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HB0133G -1- SCS CSHB 133(FIN) am S
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SENATE CS FOR CS FOR HOUSE BILL NO.133(FIN) am S
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE SENATE FINANCE COMMITTEE
Amended: 5/16/26
Offered: 5/13/26
Sponsor(s): REPRESENTATIVES HIMSCHOOT, Fields, Kopp, Mears, Mina, Holland, Frier, Dibert,
Schrage, Jimmie, Josephson, Foster, Hannan, Galvin, Stutes
SENATORS Dunbar, Tobin, Kawasaki
A BILL
FOR AN ACT ENTITLED
"An Act establishing deadlines for the payment of contracts under the State 1
Procurement Code; establishing deadlines for the payment of grants, contracts, and 2
reimbursement agreements to nonprofit organizations, municipalities, and Alaska 3
Native organizations; relating to reports from state agencies to the legislature detailing 4
late payments made during 2026; relating to the state financial transactions Internet 5
website; and providing for an effective date." 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 7
* Section 1. AS 36.30 is amended by adding a new section to read: 8
Sec. 36.30.970. Payment deadline and interest. (a) An agency shall pay a 9
contractor for satisfactory performance on a contract within 45 calendar days after the 10
agency receives a payment request from the contractor that complies with the contract. 11
(b) If a contractor is not paid as required by (a) of this section, the agency 12
shall pay interest on the unpaid amount of the required payment from the 46th 13
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calendar day after the date the agency receives a payment request under (a) of this 1
section at an 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 3
if 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 7
to 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 11
agency 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 16
45th 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 18
retainage. 19
(g) This section does not apply to 20
(1) a public construction or public works contract subject to 21
AS 36.90.200; 22
(2) an agreement subject to AS 36.90.310; or 23
(3) the division in the Department of Military and Veterans' Affairs 24
that is responsible for homeland security and emergency management; however, the 25
division shall make reasonable efforts to comply with the deadlines established under 26
this section. 27
(h) In this section, "contractor" means a person who has been awarded a 28
contract with an agency. 29
* Sec. 2. AS 36.30.970(a), enacted by sec. 1 of this Act, is amended to read: 30
(a) An agency shall pay a contractor for satisfactory performance on a contract 31
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within 30 [45] calendar days after the agency receives a payment request from the 1
contractor that complies with the contract. 2
* Sec. 3. AS 36.30.970(b), enacted by sec. 1 of this Act, is amended to read: 3
(b) If a contractor is not paid as required by (a) of this section, the agency 4
shall pay interest on the unpaid amount of the required payment from the 31st [46th] 5
calendar day after the date the agency receives a payment request under (a) of this 6
section at an interest rate that is equal to the rate set out in AS 45.45.010(a). 7
* Sec. 4. AS 36.30.970(e), enacted by sec. 1 of this Act, is amended to read: 8
(e) If payment is withheld under (c) of this section, the agency shall pay the 9
withheld amount within 30 [45] calendar days after the contractor satisfactorily 10
completes the remedial actions identified in the notice. If the withheld amount is not 11
paid within the 30 [45] calendar days, the agency shall pay interest on the withheld 12
amount from the 30th [45th] calendar day at an interest rate that is equal to the rate set 13
out in AS 45.45.010(a). 14
* Sec. 5. AS 36.90 is amended by adding a new section to article 4 to read: 15
Sec. 36.90.310. Payment deadline and interest for grants and 16
reimbursement agreements to nonprofit organizations, municipalities, and 17
Alaska Native organizations. (a) An agency shall pay a nonprofit organization, 18
municipality, or Alaska Native organization for satisfactory performance of a grant or 19
reimbursement agreement within 45 calendar days after the agency receives a payment 20
request from the nonprofit organization, municipality, or Alaska Native organization 21
that complies with the grant or reimbursement agreement. If the agency uses federal 22
funds to pay the grant or reimbursement agreement, the agency shall pay for 23
satisfactory performance within 45 calendar days after the agency receives a payment 24
request that complies with the grant or reimbursement agreement, or within 45 25
calendar days after the agency receives the federal funds, whichever is later. 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 45th calendar day after the date the agency receives a payment 31
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request under (a) of this section; or 1
(2) if the agency uses federal funds to make the payment, the 45th 2
calendar day after the date the agency receives the federal funds. 3
