Legislature(2025 - 2026)GRUENBERG 120
01/29/2026 03:15 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB133 | |
| HB81 | |
| HB124 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 133 | TELECONFERENCED | |
| += | HB 124 | TELECONFERENCED | |
| += | HB 202 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 81 | TELECONFERENCED | |
HB 133-PAYMENT OF CONTRACTS
3:19:55 PM
CHAIR CARRICK 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." [Before
the committee, adopted as a working document on 1/22/26, was the
proposed committee substitute (CS) for HB 133, Version 34-
LS0114\L, Dunmire, 1/20/26 ("Version L").]
3:20:20 PM
CHAIR CARRICK moved to adopt Amendment 1 to HB 133, Version L,
labelled 34-LS0114\l.1, Dunmire, 1/26/26, which read:
Page 1, line 4, following "organizations;":
Insert "relating to technology upgrades at the
Department of Health;"
Page 4, following line 20:
Insert a new bill section to read:
"* Sec. 3. The uncodified law of the State of
Alaska is amended by adding a new section to read:
TRANSITION: FUNDING OF TECHNOLOGY UPGRADES. It is
the intent of the legislature that technology upgrades
the Department of Health needs to implement this Act
will be funded using funds received under sec. 71401,
P.L. 119-21 (Rural Health Transformation Program)."
Renumber the following bill section accordingly.
CHAIR CARRICK objected for discussion.
3:20:36 PM
The committee took an at-ease at 3:20.
3:20:51 PM
CHAIR CARRICK said she seeks to address the main cost driver for
this bill which is Department of Health grants administration.
One cost identified in the Department of Health was necessary
technology upgrades. Amendment 1 identifies the Rural Health
Transformation Program as one possible funding source for
technology upgrades. This amendment is just intent language.
She hopes as the finance committee considers this bill that the
finance committee might consider the Rural Health Transformation
Program to address these cost drivers.
REPRESENTATIVE VANCE asked if technology upgrades are an
acceptable use of the Rural Health Transformation Program funds.
CHAIR CARRICK replied that funds can't be used for capital
improvements like building costs or hardware. She said the fund
could be used for software costs. She stated that the
technology upgrades would be within the parameters of the Rural
Health Transformation Program funds. She just wants to make it
clear that this could be a potential fund source to make prompt
payments in the future.
3:23:40 PM
CHAIR CARRICK ascertained there was no further discussion on
Amendment 1.
CHAIR CARRICK removed her objection to Amendment 1. There being
no further objection, Amendment 1 was adopted.
3:24:00 PM
REPRESENTATIVE MCCABE said he would not be offering Amendment 2.
3:24:10 PM
REPRESENTATIVE MCCABE moved to adopt Amendment 3 to HB 133,
Version L, as amended, labeled 34-LS0114\L.3, Dunmire, 1/29/26,
which read:
Page 1, line 3:
Delete "nonprofit organizations, municipalities,"
Insert "municipalities"
Page 2, line 23:
Delete "nonprofit organizations, municipalities,"
Insert "municipalities"
Page 2, lines 24 - 25:
Delete "nonprofit organization, municipality,"
Insert "municipality"
Page 2, line 27:
Delete "nonprofit organization, municipality,"
Insert "municipality"
Page 3, line 2:
Delete "nonprofit organization, municipality,"
Insert "municipality"
Page 3, lines 14 - 15:
Delete "nonprofit organization, municipality,"
Insert "municipality"
Page 3, lines 16 - 17:
Delete "nonprofit organization, municipality,"
Insert "municipality"
Page 3, lines 23 - 24:
Delete "nonprofit organization, municipality,"
Insert "municipality"
Page 4, line 18:
Delete ";"
Insert "."
Page 4, lines 19 - 20:
Delete all material.
CHAIR CARRICK objected for discussion.
REPRESENTATIVE MCCABE stated that Amendment 3 addresses an
unintended consequence to HB 133. As written, the bill applies
prompt payment penalties not only to private venders and
municipalities but also to nonprofit organizations
("nonprofits"). He stated that the state always should be
paying bills on time. However, Alaska has 6,300 nonprofits,
many of which already receive state funding. He stated unlike
businesses, non-profit often requires reimbursement, reporting
requirements, and compliance review. He said this may delay the
payment due to no fault of the state. This amendment removes
nonprofits from the penalties. Prompt payment laws are designed
for private commerce, not nonprofits as partners of the state.
Alaska has 6,300 nonprofits and will create a significant fiscal
problem and administrative backlog. By exempting nonprofits
from the penalty provisions, it strengthens the proposed
legislation.
REPRESENTATIVE HOLLAND said he is speaking in opposition to
Amendment 3. He has spent nearly 40 years in nonprofits as a
volunteer, board member, and executive director. Nonprofits are
essential to Alaska's communities getting work done in the
community that wouldn't otherwise be done. Nonprofits operate
as a business with vendors that need to be paid on time. He
said nonprofits have greater challenges in trying to find the
working capital. He asked how nonprofits are going to be able
to pay employees on time. Alaska's nonprofits absolutely need
to be treated as well as municipalities. The compliance side is
difficult, but the hard part is at the front-end of contracts.
The day-to-day work of getting paid should be done on time.
