of the new range, it shall remain frozen until it is the same as any step or falls between steps, which appear on the salary schedule at the lower range; salaries, which are frozen, are not subject to any salary increase;

(4) for purposes of this subsection, employees whose positions are subject to a reallocation from one class to another may not be paid at a pay increment under AS 39.27.011(h), unless they have earned the step in the class occupied before the reallocation action or until the step is earned in the class to which the position is reallocated; time served at the final step or pay increment of the higher range shall be counted as time served at the final step or pay increment in the lower range.

History

Authority: AS 39.25.070; AS 39.25.170 AS 39.25.140; AS 39.27.011

2 AAC 07.347 Salary of downward moved employee, other than demotion {#sec-2-aac-07.347 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.347}

The salary of an employee moving from one position to another position in a lower pay range that is not a demotion shall be determined under 2 AAC 07.315 - 2 AAC 07.325 as appropriate.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/24/94, Register 137; am 9/28/96, Register 143

2 AAC 07.349 Exception for initial appointment subject to personnel rules {#sec-2-aac-07.349 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.349}

If an employee who occupied a position subject to a collective bargaining agreement is appointed to a position in the partially exempt service, the appointing authority may set the employee's salary in accordance with 2 AAC 07.315 - 2 AAC 07.325, in lieu of setting the employee's salary in accordance with the provisions of 2 AAC 07.330, 2 AAC 07.340, 2 AAC 07.345, or 2 AAC 07.347, as applicable. The employee may not be placed in a pay increment under AS 39.27.011(h).

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.27.011
Eff. 12/24/98, Register 150; am 7/22/2004, Register 175; am 7/16/2008, Register 187

2 AAC 07.350 Step differentials excluded {#sec-2-aac-07.350 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.350}

Geographical pay-step differentials under AS 39.27.020 must be excluded in the determination of step placement.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.355 Effective date of appointments {#sec-2-aac-07.355 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.355}

(a) An appointment is normally made effective on the employee's first working day. An appointment may be made effective on the first of a pay period even though that day does not fall on a regular working day.

(b) Upon initial appointment, an employee may only be appointed on a holiday if the employee is required to work on that holiday.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.360 Merit anniversary date {#sec-2-aac-07.360 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.360}

(a) The first day of the pay period following completion of the probationary period is the employee's merit anniversary date if the employee enters the pay range at the beginning step.

(b) The first day of the pay period following completion of one year of service is the employee's merit anniversary date if the employee enters the pay range above the beginning step.

(c) This section also applies to the establishment of a new merit anniversary date whenever an employee's movement between positions requires a new probationary period under 2 AAC 07.245.

(d) The merit anniversary date of a partially exempt employee shall be determined as if the employee were in the classified service.

(e) If a merit increase is withheld under the provisions of 2 AAC 07.365, the employee's merit anniversary date shall be moved forward one calendar year based on full-time employment or a proportionately longer period, if appropriate under the provisions of (f) and (g) of this section. If a merit increase is subsequently granted before one calendar year, the employee's merit anniversary date shall remain the same.

(f) The merit anniversary date is based on full-time employment. The merit anniversary date for part-time and seasonal employees will be proportionately longer.

(g) The merit anniversary date must be moved one month later for each 23 days of leave without pay in a year beginning December 16 and ending the following December 15, unless the leave without pay is for a furlough under 2 AAC 07.407 or as otherwise provided under state or federal law.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.365 Merit increases {#sec-2-aac-07.365 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.365}

(a) Merit increases may be granted or withheld based upon the appointing authority's evaluation of an employee's performance.

(b) A merit increase of one step in the salary range shall be given on the merit anniversary date to an employee whose performance is considered "acceptable" or better and of progressively greater value to the state unless the appointing authority takes proactive action to deny a merit increase documented in a performance evaluation before the merit anniversary date. Any monetary increase shall be effective on the merit anniversary date.

(c) If an employee receives an overall performance evaluation of "Outstanding," a merit increase of two steps in the range may be given on the merit anniversary date at the discretion of the appointing authority. No merit increase may place an employee at a higher salary level than the top merit step of the employee's assigned salary range.

(d) A merit increase may be withheld if the employee has received an overall performance rating of "Low Acceptable" or "Unacceptable". An appointing authority may grant a merit increase when one has been withheld once the employee demonstrates improved performance resulting in a new evaluation with an overall performance rating of "Acceptable" or better. Such increase is effective the first day of the pay period after the employee's performance evaluation documenting the improved performance is signed by the division director.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.368 Pay increments {#sec-2-aac-07.368 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.368}

(a) Except as otherwise provided in secs. 23 and 24, ch. 21, SLA 2008, pay increments shall be provided after an employee has remained in the final step within a given range for two years, and every two years thereafter, if, at the time the employee becomes eligible for the increment, the employee's current annual rating as documented through a performance evaluation is designated as "good" or higher.

(b) If a pay increment is withheld due to the employee's current annual rating at the time the employee becomes eligible for the increment is designated as less than "good", the employee's pay increment date shall be moved forward one calendar year based on full-time employment or a proportionately longer period, if appropriate under the provisions of (d) and (e) of this section.

(c) An appointing authority may grant a pay increment when one has been withheld once the employee demonstrates improved performance resulting in a new performance evaluation with a rating of "good" or higher. Such increment is effective the first day of the pay period after the employee's performance evaluation documenting improved performance is signed by the division director. The employee must remain at this pay increment for two years before becoming eligible for the next pay increment.

(d) For purposes of applying AS 39.27.011(h), the two year requirement for employee eligibility for pay increments shall be based on full-time employment. The pay increment eligibility period for part-time and seasonal employees will be proportionately longer in accordance with (e) of this section.

(e) The pay increment eligibility date must be moved one month later for each 23 days of leave without pay in a leave year unless leave without pay is for a furlough under 2 AAC 07.407 or as otherwise provided under state or federal law. For part-time or seasonal employees, the difference between the time worked of the part-time or seasonal employees and that of a fulltime employee is considered to be leave without pay for purposes of establishing the pay increment eligibility date under this section and AS 39.27.011(h).

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.27.011
Eff. 7/16/2008, Register 187; am 7/4/2010, Register 196; am 10/29/2015, Register 216

2 AAC 07.370 Withholding a merit increase {#sec-2-aac-07.370 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.370}

Repealed.

2 AAC 07.375 Withdrawing a salary step {#sec-2-aac-07.375 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.375}

(a) If an employee's work performance becomes less than acceptable, the appointing authority shall evaluate the performance of the employee and provide the employee with a copy of the performance evaluation. If the level of work performance does not become acceptable within a 30-day period, one step in the salary range may be withdrawn effective the first day of the pay period following written notification to the employee of the step withdrawal action and the reasons for the step withdrawal.

(b) No more than one salary step in the range may be withdrawn in a merit anniversary year.

(c) If an employee's performance becomes acceptable after a step withdrawal action, the salary step may be restored, effective the first day of the pay period following finalization of a performance evaluation report confirming the improved level of performance. The performance evaluation report is finalized when signed by the employee's division director.

(d) This section does not apply to employees in pay increments under AS 39.27.011(h).

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.27.011

2 AAC 07.380 Salary as total remuneration {#sec-2-aac-07.380 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.380}

The salary paid to an employee is the total remuneration for the employee, exclusive of reimbursement for official travel. Except as otherwise provided in this chapter or with the prior approval of the director, no employee may receive pay from the state in addition to the salary authorized under the schedule provided in the pay plan.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.385 Pay rates {#sec-2-aac-07.385 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.385}

(a) Employees will be paid on a monthly, daily, hourly, or other basis, that is consistent with sound accounting practices.

(b) Regular pay periods and paydays will be established. The Department of Administration will make a schedule of paydays available so that an employee can determine the payday with certainty in advance of the payday.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 6/28/84, Register 91

2 AAC 07.390 Overtime compensation {#sec-2-aac-07.390 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.390}

(a) Overtime eligibility and entitlements, including accrual and use and payment for compensatory time off, must be in accord with 29 U.S.C. 201 - 219 (Fair Labor Standards Act).

(b) Repealed 11/5/2010.

(d) Repealed 11/5/2010.

(e) Repealed 11/5/2010.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.392 Overpayment {#sec-2-aac-07.392 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.392}

(a) An overpayment discovered within one year from the time the overpayment was made will be recovered in full. An overpayment discovered after one year from the time the overpayment was made may be partially reduced or forgiven at the director's discretion unless the overpayment was the result of fraud, deception, or the employee's negligence, as determined by the director.

(b) An overpayment will be collected at the same rate at which the overpayment accrued unless an alternate repayment rate is approved by the director. If an employee separates from service, however, any remaining overpayment will be collected in full.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/25/2005, Register 175; am 7/8/2006, Register 179

Article 9 Separation and Demotion

2 AAC 07.395 Resignations {#sec-2-aac-07.395 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.395}

An employee is expected to provide at least two weeks' written notice before the effective date of resignation as a condition for resigning in good standing. An employee who fails to provide two weeks notice before the effective date of the resignation will not be considered to have resigned in good standing unless the appointing authority waives this requirement. An employee may withdraw a resignation at any time before the effective date with the written approval of the appointing authority.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.400 Suspensions {#sec-2-aac-07.400 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.400}

(a) The appointing authority may suspend any employee with or without pay while conducting an investigation into alleged misconduct.

(b) The appointing authority may suspend any employee without pay for misconduct. If the appointing authority suspends an employee for misconduct, the appointing authority shall provide the employee with a written statement of the reasons for the suspension.

(c) The appointing authority shall file a copy of the statement with the director. No seniority accrues during any period of suspension without pay. Upon the employee's return to duty, the period of suspension will be treated as leave without pay for the purposes of this chapter, including effect upon leave and anniversary dates.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.405 Layoff {#sec-2-aac-07.405 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.405}

(a) An appointing authority may lay off an employee in the classified service if the employee holds a substitute appointment, if a position is abolished, if there is a shortage of work or money, or for other reasons outside the employee's control. A layoff does not reflect discredit on the service of the employee. The name of a laid-off former employee must be placed on the appropriate layoff list and may remain on it for a period of up to three years. The name of a laid-off former employee may be removed from the layoff list for any reason that an applicant would be disqualified. If an employee resigns or retires, the laid-off former employee is considered to have separated without prejudice at the time of layoff.

(b) A permanent or probationary employee in the classified service may not be laid off while emergency, provisional, or nonpermanent employees are serving in the same class in the same location and the same department or organizational unit, or serving in other classes performing work to which the permanent or probationary employee could reasonably be assigned. If a permanent or probationary employee is reassigned to the emergency, provisional, or nonpermanent work, that employee shall be paid at the salary range assigned to the new position. Step placement shall be based on the rules outlined in 2 AAC 07.330, 2 AAC 07.340, or 2 AAC 07.345, as applicable.

(c) The order of layoff must be based upon performance evaluations and seniority under provisions established by the director.

(d) The appointing authority may allow an employee to volunteer for layoff before an employee whose name appears higher in the order of layoff.

(e) The appointing authority shall give a permanent or probationary employee at least two weeks' notice before the employee is laid off. The notice must be written and must state the reason for the layoff. The appointing authority shall provide the director with a copy of the notice.

(f) The names of permanent or probationary employees who are voluntarily demoted instead of being laid-off must be placed on the appropriate layoff list for the class from which demoted and remain on it for a period of up to three years or until appointed to a position at or above the salary range from which demoted, whichever comes first. The name of a laid-off former employee may be removed for any reason provided in 2 AAC 07.112.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.407 Furlough {#sec-2-aac-07.407 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.407}

An appointing authority may furlough an employee in the classified or partially exempt service, for up to 10 working days in a fiscal year without regard to the layoff provisions of 2 AAC 07.405, if the principal executive officer of the department makes a written finding, subject to approval by the governor, that a furlough is necessary to meet budgetary constraints. The appointing authority shall provide an employee with at least two weeks advance notice of a furlough. A furlough shall be treated as if the employee were in pay status in its effects on the probationary period, leave accrual, and merit anniversary dates.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 8/24/94, Register 137; am 7/22/2004, Register 175

2 AAC 07.410 Status of seasonal employees {#sec-2-aac-07.410 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.410}

A seasonal employee will be placed on seasonal leave without pay at the end of the prescribed work season. The employee remains the incumbent of the position and is not placed on layoff status.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.415 Dismissal {#sec-2-aac-07.415 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.415}

(a) The appointing authority may dismiss a permanent employee for just cause only. Except in cases of egregious misconduct, the permanent employee must be given two weeks' notice before the dismissal, unless the employee's presence at the work site is contrary to the best interests of the state, in which case the employee will receive two weeks pay in lieu of notice.

(b) In cases of egregious misconduct, the employee is subject to immediate dismissal. "Egregious misconduct" includes chemical or alcohol impairment, disobedience, dishonesty, physical misconduct, abusive or lewd behavior, or abandonment of duties.

(c) If the appointing authority dismisses an employee, the appointing authority shall provide the employee with a written statement of the reasons for dismissal. The appointing authority shall file a copy of the statement with the director.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.416 Effects of violations of federal or state law {#sec-2-aac-07.416 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.416}

(a) An employee who receives a citation requiring a court appearance, or who is arrested or convicted for a misdemeanor or felony, must report the citation, arrest, or conviction to the employee's division director by the end of the following working day. An employee who fails to report a citation, arrest or conviction may be subject to disciplinary action, up to and including dismissal.

(b) An employee who violates a federal or state law or regulation may be subject to disciplinary action up to and including dismissal if there is a clear nexus between the offense and the employee's duties or if the violation impairs the employee's ability to perform the duties of the employee's position.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 9/22/2004, Register 175

2 AAC 07.420 Involuntary demotion {#sec-2-aac-07.420 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.420}

(a) An appointing authority may demote an employee for just cause to a lower class in the same class series or to another class series if the employee meets the minimum qualifications. The reasons for the demotion must be given to the employee in writing and a copy filed with the director. If the employee is placed in a new class in which the employee did not previously hold permanent status, the employee must serve a new probationary period.

(b) In addition to the provisions in (a) of this section, an employee with permanent status who is serving a new probationary period may be returned without prior notice to the class in which the employee holds permanent status or the employee may be transferred under 2 AAC 07.260.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.425 Voluntary demotion {#sec-2-aac-07.425 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.425}

A permanent employee may elect to take a voluntary demotion to a lower class in the same, or closely related, class series. For purposes of this section, "permanent employee" includes an employee in the partially exempt service, however, an employee in the partially exempt service may voluntarily demote only to a position in the partially exempt service.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

Article 10 Disputes: Hearings and Appeals

2 AAC 07.435 Procedure for all complaints other than dismissal, demotion, or suspension over 10 consecutive working days, or a total of 30 working days in a 12-month period {#sec-2-aac-07.435 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.435}

(a) An employee in the classified service who is not covered by a collective bargaining agreement may file a complaint. No act of reprisal may be taken against the complainant or against any other employee taking part in the presentation or adjudication of a complaint, as a result of good-faith use of the complaint procedures established by this section.

(b) An employee who has a complaint relating to the employee's position, to the employee's working conditions, or to a condition of the employee's employment, or regarding non-retention, may be heard in accordance with the following procedures:

(1) within 10 working days after the action being disputed, the employee shall present the complaint in writing to the employee's division director; the division director will attempt to resolve the complaint and shall issue a written finding to the employee within 10 working days after presentation of the complaint;

(2) if the employee is not satisfied by the written findings of the division director under (1) of this subsection, the employee may pursue the complaint by submitting it in writing to the commissioner of administration within five working days after the response from the division director is due; the commissioner of administration shall issue a written finding to the complainant within 15 working days after presentation of the complaint; the commissioner's findings are the final administrative decision;

(3) If the employee fails to meet the timeframes set out in (1) or (2) of this subsection, the appeal is considered moot and will not be considered further; timeframes set out in (1) and (2) of this subsection may be extended by mutual agreement between the complainant and the designated responder;

(4) repealed 10/29/2004;

(5) repealed 10/29/2004.

(d) Repealed 10/29/2004.

(e) Repealed 10/29/2004.

(f) Repealed 10/29/2004.

(g) Repealed 10/29/2004.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.440 Appeal procedure in the case of dismissal, demotion, or suspension over 10 consecutive working days, or a total of 30 working days or more in a 12-month period {#sec-2-aac-07.440 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.440}

(a) A permanent employee in the classified service who is not covered by a collective bargaining agreement, and who is, dismissed, demoted, or suspended for more than 10 consecutive days, or more than a total of 30 working days in a 12-month period may appeal as follows:

(1) within five days following receipt of written notification, the employee may address an appeal in writing to the principal executive officer of the employing agency setting out the reasons for the appeal;

(2) if a satisfactory resolution is not obtained through the decision of the principal executive officer within five working days after the date of the appeal, the employee may appeal the action to the personnel board;

(3) if the action of the principal executive officer is appealed, the personnel board will consider the appeal of the employee; if a hearing is requested, the board will, as soon as practicable, set a date, time, and place for the hearing; the board will give at least two weeks' written notice of the hearing to both the employee and the appointing authority, and will hold the hearing within 60 days after the date of the appeal; the hearing will be closed if requested by the employee; the employee may be represented by counsel at the hearing.

(b) A hearing conducted by the personnel board under (a) of this section will be held in accordance with the following guidelines:

(1) the hearing will be open to the public, unless the issue involves confidential information that is protected under AS 39.25.080; the disputing employee may request a closed hearing;

(2) the personnel board will schedule the hearing date as required under AS 39.25.170; in its discretion, the personnel board will appoint a hearing officer who shall promptly schedule a pre-hearing conference with the parties; at the pre-hearing conference, the hearing officer may require the parties to submit pre-hearing briefs, and exchange witness and exhibit lists; the hearing officer may set a deadline for filing motions; the hearing officer may provide for and regulate pre-hearing discovery; the hearing officer has the authority to sign subpoenas issued under AS 39.25.175;

(3) a party to the appeal may be represented by counsel upon giving written notice to the other parties and to the board or the hearing officer within five working days before the hearing;

(4) all witnesses must be sworn;

(5) the board, or hearing officer will, in its discretion, admit any pertinent evidence, regardless of the existence of any common law, statutory, or judicial rule that may bar the admission of such evidence in a judicial proceeding, if it is the sort of evidence upon which responsible persons are accustomed to rely in the conduct of serious affairs; hearsay evidence may be used for the purpose of supplementing or explaining direct evidence, but will not be sufficient in itself to support a finding, unless it would be admissible over objection in a civil action;

(6) at the hearing, each party, commencing with the party who bears the burden of proof, shall present its position and may

(A) utilize oral testimony taken under oath or affirmation;

(B) examine witnesses;

(D) cross-examine opposing witnesses on matters relevant to the issues even though that matter was not covered in the direct examination;

(E) discredit a witness regardless of which party first called the witness to testify;

(F) rebut the evidence against that party;

(G) make closing arguments or submit post-hearing briefs to be determined in the discretion of the hearing officer or personnel board;

(7) pleadings, motions, and other papers must conform to the service procedures set out in the Alaska Rules of Civil Procedure;

(8) upon prior request and approval, witnesses, parties, and their counsel may appear by teleconference;

(9) notwithstanding any provisions in (1) of this subsection, the personnel board will, in its discretion, ask questions of any party or witness at any point during the hearing; in its discretion, the personnel board or the hearing officer may seek additional evidence; all parties to the appeal must be duly notified and given an opportunity to participate in the consideration of additional evidence; the personnel board or the hearing officer may require parties to the appeal and witnesses to remain available to assist in the event additional evidence is sought;

(10) if the hearing is held by a hearing officer, the hearing officer shall issue a proposed decision within 15 working days after the hearing is completed;

(11) unless otherwise contrary to this chapter, all phases of the hearing except the deliberations of the personnel board and the hearing officer shall be recorded;

(12) the personnel board will maintain a record of the proceedings for two years after completion of the action.

(c) If a dispute hearing under this section is held by a hearing officer, the personnel board may adopt the proposed decision in its entirety, or may revise the proposed penalty and adopt the balance of the proposed decision.

(d) If a dispute hearing under this section is held by a hearing officer and the proposed decision is not adopted under (c) of this section, the personnel board, in its discretion, may decide the dispute upon the record including the transcript or tape recording of the earlier hearing, with or without taking additional evidence, or may refer the dispute to the same or another hearing officer to take additional evidence.

(e) If the dispute is referred to a hearing officer for the taking of additional evidence, the hearing officer shall prepare a proposed decision based upon the additional evidence and the record of the earlier hearing. The board will, in its discretion, give the parties the opportunity to present argument, either oral or written, before the board. If oral argument is presented, a board member may not vote unless that member heard the oral argument.

(f) If, in the hearing under (a)(3) or (b) of this section, the board finds that the action complained of was due to discrimination based on race, religion, color, national origin, age, physical or mental disability, sex, marital status, change in marital status, pregnancy, parenthood, political beliefs, or any other reason not related to merit, or in violation of the provisions of the State Personnel Act (AS 39.25) or this chapter, the employee must be reinstated without loss of pay or benefits for the period of dismissal, demotion, or suspension. In all other cases the personnel board will report its findings and recommendations to the appointing authority, the employee, and to the director.

(g) The time limits established in this section may be extended by the director if it is determined that the limits impose undue restrictions upon either party.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.25.170

2 AAC 07.445 Interagency disputes {#sec-2-aac-07.445 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.445}

For a dispute arising from a personnel issue involving two or more agencies, the appointing authorities of the agencies involved shall attempt to resolve the dispute. If the dispute is not resolved, one or more of the agencies may present the matter to the director for review. The director shall make recommendations to the agencies involved and to the commissioner of administration. The decision of the commissioner of administration is final.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.450 Resolution of complaints made by the public {#sec-2-aac-07.450 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.450}

(a) Members of the general public have the right to resolution of complaints arising out of application for state employment, state employment examinations, and the selection process under the procedures established in this section.

(b) Inquiries involving the application, examination, or selection process may be submitted to the division of personnel and labor relations. Inquiries by telephone and personal appearance will be treated as informal inquiries and will be handled by a division of personnel and labor relations employee who is qualified to answer questions or correct a mistake. The inquiry may be submitted in writing, or reduced to writing for submission at the request of a division of personnel and labor relations employee. A written inquiry, appeal, or other similar communication submitted to the division of personnel and labor relations within 10 working days after the action complained of will be treated as a complaint. The director shall investigate the complaint, take appropriate action to resolve the complaints and issue a final written decision within 15 working days. The decision of the director is final.

(d) The time limits established in this section may be extended by the director if it is determined that the limits impose undue restrictions upon either party.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 6/28/84, Register 91; am 9/28/96, Register 143; am 4/23/2004, Register 175

Article 11 Leave

2 AAC 07.500 When a leave of absence may be granted {#sec-2-aac-07.500 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.500}

The principal executive officer may grant a leave of absence from a position under any of the following conditions:

(1) to permit a permanent employee of the classified service to accept an appointive position in the exempt or partially exempt service upon a finding by the principal executive officer that such leave is in the best interest of the department; the granting of such leave must be in writing with a copy provided to the employee and the director before the leave begins; such leave may be for a period not to exceed four years but may be extended in writing by the principal executive officer for additional periods;

(2) upon application by a permanent or probationary employee for disability because of sickness or injury such leave is limited to one month for each full month of probationary/permanent service up to a maximum of 24 months; the principal executive officer may from time to time require the employee to submit a certificate from the attending physician or from a designated physician as evidence that the leave should be continued; entitlements to time off from work provided by federal or state statute or regulation run concurrently with the provisions of this regulation;

(3) upon application by a permanent or probationary employee for travel or study calculated to equip the employee to render more effective service to the state;

(4) upon application by a permanent or probationary employee to accept a substitute appointment to a position from which an incumbent of record is on military leave covered under 38 U.S.C. 4301 - 4334 (Uniformed Services Employment and Reemployment Rights Act) or an approved leave under (1) - (3) of this section.

History

Authority: AS 39.20.225; AS 39.25.150; AS 39.25.195

2 AAC 07.505 Copies to be provided {#sec-2-aac-07.505 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.505}

Copies of all approvals of leaves of absence must be provided to the director.

History

Authority: AS 39.25.150
Eff. 6/28/84, Register 91; am 7/22/2004, Register 175

2 AAC 07.510 Filling a position while incumbent on approved leave {#sec-2-aac-07.510 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.510}

Positions with incumbents on approved leave may be filled by a substitute appointment under 2 AAC 07.180.

History

Authority: AS 39.25.150

2 AAC 07.515 Cancellations of leaves of absence {#sec-2-aac-07.515 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.515}

A leave of absence from a position is subject to cancellation by the principal executive officer at any time upon prior written notice to the employee, specifying a reasonable date of termination of the leave. The principal executive officer shall cancel the leave upon a finding that the employee is using the leave for purposes other than that specified at the time of approval.

History

Authority: AS 39.25.150 Article 12. - 18. Reserved.

2 AAC 07.800 Organizational units {#sec-2-aac-07.800 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.800}

(a) An appointing authority may propose subdivision of an agency into organizational units for purposes of employment or layoff by submitting a written plan for subdivision to the director. Organizational units may be recognized on the basis of geographic area, function or class of employment, and may be different for different classes and types of employment. For purposes of this section, the types of employment are full-time, part-time and seasonal.

(b) The director shall notify the appointing authority of recognized organizational units, and those units must after that be used as a basis for employment or layoff. The appointing authority shall post a copy of the notice of recognition and shall distribute copies of the notice to affected employees.

(c) The director may withdraw recognition of organizational units created under this section upon notice to the appointing authority at any time the director determines that withdrawal of recognition is in the best interests of the state service.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.805 Hours of work {#sec-2-aac-07.805 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.805}

The normal workweek shall consist of hours of work or pay from Sunday midnight to Sunday midnight. The number of hours worked per week shall be the same as those worked by the majority of state employees whose work hours are established pursuant to a collective bargaining agreement under AS 23.40.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.810 Holidays {#sec-2-aac-07.810 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.810}

(a) The following days are observed as holidays for state employees who are in permanent, provisional or probationary status:

(1) the first of January, known as New Year's Day;

(2) the third Monday of January, known as Martin Luther King Jr.'s Birthday;

(3) the third Monday in February, known as President's Day;

(4) the last Monday in March, known as Seward's Day;

(5) the last Monday in May, known as Memorial Day;

(6) the Fourth of July, known as Independence Day;

(7) the first Monday in September, known as Labor Day;

(8) the 18th of October, known as Alaska Day;

(9) the 11th of November, known as Veterans' Day;

(10) the fourth Thursday in November, known as Thanksgiving Day;

(11) the 25th of December, known as Christmas Day;

(12) every day designated by public proclamation by the President of the United States as a national holiday or by the governor of the state as a legal holiday; an executive order limited to closing federal offices does not constitute a public proclamation of a national holiday.

(b) If a holiday listed in (a) of this section falls on a Sunday, the following Monday shall be observed as a holiday.

(d) All employees may be directed to work on a day designated to be observed as a holiday, except for New Year's Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. If an employee is directed to work on a day designated to be observed as a holiday, the employee's personal leave account shall be credited with an additional day of leave.

(e) For purposes of this section, "observed" means a day off from work with pay.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 1/16/88, Register 109; am 2/28/90, Register 126; am 12/28/90, Register 126; am 7/22/2004, Register 175

2 AAC 07.815 Demonstration projects authorized {#sec-2-aac-07.815 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.815}

(a) Except as provided in this section, the director may conduct and evaluate demonstration projects. Subject to the provisions of this section, demonstration projects may provide the following:

(1) the methods of establishing qualification requirements for recruitment and appointment to positions;

(2) the methods of classifying positions and compensating employees; and

(3) the methods of assigning, reassigning, evaluating, or promoting employees.

(b) The director may waive any provision of this chapter for a demonstration project under this section if the waiver is consistent with AS 39.25 (State Personnel Act) and other applicable law.

(c) The director will develop a plan for a demonstration project, before conducting the demonstration project, which identifies

(1) the purposes of the project;

(2) the types of employees, applicants, or positions to be included;

(3) the methodology;

(4) the expected duration; and

(5) a specific citation to any provision of this chapter that is waived for the demonstration project.

(d) Before implementing the demonstration project, the director shall present the demonstration project plan to the personnel board for comment.

(e) The director shall evaluate the results of each demonstration project to assess the degree to which its purposes have been achieved.

(f) A report of all ongoing demonstration projects shall be made to the personnel board every six months specifically reporting any new waivers. The waivers are effective until rejected by the personnel board.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150
Eff. 1/15/97, Register 150; am 8/31/2000, Register 156; am 7/22/2004, Register 175

2 AAC 07.900 Purpose {#sec-2-aac-07.900 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.900}

The purpose of 2 AAC 07.005 - 2 AAC 07.999 is to establish a personnel system based on principles of merit and to assure equal employment opportunity for all applicants and employees of the state covered by this chapter.

History

Authority: Ak. Const.,Art. XII, sec. 6AS 39.25.010
Eff. 6/28/84, Register 91

2 AAC 07.905 Scope of chapter {#sec-2-aac-07.905 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.905}

This chapter applies to positions in the classified service and to nonpermanent positions. This chapter applies to positions in the partially exempt service only as specifically provided. This chapter does not apply to persons in the exempt service under AS 39.25.110.

History

Authority: AS 39.25.090

2 AAC 07.910 Personnel records {#sec-2-aac-07.910 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.910}

(a) This section applies to the records of applicants for state employment and to the employment records of current and former classified and partially exempt employees.

(b) As provided in AS 39.25.080, the following information, if available, is open for public inspection:

(1) names and position titles of all state employees;

(2) the position held by a state employee or a former employee;

(3) the prior positions held by a state employee;

(4) whether the employee or former employee is, or was, in the classified, partially exempt, or exempt service;

(5) the dates of appointment and separation of a state employee; and

(6) the compensation authorized for a current state employee.

(c) All other records of applicants for employment and employees in the classified and partially exempt service, including applications and resumes, are confidential and will be released only under the following conditions:

(1) to a state agency, for personnel related activities; the director shall establish and maintain a list of state officials and employees whose duties require the use of state personnel records; those state officials and employees on the list will be granted access to personnel records for use in connection with activities related to the state system of personnel administration; the state official or employee who requests information must sign an agreement that confidential information will not be released or made public;

(2) to the child support services agency created under AS 25.27.010 or the child support agency of another state; the custodian of a state personnel record, in the custodian's discretion, shall request identification to verify that the person requesting the record is authorized by statute to receive the record; if satisfied that the person requesting the record is authorized by statute to receive the record, the custodian shall promptly make the record available;

(3) to a state agency for any other purpose; information maintained in personnel records will be released upon receipt of a written authorization from the employee, former employee, or applicant for employment whose records are requested; if no such authorization is submitted, personnel records will be released to other state officials and employees who are authorized by statute to review such state documents, upon receipt of a subpoena issued by competent authority and the execution of an agreement that confidential information will not be released or made public;

(4) to the public, upon receipt of a written authorization from the employee, former employee, or applicant for employment whose records are requested, or upon receipt of an order of a court of competent jurisdiction;

(5) a request for records not covered by paragraphs (1) - (4) of this subsection will be addressed to the director; the director or director's designee shall review the request and may approve the release of information if that release would be in the best interests of the state and can be accomplished without violation of the employee's, former employee's, or applicant's right to privacy.

History

Authority: AS 39.25.080; AS 39.25.140; AS 39.25.150

2 AAC 07.915 Job references {#sec-2-aac-07.915 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.915}

An employee who is serving or has served as the direct supervisor of a current or former employee, or that supervisor's successor or designee, may disclose information about the job performance of an employee or former employee to a prospective employer of the employee or former employee at the request of the prospective employer, or the employee or former employee, in accordance with AS 09.65.160. This disclosure may be from information that is open to public inspection or from the supervisor's, successor's, or designee's direct personal knowledge of the employee's or former employee's job performance.

History

Authority: AS 39.25.140; AS 39.25.150
Eff. 9/16/94, Register 135; am 9/28/96, Register 143

2 AAC 07.920 Written personnel actions {#sec-2-aac-07.920 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.920}

A personnel action affecting a position or employee in the classified or partially exempt service must be issued in writing on a form that is approved by the director. A copy of the action must be provided to the director by the issuing authority.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.930 Personnel duties {#sec-2-aac-07.930 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.930}

The director may delegate personnel responsibilities and duties to the principal executive officer of principal departments of the executive branch. The delegated responsibility must be exercised personally by that employee unless further delegation has been approved by the director.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.940 Prohibitions {#sec-2-aac-07.940 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.940}

Repealed 11/16/87.

2 AAC 07.950 Nepotism {#sec-2-aac-07.950 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.950}

(a) No person may be employed in the classified or partially exempt service in a department or agency if that person is the spouse of, or is related by blood or marriage, within and including the second degree of kindred, to the principal executive officer of the department or agency, to the principal executive officer's deputy or to an assistant principal executive officer.

(b) An appointing authority may not appoint a person to a classified or partially exempt position in a division of a state department or agency if that person is related by blood or marriage, within and including the second degree of kindred, to the director of that division, to a deputy director, or to an assistant director.

(c) Upon written approval of the principal executive officer of the department or agency, an appointing authority may appoint a person to a classified or partially exempt position in a state department or agency if that person is related by blood or marriage, within and including the second degree of kindred, to an employee in the department or agency unless the appointment places a person in a direct supervisory relationship to a person related by blood or marriage within and including the second degree of kindred, or that is prohibited by (a) or (b) of this section, or the employee otherwise has the authority to take or withhold official action affecting the terms or conditions of the immediate family member's employment in a manner that violates state law.

(d) A copy of any written approval of appointment executed under subsection (c) of this section must be filed with the director.

History

Authority: AS 39.25.150; AS 39.52.910; AS 39.90.020

2 AAC 07.960 Other employment {#sec-2-aac-07.960 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.960}

Repealed 11/16/87.

2 AAC 07.970 Reporting violations {#sec-2-aac-07.970 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.970}

(a) An employee having knowledge of a violation of the provisions of this chapter or the State Personnel Act (AS 39.25) shall report the violation to the employee's supervisor or appointing authority if the violation concerns some person in the reporting employee's agency or department. If the violation concerns a person that is not employed by the same agency or department as the reporter, then the report must be made to the director.

(b) A supervisor or appointing authority notified under (a) of this section shall:

(1) investigate the allegation;

(2) prepare a written statement of the findings;

(3) take any necessary action in accordance with this chapter and the Personnel Act to correct the violation;

(4) take appropriate disciplinary action against the officer or employee responsible for the violation; and

(5) report the findings and actions taken to the principal executive officer.

(c) When a violation of this chapter or the State Personnel Act (AS 39.25) is reported to the director under (a) of this section, the director shall notify the principal executive officer of the appropriate agency or department.

(d) The principal executive officer shall report all instances of violations of the provisions of this chapter or the State Personnel Act to the attorney general. A copy of the report must be sent to the director.

(e) No act of reprisal may be taken against an employee as a result of good-faith use of this section.

History

Authority: AS 39.25.070; AS 39.25.150 AS 39.25.140; AS 39.25.210
Eff. 6/28/84, Register 91

2 AAC 07.980 Enforcement {#sec-2-aac-07.980 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.980}

(a) The director shall enforce this chapter. The director may, in the performance of an official duty, correct the status of an employee, change an employee's salary, or vacate or otherwise correct any appointment which is not in accordance with state law and this chapter. An affected employee may appeal any determination of the director made under this section to the personnel board.

(b) If a violation of this chapter occurs, and a department head or the appointing authority fails to enforce the personnel rules within a reasonable period of time, the director shall take whatever action is necessary to secure compliance with the rules.

History

Authority: AS 39.25.040; AS 39.25.070; AS 39.25.150 AS 39.25.050; AS 39.25.140

2 AAC 07.990 National emergency or civil disaster {#sec-2-aac-07.990 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.990}

(a) In the event of a national emergency or civil disaster, emergency appointments may be made to the state service under AS 39.25.195 - 39.25.200.

