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Enrolled HB 133
LAWS OF ALASKA
2026
Source Chapter No.
SCS CSHB 133(FIN) am S _______
AN ACT
Establishing deadlines 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 reports
from state agencies to the legislature detailing late payments made during 2026; relating to the
state financial transactions Internet website; and providing for an effective date.
_______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1
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AN ACT
Establishing deadlines for the payment of contracts under the State Procurement Code; 1
establishing deadlines for the payment of grants, contracts, and reimbursement agreements to 2
nonprofit organizations, municipalities, and Alaska Native organizations; relating to reports 3
from state agencies to the legislature detailing late payments made during 2026; relating to the 4
state financial transactions Internet website; and providing for an effective date. 5
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* Section 1. AS 36.30 is amended by adding a new section to read: 7
Sec. 36.30.970. Payment deadline and interest. (a) An agency shall pay a 8
contractor for satisfactory performance on a contract within 45 calendar days after the 9
agency receives a payment request from the contractor that complies with the contract. 10
(b) If a contractor is not paid as required by (a) of this section, the agency shall 11
pay interest on the unpaid amount of the required payment from the 46th calendar day 12
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after the date the agency receives a payment request under (a) of this section at an 1
interest rate that is equal to the rate set out in AS 45.45.010(a). 2
(c) If an agency withholds payment because of unsatisfactory performance or if 3
the payment request made under (a) of this section does not comply with the 4
requirements of the contract, within eight working days after receipt of the payment 5
request, the agency shall notify the contractor in writing stating specifically why 6
payment is being withheld and what remedial actions may be taken by the contractor to 7
receive the full payment. 8
(d) If the notification by the agency required by (c) of this section does not 9
comply with (c) of this section, the agency shall pay interest on the withheld amount 10
from the eighth working day after receipt of the initial payment request until the agency 11
provides notice that does comply with (c) of this section. 12
(e) If payment is withheld under (c) of this section, the agency shall pay the 13
withheld amount within 45 calendar days after the contractor satisfactorily completes 14
the remedial actions identified in the notice. If the withheld amount is not paid within 15
the 45 calendar days, the agency shall pay interest on the withheld amount from the 45th 16
calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 17
(f) The obligation to pay interest under this section does not apply to retainage. 18
(g) This section does not apply to 19
(1) a public construction or public works contract subject to 20
AS 36.90.200; 21
(2) an agreement subject to AS 36.90.310; or 22
(3) the division in the Department of Military and Veterans' Affairs that 23
is responsible for homeland security and emergency management; however, the division 24
shall make reasonable efforts to comply with the deadlines established under this 25
section. 26
(h) In this section, "contractor" means a person who has been awarded a contract 27
with an agency. 28
* Sec. 2. AS 36.30.970(a), enacted by sec. 1 of this Act, is amended to read: 29
(a) An agency shall pay a contractor for satisfactory performance on a contract 30
within 30 [45] calendar days after the agency receives a payment request from the 31
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contractor that complies with the contract. 1
* Sec. 3. AS 36.30.970(b), enacted by sec. 1 of this Act, is amended to read: 2
(b) If a contractor is not paid as required by (a) of this section, the agency shall 3
pay interest on the unpaid amount of the required payment from the 31st [46th] calendar 4
day after the date the agency receives a payment request under (a) of this section at an 5
interest rate that is equal to the rate set out in AS 45.45.010(a). 6
* Sec. 4. AS 36.30.970(e), enacted by sec. 1 of this Act, is amended to read: 7
(e) If payment is withheld under (c) of this section, the agency shall pay the 8
withheld amount within 30 [45] calendar days after the contractor satisfactorily 9
completes the remedial actions identified in the notice. If the withheld amount is not 10
paid within the 30 [45] calendar days, the agency shall pay interest on the withheld 11
amount from the 30th [45th] calendar day at an interest rate that is equal to the rate set 12
out in AS 45.45.010(a). 13
* Sec. 5. AS 36.90 is amended by adding a new section to article 4 to read: 14
Sec. 36.90.310. Payment deadline and interest for grants and 15
reimbursement agreements to nonprofit organizations, municipalities, and Alaska 16
Native organizations. (a) An agency shall pay a nonprofit organization, municipality, 17
or Alaska Native organization for satisfactory performance of a grant or reimbursement 18
agreement within 45 calendar days after the agency receives a payment request from the 19
nonprofit organization, municipality, or Alaska Native organization that complies with 20
the grant or reimbursement agreement. If the agency uses federal funds to pay the grant 21
