The proposed 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. Specifically, it mandates that agencies must 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 specific provisions for grants to named recipients that are not municipalities, requiring that at least 20 percent of the grant amount be paid within 10 days of the grant agreement's effective date. The remaining funds must be disbursed either in monthly installments based on expenditures or as a lump sum, as determined by the Department of Commerce, Community, and Economic Development. The bill also clarifies definitions related to grants and organizations involved, while excluding certain types of agreements from these payment deadlines. The act is set to take effect immediately upon passage.

Statutes affected:
SB0129A, AM SB 129, 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