This bill establishes a 30-day deadline for state agencies to pay contractors for satisfactory performance on contracts, as well as setting similar deadlines for grants and reimbursement agreements to nonprofit organizations, municipalities, and Alaska Native organizations. Specifically, agencies must pay contractors within 30 calendar days of receiving a compliant payment request, and if payment is not made within this timeframe, interest will accrue on the unpaid amount starting from the 31st day. Additionally, if payment is withheld due to unsatisfactory performance or non-compliance with contract requirements, agencies are required to notify the contractor within eight working days, detailing the reasons for withholding payment and the necessary remedial actions.

Furthermore, the bill mandates that at least 20 percent of grants to named recipients that are not municipalities must be paid within 10 days of the grant agreement's effective date, with the remaining funds disbursed either monthly or as a lump sum. The bill also clarifies definitions related to grants and organizations involved, ensuring that the payment deadlines and interest provisions apply uniformly across various types of agreements. 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