Alaska 2025-2026 Regular Session

Alaska House Bill HB133 Compare Versions

Only one version of the bill is available at this time.

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2	2	HB0133a -1- HB 133
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11	11	HOUSE BILL NO. 133
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13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-FOURTH LEGISLATURE - FIRST SESSION
16	16
17	17	BY REPRESENTATIVES HIMSCHOOT, Fields
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19	19	Introduced: 3/12/25
20	20	Referred: Community and Regional Affairs, State Affairs
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22	22
23	23	A BILL
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25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act establishing a 30-day deadline for the payment of contracts under the State 1
28	28	Procurement Code; establishing deadlines for the payment of grants, contracts, and 2
29	29	reimbursement agreements to nonprofit organizations, municipalities, and Alaska 3
30	30	Native organizations; relating to payment of grants to named recipients that are not 4
31	31	municipalities; and providing for an effective date." 5
32	32	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6
33	33	* Section 1. AS 36.30 is amended by adding a new section to read: 7
34	34	Sec. 36.30.970. Payment deadline and interest. (a) An agency shall pay a 8
35	35	contractor for satisfactory performance on a contract within 30 calendar days after the 9
36	36	agency receives a payment request from the contractor that complies with the contract. 10
37	37	(b) If a contractor is not paid as required by (a) of this section, the agency 11
38	38	shall pay interest on the unpaid amount of the required payment from the 31st calendar 12
39	39	day after the date the agency receives a payment request under (a) of this section at an 13 34-LS0114\G
40	40	HB 133 -2- HB0133a
41	41	New Text Underlined [DELETED TEXT BRACKETED]
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43	43	interest rate that is equal to the rate set out in AS 45.45.010(a). 1
44	44	(c) If an agency withholds payment because of unsatisfactory performance or 2
45	45	if the payment request made under (a) of this section does not comply with the 3
46	46	requirements of the contract, within eight working days after receipt of the payment 4
47	47	request the agency shall notify the contractor in writing stating specifically why 5
48	48	payment is being withheld and what remedial actions may be taken by the contractor 6
49	49	to receive the full payment. 7
50	50	(d) If the notification by the agency required by (c) of this section does not 8
51	51	comply with (c) of this section, the agency shall pay interest on the withheld amount 9
52	52	from the eighth working day after receipt of the initial payment request until the 10
53	53	agency provides notice that does comply with (c) of this section. 11
54	54	(e) If payment is withheld under (c) of this section, the agency shall pay the 12
55	55	withheld amount within 21 calendar days after the contractor satisfactorily completes 13
56	56	the remedial actions identified in the notice. If the withheld amount is not paid within 14
57	57	the 21 calendar days, the agency shall pay interest on the withheld amount from the 15
58	58	21st calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 16
59	59	(f) The obligation to pay interest under this section does not apply to 17
60	60	retainage. 18
61	61	(g) This section does not apply to a public construction or public works 19
62	62	contract subject to AS 36.90.200 or an agreement subject to AS 36.90.310. 20
63	63	(h) In this section, "contractor" means a person who has been awarded a 21
64	64	contract with an agency. 22
65	65	* Sec. 2. AS 36.90 is amended by adding a new section to article 4 to read: 23
66	66	Sec. 36.90.310. Payment deadline and interest for grants and 24
67	67	reimbursement agreements to nonprofit organizations, municipalities, and 25
68	68	Alaska Native organizations. (a) An agency shall pay a nonprofit organization, 26
69	69	municipality, or Alaska Native organization for satisfactory performance of a grant or 27
70	70	reimbursement agreement within 30 calendar days after the agency receives a payment 28
71	71	request from the nonprofit organization, municipality, or Alaska Native organization 29
72	72	that complies with the grant or reimbursement agreement. If the agency uses federal 30
73	73	funds to pay the grant or reimbursement agreement, the agency shall pay for
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75	75	HB0133a -3- HB 133
76	76	New Text Underlined [DELETED TEXT BRACKETED]