or reimbursement agreement, the agency shall pay for satisfactory performance within 22
45 calendar days after the agency receives a payment request that complies with the 23
grant or reimbursement agreement or within 45 calendar days after the agency receives 24
the federal funds, whichever is later. 25
(b) If a nonprofit organization, municipality, or Alaska Native organization is 26
not paid as required by (a) of this section, the agency shall pay interest on the unpaid 27
amount of the required payment at an interest rate that is equal to the rate set out in 28
AS 45.45.010(a) from the later of 29
(1) the 45th calendar day after the date the agency receives a payment 30
request under (a) of this section; or 31
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(2) if the agency uses federal funds to make the payment, the 45th 1
calendar day after the date the agency receives the federal funds. 2
(c) If an agency withholds payment because of unsatisfactory performance or if 3
the payment request made under (a) of this section does not comply with the 4
requirements of the grant or reimbursement agreement, within eight working days after 5
receipt of the payment request, the agency shall notify the nonprofit organization, 6
municipality, or Alaska Native organization in writing stating specifically why the 7
payment is being withheld and what remedial actions may be taken by the nonprofit 8
organization, municipality, or Alaska Native organization to receive the full payment. 9
(d) If the notification by the agency required by (c) of this section does not 10
comply with (c) of this section, the agency shall pay interest on the withheld amount 11
from the eighth working day after receipt of the initial payment request until the agency 12
provides notice that does comply with (c) of this section. 13
(e) If payment is withheld under (c) of this section, the agency shall pay the 14
withheld amount within 45 calendar days after the nonprofit organization, municipality, 15
or Alaska Native organization satisfactorily completes the remedial actions identified in 16
the notice. If the withheld amount is not paid within the 45 calendar days, the agency 17
shall pay interest on the withheld amount from the 45th calendar day at an interest rate 18
that is equal to the rate set out in AS 45.45.010(a). 19
(f) This section does not apply to the division in the Department of Military and 20
Veterans' Affairs that is responsible for homeland security and emergency management. 21
However, the division shall make reasonable efforts to comply with the deadlines 22
established under this section. 23
(g) In this section, 24
(1) "agency" has the meaning given in AS 36.30.990; 25
(2) "Alaska Native organization" has the meaning given in 26
AS 18.66.020(d); 27
(3) "grant" means a legal instrument of financial assistance between an 28
agency and a nonstate entity that is used to enter into a relationship for which the 29
principal purpose is to provide funds to the nonstate entity; "grant" does not include 30
(A) a cooperative agreement that provides for substantial 31
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involvement between the agency and the recipient in carrying out the activity 1
contemplated by the award; 2
(B) a legal instrument used by an agency to acquire property or 3
services for the direct benefit of an agency; 4
(C) cash assistance to an individual; 5
(D) a subsidy; 6
(E) a loan; 7
(F) a loan guarantee; 8
(G) insurance; 9
(H) state funding that is required annually and is calculated 10
through a formula set in statute; 11
(I) a permanent fund dividend; or 12
(J) a grant appropriated to a municipality under AS 37.05.315 or 13
a named recipient under AS 37.05.316; 14
(4) "nonprofit organization" has the meaning given in AS 38.05.097(c). 15
* Sec. 6. AS 36.90.310(a), enacted by sec. 5 of this Act, is amended to read: 16
(a) An agency shall pay a nonprofit organization, municipality, or Alaska Native 17
organization for satisfactory performance of a grant or reimbursement agreement within 18
30 [45] calendar days after the agency receives a payment request from the nonprofit 19
organization, municipality, or Alaska Native organization that complies with the grant 20
or reimbursement agreement. If the agency uses federal funds to pay the grant or 21
reimbursement agreement, the agency shall pay for satisfactory performance within 30 22
[45] calendar days after the agency receives a payment request that complies with the 23
grant or reimbursement agreement or within 30 [45] calendar days after the agency 24
receives the federal funds, whichever is later. 25
* Sec. 7. AS 36.90.310(b), enacted by sec. 5 of this Act, is amended to read: 26
(b) If a nonprofit organization, municipality, or Alaska Native organization is 27
not paid as required by (a) of this section, the agency shall pay interest on the unpaid 28
amount of the required payment at an interest rate that is equal to the rate set out in 29
AS 45.45.010(a) from the later of 30
(1) the 30th [45TH] calendar day after the date the agency receives a 31
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payment request under (a) of this section; or 1
(2) if the agency uses federal funds to make the payment, the 30th 2
[45TH] calendar day after the date the agency receives the federal funds. 3
* Sec. 8. AS 36.90.310(e), enacted by sec. 5 of this Act, is amended to read: 4
(e) If payment is withheld under (c) of this section, the agency shall pay the 5
withheld amount within 30 [45] calendar days after the nonprofit organization, 6
