CSHB 133(FIN) am: "An Act establishing deadlines for the payment of contracts under the State Procurement Code; establishing deadlines for the payment of grants, contracts, and reimbursement agreements to nonprofit organizations, municipalities, and Alaska Native organizations; relating to reports from state agencies to the legislature detailing late payments made during 2026; relating to the state financial transactions Internet website; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 133(FIN) am 01 "An Act establishing deadlines for the payment of contracts under the State 02 Procurement Code; establishing deadlines for the payment of grants, contracts, and 03 reimbursement agreements to nonprofit organizations, municipalities, and Alaska 04 Native organizations; relating to reports from state agencies to the legislature detailing 05 late payments made during 2026; relating to the state financial transactions Internet 06 website; and providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 36.30 is amended by adding a new section to read: 09 Sec. 36.30.970. Payment deadline and interest. (a) An agency shall pay a 10 contractor for satisfactory performance on a contract within 45 calendar days after the 11 agency receives a payment request from the contractor that complies with the contract. 12 (b) If a contractor is not paid as required by (a) of this section, the agency 13 shall pay interest on the unpaid amount of the required payment from the 46th
01 calendar day after the date the agency receives a payment request under (a) of this 02 section at an interest rate that is equal to the rate set out in AS 45.45.010(a). 03 (c) If an agency withholds payment because of unsatisfactory performance or 04 if the payment request made under (a) of this section does not comply with the 05 requirements of the contract, within eight working days after receipt of the payment 06 request the agency shall notify the contractor in writing stating specifically why 07 payment is being withheld and what remedial actions may be taken by the contractor 08 to receive the full payment. 09 (d) If the notification by the agency required by (c) of this section does not 10 comply with (c) of this section, the agency shall pay interest on the withheld amount 11 from the eighth working day after receipt of the initial payment request until the 12 agency provides notice that does comply with (c) of this section. 13 (e) If payment is withheld under (c) of this section, the agency shall pay the 14 withheld amount within 45 calendar days after the contractor satisfactorily completes 15 the remedial actions identified in the notice. If the withheld amount is not paid within 16 the 45 calendar days, the agency shall pay interest on the withheld amount from the 17 45th calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 18 (f) The obligation to pay interest under this section does not apply to 19 retainage. 20 (g) This section does not apply to a public construction or public works 21 contract subject to AS 36.90.200 or an agreement subject to AS 36.90.310. 22 (h) In this section, "contractor" means a person who has been awarded a 23 contract with an agency. 24 * Sec. 2. AS 36.30.970(a), enacted by sec. 1 of this Act, is amended to read: 25 (a) An agency shall pay a contractor for satisfactory performance on a contract 26 within 30 [45] calendar days after the agency receives a payment request from the 27 contractor that complies with the contract. 28 * Sec. 3. AS 36.30.970(b), enacted by sec. 1 of this Act, is amended to read: 29 (b) If a contractor is not paid as required by (a) of this section, the agency 30 shall pay interest on the unpaid amount of the required payment from the 31st [46th] 31 calendar day after the date the agency receives a payment request under (a) of this
01 section at an interest rate that is equal to the rate set out in AS 45.45.010(a). 02 * Sec. 4. AS 36.30.970(e), enacted by sec. 1 of this Act, is amended to read: 03 (e) If payment is withheld under (c) of this section, the agency shall pay the 04 withheld amount within 30 [45] calendar days after the contractor satisfactorily 05 completes the remedial actions identified in the notice. If the withheld amount is not 06 paid within the 30 [45] calendar days, the agency shall pay interest on the withheld 07 amount from the 30th [45th] calendar day at an interest rate that is equal to the rate set 08 out in AS 45.45.010(a). 09 * Sec. 5. AS 36.90 is amended by adding a new section to article 4 to read: 10 Sec. 36.90.310. Payment deadline and interest for grants and 11 reimbursement agreements to nonprofit organizations, municipalities, and 12 Alaska Native organizations. (a) An agency shall pay a nonprofit organization, 13 municipality, or Alaska Native organization for satisfactory performance of a grant or 14 reimbursement agreement within 45 calendar days after the agency receives a payment 15 request from the nonprofit organization, municipality, or Alaska Native organization 16 that complies with the grant or reimbursement agreement. If the agency uses federal 17 funds to pay the grant or reimbursement agreement, the agency shall pay for 18 satisfactory performance within 45 calendar days after the agency receives a payment 19 request that complies with the grant or reimbursement agreement, or within 45 20 calendar days after the agency receives the federal funds, whichever is later. A 21 payment made under this section to a nonprofit organization, municipality, or Alaska 22 Native organization may not be used in a manner that conflicts with art. VIII, sec. 1, 23 Constitution of the State of Alaska. A recipient of a payment under this section shall 24 comply with this subsection as a condition of receiving payment. 25 (b) If a nonprofit organization, municipality, or Alaska Native organization is 26 not paid as required by (a) of this section, the agency shall pay interest on the unpaid 27 amount of the required payment at an interest rate that is equal to the rate set out in 28 AS 45.45.010(a) from 29 (1) the 45th calendar day after the date the agency receives a payment 30 request under (a) of this section if the agency uses federal funds to make the payment; 31 (2) the 45th calendar day after the date the agency receives a payment
