Bill > SB129

This bill establishes clear payment deadlines and interest requirements for state contracts, grants, and reimbursement agreements. For standard contracts, state agencies must pay contractors within 30 calendar days of receiving a compliant payment request, and if payment is late, the agency must pay interest at the legal interest rate starting from the 31st day. If an agency withholds payment due to unsatisfactory performance or non-compliant requests, they must notify the contractor within eight working days, specifying why payment is withheld and what remedial actions are needed. For grants and reimbursement agreements with nonprofit organizations, municipalities, and Alaska Native organizations, similar payment timelines apply, with slightly different terms for federally funded grants (21-day timeline instead of 30). The bill also mandates that for grants to named non-municipal recipients, at least 20% of the grant must be paid within 10 days of the grant agreement's effective date, with the remainder paid either in monthly installments based on previous month's expenditures or in a lump sum as determined by the Department of Commerce, Community, and Economic Development. These provisions aim to ensure timely and transparent financial transactions between state agencies and contractors or grant recipients.

Government Affairs

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB129