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

WHEREAS, it would be contrary to the public interest to permit persons or organizations having professional and personal service contracts with the State to receive payment on such contracts 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 professional or personal services rendered, 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 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 18th day of July, 1972.

S/S WILLIAM A. EGAN
WILLIAM A. EGAN   
Governor of Alaska