04/29/2025 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

                  SB 129-PAYMENT OF CONTRACTS                                                                               
                                                                                                                                
2:11:49 PM                                                                                                                    
CHAIR MERRICK announced  the consideration of SENATE  BILL NO. 129                                                              
"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."                                                                           
                                                                                                                                
2:12:06 PM                                                                                                                    
SENATOR  SCOTT KAWASAKI,  District  P, Alaska  State  Legislature,                                                              
Juneau,  Alaska,   expressed  appreciation   for  the   discussion                                                              
related  to  contracts and  late  payments.  He pointed  out  that                                                              
several  states do  have prompt  payment  legislation. He  offered                                                              
New York  State as an  example and shared  about an  annual report                                                              
outlining  how  well  payment processes  are  working  within  the                                                              
State of  New York. He commented  that current payment  timeframes                                                              
in the  State of Alaska  are similar to  those of New  York State.                                                              
He acknowledged  that there  are many  different reasons  for late                                                              
payments.  He  opined that  budget  challenges  create  additional                                                              
tension.  He expressed support  for the  non-profit agencies  that                                                              
rely on  prompt payment  to provide services.  He opined  that, if                                                              
state  agencies, the  administration, and  the State's  non-profit                                                              
partners  work together,  a  solution  is possible.  He  indicated                                                              
that the  discussions surrounding SB  129 have been a  step toward                                                              
finding a solution.                                                                                                             
                                                                                                                                
2:15:01 PM                                                                                                                    
CHAIR MERRICK held SB 129 in committee.                                                                                         
                                                                                                                                
2:15:13 PM                                                                                                                    
There  being no  further business  to come  before the  committee,                                                              
Chair  Merrick   adjourned  the  Senate  Community   and  Regional                                                              
Affairs Standing Committee meeting at 2:15 p.m.