(b) A manager or supervisor may assign employees to other duties for the duration of the emergency or disaster.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

2 AAC 07.999 Definitions {#sec-2-aac-07.999 omnilex-key=us-ak-regs-official--title-2--2 AAC 07.999}

Unless the context indicates otherwise, in this chapter

(1) "appeal" means a permanent employee's appeal of a dismissal, demotion, or suspension over 10 consecutive working days, or a total suspension over 30 working days in a 12-month period;

(2) "appointing authority" means the official to whom appointing authority has been assigned or delegated under AS 39.25.020;

(3) "assessment" means a method or device used by an appointing authority to determine or evaluate an applicant's knowledge, skill, ability, education, or experience in order to fairly predict the applicant's satisfactory performance of the duties of the position;

(4) "class" or "class of positions" means one or more positions sufficiently similar as to duties and responsibilities, degree of supervision exercised or required, and as to entrance requirements, that the same descriptive title may be used to designate them;

(5) "class series" means a grouping of two or more classes sharing a common title, and characterized by duties that are similar in nature but with different and progressively higher degrees of responsibilities;

(6) "class specification" is a written statement of duties and responsibilities, that are characteristic of a class of positions; "class specification" includes the education, experience, knowledge, and ability required to perform the work of the class of positions;

(7) "classification plan" means the orderly arrangement into classes of all positions in the classified and partially exempt services;

(8) "complaint" means an employee's notice to the employee's division director of dissatisfaction regarding working conditions, the manner of application or failure to apply personnel laws, rules, or policies as established or interpreted by the director, disciplinary action excluding dismissal, demotion, or suspension over 30 days or over a total of 30 working days in a 12-month period, or the allocation of the employee's position;

(9) "consideration" means an assessment of a candidate during the selection process when the appointing authority has obtained enough knowledge of the candidate's background in relationship to the job to determine whether or not the candidate should be selected, rejected, or given further consideration; methods of consideration can range from a review of the candidate's work history, or application, to a telephone or in-person interview; the appointing authority must be prepared to provide the applicant with the job-related reason for which the applicant was not selected;

(10) "demotion" means the movement of an employee from one salary range to a lower salary range in the same, or closely related class series; under the provisions of 2 AAC 07.440, demotion applies only to permanent employees;

(11) "director" means the director of the division of personnel and labor relations in the Department of Administration;

(12) "disabled veteran" has the meaning given in AS 39.25.159;

(13) "dismissal" means the involuntary separation of a permanent employee from the state service for reasons other than layoff;

(14) "domicile" means the true and permanent home of a person, from which the person has no present intention of moving and to which the person intends to return whenever the person is away;

(15) "emergency employee" means an employee appointed for a period not to exceed 30 calendar days whose appointment was made under conditions requiring immediate action to carry on work required in the public interest;

(16) "employee" means a person in the state service who is paid a salary or wage and who is

(A) wholly subject to the State Personnel Act in AS 39.25 and this chapter (classified employee); or

(B) partially subject to that Act and this chapter (partially exempt employee);

(17) "good standing" means upon separation an employee provided at least two weeks notice of separation to the employee's immediate supervisor unless the appointing authority waives this requirement, and the employee's last performance evaluation on record reflects an overall rating of mid-acceptable or higher; resignation during the pendency of an investigation or in lieu of nonretention or dismissal does not constitute good standing;

(18) "layoff" means the separation of an employee due to a shortage of work, insufficient funds, the abolishment of a position, the release of a substitute appointment because the permanent incumbent returns to work, or for any other reason not reflecting discredit on the employee;

(19) "nonpermanent employee" means an employee in the classified service whose employment is time-limited;

(20) "nonpermanent position" means a work assignment of less than 120 days, or a work assignment established for a specific program or project;

(21) "nonretention" means separation of a probationary employee from a position due to failure to complete the probationary period;

(22) "partially exempt service" means those positions in the state service listed or provided for in AS 39.25.120 and 39.25.130;

(23) "pay plan" means the salary schedule established and amended by the legislature;

(24) "performance evaluation" means a written appraisal of an employee's job related performance, on the form provided by the director;

(25) "permanent employee" means an employee in the classified service who has completed a probationary period during the current period of service;

(26) "permanent position" means a position in the classified service requiring the services of a full or part-time employee that is not time-limited;

(27) "position" means a group of duties and responsibilities assigned by the appointing authority requiring the full-time or part-time employment of one employee or the part-time employment of one or more employees;

(28) "principal executive officer" means the highest ranking administrative officer of each principal office and department of the state; unless otherwise provided, the responsibilities assigned in this chapter may be delegated in accordance with AS 44.17.010;

(29) "probationary employee" means an employee who is serving an initial probationary period in the classified service;

(30) "probationary period" means a working test period following an appointment and preceding permanent employment in a class;

(31) "promotion" means the movement of an employee from one salary range to a higher salary range;

(32) "provisional appointment" means an appointment in the classified service made without competition, either

(A) with the prior approval of the director in the absence of at least five qualified applicants; or

(B) of a person who is a client of the division of vocational rehabilitation and has a severe disability as determined by the director of vocational rehabilitation;

(33) "ranking" means the assignment of a qualified applicant to a position on a scale from highest to lowest, based upon assessment results;

(34) "reallocation" means the action taken to place an existing position in a different class;

(35) "resignation" means the voluntary separation of an employee from state service;

(36) "seasonal position" means a permanent position established to meet recurring seasonal needs of less than 12 months' duration during any calendar year;

(37) "second degree of kindred" means a father, mother, son, daughter, brother, sister, grandfather, grandmother, grandson, or granddaughter, in a full, half, or step relationship;

(38) "separation" means the conclusion of employment in a job class or with the state; "separation" includes resignation, termination, nonretention, dismissal, and layoff;

(39) "state" means the State of Alaska;

(40) "substitute appointment, nonpermanent" means the appointment of a nonpermanent employee to a permanent position or a group of permanent positions in the same class while the incumbent is on authorized leave of absence;

(41) "substitute appointment, permanent/probationary" means an appointment made to a position that is to be vacant for longer than six months because of an authorized leave of absence where the incumbent has reinstatement rights;

(42) "suspension" means an enforced leave of absence without pay for disciplinary purposes or pending investigation of charges made against an employee;

(43) "termination" means the release from employment of a nonpermanent, emergency, or temporary employee upon completion of the term of service or the need for services;

(44) "test" means a validated set of questions, problems, or exercises used in the recruitment and selection process for a job class or a job class series for determining a person's knowledge, abilities, aptitude, or qualifications;

(45) "transfer" means the lateral movement of an employee from one position to another position in the same job class or to a parallel job class at the same pay range without any break in service;

(46) "vacancy" means a position with no incumbent, a position requiring the part-time employment of more than one employee with less than that number of incumbents, or a position with one or more incumbents at the time of a reallocation until an appointment is made to the new job class;

(47) "veteran" has the meaning given in AS 39.25.159.

History

Authority: AS 39.25.070; AS 39.25.140; AS 39.25.150

Chapter 08 Leave Rules

2 AAC 08.010 Coverage {#sec-2-aac-08.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.010}

(a) Except as provided in (b) of this section, the regulations in this chapter apply to all employees in the executive branch, permanent employees of the legislature, and employees of the Alaska Court System and the Judicial Council.

(b) The regulations in this chapter do not apply to

(1) members of the state legislature, the governor, the lieutenant governor, and justices and judges of the supreme and superior courts and of the Court of Appeals;

(2) magistrates serving the state on less than a full-time basis;

(3) officers, members of the teaching staff, and employees of the University of Alaska;

(4) persons employed in a professional capacity to make a temporary and special inquiry, study, or examination as authorized by the governor, the legislature, or a legislative committee;

(5) members of boards, commissions, and authorities who are not otherwise employed by the state;

(6) temporary or nonpermanent employees;

(7) persons employed by the division of marine transportation as masters and members of the crews operating the state ferry system who are covered by collective bargaining agreements as provided in AS 23.40.040, except as provided by AS 39.20.245(b); and

(8) persons employed by the state who are covered by collective bargaining agreements as provided in AS 23.40.210 except as provided in such an agreement and except as provided by AS 39.20.245(b).

History

Authority: AS 22.20.037; AS 39.20.310 AS 24.10.060; AS 39.20.320
Eff. 6/28/84, Register 91; am 4/6/86, Register 102; am 6/26/2009, Register 192

2 AAC 08.020 Application for leave of absence {#sec-2-aac-08.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.020}

Application for leave of absence must be made on forms prescribed by the director.

History

Authority: AS 39.20.320
Eff. 6/28/84, Register 91

2 AAC 08.030 Leave accounting {#sec-2-aac-08.030 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.030}

(a) Upon return to duty after leave usage, or after each pay period that the employee is absent, a completed leave report must be submitted to the employee's supervisor.

(b) Upon receipt of the completed leave slip, the employee's leave account will be adjusted for the pay periods during which the employee was on leave.

(c) Accrued leave must be posted at the end of each monthly pay period. Prorated accrued leave may be posted at the end of each pay period.

(d) Leave may not be used before it is accrued and posted to the employee's leave account.

History

Authority: AS 39.20.320
Eff. 6/28/84, Register 91; am 5/16/90, Register 132; am 9/11/2022, Register 246

2 AAC 08.040 Leave accrual {#sec-2-aac-08.040 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.040}

(a) Employees will accrue leave at the rate established by statute.

(b) Accrual rate changes will become effective the 16th day of the month following the monthly pay period in which the employee completes the service requirement and becomes eligible for the higher accrual rate.

(c) The departmental payroll office will provide each employee with a statement of leave accrual, usage and assessments at least once each year.

History

Authority: AS 39.20.200
Eff. 6/28/84, Register 91

2 AAC 08.045 Cash value of personal leave {#sec-2-aac-08.045 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.045}

(a) Personal leave accrued by an employee during each pay period is converted to a cash value by multiplying the hours accrued during that pay period by the employee's annualized hourly rate of pay for the pay period. The resulting amount shall be added to the cash-value amounts calculated for previous pay periods. The total of all the cash values is the cash value of the employee's personal leave balance.

(b) Repealed 9/11/2022.

(d) The cash value of personal leave when personal leave is used by the employee as time off shall be reduced by the employee's annualized hourly rate times the number of hours used on a first-in-first-out basis. For "first-in-first-out basis", the value of the leave accrued earliest is subtracted from the balance to calculate the remaining value of the cash value after the use of accrued leave.

(e) The value of leave donated under AS 39.20.245(a) for the memorial scholarship revolving loan fund, or to a scholarship account in the fund, under AS 14.43.250 - 14.43.325 is calculated in the manner set out at (d) of this section.

(f) The value of leave donated by an employee to another employee for leave for medical reasons under AS 39.20.245(b) is calculated by multiplying the employee's present annualized hourly rate by the number of hours of leave donated and the resulting amount by the annualized hourly rate of the donee.

(g) The value of leave cashed in under 2 AAC 08.065 is calculated in accordance with (d) of this section.

History

Authority: AS 39.20.200; AS 39.20.320
Eff. 8/29/96, Register 143; am 9/11/2022, Register 246

2 AAC 08.050 Use of personal leave {#sec-2-aac-08.050 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.050}

(a) Accrued personal leave is available for use after an employee has completed 30 continuous calendar days of employment. Personal leave may be granted at any time business permits with the prior approval of the employee's supervisor.

(b) Personal leave for medical reasons must be granted if the supervisor is satisfied that the employee is absent for a "medical reason" as defined in AS 39.20.225(b) or for family leave under AS 39.20.305, except that family leave need not be granted to two employees simultaneously for a serious health condition of the parent or child of two employees. Employees must provide prior notice of foreseeable use of family leave to the principal executive officer of their agencies and must make reasonable efforts to schedule family leave so as not to unduly disrupt the state's operations in accordance with AS 39.20.305(b). Family leave for pregnancy and childbirth, or the placement of a child, other than the employee's stepchild, with the employee for adoption may be taken on an intermittent or reduced schedule basis until the employee has recovered from the incapacity of delivery or the child has been placed for adoption. Thereafter, family leave shall be taken in a single block of time.

(c) If wage continuation payments are made to an employee under the Alaska Workers' Compensation Act (AS 23.30), the amount of those payments will be deducted from payments for personal leave. The employee's accrued personal leave account will be charged only to the extent that payments are made for personal leave.

(d) Leave use by an employee who is receiving a higher rate of pay under 2 AAC 07.333 shall be at the employee's normal rate of pay that would apply absent the delegation to perform essentially all the duties of a specific position in a higher range.

(e) Repealed 10/29/2015.

(f) Repealed 10/29/2015.

(g) Repealed 10/29/2015.

(h) Repealed 10/29/2015.

(i) Repealed 10/29/2015.

History

Authority: AS 39.20.225; AS 39.20.305 AS 39.20.256; AS 39.20.320
Eff. 6/28/84, Register 91; am 7/25/94, Register 137; am 8/29/96, Register 143; am 10/19/13, Register 208; am 10/29/2015, Register 216

2 AAC 08.060 Mandatory use of personal leave {#sec-2-aac-08.060 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.060}

(a) At least 10 days of personal leave must be used each leave year. Employees and supervisors will be advised by the employee's payroll office on or before October 16 of each year how many days of personal leave must be used to fulfill the 10-day minimum requirement under AS 39.20.225, 2 AAC 08.062, and this section. For the purpose of this subsection, "personal leave" means paid personal leave or authorized leave without pay; it does not include disciplinary leave without pay and unauthorized leave without pay.

(b) If the employee does not schedule the mandatory 10 days of personal leave or remainder of it, the employee's supervisor may direct the employee to use the appropriate amount of personal leave to satisfy the 10-day requirement.

(c) If at the end of the leave year the employee has failed to use the 10 days of personal leave required, the difference between 10 days and the amount of personal leave actually used and its cash value will be deducted from the employee's personal leave account and cash value balances. No payment will be made to the employee for the personal leave that was deducted.

(d) Notwithstanding the provisions of (c) of this section, the unused portion of the mandatory 10-days' personal leave will not be deducted from the personal leave account and cash value balances if the employee's department or agency head certifies in writing that the employee was denied the opportunity to use mandatory personal leave.

(e) When an employee changes employment or changes to a new bargaining unit resulting in a change from annual and sick leave to a personal leave plan, or from personal leave to an annual and sick leave plan, the employee will be subject to the mandatory leave usage provisions of the unit in which employed at the end of the leave year.

(f) An employee under a leave plan requiring the use of more than five days of mandatory leave each year, who changes to a leave plan requiring only five days of mandatory leave each year will not receive a refund of, or payment for, leave used in excess of the mandatory requirement.

(g) Repealed 10/16/87.

(h) Five or fewer days of personal leave cashed-in under 2 AAC 08.065 may be applied to the employee's mandatory personal leave requirement under AS 39.20.225, 2 AAC 08.062, and this section.

History

Authority: AS 39.20.200; AS 39.20.225; AS 39.20.320
Eff. 6/28/84, Register 91; am 10/16/87, Register 107; am 8/29/96, Register 143; am 12/16/2013, Register 209

2 AAC 08.062 Accumulation of personal leave {#sec-2-aac-08.062 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.062}

(a) Except as provided in AS 39.20.240, 2 AAC 08.060, and this section, personal leave that is not taken by an employee during the leave year accumulates for the employee's use in succeeding leave years.

(b) Except as provided in (d), (e) and (f) of this section, an employee may not accumulate more than 1,000 hours of personal leave at the end of each leave year.

(c) If an employee's personal leave balance is projected to exceed 1000 hours at the end of the leave year, the employee and supervisor will be notified by the employee's payroll office by May 1 of each year, and the employee must submit a plan to use the personal leave to the employee's supervisor for written approval by June 1 of each year. The supervisor will approve the plan so long as the plan does not significantly disrupt business operations. If the employee's plan is not approved, the supervisor will suggest an alternative plan. If the employee fails to submit a plan, adhere to an approved plan, or the employee and the employee's supervisor fail to agree on a plan, the employee's division director or equivalent will order the employee to take sufficient personal leave to reduce the employee's balance or potential leave balance at the end of the leave year below the accumulation maximum. The agreed upon plan may be amended with mutual agreement of the employee and supervisor.

(d) An employee may be approved to carry over more than 1000 hours of accrued personal leave to succeeding leave years if the department or agency head certifies in writing that the employee was unable to reduce the employee's accrued hours because the employee was denied the opportunity to use the personal leave due to

(1) fire, flood, or other emergency affecting the employer's operation; or

(2) the assignment of work of a priority nature over a substantial period of the leave year.

(e) If on the first day of the leave year, an employee has an accumulated balance of more than 1000 hours, the difference between the employee's personal leave balance and 1000 hours shall be deducted from the employee's personal leave account and paid to the employee at the cash value except that the requirements of 2 AAC 08.060(c) continue to apply.

(f) This subsection only applies to an employee who had a balance of accumulated personal leave in excess of 400 hours on December 16, 2013. Each employee shall, until that balance becomes 400 hours or less on the first day of any subsequent leave year,

(1) be exempt from the limitation under (b) and (c) of this section; and

(2) take at least 15 days of personal leave during each leave year in place of the 10 days under 2 AAC 08.060.

History

Authority: AS 39.20.200; AS 39.20.225; AS 39.20.320
Eff. 12/16/2013, Register 209; am 10/29/2015, Register 216

2 AAC 08.065 Leave cash-in {#sec-2-aac-08.065 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.065}

(a) An employee covered by this chapter who has at least five days of accrued personal leave may cash in personal leave six or fewer times in a leave year. The employee's personal leave account and cash value balances will be reduced by the number of days and cash value of personal leave cashed in. A leave cash-in must not reduce an employee's leave balance to less than five days.

(b) Repealed 10/16/87.

(d) Leave cash-in by an employee who is receiving a higher rate of pay under 2 AAC 07.333 shall be at the employee's normal rate of pay that would apply absent the delegation to perform essentially all the duties of a specific position in a higher range.

History

Authority: AS 39.20.200; AS 39.20.240 AS 39.20.225; AS 39.20.320
Eff. 4/6/86, Register 102; am 10/16/87, Register 107; am 7/25/94, Register 137; am 8/29/96, Register 143; am 7/4/2010, Register 196; am 12/16/2013, Register 209

2 AAC 08.070 Donation of personal leave {#sec-2-aac-08.070 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.070}

(a) Any employee covered by this chapter may donate the cash value of one or more days of personal leave each year to the memorial scholarship revolving loan fund, or to a scholarship account in the fund.

(b) Any employee, whether covered by the authority of this chapter or a collective bargaining agreement, may donate accrued personal or annual leave to another employee for use as leave for medical reasons.

(c) Leave donated under the authority of this chapter or a collective bargaining agreement does not reduce the mandatory leave requirement under AS 39.20.225, 39.20.240, 2 AAC 08.060, and 2 AAC 08.062.

History

Authority: AS 39.20.200; AS 39.20.240; AS 39.20.320 AS 39.20.225; AS 39.20.245
Eff. 6/28/84, Register 91; am 4/6/86, Register 102; am 8/29/96, Register 143; am 12/16/2013, Register 209

2 AAC 08.075 Use of donated leave for medical reasons {#sec-2-aac-08.075 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.075}

The recipient of leave donated under 2 AAC 08.070(b) may use the leave for purposes described in 2 AAC 08.050(b) only when all accrued personal leave has been exhausted and all banked sick leave under 2 AAC 08.090(b) has been exhausted or is not available due to the time threshold of 2 AAC 08.090(b)(2).

History

Authority: AS 39.20.245; AS 39.20.320
Eff. 11/24/98, Register 150

2 AAC 08.078 Leave for organ or bone marrow donation {#sec-2-aac-08.078 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.078}

Notwithstanding 2 AAC 08.010(b)(1) - (4) and (6) - (8), an employee is eligible for paid administrative leave of not more than 80 hours and not less than 40 hours within a leave year, unless the employee requests fewer hours, to make a personal organ or bone marrow donation under AS 39.20.275.

History

Authority: AS 39.20.275; AS 39.20.320
Eff. 6/26/2009, Register 192

2 AAC 08.080 Transfer of annual and personal leave {#sec-2-aac-08.080 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.080}

(a) If an employee transfers with no break in service to a position not covered by a collective bargaining agreement, accrued annual or personal leave will be transferred to the employee's new personal leave account.

(b) If an employee transfers, with no break in service, to a position that is covered by a collective bargaining agreement, accrued annual or personal leave will be transferred to the employee's new annual or personal leave account.

History

Authority: AS 39.20.255; AS 39.20.320
Eff. 6/28/84, Register 91; am 8/29/96, Register 143

2 AAC 08.090 Transfer and use of accrued sick leave {#sec-2-aac-08.090 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.090}

(a) Employees covered by this chapter accrue personal leave in lieu of sick and annual leave. Employees who have accrued a sick leave balance under the terms of a collective bargaining agreement who move to a position not covered by a collective bargaining agreement with no break in service will have 40 percent of that sick leave transferred to the employee's personal leave account and 60 percent of that sick leave transferred to a surplus sick leave bank. The sick leave that is transferred to the employee's personal leave account will be converted to cash value at the employee's rate of pay on the effective date of the transfer to personal leave.

(b) Banked sick leave may not be used unless the employee has

(1) no accrued personal leave; and

(2) a medical disability exceeding 10 consecutive working days in duration; or

(3) a medical disability exceeding 30 consecutive working days in duration.

(c) Subsections (b)(1) and (2) of this section operate as a single rule, prohibiting the use of banked medical leave until all personal leave has been used for a single medical disability continuing for more than 10, but less than 30, consecutive working days.

(d) Subsection (b)(3) of this section may be applied only if a single medical disability exceeds 30 consecutive working days. After the 30th consecutive working day of absence, the employee's personal leave account will be credited for each day of paid personal leave used in excess of 10 days, and the employee's banked sick leave account will be reduced by the same amount. The banked sick leave account may then be used until the medical disability is terminated or until the banked sick leave account is exhausted. If the employee's banked sick leave account is exhausted during the single disability, the employee's personal leave account will be used for the remainder of the absence due to medical disability. If the employee's personal leave account is then exhausted during the single disability, the remainder of the absence will be charged to donated leave, if any, then to leave without pay.

(e) An employee's supervisor may, at any time, request a doctor's certificate showing that an employee is suffering from a medical disability or illness. A doctor's certificate must be submitted before banked medical leave may be used under (b)(3) of this section.

(f) The use of leave in connection with pregnancy and childbirth under AS 39.20.225(b)(4) will be considered leave for a medical disability.

(g) Upon the death of an employee, any unused balance in the employee's sick leave bank shall be paid in cash to the employee's beneficiary at the employee's current rate of pay.

History

Authority: AS 39.20.200; AS 39.20.256; AS 39.20.320

2 AAC 08.095 Use of leave without pay {#sec-2-aac-08.095 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.095}

(a) Leave without pay may be required in connection with employee discipline.

(b) Leave without pay may be taken by an employee as part of the eighteen-workweek family leave after the personal leave balance is reduced to five days. An employee may choose whether to retain or exhaust the five-day balance before taking the remaining family leave as leave without pay.

(c) Leave without pay may be taken during the period an employee is unable to work; use of personal leave shall be treated as leave without pay to the extent of wage continuation payments made under the Workers' Compensation Act.

(d) The principal executive officer of a department or agency may authorize leave without pay at the request of an employee for a period of up to 12 months. The principal executive officer shall determine whether the employee must use all accrued personal leave before the period of leave without pay begins.

(e) Repealed 5/8/92.

(f) A furlough under 2 AAC 07.407 is not leave without pay.

History

Authority: AS 39.20.320
Eff. 6/28/84, Register 91; am 4/16/86, Register 102; am 5/8/92, Register 123; am 7/25/94, Register 137

2 AAC 08.100 Effect of leave without pay on the leave anniversary date {#sec-2-aac-08.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.100}

The leave anniversary date must be moved one month later for each 23 days of leave without pay in a leave year unless the leave without pay is in connection with military service under AS 26.10.060, or is for a furlough under 2 AAC 07.407.

History

Authority: AS 39.20.320
Eff. 6/28/84, Register 91; am 5/16/90, Register 132; am 7/25/94, Register 137

2 AAC 08.105 Effect of termination and reemployment on banked sick leave {#sec-2-aac-08.105 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.105}

(a) Except as provided in 2 AAC 08.090(g), an employee's banked sick leave account will be cancelled without pay upon termination of employment with the state.

(b) Former employees who return to state service are not entitled to credit for cancelled banked sick leave earned in previous employment.

History

Authority: AS 39.20.256

2 AAC 08.110 Separation and terminal leave {#sec-2-aac-08.110 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.110}

(a) Payment for unused personal leave shall be allowed upon separation from service. The payment equals the cash value of the employee's personal leave balance at the time of separation from state service.

(b) Employees who go on personal leave and subsequently give notice of resignation, or who do not return to work, will be considered to have separated on the last day worked. No additional leave will accrue after the last day worked.

(c) Any exception to the policy stated in (b) of this section requires the prior written approval of the commissioner of administration.

History

Authority: AS 39.20.250; AS 39.20.320

2 AAC 08.120 Interpretation of regulations {#sec-2-aac-08.120 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.120}

The commissioner, Department of Administration, is the final authority in deciding questions raised regarding the interpretation of this chapter.

History

Authority: AS 39.20.320
Eff. 6/28/84, Register 91

2 AAC 08.999 Definitions {#sec-2-aac-08.999 omnilex-key=us-ak-regs-official--title-2--2 AAC 08.999}

(a) Unless the context indicates otherwise, in this chapter

(1) "day of leave" means the number of hours normally scheduled to be worked in a workweek, divided by five;

(2) "director" means the director of personnel in the State of Alaska Department of Administration;

(3) "employee" means all officers and employees of the State of Alaska subject to the provisions of this chapter;

(4) "leave year" means the period from January 1 through December 31 and includes the 12-month period described in AS 39.20.295;

(5) repealed 9/11/2022;

(6) "pay period" means a period not longer than one month that is the basis for calculating full or prorated pay and leave accrual under 2 AAC 07.385 and 2 AAC 08.030;

(7) "principal executive officer" means the highest ranking administrative officer of each principal office and department of the state.

(b) For purposes of AS 39.20.256(b) "consecutive days" means that personal leave for medical reasons is used for at least a portion of each workday.

(c) For purposes of AS 39.20.225 "immediate family" means spouse, child, father, mother, sister, brother, father-in-law, and mother-in-law.

History

Authority: AS 39.20.295; AS 39.20.320

Chapter 10 Collective Bargaining Among Public Employees

Article 1 (Deleted and Repealed)

2 AAC 10.010 Place of filing {#sec-2-aac-10.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.010}

Deleted.

2 AAC 10.020 Petition for certification of public employee representative {#sec-2-aac-10.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.020}

Deleted.

2 AAC 10.030 Petition for decertification of public employee representative {#sec-2-aac-10.030 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.030}

Deleted.

2 AAC 10.040 Petition for certification by public employer {#sec-2-aac-10.040 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.040}

Deleted.

2 AAC 10.050 Petition for clarification of unit or amendment of certification {#sec-2-aac-10.050 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.050}

Deleted.

2 AAC 10.060 Investigation of petition {#sec-2-aac-10.060 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.060}

Deleted.

2 AAC 10.070 Posting notice of petition {#sec-2-aac-10.070 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.070}

Deleted.

2 AAC 10.080 Intervention {#sec-2-aac-10.080 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.080}

Deleted.

2 AAC 10.090 Hearing {#sec-2-aac-10.090 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.090}

Repealed 6/2/78.

2 AAC 10.095 Additional ballot choices {#sec-2-aac-10.095 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.095}

Deleted.

2 AAC 10.100 Conduct of hearing {#sec-2-aac-10.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.100}

Repealed 6/2/78.

2 AAC 10.110 General criteria for bargaining units {#sec-2-aac-10.110 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.110}

Deleted.

2 AAC 10.140 Notice of election {#sec-2-aac-10.140 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.140}

Deleted.

2 AAC 10.150 Voting eligibility and voting roster {#sec-2-aac-10.150 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.150}

Deleted.

2 AAC 10.160 Election procedures {#sec-2-aac-10.160 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.160}

Deleted.

2 AAC 10.165 Form of ballots {#sec-2-aac-10.165 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.165}

Deleted.

2 AAC 10.170 Challenged ballots {#sec-2-aac-10.170 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.170}

Deleted.

2 AAC 10.180 Objections concerning the election {#sec-2-aac-10.180 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.180}

Deleted.

2 AAC 10.190 Certification of election results {#sec-2-aac-10.190 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.190}

Deleted.

2 AAC 10.200 Runoff election {#sec-2-aac-10.200 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.200}

Deleted.

2 AAC 10.210 Organizational activities {#sec-2-aac-10.210 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.210}

Deleted.

2 AAC 10.220 Definitions {#sec-2-aac-10.220 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.220}

Deleted.

Article 2 (Deleted and Repealed)

2 AAC 10.230 Place of filing {#sec-2-aac-10.230 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.230}

Repealed 6/14/74.

2 AAC 10.231 Commencement of unfair labor practice proceeding; accusation {#sec-2-aac-10.231 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.231}

Deleted.

2 AAC 10.235 Investigation and informal resolution {#sec-2-aac-10.235 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.235}

Deleted.

2 AAC 10.240 Contents of complaint or accusation {#sec-2-aac-10.240 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.240}

Repealed 6/2/78.

2 AAC 10.250 Resolution of complaint or accusation {#sec-2-aac-10.250 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.250}

Deleted.

Article 4 Right of Nonassociation

2 AAC 10.300 Exemption from Public Employment Relations Act {#sec-2-aac-10.300 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.300}

Deleted.

History

Eff. 6/2/78, Register 66; deleted 1/2009, Register 188

Article 5 (Deleted)

2 AAC 10.400 Notice of hearings {#sec-2-aac-10.400 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.400}

Deleted.

2 AAC 10.410 Conduct of hearings {#sec-2-aac-10.410 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.410}

Deleted.

2 AAC 10.420 Prehearing conference {#sec-2-aac-10.420 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.420}

Deleted.

2 AAC 10.430 Burden of proof {#sec-2-aac-10.430 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.430}

Deleted.

2 AAC 10.440 Orders {#sec-2-aac-10.440 omnilex-key=us-ak-regs-official--title-2--2 AAC 10.440}

Deleted.

Chapter 12 Procurement

Article 1 Source Selection

2 AAC 12.010 Nondiscrimination in source selection {#sec-2-aac-12.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.010}

Source selection may not be based on discrimination because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, disability, or political affiliation.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104; am 6/29/95, Register 134

2 AAC 12.020 Exclusion of prospective contractor from competition {#sec-2-aac-12.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.020}

A procurement officer may exclude a prospective contractor from submitting a bid or proposal, or may reject a prospective contractor's bid or proposal, after making a written determination that the prospective contractor assisted in drafting the invitation to bid or request for proposal, or gained substantial information regarding the invitation to bid or request for proposal that was not available to the public.

History

Authority: AS 36.30.040; AS 36.30.050
Eff. 1/1/88, Register 104

2 AAC 12.030 Procuring state-produced supplies or services from industries of Alaska correctional institutions {#sec-2-aac-12.030 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.030}

Purchasing requirements of an agency may be fulfilled by procuring supplies produced or services performed by industries of Alaska correctional institutions. The commissioner of administration will determine whether such supplies or services meet the state's requirements and whether the price represents a reasonable cost for such supplies or services. If a procurement is to be made from the state correctional industries program, the private sector may not be solicited to compete.

History

Authority: AS 33.32.030; AS 36.30.040; AS 36.30.100
Eff. 1/1/88, Register 104

2 AAC 12.040 Procurement of legal counsel {#sec-2-aac-12.040 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.040}

An agency may not contract for the services of legal counsel without the prior written approval of the attorney general. Contracts for the services of legal counsel may incorporate clauses for adjustments in prices, time of performance, and total dollar amount.

History

Authority: AS 36.30.015; AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.050 Procuring supplies or services from employment programs or from youth education and employment programs {#sec-2-aac-12.050 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.050}

(a) The chief procurement officer shall use the list maintained by the division of vocational rehabilitation of employment programs that qualify under AS 36.30.990(12).

(b) A procurement officer may fulfill agency requirements by procuring supplies produced or services performed by an eligible employment program or an accredited youth education and employment program.

(c) Before procuring supplies or services from an eligible employment program or an accredited youth education and employment program, the procurement officer shall determine whether the supplies or services meet the state's requirements and whether the price represents a reasonable cost for the supplies or services. If it is determined that the requirements cannot be met by supplies produced or services performed by an eligible employment program or an accredited youth education and employment program, or the price is not reasonable, the procurement may be made from the private sector in accordance with AS 36.30 and this chapter. If a procurement is to be made from an employment program, it is not necessary that the private sector be solicited.

History

Authority: AS 36.30.040; AS 36.30.100; AS 36.30.311
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 11/28/97, Register 144; am 10/3/2002, Register 163

2 AAC 12.060 Contractors lists {#sec-2-aac-12.060 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.060}

Repealed.

History

Eff. 1/1/88, Register 104; am 3/30/90, Register 113; repealed 2/28/2014, Register 209

Article 2 Specifications

2 AAC 12.070 Authority to prepare specifications {#sec-2-aac-12.070 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.070}

The chief procurement officer may prepare and approve specifications for supplies or services. The commissioner of transportation and public facilities may prepare and approve specifications for construction and purchases for the state equipment fleet.

History

Authority: AS 36.30.040; AS 36.30.060
Eff. 1/1/88, Register 104

2 AAC 12.080 Purpose of specifications {#sec-2-aac-12.080 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.080}

(a) The purpose of a specification is to serve as a basis for obtaining, in a cost effective manner, a supply, service, or construction item suitable for the state's needs.

(b) Specifications must, to the extent practicable, emphasize functional or performance criteria necessary to meet the needs of the state. Specifications emphasizing functional or performance criteria are primarily applicable to the procurement of supplies and services and might not be practicable in construction, apart from the procurement of supply type items for a construction project.

History

Authority: AS 36.30.040; AS 36.30.060
Eff. 1/1/88, Register 104; am 11/28/97, Register 144

2 AAC 12.090 No unduly restrictive specifications {#sec-2-aac-12.090 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.090}

Except for specifications relating to procurements under 2 AAC 12.400(b), all specifications must describe the requirements to be met without having the effect of exclusively requiring a proprietary supply, service, or construction item, or procurement from a single source, unless no other manner of description will suffice.

History

Authority: AS 36.30.040; AS 36.30.060
Eff. 1/1/88, Register 104; am 11/28/97, Register 144; am 2/28/2014, Register 209

2 AAC 12.100 Brand name specification {#sec-2-aac-12.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.100}

Except for specifications relating to procurements under 2 AAC 12.400(b), a specification that limits the procurement of items to a specific manufacturer's name or catalog number may be used only if the procurement officer determines in writing that only the identified brand name item or items will satisfy the state's needs.

History

Authority: AS 36.30.040; AS 36.30.060
Eff. 1/1/88, Register 104; am 11/28/97, Register 144; am 2/28/2014, Register 209

2 AAC 12.110 Qualified products list {#sec-2-aac-12.110 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.110}

(a) A qualified products list may be developed with the approval of the chief procurement officer, or the commissioner of transportation and public facilities, if testing or examination of the supplies or construction items before issuance of the solicitation is desirable or necessary in order to best satisfy state requirements.

(b) When developing a qualified products list, a representative group of potential suppliers must be solicited, in writing, to submit products for testing and examination to determine acceptability for inclusion on a qualified products list. Any potential supplier, even though not solicited, may offer its products for consideration.

(c) Inclusion on a qualified products list must be based on results of tests or examinations conducted in accordance with state requirements. Test results may be made public in a manner that protects the confidentiality of the identity of the competitors, such as using numerical designations. Except as otherwise provided by law, trade secrets, test data, and similar information provided by the supplier will be kept confidential if requested in writing by the supplier.

(d) The existence of a qualified products list does not constitute prequalification of any prospective supplier of prequalified products.

History

Authority: AS 36.30.040; AS 36.30.060
Eff. 1/1/88, Register 104

Article 3 Competitive Sealed Bidding; Multistep Bidding

2 AAC 12.120 Invitations for competitive sealed bids {#sec-2-aac-12.120 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.120}

(a) An invitation to bid must include the following:

(1) instructions and information to bidders concerning the bid submission requirements, the time and date set for receipt of bids, the address of the office to which bids are to be delivered, the maximum time for bid acceptance by the state, and any other special information;

(2) a purchase or project description, evaluation factors, delivery or performance schedule, and the inspection and acceptance requirements that are not included in the purchase or project description;

(3) a description of all applicable contract terms and conditions, including warranty and bonding or other security requirements;

(4) a requirement for certification by the bidder that it complies with the applicable provisions of 42 U.S.C. 1981 and 42 U.S.C. 2000e - 2000e-17 (Civil Rights Act), 42 U.S.C. 12001 - 12213 (Americans with Disabilities Act of 1990), AS 18.80, and regulations adopted under those statutes;

(5) a requirement for certification by the bidder that, by submitting a bid, the bidder certifies that the price submitted was independently arrived at without collusion; and

(6) provisions, such as goals or financial incentives, established to eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, or disability.

(b) An invitation to bid may incorporate documents by reference.

(c) An invitation to bid may require the receipt of all amendments issued by the using agency to be acknowledged by bidders.

(d) An invitation to bid may require the submission of bid samples, descriptive literature, technical data, or other material. An invitation to bid may provide for any of the following before award:

(1) inspection or testing of a product for such characteristics as quality or workmanship;

(2) examination of such elements as appearance, finish, taste, or feel; or

(3) other examinations to determine whether a product conforms with other purchase requirements.

(e) An invitation to bid must require the bidder to submit evidence that the bidder's subcontractor work will be allocated to meet provisions, such as goals or financial incentives, established in the bid to eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, or disability.

History

Authority: AS 36.30.040; AS 36.30.110
Eff. 1/1/88, Register 104; am 5/16/88, Register 106; am 6/29/95, Register 134

2 AAC 12.130 Public notice {#sec-2-aac-12.130 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.130}

(a) Except for small purchases made under 2 AAC 12.400, notice of an invitation to bid shall be given by posting on the Alaska Online Public Notice System as required by AS 36.30.130(a). Notice may also be provided in accordance with AS 36.30.130 by one of the following methods:

(1) repealed 2/28/2014;

(2) publication in a newspaper of general circulation, and, if practicable, in a way calculated to reach prospective contractors located in the state;

(3) publication in a newspaper of local circulation in the area pertinent to the procurement, and, if practicable, in a way calculated to reach prospective contractors located in the state;

(4) notices posted in public locations within the area where the work is to be performed or the material or supplies furnished;

(5) communication in another appropriate media, including postings in electronic media, and, if practicable, in a way calculated to reach prospective contractors located in the state.

(b) The provisions of 2 AAC 12.400(e) apply to the requirements regarding public notice of procurements for leased office space of not more than 7,000 square feet.

(c) Nothing in this section limits use of additional methods of public notice in order to reach prospective contractors located in the state.

(d) The procurement officer shall provide notice of an invitation to bid to a prospective contractor upon request, regardless of the location of the prospective contractor.

(e) The procurement officer may require payment of duplication costs or a cash deposit for supplying the invitation to bid.

History

Authority: AS 36.30.040; AS 36.30.130
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 7/20/95, Register 135; am 11/28/97, Register 144; am 10/3/2002, Register 163; am 2/28/2014, Register 209

2 AAC 12.140 Pre-opening correction or withdrawal of bids {#sec-2-aac-12.140 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.140}

(a) A bid may be corrected or withdrawn by written request received in the office designated in the invitation for bids before the time and date set for opening.

(b) A request under (a) of this section must provide authorization for the person making the correction or withdrawal to do so.

(d) All documents relating to the correction or withdrawal of a bid shall be included in the appropriate procurement file.