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78	78	satisfactory performance within 21 calendar days after the agency receives a payment 1
79	79	request that complies with the grant or reimbursement agreement, or within 21 2
80	80	calendar days after the agency receives the federal funds, whichever is later. 3
81	81	(b) If a nonprofit organization, municipality, or Alaska Native organization is 4
82	82	not paid as required by (a) of this section, the agency shall pay interest on the unpaid 5
83	83	amount of the required payment at an interest rate that is equal to the rate set out in 6
84	84	AS 45.45.010(a) from 7
85	85	(1) the 21st calendar day after the date the agency receives a payment 8
86	86	request under (a) of this section if the agency uses federal funds to make the payment; 9
87	87	(2) the 30th calendar day after the date the agency receives a payment 10
88	88	request under (a) of this section for all other payments for grants and reimbursement 11
89	89	agreements. 12
90	90	(c) If an agency withholds payment because of unsatisfactory performance or 13
91	91	if the payment request made under (a) of this section does not comply with the 14
92	92	requirements of the grant or reimbursement agreement, within eight working days 15
93	93	after receipt of the payment request the agency shall notify the nonprofit organization, 16
94	94	municipality, or Alaska Native organization in writing stating specifically why the 17
95	95	payment is being withheld and what remedial actions may be taken by the nonprofit 18
96	96	organization, municipality, or Alaska Native organization to receive the full payment. 19
97	97	(d) If the notification by the agency required by (c) of this section does not 20
98	98	comply with (c) of this section, the agency shall pay interest on the withheld amount 21
99	99	from the eighth working day after receipt of the initial payment request until the 22
100	100	agency provides notice that does comply with (c) of this section. 23
101	101	(e) If payment is withheld under (c) of this section, the agency shall pay the 24
102	102	withheld amount within 21 calendar days after the nonprofit organization, 25
103	103	municipality, or Alaska Native organization satisfactorily completes the remedial 26
104	104	actions identified in the notice. If the withheld amount is not paid within the 21 27
105	105	calendar days, the agency shall pay interest on the withheld amount from the 21st 28
106	106	calendar day at an interest rate that is equal to the rate set out in AS 45.45.010(a). 29
107	107	(f) In this section, 30
108	108	(1) "agency" has the meaning given in AS 36.30.990; 31 34-LS0114\G
109	109	HB 133 -4- HB0133a
110	110	New Text Underlined [DELETED TEXT BRACKETED]
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112	112	(2) "Alaska Native organization" has the meaning given in 1
113	113	AS 18.66.020(d); 2
114	114	(3) "grant" means a legal instrument of financial assistance between an 3
115	115	agency and a nonstate entity that is used to enter into a relationship for which the 4
116	116	principal purpose is to transfer anything of value from an agency to the recipient to 5
117	117	carry out a public purpose authorized by law; "grant" does not include 6
118	118	(A) a cooperative agreement that provides for substantial 7
119	119	involvement between the agency and the recipient in carrying out the activity 8
120	120	contemplated by the award; 9
121	121	(B) a legal instrument used by an agency to acquire property or 10
122	122	services for the direct benefit of an agency; 11
123	123	(C) cash assistance to an individual; 12
124	124	(D) a subsidy; 13
125	125	(E) a loan; 14
126	126	(F) a loan guarantee; 15
127	127	(G) insurance; 16
128	128	(H) state funding that is required annually and is calculated 17
129	129	through a formula set in statute; 18
130	130	(I) a permanent fund dividend; or 19
131	131	(J) a grant appropriated to a municipality under AS 37.05.315 20
132	132	or a named recipient under AS 37.05.316; 21
133	133	(4) "nonprofit organization" has the meaning given in 22
134	134	AS 38.05.097(c). 23
135	135	* Sec. 3. AS 37.05.316 is amended by adding a new subsection to read: 24
136	136	(d) Not less than 20 percent of a grant under this section for a named recipient 25
137	137	that is not a municipality must be paid to the named recipient within 10 days after the 26
138	138	effective date of the grant agreement. The remainder of the grant must be paid either 27
139	139	in monthly installments equal to the amount of grant money the named recipient 28
140	140	expended in the previous month or in a lump sum as determined by the Department of 29
141	141	Commerce, Community, and Economic Development. 30
142	142	* Sec. 4. This Act takes effect immediately under AS 01.10.070(c). 31