This bill establishes a 30-day deadline for agencies to pay contractors for satisfactory performance on contracts under the State Procurement Code. It mandates that agencies must pay contractors within 30 calendar days after 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. If the agency fails to provide proper notification, interest will accrue on the withheld amount.

The bill also extends similar payment deadlines and interest provisions to grants and reimbursement agreements involving nonprofit organizations, municipalities, and Alaska Native organizations. Agencies are required to pay these entities within 30 calendar days of receiving a compliant payment request, with interest accruing if payment is delayed. The bill clarifies definitions related to grants and specifies that certain types of financial assistance do not fall under this definition. The effective date for this legislation is set for July 1, 2026.

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