History

Authority: AS 36.30.040; AS 36.30.160
Eff. 1/1/88, Register 104

2 AAC 12.150 Receipt, opening, and recording of bids {#sec-2-aac-12.150 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.150}

(a) A bid must be submitted with the invitation to bid number clearly identified. The rest of the bid must be in a form that cannot be viewed until opened by the procurement officer. Upon receipt, a bid correction shall be securely stored until the time and date set for bid opening.

(b) Bids and corrections shall be opened at the time, date, and place designated in the invitation to bid. The name of each bidder, the bid price, and other information deemed appropriate by the procurement officer shall be tabulated.

History

Authority: AS 36.30.040; AS 36.30.140
Eff. 1/1/88, Register 104; am 2/28/2014, Register 209

2 AAC 12.160 Late bids, late corrections, and late withdrawals {#sec-2-aac-12.160 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.160}

A bid received after the time and date set for receipt of bids is late. A correction or withdrawal of a bid received after the time and date set for opening of bids at the place designated for opening is late. A late bid correction, or withdrawal, may not be accepted unless the delay was due to an error of the contracting agency.

History

Authority: AS 36.30.040; AS 36.30.160
Eff. 1/1/88, Register 104

2 AAC 12.170 Inadvertent errors discovered after opening but before award {#sec-2-aac-12.170 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.170}

(a) Inadvertent errors discovered after opening but before award, other than minor informalities, may not be corrected. If a bidder submits proof that clearly and convincingly demonstrates that an inadvertent error other than a minor informality was made, the bidder may withdraw the bid.

(b) If, before award, a procurement officer knows of an error in a bid, the officer shall notify the bidder of the error.

History

Authority: AS 36.30.040; AS 36.30.160
Eff. 1/1/88, Register 104

2 AAC 12.180 Bid evaluation and award {#sec-2-aac-12.180 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.180}

(a) Award of a bid may not be based on discrimination due to the race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, disability, or political affiliation of the bidder. A bid shall be evaluated to determine whether the bidder responds to the provisions, such as goals or financial incentives, established in the invitation to bid in order to eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, or disability.

(b) An evaluation of product acceptability shall be conducted to determine whether a bidder's offering is acceptable as set out in the invitation to bid. A bid that does not meet the acceptability requirements shall be rejected as nonresponsive.

(c) Bids may be evaluated to determine which bid offers the lowest cost to the state in accordance with the evaluation criteria set out in the invitation to bid. Evaluation factors need not be precise predictors of actual future costs, but to the extent possible the evaluation factors must

(1) be reasonable estimates based upon information the state has available concerning future use; and

(2) treat all bids equitably.

(d) Nothing in this section permits contract award to a bidder submitting a higher quality item than that designated in the invitation for bids if the bidder is not also the lowest bidder as determined under (c) of this section. This section does not permit negotiations with a bidder.

History

Authority: AS 36.30.040; AS 36.30.150
Eff. 1/1/88, Register 104; am 5/16/88, Register 106; am 6/29/95, Register 134

2 AAC 12.190 Only one responsive bid received {#sec-2-aac-12.190 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.190}

If only one responsive bid is received in response to an invitation to bid, including multi-step bidding, an award may be made to the single bidder if the bidder is responsible and if the procurement officer finds that the price submitted is fair and reasonable and that either other prospective bidders had reasonable opportunity to respond or there is not adequate time for resolicitation. Otherwise the bid may be rejected and

(1) new bids or offers may be solicited;

(2) the proposed procurement may be cancelled; or

(3) if the procurement officer determines in writing that the need for the supply or service continues, but that the price of the one bid is not fair and reasonable, and there is no time for resolicitation or it is unlikely that resolicitation would increase the number of bids, the procurement may be conducted under 2 AAC 12.410 (single source procurement), 2 AAC 12.430 (limited competition procurement), or 2 AAC 12.440 (emergency procurements), as appropriate.

History

Authority: AS 36.30.040; AS 36.30.350
Eff. 1/1/88, Register 104; am 11/28/97, Register 144

2 AAC 12.200 Documentation of award {#sec-2-aac-12.200 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.200}

Following award, a record showing the basis for determining the successful bidder shall be made a part of the procurement file.

History

Authority: AS 36.30.040; AS 36.30.500
Eff. 1/1/88, Register 104

2 AAC 12.210 Notice of intent to award {#sec-2-aac-12.210 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.210}

Notice of intent to award does not constitute a formal award of a contract. The notice of intent to award must include

(1) a statement of the bidder's right under AS 36.30 to protest the award, including the time within which the protest must be received; and

(2) the name of the successful bidder.

History

Authority: AS 36.30.040; AS 36.30.365; AS 36.30.565
Eff. 1/1/88, Register 104; am 3/30/90, Register 113

Article 4 Competitive Sealed Proposals

2 AAC 12.215 Exceptions to competitive sealed bidding {#sec-2-aac-12.215 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.215}

(a) The following types of supplies and services, for which the use of competitive sealed bidding is either not practicable or not advantageous to the state, may be procured by competitive sealed proposals without a written determination by the procurement officer:

(1) professional services;

(2) supplies and services for clean up of oil and hazardous substances;

(3) telephone systems and telephone system maintenance;

(4) concession contracts;

(5) repealed 11/28/97;

(6) leased office space.

(b) The procurement officer may procure other supplies or services not listed in (a) of this section by competitive sealed proposals only if the procurement officer determines that the use of competitive sealed bidding is not practicable or not advantageous to the state. The determination under this subsection must comply with AS 36.30.200(b).

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 3/30/90, Register 113; am 6/29/95, Register 134; am 11/28/97, Register 144

2 AAC 12.220 Public notice of competitive sealed proposals {#sec-2-aac-12.220 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.220}

Public notice shall be given by distributing the request for proposals or notice of requests for proposals in the manner provided in 2 AAC 12.130.

History

Authority: AS 36.30.040; AS 36.30.210
Eff. 1/1/88, Register 104

2 AAC 12.230 Correction, modification, or withdrawal of proposals {#sec-2-aac-12.230 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.230}

A proposal may be corrected, modified, or withdrawn before the time and date set for receipt of proposals, in the manner described in 2 AAC 12.140.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104; am 3/27/93, Register 125; am 2/28/2014, Register 209

2 AAC 12.240 Receipt and registration of proposals {#sec-2-aac-12.240 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.240}

Proposals, modifications, and corrections shall have the date and time of receipt recorded upon receipt, and shall be held securely. After the date set for receipt of proposals, a register of proposals must be prepared. The register must include the name of each offeror and a description of the supply, service, or construction item offered.

History

Authority: AS 36.30.040; AS 36.30.230
Eff. 1/1/88, Register 104; am 2/28/2014, Register 209

2 AAC 12.250 Late proposals, late corrections, late modifications, and late withdrawals {#sec-2-aac-12.250 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.250}

Unless otherwise provided in the request for proposals, a proposal, correction, modification, or withdrawal received after the date and time set for receipt of proposals is late, and may not be accepted unless the delay is due to an error of the contracting agency.

History

Authority: AS 36.30.040; AS 36.30.210
Eff. 1/1/88, Register 104; am 3/27/93, Register 125

2 AAC 12.260 Evaluation of proposals {#sec-2-aac-12.260 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.260}

(a) The procurement officer, or a procurement evaluation committee consisting of at least three state employees or public officials, shall evaluate proposals. The procurement officer may be one of the members on a procurement evaluation committee.

(b) The evaluation must be based only on the evaluation factors set out in the request for proposals. The relative importance or weighting value of each evaluation factor shall be set out in the request for proposals. Numerical rating systems may be used, but are not required. If a numerical rating system is not used, the procurement officer, or each member of the evaluation committee, as applicable, shall explain his or her ranking determination in writing.

(c) Price must be an evaluation factor unless the services or supplies sought are selected in accordance with AS 36.30.270(a) and (b). The proposal with the lowest price must receive the highest available rating allocated to price. A proposal that has a higher price than the next lowest must receive a lower rating for price.

(d) For the purposes of evaluating price, the proposed price of an offeror who qualifies as an Alaska bidder under AS 36.30.990(2) shall be reduced by five percent. All other applicable preferences must be applied. This subsection does not apply to solicitations or contracts for lease space under AS 36.30.080.

(e) If a numerical rating system is used, an Alaska offeror's preference of at least 10 percent of the total possible value of the rating system must be assigned to a proposal of an offeror who qualifies as an Alaska bidder under AS 36.30.990(2). This subsection does not apply to solicitations or contracts for lease space under AS 36.30.080.

(f) The following are some additional evaluation factors that may be considered:

(1) the offeror's experience in Alaska performing work similar to that sought in the request for proposals;

(2) the percentage of work that will be performed in Alaska;

(3) the location of the office of the offeror where the work will be performed;

(4) the offeror's past performance, including conformance to specifications and standards of good workmanship, forecasting and containment of costs or prices, history of reasonable and cooperative behavior and overall concern for the interests of the customer, and adherence to contract schedules.

(g) A proposal from an offeror debarred or suspended under AS 36.30.635 - 36.30.655 must be rejected.

(h) Meetings may be held by a procurement evaluation committee to discuss the request for proposals, the evaluation process, the weighting of evaluation factors, and proposals received.

(i) If the evaluation is performed by a procurement evaluation committee, each member shall exercise independent judgment and the vote of one member may not be weighted more than the vote of any other member.

(j) An evaluation may not be based on discrimination due to the race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, disability, or political affiliation of the offeror. A proposal shall be evaluated to determine whether the offeror responds to the provisions, including goals and financial incentives, established in the request for proposals in order to eliminate and prevent discrimination in state contracting because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, disability, or political affiliation of the offeror.

History

Authority: AS 36.30.040; AS 36.30.230; AS 36.30.321 AS 36.30.210; AS 36.30.250
Eff. 1/1/88, Register 104; am 5/16/88, Register 106; am 7/2/88, Register 106; am 3/30/90, Register 113; am 3/27/93, Register 125; am 6/29/95, Register 134; am 11/28/97, Register 144; am 2/28/2014, Register 209

2 AAC 12.265 Evaluation factors for heavy trucks and equipment {#sec-2-aac-12.265 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.265}

If a state agency uses competitive sealed proposals to procure heavy trucks and heavy equipment, the state agency may use other evaluation factors in addition to the evaluations factors set out in 2 AAC 12.260(c) - (f), including

(1) the price;

(2) the quality of the article offered;

(3) the performance capabilities of the offerors and the manufacturers;

(4) the suitability of the article offered;

(5) the service requirements, including warranty, parts availability, and parts locations;

(6) durability as measured by projected operating and maintenance costs;

(7) the resale value;

(8) the transportation charges;

(9) the date of delivery and performance; and

(10) other factors determined to be pertinent or peculiar to the procurement.

History

Authority: AS 36.30.040; AS 36.30.250
Eff. 3/27/93, Register 125; am 11/28/97, Register 144

2 AAC 12.270 Only one responsive proposal {#sec-2-aac-12.270 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.270}

If after evaluation under 2 AAC 12.260 and discussion under 2 AAC 12.290 only one responsive and responsible proposal is available for award, the procurement officer may make an award in accordance with AS 36.30.250, may reject the proposal, or may reject the proposal and resolicit proposals.

History

Authority: AS 36.30.040; AS 36.30.350
Eff. 1/1/88, Register 104; am 6/29/95, Register 134

2 AAC 12.280 Duty of offerors {#sec-2-aac-12.280 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.280}

Repealed.

History

Eff. 1/1/88, Register 104; repealed 6/29/95, Register 134

2 AAC 12.285 Clarification of offers {#sec-2-aac-12.285 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.285}

In order to determine if a proposal is reasonably susceptible for award, communications by the procurement officer or the procurement evaluation committee are permitted with an offeror for clarification of uncertainties or elimination of confusion concerning the contents of a proposal that does not result in a material or substantive change to the proposal. The evaluation by the procurement officer or the procurement evaluation committee may be adjusted as a result of a clarification under this section.

History

Authority: AS 36.30.040; AS 36.30.240
Eff. 11/28/97, Register 144; am 2/28/2014, Register 209

2 AAC 12.290 Proposal discussions with individual offerors {#sec-2-aac-12.290 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.290}

(a) Offerors of proposals reasonably susceptible for award as determined in the evaluation conducted under 2 AAC 12.260 may be offered the opportunity to discuss their proposals with the procurement officer or evaluation committee at the discretion of the procurement officer. The procurement officer may limit discussions to specific sections of the proposals received or specific sections of the request for proposals. The opportunity for confidential discussions, if held, must be extended to all offerors submitting proposals deemed reasonably susceptible for award. Auction techniques that reveal one offeror's price to another, and disclosure of any information derived from competing proposals, are prohibited.

(b) Any oral modification of a proposal resulting from proposal discussions under (a) of this section shall be reduced to writing by the offeror.

(c) Following discussions, the procurement officer may set a date and time for the submission of best and final proposals. Best and final proposals may be submitted only once. However, the chief procurement officer or the head of a purchasing agency may make a written determination that it is in the state's best interest to conduct additional discussions or change the state's requirements and require another submission of best and final proposals. Otherwise, discussion of or changes in the best and final proposals may not be allowed before award. If an offeror does not submit a best and final proposal or a notice of withdrawal, the offeror's previous proposal is considered the offeror's best and final proposal.

(d) The evaluation of a proposal may be adjusted as a result of a discussion under this section. The conditions, terms, or price of the proposal may be altered or otherwise changed during the course of the discussions provided the changes are within the scope of the request for proposals. After best and final proposals are received, final evaluations will be conducted as described in 2 AAC 12.260.

History

Authority: AS 36.30.040; AS 36.30.240
Eff. 1/1/88, Register 104; am 11/28/97, Register 144

2 AAC 12.295 Amendments to requests for proposals {#sec-2-aac-12.295 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.295}

If, after receipt of proposals, there is a need for any substantial clarification of or material change in the request for proposals, the request must be amended to incorporate the clarification or change, and a date and time established by the procurement officer for receipt of new or amended proposals. Evaluations may be adjusted as a result of receiving new or amended proposals.

History

Authority: AS 36.30.040; AS 36.30.210
Eff. 11/28/97, Register 144

2 AAC 12.300 Documentation of contractor selection {#sec-2-aac-12.300 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.300}

When a contractor has been selected by competitive sealed proposal, the procurement officer shall enter into the procurement file a written record of the basis on which the selection was found to be most advantageous to the state.

History

Authority: AS 36.30.040; AS 36.30.250
Eff. 1/1/88, Register 104

2 AAC 12.310 Notice of intent to award {#sec-2-aac-12.310 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.310}

Notice of intent to award shall be issued in accordance with 2 AAC 12.210.

History

Authority: AS 36.30.040; AS 36.30.365
Eff. 1/1/88, Register 104

2 AAC 12.315 Contract negotiations {#sec-2-aac-12.315 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.315}

After final evaluation of proposals, including an adjustment of an evaluation of a proposal as authorized under 2 AAC 12.290(d) and 2 AAC 12.295, the procurement officer may negotiate with the offeror of the highest ranked proposal for the purpose of obtaining contract terms consistent with the solicitation and with terms favorable to the state. If changes are made to the proposal during contract negotiations, the changes must be reasonable; however, the changes may not have the effect of changing the ranking of the highest ranked proposal. If the procurement officer determines that the offeror of the highest ranked proposal fails to negotiate in good faith or fails to negotiate within the time period set by the procurement officer, the procurement officer may terminate negotiations and begin contract negotiations with the offeror of the next highest ranked proposal in the manner prescribed in this section.

History

Authority: AS 36.30.040
Eff. 11/28/97, Register 144; am 2/28/2014, Register 209

Article 5 Competitive Sealed Proposals for Architect, Engineer, or Land Surveying Services

2 AAC 12.320 Procurement of architect, engineer, or land surveying services {#sec-2-aac-12.320 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.320}

(a) Except as provided otherwise in this section, architect, engineer, or land surveyor services must be procured under 2 AAC 12.220 - 2 AAC 12.310, 2 AAC 12.320 - 2 AAC 12.390, and 2 AAC 12.400. In the case of inconsistency, the provisions of 2 AAC 12.320 - 2 AAC 12.390 control.

(b) Procurement of minor or incidental architect, engineer, or land surveying work associated with and performed during construction, is not subject to 2 AAC 12.320 - 2 AAC 12.390.

History

Authority: AS 36.30.040; AS 36.30.270
Eff. 1/1/88, Register 104

2 AAC 12.330 Determinations required before procurement of services {#sec-2-aac-12.330 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.330}

Before announcing the need for architect, engineer, or land surveying services, the head of the purchasing agency must determine

(1) that the services to be acquired are services subject to AS 36.30.270;

(2) that a reasonable inquiry has been conducted and it has been determined that state personnel are unable or unavailable to perform the services required under the proposed contract;

(3) that the purchasing agency has developed, and fully intends to implement, a written plan for using the services.

History

Authority: AS 36.30.040; AS 36.30.270
Eff. 1/1/88, Register 104

2 AAC 12.340 Public announcement of required architect, engineer, or land surveying services {#sec-2-aac-12.340 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.340}

(a) Notice of the need for architect, engineer, or land surveying services shall be given as described in 2 AAC 12.130.

(b) A solicitation must be prepared which describes the state's requirements, sets out the evaluation criteria, and includes notice of any conference to be held.

History

Authority: AS 36.30.040; AS 36.30.270
Eff. 1/1/88, Register 104

2 AAC 12.350 Architect, engineer, or land surveyor selection committee {#sec-2-aac-12.350 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.350}

(a) If a contract for architect, engineer, or land surveying services is expected to exceed the dollar threshold for construction set out in 2 AAC 12.400(d), the chief procurement officer, commissioner of transportation and public facilities, or commissioner of natural resources, as appropriate, shall designate a minimum of three state employees or public officials to serve as members of an architect, engineer, and land surveying selection committee for that contract. The committee must consist of

(1) a majority of registered persons if registration is required under AS 36.30.270(d), or, if registration is not required under AS 36.30.270(d), a majority of state employees who are well qualified in architecture, engineering, or land surveying, as appropriate; and

(2) a procurement officer representing the purchasing agency requiring the services, and preferably qualified in architecture, engineering or land surveying, and other members as appropriate.

(b) The chief procurement officer, commissioner of transportation and public facilities, or commissioner of natural resources, as appropriate, shall designate one member to chair the committee and to negotiate a contract with the most qualified and suitable firm or person in accordance with AS 36.30.270.

History

Authority: AS 36.30.040; AS 36.30.270
Eff. 1/1/88, Register 104; am 3/27/93, Register 125; am 4/25/97, Register 142; am 2/28/2014, Register 209

2 AAC 12.360 Evaluation of statements of qualifications and performance data; selection of firms or persons for discussions {#sec-2-aac-12.360 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.360}

(a) The selection committee shall evaluate

(1) statements submitted in response to the solicitation for architect, engineer, or land surveying services, including proposals for joint ventures; and

(2) supplemental statements of qualifications and performance data, if submission of such statements was required.

(b) All statements and supplemental statements of qualifications and performance data shall be evaluated in light of the criteria set out in the solicitation.

(1) experience in providing the required services;

(2) the qualifications and competence of persons who would be assigned to perform the services, as reflected by technical training and education;

(3) ability to perform the services, as reflected by workload and the availability of adequate personnel, equipment, and facilities to perform the services expeditiously; and

(4) past performance, as reflected by the evaluations of private persons and officials of other government entities that have retained the services of the firm or person, with respect to such factors as control of costs, quality of work, and ability to meet deadlines.

(d) The selection committee may select firms or persons evaluated as being professionally and technically qualified for discussions and reasonably susceptible for award of a contract. The procurement officer shall notify each firm or person in writing of the date, time, and place of discussions, and, if necessary, shall provide each firm or person with additional information on the project and the services required. The notice may provide that a representative of a firm or person must attend discussions in order for the firm or person to be considered further.

History

Authority: AS 36.30.040; AS 36.30.270
Eff. 1/1/88, Register 104

2 AAC 12.370 Discussions {#sec-2-aac-12.370 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.370}

The selection committee may hold discussions regarding the proposed contract with the firms or persons selected. The purpose of such discussions is to explore the scope and nature of the required services and the relative utility of alternative methods of approach. The conditions, terms, or price of the proposed contract may be altered or otherwise changed during the course of the discussions.

History

Authority: AS 36.30.040; AS 36.30.270
Eff. 1/1/88, Register 104

2 AAC 12.380 Selection of the most qualified and suitable firms or persons {#sec-2-aac-12.380 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.380}

After discussions, if held under 2 AAC 12.370, the selection committee shall reevaluate and select, in order of preference, no fewer than three firms or persons that the committee considers to be the most highly qualified and suitable to provide the required services. The selection committee shall prepare a memorandum of the selection process which indicates how the evaluation criteria were applied to determine the ranking of the three most highly qualified and suitable firms or persons. The memorandum shall be included in the procurement file.

History

Authority: AS 36.30.040; AS 36.30.270
Eff. 1/1/88, Register 104; am 3/27/93, Register 125

2 AAC 12.390 Negotiation and award of contract {#sec-2-aac-12.390 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.390}

(a) The procurement officer shall negotiate with the most qualified and suitable offerors in the order in which they are ranked. Contract negotiations shall be directed toward

(1) making certain that the offeror has a clear understanding of the scope of the work and the requirements involved in providing the required services;

(2) determining that the offeror will make available the necessary personnel and facilities to perform the services within the required time; and

(3) agreeing upon compensation that is fair and reasonable, taking into account the estimated value, scope, complexity, and nature of the required services.

(b) The offeror selected for award shall submit and certify cost and pricing data.

(c) Upon failure to negotiate a contract with the most qualified and suitable offeror, the procurement officer shall enter into negotiations with the next most qualified and suitable offeror.

(d) If the procurement officer is unable to negotiate a contract with any of the offerors initially selected as the most highly qualified and suitable offerors, additional offerors may be selected in preferential order based on their respective qualifications.

(e) Written notice of the intent to award must comply with 2 AAC 12.310 and must be sent to each offeror. Notice of intent to award must be made available to the public.

(f) After award of the contract, a memorandum setting out the principal elements of the negotiation shall be prepared by the procurement officer. The memorandum shall be included in the procurement file and be available to the public upon request.

History

Authority: AS 36.30.040; AS 36.30.270; AS 36.30.400
Eff. 1/1/88, Register 104; am 3/27/93, Register 125

Article 6 Small Purchases

2 AAC 12.400 Authority to make small purchases {#sec-2-aac-12.400 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.400}

(a) Repealed 2/28/2014.

(b) A purchasing agency shall use reasonable and adequate procedures and make records that facilitate auditing of the purchasing agency when procuring

(1) supplies, services, professional services, or construction estimated to cost not more than $25,000;

(2) concession contracts estimated to have gross receipts of not more than $25,000;

(3) supplies or services while on travel status with or on behalf of the governor estimated to cost not more than $30,000;

(4) fish feed for hatchery use estimated to cost not more than $30,000;

(5) passenger transportation estimated to cost not more than $30,000;

(6) professional services for the office of the governor estimated to cost not more than $50,000;

(7) legal or hearing officer services estimated to cost not more than $50,000.

(c) Except for procurements under (b) of this section, a purchasing agency shall use the following procedures in the procurement of supplies, services, professional services, or construction estimated to cost more than $25,000 but not more than $50,000, or for concession contracts estimated to have gross receipts of more than $25,000, but not more than $50,000:

(1) for the solicitation,

(A) at least three firms or persons shall be contacted for a quotation or informal proposal and the procurement officer shall designate whether the response may be made in writing or verbally; and

(B) the solicitation may be made verbally or in writing and shall include the specifications, the award criteria, and the date and time responses are due;

(2) for the award, the purchasing agency shall make the award

(A) in accordance with the specifications and award criteria in the solicitation; and

(B) to the responsive and responsible firm or person that submitted the lowest quotation or the informal proposal that is the most advantageous to the purchasing agency;

(3) as part of the file on the procurement, the procurement officer shall include the

(A) name of the person who made the solicitation and the date of the solicitation;

(B) information provided by the purchasing agency under (1)(B) of this subsection;

(C) names of the firms or persons contacted, a summary of any verbal responses, and copies of all quotations or informal proposals received; and

(D) justification for the award.

(d) A purchasing agency shall use the following procedures for the procurement of supplies, services, or professional services estimated to cost more than $50,000, but not more than $100,000; for concession contracts estimated to have gross receipts of more than $50,000, but not more than $100,000; or for construction estimated to cost more than $50,000, but not more than $200,000:

(1) for the solicitation,

(A) at least three firms or persons shall be contacted for a quotation or informal proposal and the procurement officer shall require the response to be made in writing; and

(B) the solicitation shall be made in writing and shall include the specifications, the award criteria, and the date and time responses are due;

(2) for the award, the purchasing agency shall

(A) make the award

(i) in accordance with the specifications and award criteria in the solicitation; and

(ii) to the responsive and responsible firm or person that submitted the lowest quotation or the informal proposal that is the most advantageous to the purchasing agency; and

(B) provide written notice of the award, including the name of the successful offeror, to each firm or person providing a quotation or informal proposal, and shall describe protest rights under 2 AAC 12.695 and the time limitations within which a protest must be received by the purchasing agency;

(3) as part of the file on the procurement, the procurement officer shall include

(A) a copy of the solicitation made under (1)(B) of this subsection;

(B) the names of the firms or persons contacted and copies of all written quotations or informal proposals received; and

(e) For procurement of lease of space that does not exceed 7,000 square feet, the procedures described in (b) - (d) of this section shall be followed for the appropriate estimated cost limitations, except as provided in this subsection. A notice of award under this subsection shall be in writing. Notwithstanding 2 AAC 12.130 or any other provision of this section, for a procurement of lease of space that does not exceed 7,000 square feet and estimated to cost more than $100,000 for the term of the lease, including extensions, the procurement officer shall provide public notice by at least one of the following notification methods for the solicitation:

(1) repealed 2/28/2014;

(2) publication in a newspaper of general circulation, and, if practicable, in a way calculated to reach prospective contractors located in the state;

(3) publication in a newspaper of local circulation in the area pertinent to the procurement, and, if practicable, in a way calculated to reach prospective contractors located in the state;

(4) notices posted in public locations within the area where the work is to be performed or the material or supplies furnished;

(5) publication in other appropriate media, including postings in electronic media, and, if practicable, in a way calculated to reach prospective contractors located in the state.

(f) A procurement made under this section shall be solicited from Alaskan vendors, whenever practicable, and is subject to applicable Alaskan bidder and Alaskan products preferences as set out in AS 36.30 and 2 AAC 12.260(e).

(g) Nothing in this section prevents postings in electronic media to satisfy the competitive solicitation and notice of award requirements. Quotes and informal proposals may be submitted in electronic media if permitted by the procurement officer.

History

Authority: AS 36.30.040; AS 36.30.320
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 3/27/93, Register 125; am 6/29/95, Register 134; am 4/25/97, Register 142; am 11/28/97, Register 144; am 2/28/2014, Register 209; am 5/24/2024, Register 250

Article 7 Single Source Procurement

2 AAC 12.410 Conditions for use of single source procurement {#sec-2-aac-12.410 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.410}

(a) A request by a purchasing agency that a procurement be restricted to one potential contractor shall be accompanied by a written explanation that meets the requirements of 2 AAC 12.415 as to why it is not practicable to award a contract by competitive sealed bidding, competitive sealed proposals, or small procurement procedures, and why award to a single source is the state's best interests. An agency may advertise its intent to make a single source award to determine if such an award is appropriate. The agency shall include with the written explanation the evidence necessary for the independent examination and determination of the material facts of the procurement, subject to AS 36.30.315. Except for a procurement that does not exceed the amount for small procurements under AS 36.30.320, the award of a single source procurement may not be made without the prior written approval of the chief procurement officer or the commissioner of transportation and public facilities, as appropriate under AS 36.30.300(a).

(b) A determination under AS 36.30.300(a) must specify the duration of the determination's effectiveness.

(c) A procurement officer shall conduct negotiations, as appropriate, as to the price, delivery, and terms of a single source procurement.

(d) The following are examples of circumstances in which sole source procurement might be appropriate:

(1) if the compatibility of equipment, accessories, or replacement parts is the main consideration;

(2) if a specific item is needed for trial use or testing, including testing of a prototype;

(3) if an item is to be procured for resale;

(4) repealed 6/29/95;

(5) if there exists a sole source of expertise required to perform a specific professional service;

(6) if the procurement is for operation of a concession contract on state property by a nonprofit organization whose sole purpose is to operate the concession and provide other public services on the property;

(7) if the procurement is with a government police agency to provide investigative, enforcement, or support services in support of state law enforcement objectives;

(8) if the procurement is for the services of legal counsel for the purpose of advising or representing the state in specific civil or criminal proceedings or on a specific matter before a federal or state regulatory agency, board, or commission;

(9) if the procurement is by the Office of the Governor for lobbying, labor negotiation, or consulting by a foreign national.

History

Authority: AS 36.30.040; AS 36.30.300; AS 36.30.315
Eff. 1/1/88, Register 104; am 6/29/95, Register 134; am 11/28/97, Register 144

2 AAC 12.415 Single source determination {#sec-2-aac-12.415 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.415}

A determination by a state procurement official that a specific course of action is or is not "in the state's best interest" under AS 36.30.300 means a determination that is reasonable under the circumstances and is neither arbitrary, capricious, or prompted by corruption. A request to employ the single source procurement method under AS 36.30.300 that is based on a determination that it is "in the state's best interest" shall cite the specific and significant interests to support use of the single source procurement method.

History

Authority: AS 36.30.040; AS 36.30.300
Eff. 11/28/97, Register 144

2 AAC 12.420 Record of single source procurement {#sec-2-aac-12.420 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.420}

A record of every single source procurement shall be made and forwarded to the chief procurement officer, and must include

(1) the supplier's or contractor's name;

(2) the amount and type of each contract;

(3) a listing of the supplies, services, or construction procured under each contract; and

(4) the identification number of each procurement file.

History

Authority: AS 36.30.040; AS 36.30.300; AS 36.30.520
Eff. 1/1/88, Register 104; am 11/28/97, Register 144

Article 8 Limited Competition Procurements

2 AAC 12.430 Conditions for use of limited competition procurement {#sec-2-aac-12.430 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.430}

(a) A request by a purchasing agency to limit that a procurement to two or more potential contractors must be accompanied by a written explanation as to why the solicitation should be limited, and why the competitive sealed bidding, competitive sealed proposals, or small procurement procedures are impracticable or contrary to the public interest. The agency must include with the written explanation the evidence necessary for the independent examination and determination of the material facts of the procurement, subject to AS 36.30.315. To determine if other sources are available or interested in a procurement, an agency may advertise an intent to make a limited competition procurement. Except for a procurement that does not exceed the amount for small procurements under AS 36.30.320, the award of a limited competition procurement may not be made without the prior written approval of the chief procurement officer, the commissioner of transportation and public facilities, or the attorney general, as appropriate under AS 36.30.305(a).

(b) A procurement for construction under this section must be for less than $100,000.

(c) A procurement officer shall solicit offers or conduct negotiations, as appropriate, as to price, delivery, and terms, equally with each potential contractor for a limited competition procurement.

History

Authority: AS 36.30.040; AS 36.30.305
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 6/29/95, Register 134; am 11/28/97, Register 144

Article 9 Emergency Procurements

2 AAC 12.440 Determination of emergency conditions {#sec-2-aac-12.440 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.440}

(a) For the purposes of AS 36.30.310, emergency conditions include

(1) fire, flood, epidemic, riot, environmental accident, or a similarly compelling reason;

(2) equipment failure, if the need for timely repair is essential;

(3) a situation in which procurement through competitive sealed bidding or competitive sealed proposals is impracticable or contrary to the public interest; or

(4) a need to protect public or private property.

(b) Unless a determination of emergency is made as provided in (c) of this section before a procurement may be made under this section, a written determination of emergency is required from the chief procurement officer, or from the commissioner of transportation and public facilities for a construction contract or a procurement for the state equipment fleet. An agency requesting a determination of emergency shall provide a written explanation as to why emergency conditions exist. The agency shall include with its explanation the evidence necessary for the independent examination and determination of the material facts of the procurement, subject to AS 36.30.315.

(1) may be made by a responsible agency official if

(A) immediate action is necessary to protect public health, welfare, or safety, or to protect public or private property; and

(B) insufficient time exists for

(i) the agency to provide the explanation and evidence required under (b) of this section; and

(ii) the chief procurement officer or the commissioner of transportation and public facilities to make the written determination of emergency required under AS 36.30.310 and (b) of this section; and

(2) is subject to AS 36.30.315.

History

Authority: AS 36.30.005; AS 36.30.040; AS 36.30.310
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 6/29/95, Register 134; am 11/28/97, Register 144

2 AAC 12.450 Procurement methods for emergency conditions {#sec-2-aac-12.450 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.450}

(a) When emergency procurement is authorized by AS 36.30.310 and 2 AAC 12.440, and emergency procurement is limited to the supplies, services, professional services, or construction necessary to meet the emergency, and shall be made with competition that is practicable under the circumstances.

(b) An agency may make an emergency procurement by any reasonable means. If practical, approval by the head of the agency must be obtained before an emergency procurement of $50,000 or more is made.

(c) A procurement by the Department of Natural Resources during a fire suppression emergency shall be made in accordance with the procedures established by that department.

History

Authority: AS 36.30.040; AS 36.30.310
Eff. 1/1/88, Register 104; am 11/28/97, Register 144; am 2/28/2014, Register 209

2 AAC 12.460 Record of emergency procurement {#sec-2-aac-12.460 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.460}

The procurement officer or the agency official responsible for procurement shall make and promptly forward to the chief procurement officer a record of each emergency procurement. The record must set out

(1) the contractor's name;

(2) the amount and type of the contract;

(3) a listing of the supplies, services, or construction procured under the contract; and

(4) the identification number of the procurement file.

History

Authority: AS 36.30.040; AS 36.30.310
Eff. 1/1/88, Register 104

Article 10 Contract Formation and Modification

2 AAC 12.470 Standard contract clauses {#sec-2-aac-12.470 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.470}

The chief procurement officer and the commissioner of transportation and public facilities, in consultation with the attorney general, may establish standard contract clauses for state contracts. A procurement officer may modify a standard clause only with the prior written approval of the attorney general as to form.

History

Authority: AS 36.30.040; AS 36.30.340
Eff. 1/1/88, Register 104

2 AAC 12.475 Changes, liquidated damages, and terminations {#sec-2-aac-12.475 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.475}

(a) A state contract may include a clause that provides for adjustment of the contract price, adjustment of the time of performance, liquidated damages, termination of the contract, or a term that the procurement officer deems appropriate.

(b) A contract clause allowing the imposition of liquidated damages must specify their purpose, their amount, and the circumstances for which they are authorized.

(c) A contract clause allowing termination of a contract for cause must specify the circumstances under which the state may terminate the contract, the procedural steps required for a termination to be effective, and the rights and responsibilities of the parties regarding payment and work in progress.

(d) A contract clause allowing termination of a contract for convenience of the state must specify the procedural steps required for a termination to be effective and the rights and responsibilities of the parties regarding payment and work in progress.

History

Authority: AS 36.30.040; AS 36.30.430
Eff. 7/20/95, Register 135

2 AAC 12.480 Novation or change of name {#sec-2-aac-12.480 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.480}

(a) A state contract or subcontract may not be transferred or otherwise assigned without the prior written consent of the procurement officer responsible for the contract.

(b) If the procurement officer responsible for the contract determines it is in the best interests of the state, a successor in interest may be recognized in a novation agreement in which the transferor and the transferee agree that

(1) the transferee assumes all of the transferor's obligations under the contract;

(2) the transferor waives any and all rights it has under the contract against the state; and

(3) the transferee furnishes satisfactory performance and payment bonds, if required by the procurement officer.

(c) If a contractor requests to change the name in which it holds a contract with the state, the procurement officer responsible for the contract may, when it is in the best interests of the state, enter into an agreement with the requesting contractor to effect the change of name. The agreement changing the name must specifically indicate that no other terms and conditions of the contract are changed.

(d) An assignment of payments of a state contract may not be made without the prior written consent of the contracting agency responsible for the contract.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 11/28/97, Register 144

2 AAC 12.485 Contract amendments {#sec-2-aac-12.485 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.485}

(a) Except for contract amendments in a contract with a clause that authorizes adjustment under 2 AAC 12.475(a), all amendments to contracts shall be made in accordance with this section.

(b) The procurement officer may amend a contract for construction, as "construction" is defined under AS 36.30.990, but only if the amendment is within the scope of the original contract.

(c) The procurement officer may amend a contract established under 2 AAC 12.400 within the scope of the original contract, but the amendment may not increase the contract beyond the small procurement limits established under AS 36.30.320.

(d) Except for amendments established under (b) or (c) of this section, unanticipated contract amendments that exceed the lesser of 20 percent of the amount of the original term of the contract, or a subsequent current term of the contract, as applicable, or $100,000, may be made only if the chief procurement officer or, for state equipment fleet contracts, the commissioner of transportation and public facilities, or, for contracts for the services of legal counsel, the attorney general, determines in writing that the amendment is in the state's best interest. A request by a purchasing agency to amend a contract that exceeds these limits must be accompanied by a written explanation listing specific reasons why the amendment is in the state's best interests, and must address

(1) whether the change is legitimate and due to unforeseen circumstances which occurred as work progressed, and whether the reasons for the change were unforeseen at the time the contract was established, as opposed to an effort to evade procurement requirements;

(2) whether the additional work is within the scope of the original contract;

(3) whether the contract contains clauses authorizing modification; and

(4) whether the amendment represents any important general change which alters the essential identity or main purpose of the original contract, or is of such importance as to constitute a new undertaking.

(e) An amendment to a contract which the procurement officer determines does not address each provision set out in (d)(1) - (4) of this section but which is determined by the procurement officer to be in the state's best interest may qualify as a single source procurement under 2 AAC 12.410.

History

Authority: AS 36.30.040
Eff. 11/28/97, Register 144; am 2/28/2014, Register 209

2 AAC 12.490 Responsibility of prospective contractors {#sec-2-aac-12.490 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.490}

Repealed 3/27/93.

