WHEREAS, the Departments of Law, Labor, and Revenue have reported that there exists a general problem in the collection of withholding and other taxes from contractors in the State; and

WHEREAS, it would be contrary to the public interest to permit persons or organizations having contracts with the State to receive payment on construction contracts with the State if they or their subcontractors have not paid the taxes incurred in the performance of those contracts:

NOW, THEREFORE, by virtue of the authority vested in me as Governor, I hereby order the following:

In all future contracts made, entered into or approved by the State or any office or agency thereof for the construction of any State highway, airport, air field, building or other physical, capital or structural improvement, all contractors shall be required to accept as a condition of being awarded such contract the following clause which shall be set forth in each construction
contract:

"PAYMENT OF TAXES. As a condition of performance of this contract, the contractor shall pay all federal, state and local taxes incurred by the contractor, subcontractor or other person or persons in the performance of this contract and proof of payment of these taxes is a condition precedent to payment by the State under this contract."

This Order takes effect immediately.

DATED at Juneau, Alaska this 21st day of May, 1968.

S/S Walter J. Hickel              
WALTER J. HICKEL                  
GOVERNOR OF THE STATE OF ALASKA