Bill > HB133

This bill establishes new payment deadlines and interest requirements for government contracts, grants, and reimbursement agreements in Alaska. Specifically, the legislation mandates that state agencies must pay contractors within 30 calendar days after receiving a compliant payment request, and if payment is not made on time, the agency must pay interest at the rate specified in AS 45.45.010(a). For contractors, if an agency withholds payment, they must notify the contractor within eight working days, explaining specifically why payment is being withheld and what remedial actions can be taken. Similar provisions are established for nonprofit organizations, municipalities, and Alaska Native organizations receiving grants or reimbursement agreements, with slightly different rules for payments involving federal funds. The bill defines key terms like "contractor" and "grant," excluding certain types of financial transactions such as loans, insurance, and cash assistance to individuals. The legislation provides mechanisms to ensure timely payment and transparency, with interest penalties for agencies that fail to meet the specified payment deadlines. The new rules will take effect on July 1, 2026, giving state agencies time to prepare for the new payment requirements.

Government Affairs

https://www.akleg.gov/basis/Bill/Detail/34?Root=HB133