2 AAC 12.500 Standards of responsibility {#sec-2-aac-12.500 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.500}

(a) Factors that may be considered in determining whether a prospective contractor is responsible include whether the prospective contractor

(1) has a satisfactory record of performance;

(2) is qualified legally to contract with the state; and

(3) has supplied all necessary information in connection with the inquiry concerning responsibility.

(b) The procurement officer may require the prospective contractor to demonstrate the availability of necessary financing, equipment, facilities, expertise, and personnel, by submitting

(1) evidence that the contractor possesses the necessary items;

(2) acceptable plans to subcontract for the necessary items;

(3) a documented commitment from, or explicit arrangement with, a satisfactory source to provide the necessary items; or

(4) other information required by the procurement officer.

(c) The state's determination of responsibility does not relieve the contractor from the requirements for performance under the contract.

(d) If a prospective contractor supplies information in response to a request for information made by a procurement officer under (b) of this section, information supplied in response to the request is confidential and may not be disclosed unless the prospective contractor gives prior written consent to its disclosure.

History

Authority: AS 36.30.040; AS 36.30.360
Eff. 1/1/88, Register 104; am 5/26/2004, Register 170

2 AAC 12.510 Access to plant or place of business {#sec-2-aac-12.510 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.510}

(a) If an inspection is made in the plant or place of business of a contractor or subcontractor, the contractor or subcontractor shall provide without charge all reasonable facilities and assistance for the safety and convenience of the person performing the inspection or testing.

(b) On-site inspection of construction shall be performed in accordance with the terms of the contract.

History

Authority: AS 36.30.040; AS 36.30.410
Eff. 1/1/88, Register 104

2 AAC 12.520 Inspection and testing of supplies and services {#sec-2-aac-12.520 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.520}

(a) The state will, in its discretion, inspect supplies and services at the contractor or subcontractor's facility, and perform tests to determine whether they conform to solicitation requirements, or, after award, to contract requirements, and are therefore acceptable. Inspections and tests will be conducted at any reasonable time.

(b) The chief procurement officer may establish operational procedures governing the testing and trial use of equipment, materials, and other supplies by a state agency, and the application of resulting information and data to specifications or procurements.

History

Authority: AS 36.30.040; AS 36.30.410
Eff. 1/1/88, Register 104

2 AAC 12.530 Retention of books and records {#sec-2-aac-12.530 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.530}

Books and records that relate to a state contract or subcontract shall be retained in such a manner that all actual costs related to the contract or subcontract can be easily determined.

History

Authority: AS 36.30.040; AS 36.30.420
Eff. 1/1/88, Register 104

2 AAC 12.540 Price analysis {#sec-2-aac-12.540 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.540}

The chief procurement officer and the commissioner of transportation and public facilities may establish procedures for price analysis in the bid evaluation process.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.550 Cost and pricing data {#sec-2-aac-12.550 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.550}

A procurement officer may not waive the requirements of AS 36.30.400(a) concerning submission of cost and pricing data.

History

Authority: AS 36.30.040; AS 36.30.400
Eff. 1/1/88, Register 104

2 AAC 12.560 Guidelines for cost principles {#sec-2-aac-12.560 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.560}

(a) The commissioner of administration, the commissioner of transportation and public facilities, or the chief procurement officer may establish guidelines for cost principles that may be used to determine allowability of incurred costs for the purpose of reimbursement under contract provisions that provide for the reimbursement of costs.

(b) Cost principles may be modified by contract upon approval of the head of the using agency.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.570 Use of federal cost principles {#sec-2-aac-12.570 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.570}

In dealing with contractors operating according to federal cost principles, such as Defense Acquisition Regulations, Section 15, or Federal Procurement Regulations, Part 1-15, the procurement officer may use the federal cost principles as guidance in contract negotiations.

History

Authority: AS 36.30.040; AS 36.30.480
Eff. 1/1/88, Register 104

Article 11 Innovative Procurement

2 AAC 12.575 Conditions for use of innovative procurement {#sec-2-aac-12.575 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.575}

(a) A request to use an innovative procurement procedure shall be submitted in writing by a purchasing agency to the chief procurement officer or, for construction contracts or procurements of the state equipment fleet, to the commissioner of transportation and public facilities. The agency must include in the written request an explanation of the proposed innovative procurement procedure, how this procedure will achieve the best value, or why it is advantageous to the state due to new state needs, unique state needs, or new technologies.

(b) Following approval under (a) of this section, the requesting agency shall submit a detailed procurement plan to the Department of Law for review and approval as to form before issuing public notice as required under AS 36.30.130. The plan shall, at a minimum, address the method of solicitation, scope, method of award, protest procedures, and proposed contract provisions. If the plan is submitted for a construction contract, the plan may address the use of a bonus in lieu of preferences.

History

Authority: AS 36.30.040; AS 36.30.308
Eff. 11/28/97, Register 144

2 AAC 12.577 Record of innovative procurement {#sec-2-aac-12.577 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.577}

(a) An agency that, under 2 AAC 12.575, requests use of innovative procurement shall maintain its innovative procurement files open for inspection as required under AS 36.30.140(b) and AS 36.30.230. The innovative procurement files must contain:

(1) a copy of the contract;

(2) the written determination of the chief procurement officer or the commissioner of transportation and public facilities to use the innovative procurement procedure;

(3) the procurement plan as approved to form by the Department of Law;

(4) the record of notice as required under AS 36.30.130; and

(5) the record of respondents to the solicitation.

(b) A summary of the information contained in a file described in (a) of this section will be provided by the requesting agency to the commissioner of the Department of Administration.

History

Authority: AS 36.30.140; AS 36.30.230; AS 36.30.522
Eff. 11/28/97, Register 144

Article 12 Supply Management

2 AAC 12.580 Inventories {#sec-2-aac-12.580 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.580}

The chief procurement officer, the commissioner of transportation and public facilities, and the head of a purchasing agency may establish procedures to determine appropriate stock levels and the management of agency supplies.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.590 Supplies inventory records {#sec-2-aac-12.590 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.590}

(a) State agencies shall submit inventory records as directed by the chief procurement officer. Inventory records must include the following:

(1) all nonconsumable supplies with a unit acquisition cost of more than $5,000;

(2) supplies determined by the chief procurement officer to be sensitive, regardless of cost;

(3) lease purchase or installment purchase equipment or long term rental equipment; and

(4) supplies on loan for contractor or grantee use.

(b) Inventory records must be based on a physical inventory and adjusted for subsequent purchases, property traded in, transferred to another state agency, salvaged, or disposed of.

(c) A state agency may be required by the chief procurement officer to take physical inventory of supplies annually and at other times as the chief procurement officer directs.

(d) Theft of supplies valued at $500 or more shall be immediately reported to the appropriate law enforcement agency. All lost, stolen, or destroyed supplies shall be reported to the chief procurement officer by the agency.

History

Authority: AS 36.30.040; AS 36.30.070; AS 37.05.160
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 11/28/97, Register 144; am 2/28/2014, Register 209

2 AAC 12.600 State surplus supplies {#sec-2-aac-12.600 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.600}

(a) The chief procurement officer may act on behalf of the state in all matters pertaining to the disposition of surplus supplies. A purchasing agency may not transfer or otherwise dispose of supplies owned by the state without separate statutory authorization or authorization of the chief procurement officer. The authorization, if granted by the chief procurement officer, shall be in writing and include disposal procedures. This subsection does not apply to disposition of surplus supplies by the University of Alaska, the Alaska Court System, or the legislative branch.

(b) A purchasing agency shall notify the chief procurement officer of all surplus supplies on the forms and at the times prescribed by the chief procurement officer.

(c) The chief procurement officer shall offer surplus supplies through spot bids, competitive sealed bids, public auction, established markets, lease, trade or posted prices. If unusual circumstances render the methods required by this subsection impractical, the chief procurement officer may employ other disposition methods, including appraisal or barter.

(d) If the chief procurement officer offers surplus supplies by competitive sealed bid, notice of sale of the surplus supplies must be publicly available from the chief procurement officer at least 10 days before the date set for opening bids.

(e) An employee, contractor, or grantee of an agency that owns or disposes of surplus supplies may not directly or indirectly purchase or agree with another person to purchase surplus supplies if the employee, contractor, or grantee is, or has been, directly or indirectly involved in the disposal, maintenance, or preparation for sale of the surplus supplies. However, the chief procurement officer may authorize the employee, contractor, or grantee to purchase surplus supplies in advance in writing.

(f) The chief procurement officer may offer surplus supplies by negotiated sale, transfer, lease, or donation to local governments, public procurement units, or tax exempt nonprofit organizations when the chief procurement officer determines it to be in the state's best interests.

History

Authority: AS 36.30.040; AS 36.30.070
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 11/28/97, Register 144

2 AAC 12.610 Federal surplus material program {#sec-2-aac-12.610 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.610}

The Department of Administration will, in its discretion, acquire and distribute from the United States Government surplus property that may be usable and necessary for public purposes by a state agency or a political subdivision of the state. The chief procurement officer may

(1) prepare and file a state plan of operation with the United States General Services Administration;

(2) act on behalf of the state with federal agencies or other surplus property agencies regarding federal surplus property; and

(3) distribute federal surplus property to eligible entities.

History

Authority: AS 36.30.040; AS 36.30.070
Eff. 1/1/88, Register 104

Article 13 Legal and Contractual Remedies

2 AAC 12.615 Protest of cancellation of solicitation {#sec-2-aac-12.615 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.615}

(a) Repealed 11/28/97.

(b) An interested party may protest the cancellation of an invitation to bid or request for proposals by filing with the procurement officer a written protest that includes the information required by AS 36.30.560 no more than 10 days after a notice of cancellation is issued by the procurement officer.

History

Authority: AS 36.30.040
Eff. 3/30/90, Register 113; am 3/27/93, Register 125; am 11/28/97, Register 144

2 AAC 12.620 Decision to suspend {#sec-2-aac-12.620 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.620}

(a) If a determination to suspend a contractor or prospective contractor is made under AS 36.30.635, the written decision shall be sent to the person to be suspended. The decision must state that

(1) the suspension is for the period it takes to complete an investigation into possible debarment, but not for a period in excess of three months;

(2) bids or proposals will not be solicited from the suspended person, and, if they are received, they will not be considered during the period of suspension; and

(3) if a hearing has not been held, the suspended person may request a hearing.

(b) A contractor or prospective contractor is suspended upon issuance of the written decision to suspend. The suspension remains in effect during an appeal. The suspension may be ended by the officer who issued the written decision to suspend or by a court. Otherwise, the suspension ends when it has been in effect for three months or when a debarment decision takes effect.

History

Authority: AS 36.30.040; AS 36.30.635
Eff. 1/1/88, Register 104

2 AAC 12.625 Causes for debarment or suspension {#sec-2-aac-12.625 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.625}

The commissioner of administration may consider as a serious and compelling cause under AS 36.30.640(7) a wilful or aggravated violation of state or federal labor or safety laws as set out by the Department of Labor and Workforce Development under 8 AAC 100.010 and 8 AAC 100.030, and referred to the department under 8 AAC 100.020.

History

Authority: AS 36.30.635; AS 36.30.640
Eff. 6/7/2018, Register 226

2 AAC 12.630 Initiation of debarment action {#sec-2-aac-12.630 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.630}

(a) Written notice of a proposed debarment action shall be sent by certified mail, return receipt requested, to the last known address of the contractor or prospective contractor. This notice must

(1) state that debarment is being considered;

(2) set out the reasons for the action;

(3) state that the contractor or prospective contractor may be represented by counsel.

(b) Notice of proposed debarment must also be sent to the attorney general and the purchasing agency.

History

Authority: AS 36.30.040; AS 36.30.635
Eff. 1/1/88, Register 104

2 AAC 12.640 Effect of debarment decision {#sec-2-aac-12.640 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.640}

A debarment decision takes effect upon issuance of the written decision. After the debarment decision takes effect, the contractor remains debarred until a court or the commissioner of the department that issued the decision orders otherwise, or until the debarment period specified in the decision expires.

History

Authority: AS 36.30.040; AS 36.30.635
Eff. 1/1/88, Register 104

2 AAC 12.650 Request for hearing {#sec-2-aac-12.650 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.650}

A person entitled to a hearing under AS 36.30 must request in writing that a hearing be held. The request must be received by the commissioner of administration or the commissioner of transportation and public facilities, as appropriate, within the applicable time period set out in AS 36.30 and must set out specific grounds for the hearing.

History

Authority: AS 36.30.040; AS 36.30.695
Eff. 1/1/88, Register 104

2 AAC 12.660 Notice of time and place of hearing {#sec-2-aac-12.660 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.660}

The hearing officer shall send a written notice of the time and place of a hearing to the last known addresses of the person requesting the hearing and other affected persons. A copy shall be sent to the purchasing agency.

History

Authority: AS 36.30.040; AS 36.30.670
Eff. 1/1/88, Register 104

2 AAC 12.670 Hearing procedures {#sec-2-aac-12.670 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.670}

(a) A hearing shall be as informal as is reasonable and appropriate under the circumstances. The weight to be attached to evidence presented is within the discretion of the hearing officer. Stipulations of fact agreed upon by the parties may be regarded and used as evidence at the hearing. The hearing officer may require evidence in addition to that offered by the parties.

(b) A hearing shall be recorded. All evidence produced at a hearing shall be preserved by the commissioner of the Department of Administration or the commissioner's designee.

(d) The particular principles of law listed in AS 36.30.860 will be considered by the hearing officer if they are specifically argued by a party.

(e) A witness must testify under oath or affirmation. A witness may be cross-examined.

History

Authority: AS 36.30.040; AS 36.30.670
Eff. 1/1/88, Register 104; am 11/28/97, Register 144

2 AAC 12.680 Reporting suspected anticompetitive practices {#sec-2-aac-12.680 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.680}

The chief procurement officer, in consultation with the attorney general, shall develop procedures, including forms, for reporting suspected anticompetitive practices. A procurement officer who suspects that an anticompetitive practice has occurred or may be occurring shall follow these procedures.

History

Authority: AS 36.30.040; AS 36.30.635; AS 36.30.920
Eff. 1/1/88, Register 104

2 AAC 12.690 Misrepresentations and fraudulent claims {#sec-2-aac-12.690 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.690}

In accordance with AS 36.30.687, upon a finding that the recipient of a state contract made misrepresentation or fraudulent claims at any stage of proceedings relating to a procurement or contract controversy the procurement officer or the head of a purchasing agency may, after consulting with the attorney general, declare the contract void.

History

Authority: AS 36.30.040; AS 36.30.687
Eff. 1/1/88, Register 104; 11/28/97, Register 144

2 AAC 12.695 Protests of small procurements {#sec-2-aac-12.695 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.695}

(a) An interested party shall attempt to informally resolve a dispute with the procurement officer regarding a small procurement. If the attempt is unsuccessful, the interested party may protest the solicitation or the award of a small procurement contract under AS 36.30.320. The protest must be filed with the commissioner of the purchasing agency or the commissioner's designee. The protester must file a copy of the protest with the procurement officer for the purchasing agency.

(b) If protesting a solicitation issued under 2 AAC 12.400, a protest shall be filed before the date and time that quotations or informal proposals are due to the purchasing agency.

(c) If protesting the award of a small procurement contract of not more than $50,000, the protest shall be filed within 10 days from the date of the solicitation or award, whichever is later.

(d) If protesting the award of a small procurement contract greater than $50,000, a protest shall be filed within 10 days from the date that notice of award is made.

(e) To be accepted by the purchasing agency, a protest filed under (a) - (d) of this section shall contain the information required under AS 36.30.560.

(f) The procurement officer shall immediately give notice of the protest to the contractor or, if no award has been made, to all firms or persons that were solicited for the small procurement.

(g) The appropriate commissioner or commissioner's designee shall

(1) with the concurrence of the protester, assign the protest to the procurement officer or other responsible state official for a final administrative resolution under alternate dispute resolution;

(2) issue a decision denying the protest and stating the reasons for denial;

(3) issue a decision that sustains the protest, in whole or in part, and instruct the procurement officer to implement an appropriate remedy; or

(4) conduct a hearing on the protest consistent with the procedures contained in AS 36.30.670(b).

History

Authority: AS 36.30.040; AS 36.30.550
Eff. 4/25/97, Register 142; am 2/28/2014, Register 209

Article 14 Intergovernmental Relations

2 AAC 12.700 Requests for personnel, information, and services {#sec-2-aac-12.700 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.700}

(a) A request made to a public procurement unit by another public procurement unit to provide or make available personnel, services, information, or technical services under AS 36.30.730 must be complied with only to the extent that is mutually agreed upon.

(b) A request made to a state public procurement unit by another state public procurement unit to provide or make available personnel, services, information, or technical services under AS 36.30.730 must comply with the procedures established by the office of management and budget.

(c) A request made to a state public procurement unit by another public procurement unit to provide or make available personnel, services, information, or technical services under AS 36.30.730 must comply with AS 37.07, the Executive Budget Act.

History

Authority: AS 44.17.030Ak. Const.,Ak. Const., Ak. Const.,Art. III, sec. 16Art. III, sec. 24 Art. III, sec. 1
Eff. 1/1/88, Register 104

2 AAC 12.710 Definition {#sec-2-aac-12.710 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.710}

In AS 36.30.790(5), "agency" means the same as in AS 36.30.990.

History

Authority: AS 44.17.030Ak. Const.,Ak. Const., Ak. Const.,Art. III, sec. 16Art. III, sec. 24 Art. III, sec. 1
Eff. 1/1/88, Register 104

Article 15 Miscellaneous Provisions

2 AAC 12.720 Applicability {#sec-2-aac-12.720 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.720}

This chapter applies to every transaction to which AS 36.30 applies.

History

Authority: AS 36.30.040; AS 36.30.850
Eff. 1/1/88, Register 104

2 AAC 12.725 Procurement limitations relating to human trafficking {#sec-2-aac-12.725 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.725}

(a) Procurement may not be made from a person that has headquarters in a country listed in Tier 3 of the most recent Trafficking in Persons Report published by the United States Secretary of State under 22 U.S.C. 7107(b)(1)(C).

(b) The commissioner may restrict procurement from a person that conducts business in, but does not have headquarters in, a country listed in Tier 3 of the most recent Trafficking in Persons Report published by the United States Secretary of State under 22 U.S.C. 7107(b)(1)(C).

History

Authority: AS 36.30.040
Eff. 1/15/2011, Register 197

2 AAC 12.730 Federal assistance {#sec-2-aac-12.730 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.730}

If a procurement involves the expenditure of federal money or requires federal assistance and there is a conflict between a provision of this chapter and a federal statute, regulation, policy, or requirement, the procurement officer shall comply with the federal statute, regulation, policy, or requirement.

History

Authority: AS 36.30.040; AS 36.30.890
Eff. 1/1/88, Register 104

2 AAC 12.735 Use of federal general services administration contracts {#sec-2-aac-12.735 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.735}

When making or planning a purchase through the General Services Administration or from federal supply schedules of the General Services Administration as authorized by AS 36.30.910, a procurement officer

(1) shall review the scheduled price lists that are reasonably available when purchasing through the General Services Administration under AS 36.30.910 or from federal supply schedules;

(2) may not purchase under this section if a mandatory state contract exists for the item or service;

(3) shall place the order with the schedule contractor offering the lowest delivered price unless the purchase is made under (4) of this section;

(4) may order an item that has a higher price than the lowest delivered price but only if the procurement officer makes a written determination that only the higher priced item will satisfy the state's needs; and

(5) may purchase only from a person that qualifies as an Alaska bidder under AS 36.30.990(2).

History

Authority: AS 36.30.040; AS 36.30.910
Eff. 11/28/97, Register 144; am 2/28/2014, Register 209

2 AAC 12.740 Authority to delegate {#sec-2-aac-12.740 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.740}

(a) Except as otherwise provided by AS 36.30 or this chapter, the chief procurement officer, commissioner of administration, commissioner of transportation and public facilities, or the commissioner of commerce, community, and economic development will, in their discretion, delegate their authority under AS 36.30 to an employee in a department or agency. Authority conferred on the head of a purchasing agency by AS 36.30 may be delegated by that officer to an employee in that purchasing agency. A delegation of authority must be in writing.

(b) The chief procurement officer, commissioner of administration, commissioner of transportation and public facilities, commissioner of commerce, community, and economic development, or the head of a purchasing agency may revoke authority that the officer has delegated.

(c) An employee delegated authority by the chief procurement officer, commissioner of administration, commissioner of transportation and public facilities, commissioner of commerce, community, and economic development, or the head of a purchasing agency, may exercise that authority only in accordance with the delegation, AS 36.30, and this chapter.

History

Authority: AS 36.30.040; AS 36.30.015
Eff. 1/1/88, Register 104

2 AAC 12.750 Purchase requests by agencies {#sec-2-aac-12.750 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.750}

(a) If the chief procurement officer believes that a purchase request is not in the best interests of the state or that further review is needed, the officer shall return the purchase request to the requesting agency.

(b) The chief procurement officer may decide when a procurement will be initiated.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.760 Purchase of items separately from construction contract {#sec-2-aac-12.760 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.760}

The commissioner of transportation and public facilities is authorized to determine whether a supply item or group of supply items will be included as a part of, or procured separately from, a contract for construction.

History

Authority: AS 36.30.005; AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.770 Trade secrets and confidential technical data {#sec-2-aac-12.770 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.770}

The chief procurement officer and the commissioner of transportation and public facilities may establish procedures to protect the confidentiality of trade secret and confidential technical data.

History

Authority: AS 36.30.040; AS 36.30.140; AS 36.30.230
Eff. 1/1/88, Register 104

2 AAC 12.780 Determination of contractual terms and conditions {#sec-2-aac-12.780 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.780}

(a) The chief procurement officer may determine the contractual provisions, terms, and conditions of solicitations and contracts, if the provisions, terms, and conditions are not contrary to statutory or regulatory requirements governing the procurement and if all standard contract terms have been reviewed and approved as to form by the attorney general.

(b) The commissioner of transportation and public facilities may determine the contractual provisions and conditions of solicitations and contracts for construction and procurement of equipment or services for the state equipment fleet if the provisions, terms, and conditions are not contrary to statutory or regulatory requirements governing the procurement, and if all standard contract terms have been reviewed and approved as to form by the attorney general.

History

Authority: AS 36.30.040; AS 36.30.340
Eff. 1/1/88, Register 104

2 AAC 12.790 No restrictive terms and conditions {#sec-2-aac-12.790 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.790}

Contractual terms and conditions may not have the effect of unnecessarily limiting competition or exclusively requiring a proprietary supply, service, or construction item or procurement from a single source unless no other requirements will suffice.

History

Authority: AS 36.30.040; AS 36.30.060
Eff. 1/1/88, Register 104; am 11/28/97, Register 144

2 AAC 12.800 Non-collusion certification {#sec-2-aac-12.800 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.800}

Solicitations must provide that by submitting a bid or offer, the bidder or offeror certifies under penalty of perjury that the price submitted was independently arrived at without collusion.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.810 Bid, payment, and performance bonds for contracts {#sec-2-aac-12.810 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.810}

Bid, payment, and performance bonds or other security shall be required for all construction contracts over $100,000, and may be required for contracts as the chief procurement officer, the head of a purchasing agency, or the officer's designee deems advisable to protect the interests of the state. Any such requirements must be set out in the solicitation. Irrevocable letters of credit may be substituted for the required bond at the discretion of the head of the purchasing agency.

History

Authority: AS 36.30.040; AS 36.30.120
Eff. 1/1/88, Register 104

2 AAC 12.820 Installment purchase contracts {#sec-2-aac-12.820 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.820}

Supply contracts may provide for installment purchase payments, including interest charges, over a period of time. If the procurement is made by competitive sealed bid or competitive sealed proposal, an installment payment agreement may not be used unless provision for installment payments is included in the solicitation.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.830 Alternate bids or proposals {#sec-2-aac-12.830 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.830}

Alternate bids or proposals are nonresponsive unless the solicitation states that such bids or proposals may be accepted.

History

Authority: AS 36.30.040; AS 36.30.110; AS 36.30.210
Eff. 1/1/88, Register 104; am 3/27/93, Register 125

2 AAC 12.840 Conditioning bids or proposals {#sec-2-aac-12.840 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.840}

(a) A bid or proposal that is conditioned upon receiving award of both the particular contract being solicited and another state contract is nonresponsive unless conditioned bids are specifically authorized in the invitation to bid.

(b) A bid that is conditioned by the bidder and the condition requires a change to a material term of the solicitation is nonresponsive unless conditioned bids are specifically authorized in the invitation to bid.

(c) A proposal that is conditioned by the offeror and the condition requires a change to a material term of the solicitation may be rejected. The reasons for the rejection include the following:

(1) the condition does not meet the goals of the solicitation;

(2) the condition would violate AS 36.30 or other statutes and regulations;

(3) the condition is not in the best interest of the state.

(d) For purposes of this section, "material term" includes a

(1) novation or assignment;

(2) term that affects price, quality, quantity, or delivery.

History

Authority: AS 36.30.040; AS 36.30.110; AS 36.30.210
Eff. 1/1/88, Register 104; am 10/3/2002, Register 163

2 AAC 12.850 Extension of solicitation opening time; cancellation of solicitation; amendment of solicitation {#sec-2-aac-12.850 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.850}

(a) Before the opening of bids or proposals, a solicitation may be amended, or time for opening may be extended, upon the procurement officer's determination that the extension or amendment is in the state's best interest. All potential bidders or offerors known to have copies of the solicitation shall be advised of the extension or amendment.

(b) Before the opening of bids or proposals, a solicitation may be cancelled in whole or in part if the chief procurement officer or the head of a purchasing agency issuing a solicitation determines that cancellation is in the state's best interest. Reasons for cancellation include the following:

(1) the state no longer requires the supplies, services, or construction;

(2) the state no longer can reasonably expect to pay for the procurement;

(3) proposed amendments to the solicitation would be of such magnitude that a new solicitation is desirable; or

(4) the officer, after consultation with the attorney general, determines that a solicitation is in violation of the law.

History

Authority: AS 36.30.040; AS 36.30.350
Eff. 1/1/88, Register 104

2 AAC 12.860 Rejection of all bids or proposals {#sec-2-aac-12.860 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.860}

After the opening of bids or proposals or after notice of intent to award but before award, all bids or proposals may be rejected in whole or in part by the chief procurement officer or the head of a purchasing agency issuing the solicitation. Reasons for rejection include the following:

(1) the supplies, services, or construction being procured are no longer required;

(2) ambiguous or otherwise inadequate specifications were part of the solicitation;

(3) the solicitation did not provide for consideration of all factors of significance to the state;

(4) prices exceed available money and it would not be appropriate to adjust quantities to accommodate available money;

(5) all otherwise acceptable bids or proposals received are at unacceptable prices;

(6) there is reason to believe that the bids or proposals may not have been independently arrived at in open competition, may have been collusive, or may have been submitted in bad faith; or

(7) the award is not in the best interests of the state.

History

Authority: AS 36.30.040; AS 36.30.350
Eff. 1/1/88, Register 104

2 AAC 12.870 Rejection of individual bids or proposals {#sec-2-aac-12.870 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.870}

Reasons for rejecting an individual bid or proposal include the following:

(1) the business that submitted the bid or proposal is not responsible as determined under standards set out in 2 AAC 12.500;

(2) the bid or proposal is nonresponsive;

(3) the bidder or offeror did not meet the qualification requirements of 2 AAC 12.875;

(4) the supply, service, or construction item fails to meet the specifications or other acceptability criteria set out in the solicitation; or

(5) the bid or proposal fails to meet the goals or other provisions set out in the solicitation to eliminate and prevent in state contracting discrimination because of race, religion, color, national origin, sex, age, marital status, pregnancy, parenthood, or disability.

History

Authority: AS 36.30.040; AS 36.30.350
Eff. 1/1/88, Register 104; am 5/16/88, Register 106; am 6/29/95, Register 134; am 10/3/2002, Register 163

2 AAC 12.875 Qualified bidders or offerors {#sec-2-aac-12.875 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.875}

(a) Unless provided for otherwise in the solicitation, to qualify as a bidder or offeror for award of a contract issued under AS 36.30, a bidder or offeror must

(1) add value in the contract by actually performing, controlling, managing, or supervising the services to be provided; or

(2) be in the business of selling and have actually sold on a regular basis the supplies that are the subject of the solicitation.

(b) If a bidder or offeror leases services or supplies or acts as a broker or agent in providing the services or supplies in order to meet the requirements of (a) of this section, the procurement officer may not accept the bidder or offeror as a qualified bidder or offeror under AS 36.30.

History

Authority: AS 36.30.040
Eff. 10/3/2002, Register 163

2 AAC 12.880 Disposition of bids or proposals {#sec-2-aac-12.880 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.880}

(a) If an invitation to bid is canceled before opening, bids may be returned upon request. If bids are rejected after opening, the bids must be retained in the procurement file.

(b) If anytime during the solicitation process a request for proposals is canceled, the procurement officer may return proposals if the time for filing a protest has expired and a protest has not been filed.

History

Authority: AS 36.30.040; AS 36.30.250 AS 36.30.230; AS 36.30.350
Eff. 1/1/88, Register 104; am 11/28/97, Register 144

2 AAC 12.890 Application of preferences {#sec-2-aac-12.890 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.890}

Except for the Alaska products preference under AS 36.30.328, if multiple preferences apply to a solicitation, the values of the applicable preferences shall be summed and applied to the qualifying bid. If applying the Alaska products preference, the preference shall only be applied to the qualifying product.

History

Authority: AS 36.30.040; AS 36.30.328 AS 36.30.321; AS 36.30.336
Eff. 1/1/88, Register 104; am 7/20/95, Register 135; am 2/28/2014, Register 209

2 AAC 12.900 Tied bids or proposals {#sec-2-aac-12.900 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.900}

Tied bids are low bids that are responsive, responsible, and identical in price after application of preferences under AS 36.30.321. Tied proposals are highest ranked proposals that are responsive, responsible, and identical in score after application of preferences under AS 36.30.321. If tied bids or proposals exist, award shall be made through a random drawing. Award may not be made by dividing the procurement among identical bidders.

History

Authority: AS 36.30.040; AS 36.30.150
Eff. 1/1/88, Register 104; am 2/28/2014, Register 209

2 AAC 12.910 Extension of time for bid or proposal acceptance {#sec-2-aac-12.910 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.910}

After opening bids or proposals, a procurement officer may request bidders or offerors to extend the time during which the state may accept a bid or proposal.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104

2 AAC 12.920 Multiple award {#sec-2-aac-12.920 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.920}

A multiple award may be made if award to two or more bidders or offerors of similar products is necessary for adequate delivery, service, or product compatibility. A multiple award shall be made in accordance with the provisions relating to competitive sealed bidding, competitive sealed proposals, small purchases, and emergency procurements, as applicable. Multiple awards may not be made if a single award will meet the state's needs without sacrifice of economy or service. Awards may not be made for the purpose of dividing the procurement, or to allow for user preference unrelated to utility or economy.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104

Article 16 Design-Build Construction Contracts

2 AAC 12.931 Purpose {#sec-2-aac-12.931 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.931}

The provisions of 2 AAC 12.931 - 2 AAC 12.949 set out requirements for the procurement and administration under AS 36.30.200(c) of design-build construction contracts.

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 8/21/2005, Register 175

2 AAC 12.933 General design-build requirements {#sec-2-aac-12.933 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.933}

(a) The procurement officer may conduct a design-build procurement process only if the commissioner of transportation and public facilities determines in writing that it is advantageous to the state.

(b) When a design-build procurement process is used, the request for proposals must solicit a single price for both design and construction services. Nothing in this subsection prohibits a multi-step award process.

(c) The provisions of 2 AAC 12.931 - 2 AAC 12.949 apply to, and are incorporated in, all design-build construction contracts entered by an agency.

(d) Design-build construction contracts must be procured

(1) in accordance with AS 36.30.200 - 36.30.265; and

(2) except as provided in 2 AAC 12.931 - 2 AAC 12.949, in accordance with 2 AAC 12.220 - 2 AAC 12.315 (Competitive Sealed Proposals); in the case of inconsistency with 2 AAC 12.220 - 2 AAC 12.315, the provisions of 2 AAC 12.931 - 2 AAC 12.949 control.

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 8/21/2005, Register 175

2 AAC 12.935 Design-builders {#sec-2-aac-12.935 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.935}

(a) A design-builder must have a valid business license issued under AS 43.70 and 12 AAC 12, and must be

(1) registered as a general contractor in accordance with AS 08.18 and 12 AAC 21; or

(2) licensed as an architect or engineer in accordance with AS 08.48 and 12 AAC 36.

(b) A design-builder may provide professional or construction services that the design-builder is not itself licensed or registered to provide, if those services are assigned or subcontracted to a person that

(1) is a member of the design-build team;

(2) has a valid business license issued under AS 43.70 and 12 AAC 12; and

(3) is registered or licensed to provide the services in accordance with AS 08.18 and 12 AAC 21, or with AS 08.48 and 12 AAC 36, as applicable.

(1) bonding capacity;

(2) financial strength and capabilities;

(3) experience and technical expertise with projects of similar size and scope;

(4) past performance;

(5) qualifications and experience of key management and professional staff who will be assigned to the project;

(6) the capacity to accomplish work in the required time; as part of the evaluation, the agency shall consider, and the design-builder must disclose, the design-builder's present workload;

(7) quality control and quality assurance policies and programs;

(8) the design-builder's safety record, to include safety and drug-testing policies and programs;

(9) equipment, including technical resources and information technology;

(10) a subcontracting plan, including the qualifications and capabilities of any subcontractor required to be identified by the request for proposals.

(d) When evaluating a design-builder, the agency shall act in accordance with AS 36.30.250(b).

(e) The agency shall preclude or disqualify a design-builder or member of the design-build team from participation in a design-build construction contract if the procurement officer determines that the design-builder or design-build team member has an unfair competitive advantage or a conflict of interest.

(f) A consultant or subconsultant to the agency may not be allowed to participate in a project in other than a consultant or subconsultant capacity unless the procurement officer determines that

(1) the role of the consultant or subconsultant

(A) was limited to provision of preliminary design, reports, or similar low-level documents that will be incorporated in to the request for proposals; and

(B) did not include assistance in the development of instructions to offerors, qualification factors, performance criteria, or other evaluation criteria; or

(2) each document or report that the consultant or subconsultant delivered to the agency is made available to all offerors.

(g) With or without a request from the agency, a design-builder, or a member of the design-build team, must promptly disclose to the agency, in writing, any factor that may provide an unfair competitive advantage or potential or actual conflict of interest for the design-builder or design-build team member.

(h) Nothing in 2 AAC 12.931 - 2 AAC 12.949 limits or eliminates any responsibility or liability that a professional on a design-build construction contract owes to the agency or to a third party.

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 8/21/2005, Register 175

2 AAC 12.937 Development of performance criteria {#sec-2-aac-12.937 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.937}

The agency shall establish the scope and level of detail required for performance criteria contained in a request for proposals. The performance criteria must be detailed enough to permit offerors to submit proposals in accordance with the request for proposals.

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 8/21/2005, Register 175

2 AAC 12.939 Solicitation of proposals {#sec-2-aac-12.939 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.939}

(a) The agency shall prepare a request for proposals for each design-build construction contract. The request for proposals must contain, at a minimum, the following elements:

(1) the name and purpose of the project;

(2) the identity of the agency that will award the design-build construction contract;

(3) a description of the method selected under 2 AAC 12.943(a) as the basis for awarding the design-build construction contract;

(4) the procedures to be followed for submitting proposals, the criteria for evaluation of proposals and their relative weight, the procedures for making awards, and a statement that the requirements of 2 AAC 12.931 - 2 AAC 12.949 are incorporated;

(5) the date on or before which the agency must receive proposals; that date may not be less than 21 days after issuance of the request for proposals;

(6) provisions for the payment of a stipend, if any;

(7) provisions specifying ownership of design plans or concepts or of technical plans or concepts;

(8) the proposed contract form, terms, and conditions;

(9) performance criteria developed under 2 AAC 12.937, including, as appropriate, capacity, durability, and production standards, ingress and egress requirements, and other criteria for the intended use of the project, expressed in performance-oriented drawings and specifications suitable to allow the design-builder to make a proposal;

(10) a description of the drawings, specifications, or other required submittals, with guidance as to the form and level of completeness that will be acceptable; that description must include a description of the submittal review process;

(11) a schedule for planned commencement and completion of the design-build construction contract, unless contract time is to be proposed by the design-builder and is one of the weighted proposal evaluation criteria;

(12) budget limits, if any, for the design-build construction contract;

(13) affirmative action, disadvantaged business, or set-aside goals, if any, for the design-build construction contract;

(14) the qualifications the design-builder will be required to have;

(15) detailed material quality standards;

(16) the method for handling pre-proposal inquiries;

(17) long-term maintenance provisions, if any;

(18) a reference to the provisions of 2 AAC 12.935(e) and (f);

(19) a requirement that an offeror provide, in the offeror's proposal, information regarding actual or potential conflicts of interest;

(20) requirements related to changes in design-build team members or changes in personnel within design-build teams;

(21) each evaluation factor, including cost or price, and including each significant subfactor, if any, that will affect the award of the design-build construction contract;

(22) the relative importance of each evaluation factor and each subfactor, if any, in determining the award of the design-build construction contract;

(23) a requirement that the design-builder review the request for proposals to ascertain the project requirements, and a requirement that the design-builder notify the agency in the event of any ambiguity or uncertainty;

(24) terms or conditions detailing incentives, disincentives, or liquidated damages, if any;

(25) warranty provisions; the request for proposals must include notice that in addition to warranting materials, workmanship, and construction, and providing any additional warranties that the agency requires, a design-builder must warrant the design of the project;

(26) notice that the design-builder must provide, in a form and amount acceptable to the agency, insurance coverage for a defined period after final payment for the cost of

(A) correcting defects or deficiencies arising from or associated with design or construction negligence;

(B) errors or omissions; and

(27) identification of the disciplines to be evaluated.

