The State of Alaska spent almost $15 million on transportation in fiscal year 1998. In the first two quarters of fiscal year 1999, transportation costs reached almost $7.5 million dollars.

The State of Alaska presently has no policy regarding the utilization of frequent flyer bonus miles accrued by state employees while on state business. HB 279 would require a state employee who accrues frequent flyer miles while on state travel to utilize any incentives received to be utilized for future travel on state business. The incentives earned while on state travel are rightfully the property of the State of Alaska and should be utilized for the benefit of the state.

This legislation has two purposes. First, to save the State of Alaska on travel expenses by utilizing travel awards earned by state employees on subsequent state travel, instead of being utilized by employees for personal use. Second, some travel agents have indicated state employees may not be selecting the least expensive carrier option when traveling on state business because they want to accrue frequent flyer miles on their preferred carrier.

HB 279 does not present any record keeping burden on state agencies or airlines. Instead, the onus is on the employee to comply with provisions of the legislation. Enforcement would be through the state ethics code as personal use of state accrued miles would be an inappropriate appropriation of state resources for personal benefit.

The federal government requires federal employees to utilize frequent flyer miles accrued on official travel to be utilized for the benefit of the federal government. (See 41 CFR 310.53) HB 279 would make Alaska law parallel the federal regulations without the burdensome paperwork and reporting requirements of the federal government.

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