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 to 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. 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 regarding interest payments for prime contractors, changing the timeline for interest accrual from the 21st calendar day to the 30th calendar day after payment is due. It includes provisions for interest payments on withheld amounts if the agency fails to provide proper notification. The definitions of "grant" and "nonprofit organization" are clarified, and the bill specifies that it does not apply to public construction or public works contracts. The effective date of the bill 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