This bill establishes a 30-day deadline for state agencies to pay contractors for satisfactory performance on contracts, as well as for grants and reimbursement agreements with nonprofit organizations, municipalities, and Alaska Native organizations. 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, at a rate specified in AS 45.45.010(a). 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.

The bill also amends existing laws to align with these new payment deadlines and interest provisions. Specifically, it modifies AS 36.90.200(b) to change the timeline for interest payments from the 21st calendar day after payment is due to the day payment is due under the new provisions. Furthermore, it introduces a new section under AS 36.90 that outlines similar payment and interest requirements for grants and reimbursement agreements, ensuring that nonprofit organizations and municipalities are treated equitably in terms of payment timelines. The bill is set to take effect on 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