01 request under (a) of this section for all other payments for grants and reimbursement 02 agreements. 03 (c) If an agency withholds payment because of unsatisfactory performance or 04 if the payment request made under (a) of this section does not comply with the 05 requirements of the grant or reimbursement agreement, within eight working days 06 after receipt of the payment request the agency shall notify the nonprofit organization, 07 municipality, or Alaska Native organization in writing stating specifically why the 08 payment is being withheld and what remedial actions may be taken by the nonprofit 09 organization, municipality, or Alaska Native organization to receive the full payment. 10 (d) If the notification by the agency required by (c) of this section does not 11 comply with (c) of this section, the agency shall pay interest on the withheld amount 12 from the eighth working day after receipt of the initial payment request until the 13 agency provides notice that does comply with (c) of this section. 14 (e) If payment is withheld under (c) of this section, the agency shall pay the 15 withheld amount within 45 calendar days after the nonprofit organization, 16 municipality, or Alaska Native organization satisfactorily completes the remedial 17 actions identified in the notice. If the withheld amount is not paid within the 45 18 calendar days, the agency shall pay interest on the withheld amount from the 45th 19 calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 20 (f) In this section, 21 (1) "agency" has the meaning given in AS 36.30.990; 22 (2) "Alaska Native organization" has the meaning given in 23 AS 18.66.020(d); 24 (3) "grant" means a legal instrument of financial assistance between an 25 agency and a nonstate entity that is used to enter into a relationship for which the 26 principal purpose is to provide funds to the nonstate entity; "grant" does not include 27 (A) a cooperative agreement that provides for substantial 28 involvement between the agency and the recipient in carrying out the activity 29 contemplated by the award; 30 (B) a legal instrument used by an agency to acquire property or 31 services for the direct benefit of an agency;
01 (C) cash assistance to an individual; 02 (D) a subsidy; 03 (E) a loan; 04 (F) a loan guarantee; 05 (G) insurance; 06 (H) state funding that is required annually and is calculated 07 through a formula set in statute; 08 (I) a permanent fund dividend; or 09 (J) a grant appropriated to a municipality under AS 37.05.315 10 or a named recipient under AS 37.05.316; 11 (4) "nonprofit organization" has the meaning given in 12 AS 38.05.097(c). 13 * Sec. 6. AS 36.90.310(a), enacted by sec. 5 of this Act, is amended to read: 14 (a) An agency shall pay a nonprofit organization, municipality, or Alaska 15 Native organization for satisfactory performance of a grant or reimbursement 16 agreement within 30 [45] calendar days after the agency receives a payment request 17 from the nonprofit organization, municipality, or Alaska Native organization that 18 complies with the grant or reimbursement agreement. If the agency uses federal funds 19 to pay the grant or reimbursement agreement, the agency shall pay for satisfactory 20 performance within 30 [45] calendar days after the agency receives a payment request 21 that complies with the grant or reimbursement agreement, or within 30 [45] calendar 22 days after the agency receives the federal funds, whichever is later. 23 * Sec. 7. AS 36.90.310(b), enacted by sec. 5 of this Act, is amended to read: 24 (b) If a nonprofit organization, municipality, or Alaska Native organization is 25 not paid as required by (a) of this section, the agency shall pay interest on the unpaid 26 amount of the required payment at an interest rate that is equal to the rate set out in 27 AS 45.45.010(a) from 28 (1) the 30th [45th] calendar day after the date the agency receives a 29 payment request under (a) of this section if the agency uses federal funds to make the 30 payment; 31 (2) the 30th [45th] calendar day after the date the agency receives a