(c) If an agency withholds payment because of unsatisfactory performance or 4
if the payment request made under (a) of this section does not comply with the 5
requirements of the grant or reimbursement agreement, within eight working days 6
after receipt of the payment request the agency shall notify the nonprofit organization, 7
municipality, or Alaska Native organization in writing stating specifically why the 8
payment is being withheld and what remedial actions may be taken by the nonprofit 9
organization, municipality, or Alaska Native organization to receive the full payment. 10
(d) If the notification by the agency required by (c) of this section does not 11
comply with (c) of this section, the agency shall pay interest on the withheld amount 12
from the eighth working day after receipt of the initial payment request until the 13
agency provides notice that does comply with (c) of this section. 14
(e) If payment is withheld under (c) of this section, the agency shall pay the 15
withheld amount within 45 calendar days after the nonprofit organization, 16
municipality, or Alaska Native organization satisfactorily completes the remedial 17
actions identified in the notice. If the withheld amount is not paid within the 45 18
calendar days, the agency shall pay interest on the withheld amount from the 45th 19
calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 20
(f) This section does not apply to the division in the Department of Military 21
and Veterans' Affairs that is responsible for homeland security and emergency 22
management. However, the division shall make reasonable efforts to comply with the 23
deadlines established under this section. 24
(g) In this section, 25
(1) "agency" has the meaning given in AS 36.30.990; 26
(2) "Alaska Native organization" has the meaning given in 27
AS 18.66.020(d); 28
(3) "grant" means a legal instrument of financial assistance between an 29
agency and a nonstate entity that is used to enter into a relationship for which the 30
principal purpose is to provide funds to the nonstate entity; "grant" does not include 31
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(A) a cooperative agreement that provides for substantial 1
involvement between the agency and the recipient in carrying out the activity 2
contemplated by the award; 3
(B) a legal instrument used by an agency to acquire property or 4
services for the direct benefit of an agency; 5
(C) cash assistance to an individual; 6
(D) a subsidy; 7
(E) a loan; 8
(F) a loan guarantee; 9
(G) insurance; 10
(H) state funding that is required annually and is calculated 11
through a formula set in statute; 12
(I) a permanent fund dividend; or 13
(J) a grant appropriated to a municipality under AS 37.05.315 14
or a named recipient under AS 37.05.316; 15
(4) "nonprofit organization" has the meaning given in 16
AS 38.05.097(c). 17
* Sec. 6. AS 36.90.310(a), enacted by sec. 5 of this Act, is amended to read: 18
(a) An agency shall pay a nonprofit organization, municipality, or Alaska 19
Native organization for satisfactory performance of a grant or reimbursement 20
agreement within 30 [45] calendar days after the agency receives a payment request 21
from the nonprofit organization, municipality, or Alaska Native organization that 22
complies with the grant or reimbursement agreement. If the agency uses federal funds 23
to pay the grant or reimbursement agreement, the agency shall pay for satisfactory 24
performance within 30 [45] calendar days after the agency receives a payment request 25
that complies with the grant or reimbursement agreement, or within 30 [45] calendar 26
days after the agency receives the federal funds, whichever is later. 27
* Sec. 7. AS 36.90.310(b), enacted by sec. 5 of this Act, is amended to read: 28
(b) If a nonprofit organization, municipality, or Alaska Native organization is 29
not paid as required by (a) of this section, the agency shall pay interest on the unpaid 30
amount of the required payment at an interest rate that is equal to the rate set out in 31
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AS 45.45.010(a) from the later of 1
(1) the 30th [45TH] calendar day after the date the agency receives a 2
payment request under (a) of this section; or 3
(2) if the agency uses federal funds to make the payment, the 30th 4
[45TH] calendar day after the date the agency receives the federal funds. 5
* Sec. 8. AS 36.90.310(e), enacted by sec. 5 of this Act, is amended to read: 6
(e) If payment is withheld under (c) of this section, the agency shall pay the 7
withheld amount within 30 [45] calendar days after the nonprofit organization, 8
municipality, or Alaska Native organization satisfactorily completes the remedial 9
actions identified in the notice. If the withheld amount is not paid within the 30 [45] 10
calendar days, the agency shall pay interest on the withheld amount from the 30th 11
[45th] calendar day at an interest rate that is equal to the rate set out in 12
AS 45.45.010(a). 13
* Sec. 9. AS 37.05.215(a) is amended to read: 14
(a) The Department of Administration shall develop, operate, and maintain a 15