REPRESENTATIVE HIMSCHOOT said she hopes that nonprofits are
spending their money on their mission. She named many
nonprofits as examples. This bill is for tribes, non-profits,
and municipalities who tend to not have a margin - organizations
doing work for the state that the state cannot do. She stated
the 6,300 nonprofit organizations do not represent the number
receiving funding. She is opposed to this Amendment 3.
REPRESENTATIVE ST. CLAIR stated that he supports Amendment 3.
There are so many unknowns to this bill. He asked when the 30
days start. He stated that nonprofits need to be exempt from
this bill.
REPRESENTATIVE MCCABE stated that nonprofits are many different
sizes, not all are small. Providence Hospital is a nonprofit.
He stated that the state absolutely needs to pay bills on time.
This bill would be the status quo for the nonprofits. The bills
to the state are probably small. He stated that there is a
difference between business and nonprofits.
3:33:45 PM
CHAIR CARRICK says she recognizes the intent of Amendment 3.
All the nonprofits heard from were smaller. She asked if
Representative McCabe could work with the sponsor to narrow the
nonprofits.
REPRESENTATIVE MCCABE stated this amendment simply removes the
nonprofits.
3:35:33 PM
A roll call vote was taken. Representatives Vance, McCabe, and
St. Clair voted in favor of Amendment 3. Representatives
Himschoot, Holland, Story, and Carrick voted against it.
Therefore, Amendment 3 failed to be adopted by a vote of 3-4.
CHAIR CARRICK asked for any final discussion on HB 133, Version
L, as amended.
REPRESENTATIVE HOLLAND stated that he is in support of moving
the bill out of committee. The fiscal impacts will be important
for the House Finance Committee to work on. The fiscal notes
have a great deal of disparity. The paying of bills on time
should not take a fiscal note. The staff in the agencies should
support paying bills on time. If there is a problem paying the
bills on time, then look at the workflow and technologies
needed.
REPRESENTATIVE ST. CLAIR agreed with his counterpart. The
fiscal notes are indeterminate. The number of late payments was
very different from the agencies. He stated that the committee
doesn't have all the information needed right now. As it
stands, he can't support this bill.
REPRESENTATIVE MCCABE stated he has a huge problem with
automatic penalties. This is a poor way to do government, and
there is a better way to meet the state's fiduciary
responsibilities to pay bills on time. He said automatic
penalties on the state could cost the state a whole lot of
money. He stated that he can't support running government this
way.
REPRESENTATIVE VANCE said everyone has highlighted the truth
about this bill. It is noted that agencies are struggling. On
the fiscal notes, look at the number of position control numbers
(PCNs) that are there. She further stated how many are not
filled and the funding is there. The agencies still need the
staff to keep the workflow going. Some agencies have
implemented newer technologies, programs, and artificial
intelligence (AI) to address some of the issues. She
appreciates the sponsor bringing this forward. She agrees with
Representative McCabe that having a penalty may not be the best
avenue. Her recommendation is to seek out available PCNs and
update fiscal notes.
REPRESENTATIVE STORY said she wanted to highlight an earlier
discussion about finding out how many penalties the state is
paying.
REPRESENTATIVE ST. CLAIR state there are seven PCNs requested.
The question is whether the agencies need additional people or
think that payments are not going to go out on time.
CHAIR CARRICK stated that she appreciated the work by this
committee. She agrees that the state should pay its bills on
time. She has heard in her office from municipalities,
nonprofits, and tribal organizations that it wasn't working for
them. This legislation tries a different approach to address
the issue.
REPRESENTATIVE HIMSCHOOT echoed what Chair Carrick said. It is
important that agencies have the staffing necessary. She said
if the legislature wants government to run more like business,
then the state needs to pay on time.
3:47:00 PM
REPRESENTATIVE STORY moved to report HB 133, Version L, as
amended, out of committee with individual recommendations and
the accompanying fiscal notes and to authorize Legislative Legal
Services to make any necessary or conforming changes.
REPRESENTATIVE MCCABE objected.
3:47:28 PM
A roll call vote was taken. Representatives Story, Himschoot,
Holland, and Carrick voted in favor of the motion to report HB
133, Version L, as amended, out of committee with individual
recommendations and the accompanying fiscal notes.
Representatives Vance, McCabe, and St. Clair voted against it.
Therefore, CSHB 133(STA) was reported out of the House State
Affairs Standing Committee by a vote of 4-3.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB133-DOA-OPPM-1-20-26.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 133 |
| HB 133 Amendment 1 HSTA.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 133 |
| HB 133 Amendment 2 HSTA.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 133 |
| HB 81 Amendment 1 HSTA.pdf |
HJUD 2/2/2026 1:00:00 PM HSTA 1/29/2026 3:15:00 PM |
HB 81 |
| HB 124 Written Testimony Rec'd 1-29-26.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 124 |
| HB 124 Backup AFA Letter 1-27-26.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 124 |
| HB 124 Backup BHA Letter 1-27-26.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 124 |
| HB 124 Backup Trustees of Alaska Letter 1-28-26.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 124 |
| HB 124 Backup PFM Memorandum AIDEA Dividend and Appropriation Unrestricted Receipts 4-25-25.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 124 |
| HB 133 Amendment 3 HSTA.pdf |
HSTA 1/29/2026 3:15:00 PM |
HB 133 |