04/10/2025 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

                  HB 133-PAYMENT OF CONTRACTS                                                                               
                                                                                                                                
8:05:11 AM                                                                                                                    
                                                                                                                                
CO-CHAIR MEARS announced  that the first order  of business would                                                               
be HOUSE  BILL NO.  133, "An Act  establishing a  30-day deadline                                                               
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                                                               
payment   of   grants   to  named   recipients   that   are   not                                                               
municipalities; and providing for an effective date."                                                                           
                                                                                                                                
8:05:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HALL  moved  to   adopt  the  proposed  committee                                                               
substitute (CS) for HB 33,  Version 34-LS0114\H, Dunmire, 4/7/25,                                                               
as the working document.                                                                                                        
                                                                                                                                
CO-CHAIR MEARS objected for the purpose of discussion.                                                                          
                                                                                                                                
8:05:46 AM                                                                                                                    
                                                                                                                                
ELLA  LUBIN,  Staff,  Representative  Rebecca  Himschoot,  Alaska                                                               
State Legislature,  on behalf of Representative  Himschoot, prime                                                               
sponsor, gave an explanation of changes in Version H from the                                                                   
written explanation of changes [included in the committee                                                                       
packet], which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     In  the CS  relating  to prompt  payments  for HB  133,                                                                    
     several selections  of the  measure have  been modified                                                                    
     to   clarify   the  justifications   behind   allowable                                                                    
     electronic  device use.  Use of  electronic devices  is                                                                    
     not  restricted for  access relating  to rehabilitation                                                                    
     or compliance  with reentry and case  plans. Otherwise,                                                                    
     HB 133 remains unchanged.                                                                                                  
                                                                                                                                
     HB 133 version H includes five revisions:                                                                                  
     •  Removes all  instances of  a twenty-one-day  payment                                                                    
     deadline and replaces them  with a thirty-day deadline.                                                                    
     The standard  of prompt payment  is now expected  to be                                                                    
     fulfilled  within  thirty   days,  regardless  of  fund                                                                    
     source.                                                                                                                    
     •  Amends  AS  36.90.200   (b)  to  streamline  payment                                                                    
     deadline    with   interest    accrual   for    private                                                                    
     contractors.  The  current   language  of  the  statute                                                                    
     allows for  a liminal  period between  payment deadline                                                                    
     and the start of  interest accrual. This change removes                                                                    
     that  discrepancy and  aligns private  contractors with                                                                    
     the  provisions  for  nonprofits,  municipalities,  and                                                                    
     tribes in the original version of the bill.                                                                                
     • Replaces  "transfer anything of value"  with "provide                                                                    
     funds" as the principal purpose in the definition of                                                                       
     "grant" on page 4, line  23. This change creates a more                                                                    
     accurate definition.  Version H also removes  "to carry                                                                    
     out a  public purpose  as authorized  by law"  from the                                                                    
     definition for a more inclusive meaning of                                                                                 
     "grant".                                                                                                                   
     • Removes the  requirement that an agency  pay at least                                                                    
     twenty percent of a grant to a recipient within ten                                                                        
     days  after the  grant's  effective date.  There is  an                                                                    
     existing provision  in statute that requires  a payment                                                                    
     of   at  least   twenty   percent  of   the  grant   to                                                                    
     municipalities within ten days.                                                                                            
     • Delays the effective date to July 1, 2026.                                                                               
                                                                                                                                
CO-CHAIR MEARS removed her objection.  There being no further                                                                   
objection, Version H was before the committee.                                                                                  
                                                                                                                                
8:08:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLLAND questioned  the  intent  of removing  the                                                               
initial grant payment of at least 20 percent.                                                                                   
                                                                                                                                
MS.  LUBIN  said that  section  was  removed because  in  several                                                               
departments,  its standard  practice  to advance  a  grant by  25                                                               
percent. Consequently,  the statutory  requirement of  20 percent                                                               
payment within  10 days diminishes  standard procedures  and sets                                                               
forth an unrealistic timeline.                                                                                                  
                                                                                                                                
REPRESENTATIVE HOLLAND  asked whether any department  could still                                                               
adopt an  early or  initial payment  in the  future if  Version H                                                               
were to pass.                                                                                                                   
                                                                                                                                
MS. LUBIN  answered yes; however,  each department  has different                                                               
procedures.                                                                                                                     
                                                                                                                                
8:10:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked whether  there would be  an adjustment                                                               
to the fiscal notes.                                                                                                            
                                                                                                                                
MS. LUBIN said departments are aware of the change.                                                                             
                                                                                                                                
CO-CHAIR  MEARS announced  that  CSHB 133,  Version  G, was  held                                                               
over.