searchable Internet website that is accessible to the public at no cost and that provides 16
financial information available from the central accounting system or the annual 17
financial report prepared and filed under AS 37.05.210(a)(1), describing 18
(1) unaudited state revenue for the preceding month, including 19
(A) a receipt or deposit by a state agency into a fund or account 20
established within the state treasury; 21
(B) proceeds from taxes received, categorized by source type, 22
including a compulsory contribution imposed by the state for the purpose of 23
financing services; 24
(C) state agency earnings, including amounts collected for sales 25
or services, licenses or permits issued, or otherwise received by a state agency 26
under the agency's regulations; 27
(D) revenue received for the use of state money or property, 28
including interest and lease payments; 29
(E) gifts, donations, and federal receipts; and 30
(F) other revenue; 31
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(2) unaudited expenditures for the preceding month, including 1
(A) the name and location of any person to whom payment was 2
made; 3
(B) the amount of the expenditure disbursed; 4
(C) the type of transaction, by account code, including the 5
purpose of the expenditure; 6
(D) for each payment made to a person under a contract or 7
to a nonprofit organization, municipality, or Alaska Native organization 8
under a grant or reimbursement agreement, whether the payment was 9
made 30 or more days after the payment is due; 10
(E) other information specified by the Department of 11
Administration; 12
(3) the estimated balances, for the preceding month, of the statutory 13
budget reserve fund (AS 37.05.540), the constitutional budget reserve fund (art. IX, 14
sec. 17, Constitution of the State of Alaska), and the permanent fund earnings reserve 15
account (AS 37.13.145); 16
(4) the amount deposited into the permanent fund under art. IX, sec 15, 17
Constitution of the State of Alaska for the preceding fiscal year; 18
(5) state revenue and expenditures, summarized for the preceding 19
fiscal year, as follows: 20
(A) general fund revenue sources; 21
(B) general fund expenditures categorized by function; 22
(C) general fund expenditures categorized by state agency; 23
(D) general fund expenditures categorized by account; and 24
(E) total general fund revenue versus expenditures; 25
(6) total assets versus liabilities at the end of the fiscal year; [AND] 26
(7) for the preceding 10 years, by fiscal year, the following: 27
(A) the number of full-time, part-time, and temporary 28
employees employed by the state, by state agency; 29
(B) the number of independent contractors engaged by the 30
state, by state agency; 31
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(C) the total long-term debt owed by the state, by state agency; 1
(D) total general fund expenditures; and 2
(E) total general fund payroll, by state agency; and 3
(8) payments owed to a person under a contract or to a nonprofit 4
organization, municipality, or Alaska Native organization under a grant or 5
reimbursement agreement that are 30 or more days past due. 6
* Sec. 10. AS 37.05.215(b) is amended to read: 7
(b) The Department of Administration shall update the information described 8
in (a)(1) - (3) and (8) of this section on the Internet website on a monthly basis and the 9
information described in (a)(4) - (7) of this section on an annual basis. To the extent 10
practicable, information on the website should be sorted by state agency, accounting 11
category, accounting code, recipient, purpose, amount, and date. The Department of 12
Administration shall maintain and store the information required by this section on the 13
website for at least 10 years. 14
* Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 15
read: 16
REPORT TO THE LEGISLATURE. An agency shall provide a report to the 17
legislature by the first day of the First Regular Session of the Thirty-Fifth Alaska State 18
Legislature detailing the number of late payments the agency made during 2026 to a nonprofit 19
organization, municipality, or Alaska Native organization for satisfactory performance of a 20
grant or reimbursement agreement, or to a contractor for satisfactory performance on a 21
contract, the reason the payments were late, and the length of the delays. The agency shall 22
deliver the report to the senate secretary and the chief clerk of the house of representatives 23
and notify the legislature that the report is available. In this section, 24
(1) "agency" has the meaning given in AS 36.30.990; 25
(2) "contractor" means 26
(A) a person who has been awarded a contract with an agency; or 27
(B) a prime contractor as that term is defined in AS 36.90.290; 28
(3) "grant" has the meaning given in AS 36.90.310, enacted by sec. 5 of this 29
Act; 30
(4) "nonprofit organization" has the meaning given in AS 38.05.097(c). 31
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* Sec. 12. Section 11 of this Act takes effect immediately under AS 01.10.070(c). 1
* Sec. 13. Sections 1 and 5 of this Act take effect July 1, 2027. 2
* Sec. 14. Sections 2 - 4 and 6 - 8 of this Act take effect July 1, 2028. 3