Legislature(1995 - 1996)

1996-04-27 Senate Journal

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1996-04-27                     Senate Journal                      Page 3621
SB 318                                                                       
Forthcoming Resources Committee Substitute (page 3553) for                     
SENATE BILL NO. 318 An Act authorizing, approving, and                         
ratifying the amendment of Northstar Unit oil and gas leases between           
the State of Alaska and BP Exploration (Alaska) Inc.; and providing            
for an effective date was received today with the following                    
Resources Committee Letter of Intent:                                          
                                                                               
                                Letter of Intent                               
                                      for                                      
                                 CS for SB 318                                 
                                                                               
The legislature sets forth its intent regarding the meaning of certain         
words and phrases used in the Amendment to the Northstar Unit                  
Leases between the State of Alaska and BP Exploration (Alaska),                
Inc. (Amendment).  Specifically, the legislature sets forth its                
intent regarding Paragraph 41 of the 1980 Leases entitled                      
Employment of Alaskan Residents and Paragraph 31 of the 1983                   
Lease entitled Employment of Alaskan Residents in the                          
Amendment (collectively Employment Paragraphs).  The legislature               
intends that the Alaska residents and contractors discussed in the             
Employment Paragraphs are truly Alaskan and that Alaska residents              
throughout the state be given an opportunity to obtain employment              
on the Northstar project.                                                      
                                                                               

1996-04-27                     Senate Journal                      Page 3622
SB 318                                                                       
The legislature believes that its findings made in AS 36.10.005(a)             
(1)c(8) and (11)c(18), (c), and (d) regarding an employment                    
preference for Alaska residents on state construction projects are             
equally applicable to the Amendment.  The legislature believes that            
the state has a compelling interest in reducing the level of                   
unemployment among its residents.                                              
                                                                               
For purposes of Employment Paragraphs, the legislature intends that            
the phrases Alaska resident, residents of Alaska, and resident                 
personnel mean an individual who is physically present in the state            
with the intent to remain in the state indefinitely and to make a              
home in the state.  An individual demonstrates that intent by                  
maintaining a residence in the state for one year before the date of           
hire.  Other acceptable proof of that intent includes evidence that the        
individual:  (1) was registered to vote in Alaska for the year                 
previous to the date of hire; (2) attended school in Alaska within the         
year previous to the date of hire; (3) possessed an Alaska driver's,           
fishing, trapping, or hunting license for at least one year before the         
date of hire; or (4) received an Alaska permanent fund dividend for            
the year previous to the date of hire.  The hiring entity may also             
require that the individual state under oath that the individual is not        
claiming residency outside of the state or obtaining benefits under            
a claim of residency outside of the state.                                     
                                                                               
For purposes of the Employment Paragraphs, the legislature intends             
that the word available means Alaska residents who are located                 
anywhere in the state, not just residents located in the area of the           
state where the work is to be performed.  The legislature further              
intends that the word qualified means an individual who either                 
currently possesses the requisite education, training, skills, or              
experience to perform the work necessary for a particular position or          
is capable of performing such skills after completing one of the job           
training programs that are contemplated in the Employment                      
Paragraphs.                                                                    
                                                                               
The legislature understands that nonresidents will be hired only if            
there is no available and qualified Alaska resident to perform the             
work.  For purposes of the Employment Paragraphs, the legislature              
intends that the requirement to advertise for available positions              
locally includes advertising in newspapers and other publications              
located  throughout  the state, including  rural  areas, not  just in the      

1996-04-27                     Senate Journal                      Page 3623
SB 318                                                                       
location where the work is to be performed.  The legislature further           
intends that the requirement to use Alaska job service organizations           
includes those offices maintained by the Department of Labor whose             
functions are to aid the unemployed in finding employment and any              
job service organization located throughout the state, not just the            
location where the work is to be performed.                                    
                                                                               
For purposes of the Employment Paragraphs, the legislature intends             
that the phrases Alaska contractors and Alaska firms mean a firm               
or contractor that:                                                            
                                                                               
	(1) has held an Alaska business license for one year before                   
performing any work in connection with the Northstar leases; and               
	(2) has maintained for one year a place of business within                    
the state that deals in the supplies, services or construction of the          
nature required for the project before performing any work in                  
connection with the Northstar leases; and                                      
	(3) is                                                                        
		(a) a sole proprietorship and the proprietor is an                           
Alaska resident;                                                               
		(b) a partnership and more than fifty percent of the                         
partners are Alaska residents;                                                 
		(c) a corporation that has been incorporated in the                          
state; or                                                                      
		(d) is a joint venture composed entirely of ventures                         
that qualify under (1), (2), and (3), (a), (b), or (c) above.                  
                                                                               
For purposes of the Employment Paragraphs, the legislature intends             
that the requirements that the lessee furnish the Department of                
Labor a quarterly report regarding the Alaska residents on the leased          
area in compliance with regulations by the Commissioner of Labor               
and ªtßhe report must also include statistical data concerning the             
number of resident personnel hired within the past year for this               
lease comply with the reporting requirements of 8 AAC 30.062 and               
shall include information regarding the number of nonresidents hired           
within the past year, and the number of Alaska Contractors and non-            
Alaska contractors hired within the past year.  The legislature intends        
that the provisions of the Employment Paragraphs be enforced to the            
greatest extent permissible under the constitutions of the United              
States and the State of Alaska.