Legislature(1995 - 1996)
1996-04-27 Senate Journal
Full Journal pdf1996-04-27 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.