(b) In a request for proposals, an agency may require a cash deposit, letter of credit, or bond not to exceed five percent of the maximum cost of the design-build construction contract, as established by the proposal.

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 8/21/2005, Register 175

2 AAC 12.941 Preparation and submission of proposals {#sec-2-aac-12.941 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.941}

(a) An offeror must submit its proposal to the agency at the specific place and at or before the specific time identified in the request for proposals.

(b) An offeror must complete any form required in the request for proposals and provided by the agency. The offeror must include with its proposal each completed form and any necessary attachment or additional information.

(c) Proposals shall be sealed and may not be opened until expiration of the time set in the request for proposals for submitting proposals.

(d) If the request for proposals requires a cash deposit or bond as described in 2 AAC 12.939(b), the deposit or bond is subject to forfeiture if the proposal is accepted but the offeror fails to execute the design-build construction contract.

(e) For each discipline that an agency identifies in the request for proposals, proposals must identify each person within that discipline to whom the offeror proposes to subcontract obligations under the design-build construction contract. A person that the offeror identifies may not be replaced without the approval of the agency.

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 8/21/2005, Register 175

2 AAC 12.943 Evaluation and award of design-build contracts {#sec-2-aac-12.943 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.943}

(a) The agency shall use one or a combination of the following methods as a basis for award unless the commissioner of transportation and public facilities approves another method:

(1) the best value method, in which the agency gives numerical scores to technical proposals, and then uses those numerical scores and the bid price to establish a best value in accordance with a formula published in the request for proposals;

(2) the two-step method, in which the agency

(A) first, uses a request for qualifications and the qualification factors under 2 AAC 12.935 to short-list offerors; the request for qualifications must contain, at a minimum, the following elements:

(i) the date on or before which the agency must receive qualifications submissions; that date may not be less than 21 days after issuance of the request for qualifications;

(ii) the qualifications the offerors will be required to have;

(iii) a description of the project in enough detail to let offerors determine if they wish to compete and to form the basis for their qualification submissions;

(iv) qualification factors and their relative weights;

(v) identification of the maximum number of offerors that will be permitted, at the second step described in (B) of this paragraph, to submit price and technical proposals; the maximum number may not exceed five offerors, unless the procurement officer determines that a maximum number greater than five is in the best interest of the state; and

(B) second, uses a request for proposals to evaluate price and technical proposals from the offerors that are short-listed;

(3) the low-bid method, in which

(A) an offeror must submit a technically qualified proposal in order for the agency to consider the bid; and

(B) the agency awards the design-build construction contract to the offeror that submits a proposal that is technically qualified and lowest price.

(b) If an agency uses a request for qualifications to short-list offerors, the agency shall issue notice of the request for qualifications in accordance with 2 AAC 12.130.

(c) To evaluate either submissions made in response to a request for qualifications or submissions made in response to a request for proposals, the agency may form evaluation committees. To assist in the evaluation process, an evaluation committee may retain the services of non-voting members, including consultants or subconsultants.

(d) An agency is not required to award a design-build construction contract as a result of a request for proposals. In accordance with 2 AAC 12.270, 2 AAC 12.860, and 2 AAC 12.870, the agency may reject a proposal.

(e) Notice of intent to award a design-build construction contract shall be issued in accordance with 2 AAC 12.210.

(f) The award of a design-build construction contract, if any, shall be made in accordance with AS 36.30.250.

(g) If the agency awards a design-build construction contract, the agency shall execute the contract and issue the successful offeror a written notice to proceed.

(h) At the time of award of a design-build construction contract, the agency may negotiate minor changes with the selected offeror for the purpose of clarifying the design criteria and work to be done, if the negotiated changes do not affect the ranking of the proposals based on their adjusted scores.

(i) In this section,

(1) "short-list" means to narrow the field of offerors through the selection of the most qualified offerors who have responded to a request for qualifications;

(2) "technical proposal" means the portion of a proposal that contains design solutions and other qualitative factors that are provided in response to the request for proposals.

History

Authority: AS 36.30.040; AS 36.30.350 AS 36.30.200; AS 36.30.365
Eff. 8/21/2005, Register 175

2 AAC 12.945 Protests and claims {#sec-2-aac-12.945 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.945}

Protests and claims arising from the procurement process under 2 AAC 12.931 - 2 AAC 12.949 shall be reviewed in accordance with AS 36.30.550 - 36.30.699, as applicable.

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 8/21/2005, Register 175

2 AAC 12.949 Definitions {#sec-2-aac-12.949 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.949}

In 2 AAC 12.931 - 2 AAC 12.949, unless the context requires otherwise,

(1) "agency" means

(A) the Department of Transportation and Public Facilities; or

(B) an agency within the meaning of AS 36.30.990 to which the commissioner of transportation and public facilities has delegated, under AS 36.30.015, authority to contract for construction;

(2) "design-build construction contract," within the meaning given in AS 36.30.990, means a construction contract between an agency and a design-builder to furnish architecture, engineering, and related design services, and to furnish construction services, including labor and materials.

History

Authority: AS 36.30.040; AS 36.30.200
Eff. 8/21/2005, Register 175

Article 17 Construction Arbitration Procedures

2 AAC 12.950 Arbitration agreement {#sec-2-aac-12.950 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.950}

(a) This chapter applies to, and its provisions are incorporated in, all construction contracts entered by the Department of Transportation and Public Facilities.

(b) A person entering a construction contract with the Department of Transportation and Public Facilities and who requests or agrees to arbitration of a claim involving that contract will be considered to have agreed to arbitration of construction claims as provided in AS 36.30 (State Procurement Code) and 2 AAC 12.950 - 2 AAC 12.989.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.952 Arbitration request {#sec-2-aac-12.952 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.952}

(a) To initiate arbitration under AS 36.30.627(a)(1), a contractor must file a written arbitration request with the commissioner. The arbitration request must be filed together with the appeal from the procurement officer's decision required by AS 36.30.625.

(b) The arbitration request must state the amount of the claim and must describe the claim in sufficient detail to make the circumstances of the dispute clear to the arbitrator.

(c) The contractor shall certify that the claim is made in good faith, that the supporting data are accurate and complete to the best of the contractor's knowledge and belief, and that the amount of the claim accurately states the amount for which the contractor believes the state is liable.

(d) The contractor shall serve a copy of the arbitration request and the appeal on the procurement officer at the time the contractor files the arbitration request and the appeal with the commissioner.

History

Authority: AS 36.30.040; AS 36.30.627; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.954 Answering statement {#sec-2-aac-12.954 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.954}

(a) The procurement officer shall file a written answering statement with the commissioner within 30 days after service of the arbitration request and appeal. The answering statement must raise any counterclaim asserted by the agency. The answering statement must state the amount of the counterclaim and describe the counterclaim in sufficient detail to make the counterclaim clear to the arbitrator.

(b) If the amount of the claim and the amount of the counterclaim added together is $250,000 or more, the answering statement must state whether the agency agrees to arbitration of the claim.

(c) The procurement officer shall certify that any counterclaim is made in good faith, that the supporting data are accurate and complete to the best of the procurement officer's knowledge and belief, and that the amount of the counterclaim accurately states the amount for which the procurement officer believes the contractor is liable.

(d) The procurement officer shall serve a copy of the answering statement upon the contractor at the time the procurement officer files the answering statement with the commissioner.

History

Authority: AS 36.30.040; AS 36.30.627; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.956 Referral to arbitrator {#sec-2-aac-12.956 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.956}

(a) If the total amount of the claim and any counterclaim is less than $250,000, or if the total amount of the claim and any counterclaim is $250,000 or more and the agency agrees to arbitration, the commissioner shall refer the appeal to a single neutral arbitrator.

(b) If the total amount of the claim and any counterclaim is more than $1,000,000, and the agency agrees to arbitration, the commissioner may refer the appeal to a panel of three neutral arbitrators. The parties may, by mutual agreement, waive a panel and have the claim and any counterclaim heard by a single arbitrator.

(c) The commissioner shall provide the arbitrator or panel with copies of the notice of appeal, the arbitration request, the answering statement, and any supporting documents filed by the parties with the commissioner.

History

Authority: AS 36.30.040; AS 36.30.627; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.958 Arbitrator list {#sec-2-aac-12.958 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.958}

(a) The commissioner shall maintain a list of neutral arbitrators who have agreed to conduct arbitrations of construction claims under AS 36.20.627 and 2 AAC 12.950 - 2 AAC 12.989.

(b) An arbitrator for a claim and any counterclaim that total less than $250,000 must be an

(1) attorney licensed under AS 08.08 to practice law in the state, with a minimum of ten years' experience, including experience in the areas of construction law or public procurement law; or

(2) architect or engineer licensed under AS 08.48 to practice in the state, with a minimum of ten years' experience, including experience in public construction or public contract administration.

(c) An arbitrator for a claim and any counterclaim that total $250,000 or more and that are to be heard by a single arbitrator must be an attorney licensed under AS 08.08 to practice law in the state, with a minimum of ten years' experience, including experience in the areas of construction law or public procurement law.

(d) An arbitrator on a three-member arbitration panel for a claim and any counterclaim that total $1,000,000 or more must be an

(1) attorney licensed under AS 08.08 to practice law in the state, with a minimum of ten years' experience, including experience in the areas of construction law or public procurement law; or

(2) architect or engineer licensed under AS 08.48 to practice in the state, with a minimum of ten years' experience, including experience in public construction or public contract administration; no more than two individuals who qualify under this paragraph may serve on a panel.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.960 Arbitrator referral {#sec-2-aac-12.960 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.960}

(a) The commissioner shall serve a copy of the current list of arbitrators to the parties following the filing of the answering statement.

(b) The parties shall promptly confer and, within 15 days after the date the list was served, shall notify the commissioner as to whether they agree on an arbitrator or, if the commissioner has referred the appeal to a panel under 2 AAC 12.956(b), on three arbitrators, subject to the requirements in 2 AAC 12.958(d) regarding composition of the panel. The parties shall provide the names of the agreed arbitrator or panel to the commissioner.

(c) If the parties agree on an arbitrator or a panel, the commissioner shall refer the appeal to that arbitrator or panel.

(d) If the parties do not agree on an arbitrator or a panel, each party shall, within 15 days after the date the list was served, strike from the list the name of each arbitrator to whom the party objects, number the remaining names in order of preference, and return the list to the commissioner. The commissioner shall select an arbitrator or a panel from remaining names on the list based on the parties' orders of preference, and shall refer the appeal to that arbitrator or panel.

(e) If a party does not return the list to the commissioner within 15 days after the date the list was served, the commissioner may consider all arbitrators on the list to be acceptable to that party. If a party strikes all names from the list, or if, for purposes of assembling a panel, the party does not provide unstruck names sufficient to assemble a panel in accordance with the composition requirements in 2 AAC 12.958(d), the commissioner may select any arbitrator or a panel from the list, and refer the appeal to that arbitrator or panel, subject to recusal, disclosure, and challenge under 2 AAC 12.962.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.962 Recusal, disclosure, and challenge {#sec-2-aac-12.962 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.962}

(a) An arbitrator shall decline appointment if any circumstance prevents the arbitrator from being impartial or independent, including any bias, any personal or financial interest in the outcome of the arbitration, or any past or present business or personal relationships with the parties or their representatives.

(b) An arbitrator shall disclose to the parties any circumstances that might reflect adversely on the arbitrator's impartiality or independence, even if the arbitrator does not believe those circumstances justify recusal.

(c) A party may challenge an arbitrator by filing a request for recusal with the commissioner within five days after the date the party receives the arbitrator's disclosure. The request must describe the basis for recusal in sufficient detail to make the alleged grounds clear to the commissioner. A copy shall be served on the other party and the arbitrator. The other party may file and serve a response within five days after service of the request for recusal. The arbitrator may not file a response.

(d) After reviewing a request for recusal and the response, if any, the commissioner shall determine whether to recuse the arbitrator. The commissioner's decision is final and binding.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.964 Vacancies {#sec-2-aac-12.964 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.964}

(a) If an arbitrator is unable to perform the duties of the office for any reason, including recusal, the commissioner shall appoint a substitute arbitrator in accordance with 2 AAC 12.958 - 2 AAC 12.960, and shall reassign the appeal to that arbitrator.

(b) If a vacancy occurs in a panel, the remaining arbitrator or arbitrators shall continue with the determination of the dispute, unless the parties jointly request the commissioner to appoint a substitute arbitrator in accordance with 2 AAC 12.958 - 2 AAC 12.960.

(c) A substitute arbitrator is subject to the same requirements of disclosure, recusal, and challenge under 2 AAC 12.962 as an arbitrator initially appointed.

(d) A substitute arbitrator shall promptly review the record and shall resume the appeal process from the point where the previous arbitrator left it.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.966 Communication with arbitrator and service of documents {#sec-2-aac-12.966 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.966}

(a) A party or a person acting on behalf of a party may not communicate unilaterally with the arbitrator concerning the dispute, except with the other party's authorization and for the limited purpose of scheduling a time, place or date for a proceeding.

(b) The arbitrator may not discuss the appeal with any witness or third party and may not comment on the arbitration to the press or public.

(c) Correspondence, documents, and electronic mail filed with or delivered to the arbitrator by a party shall be served upon the other party in the manner prescribed for service of pleadings in the Alaska Rules of Civil Procedure.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.968 Public access {#sec-2-aac-12.968 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.968}

(a) Correspondence, documents, and electronic mail filed with or delivered to the arbitrator or the commissioner by the parties relating to the appeal, recordings and transcripts of arbitrations, and decisions and orders of the arbitrator or panel are public records.

(b) The arbitrator's or panel's notes, drafts, research, and other deliberative materials and work product are confidential.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.970 Preliminary conference {#sec-2-aac-12.970 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.970}

(a) The arbitrator may schedule one or more preliminary conferences at the arbitrator's own initiative or at the request of a party. A panel shall designate one of its members to conduct preliminary conferences. Preliminary conferences may be conducted by telephone.

(b) At a preliminary conference, the arbitrator shall address any matters relating to scheduling and the future conduct of the case, including clarification of the claims, a schedule for the arbitration, motions, subpoenas, exchange of expert reports, discovery disputes, and any other preliminary matters raised by the parties.

(c) After the preliminary conference, requests to postpone a scheduled hearing may only be granted on a showing of good cause.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.972 Discovery and exchange of information {#sec-2-aac-12.972 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.972}

(a) At the request of any party or at the arbitrator's own initiative, the arbitrator may direct the production of documents, the identification of witnesses to be called including the anticipated topics of testimony, and any other discovery that the arbitrator considers necessary or desirable.

(b) The arbitrator may direct the parties to prepare and file stipulations of uncontested facts.

(c) The arbitrator may not allow discovery other than discovery allowed under AS 09.43.070, AS 36.30.629, and this section, except as ordered by the arbitrator in extraordinary cases and upon a clear showing that the interests of justice so require.

(d) The arbitrator shall rule on discovery disputes. The arbitrator may impose sanctions, including claim preclusion, if a party fails to comply with the arbitrator's discovery decisions.

(e) The arbitrator shall resolve discovery matters in a manner consistent with the expedited nature of arbitration.

History

Authority: AS 36.30.040; AS 36.30.629; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.974 Attendance {#sec-2-aac-12.974 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.974}

(a) The parties or their representatives shall attend the arbitration and all related proceedings. A party may be represented by an attorney.

(b) If a party or its representative fails to appear at a proceeding, and the arbitrator proceeds in the party's absence as provided in AS 36.30.695(f), a decision may not be entered solely on the grounds of default. The party who is present at a proceeding shall submit such evidence and argument as the arbitrator may require to make a decision.

History

Authority: AS 36.30.040; AS 36.30.695; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.976 Conduct of arbitration {#sec-2-aac-12.976 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.976}

(a) The parties shall exchange copies of all exhibits they intend to introduce at least five business days before the arbitration, and shall provide each arbitrator with a complete copy of the proposed exhibits.

(b) The parties shall each make a brief opening argument at the start of the arbitration.

(c) The contractor shall present its evidence in support of the claim. The agency shall then present its evidence opposing the claim and in support of any counterclaim. If a counterclaim is presented, the contractor may present rebuttal evidence.

(d) The parties may cross-examine opposing witnesses. The arbitrator may ask questions of witnesses and of the parties or their representatives at any time.

(e) Following presentation of the evidence, the parties shall each present a brief closing argument and shall specify the relief requested.

(f) The arbitrator shall declare the record on the claim closed when the arbitrator is satisfied that the presentations of the parties are complete.

(g) If the arbitrator requests documents or briefs to be filed following the arbitration, the record on the claim shall be declared closed as of the final date set by the arbitrator for receipt of the documents or briefs.

(h) The time in which, under AS 36.30.695(b), the arbitrator must issue a decision begins to run on the day after the date the record on the claim is declared closed.

(i) The arbitrator may vary the procedures in this section, and may limit the time allowed for any of these procedures, if each party is given a fair opportunity to present its case.

History

Authority: AS 36.30.040; AS 36.30.695; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.978 Authority of arbitrator {#sec-2-aac-12.978 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.978}

(a) The arbitrator or panel shall be in charge of the arbitration and all related proceedings, and shall have the full authority of a hearing officer as described in AS 36.30.670(b).

(b) The arbitrator or panel shall conduct the arbitration fairly, impartially, and informally, with a view to expediting resolution of the dispute.

(c) The arbitrator's or panel's rulings on all preliminary and procedural matters, including venue, scheduling, discovery, and evidentiary matters, are final and binding on the parties.

(d) The arbitrator or panel may not participate in settlement discussions between the parties or in a mediation with the parties.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.980 Evidence {#sec-2-aac-12.980 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.980}

(a) The formal rules of evidence do not apply to arbitrations under AS 36.30.627 and 2 AAC 12.950 - 2 AAC 12.989, with the exception of legal privileges recognized by the law of this state, including the attorney-client privilege and the spousal privilege.

(b) The arbitrator shall determine the admissibility, relevance, and materiality of evidence. Evidence of any type may be admitted if a reasonable person would rely upon it in the conduct of serious affairs, and if admission of the evidence would further the arbitrator's understanding of the matter.

(c) The arbitrator shall determine the admissibility, relevance, and materiality of evidence offered. The arbitrator may refuse to admit or may disregard evidence that the arbitrator considers cumulative, unreliable, or unnecessary. The arbitrator may limit or reject presentation of evidence that the arbitrator considers of slight value compared to the time and effort involved in presentation.

(d) The arbitrator may order the exclusion of any witness other than a party or the party's representative.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.982 Burden of proof {#sec-2-aac-12.982 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.982}

The party presenting the claim or counterclaim has the burden of proving the claim or counterclaim by a preponderance of the evidence.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.984 Record and transcript {#sec-2-aac-12.984 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.984}

(a) The arbitration shall be tape-recorded. A party requesting copies of the tapes shall pay the costs of duplication and make any necessary arrangements to duplicate the tapes.

(b) A party desiring a transcript shall make arrangements directly with a court reporter. The requesting party shall pay the costs of the court reporter and the transcript, if prepared.

(c) If a transcript is prepared, a copy shall be provided to the arbitrator at no cost. A copy shall be provided to the other party upon payment of its pro rata share of the court reporter and transcript costs incurred by the requesting party.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.986 Form of decision {#sec-2-aac-12.986 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.986}

(a) The arbitrator's decision must be written. The original shall be filed with the commissioner and served on the parties within the time limits set out in AS 36.30.695(b).

(b) In the decision, the arbitrator shall state the relief granted and shall provide sufficient detail to make the basis of the arbitrator's resolution of the claim clear. Findings of fact and conclusions of law are not required if the arbitrator considers them unnecessary to an understanding of the arbitrator's reasoning.

(c) In the decision, the arbitrator shall identify the prevailing party in the claim or state that there is no prevailing party.

(d) In the decision, the arbitrator shall state whether the expenses of the arbitrator, including the arbitrator's fees, any required travel, and any other expenses of the arbitrator, shall be borne equally by the parties or assessed in whole or part against a specified party.

History

Authority: AS 36.30.040; AS 36.30.695 AS 36.30.631; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.987 Attorney's fees and costs {#sec-2-aac-12.987 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.987}

(a) The prevailing party may file a motion for attorney's fees and costs with the arbitrator in accordance with Alaska Rules of Civil Procedure 68, 79, and 82. For purposes of Alaska Rule of Civil Procedure 68(b), the arbitrator shall consider one of the following dates to be the equivalent of the date on which parties in a civil action have made disclosures required by Alaska Rule of Civil Procedure 26:

(1) the date set under 2 AAC 12.970 - 2 AAC 12.972 as a deadline for mutual initial disclosure, if any;

(2) if a deadline for mutual initial disclosure has not been set, a date that the arbitrator sets with consideration to the specific discovery methods applied to a particular arbitration.

(b) The opposing party may file an opposition to the motion for attorney's fees and costs with the arbitrator in accordance with Alaska Rules of Civil Procedure 68, 79, and 82.

(d) The arbitrator shall rule promptly on the motion for attorney's fees and costs. In the ruling, the arbitrator shall state the amount of the award granted, if any, and shall provide sufficient detail to make the basis of the arbitrator's resolution of the motion clear. Findings of fact and conclusions of law are not required if the arbitrator considers them unnecessary to an understanding of the arbitrator's reasoning.

History

Authority: AS 36.30.040; AS 36.30.631; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.988 Rules of procedure {#sec-2-aac-12.988 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.988}

In the event of conflict between a provisions of AS 09.43.010 - 09.43.180 (Uniform Arbitration Act) and a provision of AS 36.30, the provision of AS 36.30 shall be given precedence in arbitrations conducted under 2 AAC 12.950 - 2 AAC 12.989.

History

Authority: AS 36.30.040; AS 36.30.690; AS 36.30.870
Eff. 5/26/2004, Register 170

2 AAC 12.989 Definitions for construction arbitration procedures {#sec-2-aac-12.989 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.989}

In 2 AAC 12.950 - 2 AAC 12.989, unless the context requires otherwise,

(1) "business day" means a day other than Saturday, Sunday, or a state holiday;

(2) "commissioner" means the commissioner of transportation and public facilities.

History

Authority: AS 36.30.040; AS 36.30.870
Eff. 5/26/2004, Register 170

Article 18 General Provisions

2 AAC 12.990 Definitions {#sec-2-aac-12.990 omnilex-key=us-ak-regs-official--title-2--2 AAC 12.990}

(a) In this chapter

(1) "business license" means a license required under the Alaska Business License Act (AS 43.70) and, for a person engaging in a business subject to licensing provisions of a regulatory nature, a license, certificate, permit, registration, or similar evidence of authority issued for an occupation by competent legal authority;

(2) "chief procurement officer" means the officer appointed under AS 36.30.010 as the chief procurement officer;

(3) "concession contract" means a contract

(A) in which the primary method of compensation is based on commissions paid to the contractor;

(B) the commissions are generated from the collection of receipts, or fees for services, charged to customers other than the state; and

(C) generally, the commissions are based on a percentage of gross sales or an established fee schedule and do not involve the expenditure of state funds;

(4) "cost analysis" means the evaluation of cost data for the purpose of arriving at costs actually incurred or estimates of costs to be incurred, prices to be paid, and costs to be reimbursed;

(5) "cost data" means information concerning the actual or estimated cost of labor, material, overhead, and other cost elements that have been actually incurred or that are expected to be incurred by the contractor in performing the contract;

(6) "employment agreement" means an agreement or contract between an employer and an employee in which the terms and conditions of employment are set out, and includes a contract with a citizen of a foreign country for services to be performed primarily in the foreign country, if the contract provides for such matters as state control of the work performed, the hours of work, the benefits that will be provided to a person who performs work under the contract, and the state's right to discharge a person who performs work under the contract;

(7) "interested party" means an actual or prospective bidder or offeror whose economic interest might be affected substantially and directly by the issuance of a contract solicitation, the award of a contract, or the failure to award a contract;

(8) "minor informalities" means matters of form rather than substance which are evident from the bid document, or are insignificant matters that have a negligible effect on price, quantity, quality, delivery, or contractual conditions and can be waived or corrected without prejudice to other bidders;

(9) "nonresponsive" means a bid or proposal that does not conform in all material respects to the solicitation;

(10) "price analysis" means the evaluation of price data, without analysis of the separate cost components and profit as in cost analysis, which may assist in arriving at prices to be paid and costs to be reimbursed;

(11) "price data" means factual information concerning offered or proposed selling prices, historical selling prices, and current selling prices, including profit, for supplies, services, or construction substantially similar to those being procured;

(12) "responsive bidder" means a firm or person who has submitted a bid that conforms in all material respects to the solicitation;

(13) "solicitation" means an invitation to bid, a request for proposals, a request for quotations, or any other method of soliciting bids, proposals, or quotes to perform a state contract;

(14) "accredited youth education and employment program" means a program that allows participants to earn academic credits that are recognized by a school district in this state;

(15) "alternate dispute resolution" means an informal technique that is voluntarily used to resolve issues in controversy; "alternate dispute resolution" includes negotiation, mediation, facilitation, and arbitration;

(16) "practicable" has the meaning given in (b) of this section;

(17) "reasonable and adequate procedures" means procedures that ensure fairness to potential offerors and competition commensurate with the circumstances of the procurement, considering price, mission requirements, and available competition; "reasonable and adequate procedures" includes contacting only one potential offeror in appropriate circumstances;

(18) "Alaska Online Public Notice System" means the system developed under AS 44.62.175;

(19) "division of vocational rehabilitation" means the division of vocational rehabilitation in the Department of Labor and Workforce Development.

(b) In AS 36.30,

(1) "medical doctor" means

(A) a person who is licensed to practice medicine in the state under AS 08.64;

(B) a person who is authorized to practice in the state as an advanced nurse practitioner because of specialized education and experience and who is certified to perform acts of medical diagnosis and to prescribe medical, therapeutic, or corrective measures under regulations adopted by the Board of Nursing (12 AAC 44.400); or

(2) "other governments" includes a (A) federally recognized tribe; and (B) foreign government; for purposes of this paragraph, "federally recognized tribe" means a Native entity within the State of Alaska that is on the list published by the United States Bureau of Indian Affairs, Department of the Interior, in 67 Federal Register, 46331 - 46333 (July 12, 2002);

(3) "place of business" means that location at which normal business activities are conducted, services are rendered, or goods are made, stored, or processed; a post office box, mail drop, telephone, or answering service does not, by itself, constitute a "place of business";

(4) "protestor" means an actual or prospective bidder, offeror, or contractor who is aggrieved in connection with the solicitation or the award of a contract and who files a protest;

(5) "practicable" means what may reasonably be accomplished or applied;

(6) "practical" has the meaning given "practicable" in this subsection;

(7) "staffed" means that the bidder or at least one employee of the bidder is a resident of this state under AS 16.05.415(a).

(c) In the definition of "procurement officer" set out in AS 36.30.990, "authorized" means authorized by a written delegation under 2 AAC 12.740 by the head of an agency that has a delegation of procurement authority based on a written determination of capability under AS 36.30.015.

(d) Repealed 2/28/2014.

(e) Repealed 2/28/2014.

(f) In the definition of "external procurement activity" set out in AS 36.30.790, an agency of a foreign government is an external procurement activity.

History

Authority: AS 36.30.040
Eff. 1/1/88, Register 104; am 3/30/90, Register 113; am 3/27/93, Register 125; am 4/25/97, Register 142; am 11/28/97, Register 144; am 10/3/2002, Register 163; am 1/15/2011, Register 197; am 2/28/2014, Register 209

Chapter 15 Purchasing

2 AAC 15.010 Competitive bids {#sec-2-aac-15.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.010}

Repealed 9/26/76.

2 AAC 15.020 Sealed bids {#sec-2-aac-15.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.020}

Repealed 1/1/88.

2 AAC 15.030 Bid list {#sec-2-aac-15.030 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.030}

Repealed 1/1/88.

2 AAC 15.040 Rejection of bids {#sec-2-aac-15.040 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.040}

Repealed 1/1/88.

2 AAC 15.050 Late bids {#sec-2-aac-15.050 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.050}

Repealed 1/1/88.

2 AAC 15.060 Awards {#sec-2-aac-15.060 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.060}

Repealed 1/1/88.

2 AAC 15.070 Tie bids {#sec-2-aac-15.070 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.070}

Repealed 1/1/88.

2 AAC 15.080 Alaska bidder preference {#sec-2-aac-15.080 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.080}

Repealed 9/26/76.

2 AAC 15.090 Bid award {#sec-2-aac-15.090 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.090}

Repealed 1/1/88.

2 AAC 15.100 Aggrieved bidder {#sec-2-aac-15.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.100}

Repealed 1/1/88.

2 AAC 15.110 Records {#sec-2-aac-15.110 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.110}

Repealed 9/26/76.

2 AAC 15.115 Payment for state purchases of goods or services {#sec-2-aac-15.115 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.115}

(a) If payment for goods or services purchased by a state agency is not made on or before a required payment date as specified in AS 37.05.285(a), the state agency shall pay interest on the unpaid balance in accordance with AS 37.05.285(c).

(b) If a seller of goods or services believes that interest is owed on a payment made by a state agency, the seller shall, within 30 days after receipt of the payment, submit to the billing address of the state agency a written request for payment of interest. A request for payment of interest must include

(1) the contract or purchase order number;

(2) the date of delivery of goods or services;

(3) the state warrant number and the date the warrant was received;

(4) a certified copy of the invoice submitted for payment; and

(5) a calculation of the amount of interest due.

(c) The state official responsible for authorizing payment for goods or services for which an interest payment has been requested under (b) of this section shall review and act upon the request no later than 10 days after receipt of the request. If a request for interest payment is disallowed, the seller may appeal the disallowance in accordance with 2 AAC 25.

(d) Under AS 37.05.285(f)(2) and this section, a payment is considered made on the date when the payment is personally delivered to the seller or agent of the seller or on the date the payment is postmarked upon mailing.

(e) In this section and in AS 37.05.285,

(1) "contract" means all state agency contracts and contract awards other than those covered by AS 36.90.010;

(2) "purchase" refers to goods or services provided to a state agency; it does not refer to goods or services provided to an individual under a state agency program that requires a determination of the individual's eligibility to receive the goods or services before payment is made by the state agency;

(3) "purchase order" means a document authorizing a seller to deliver goods or services with payment to be made later and includes an advertising order, delivery order, field purchase order, or state transportation request;

(4) "seller of goods or services" means an individual or organization that offers or transfers property or services to a state agency under a contract of a sale or purchase order.

(f) In AS 37.05.285, "proper billing" means an original invoice or certified copy of an original invoice that includes

(1) the contract number, purchasing document reference number, an itemized description of the goods or services provided, prices for each item or increment of service, extended prices;

(2) the seller of goods or services' valid taxpayer identification number, if the goods or services provided are of a type that is required to be included on a United States tax information return as described in 26 U.S.C. 6041, 6041A, 6042(a), 6044, 6045, 6049(a), 6050A, or 6050N (Internal Revenue Code); and

(3) any other documentation required by the contract or purchase order.

(g) In accordance with AS 37.05.285(a)(2), a claim provided to a state agency for goods or services received shall not be certified for payment until receipt of a proper billing.

History

Authority: AS 37.05.020; AS 37.05.285
Eff. 2/25/87, Register 101; am 4/1/88, Register 105

2 AAC 15.120 Definitions {#sec-2-aac-15.120 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.120}

Repealed 1/1/88.

2 AAC 15.130 Electronic disbursements {#sec-2-aac-15.130 omnilex-key=us-ak-regs-official--title-2--2 AAC 15.130}

(a) A state agency shall make a disbursement to a payee by electronic methods in accordance with AS 37.25.050(a), unless the

(1) state agency has determined that another disbursement method is required or permissible under AS 37.25.050(b)(1), (3), (5), or (6); or

(2) payee declines when offered the option of electronic disbursement methods authorized under AS 37.25.050(b)(2), (4), or (5).

(b) A determination under (a)(1) of this section allowing a disbursement method to a payee other than electronic must be documented in writing by the state agency and retained in accordance with the state agency's retention schedules for financial documents.

(c) A state agency shall offer electronic disbursement methods to each of its payees unless the state agency has determined, in writing, that another disbursement method is required or permissible under AS 37.25.050(b).

(d) A state agency shall send an offer of electronic disbursement methods at least once to the address on record for each payee of the state agency, and shall specify in that offer a date on or before which the payee may respond.

(e) The department will send an offer of electronic disbursement methods at least once to the address on record for each payee on the central vendor master file and to each state employee, and will specify in that offer a date on or before which the payee or employee may respond.

(f) A state agency is responsible for sending an offer of electronic disbursement methods to a payee who receives disbursements from the state agency and who is not on the central vendor master file, and shall specify in that offer a date on or before which the payee may respond.

(g) If a payee notifies the offering state agency that it rejects the offer of electronic disbursement methods, another method of payment must be used.

(h) If a payee is sent an offer of electronic disbursement methods, and the payee does not respond on or before the date specified for a response, the state agency shall, and the department will, consider the lack of response to be an election for another disbursement method.

(i) A payee may opt for electronic disbursement methods at any time for disbursements that state agencies make electronically, even after a rejection by the payee under (g) or (h) of this section of an offer of electronic disbursement methods.

(j) Documentation of offers of electronic disbursement methods and payee responses must be retained by the offering state agency and department in accordance with applicable retention schedules for financial documents.

(k) in this section,

(1) "central vendor master file" means the list of payees maintained within the statewide accounting system in the department;

(2) "department" means the Department of Administration;

(3) "payee" means an entity or individual receiving a disbursement from a state agency; "payee" includes vendors, employees, grantees, recipients, beneficiaries, and clients.

History

Authority: AS 37.05.020; AS 37.25.050
Eff. 2/15/2006, Register 177

Chapter 20 Sale of Surplus Property

2 AAC 20.010 Sale of surplus personal property {#sec-2-aac-20.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 20.010}

(a) The department shall dispose of all obsolete or surplus personal property of the state for which there is no immediate or prospective use. Disposal may be made by

(1) sale, competitive or negotiated;

(2) lease or license;

(3) destruction; or,

(4) in any other manner considered to be in the best interests of the state.

(b) Property which is offered for sale to the general public will be by auction. Notice of sale will be given by one, or more, of these methods

(1) publication in a newspaper;

(2) radio spot announcements;

(3) sending notices by mail to all known interested persons.

History

Authority: AS 44.68.110
Eff. 12/14/72, Register 44

2 AAC 20.020 Bid list {#sec-2-aac-20.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 20.020}

The department maintains a list of all people known to be interested in bidding for state owned property. Any person who wishes may have his name included on the list by making application to the department.

History

Authority: AS 37.05.020
Eff. 12/14/72, Register 44

Chapter 21 Division of Information Services

2 AAC 21.100 Allocation of Girdwood/Turnagain Arm and Kenai microwave television distribution systems {#sec-2-aac-21.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 21.100}

(a) The Girdwood/Turnagain Arm microwave television distribution system, which provides service to Bird Creek, Indian, and Girdwood, and the Kenai Peninsula microwave television distribution system, which provides service to Soldotna, Kenai, Homer, and other communities on the western Kenai Peninsula, have four channels available for broadcasting television signals. The Department of Administration will allocate the four channels as follows:

(1) the department will set aside one channel for use by the Anchorage Public Broadcasting Station; use of the channel will be provided free of charge to that station in recognition of the unique public service it provides;

(2) the department will allocate the remaining three channels to qualified applicants; successful applicants will be issued nontransferable access to and use of the microwave television distribution systems through the issuance of two-year term contracts; additional applications will be accepted when existing contracts expire or when vacancies on the microwave systems occur.

(b) A qualified applicant under (a)(2) of this section is any licensed broadcaster in the Anchorage area who agrees to pay an annual maintenance fee determined under (c) of this section and who provides a broad range of programming of interest to the general public, such as a variety from among the following types of programs: entertainment; national and local news, sports, and weather; locally produced programming; documentaries; nature programs; and public service announcements.

(c) Before accepting applications the department will determine the annual maintenance fee to be paid by each applicant and will state the amount on the application forms. The annual maintenance fee will be based on

(1) the estimated personnel cost to the state for routine repairs to the systems;

(2) the estimated transportation cost to the state associated with repairs to the systems;

(3) the estimated cost of routine electronic repair parts; and

(4) other costs related to maintenance of the Girdwood/Turnagain Arm and Kenai microwave television distribution systems.

(d) If there are more qualified applicants then available channels, the department will determine the successful applicants by

(1) using data compiled by a nationally recognized television rating service which is acceptable to the commissioner and which measures the viewing preferences of television audiences in the Anchorage market place; if rating service data is used as provided in this paragraph.

(A) the qualified applicants will be ranked from highest to lowest, based on each applicant's unweighted average ratings in the Anchorage market place for the four rating periods preceding the application period; applicants with unweighted average ratings within three percentage points of each other will be considered equally ranked;

(B) channel allocations will be made to the highest ranking applicant or applicants, and then to the next lower ranking applicant or applicants, until the available channels have been allocated; if the number of applicants with equally ranked ratings exceeds the remaining number of available channels, the department will select the successful equally-ranked applicants by random drawing from among them; or

(2) if ratings from a nationally recognized rating service acceptable to the commissioner are not available, by random drawing from among the qualified applicants.

(e) If there are fewer qualified applicants than available channels, the department will, in its discretion, offer use of the vacant channel(s) to the state university system for educational programming.

(f) The department will send to each applicant written notice of the department's determination under (a)(2) of this section.

(g) An applicant aggrieved by the department's determination under (a)(2) of this section may appeal the decision to the commissioner. An appeal under this subsection must be received by the department within 30 days after the date of the department's written notice of the determination.

History

Authority: AS 44.21.305; AS 44.21.310
Eff. 12/17/92, Register 124

Chapter 25 Claims

2 AAC 25.010 Presentation of claims required {#sec-2-aac-25.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 25.010}

(a) No claim for reimbursement for money expended, or for compensation for labor, materials, or supplies furnished, or services given to or for the state, may be processed under this chapter unless it first was promptly presented to the appropriate administrative or executive officer for approval and payment.

