This bill establishes a 30-day deadline for state agencies to pay contractors and nonprofit organizations for satisfactory performance on contracts, grants, and reimbursement agreements. Specifically, it amends AS 36.30 by adding a new section that mandates agencies to pay contractors within 30 calendar days of receiving a compliant payment request. If payment is not made within this timeframe, agencies are required to pay interest on the unpaid amount starting from the 31st calendar day. Additionally, if payment is withheld due to unsatisfactory performance or non-compliance with contract requirements, agencies must notify the contractor within eight working days, detailing the reasons for withholding payment and the necessary remedial actions.

Furthermore, the bill introduces similar provisions for grants and reimbursement agreements to nonprofit organizations, municipalities, and Alaska Native organizations under a new section added to AS 36.90. Agencies are required to pay these entities within 30 calendar days of receiving a compliant payment request, with interest accruing on late payments. The bill also specifies definitions for terms such as "agency," "grant," and "nonprofit organization," and emphasizes the need for technology upgrades at the Department of Health to implement these changes, which are intended to be funded through specific federal resources. The act is set to take effect on July 1, 2027.

Statutes affected:
HB0133A, AM HB 133, introduced 03/12/2025: 45.45.010, 36.90.200, 36.90.310, 36.30.990, 18.66.020, 37.05.315, 37.05.316, 38.05.097
HB0133B, AM CSHB 133(CRA), introduced 04/30/2025: 45.45.010, 36.90.200, 36.90.310
HB0133C, AM CSHB 133(STA), introduced 01/30/2026: 45.45.010, 36.90.200, 36.90.310, 36.30.990, 18.66.020, 37.05.315, 37.05.316, 38.05.097