municipality, or Alaska Native organization satisfactorily completes the remedial 7
actions identified in the notice. If the withheld amount is not paid within the 30 [45] 8
calendar days, the agency shall pay interest on the withheld amount from the 30th [45th] 9
calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 10
* Sec. 9. AS 37.05.215(a) is amended to read: 11
(a) The Department of Administration shall develop, operate, and maintain a 12
searchable Internet website that is accessible to the public at no cost and that provides 13
financial information available from the central accounting system or the annual 14
financial report prepared and filed under AS 37.05.210(a)(1), describing 15
(1) unaudited state revenue for the preceding month, including 16
(A) a receipt or deposit by a state agency into a fund or account 17
established within the state treasury; 18
(B) proceeds from taxes received, categorized by source type, 19
including a compulsory contribution imposed by the state for the purpose of 20
financing services; 21
(C) state agency earnings, including amounts collected for sales 22
or services, licenses or permits issued, or otherwise received by a state agency 23
under the agency's regulations; 24
(D) revenue received for the use of state money or property, 25
including interest and lease payments; 26
(E) gifts, donations, and federal receipts; and 27
(F) other revenue; 28
(2) unaudited expenditures for the preceding month, including 29
(A) the name and location of any person to whom payment was 30
made; 31
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(B) the amount of the expenditure disbursed; 1
(C) the type of transaction, by account code, including the 2
purpose of the expenditure; 3
(D) for each payment made to a person under a contract or 4
to a nonprofit organization, municipality, or Alaska Native organization 5
under a grant or reimbursement agreement, whether the payment was 6
made 30 or more days after the payment is due; 7
(E) other information specified by the Department of 8
Administration; 9
(3) the estimated balances, for the preceding month, of the statutory 10
budget reserve fund (AS 37.05.540), the constitutional budget reserve fund (art. IX, sec. 11
17, Constitution of the State of Alaska), and the permanent fund earnings reserve 12
account (AS 37.13.145); 13
(4) the amount deposited into the permanent fund under art. IX, sec 15, 14
Constitution of the State of Alaska for the preceding fiscal year; 15
(5) state revenue and expenditures, summarized for the preceding fiscal 16
year, as follows: 17
(A) general fund revenue sources; 18
(B) general fund expenditures categorized by function; 19
(C) general fund expenditures categorized by state agency; 20
(D) general fund expenditures categorized by account; and 21
(E) total general fund revenue versus expenditures; 22
(6) total assets versus liabilities at the end of the fiscal year; [AND] 23
(7) for the preceding 10 years, by fiscal year, the following: 24
(A) the number of full-time, part-time, and temporary employees 25
employed by the state, by state agency; 26
(B) the number of independent contractors engaged by the state, 27
by state agency; 28
(C) the total long-term debt owed by the state, by state agency; 29
(D) total general fund expenditures; and 30
(E) total general fund payroll, by state agency; and 31
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(8) payments owed to a person under a contract or to a nonprofit 1
organization, municipality, or Alaska Native organization under a grant or 2
reimbursement agreement that are 30 or more days past due. 3
* Sec. 10. AS 37.05.215(b) is amended to read: 4
(b) The Department of Administration shall update the information described 5
in (a)(1) - (3) and (8) of this section on the Internet website on a monthly basis and the 6
information described in (a)(4) - (7) of this section on an annual basis. To the extent 7
practicable, information on the website should be sorted by state agency, accounting 8
category, accounting code, recipient, purpose, amount, and date. The Department of 9
Administration shall maintain and store the information required by this section on the 10
website for at least 10 years. 11
* Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 12
read: 13
REPORT TO THE LEGISLATURE. An agency shall provide a report to the legislature 14
by the first day of the First Regular Session of the Thirty-Fifth Alaska State Legislature 15
detailing the number of late payments the agency made during 2026 to a nonprofit organization, 16
municipality, or Alaska Native organization for satisfactory performance of a grant or 17
reimbursement agreement, or to a contractor for satisfactory performance on a contract, the 18
reason the payments were late, and the length of the delays. The agency shall deliver the report 19
to the senate secretary and the chief clerk of the house of representatives and notify the 20
legislature that the report is available. In this section, 21
(1) "agency" has the meaning given in AS 36.30.990; 22
(2) "contractor" means 23
(A) a person who has been awarded a contract with an agency; or 24
(B) a prime contractor as that term is defined in AS 36.90.290; 25
(3) "grant" has the meaning given in AS 36.90.310, enacted by sec. 5 of this 26
Act; 27
(4) "nonprofit organization" has the meaning given in AS 38.05.097(c). 28
* Sec. 12. Section 11 of this Act takes effect immediately under AS 01.10.070(c). 29
* Sec. 13. Sections 1 and 5 of this Act take effect July 1, 2027. 30
* Sec. 14. Sections 2 - 4 and 6 - 8 of this Act take effect July 1, 2028. 31