Pursuant to my authority as Governor under article III of the Alaska Constitution, I find and direct as follows:

1. The historical and continuing high rate of unemployment among Alaska residents poses serious social and economic consequences that are chronic in nature. These consequences include, but are certainly not limited to, high rates of alcoholism, poverty, broken families, violent crimes, and personal and commercial insolvencies and bankruptcies.

2. A significant and contributing factor to this high rate of unemployment, particularly in certain industries such as construction, is the hiring by employers of non-resident workers, even though resident workers are available and qualified to perform the work.

3. The Alaska Supreme Court's recent decision in Francis v. Robison, No. 3011, January 17, 1986, held the state's present resident hire law (AS 36.10) to be unconstitutional and placed significant limitations on the state's ability to provide for resident hiring preferences.

4. The Alaska Legislature is presently considering a number of bills that would provide for certain hiring preferences for Alaska residents or targeted groups of Alaska residents. However, these measures might not be enacted and take effect until late in the Spring of 1986.

5. A number of state-funded public works projects will be put out to bid and may be awarded before the effective date of any new legislation that might be enacted to provide for certain hiring preferences for Alaska residents.

6. In order to maximize the coverage and benefits of any new resident hire legislation that might be adopted, it is in the public interest to ensure that all state-funded public works construction projects awarded and after the date of this administrative order and before the effective date of any resident hire legislation that might be enacted incorporate a provision securing the contractors' agreement and commitment to comply with any applicable resident hire legislation that might subsequently take effect during the term of the contract.

7. Consequently, I direct that language that provides substantially as follows be included in any public works bid document issued or public works contract awarded by any state agency in the executive branch after the date of this order and before the effective date of any applicable resident hire legislation that might be enacted:

Contractor shall comply with all applicable and valid laws and regulations regarding the hiring of Alaska residents now in effect or that might subsequently take effect during the term of this contract. In order to ensure that contractor's subcontractors will comply with all applicable laws and regulations regarding the hiring of Alaska residents now in effect or that might subsequently take effect, contractor shall include in its contracts with subcontractors under this contract language that is substantially the same as the first sentence of this provision.

8. I also direct that language that provides substantially as follows be included in any grant to a municipality under AS 37.05.315 for public works, any grant to a named recipient under AS 37.05.316 for public works, and any grant to an unincorporated municipality under AS 37.05.317 for public works that is made after the date of this order and before the effective date of any applicable resident hire legislation that might be enacted:

In carrying out the provisions of this grant, grantee shall comply with all applicable and valid laws and regulations regarding the hiring of Alaska residents now in effect or that might subsequently take effect during the term of this grant. Grantee shall require its contractors for the public works carried out under this grant to comply with all applicable laws and regulations regarding the hiring of Alaska residents now in effect or that might subsequently take effect during the term of this grant. Grantee shall also require its contractors for the public works carried out under this grant to require their subcontractors to comply with all applicable laws and regulations regarding the hiring of Alaska residents now in effect or that might subsequently take effect during the term of this grant.

This Order takes effect immediately.

DATED at Juneau, Alaska, this 17th day of February, 1986.

S/S Bill Sheffield                            
Bill Sheffield                                  
Governor of the State of Alaska