PAYMENT OF CONTRACTS, the official text

00Enrolled HB 133
01Establishing deadlines for the payment of contracts under the State Procurement Code; 
02 establishing deadlines for the payment of grants, contracts, and reimbursement agreements to 
03 nonprofit organizations, municipalities, and Alaska Native organizations; relating to reports 
04 from state agencies to the legislature detailing late payments made during 2026; relating to the 
05 state financial transactions Internet website; and providing for an effective date. 
06 _______________ 
07 * Section 1. AS 36.30 is amended by adding a new section to read: 
08 Sec. 36.30.970. Payment deadline and interest. (a) An agency shall pay a 
09 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

01calendar day after the date the agency receives a payment request under (a) of this 
02 section at an interest rate that is equal to the rate set out in AS 45.45.010(a). 
03 (c) If an agency withholds payment because of unsatisfactory performance or 
04 if the payment request made under (a) of this section does not comply with the 
05 requirements of the contract, within eight working days after receipt of the payment 
06 request, the agency shall notify the contractor in writing stating specifically why 
07 payment is being withheld and what remedial actions may be taken by the contractor 
08 to receive the full payment. 
09 (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 
12 agency 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 contractor satisfactorily completes 
15 the remedial actions identified in the notice. If the withheld amount is not paid within 
16 the 45 calendar days, the agency shall pay interest on the withheld amount from the 
17 45th calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 
18 (f) The obligation to pay interest under this section does not apply to 
19 retainage. 
20 (g) This section does not apply to 
21 (1) a public construction or public works contract subject to 
22 AS 36.90.200; 
23 (2) an agreement subject to AS 36.90.310; or 
24 (3) the division in the Department of Military and Veterans' Affairs 
25 that is responsible for homeland security and emergency management; however, the 
26 division shall make reasonable efforts to comply with the deadlines established under 
27 this section. 
28 (h) In this section, "contractor" means a person who has been awarded a 
29 contract with an agency. 
30 * Sec. 2. AS 36.30.970(a), enacted by sec. 1 of this Act, is amended to read: 
31 (a) An agency shall pay a contractor for satisfactory performance on a contract

01 within 30 [45] calendar days after the agency receives a payment request from the 
02 contractor that complies with the contract. 
03 * Sec. 3. AS 36.30.970(b), enacted by sec. 1 of this Act, is amended to read: 
04 (b) If a contractor is not paid as required by (a) of this section, the agency 
05 shall pay interest on the unpaid amount of the required payment from the 31st [46th] 
06 calendar day after the date the agency receives a payment request under (a) of this 
07 section at an interest rate that is equal to the rate set out in AS 45.45.010(a). 
08 * Sec. 4. AS 36.30.970(e), enacted by sec. 1 of this Act, is amended to read: 
09 (e) If payment is withheld under (c) of this section, the agency shall pay the 
10 withheld amount within 30 [45] calendar days after the contractor satisfactorily 
11 completes the remedial actions identified in the notice. If the withheld amount is not 
12 paid within the 30 [45] calendar days, the agency shall pay interest on the withheld 
13 amount from the 30th [45th] calendar day at an interest rate that is equal to the rate set 
14 out in AS 45.45.010(a). 
15 * Sec. 5. AS 36.90 is amended by adding a new section to article 4 to read: 
16 Sec. 36.90.310. Payment deadline and interest for grants and 
17 reimbursement agreements to nonprofit organizations, municipalities, and 
18 Alaska Native organizations. (a) An agency shall pay a nonprofit organization, 
19 municipality, or Alaska Native organization for satisfactory performance of a grant or 
20 reimbursement agreement within 45 calendar days after the agency receives a payment 
21 request from the nonprofit organization, municipality, or Alaska Native organization 
22 that complies with the grant or reimbursement agreement. If the agency uses federal 
23 funds to pay the grant or reimbursement agreement, the agency shall pay for 
24 satisfactory performance within 45 calendar days after the agency receives a payment 
25 request that complies with the grant or reimbursement agreement or within 45 
26 calendar days after the agency receives the federal funds, whichever is later. 
27 (b) If a nonprofit organization, municipality, or Alaska Native organization is 
28 not paid as required by (a) of this section, the agency shall pay interest on the unpaid 
29 amount of the required payment at an interest rate that is equal to the rate set out in 
30 AS 45.45.010(a) from the later of 
31 (1) the 45th calendar day after the date the agency receives a payment

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

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

01 AS 45.45.010(a) from the later of 
02 (1) the 30th [45TH] calendar day after the date the agency receives a 
03 payment request under (a) of this section; or 
04 (2) if the agency uses federal funds to make the payment, the 30th 
05 [45TH] calendar day after the date the agency receives the federal funds. 
06 * Sec. 8. AS 36.90.310(e), enacted by sec. 5 of this Act, is amended to read: 
07 (e) If payment is withheld under (c) of this section, the agency shall pay the 
08 withheld amount within 30 [45] calendar days after the nonprofit organization, 
09 municipality, or Alaska Native organization satisfactorily completes the remedial 
10 actions identified in the notice. If the withheld amount is not paid within the 30 [45] 
11 calendar days, the agency shall pay interest on the withheld amount from the 30th 
12 [45th] calendar day at an interest rate that is equal to the rate set out in 
13 AS 45.45.010(a). 
14 * Sec. 9. AS 37.05.215(a) is amended to read: 
15 (a) The Department of Administration shall develop, operate, and maintain a 
16 searchable Internet website that is accessible to the public at no cost and that provides 
17 financial information available from the central accounting system or the annual 
18 financial report prepared and filed under AS 37.05.210(a)(1), describing 
19 (1) unaudited state revenue for the preceding month, including 
20 (A) a receipt or deposit by a state agency into a fund or account 
21 established within the state treasury; 
22 (B) proceeds from taxes received, categorized by source type, 
23 including a compulsory contribution imposed by the state for the purpose of 
24 financing services; 
25 (C) state agency earnings, including amounts collected for sales 
26 or services, licenses or permits issued, or otherwise received by a state agency 
27 under the agency's regulations; 
28 (D) revenue received for the use of state money or property, 
29 including interest and lease payments; 
30 (E) gifts, donations, and federal receipts; and 
31 (F) other revenue;

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

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

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