PAYMENT OF CONTRACTS, the official text

Enrolled HB 133 
 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. 
 _______________ 
 * Section 1. AS 36.30 is amended by adding a new section to read: 
 Sec. 36.30.970. Payment deadline and interest. (a) An agency shall pay a 
 contractor for satisfactory performance on a contract within 45 calendar days after the 
 agency receives a payment request from the contractor that complies with the contract. 
 (b) If a contractor is not paid as required by (a) of this section, the agency 
 shall pay interest on the unpaid amount of the required payment from the 46th

calendar day after the date the agency receives a payment request under (a) of this 
 section at an interest rate that is equal to the rate set out in AS 45.45.010(a). 
 (c) If an agency withholds payment because of unsatisfactory performance or 
 if the payment request made under (a) of this section does not comply with the 
 requirements of the contract, within eight working days after receipt of the payment 
 request, the agency shall notify the contractor in writing stating specifically why 
 payment is being withheld and what remedial actions may be taken by the contractor 
 to receive the full payment. 
 (d) If the notification by the agency required by (c) of this section does not 
 comply with (c) of this section, the agency shall pay interest on the withheld amount 
 from the eighth working day after receipt of the initial payment request until the 
 agency provides notice that does comply with (c) of this section. 
 (e) If payment is withheld under (c) of this section, the agency shall pay the 
 withheld amount within 45 calendar days after the contractor satisfactorily completes 
 the remedial actions identified in the notice. If the withheld amount is not paid within 
 the 45 calendar days, the agency shall pay interest on the withheld amount from the 
 45th calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 
 (f) The obligation to pay interest under this section does not apply to 
 retainage. 
 (g) This section does not apply to 
 (1) a public construction or public works contract subject to 
 AS 36.90.200; 
 (2) an agreement subject to AS 36.90.310; or 
 (3) the division in the Department of Military and Veterans' Affairs 
 that is responsible for homeland security and emergency management; however, the 
 division shall make reasonable efforts to comply with the deadlines established under 
 this section. 
 (h) In this section, "contractor" means a person who has been awarded a 
 contract with an agency. 
 * Sec. 2. AS 36.30.970(a), enacted by sec. 1 of this Act, is amended to read: 
 (a) An agency shall pay a contractor for satisfactory performance on a contract

within 30 [45] calendar days after the agency receives a payment request from the 
 contractor that complies with the contract. 
 * Sec. 3. AS 36.30.970(b), enacted by sec. 1 of this Act, is amended to read: 
 (b) If a contractor is not paid as required by (a) of this section, the agency 
 shall pay interest on the unpaid amount of the required payment from the 31st [46th] 
 calendar day after the date the agency receives a payment request under (a) of this 
 section at an interest rate that is equal to the rate set out in AS 45.45.010(a). 
 * Sec. 4. AS 36.30.970(e), enacted by sec. 1 of this Act, is amended to read: 
 (e) If payment is withheld under (c) of this section, the agency shall pay the 
 withheld amount within 30 [45] calendar days after the contractor satisfactorily 
 completes the remedial actions identified in the notice. If the withheld amount is not 
 paid within the 30 [45] calendar days, the agency shall pay interest on the withheld 
 amount from the 30th [45th] calendar day at an interest rate that is equal to the rate set 
 out in AS 45.45.010(a). 
 * Sec. 5. AS 36.90 is amended by adding a new section to article 4 to read: 
 Sec. 36.90.310. Payment deadline and interest for grants and 
 reimbursement agreements to nonprofit organizations, municipalities, and 
 Alaska Native organizations. (a) An agency shall pay a nonprofit organization, 
 municipality, or Alaska Native organization for satisfactory performance of a grant or 
 reimbursement agreement within 45 calendar days after the agency receives a payment 
 request from the nonprofit organization, municipality, or Alaska Native organization 
 that complies with the grant or reimbursement agreement. If the agency uses federal 
 funds to pay the grant or reimbursement agreement, the agency shall pay for 
 satisfactory performance within 45 calendar days after the agency receives a payment 
 request that complies with the grant or reimbursement agreement or within 45 
 calendar days after the agency receives the federal funds, whichever is later. 
 (b) If a nonprofit organization, municipality, or Alaska Native organization is 
 not paid as required by (a) of this section, the agency shall pay interest on the unpaid 
 amount of the required payment at an interest rate that is equal to the rate set out in 
 AS 45.45.010(a) from the later of 
 (1) the 45th calendar day after the date the agency receives a payment

