SB 129-PAYMENT OF CONTRACTS                                                                               
1:35:29 PM                                                                                                                    
CHAIR   MERRICK  reconvened   the  meeting   and  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."                                                                           
CHAIR MERRICK  said this is the  fourth hearing of SB  129 in the                                                               
Senate Community and Regional Affairs  Committee. She invited the                                                               
bill sponsor to put himself  on the record to briefly reintroduce                                                               
the bill.                                                                                                                       
1:35:52 PM                                                                                                                    
SENATOR  SCOTT KAWASAKI,  District P,  Alaska State  Legislature,                                                               
Juneau,  Alaska, sponsor  of SB  129,  expressed appreciation  to                                                               
committee  members  for  their   willingness  to  move  the  bill                                                               
forward.  He said  SB 129  is  a good  business bill  and a  good                                                               
government bill.  He explained that  the intent  of SB 129  is to                                                               
improve efficiency  and ensure  State contractors  are paid  in a                                                               
timely manner.                                                                                                                  
1:36:24 PM                                                                                                                    
CHAIR MERRICK invited committee members to ask questions.                                                                       
1:36:29 PM                                                                                                                    
SENATOR  YUNDT sought  confirmation  that SB  129 defines  prompt                                                               
payment as 30 days.                                                                                                             
1:36:40 PM                                                                                                                    
JENNA  COLQUHOUN, Staff,  Senator  Scott  Kawasaki, Alaska  State                                                               
Legislature,  Juneau,   Alaska,  answered  in   the  affirmative,                                                               
stating 30 days is the deadline.                                                                                                
1:36:50 PM                                                                                                                    
SENATOR YUNDT  expressed appreciation  for the bill's  intent but                                                               
raised concerns about the pressure  a 30-day deadline could place                                                               
on  accounting  offices.  He  said that  during  a  given  month,                                                               
accounting  offices experience  periods  of  heavy workload,  and                                                               
coupled  with   holidays,  the   30-day  deadline   could  create                                                               
complications.  He indicated  that  he  recommended an  amendment                                                               
extending the deadline to 45 to  59 days and said it is something                                                               
to consider to improve the bill.                                                                                                
1:37:48 PM                                                                                                                    
CHAIR MERRICK solicited the will of the committee.                                                                              
1:37:50 PM                                                                                                                    
SENATOR DUNBAR moved to report  SB 129, work order [34-LS0690\N,]                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s) and authorized Legislative  Legal Services to make                                                               
conforming changes.                                                                                                             
1:38:07 PM                                                                                                                    
At ease.                                                                                                                        
1:38:23 PM                                                                                                                    
[CHAIR MERRICK reconvened the meeting.]                                                                                         
SENATOR  DUNBAR  clarified that  the  work  order number  is  34-                                                               
LS0690\N.                                                                                                                       
1:38:35 PM                                                                                                                    
CHAIR MERRICK found no objection and SB 129 was reported from                                                                   
the Senate Community and Regional Affairs Standing Committee.