(b) For purposes of filing claims under this chapter, unless otherwise specified by law, "promptly" in (a) of this section means within six months after the money was expended, the labor, materials, or supplies were furnished, or the services were given to or for the state. However, this time limitation may be waived for good cause shown.

(1) reimbursement for money expended or compensation for labor, materials, or supplies furnished or services given to or for the state;

(2) awards for damages, lost profits, and lost interest; and

(3) any other expenses incurred as a result of the contractual relationships between the claimant and the state.

(d) The scope of the claim may not include attorney fees.

(e) No claim against any department in the executive branch which has adopted a mandatory claim and appeal procedure will be heard under this chapter.

History

Authority: AS 44.77.010; AS 44.77.020; AS 44.77.050
Eff. 12/2/78, Register 68

2 AAC 25.020 Review of disallowance by appropriate administrative or executive officer {#sec-2-aac-25.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 25.020}

(a) If the appropriate administrative or executive officer disallows all or part of the claim, the claimant may obtain a review of the officer's action by applying within 60 calendar days after receipt of the disallowance to the Department of Administration, P.O. Box C, Juneau, Alaska 99811, either orally or in writing.

(b) If the application for a review is made orally, the department will, in its discretion, request that the claimant file a written application identifying the claim and the decision disallowing it if the department reasonably believes a written application is necessary to enable the department to identify the claim and to obtain the necessary papers and memoranda to proceed with the review. The request for review must clearly state the position of the claimant with respect to the claim.

(c) In all other respects, the procedures for a review under this section will be the same as the procedures for an appeal under this chapter.

History

Authority: AS 44.77.020
Eff. 12/2/78, Register 68

2 AAC 25.030 Appeal of disallowance by department of administration {#sec-2-aac-25.030 omnilex-key=us-ak-regs-official--title-2--2 AAC 25.030}

(a) If a claim is disallowed by the Department of Administration, the claimant, the appropriate administrative or executive officer who approved the voucher for payment, or both, may appeal to the department from its original decision to disallow the claim by giving a written notice of appeal to the Department of Administration, P.O. Box C, Juneau, Alaska 99811, within 60 days after the claimant or officer receives a written notice of disallowance.

(b) A written notice of appeal under this section need not be in any particular form. However, it must show a desire to have the department review its original decision to disallow, must sufficiently identify the claim to permit the department to make the requested review, and must be signed by the claimant, his agent, or the officer who approved the voucher. The notice of appeal must clearly state the position of the claimant with respect to the claim.

History

Authority: AS 44.77.040
Eff. 12/2/78, Register 68

2 AAC 25.040 Assignment to hearing officer {#sec-2-aac-25.040 omnilex-key=us-ak-regs-official--title-2--2 AAC 25.040}

Upon receipt of a notice of appeal under this chapter, the department will assign the matter to a hearing officer.

History

Authority: AS 44.77.040
Eff. 12/2/78, Register 68

2 AAC 25.050 Procedure following assignment {#sec-2-aac-25.050 omnilex-key=us-ak-regs-official--title-2--2 AAC 25.050}

(a) Upon receipt of the assignment of a matter under this chapter, the hearing officer shall have all pertinent papers and memoranda relating to the claim and to the decision to disallow, as designated by any party to the appeal, transmitted to him. The hearing officer, in his discretion, may request that additional papers and memoranda be transmitted to him. The claimant has the right to view any of the aforementioned material.

(b) Upon receipt of the relevant papers and memoranda, the hearing officer shall set a time and place for hearing the appeal. A hearing should be scheduled under this subsection as soon as practical, but not later than 60 calendar days after the hearing officer receives the relevant papers and memoranda.

(c) When a hearing has been scheduled under this section, the hearing officer shall inform the claimant, the officer disallowing payment, the officer approving the voucher and any other interested person, at least 15 calendar days before the hearing, of the place and time set for the hearing. He also shall inform them that they will be given a reasonable opportunity to present their arguments relating to the claim at the hearing.

(d) Either party to the claim may seek to have the hearing date rescheduled. If, in the hearing officer's discretion, the request for rescheduling appears adequately justified the hearing will be rescheduled. Failure of the claimant to appear at the hearing may be grounds for disallowance of the claim.

(e) Both parties to the claim shall submit a hearing memorandum to the Department of Administration before the hearing date. The hearing memorandum should contain factual background, citations of law where appropriate, a statement of position, and the remedy sought. The Department of Administration will forward copies of the hearing memorandum to the adverse parties before the hearing.

History

Authority: AS 44.77.040; AS 44.77.050
Eff. 12/2/78, Register 68

2 AAC 25.060 Hearing procedure {#sec-2-aac-25.060 omnilex-key=us-ak-regs-official--title-2--2 AAC 25.060}

(a) At the hearing, the hearing officer shall hear the arguments of the claimant, the officer disallowing the payment, the officer approving the voucher, and any other interested party.

(b) The hearing officer may hear witnesses on a question of fact involved. These witnesses must be placed under oath before testifying. Both parties to the hearing may present witnesses. The hearing officer may request the testimony of additional witnesses.

(d) Witnesses testifying at the hearing and testifying at a deposition must be informed that false testimony is perjury.

(e) Proceedings at the hearing must be electronically recorded. A transcript will be prepared if requested by a party to the action. The party requesting the transcript will be billed the cost of transcribing the recording.

History

Authority: AS 44.77.040; AS 44.77.050
Eff. 12/2/78, Register 68

2 AAC 25.070 Questions of law {#sec-2-aac-25.070 omnilex-key=us-ak-regs-official--title-2--2 AAC 25.070}

If a question of law is involved in a claim presented under this chapter, the hearing officer will request a written opinion from the Department of Law.

History

Authority: AS 44.77.040; AS 44.77.060
Eff. 12/2/78, Register 68

2 AAC 25.080 Decision following hearing {#sec-2-aac-25.080 omnilex-key=us-ak-regs-official--title-2--2 AAC 25.080}

(a) After hearing the arguments of the parties and any witnesses, and obtaining a written opinion from the Department of Law (if necessary), the hearing officer may affirm, reverse, or modify the original decision disallowing the claim. The hearing officer's decision must be stated in writing, and must include the basis for the decision. Information obtained by the hearing officer subsequent to the hearing may be considered in making a decision if the parties are given an opportunity to comment on it.

(b) In cases of decisions against the state, the hearing officer's written decision must include a statement that the Department of Administration will issue a warrant against the proper appropriation for the sum the hearing officer finds due against the claimant, if any. In all cases the decision must include a statement that if the claimant does not accept the hearing officer's decision he may bring an action under AS 09.50.250 - 09.50.300 and Appellate Rule 45, but only if he brings it within 30 calendar days after receiving notice of the hearing officer's decision. No warrant will be issued until the claimant notifies the Department of Administration in writing that the award is accepted and the claim is satisfied, or until the state agency which was a party to the claim or the Department of Law notifies the Department of Administration that no action was brought on the claimant's claim within 30 days as provided by law.

(c) The hearing officer's decision is the final administrative action available to claimants and is not appealable to the Department of Administration.

History

Authority: AS 44.77.040
Eff. 12/2/78, Register 68

Chapter 30 (Relocated)

2 AAC 30.010 has been renumbered as 2 AAC 35.890, as of Register 93 (April 1985) {#sec-2-aac-30.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 30.010}

Chapter 35 Public Employees' Retirement System

Article 1 Board

2 AAC 35.010 Election of public employees retirement board members {#sec-2-aac-35.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.010}

Deleted.

2 AAC 35.015 Board member election procedures {#sec-2-aac-35.015 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.015}

Deleted.

History

Eff. 11/9/89, Register 114; am 7/12/90, Register 122; am 1/7/2001, Register 159; deleted as of Register 175, October 2005

2 AAC 35.020 Election of officers {#sec-2-aac-35.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.020}

Deleted.

2 AAC 35.030 Quorum {#sec-2-aac-35.030 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.030}

Deleted.

2 AAC 35.035 Teleconferencing {#sec-2-aac-35.035 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.035}

Deleted.

History

Eff. 8/25/90, Register 122; deleted as of Register 175, October 2005

2 AAC 35.040 Vacancy in term of elected board member {#sec-2-aac-35.040 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.040}

Repealed.

2 AAC 35.050 Meetings {#sec-2-aac-35.050 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.050}

Deleted.

Article 2 Submission and Audit of Employer Records

2 AAC 35.070 Regulations {#sec-2-aac-35.070 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.070}

(a) Public notice, under AS 39.35.005, of the proposed adoption, amendment, or repeal of a system regulation will include an informative summary of the action proposed to be taken; a date through which written comments on the proposed action will be accepted from the public; and the time and place of any hearings at which oral comments from the public will be accepted, if the commissioner decides to schedule such hearings. Upon request from any person, the commissioner will provide that person with the text of any regulation or proposed regulation whose adoption, amendment or repeal is being considered. The commissioner will consider all comments presented under this subsection before adopting, amending, or repealing a regulation, but is not required to respond to comments. if a hearing is held under this subsection, the commissioner may continue or postpone the hearing to a time and place that the commissioner determines to be suitable. The commissioner may take an action that varies from the proposed action set out in the notice required by this subsection if the subject matter of a regulation adopted, amended, or repealed remains the same as that included in the public notice.

(b) If the commissioner adopts, amends, or repeals a regulation as an emergency regulation under AS 39.35.005(h), the commissioner's action will be accompanied by a written finding that the action meets the standards set out in AS 39.35.005(h) for an emergency action to be valid. This written finding will include a summary of the facts constituting the emergency. The public notice that is required by AS 39.35.005(h) after the emergency action will comply with (a) of this section. An emergency regulation adopted, amended, or repealed under AS 39.35.005(h) and this subsection remains in effect only 30 days after its effective date, unless the emergency regulation is proposed for adoption, amendment, or repeal on a permanent basis under AS 39.35.005 and this section.

(d) The commissioner will make copies of adopted regulations available to the public upon request.

History

Authority: AS 39.35.003; AS 39.35.005

2 AAC 35.080 Notice of appeal rights {#sec-2-aac-35.080 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.080}

(a) If a final decision by the administrator is in whole or in part adverse to the person seeking the decision, the division will include with that decision an outline of the procedures necessary for filing an administrative appeal of the decision and the notice of appeal form necessary to initiate the appeal. The outline or notice will include a statement that the person, if filing an appeal, has a right to counsel at the person's own expense in the appeal. A final decision of the administrator includes a final determination of eligibility for benefits, a reduction in benefits, or the denial of a review of a decision by a division supervisor, but does not include a decision on a request for a waiver of an adjustment made by the commissioner of administration under AS 39.35.522.

(b) If a decision made by the commissioner of administration under AS 39.35.522 on a request for a waiver of an adjustment is adverse in whole or in part to the person seeking the waiver, the commissioner will notify the person that the person may appeal the decision to the office of administrative hearings, and that a notice of appeal must be filed with the commissioner within 30 days of the date that the person received the notice of the commissioner's decision. The commissioner will send to the division a copy of any notices of appeal that the commissioner receives under this subsection, and the division will notify the person wishing to appeal if the notice of appeal was timely. If the notice of appeal was not timely, the process set out under 2 AAC 35.100(e) applies.

History

Authority: AS 39.35.003; AS 39.35.520; AS 39.35.522

2 AAC 35.090 Appeals {#sec-2-aac-35.090 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.090}

Repealed.

2 AAC 35.100 Filing of notice of appeal {#sec-2-aac-35.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.100}

(a) A person who wishes to appeal a decision of the division under AS 39.35 shall file a notice of appeal with the division within 30 days after the date that the person receives notice of the decision.

(b) Repealed 7/20/2006.

(d) A person who fails to file a notice of appeal within the time established by this section forfeits the right to appeal, unless the person demonstrates to the satisfaction of the administrator that there are extraordinary circumstances that prevented the person from meeting the deadline. Extraordinary circumstances may include being adjudged as incompetent or confined to a hospital, but do not include lack of information or mere neglect.

(e) If a person files an untimely notice of appeal, including a notice of appeal to the commissioner of administration under AS 39.35.522, without explanation of why the filing is untimely, the division shall return the notice of appeal to the person, and inform the person that the person may resubmit the notice with an explanation of why it was not timely filed. If the person resubmits the notice of appeal with an explanation or if the original untimely notice of appeal contained an explanation of untimeliness, and the administrator in either situation found that the explanation did not establish extraordinary circumstances excusing the untimeliness under (d) of this section, the person may file a new notice of appeal within 30 days of the date that the person receives notice of the decision refusing to accept the untimely first appeal.

History

Authority: AS 39.35.003; AS 39.35.522

2 AAC 35.110 Division to notify office of administrative hearings {#sec-2-aac-35.110 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.110}

Upon receipt of a timely notice of appeal, the division shall date stamp the receipt and promptly send a copy of that notice to the office of administrative hearings. If the only timely notice of appeal relates to the decision of the administrator not to accept an untimely notice of appeal under 2 AAC 35.100(d), the administrator shall send to the office of administrative hearings only the notice of appeal relating to the decision not to accept the untimely notice of appeal.

History

Authority: AS 39.35.003

2 AAC 35.120 Form of notice {#sec-2-aac-35.120 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.120}

A notice of appeal must include the following information:

(1) the action by the division which the appellant is appealing and the relief the appellant seeks;

(2) the grounds for the appeal; and

(3) whether the appellant requests an informal conference with the division during the pendency of the appeal before the office of administrative hearings.

History

Authority: AS 39.35.003

2 AAC 35.130 Informal conference {#sec-2-aac-35.130 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.130}

If an appellant requests an informal conference with the division under 2 AAC 35.120(3), the division will convene an informal conference in the office of the division, or at another location or by another means, such as by telephone, that is convenient for the appellant and the division, and at a time that does not delay the appellant's hearing before the office of administrative hearings. If the informal conference resolves the issues being appealed, in whole or in part, the division will notify the office of administrative hearings, and the appellant may withdraw or modify the appeal.

History

Authority: AS 39.35.003

2 AAC 35.132 Place for filing with the division or the commissioner of administration {#sec-2-aac-35.132 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.132}

(a) When a person is required to make a filing with the division under AS 39.35 or this chapter, including a notice of appeal, the person may make that filing by hand-delivering or mailing the filing to any office of the division. When a person is required to make a filing with the commissioner of administration under AS 39.35.522, the person may make that filing by hand-delivering or mailing the filing to office of the commissioner in Juneau.

(b) A filing made by a person to the person's employer does not constitute a valid filing with the division or with the commissioner of administration. If the employer forwards the filing to the division, if that is the appropriate place of filing, or to the commissioner of administration, if the commissioner's office is the appropriate place of filing, a valid filing is then effected.

History

Authority: AS 39.35.003; AS 39.35.522
Eff. 7/20/2006, Register 179

2 AAC 35.134 Time of action {#sec-2-aac-35.134 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.134}

(a) When a person is required to make a filing with the division, including a notice of appeal, or with the commissioner of administration within a certain time period under AS 39.35 or this chapter, the effective date of that filing is the day it is received by the division or the commissioner, as appropriate, or, if mailed to the appropriate entity, the day it is postmarked.

(b) If a mailed filing has an illegible postmark or an undated postmark, the postmark date is rebuttably presumed to be five working days before the day the filing is received by the division or the commissioner of administration.

(c) If a person makes a filing required to be made to the division or to the commissioner of administration to the person's employer instead, and the employer forwards the filing to the division or to the commissioner, the effective date of the filing is the date that it is received by the division or the commissioner, or the date of the postmark or other proof of sending by the employer.

History

Authority: AS 39.35.003; AS 39.35.522
Eff. 7/20/2006, Register 179

2 AAC 35.136 Defined contribution plan compliance with the Internal Revenue Code {#sec-2-aac-35.136 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.136}

For purposes of compliance with the Internal Revenue Code, the defined contribution plan (AS 39.35.700 - 39.35.990) will be treated as an Internal Revenue Code sec. 414(k) (26 U.S.C. 414(k)) plan in which savings are accumulated in an individual retirement account for the exclusive benefit of the member or beneficiaries, certain fixed occupational death and disability benefits are paid, and certain fixed retirement and survivor benefits for peace officers and fire fighters are paid.

History

Authority: AS 39.35.003; AS 39.35.890 AS 39.35.710; AS 39.35.892
Eff. 6/22/2006, Register 179

2 AAC 35.137 Normal retirement benefit nonforfeitable {#sec-2-aac-35.137 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.137}

(a) For purposes of compliance with the Internal Revenue Code $ 401(a)(7), the normal retirement benefit calculated under AS 39.35.870 is nonforfeitable upon attainment of normal retirement age.

(b) Notwithstanding (a) of this section, a normal retirement benefit is subject to the provisions of AS 39.35, including AS 39.35.932.

(c) In the event of a full or partial termination of, or a complete discontinuance of employer contributions to the plan, the accrued benefits of the affected members under the plan are 100 percent vested and nonforfeitable to the extent funded and required by federal law.

(d) This section may not be construed as a reduction or limitation of rights previously existing, or as an indication that vested benefits would be forfeitable before the stated age is attained.

(e) In this section, "normal retirement age" means the age set for Medicare eligibility at the time the member retires, with the completion of at least 10 years of service, whichever is later.

History

Authority: AS 39.35.003; AS 39.35.710; AS 39.35.932 AS 39.35.005; AS 39.35.870
Eff. 1/12/2013, Register 205

2 AAC 35.138 Transfer into defined contribution plan by nonvested members of defined benefit plan {#sec-2-aac-35.138 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.138}

(a) A nonvested member of the defined benefit plan (AS 39.35.095 - 39.35.680) who wishes to participate in the defined contribution plan (AS 39.35.700 - 39.35.990) under AS 39.35.940 must make that election within 12 months of the effective date of the member's employer's election to participate in the defined contribution plan. The member must also certify in writing to the administrator that the member has carefully reviewed the information sent to the member under AS 39.35.940(h) and that the member understands that the member had the right to review the decision to transfer with a qualified employee of the division before the member made the decision.

(b) A matching employer contribution made on behalf of a member of the defined contribution plan under AS 39.35.940(c) may not exceed the limits set out in sec. 415(c) of the Internal Revenue Code (26 U.S.C. 415(c)) during the applicable limitation year, as defined in AS 39.35.990. If the matching employer contribution would exceed the limits during the limitation year in which the transfer occurs, the remaining amount of the matching employer contribution shall be made in the next limitation year, if the limits would not be exceeded.

(c) Membership service previously earned in the defined benefit plan by a former member of that plan who has elected to become a member of the defined contribution plan shall be credited for purposes of determining vesting in the matching employer contribution under AS 39.35.940(c) and in subsequent employer contributions under AS 39.35.790(b).

(d) An employer participating in the defined benefit plan that elects to consent to transfers of its nonvested employees in that plan to the defined contribution plan must make that election through amendment of the employer's participation agreement and through a resolution of the employer's governing body.

(e) For purposes of this section and AS 39.35.940, "membership service" means service with a participating employer under AS 39.35.095 - 39.35.680 for which contributions have been paid and does not include any service for which reinstatement indebtedness has not been fully paid.

History

Authority: AS 39.35.003; AS 39.35.780; AS 39.35.940 AS 39.35.710; AS 39.35.790
Eff. 6/22/2006, Register 179; am 9/13/2006, Register 180

2 AAC 35.139 Compliance with the Internal Revenue Code {#sec-2-aac-35.139 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.139}

(a) Pursuant to AS 39.35.710, and for purposes of compliance with the Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations, the Public Employees' Retirement System Tier 4 Defined Contribution Plan under AS 39.35.700 - AS 39.35.990 hereby adopts by reference, as part of the governing Plan document, the Retirement System IRS Compliance Policy dated August 2015, as amended from time to time.

(b) When an amended version of the Retirement System IRS Compliance Policy is made available, the Division will, not later than 30 days after the effective date of the amended version, post on the Alaska Online Public Notice System and publish in a newspaper of general circulation or trade or industry publication a notice that describes the amended material and how a copy of the amended version may be obtained or reviewed. The division will also furnish the notice described in this subsection to each person or group that has filed a request for notice of proposed action with the commissioner and furnish a copy to each incumbent Alaska state legislator, the Legislative Affairs Agency, and to the regulations attorney in the Department of Law.

History

Authority: AS 39.35.003; AS 39.35.005; AS 39.35.710
Eff. 9/24/2015, Register 216

2 AAC 35.140 Scheduling appeal {#sec-2-aac-35.140 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.140}

Repealed.

2 AAC 35.150 Presentation of evidence {#sec-2-aac-35.150 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.150}

Repealed.

2 AAC 35.155 Physician board members in appeals to determine medical eligibility for disability benefits {#sec-2-aac-35.155 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.155}

Repealed.

2 AAC 35.157 Subpoenas and preservation of testimony {#sec-2-aac-35.157 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.157}

Repealed.

History

Eff. 1/7/2001, Register 159; repealed 7/20/2006, Register 179

2 AAC 35.160 Appeal procedures {#sec-2-aac-35.160 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.160}

Repealed.

2 AAC 35.170 Deliberations on appeal {#sec-2-aac-35.170 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.170}

Repealed.

2 AAC 35.180 Decision on appeal to be written {#sec-2-aac-35.180 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.180}

Repealed.

2 AAC 35.190 Reconsideration {#sec-2-aac-35.190 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.190}

Repealed.

History

Eff. 9/29/2000, Register 159; repealed 7/20/2006, Register 179

2 AAC 35.200 Definition of compensation for employees of the State of Alaska stationed in foreign countries {#sec-2-aac-35.200 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.200}

With respect to State of Alaska employees stationed in foreign countries, compensation for retirement purposes will be considered to be the compensation which that employee would receive if the employee were working and holding the same position in Juneau, Alaska.

History

Authority: AS 39.35.003

2 AAC 35.210 Voluntary contributions {#sec-2-aac-35.210 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.210}

(a) An employee may elect to make voluntary contributions to the employee savings account under AS 39.35.180, or may suspend or change the amount of voluntary contribution at the beginning of a payroll period. The employee shall give the administrator 30 days' notice of the election, suspension, or change of voluntary contribution.

(b) Repealed 1/13/2010.

History

Authority: AS 39.35.003; AS 39.35.180

2 AAC 35.215 Normal retirement benefit nonforfeitable {#sec-2-aac-35.215 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.215}

(a) For purposes of compliance with the Internal Revenue Code $ 401(a)(7), the normal retirement benefit calculated under AS 39.35.370 is nonforfeitable upon attainment of normal retirement age.

(b) Notwithstanding (a) of this section, a normal retirement benefit is subject to the provisions of AS 39.35, including AS 39.35.495 and 39.35.672.

(d) This section may not be construed as a reduction or limitation of rights previously existing, or as an indication that vested benefits would be forfeitable before the stated age is attained.

(e) In this section, "normal retirement age" means

(1) for a person hired on or after July 1, 1986, age 60 with the completion of at least five years of service, whichever is later;

(2) for a person hired before July 1, 1986, age 55 with the completion of at least five years of service, whichever is later.

History

Authority: AS 39.35.003; AS 39.35.370; AS 39.35.672 AS 39.35.115; AS 39.35.495
Eff. 1/12/2013, Register 205

2 AAC 35.220 Submission and audit of employer records {#sec-2-aac-35.220 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.220}

(a) The employer shall transmit to the administrator records concerning an employee's period of service, date of birth, compensation, entrance into service, death, withdrawal and other data necessary for the proper and effective operation of the system not later than 10 days of the date of occurrence or the first day of the payroll period occurring closest to the event, whichever is earlier.

(b) The administrator may perform an audit, review or assessment of the records of the employer to ensure compliance with the statutes and regulations of the public employees' retirement system and to confirm the accuracy of the information reported by the employer to the plan.

(c) An audit, review or assessment of the employer records to determine an employer's compliance with the plan provisions shall include a desk audit, a field audit, or both.

(d) In conducting an audit, review or assessment of the employer records, the employer shall allow the administrator or administrator's designee access to original records that document personnel hiring and employment practices.

(e) Following the audit, review or assessment of the employer records, the employer will be provided with written preliminary findings. The preliminary findings will identify inaccuracies and issues to be resolved to maintain compliance with plan provisions. Not later than 30 days of the date of the receipt of the preliminary findings the employer shall submit additional documentation for consideration or to respond to the preliminary findings.

(f) The final audit will include audit or review findings and will be provided to the employer not later than 60 days after consideration of any documentation or response submitted under (e) of this section.

(g) In this section, unless the context otherwise requires,

(1) "audit" means the process of obtaining competent evidentiary material about employer records through inspection, observation, inquiry, and confirmation sufficient to support a reasonable basis for determining the employer's compliance with the legal requirements of the public employees' retirement system.

(2) "desk audit" means an audit of an employer's records conducted by the administrator or designee based upon an examination of an employer's records without an on-site visit to the location of the employer's business records;

(3) "field audit" means an audit of an employer conducted by the administrator or designee based upon an examination of an employer's records with an on-site visit to the location of the employer's business records.

History

Authority: AS 39.35.003; AS 39.35.005 AS 39.35.004; AS 39.35.070

2 AAC 35.221 Limitation on fixed benefits in defined contribution plan {#sec-2-aac-35.221 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.221}

All of the fixed benefits in the defined contribution plan (AS 39.35.700 - 39.35.990) are subject to the limitation on benefits in sec. 415(b) of the Internal Revenue Code (26 U.S.C. 415(b)), including monthly disability payments under AS 39.35.890, monthly survivor pension payments under AS 39.35.890(k) and 39.35.892, and monthly retirement pension payments of a disabled peace officer or fire fighter under AS 39.35.890(h)(2).

History

Authority: AS 39.35.003; AS 39.35.780; AS 39.35.892 AS 39.35.710; AS 39.35.890
Eff. 6/22/2006, Register 179

2 AAC 35.222 Certain periods to count toward vesting in the defined contribution plan and the health reimbursement arrangement plan {#sec-2-aac-35.222 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.222}

(a) A period during which a member of the defined contribution plan (AS 39.35.700 - 39.35.990) is receiving an occupational disability benefit under AS 39.35.890 constitutes membership service for the purposes of determining vesting in employer contributions under AS 39.35.790(b) and eligibility for retirement and medical benefits under AS 39.35.700 - 39.35.990 and under the health reimbursement arrangement plan (AS 39.30.300 - 39.30.495).

(b) If a member of the defined contribution plan receiving or entitled to receive an occupational disability benefit under AS 39.35.890 dies while receiving that benefit or before the commencement of the benefit, the period during which the member was eligible for the benefit and the period during which a survivor's benefit was paid to a survivor of the member constitute membership service for the purposes of determining vesting in employer contributions under AS 39.35.790(b) and eligibility for retirement and medical benefits under AS 39.30.300 - 39.30.495 and AS 39.35.700 - 39.35.990.

(c) If a member of the defined contribution plan suffers an occupational death under AS 39.35.892, the period during which a survivor's benefit is paid to a survivor of the member constitutes membership service for the purposes of determining vesting in employer contributions under AS 39.35.790(b) and eligibility for retirement and medical benefits under AS 39.30.300 - 39.30.495 and AS 39.35.700 - 39.35.990.

History

Authority: AS 39.35.003; AS 39.35.890; AS 39.35.892
Eff. 6/22/2006, Register 179

2 AAC 35.223 Prohibitions on elections of distributions from individual accounts of members of the defined contribution plan {#sec-2-aac-35.223 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.223}

A member of the defined contribution plan (AS 39.35.700 - 39.35.990) may not elect distributions from the member's individual account under AS 39.35.810 while the member is receiving or entitled to receive occupational disability benefits under AS 39.35.890. A beneficiary of a deceased member of the plan may not elect distributions from the deceased member's individual account under AS 39.35.810 while the beneficiary is receiving survivor benefits under AS 39.35.890(k) or AS 39.35.892.

History

Authority: AS 39.35.003; AS 39.35.890 AS 39.35.810; AS 39.35.892
Eff. 6/22/2006, Register 179

2 AAC 35.224 Vesting in employer contributions for members of the defined contribution plan receiving disability benefits {#sec-2-aac-35.224 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.224}

Notwithstanding AS 39.35.790(b), a member of the defined contribution plan (AS 39.35.700 - 39.35.990) who is appointed to occupational disability under AS 39.35.890 becomes fully vested in the employer contributions made under AS 39.35.890(d)(2) as those contributions are made.

History

Authority: AS 39.35.003; AS 39.35.790 AS 39.35.780; AS 39.35.890
Eff. 6/22/2006, Register 179

2 AAC 35.225 Date of end of payment of survivor benefits under the defined contribution plan to dependent children {#sec-2-aac-35.225 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.225}

Survivor benefits under AS 39.35.890(k) and AS 39.35.892 that are being paid to a dependent child of a member of the defined contribution plan (AS 39.35.700 - 39.35.990) shall terminate on the last day of the month in which the dependent child ceases to be a dependent child as defined in AS 39.35.990. If a survivor who has ceased to be a dependent child subsequently becomes a dependent child again as defined in AS 39.35.990, survivor benefits to that person shall resume.

History

Authority: AS 39.35.003; AS 39.35.890; AS 39.35.892
Eff. 6/22/2006, Register 179

2 AAC 35.226 Date of termination of employer contributions to the individual account of a deceased member of the defined contribution plan {#sec-2-aac-35.226 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.226}

Repealed.

History

Eff. 6/22/2006, Register 179; repealed 1/13/2010, Register 193

2 AAC 35.227 Bona fide termination of employment {#sec-2-aac-35.227 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.227}

(a) For purposes of this chapter, at retirement, a member's termination from employment is considered valid only if there is no prearrangement between the member and the employer for continued employment in any capacity after the retirement effective date. If any prearrangement to return to work with the same employer exists before retirement, the member will be deemed to not have a bona fide termination of employment and the member's retirement shall be void.

(b) Unless (f) of this section applies, for purposes of a bona fide termination of employment, the following breaks-in-service requirements shall apply:

(1) a member under age 62 at the time of retirement cannot return to employment in any capacity with the same employer until six months have elapsed from the date of retirement;

(2) a member age 62 or older cannot return to employment with the same employer until 60 days have elapsed from the date of retirement.

(c) If a retired member under age 59 1/2 returns to employment with the same employer with less than a six-month break in service, benefit payments shall not be made during the period of reemployment. All benefit payments received before the date of cessation of payments and occurring while the member was under age 59 1/2 will be coded, under Internal Revenue Service requirements, as an early distribution (no known exception) for tax purposes unless another known exception exists. Upon the member's subsequent termination from employment, a member's entitlement to benefit payments will commence the day after the date of the termination. The member will again be required to establish a bona fide termination in accordance with (b) of this section before reemploying again with the same employer.

(d) If a retired member over age 59 1/2, but less than age 62, returns to employment with the same employer with less than a six-month break in service, benefit payments shall not be made during the period of reemployment. Upon the member's subsequent termination from employment a member's entitlement to benefit payments will commence the day after the date of the termination. The member will again be required to establish a bona fide termination in accordance with (b) of this section before reemploying again with the same employer.

(e) If a retired member age 62 or older returns to employment with the same employer with less than a 60-day break in service, benefit payments shall not be made during the period of reemployment. Upon the member's subsequent termination from employment, a member's entitlement to benefit payments will commence the day after the date of the termination. The member will again be required to establish a bona fide termination in accordance with (b) of this section before reemploying again with the same employer.

(f) Regardless of age, retired members who have a prearrangement for reemployment in existence with the same employer before the member's retirement will be deemed to not have a valid termination from employment and shall be ineligible for retirement benefits during the period of reemployment. The member will be required to repay to the plan all retirement and health benefits received from the plan plus applicable interest. Interest will be at the plan rate and is effective as of the date of the member's appointment to retirement. Any amounts not repaid to the plan shall continue to accrue interest and shall be subject to collection from the member's retirement benefit. Based upon the voided retirement, during the continued employment, the member will be treated as having not retired for purposes of benefit accrual and shall be subject to all plan provisions for active members.

(g) For purposes of this section, "bona fide termination of employment" shall have the same meaning as "severance of service date" under 26 C.F.R. 1.410(a)-7(b)(2) or as amended.

History

Authority: AS 39.35.003; AS 39.35.150; AS 39.35.678 AS 39.35.115; AS 39.35.370; AS 39.35.810
Eff. 12/22/2017, Register 225

2 AAC 35.228 Compensation {#sec-2-aac-35.228 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.228}

Except as may be expressly authorized by AS 39.35.680(9) and AS 39.35.990(7), "remuneration"

(1) means only the salary paid to an employee for standard services rendered;

(2) does not include bonuses paid for retirement incentives, or additional pay outside the standard salary schedule for an employee who agrees to retire if the additional pay is granted within 18 months before the employee's appointment to retirement.

History

Authority: AS 39.35.003; AS 39.35.680; AS 39.35.990
Eff. 1/13/2010, Register 193

2 AAC 35.229 Calculation of employer contributions {#sec-2-aac-35.229 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.229}

(a) The administrator shall determine the greater of the total base salaries required for calculation of employer contributions as the base salaries paid by the employer to active employees of the system, or the base salaries paid by the employer to employees who were active members of the system during the corresponding payroll period for the fiscal year ending June 30, 2008 on an annual basis.

(b) To make the determination under (a) of this section, total base salaries paid by the employer to active employees of the system will be adjusted to include salaries of positions terminated on or after July 1, 2008 for an employer that has terminated coverage of a department, group, or other classification of employees under AS 39.35.615. The adjustment will occur in the fiscal year of termination and in subsequent fiscal years.

(c) For purposes of AS 39.35.255(a)(1), payroll adjustments required by AS 39.35.520 and submitted by an employer will be applied in the fiscal year in which they were received.

History

Authority: AS 39.35.003; AS 39.35.615; AS 39.35.625 AS 39.35.255; AS 39.35.620
Eff. 7/7/2011, Register 199

2 AAC 35.230 Defined benefit and defined contribution employee eligibility for medical benefits after employer termination {#sec-2-aac-35.230 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.230}

(a) A non-vested defined benefit employee of an employer terminating participation under AS 39.35.620 who has elected to be fully vested is eligible for retirement benefits under AS 39.35.370 regardless of the requirement for at least five years of credited service. An employee who first entered the plan on or after July 1, 1996 is not vested in medical benefits under AS 39.35.535 unless the member has 10 years of credited service.

(b) A non-vested defined contribution employee of an employer terminating participation under AS 39.35.958 is considered fully vested in the employer contributions under AS 39.35.790 and in the employee contributions under AS 39.35.730. The employee is not vested in medical benefits under AS 39.35.880 or the health reimbursement arrangement under AS 39.30.390.

(c) A vested defined contribution employee of an employer terminating participation under AS 39.35.958 is not vested in medical benefits under AS 39.35.880 or the health reimbursement arrangement under AS 39.30.390 unless the employee meets the eligibility requirements of AS 39.35.870.

History

Authority: AS 39.30.390; AS 39.35.535; AS 39.35.870 AS 39.35.003; AS 39.35.620; AS 39.35.880
Eff. 1/13/2010, Register 193

2 AAC 35.231 Forms of distribution under the defined contribution plan {#sec-2-aac-35.231 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.231}

In addition to distribution options under AS 39.35.820(a), a participant may elect to receive the participant's share of the individual account in a periodic payment paid monthly, quarterly, semi-annually, or annually which allows the participant to receive benefit payments out of their accounts while staying invested in the current fund offerings provided by the plan. A participant may select from the following payment schedules:

(1) a period certain where the participant selects length of time to receive funds;

(2) a minimum distribution option where the amounts paid will be recalculated annually and paid at the minimum distribution level; or

(3) a payment certain where the participant selects amount to be paid out and continue until funds are depleted.

All distributions of benefits must be made in accordance with Internal Revenue Code provisions, which shall override any distribution options inconsistent with such provisions. Any distribution, if applicable, will be subject to the withholding of taxes which will be remitted to the Internal Revenue Service.

History

Authority: AS 39.35.004; AS 39.35.005; AS 39.35.820
Eff. 4/28/2019, Register 230

2 AAC 35.235 Calculation of termination costs {#sec-2-aac-35.235 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.235}

(a) An employer that proposes to terminate coverage of a department, group, or other classification of employees under AS 39.35.615 or 39.35.957, or terminate participation of the employer under AS 39.35.620 or 39.35.958, must have a termination study completed by the plan actuary to determine the actuarial cost to the employer for future benefits due employees whose coverage is terminated. The employer shall pay the termination costs determined by the study either in a lump sum or under a payment plan acceptable to the administrator. The employer shall pay the cost of the study.

(b) In addition to the costs calculated in (a) of this section, an employer that proposes to terminate coverage of a department, group, or other classification of employees under AS 39.35.615 or 39.35.957. or termination of participation of the employer under AS 39.35.620 or 39.35.958, is required to pay to the plan until the past service liability of the plan is extinguished an amount calculated by applying the current past service rate adopted by the board to salaries of the terminated employees as required by AS 39.35.625(a). This payment shall be made each payroll period or the employer may enter into a payment plan acceptable to the administrator for each fiscal year.

(c) Interest as provided under AS 39.35.610(a) is applied to the termination costs if an employer defaults in the payments under (a) or (b) of this section.

History

Authority: AS 39.35.003; AS 39.35.620; AS 39.35.957 AS 39.35.615; AS 39.35.625; AS 39.35.958
Eff. 1/13/2010, Register 193

2 AAC 35.237 Valid beneficiary designations in the defined benefit and defined contribution plan {#sec-2-aac-35.237 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.237}

A designation of beneficiary, a change or revocation of a beneficiary, or a consent to a revocation of a beneficiary must be made on a form provided by the administrator and filed with the plan administrator or the administrator's designee. The administrator's designee is the entity with which the administrator has a contract for beneficiary recordkeeping at the time of filing.