request under (a) of this section; or 
 (2) if the agency uses federal funds to make the payment, the 45th 
 calendar day after the date the agency receives the federal funds. 
 (c) If an agency withholds payment because of unsatisfactory performance or 
 if the payment request made under (a) of this section does not comply with the 
 requirements of the grant or reimbursement agreement, within eight working days 
 after receipt of the payment request, the agency shall notify the nonprofit organization, 
 municipality, or Alaska Native organization in writing stating specifically why the 
 payment is being withheld and what remedial actions may be taken by the nonprofit 
 organization, municipality, or Alaska Native organization to receive the full payment. 
 (d) If the notification by the agency required by (c) of this section does not 
 comply with (c) of this section, the agency shall pay interest on the withheld amount 
 from the eighth working day after receipt of the initial payment request until the 
 agency provides notice that does comply with (c) of this section. 
 (e) If payment is withheld under (c) of this section, the agency shall pay the 
 withheld amount within 45 calendar days after the nonprofit organization, 
 municipality, or Alaska Native organization satisfactorily completes the remedial 
 actions identified in the notice. If the withheld amount is not paid within the 45 
 calendar days, the agency shall pay interest on the withheld amount from the 45th 
 calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 
 (f) This section does not apply to the division in the Department of Military 
 and Veterans' Affairs that is responsible for homeland security and emergency 
 management. However, the division shall make reasonable efforts to comply with the 
 deadlines established under this section. 
 (g) In this section, 
 (1) "agency" has the meaning given in AS 36.30.990; 
 (2) "Alaska Native organization" has the meaning given in 
 AS 18.66.020(d); 
 (3) "grant" means a legal instrument of financial assistance between an 
 agency and a nonstate entity that is used to enter into a relationship for which the 
 principal purpose is to provide funds to the nonstate entity; "grant" does not include

(A) a cooperative agreement that provides for substantial 
 involvement between the agency and the recipient in carrying out the activity 
 contemplated by the award; 
 (B) a legal instrument used by an agency to acquire property or 
 services for the direct benefit of an agency; 
 (C) cash assistance to an individual; 
 (D) a subsidy; 
 (E) a loan; 
 (F) a loan guarantee; 
 (G) insurance; 
 (H) state funding that is required annually and is calculated 
 through a formula set in statute; 
 (I) a permanent fund dividend; or 
 (J) a grant appropriated to a municipality under AS 37.05.315 
 or a named recipient under AS 37.05.316; 
 (4) "nonprofit organization" has the meaning given in 
 AS 38.05.097(c). 
 * Sec. 6. AS 36.90.310(a), enacted by sec. 5 of this Act, is amended to read: 
 (a) An agency shall pay a nonprofit organization, municipality, or Alaska 
 Native organization for satisfactory performance of a grant or reimbursement 
 agreement within 30 [45] calendar days after the agency receives a payment request 
 from the nonprofit organization, municipality, or Alaska Native organization that 
 complies with the grant or reimbursement agreement. If the agency uses federal funds 
 to pay the grant or reimbursement agreement, the agency shall pay for satisfactory 
 performance within 30 [45] calendar days after the agency receives a payment request 
 that complies with the grant or reimbursement agreement or within 30 [45] calendar 
 days after the agency receives the federal funds, whichever is later. 
 * Sec. 7. AS 36.90.310(b), enacted by sec. 5 of this Act, is amended to read: 
 (b) If a nonprofit organization, municipality, or Alaska Native organization is 
 not paid as required by (a) of this section, the agency shall pay interest on the unpaid 
 amount of the required payment at an interest rate that is equal to the rate set out in

AS 45.45.010(a) from the later of 
 (1) the 30th [45TH] calendar day after the date the agency receives a 
 payment request under (a) of this section; or 
 (2) if the agency uses federal funds to make the payment, the 30th 
 [45TH] calendar day after the date the agency receives the federal funds. 
 * Sec. 8. AS 36.90.310(e), enacted by sec. 5 of this Act, is amended to read: 
 (e) If payment is withheld under (c) of this section, the agency shall pay the 
 withheld amount within 30 [45] calendar days after the nonprofit organization, 
 municipality, or Alaska Native organization satisfactorily completes the remedial 
 actions identified in the notice. If the withheld amount is not paid within the 30 [45] 
 calendar days, the agency shall pay interest on the withheld amount from the 30th 
 [45th] calendar day at an interest rate that is equal to the rate set out in 
 AS 45.45.010(a). 
 * Sec. 9. AS 37.05.215(a) is amended to read: 
 (a) The Department of Administration shall develop, operate, and maintain a 
 searchable Internet website that is accessible to the public at no cost and that provides 
 financial information available from the central accounting system or the annual 
 financial report prepared and filed under AS 37.05.210(a)(1), describing 
 (1) unaudited state revenue for the preceding month, including 
 (A) a receipt or deposit by a state agency into a fund or account 
 established within the state treasury; 
 (B) proceeds from taxes received, categorized by source type, 
 including a compulsory contribution imposed by the state for the purpose of 
 financing services; 
 (C) state agency earnings, including amounts collected for sales 
 or services, licenses or permits issued, or otherwise received by a state agency 
 under the agency's regulations; 
 (D) revenue received for the use of state money or property, 
 including interest and lease payments; 
 (E) gifts, donations, and federal receipts; and 
 (F) other revenue;

