Bill > HB133

This bill establishes new deadlines for state agencies to pay contractors, nonprofit organizations, municipalities, and Alaska Native organizations, with penalties for late payments. Specifically, agencies will generally have 30 calendar days to pay contractors for satisfactory work after receiving a proper payment request, and 30 calendar days for grants or reimbursement agreements with nonprofit organizations, municipalities, and Alaska Native organizations, though this latter deadline can be extended to 45 days if federal funds are involved and received later. If payments are late, agencies will owe interest at a rate specified in state law, calculated from the day after the payment was due. Agencies must also notify recipients in writing within eight working days if payment is withheld due to unsatisfactory performance or an incomplete request, detailing the reasons and required corrective actions, and will owe interest if this notification is not provided correctly. Furthermore, the bill mandates that the state's financial transactions website be updated to include information on whether payments to contractors, nonprofits, municipalities, and Alaska Native organizations are 30 or more days past due, and also requires state agencies to report to the legislature in 2027 on any late payments made during 2026, including the reasons and duration of the delays.