History

Authority: AS 39.35.003; AS 39.35.490; AS 39.35.850
Eff. 1/13/2010, Register 193

2 AAC 35.238 Defined contribution plan qualified domestic relations orders (QDROs) {#sec-2-aac-35.238 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.238}

(a) After a member covered under AS 39.35.700 - 39.35.900 is divorced or the member's marriage is dissolved, the member's former spouse has no individual rights or entitlements to benefits from the system, but may, under a qualified domestic relations order, establish a separate interest in the vested contributions attributed to the member. To be valid and enforced by the administrator, a qualified domestic relations order must conform to both the requirements of AS 39.35 and the requirements of the United States Internal Revenue Code that the system must comply with in order to maintain its federal tax-qualified status.

(b) An alternate payee

(1) may only be the former spouse of a member who has been named by an order of a court of competent jurisdiction to receive all or a portion of the member's vested contribution account;

(2) will have a separate account established wherein the vested contributions of the member plus or minus the earnings on those contributions will be deposited according to the court's directive in a qualified domestic relations order (QDRO);

(3) may elect to receive funds from the newly established account, leave the money in the account and manage it in the same manner as active or deferred participants, or elect to receive the funds under one of several disbursement options under AS 39.35.820.

(c) The administrator shall review all domestic relations orders that the administrator receives, and shall reject a domestic relations order that does not meet the requirements of AS 39.35 or this chapter. A qualified domestic relations order is effective upon acceptance by the administrator. The administrator will accept only a domestic relations order that is prospective. The administrator requires a domestic relations order to, at the minimum, contain the following:

(1) the federal regulatory reference authorizing the QDRO;

(2) the name and address of the plan being attached;

(3) the participant's name, address, social security number, and date of birth;

(4) the alternate payee's name, address, social security number, and date of birth;

(5) the date of the marriage, the date of separation if applicable, and the date of the divorce or dissolution;

(6) the amount, formula, or percentage the alternate payee is to receive;

(7) a statement to the effect the alternate payee has the independent right to name beneficiaries to the alternative payee's portion of the account;

(8) a statement acknowledging additional contributions cannot be made by the alternate payee;

(9) a provision assigning the taxability of benefits to the person receiving funds;

(10) a declaration the QDRO does not require the plan to pay benefits not authorized by statute or plan document;

(11) an assurance that both parties will keep a current address on file with the administrator;

(12) a recognition the court has the authority to amend the order at a later date.

(d) Remarriage of the alternate payee does not in any way reduce or eliminate the alternate payee's entitlement to benefits under AS 39.35 or this chapter.

(e) Unless stated otherwise in the qualified domestic relations order, the administrator will transfer to the alternate payee account the amount representing the portion of the vested contributions attributable to the alternate payee on the date of divorce or dissolution, including any change in value that may have occurred between that date and the date of fund transfer.

(f) A qualified domestic relations order affecting disability benefits under AS 39.35.890 shall be accepted by the administrator only after the member has been appointed to disability.

History

Authority: AS 39.35.003; AS 39.35.860; AS 39.35.890
Eff. 1/13/2010, Register 193

Article 3 Benefits Under the Defined Benefit Plan (AS 39.35.095 – 39.35.680)

2 AAC 35.240 Alaska cost-of-living allowance {#sec-2-aac-35.240 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.240}

(a) The Alaska cost-of-living allowance established under AS 39.35.480 accrues from the first day of the month after written application from the member, on a form prescribed by the administrator, is either hand delivered to the division of retirement and benefits, or is mailed to the division of retirement and benefits and postmarked from within Alaska. If a mailed application has a postmark on which the date is missing or illegible, the postmark day is rebuttably presumed to be five working days before the day the application is received by the division.

(b) Except as otherwise provided by AS 39.35.480, a member must be domiciled and physically present in Alaska to receive a cost-of-living allowance under AS 39.35.480.

(1) maintains his or her principal place of residence in the state of Alaska;

(2) demonstrates at all times during an absence an intent to return to Alaska and remain a resident of Alaska; and

(3) does not claim residency outside the state or obtain benefits of residency in another state or nation.

(d) The administrator's determination of an applicant's residency will be based on the totality of relevant circumstances. Intent is demonstrated by establishing and maintaining customary ties indicative of Alaska residency. Acts that are required by law or contract or that are routinely performed by temporary residents of the state are not sufficient to demonstrate residency. The burden is on the applicant or recipient to provide the administrator with documentation or other information necessary to support eligibility for the Alaska cost-of-living allowance. The following may be used as evidence of domicile:

(1) the applicant's written or oral statements at the time in question, including statements made to obtain a license to drive, fish, hunt, or engage in another activity regulated by a governmental entity;

(2) the affidavits of other persons who had reason to know of the applicant's intent;

(3) voter registration and voting records;

(4) proof of a substantial ownership or leasehold interest in applicant's residence in Alaska;

(5) proof such as the presence of household goods owned by applicant, that the residence referred to in (4) of this subsection is inhabited by and used as a primary residence by applicant;

(6) an Alaskan telephone listing in the applicant's or the applicant's spouse's name;

(7) the duration of continuous residence in the state;

(8) employment and unemployment records;

(9) permanent fund dividend or longevity bonus records;

(10) travel records;

(11) other information that the applicant deems relevant.

(e) In the event a recipient's eligibility for the Alaska cost-of-living allowance is in question, the division will notify the recipient by certified mail that evidence of domicile is required. The recipient must provide evidence as outlined in (d) of this section within 30 days of receipt of the division's notice. Failure of the recipient to provide evidence of domicile by either hand delivering or mailing evidence, which must be received or postmarked within 30 days after the recipient's receipt of the division's notice, will result in the removal of the Alaska cost-of-living allowance.

(f) Upon receipt of evidence confirming that the recipient satisfies the requirements under (a) - (d) of this section, the Alaska cost-of-living allowance will be reinstated retroactively to the date it was removed, if the recipient has not been out of state for a continuous period that exceeds 90 days from the date of the recipient's departure.

History

Authority: AS 39.35.003; AS 39.35.480

2 AAC 35.250 Designation of beneficiary under joint and survivor option {#sec-2-aac-35.250 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.250}

An employee who elects to designate a spouse or dependent as contingent beneficiary may not change that designation after the date of appointment to retirement unless the employee makes written application and receives approval in writing from the administrator.

History

Authority: AS 39.35.003; AS 39.35.450

2 AAC 35.253 Waiver of survivor benefit by a spouse in favor of another dependent {#sec-2-aac-35.253 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.253}

The only dependent other than a spouse whom the administrator will approve as a contingent beneficiary for a joint and survivor benefit under AS 39.35.450(a) is a disabled child of the employee who is principally dependent upon the employee for support and who is totally and presumably permanently disabled. An employee who wishes to name a disabled child as the employee's beneficiary under AS 39.35.450(a) must file an application on a form provided by the administrator requesting the administrator's approval of the appointment of beneficiary.

History

Authority: AS 39.35.003; AS 39.35.450; AS 39.35.680
Eff. 2/13/2004, Register 172; readopt 7/20/2006, Register 179

2 AAC 35.255 Revokes a revocable disposition {#sec-2-aac-35.255 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.255}

For purposes of AS 39.35.490(a) and in accordance with AS 13.12.804(a)(1)(A), a divorce, a dissolution of a marriage, or an annulment of a marriage revokes a revocable disposition or appointment of property. If a member designates a spouse as a beneficiary and is subsequently divorced or a dissolution or annulment of marriage is granted, the beneficiary designation is void unless the member, in writing after the divorce, dissolution, or annulment, specifically reaffirms the former spouse as a beneficiary.

History

Authority: AS 39.35.003; AS 39.35.490
Eff. 1/7/2001, Register 159; readopt 7/20/2006, Register 179

2 AAC 35.260 Eligibility for benefits {#sec-2-aac-35.260 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.260}

To be eligible for retirement benefits under AS 39.35.370(a)(1) and (b), nonoccupational disability benefits under AS 39.35.400(a) and nonoccupational death benefits under AS 39.35.420(b), an employee must have at least five years of credited service for which no indebtedness is owed at the time of retirement, disability, or death. An employee retiring under AS 39.35.370(a)(2) or (3) must have 20 years of credited service and 30 years of credited service, respectively, for which no indebtedness is owed at the time of retirement, unless the employee claims credited service as a peace officer under AS 39.35.370(g) or (h). To be eligible for retirement benefits under AS 39.35.385(f), an employee must have at least 60 days of credited service in each of five legislative sessions for which no indebtedness exists at the time of retirement.

History

Authority: AS 39.35.003; AS 39.35.385; AS 39.35.420 AS 39.35.370; AS 39.35.400

2 AAC 35.270 Verification of benefits for earlier federal service {#sec-2-aac-35.270 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.270}

A member who has been credited with service under AS 39.35.360 may be required to provide the administrator with proof of the benefit amount the member is receiving from the United States Government for that same period of service, or proof that the member is not entitled to receive a benefit from the United States Government for that same period of service. The administrator may require a member credited with earlier federal service under AS 39.35.360 to submit proof under this section before appointment to retirement and once a year after appointment to retirement.

History

Authority: AS 39.35.003; AS 39.35.360

2 AAC 35.275 Benefit adjustments {#sec-2-aac-35.275 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.275}

(a) A benefit overpayment other than one described in AS 39.35.520(b) or waived under AS 39.35.522 must be recovered by applying a lifetime actuarial reduction to the benefit recipient's future monthly benefits, unless the benefit recipient elects to pay the overpayment in a lump sum.

(b) A benefit underpayment must be paid to the recipient

(1) by applying a lifetime actuarial increase to the recipient's future monthly benefits if the underpayment exceeds $3,500, unless the recipient elects to receive a lump sum payment; or

(2) by lump sum if the underpayment is $3,500 or less.

(c) The division will notify the recipient by certified mail of the overpayment or underpayment amount. The recipient must irrevocably elect a payment option under (a) or (b)(1) of this section within 90 days after receipt of the division's notice. Failure of the recipient to notify the division of a payment option election and to pay the lump sum overpayment, if applicable, by either hand delivering or mailing written notification and payment, which must be received or postmarked within 90 days after the recipient's receipt of the division's notice, will result in a lifetime actuarial reduction or increase to the recipient's monthly benefit.

(d) The lifetime actuarial monthly benefit reduction or increase is calculated by multiplying the amount of the overpayment or underpayment, including interest if applicable, by the appropriate actuarial factor for the recipient's age at the time of the adjustment. The most advantageous table of factors adopted during the member's PERS employment will be used to calculate the actuarial reduction or increase to the recipient's future monthly benefits.

(e) The administrator will require a member or beneficiary to submit evidence to support the claim of hardship, including a copy of the member's or beneficiary's most recent federal tax return if the member or beneficiary requests a waiver of overpayment under AS 39.35.522(a)(1) because of undue hardship. If the member or beneficiary is married and files a tax return separate from the member's beneficiary's spouse, copies of the spouse's tax return may also be required.

(f) An actuarial adjustment to benefits that have been corrected due to an error or change in the record ceases on the first of the month following the date the member dies. If the member dies on the first of a month, the actuarial adjustment ceases on the date of the member's death. Survivor benefits calculated under AS 39.35.440 or 39.35.450 do not include the actuarial adjustment.

History

Authority: AS 39.35.003; AS 39.35.520; AS 39.35.522
Eff. 12/9/85, Register 99; am 3/2/88, Register 108; am 2/13/2004, Register 172; readopt 7/20/2006, Register 179; am 1/13/2010, Register 193

2 AAC 35.280 Benefits for service under more than one membership category {#sec-2-aac-35.280 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.280}

Benefits and credited service accrue on the basis of the employee's occupational category. If an employee has credited service both as a peace officer or fireman and as an elected official or regular employee, the portion of that employee's benefit attributable to each category of service will be calculated separately under the benefit provision applicable to each occupational category. Average monthly compensation will be determined once to apply to all categories of service in accordance with AS 39.35.680.

History

Authority: AS 39.35.003; AS 39.35.370

2 AAC 35.285 Actuarial cost of public service benefit {#sec-2-aac-35.285 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.285}

For the purpose of calculating the actuarial cost of a public service benefit, interest earned on contributions and indebtedness payments means total investment returns as reported by the plan's financial statements in each relevant annual financial report of the system.

History

Authority: AS 39.35.003; AS 39.35.375
Eff. 1/7/2001, Register 159; readopt 7/20/2006, Register 179

2 AAC 35.290 Application for disability benefits {#sec-2-aac-35.290 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.290}

(a) The administrator shall determine eligibility for disability benefits under AS 39.35. The administrator may require the employee to provide additional information and to submit to an examination by one or more physicians of the administrator's choosing at the division's expense.

(b) An employee may apply to the administrator for a determination of eligibility for disability benefits before employment is terminated. A determination by the administrator finding disability is void if the employee fails to terminate employment within 30 days of the date of the determination.

(c) When a determination is made under this section before termination, notice of the determination will be mailed to the employee's employer.

(d) A person who fails to file an application for disability benefits within the time established by this section forfeits the right to apply, unless the person demonstrates to the administrator that there are extraordinary circumstances that prevented the person from meeting the deadline. Extraordinary circumstances may include being adjudged as incompetent or confined to a hospital, but do not include lack of information or mere neglect.

History

Authority: AS 39.35.003; AS 39.35.410 AS 39.35.400; AS 39.35.680
Eff. 3/28/84, Register 93; am 1/7/2001, Register 159; am 2/13/2004, Register 172; readopt 7/20/2006, Register 179

2 AAC 35.291 Recovers from disability {#sec-2-aac-35.291 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.291}

(a) Occupational disability benefits cease when a member recovers from an injury or illness. Proof of such recovery may include, among other things, medical evidence or proof of capability to work in a comparable position offered to the member by an employer as defined in AS 39.35.680. A "comparable position" may include a position that requires similar strengths and abilities to the position held by the member at the time of termination of employment or a position that provides compensation of 75 percent or more of the salary used to calculate the member's Public Employees' Retirement System of Alaska (PERS) occupational disability benefit, adjusted for inflation. The adjustment for inflation is effective July 1 of each year and is the percentage increase in the consumer price index for urban wage earners and clerical workers for Anchorage, Alaska during the previous calendar year as determined by the United States Department of Labor, Bureau of Labor Statistics.

(b) Nonoccupational disability benefits cease when a member recovers from an injury or illness or is capable of working in any full-time position.

(c) The administrator may, in the administrator's discretion, require a member to submit evidence of the member's recovery to work, including a copy of the member's most recent federal tax return to determine if a member receiving nonoccupational disability benefits has returned to work or a member receiving occupational disability benefits has returned to work and is earning wages comparable to the gross monthly compensation used to calculate the member's occupational disability benefit.

History

Authority: AS 39.35.003; AS 39.35.410 AS 39.35.400; AS 39.35.890
Eff. 1/7/2001, Register 159; am 2/13/2004, Register 172; am/readopt 7/20/2006, Register 179

2 AAC 35.293 Reaches normal retirement age {#sec-2-aac-35.293 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.293}

Repealed.

History

Eff. 1/7/2001, Register 159; repealed 7/20/2006, Register 179

2 AAC 35.295 Application for retirement {#sec-2-aac-35.295 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.295}

(a) It is the responsibility of the member to make application for retirement in writing on a form prescribed by the administrator. The effective date of application is the day the application is received by the division; or, if mailed, the day the application is postmarked. A member requesting appointment to retirement should apply 30 days before the requested retirement date.

(b) Repealed 7/20/2006.

History

Authority: AS 39.35.003; AS 39.35.370; AS 39.35.385

2 AAC 35.296 Compliance with the Internal Revenue Code {#sec-2-aac-35.296 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.296}

(a) Pursuant to AS 39.35.115, and for purposes of compliance with the Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations, the Public Employees' Retirement System Tiers 1, 2, and 3 Defined Benefit Plan under AS 39.35.095 - 39.35.680 adopts by reference, as part of the governing Plan document, the Retirement System IRS Compliance Policy dated August 2015, as amended from time to time.

History

Authority: AS 39.35.003; AS 39.35.005; AS 39.35.115
Eff. 9/24/2015, Register 216

2 AAC 35.297 Application for retirement incentive program {#sec-2-aac-35.297 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.297}

Repealed.

History

Eff. 11/16/90, Register 118; repealed 1/7/2001, Register 159

2 AAC 35.300 Refunds of payments applied toward indebtedness {#sec-2-aac-35.300 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.300}

When computing a retirement benefit for a member who has an outstanding indebtedness balance, if the division of retirement and benefits determines that the adjusted retirement benefit using the credited service gained from establishing the indebtedness is less than the benefit would have been had the additional service not been claimed, the division shall refund all indebtedness payments, plus accrued interest, upon payment of benefits only.

History

Authority: AS 39.35.003; AS 39.35.200
Eff. 12/3/84, Register 93; readopt 7/20/2006, Register 179

2 AAC 35.310 Post-retirement pension adjustments {#sec-2-aac-35.310 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.310}

(a) Repealed 7/20/2006.

(b) The amount of the post-retirement pension adjustment will be calculated under AS 39.35.475 for each full year in which benefits have been received, and a proportionately reduced amount calculated for each partial year depending on the number of months in which benefits have been received.

(c) A retired employee who first joined the system before July 1, 1986 and who is eligible for a PRPA under AS 39.35.475 will receive either the PRPA calculated under the current version of AS 39.35.475 or the adjustment calculated under the version of AS 39.35.475 in effect before July 1, 1986, whichever is greater.

History

Authority: AS 39.35.003; AS 39.35.475

2 AAC 35.313 Determination of PRPA eligibility after disability or death {#sec-2-aac-35.313 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.313}

(a) The number of years and partial years a member has spent as a disability benefit recipient will be included when determining eligibility for benefit increases under AS 39.35.475 for a member previously receiving a disability benefit whose benefit has been converted to a normal retirement benefit.

(b) When determining eligibility for PRPA increases for a person receiving survivor benefits, the age that the member would have attained had they lived and the total number of years both the member and the survivor have received benefits under this system will be included.

History

Authority: AS 39.35.040; AS 39.35.042; AS 39.35.475
Eff. 2/13/2004, Register 172

2 AAC 35.315 Level income option {#sec-2-aac-35.315 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.315}

A retirement benefit adjustment at age 65 for a member who has selected the level income option applies to post-retirement pension adjustments (PRPA) and the Alaska cost-of-living allowance (COLA). Except as provided in 2 AAC 35.320, the COLA percentage and the percentage of PRPAs accrued at the time of the adjustment are applied to the after age 65 base retirement benefit to determine the adjusted COLA and PRPA amounts.

History

Authority: AS 39.35.040; AS 39.35.042; AS 39.35.460
Eff. 2/23/2001, Register 159

2 AAC 35.320 Calculation of retirement benefits after reemployment {#sec-2-aac-35.320 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.320}

(a) Upon subsequent retirement after a period of reemployment in a PERS covered position, retirement benefits are recalculated under this section for those members who were first enrolled in PERS before July 1, 1977. The recalculation shall combine all periods of employment, and shall use the average of the highest three consecutive year's earnings over the member's entire career. The appropriate percentage specified under AS 39.35.370(c) are applied to the member's entire credited service for the calculation of the subsequent retirement benefit amount.

(b) The subsequent retirement benefit becomes effective under AS 39.35.370(e), and the effective date of a subsequent retirement benefit supercedes former retirement effective dates.

(c) On subsequent retirement after a period of reemployment, a member may elect any of the retirement options for which the member qualifies. All future benefits are paid based on that option regardless of the benefit option initially elected on previous retirement segments.

(d) A member who was receiving a reduced early retirement benefit is indebted to the system for benefits received from the date of early retirement through the date of reemployment or through the end of the month in which the member becomes 55 years of age whichever is sooner. The member's base benefit as calculated under AS 39.35.370 will be actuarially reduced before calculation of final benefits under AS 39.35.450 or former AS 39.35.460.

(e) If the member had previously selected a level income option (LIO),

(1) for members who returned to work before age 65, an actuarial adjustment shall be made to reduce future benefits paid; the adjustment is the difference of the amount that was paid under the LIO and the amount that would have been paid had the member elected a normal or early retirement benefit;

(2) for members who returned to work after age 65, an actuarial adjustment shall be made to adjust future benefits paid; the adjustment is based on the difference of (X) the amount that was paid before age 65 under the LIO less the amount that would have been paid had the member elected a normal or early retirement benefit and (Y) the amount the member would have been paid from age 65 to the date of reemployment if the member elected a normal or early benefit less the amount the member received during that time.

(f) Interest from the date of the previous retirement through the end of the month preceding the subsequent retirement is added to any indebtedness owed at the time of the previous retirement. Former retirees may make payments on indebtedness before the subsequent retirement effective date or may elect to have the indebtedness cancelled by accepting an actuarially reduced benefit.

(g) PRPA monetary amounts awarded during one or more previous retirement segments are reinstated upon subsequent retirement. The percentages previously granted will not be applied to the new base benefit amount. The subsequent retirement date becomes the beginning date for future PRPAs.

(h) The Alaska cost-of-living allowance (COLA) is based on the recalculated base benefit.

History

Authority: AS 39.35.003; AS 39.35.450Former AS 39.35.460 AS 39.35.370
Eff. 2/23/2001, Register 159; readopt 7/20/2006, Register 179; am 1/13/2010, Register 193

2 AAC 35.321 Calculation of early and LIO retirement benefits after reemployment {#sec-2-aac-35.321 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.321}

(a) If a member has elected either a reduced early retirement benefit or a level income option (LIO) and then returns to work in a PERS designated position, retirement benefits are suspended during the period of reemployment, and recalculated upon subsequent retirement under to this section.

(b) Effective the first day following termination of the period of reemployment, the initial benefit is reinstated with the same options and in the same amount as immediately preceding its suspension; and an adjustment will be made to the initial retirement benefit to reimburse the retiree for the portion of benefits missed during the period of reemployment. The adjustments are retroactive to the effective date of the subsequent retirement benefit under AS 39.35.370(c), and an additional benefit is calculated based on the option elected for the new segment, the supplementary credited service during the period of reemployment, the earnings during the period of reemployment, and the appropriate percentage specified by AS 39.35.370(e).

(c) For members who elected an early retirement benefit, the total adjustment for benefits missed during the period of reemployment equals the difference between the early base benefit that the member was receiving before returning to work and the normal benefit that the member would have received had the member been eligible for normal benefits. The total adjustment will then be actuarially prorated and distributed to the member monthly.

(d) For members who elected a LIO, the total adjustment for benefits missed during the period of reemployment equals the difference between the LIO base benefit that the member was receiving before returning to work and the normal benefit that the member would have received had the member elected the normal option. The total adjustment amount will then be actuarially prorated and distributed to the member monthly. This adjustment does not apply if the member is age 65 or older on returning to work.

History

Authority: AS 39.35.003; AS 39.35.150
Eff. 2/23/2001, Register 159; readopt 7/20/2006, Register 179

2 AAC 35.322 Reemployed retired employee coverage {#sec-2-aac-35.322 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.322}

Repealed.

History

Eff. 7/2/2001, Register 167; readopt 7/20/2006, Register 179; repealed 1/13/2010, Register 193

2 AAC 35.325 Defined benefit plan qualified domestic relations orders (QDRO's) {#sec-2-aac-35.325 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.325}

(a) After a member covered under AS 39.35.095 - 39.35.680 is divorced or the member's marriage is dissolved, the member's former spouse has no individual rights or entitlements to benefits from the system, but may, under a qualified domestic relations order, share in the stream of benefit payments paid to the member. To be valid and enforced by the administrator, a qualified domestic relations order must conform to both the requirements of AS 39.35 and the requirements of the United States Internal Revenue Code that the system must comply with in order to maintain its federal tax-qualified status.

(b) An alternate payee

(1) may only be the former spouse of a member who has been named by an order of a court of competent jurisdiction to receive all or a portion of the member's retirement benefit;

(2) may not elect benefit options, but may only share in benefit options elected by the member;

(3) may not name survivors or beneficiaries to the alternate payee's portion of the member's benefit;

(4) will not be provided medical or insurance benefits at the system's expense but may purchase coverage from the system at the full calculated cost to the system; the alternate payee must elect to purchase the coverage within 60 days after appointment to benefits.

(c) The administrator shall review all domestic relations orders that the administrator receives, and shall reject a domestic relations order that does not meet the requirements of AS 39.35 or this chapter. A qualified domestic relations order that is accepted by the administrator is effective on the first day of the month following the month in which the order is accepted, or on the date of retirement, whichever is later. The administrator will accept only a domestic relations order that is prospective. The administrator will reject an order that

(1) purports to have a retroactive effective date;

(2) orders payment of the alternate payee's benefits to someone other than the member upon the death of the alternate payee;

(3) orders payment of benefits to an alternate payee, other than survivor benefits, after the death of the member.

(d) The administrator will approve a domestic relations order that orders payment of a monthly benefit to an alternate payee only if the alternate payee's portion of the member's monthly stream of benefit payments is expressed as a set monthly dollar amount, as a percentage of the monthly benefit payment, or as a monthly formula based on a defined period of time divided by the member's total years of credited service.

(e) Unless a qualified domestic relations order specifically states otherwise, the administrator will follow the following rules in implementing qualified domestic relations orders:

(1) no death or survivor benefits shall be paid to the alternate payee if the member dies before retirement;

(2) a member may not elect a survivor option at the time of retirement naming an alternate payee as a beneficiary;

(3) if a survivor option must be elected by the member at the time of retirement, and the member does not, and is not required to, elect a specific option, the member shall be deemed to have elected the 50 percent joint and survivor option under AS 39.35.450(a)(2);

(4) any Alaska cost-of-living allowance that is payable under AS 39.35.480 and all post-retirement pension adjustments under the current or any former versions of AS 39.35.475 shall be divided between the member and the alternate payee in the same proportion as the base benefit is divided;

(5) the cost of providing a joint and survivor benefit for the alternate payee will be equally shared by the member and the alternate payee, regardless of the split of the benefit entitlement; in this paragraph; "the cost of providing a joint and survivor benefit" means the monthly difference between what the member's regular retirement benefit would be, without the actuarial reduction for a joint and survivor benefit and the member's actual benefit, after the actuarial reduction necessitated by the joint and survivor option;

(6) the average monthly compensation determined using a member's entire career will be used to calculate the alternate payee's entitlement, whether or not the member and the alternate payee were married during the entire time;

(7) remarriage of the alternate payee does not in any way reduce or eliminate the alternate payee's entitlement to benefits.

(f) If a member divorces after the member has retired or if a member's marriage is dissolved after the member has retired,

(1) the benefit selections made by the member at the time of retirement remain in force;

(2) the member's spouse at the time of retirement will retain sole rights to survivor benefits after the member's death if a survivor option was elected at retirement, except to the extent that a qualified domestic relations order approved before the member's retirement requires payment of survivor benefits to an alternate payee; and

(3) the administrator will not accept a domestic relations order that purports to alter the benefit selections made by the member at the time of retirement.

(g) A lump sum payment to an alternate payee under a qualified domestic relations order may be made only if the member elects a full withdrawal from membership in the Public Employees' Retirement System. Lump sum entitlements in a qualified domestic relations order must be stated either as a specific dollar amount or as a specific percentage of the member's contribution account.

(h) A qualified domestic relations order affecting disability benefits under AS 39.35.400 and AS 39.35.410 shall be accepted by the administrator only after the member has been appointed to disability.

History

Authority: AS 39.35.003; AS 39.35.480; AS 39.35.680 AS 39.35.455; AS 39.35.500
Eff. 2/13/2004, Register 172; readopt 7/20/2006, Register 179; am 1/13/2010, Register 193

2 AAC 35.329 Actuarial adjustment factor basis {#sec-2-aac-35.329 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.329}

(a) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1973 through June 30, 1975 are

(1) for the 50 percent or 75 percent joint and survivor option, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with

(A) annual interest rates for female members age 50 and a male spouse age 48, through female member age 60 with a male spouse age 62, that varies from 1.43 percent through 0.00 percent, respectively, with varying rates in between for other ages; or

(B) annual interest rates for male members age 50 and a female spouse age 48, through male member age 60 with a female spouse age 62, varies from 4.14 percent through 4.19 percent respectively, with varying rates in between for other ages;

(2) for the 66 2/3 last survivor option,

(A) a factor set for male members with a female spouse using

(i) the 1971 Group Annuity Mortality Table, GA71M for male members and GA71F for female spouses; and

(ii) annual interest rates for male members age 50 with a female spouse age 48, through male member age 60 with a female spouse age 62, that varies from 4.67 percent through 5.34 percent respectively, with varying rates in between for other ages;

(B) a factor set for female members with a male spouse using

(i) the 1971 Group Annuity Mortality Table, GA71F set back six years for female members and GA71M setback four years for male spouses; and

(ii) annual interest rates for female members age 50 with a male spouse age 48, through female member age 60 with a male spouse age 62, that varies from 4.53 percent through 0.00 percent, respectively, with varying rates in between for other ages;

(3) for the level income option, a factor set using separate male and female rates from the 1951 Group Annuity Mortality Table, table GA51M for males and table GA51F for females, with an annual interest rate of 3.7 percent;

(4) for an indebtedness amount owed, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with an annual interest rate of 7.0 percent;

(5) for an early retirement benefit,

(A) a factor set for male members using the 1971 Group Annuity Mortality Table, table GA71M, with an annual interest rate for a whole age of 50 through 54 at 4. 7 percent;

(B) a factor set for female members using the 1971 Group Annuity Mortality Table, table GA71F, with an annual interest rate for a whole age of 50 through 54 that varies from 4.47 percent to 4.49 percent, respectively.

(b) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1975 through August 31, 1978 are

(2) for the 66 2/3 percent last survivor option,

(A) a factor set for male members with a female spouse using

(i) the 1971 Group Annuity Mortality Table, GA71M for male members and GA71F for female spouses; and

(B) a factor set for female members with a male spouse using

(i) the 1971 Group Annuity Mortality Table, GA71F set back six years for female members and GA71M setback four years for male spouses; and

(5) for an early retirement benefit, a factor that reduces the normal retirement amount by 0.5 percent per month for each month that the retirement precedes the normal retirement age.

(c) The basis of the assumptions for the reduced benefit actuarial adjustment factors from September 1, 1978 through December 31, 1980 are

(1) for the 50 percent or 75 percent joint and survivor option, a factor set using separate male and female rates from the sex-distinct 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with

(A) an annual interest rate for female members with a male spouse of 6.0 percent; or

(B) an annual interest rate for male members with a female spouse of 6.0 percent;

(2) for the 66 2/3 last survivor option, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with

(A) an annual interest rate for female members with a male spouse of 6.0 percent; or

(B) an annual interest rates for male members with a female spouse of 6.0 percent;

(3) for the level income option, a factor set using separate male and female rates from the 1971 Group Annuity Mortality Table, table GA71M for males and table GA71F for females, with an annual interest rate of 6.0 percent;

(4) for an indebtedness amount owed, a factor set using sex distinct male and female rates from the 1971 Group Annuity Mortality Table, table GA71, with an annual interest rate of 6.0 percent;

(5) for an early retirement benefit, a factor that reduces the normal retirement amount by 0.5 percent per month for each month that the retirement precedes the normal retirement age.

(d) The basis of the assumptions for the reduced benefit actuarial adjustment factors from January 1, 1981 through June 30, 1983 are

(1) for the 50 percent or 75 percent joint and survivor option, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U with an annual interest rate of 6.0 percent;

(2) for the 66 2/3 last survivor option, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, with an annual interest rate of 6.0 percent;

(3) for the level income option, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, set forward two years, with an annual interest rate of 6.0 percent;

(4) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 6.0 percent;

(5) for an early retirement benefit, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, with an annual interest rate for a member with a whole age of 50 and 54 that varies from 8.25 percent and 8.53 percent, respectively, with varying rates in between for other ages.

(e) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1983 through June 30, 1986 are

(1) for the 50 percent or 75 percent joint and survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table with, annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 8.98 percent through 9.78 percent, respectively, with varying rates in between for other ages;

(2) for the 66 2/3 last survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 9.10 percent through 10.58 percent, respectively, with varying rates in between for other ages;

(3) for the level income option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one year, with an annual interest rate of 8.0 percent;

(4) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 8.0 percent;

(5) for an early retirement benefit, a unisex factor set using a fifty percent to fifty percent blend of male and female rates from the 1971 Group Annuity Mortality Table, table GA71U, with an annual interest rate for the whole age of 50 and 54 varying from 9.98 percent and 10.24 percent, respectively, with varying rates in between for other ages.

(f) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1986 are

(1) for the 50 percent or 75 percent joint and survivor option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, with annual interest rates for a member age 50 and a spouse age 48, through member age 60 with a spouse age 62, that varies from 8.98 percent through 9.78 percent, respectively, with varying rates in between for other ages;

(3) for the level income option, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one year, with an annual interest rate of 8.0 percent;

(4) for an indebtedness amount owed, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate of 8.0 percent;

(5) for an early retirement benefit from July 1, 1986 through June 30, 1996, a unisex factor set using the 1984 UP84 Unisex Pension Mortality Table, set back one and one-half years, with an annual interest rate for the whole age of 55 and 59 varying from 7.67 percent and 7.62 percent, respectively, with varying rates in between for other ages.

(g) The basis of the assumptions for the reduced benefit actuarial adjustment factors from July 1, 1996 are for an early retirement benefit, a factor that reduces the normal retirement amount by 0.5 percent per month for each month that the retirement precedes the normal retirement age.

History

Authority: AS 39.35.003
Eff. 12/19/2003, Register 172; readopt 7/20/2006, Register 179

Article 4 Service Under the Defined Benefit Plan (AS 39.35.095 – 39.35.680)

2 AAC 35.330 Calculation of creditable service {#sec-2-aac-35.330 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.330}

(a) Service credit for permanent full-time employees is granted on the basis of one calendar day of service for each day in pay status. Regularly scheduled days off and holidays are allowed as credited service, provided that the employee was held in pay status on the regularly scheduled workdays immediately preceding and following the holiday or regularly scheduled days off.

(b) Service credit for permanent part-time employees is calculated as provided in law. In no case may a permanent part-time employee earn service credit in excess of that which may be earned by a permanent full-time employee.

History

Authority: AS 39.35.003; AS 39.35.300; AS 39.35.680

2 AAC 35.333 Service used to calculate vesting and retirement eligibility {#sec-2-aac-35.333 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.333}

Unless a provision of AS 39.35 or of this chapter otherwise provides, only service credit that is earned by an active employee under AS 39.35.300 or AS 39.35.310 and that is paid in full can be used to determine the date that an employee

(1) attains vested member status; and

(2) becomes eligible to retire under AS 39.35.370(a)(2) or (3).

History

Authority: AS 39.35.003
Eff. 2/13/2004, Register 172; readopt 7/20/2006, Register 179

2 AAC 35.335 Purchase of credited service for leave of absence due to on-the-job injury {#sec-2-aac-35.335 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.335}

Service that has been claimed by a member under AS 39.35.330(c) and 39.35.330(d) counts towards vested member status and retirement eligibility once the cost to claim the service has been paid in full.

History

Authority: AS 39.35.003; AS 39.35.300; AS 39.35.310
Eff. 2/13/2004, Register 172; readopt 7/20/2006, Register 179

2 AAC 35.340 Service credit for authorized leave of absence {#sec-2-aac-35.340 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.340}

Any period or periods of authorized leave of absence without pay totaling not more than 10 working days in a calendar year will be considered as creditable service. Once the total of any period or periods of authorized leave of absence without pay exceeds 10 working days in a calendar year, the entire period or periods of absence will be considered as an interruption of employment and no credited service will be granted. Service is credited on a daily rate basis for all full-time permanent employment with the state or a participating political subdivision. The table supplied by the consulting actuaries is used for computation purposes.

History

Authority: AS 39.35.003; AS 39.35.330

2 AAC 35.350 Temporary employment not creditable {#sec-2-aac-35.350 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.350}

An employment segment which has been designated as a temporary or nonpermanent appointment, or an employment segment for which a person has been designated as a temporary or nonpermanent employee by the employer is not creditable under this system except for temporary employment claimed under AS 39.35.345, and temporary legislative employment claimed under AS 39.35.385(f) and 39.35.680(40). For purposes of AS 39.35, Comprehensive Employment and Training Act (CETA) employees are, designated temporary employees.

History

Authority: AS 39.35.003; AS 39.35.345; AS 39.35.680

2 AAC 35.351 Temporary service {#sec-2-aac-35.351 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.351}

Only full-time temporary service may be applied toward a service retirement under AS 39.35.345(d).

History

Authority: AS 39.35.003; AS 39.35.345
Eff. 1/7/2001, Register 159; readopt 7/20/2006, Register 179

2 AAC 35.352 Election to use claimed temporary service toward eligibility for a normal service retirement {#sec-2-aac-35.352 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.352}

An employee who has claimed temporary service under AS 39.35.345 shall make an election whether or not to use the temporary service to satisfy the credited service requirements for normal retirement at application for retirement.

History

Authority: AS 39.35.003; AS 39.35.345
Eff. 1/7/2001, Register 159; am/readopt 7/20/2006, Register 179

2 AAC 35.353 Cost of claimed or converted service used for retirement eligibility {#sec-2-aac-35.353 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.353}

(a) The cost for converting membership service for retirement eligibility under AS 39.35.370(g) and AS 39.35.370(h) is the difference between the present value of the benefits the employee receives after the conversion and the present value of the benefits that the employee would have received without the conversion credit.

(b) The cost for claimed temporary service to be used for retirement eligibility as provided by AS 39.35.345(d) is the difference between the present value of the benefits that the employee receives after the conversion and the present value of the benefits the employee would have received without the conversion credit.

History

Authority: AS 39.35.003; AS 39.35.345; AS 39.35.370
Eff. 1/7/2001, Register 159; readopt 7/20/2006, Register 179

2 AAC 35.355 Military service performed after call to active duty {#sec-2-aac-35.355 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.355}

Military service performed by an employee who is a member of a reserve or National Guard unit after a call to active duty, whether voluntary or involuntary, constitutes membership service and does not count towards the maximum number of years of military service allowed to be claimed under AS 39.35.340(a).