(2) unaudited expenditures for the preceding month, including 
 (A) the name and location of any person to whom payment was 
 made; 
 (B) the amount of the expenditure disbursed; 
 (C) the type of transaction, by account code, including the 
 purpose of the expenditure; 
 (D) for each payment made to a person under a contract or 
 to a nonprofit organization, municipality, or Alaska Native organization 
 under a grant or reimbursement agreement, whether the payment was 
 made 30 or more days after the payment is due; 
 (E) other information specified by the Department of 
 Administration; 
 (3) the estimated balances, for the preceding month, of the statutory 
 budget reserve fund (AS 37.05.540), the constitutional budget reserve fund (art. IX, 
 sec. 17, Constitution of the State of Alaska), and the permanent fund earnings reserve 
 account (AS 37.13.145); 
 (4) the amount deposited into the permanent fund under art. IX, sec 15, 
 Constitution of the State of Alaska for the preceding fiscal year; 
 (5) state revenue and expenditures, summarized for the preceding 
 fiscal year, as follows: 
 (A) general fund revenue sources; 
 (B) general fund expenditures categorized by function; 
 (C) general fund expenditures categorized by state agency; 
 (D) general fund expenditures categorized by account; and 
 (E) total general fund revenue versus expenditures; 
 (6) total assets versus liabilities at the end of the fiscal year; [AND] 
 (7) for the preceding 10 years, by fiscal year, the following: 
 (A) the number of full-time, part-time, and temporary 
 employees employed by the state, by state agency; 
 (B) the number of independent contractors engaged by the 
 state, by state agency;

(C) the total long-term debt owed by the state, by state agency; 
 (D) total general fund expenditures; and 
 (E) total general fund payroll, by state agency; and 
 (8) payments owed to a person under a contract or to a nonprofit 
 organization, municipality, or Alaska Native organization under a grant or 
 reimbursement agreement that are 30 or more days past due. 
 * Sec. 10. AS 37.05.215(b) is amended to read: 
 (b) The Department of Administration shall update the information described 
 in (a)(1) - (3) and (8) of this section on the Internet website on a monthly basis and the 
 information described in (a)(4) - (7) of this section on an annual basis. To the extent 
 practicable, information on the website should be sorted by state agency, accounting 
 category, accounting code, recipient, purpose, amount, and date. The Department of 
 Administration shall maintain and store the information required by this section on the 
 website for at least 10 years. 
 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 REPORT TO THE LEGISLATURE. An agency shall provide a report to the 
 legislature by the first day of the First Regular Session of the Thirty-Fifth Alaska State 
 Legislature detailing the number of late payments the agency made during 2026 to a nonprofit 
 organization, municipality, or Alaska Native organization for satisfactory performance of a 
 grant or reimbursement agreement, or to a contractor for satisfactory performance on a 
 contract, the reason the payments were late, and the length of the delays. The agency shall 
 deliver the report to the senate secretary and the chief clerk of the house of representatives 
 and notify the legislature that the report is available. In this section, 
 (1) "agency" has the meaning given in AS 36.30.990; 
 (2) "contractor" means 
 (A) a person who has been awarded a contract with an agency; or 
 (B) a prime contractor as that term is defined in AS 36.90.290; 
 (3) "grant" has the meaning given in AS 36.90.310, enacted by sec. 5 of this 
 Act; 
 (4) "nonprofit organization" has the meaning given in AS 38.05.097(c).

* Sec. 12. Section 11 of this Act takes effect immediately under AS 01.10.070(c). 
 * Sec. 13. Sections 1 and 5 of this Act take effect July 1, 2027. 
 * Sec. 14. Sections 2 - 4 and 6 - 8 of this Act take effect July 1, 2028.