01 payment request under (a) of this section for all other payments for grants and 02 reimbursement agreements. 03 * Sec. 8. AS 36.90.310(e), enacted by sec. 5 of this Act, is amended to read: 04 (e) If payment is withheld under (c) of this section, the agency shall pay the 05 withheld amount within 30 [45] calendar days after the nonprofit organization, 06 municipality, or Alaska Native organization satisfactorily completes the remedial 07 actions identified in the notice. If the withheld amount is not paid within the 30 [45] 08 calendar days, the agency shall pay interest on the withheld amount from the 30th 09 [45th] calendar day at an interest rate that is equal to the rate set out in 10 AS 45.45.010(a). 11 * Sec. 9. AS 37.05.215(a) is amended to read: 12 (a) The Department of Administration shall develop, operate, and maintain a 13 searchable Internet website that is accessible to the public at no cost and that provides 14 financial information available from the central accounting system or the annual 15 financial report prepared and filed under AS 37.05.210(a)(1), describing 16 (1) unaudited state revenue for the preceding month, including 17 (A) a receipt or deposit by a state agency into a fund or account 18 established within the state treasury; 19 (B) proceeds from taxes received, categorized by source type, 20 including a compulsory contribution imposed by the state for the purpose of 21 financing services; 22 (C) state agency earnings, including amounts collected for sales 23 or services, licenses or permits issued, or otherwise received by a state agency 24 under the agency's regulations; 25 (D) revenue received for the use of state money or property, 26 including interest and lease payments; 27 (E) gifts, donations, and federal receipts; and 28 (F) other revenue; 29 (2) unaudited expenditures for the preceding month, including 30 (A) the name and location of any person to whom payment was 31 made;
01 (B) the amount of the expenditure disbursed; 02 (C) the type of transaction, by account code, including the 03 purpose of the expenditure; 04 (D) for each payment made to a person under a contract or 05 to a nonprofit organization, municipality, or Alaska Native organization 06 under a grant or reimbursement agreement, whether the payment was 07 made 30 or more days after the payment is due; 08 (E) other information specified by the Department of 09 Administration; 10 (3) the estimated balances, for the preceding month, of the statutory 11 budget reserve fund (AS 37.05.540), the constitutional budget reserve fund (art. IX, 12 sec. 17, Constitution of the State of Alaska), and the permanent fund earnings reserve 13 account (AS 37.13.145); 14 (4) the amount deposited into the permanent fund under art. IX, sec 15, 15 Constitution of the State of Alaska for the preceding fiscal year; 16 (5) state revenue and expenditures, summarized for the preceding 17 fiscal year, as follows: 18 (A) general fund revenue sources; 19 (B) general fund expenditures categorized by function; 20 (C) general fund expenditures categorized by state agency; 21 (D) general fund expenditures categorized by account; and 22 (E) total general fund revenue versus expenditures; 23 (6) total assets versus liabilities at the end of the fiscal year; [AND] 24 (7) for the preceding 10 years, by fiscal year, the following: 25 (A) the number of full-time, part-time, and temporary 26 employees employed by the state, by state agency; 27 (B) the number of independent contractors engaged by the 28 state, by state agency; 29 (C) the total long-term debt owed by the state, by state agency; 30 (D) total general fund expenditures; and 31 (E) total general fund payroll, by state agency; and
01 (8) payments owed to a person under a contract or to a nonprofit 02 organization, municipality, or Alaska Native organization under a grant or 03 reimbursement agreement that are 30 or more days past due. 04 * Sec. 10. AS 37.05.215(b) is amended to read: 05 (b) The Department of Administration shall update the information described 06 in (a)(1) - (3) and (8) of this section on the Internet website on a monthly basis and the 07 information described in (a)(4) - (7) of this section on an annual basis. To the extent 08 practicable, information on the website should be sorted by state agency, accounting 09 category, accounting code, recipient, purpose, amount, and date. The Department of 10 Administration shall maintain and store the information required by this section on the 11 website for at least 10 years. 12 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 REPORT TO THE LEGISLATURE. An agency shall provide a report to the 15 legislature by the first day of the First Regular Session of the Thirty-Fifth Alaska State 16 Legislature detailing the number of late payments the agency made during 2026 to a nonprofit 17 organization, municipality, or Alaska Native organization for satisfactory performance of a 18 grant or reimbursement agreement, or to a contractor for satisfactory performance on a 19 contract, the reason the payments were late, and the length of the delays. The agency shall 20 deliver the report to the senate secretary and the chief clerk of the house of representatives 21 and notify the legislature that the report is available. In this section, 22 (1) "agency" has the meaning given in AS 36.30.990; 23 (2) "contractor" means 24 (A) a person who has been awarded a contract with an agency; or 25 (B) a prime contractor as that term is defined in AS 36.90.290; 26 (3) "grant" has the meaning given in AS 36.90.310, enacted by sec. 5 of this 27 Act; 28 (4) "nonprofit organization" has the meaning given in AS 38.05.097(c). 29 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 APPLICABILITY: CONTRACTS. AS 36.90.310, enacted by sec. 5 of this Act,
01 applies to a grant or reimbursement agreement entered into or renewed on or after the 02 effective date of sec. 5 of this Act. 03 * Sec. 13. Section 11 of this Act takes effect immediately under AS 01.10.070(c). 04 * Sec. 14. Sections 1 and 5 of this Act take effect July 1, 2027. 05 * Sec. 15. Sections 2 - 4 and 6 - 8 of this Act take effect July 1, 2028.