History

Authority: AS 39.35.003; AS 39.35.340
Eff. 2/13/2004, Register 172; am/readopt 7/20/2006, Register 179

2 AAC 35.360 Service for which an indebtedness is owing for persons receiving calculated disability benefits {#sec-2-aac-35.360 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.360}

(a) A disabled member receiving a disability benefit determined under AS 39.35.370(c) may not receive a benefit based on credit for any service for which an indebtedness exists until the indebtedness has been paid in full.

(b) The indebtedness for military service for a person eligible to claim that service is calculated in accordance with AS 39.35.340(b) or (c).

History

Authority: AS 39.35.003; AS 39.35.340; AS 39.35.370

2 AAC 35.370 Credited service claims filed after retirement {#sec-2-aac-35.370 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.370}

A claim for credited service served before retirement but which is not filed until after appointment to retirement benefits is effective as of the first of the month following the date that the claim is received. The system is not liable for any benefits based upon the newly claimed service before that date.

History

Authority: AS 39.35.003; AS 39.35.342; AS 39.35.360 AS 39.35.330; AS 39.35.345
Eff. 2/13/2004, Register 172; readopt 7/20/2006, Register 179

Article 5 Alaska State Pension Investment Board

2 AAC 35.380 Election of Alaska State Pension Investment Board trustees {#sec-2-aac-35.380 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.380}

Deleted.

History

Eff. 8/7/92, Register 126; deleted as of Register 175, October 2005

2 AAC 35.385 Board trustee election procedures {#sec-2-aac-35.385 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.385}

Deleted.

History

Eff. 8/7/92, Register 126; deleted as of Register 175, October 2005

2 AAC 35.390 Removal and suspension of trustees {#sec-2-aac-35.390 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.390}

Deleted.

History

Eff. 8/7/92, Register 126; deleted as of Register 175, October 2005

Article 6 Miscellaneous Provisions Relating to the Defined Benefit Plan (As 39.35.095 – 39.35.68)

2 AAC 35.400 Interest on indebtedness amounts {#sec-2-aac-35.400 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.400}

The prescribed rate of interest that accrues on any indebtedness amount under the defined benefit plan of the Public Employees' Retirement System (AS 39.35.095 - 39.35.680) is seven percent, compounded semiannually on June 30 and December 31 of each year.

History

Authority: AS 39.35.003; AS 39.35.345; AS 39.35.385 AS 39.35.340; AS 39.35.360
Eff. 7/20/2006, Register 179

2 AAC 35.410 Payment of remaining indebtedness at retirement {#sec-2-aac-35.410 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.410}

An employee with an indebtedness to the defined benefit plan of the Public Employees' Retirement System (AS 39.35.095 - 39.35.680) who wishes to pay off the balance of that indebtedness, including accrued interest, must pay off the balance before the employees' retirement benefit begins. Once the employee is appointed to retirement, the application of a lifetime actuarial reduction to the employee's benefits based upon any indebtedness balance known to exist before the appointment may not be changed. Any indebtedness payments received after the employee has been appointed to a retirement benefit will be refunded to the employee.

History

Authority: AS 39.35.003; AS 39.35.340; AS 39.35.345 AS 39.35.330; AS 39.35.342; AS 39.35.360
Eff. 7/20/2006, Register 179

2 AAC 35.420 Writing off small indebtedness balances and refunds {#sec-2-aac-35.420 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.420}

(a) Indebtedness balances of $50 or less in the defined benefit plan of the Public Employees' Retirement System (AS 39.35.095 - 39.35.680) are written off.

(b) Refunds of $50 or less in the defined benefit plan of the Public Employees' Retirement System (AS 39.35.095 - 39.35.680) are written off.

History

Authority: AS 39.35.003
Eff. 7/20/2006, Register 179

2 AAC 35.430 Interest on individual accounts {#sec-2-aac-35.430 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.430}

(a) The prescribed rate of interest to be credited to employee contribution accounts in the defined benefit plan of the Public Employees' Retirement System (AS 39.35.095 - 39.35.680) is four and one-half percent.

(b) This plan is not liable for interest on contributions which cannot be posted to the individual account.

History

Authority: AS 39.35.003
Eff. 7/20/2006, Register 179

2 AAC 35.440 Assignment of a portion of an employee contribution account to an alternate payee {#sec-2-aac-35.440 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.440}

Repealed.

History

Eff. 7/20/2006, Register 179; repealed 1/13/2010, Register 193

2 AAC 35.450 Employment as a peace officer or firefighter after January 1, 1961, with a political subdivision of the state {#sec-2-aac-35.450 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.450}

(a) An employee participating in the defined benefit plan of the Public Employees' Retirement System (AS 39.35.095 - 39.35.680) who completes three years of service with the state after January 1, 1961, is entitled to credited service for employment as a peace officer or fireman performed after January 1, 1961, for a political subdivision of the state if the employee is vested (has five paid-up years) and was participating in the PERS as an active member under the peace officer or fireman category on July 1, 1980.

(b) Retroactive contributions for service as a peace officer or fireman in the case of an active employee vesting before or during the calendar year 1980 are calculated by multiplying six percent times the 1980 full-calendar-year salary or estimated full-calendar-year salary times years of credited service.

(c) Retroactive contributions for service as a peace officer or fireman in the case of an active employee vesting after December 31, 1980, are calculated by multiplying six percent times the full-calendar-year or estimated full-calendar-year salary for the year in which the employee becomes vested times years of credited service.

(d) Under this section, interest accrues on the indebtedness of a peace officer or fireman beginning July 1, 1983, or one year following the date the peace officer or fireman becomes vested, whichever is later. Any outstanding indebtedness which exists at the time a peace officer or a fireman is appointed to retirement will necessitate an actuarial adjustment to the benefits payable based upon that peace officer or fireman employment.

History

Authority: AS 39.35.003; AS 39.35.680
Eff. 7/20/2006, Register 179

2 AAC 35.460 Coverage as a peace officer or firefighter {#sec-2-aac-35.460 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.460}

Except as may be expressly authorized by AS 39.35.095 - 39.35.680, for purposes of the statutes governing the defined benefit plan of the Public Employees' Retirement System (AS 39.35.095 - 39.35.680)

(1) "peace officer" means only a person who is a regular employee of a police agency or organization which is part of the state or a political subdivision of the state, and who has primary responsibility for the prevention and detection of crime and the enforcement of the fish and game, penal, traffic or highway laws of the state or employing political subdivision;

(2) "firefighter" or "fire chief" means only a person who is a regular employee of a fire agency or organization of the state or a political subdivision of the state and who is authorized to act under AS 18.70.

History

Authority: AS 39.35.003; AS 39.35.680
Eff. 7/20/2006, Register 179

2 AAC 35.470 Membership criteria for University of Alaska personnel {#sec-2-aac-35.470 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.470}

(a) This section determines which University of Alaska personnel are members of the Public Employees' Retirement System.

(b) The University of Alaska shall make a recommended designation to the administrator of all University of Alaska positions as belonging to the Public Employees' Retirement System (PERS), the Teachers' Retirement System (TRS), or neither. Those positions which the recommended designation would assign to the PERS shall be those positions subject to a formal university position classification and evaluation system and whose occupants do not have academic standing or rank as defined by the statutes and regulations governing the TRS.

(c) Final approval of the designation of positions and the membership of employees shall be made by the administrator of the Public Employees' Retirement System.

History

Authority: AS 39.35.003
Eff. 7/20/2006, Register 179

2 AAC 35.480 Adoption of unisex tables {#sec-2-aac-35.480 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.480}

The defined benefit plan of the Public Employees' Retirement System (AS 39.35.095 - 39.35.680) shall use unisex tables containing unisex joint and survivor option factors, unisex early retirement factors, and unisex indebtedness factors in all appropriate computations. The plan shall incorporate unisex level income option factors that will guarantee that a level income monthly benefit may never be reduced below $50.

History

Authority: AS 39.35.003
Eff. 7/20/2006, Register 179

2 AAC 35.800 Interest on indebtedness amounts {#sec-2-aac-35.800 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.800}

Repealed.

2 AAC 35.805 Payment of remaining indebtedness at retirement {#sec-2-aac-35.805 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.805}

Repealed.

History

Eff. 2/13/2004, Register 172; repealed 7/20/2006, Register 179

2 AAC 35.810 Writing off small indebtedness balances and refunds {#sec-2-aac-35.810 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.810}

Repealed.

2 AAC 35.820 Interest on individual accounts {#sec-2-aac-35.820 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.820}

Repealed.

2 AAC 35.830 Liability for interest on individual accounts {#sec-2-aac-35.830 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.830}

Repealed.

2 AAC 35.835 Assignment of a portion of an employee contribution account to an alternate payee {#sec-2-aac-35.835 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.835}

Repealed.

History

Eff. 1/7/2001, Register 159; repealed 7/20/2006, Register 179

2 AAC 35.840 Employment as a peace officer or fireman after January 1, 1961, with a political subdivision of the state {#sec-2-aac-35.840 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.840}

Repealed.

2 AAC 35.850 Coverage as a peace officer or fireman {#sec-2-aac-35.850 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.850}

Repealed.

2 AAC 35.860 Release of information {#sec-2-aac-35.860 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.860}

Repealed.

2 AAC 35.870 Membership criteria for University of Alaska personnel {#sec-2-aac-35.870 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.870}

Repealed.

2 AAC 35.880 Adoption of unisex tables {#sec-2-aac-35.880 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.880}

Repealed.

2 AAC 35.890 Qualified Fish and Game employees {#sec-2-aac-35.890 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.890}

Repealed.

History

Eff. 3/21/82, Register 81; repealed 1/7/2001, Register 159

2 AAC 35.900 Maximum employer contribution rate change {#sec-2-aac-35.900 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.900}

Repealed.

History

Eff. 5/17/91, Register 119; repealed 7/20/2006, Register 179

2 AAC 35.990 Definitions {#sec-2-aac-35.990 omnilex-key=us-ak-regs-official--title-2--2 AAC 35.990}

(a) In this chapter, unless the context otherwise requires, "division" means the Division of Retirement and Benefits in the Department of Administration.

(b) In AS 39.35.006, "decision made by the administrator" means a decision in a matter over which the administrator has control, and does not include a decision by an employer.

(c) In AS 39.35.120, "commencement of employment" means the time at which the employee becomes an active member of the system as defined in AS 39.35.680.

(d) In AS 39.35.370(h), "probation officer" means a person employed as a probation officer by the Department of Corrections, regardless of whether the person is assigned to a correctional facility.

(e) In AS 39.35.520(a), "change or error is made in the records maintained by the system" means a correction or mistake made in the records as a result of the entry of incorrect information about a member into the records.

(f) In the definition of "occupational disability" in AS 39.35.680, "wilful negligence" means intentional misconduct or gross negligence.

(g) In AS 39.35.400(b), "reaches normal retirement age" means

(1) for a member first joining the system before July 1, 1986, reaches age 55 with 5 years of credited service for which no indebtedness is due;

(2) for a member first joining the system on or after July 1, 1986, reaches age 60 with 5 years of credited service for which no indebtedness is due.

(h) In AS 39.35.410(b), "reaches normal retirement age" means

(1) for a member first joining the system before July 1, 1986, reaches age 55 with 5 years of credited service for which no indebtedness is due or accrues sufficient paid-up credited service, including credited service accrued as a result of the occupational disability, to entitle the member to retire under AS 39.35.370 (a)(2) or (3), whichever occurs earlier;

(2) for a member first joining the system on or after July 1, 1986, reaches age 60 with 5 years of credited service for which no indebtedness is due or accrues sufficient paid-up credited service, including credited service accrued as a result of the occupational disability, to entitle the member to retire under AS 39.35.370 (a)(2) or (3), whichever occurs earlier.

History

Authority: AS 39.35.003; AS 39.35.400; AS 39.35.522 AS 39.35.120; AS 39.35.410; AS 39.35.680 AS 39.35.370; AS 39.35.520
Eff. 9/27/96, Register 150; am 1/7/2001, Register 159; am 2/23/2001, Register 159; am/readopt 7/20/2006, Register 179

Chapter 36 Teachers' Retirement System

Article 1 Board

2 AAC 36.010 Quorum {#sec-2-aac-36.010 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.010}

Deleted.

2 AAC 36.020 Teleconferencing {#sec-2-aac-36.020 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.020}

Deleted.

History

Eff. 7/12/90 (not printed); am 11/18/90, Register 122; deleted as of Register 175, October 2005

Article 2 Administration of the Defined Benefits Plan (AS 14.25.009 – 14.25.220) and the Defined Contribution Plan (AS 14.25.310 – 14.25.590)

2 AAC 36.021 Employers to supply employment records {#sec-2-aac-36.021 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.021}

(c) An audit, review or assessment of the employer records to determine an employer's compliance with the plan provisions shall include a desk audit, a field audit or both.

(d) In conducting an audit, review or assessment of the employer records, the employer shall allow the administrator or administrator's designee access to original records documenting personnel hiring and employment practices.

(g) In this section, unless the context otherwise requires,

History

Authority: AS 14.25.003; AS 14.25.004; AS 14.25.005
Eff. 7/20/2006, Register 179; am 1/13/2010, Register 193; am 1/31/2017, Register 221

2 AAC 36.022 Application for retirement or account distribution {#sec-2-aac-36.022 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.022}

It is the responsibility of a member of the Teachers' Retirement System to make application for retirement under the defined benefits plan or for account distribution under the defined contribution plan in writing on a form prescribed by the administrator. The effective date of application is the day the application is received by the division, or, if mailed, the day the application is postmarked. A member requesting appointment to retirement should apply 30 days before the requested retirement date.

History

Authority: AS 14.25.003; AS 14.25.110; AS 14.25.430
Eff. 7/20/2006, Register 179

2 AAC 36.023 Application for disability benefits {#sec-2-aac-36.023 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.023}

(a) The administrator shall determine eligibility for disability benefits under AS 14.25.130 or AS 14.25.485. The administrator may require the member to provide additional information and to submit to an examination by one or more physicians of the administrator's choosing at the division's expense.

(b) A member may apply to the administrator for a determination of eligibility for disability benefits before employment is terminated. A determination by the administrator finding disability is void if the member fails to terminate employment within 30 days of the date of the determination.

(c) When a determination is made under this section before termination, notice of the determination will be mailed to the member's employer.

(d) A member who fails to file an application for disability benefits within the time established by AS 14.25.130 or AS 14.25.485 forfeits the right to apply, unless the member demonstrates to the administrator that there are extraordinary circumstances that prevented the person from meeting the deadline. Extraordinary circumstances may include being adjudged as incompetent or confined to a hospital, but do not include lack of information or mere neglect.

History

Authority: AS 14.25.003; AS 14.25.130; AS 14.25.485
Eff. 7/20/2006, Register 179; am 1/13/2010, Register 193

2 AAC 36.025 Compliance with the Internal Revenue Code {#sec-2-aac-36.025 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.025}

(a) Pursuant to AS 14.25.110 and for purposes of compliance with the Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations, the Teachers' Retirement System Tiers 1 and 2 Defined Benefit Plan under AS 14.25.009 - 14.25.220 adopts by reference, as part of the governing Plan document, the Retirement System IRS Compliance Policy dated August 2015 as amended from time to time.

History

Authority: AS 14.25.003; AS 14.25.005 AS 14.25.004; AS 14.25.110
Eff. 9/24/2015, Register 216

2 AAC 36.030 Regulations {#sec-2-aac-36.030 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.030}

(a) Repealed 7/20/2006.

(b) Except as provided in (c) of this section, the commissioner will give public notice, in accordance with AS 14.25.005, of the proposed adoption, amendment, or repeal of a regulation at least 30 days prior to taking action on the proposal. This 30-day requirement does not apply if the commissioner decides not to adopt, amend, or repeal the regulation. Public notice will include an informative summary of the action proposed to be taken; a date through which written comments on the proposed action will be accepted from the public; and the time and place of any hearings at which oral comments from the public will be accepted, if the commissioner decides to schedule such hearings. Upon request from any person, the commissioner will provide that person with the text of any regulation or proposed regulation whose adoption, amendment, or repeal is being considered. The commissioner will consider all comments presented under this subsection before adopting, amending, or repealing a regulation. If a hearing is held under this subsection, the commissioner may continue or postpone the hearing to a time and place that the commissioner determines to be suitable. The commissioner may take an action that varies from the proposed action set out in the notice required by this subsection if the subject matter of a regulation adopted, amended, or repealed remains the same as that included in the public notice.

(c) If the commissioner adopts, amends, or repeals a regulation as an emergency regulation under AS 14.25.005(h), the commissioner's action will be accompanied by a written finding that the action meets the standards set out in AS 14.25.005(h) for an emergency action to be valid. This written finding will include a summary of the facts constituting the emergency. The public notice that is required by AS 14.25.005(h) after the emergency action will comply with (b) of this section. An emergency regulation adopted, amended, or repealed under AS 14.25.005(h) and this subsection remains in effect only 30 days after its effective date, unless the emergency regulation is proposed for adoption, amendment, or repeal on a permanent basis under AS 14.25.005 and this section.

(d) Repealed 7/20/2006.

(e) Repealed 7/20/2006.

(f) The commissioner will make copies of adopted regulations available to the public upon request.

History

Authority: AS 14.25.003

2 AAC 36.035 Hearing on request for waiver under AS 14.25.175 {#sec-2-aac-36.035 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.035}

The commissioner of administration may hold a hearing on a request for a waiver under AS 14.25.175. The commissioner may appoint a person to hear the evidence on such a request and make a recommendation to the commissioner.

History

Authority: AS 14.25.003; AS 14.25.175
Eff. 7/20/2006, Register 179

2 AAC 36.040 Notice of appeal rights {#sec-2-aac-36.040 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.040}

The division shall include with any final decision by the administrator, and the commissioner of administration shall include with any decision regarding a request for a waiver of an adjustment under AS 14.25.175, an outline of the procedures for filing an appeal of the decision and the notice of appeal form necessary to initiate the appeal. The outline or notice shall include a statement that the appellant has a right to counsel at appellant's cost in the appeal. A final decision of the administrator includes, a final determination of eligibility for benefits, a reduction in benefits, or the denial of a review of a decision by a division supervisor.

History

Authority: AS 14.25.003; AS 14.25.175

2 AAC 36.050 Appeals {#sec-2-aac-36.050 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.050}

Repealed.

2 AAC 36.060 Filing of notice of appeal {#sec-2-aac-36.060 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.060}

(a) A person who wishes to appeal a decision of the division under AS 14.25 shall file a notice of appeal with the division within 30 days of the date that the person receives notice of the decision. If the person wishes to appeal a decision of the commissioner of administration under AS 14.25.175, the person must file a notice of appeal with the commissioner within 30 days of the date that the person receives notice of the decision. The commissioner of administration will send to the division a copy of any notice of appeal that the commissioner receives under this subsection, and the division will notify the person wishing to appeal if the notice of appeal is untimely.

(b) Repealed 7/20/2006.

(d) A person who fails to file the notice of appeal within the time established by this section forfeits the right to appeal, unless the person demonstrates to the satisfaction of the administrator that there are extraordinary circumstances that prevented the person from meeting the deadline. Extraordinary circumstances may include being adjudged as incompetent or confined to a hospital, but do not include lack of information or mere neglect. This subsection applies to untimely notices of appeals filed with the commissioner of administration under (a) of this section as well as to notices of appeal filed with the division.

(e) If a person files an untimely notice of appeal, including a notice of appeal to the commissioner of administration under AS 14.25.175, without explanation of why the filing is untimely, the division shall return the notice of appeal to the person, and inform the person that the person may resubmit the notice with an explanation of why it was not timely filed. If the person resubmits the notice of appeal with an explanation or if the original untimely notice of appeal contained an explanation of untimeliness, and the administrator in either situation found that the explanation did not establish extraordinary circumstances excusing the untimeliness under (d) of this section, the person may file a new notice of appeal within 30 days of the date that the person receives notice of the decision refusing to accept the untimely first appeal.

History

Authority: AS 14.25.003; AS 14.25.175

2 AAC 36.070 Division to notify office of administrative hearings {#sec-2-aac-36.070 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.070}

Upon receipt of a timely notice of appeal, including a timely notice of appeal received from the commissioner of administration under 2 AAC 36.060(a), the division shall date-stamp the receipt and promptly send a copy of that notice to the office of administrative hearings. If the only timely notice of appeal relates to the decision of the administrator not to accept an untimely notice of appeal under 2 AAC 36.060(d), the administrator shall send to the office of administrative hearings only the notice of appeal relating to the decision not to accent the untimely notice of appeal.

History

Authority: AS 14.25.003

2 AAC 36.080 Form of notice {#sec-2-aac-36.080 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.080}

A notice of appeal must include the following information:

(1) the action by the division that the appellant is appealing and the relief the appellant seeks;

(2) the grounds for the appeal;

(3) whether the appellant requests an informal conference with the division during the pendency of the appeal before the office of administrative hearings, if an informal conference is authorized by 2 AAC 36.090.

History

Authority: AS 14.25.003; AS 14.25.175

2 AAC 36.090 Informal conference {#sec-2-aac-36.090 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.090}

If an appellant requests an informal conference with the division under 2 AAC 36.080(3), the division will convene an informal conference in the office of the division, or at another location or by another means, such as by telephone, that is convenient for the appellant and the division, and at a time that does not delay the appellant's hearing before the office of administrative hearings. If the informal conference resolves the issues being appealed, in whole or in part, the division will notify the office of administrative hearings, and the appellant may withdraw or modify the appeal. Informal conferences are not authorized when the decision being appealed is a decision of the commissioner of administration under AS 14.25.175.

History

Authority: AS 14.25.003; AS 14.25.175

2 AAC 36.092 Place for filing with the division {#sec-2-aac-36.092 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.092}

(a) When a person is required to make a filing with the division under AS 14.25 or this chapter, including a notice of appeal, the person may make that filing by hand-delivering or mailing the filing to any office of the division. When a person is required to make a filing with the commissioner of administration under AS 14.25.175, the person may make that filing by hand-delivering or mailing the filing to office of the commissioner in Juneau.

History

Authority: AS 14.25.003; AS 14.25.175
Eff. 7/20/2006, Register 179

2 AAC 36.094 Time of action {#sec-2-aac-36.094 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.094}

(a) When a person is required to make a filing with the division, including a notice of appeal, or with the commissioner of administration within a certain time period under AS 14.25 or this chapter, the effective date of that filing is the day it is received by the division or the commissioner, as appropriate, or, if mailed to the appropriate entity, the day it is postmarked.

(b) If a mailed filing has an illegible postmark or an undated postmark, the postmark date is rebuttably presumed to be five working days before the day that the filing is received by the division or the commissioner of administration.

History

Authority: AS 14.25.003; AS 14.25.175
Eff. 7/20/2006, Register 179

2 AAC 36.095 Normal retirement benefit nonforfeitable {#sec-2-aac-36.095 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.095}

(a) For purposes of compliance with the Internal Revenue Code $ 401(a)(7), the normal retirement benefit calculated under AS 14.25.470 is nonforfeitable upon attainment of normal retirement age.

(b) Notwithstanding (a) of this section, a normal retirement benefit is subject to the provisions of AS 14.25, including AS 14.25.532.

(c) In the event of a full or partial termination of, or a complete discontinuance of employer contributions to the plan, the accrued benefits of the affected members under the plan shall be 100 percent vested and nonforfeitable to the extent funded and required by federal law.

(d) This section may not be construed as a reduction or limitation of rights previously existing, or as an indication that vested benefits would be forfeitable before the stated age is attained.

(e) In this section, "normal retirement age" means the age set for Medicare eligibility at the time the member retires, with the completion of at least 10 years of service, whichever is later.

History

Authority: AS 14.25.003; AS 14.25.005; AS 14.25.440 AS 14.25.004; AS 14.25.320; AS 14.25.532
Eff. 1/12/2013, Register 205

2 AAC 36.096 Defined contribution plan compliance with the Internal Revenue Code {#sec-2-aac-36.096 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.096}

For purposes of compliance with the Internal Revenue Code, the defined contribution plan (AS 14.25.310 - 14.25.590) will be treated as an Internal Revenue Code sec. 414(k) (26 U.S.C. 414(k)) plan in which savings are accumulated in an individual retirement account for the exclusive benefit of the member or beneficiaries and certain fixed occupational death and disability benefits are paid.

History

Authority: AS 14.25.003; AS 14.25.485 AS 14.25.320; AS 14.25.487
Eff. 6/22/2006, Register 179

2 AAC 36.097 Normal retirement benefit nonforfeitable {#sec-2-aac-36.097 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.097}

(a) For purposes of compliance with the Internal Revenue Code $ 401(a)(7), the normal retirement benefit calculated under AS 14.25.110 is nonforfeitable upon attainment of normal retirement age.

(b) Notwithstanding (a) of this section, a normal retirement benefit is subject to the provisions of AS 14.25, including AS 14.25.205 and 14.25.212.

(d) This section may not be construed as a reduction or limitation of rights previously existing, or as an indication that vested benefits would be forfeitable before the stated age is attained.

(e) In this section, "normal retirement age" means

(1) for a person hired on or after July 1, 1990, age 60 with the completion of at least eight years of service, whichever is later;

(2) for a person hired before July 1, 1990, age 55 with the completion of at least eight years of service, whichever is later.

History

Authority: AS 14.25.003; AS 14.25.010; AS 14.25.212 AS 14.25.004; AS 14.25.110 AS 14.25.005; AS 14.25.205
Eff. 1/12/2013, Register 205

2 AAC 36.098 Transfer into defined contribution plan by nonvested members of defined benefit plan {#sec-2-aac-36.098 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.098}

(a) A nonvested member of the defined benefit plan (AS 14.25.009 - 14.25.220) who wishes to participate in the defined contribution plan (AS 14.25.310 - 14.25.590) under AS 14.25.540 must make that election within 12 months of the effective date of the member's employer's election to participate in the defined contribution plan. The member must also certify in writing to the administrator that the member has carefully reviewed the information sent to the member under AS 14.25.540(h) and that the member understands that the member had the right to review the decision to transfer with a qualified employee of the division before the member made the decision.

(b) A matching employer contribution made on behalf of a member of the defined contribution plan under AS 14.25.540(c) may not exceed the limits set out in sec. 415(c) of the Internal Revenue Code (26 U.S.C. 415(c)) during the applicable limitation year, as defined in AS 14.25.590. If the matching employer contribution would exceed the limits during the limitation year in which the transfer occurs, the remaining amount of the matching employer contribution shall be made in the next limitation year, if the limits would not be exceeded.

(c) Membership service previously earned in the defined benefit plan by a former member of that plan who has elected to become a member of the defined contribution plan shall be credited for purposes of determining vesting in the matching employer contribution under AS 14.25.540(c) and in subsequent employer contributions under AS 14.25.390(b).

(e) For purposes of this section and AS 14.25.540, "membership service" means service with a participating employer under AS 14.25.009 - 14.25.220 for which contributions have been paid and does not include any service for which reinstatement indebtedness has not been fully paid.

History

Authority: AS 14.25.003; AS 14.25.380; AS 14.25.540 AS 14.25.350; AS 14.25.390
Eff. 6/22/2006, Register 179; am 9/16/2006, Register 180

2 AAC 36.099 Compliance with the Internal Revenue Code {#sec-2-aac-36.099 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.099}

(a) Pursuant to AS 14.25.320 and for purposes of compliance with the Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations, the Teachers' Retirement System Tier 3 Defined Contribution Plan under AS 14.25.310 - AS 14.25.590 hereby adopts by reference, as part of the governing Plan document, the provisions of the Retirement System IRS Compliance Policy dated August 2015 as amended from time to time.

History

Authority: AS 14.25.003; AS 14.25.005 AS 14.25.004; AS 14.25.320
Eff. 9/24/2015, Register 216

2 AAC 36.100 Scheduling appeal {#sec-2-aac-36.100 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.100}

Repealed.

2 AAC 36.110 Presentation of evidence {#sec-2-aac-36.110 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.110}

Repealed.

2 AAC 36.115 Physician board members in appeals to determine medical eligibility for disability benefits {#sec-2-aac-36.115 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.115}

Repealed.

History

Eff. 7/12/90 (not printed); am 11/18/90 Register 122; am 1/7/2001, Register 159; repealed 7/20/2006, Register 179

2 AAC 36.117 Subpoenas and preservation of testimony {#sec-2-aac-36.117 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.117}

Repealed.

History

Eff. 9/29/2001, Register 159; repealed 7/20/2006, Register 179

2 AAC 36.120 Appeal procedures {#sec-2-aac-36.120 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.120}

Repealed.

2 AAC 36.130 Deliberations on appeal {#sec-2-aac-36.130 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.130}

Repealed.

2 AAC 36.140 Decision on appeal to be written {#sec-2-aac-36.140 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.140}

Repealed.

2 AAC 36.145 Reconsideration {#sec-2-aac-36.145 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.145}

Repealed.

History

Eff. 9/29/2001, Register 159; repealed 7/20/2006, Register 179

2 AAC 36.150 Interest {#sec-2-aac-36.150 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.150}

Repealed.

2 AAC 36.160 Calculation of indebtedness for territorial service claimed under AS 14.25.105 {#sec-2-aac-36.160 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.160}

Repealed.

2 AAC 36.165 Payment of remaining indebtedness at retirement {#sec-2-aac-36.165 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.165}

Repealed.

History

Eff. 3/18/2004, Register 172; repealed 7/20/2006, Register 179

2 AAC 36.170 Calculation of average base salary for teachers with sabbatical leave {#sec-2-aac-36.170 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.170}

Repealed.

2 AAC 36.180 Calculation of average base salary and TRS contribution amounts {#sec-2-aac-36.180 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.180}

Repealed.

2 AAC 36.181 Limitation on fixed benefits in defined contribution plan {#sec-2-aac-36.181 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.181}

All of the fixed benefits in the defined contribution plan (AS 14.25.310 - 14.25.590) are subject to the limitation on benefits in sec. 415(b) of the Internal Revenue Code (26 U.S.C. sec. 415(b)), including monthly disability payments under AS 14.25.485 and monthly survivor pension payments under AS 14.25.485(i) and 14.25.487.

History

Authority: AS 14.25.003; AS 14.25.380; AS 14.25.487 AS 14.25.320; AS 14.25.485
Eff. 6/22/2006, Register 179

2 AAC 36.182 Procedures for making additional contributions under the defined contribution plan {#sec-2-aac-36.182 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.182}

Repealed.

History

Eff. 6/22/2006, Register 179; am 9/13/2006, Register 180; repealed 1/13/2010, Register 193

2 AAC 36.183 Certain periods to count toward vesting in the defined contribution plan and the health reimbursement arrangement plan {#sec-2-aac-36.183 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.183}

(a) A period during which a member of the defined contribution plan (AS 14.25.310 - 14.25.590) is receiving an occupational disability benefit under AS 14.25.485 constitutes membership service for the purposes of determining vesting in employer contributions under AS 14.25.390(b) and eligibility for retirement and medical benefits under AS 14.25.310 - 14.25.590 and under the health reimbursement arrangement plan (AS 39.30.300 - 39.30.495).

(b) If a member of the defined contribution plan receiving or entitled to receive an occupational disability benefit under AS 14.25.485 dies while receiving that benefit or before the commencement of the benefit, the period during which the member was eligible for the benefit and the period during which a survivor's benefit was paid to a survivor of the member constitute membership service for the purposes of determining vesting in employer contributions under AS 14.25.390(b) and eligibility for retirement and medical benefits under AS 14.25.310 - 14.25.590 and AS 39.30.300 - 39.30.495.

(c) If a member of the defined contribution plan suffers an occupational death under AS 14.25.487, the period during which a survivor's benefit is paid to a survivor of the member constitutes membership service for the purposes of determining vesting in employer contributions under AS 14.25.390(b) and eligibility for retirement and medical benefits under AS 14.25.310 - 14.25.590 and AS 39.30.300 - 39.30.495.

History

Authority: AS 14.25.003; AS 14.25.485; AS 14.25.487
Eff. 6/22/2006, Register 179

2 AAC 36.184 Prohibitions on elections of distributions from individual accounts of members of the defined contribution plan {#sec-2-aac-36.184 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.184}

A member of the defined contribution plan (AS 14.25.310 - 14.25.590) may not elect distributions from the member's individual account under AS 14.25.410 while the member is receiving or entitled to receive occupational disability benefits under AS 14.25.485. A beneficiary of a deceased member of the plan may not elect distributions from the deceased member's individual account under AS 14.25.410 while the beneficiary is receiving survivor benefits under AS 14.25.485(i) or AS 14.25.487.

History

Authority: AS 14.25.003; AS 14.25.485 AS 14.25.410; AS 14.25.487
Eff. 6/22/2006, Register 179

2 AAC 36.185 Vesting in employer contributions for members of the defined contribution plan receiving disability benefits {#sec-2-aac-36.185 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.185}

Notwithstanding AS 14.25.390(b), a member of the defined contribution plan (AS 14.25.310 - 14.25.590) who is appointed to occupational disability under AS 14.25.485 becomes fully vested in the employer contributions made under AS 14.25.485(d)(2) as those contributions are made.

History

Authority: AS 14.25.003; AS 14.25.390 AS 14.25.380; AS 14.25.485
Eff. 6/22/2006, Register 179

2 AAC 36.186 Date of end of payment of survivor benefits under the defined contribution plan to dependent children {#sec-2-aac-36.186 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.186}

Survivor benefits under AS 14.25.485(i) and AS 14.25.487 that are being paid to a dependent child of a member of the defined contribution plan (AS 14.25.310 - 14.25.590) shall terminate on the last day of the month in which the dependent child ceases to be a dependent child as defined in AS 14.25.590. If a survivor who has ceased to be a dependent child subsequently becomes a dependent child again as defined in AS 14.25.590, survivor benefits to that person shall resume.

History

Authority: AS 14.25.003; AS 14.25.485; AS 14.25.487
Eff. 6/22/2006, Register 179

2 AAC 36.187 Date of termination of employer contributions to the individual account of a deceased member of the defined contribution plan {#sec-2-aac-36.187 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.187}

Repealed.

History

Eff. 6/22/2006, Register 179; repealed 1/13/2010, Register 193

2 AAC 36.188 Bona fide termination of employment {#sec-2-aac-36.188 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.188}

(b) Unless (f) of this section applies, for purposes of a bona fide termination of employment, the following breaks-in-service requirements shall apply:

(1) a member under age 62 at the time of retirement cannot return to employment in any capacity with the same employer until six months have elapsed from the date of retirement;

(2) a member age 62 or older cannot return to employment with the same employer until 60 days have elapsed from the date of retirement.

(c) If a retired member under age 591/2 returns to employment with the same employer with less than a six-month break in service, benefit payments shall not be made during the period of reemployment. All benefit payments received before the date of cessation of payments and occurring while the member was under age 591/2 will be coded, under Internal Revenue Service requirements, as an early distribution (no known exception) for tax purposes unless another known exception exists. Upon the member's subsequent termination from employment, a member's entitlement to benefit payments will commence the day after the date of the termination. The member will again be required to establish a bona fide termination in accordance with (b) of this section before reemploying again with the same employer.

(d) If a retired member over age 591/2, but less than age 62, returns to employment with the same employer with less than a six-month break in service, benefit payments shall not be made during the period of reemployment. Upon the member's subsequent termination from employment a member's entitlement to benefit payments will commence the day after the date of the termination. The member will again be required to establish a bona fide termination in accordance with (b) of this section before reemploying again with the same employer.

(g) For purposes of this section, "bona fide termination of employment" shall have the same meaning as "severance of service date" under 26 C.F.R. 1.410(a)-7(b)(2) or as amended.

History

Authority: AS 14.25.005; AS 14.25.110; AS 14.25.410 AS 14.25.010; AS 14.25.320
Eff. 12/22/2017, Register 225

2 AAC 36.189 Compensation {#sec-2-aac-36.189 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.189}

Except as may be expressly authorized by AS 14.25.220(6), "remuneration"

(1) means only the salary paid under contract to an employee for standard services rendered;

(2) does not include bonuses paid for retirement incentives, or additional pay outside the standard salary contract for an employee who agrees to retire if the additional pay is granted within 18 months before the employee's appointment to retirement.

History

Authority: AS 14.25.003; AS 14.25.220; AS 14.25.590
Eff. 1/13/2010, Register 193

2 AAC 36.191 Valid beneficiary designation in the defined benefit and defined contribution plan {#sec-2-aac-36.191 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.191}

History

Authority: AS 14.25.003; AS 14.25.166; AS 14.25.450
Eff. 1/13/2010, Register 193

2 AAC 36.192 Defined contribution plan qualified domestic relations orders (QDRO's) {#sec-2-aac-36.192 omnilex-key=us-ak-regs-official--title-2--2 AAC 36.192}

(a) After a member covered under AS 14.25.310 - 14.25.590 is divorced or the member's marriage is dissolved, the member's former spouse has no individual rights or entitlements to benefits from the system, but may, under a qualified domestic relations order, establish a separate interest in the vested contributions attributed to the member. To be valid and enforced by the administrator, a qualified domestic relations order must conform to both the requirements of AS 14.25 and the requirements of the United States Internal Revenue Code that the system must comply with in order to maintain its federal tax-qualified status.

(b) An alternate payee

(1) may only be the former spouse of a member who has been named by an order of a court of competent jurisdiction to receive all or a portion of the member's vested contribution account;

(3) may elect to receive funds from the newly established account; leave the money in the account and manage it in the same manner as active or deferred participants or elect to receive the funds under one of several disbursement options under AS 14.25.420.

(c) The administrator shall review all domestic relations orders that the administrator receives, and shall reject a domestic relations order that does not meet the requirements of AS 14.25 or this chapter. A qualified domestic relations order is effective upon acceptance by the administrator. The administrator will accept only a domestic relations order that is prospective. The administrator requires a domestic relations order to, at the minimum, contain the following: