AlaskaHB 13334th Legislature - First Session (2025)HouseWALLET

PAYMENT OF CONTRACTS

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Faster pay for state contractors

Beginning July 1, 2027, state agencies must pay contractors within 45 calendar days after a compliant payment request. Beginning July 1, 2028, the deadline is 30 days. If an agency does not pay on time, it owes interest at the rate in AS 45.45.010(a). For requests due before July 1, 2028, interest starts on day 46; for requests due on or after July 1, 2028, it starts on day 31. If payment is withheld, the agency must give written notice within eight working days that explains why and what to fix; a faulty notice triggers interest from the eighth working day until a proper notice is sent. After the contractor completes fixes, the agency must pay the withheld amount within 45 days (30 days starting July 1, 2028) or pay interest. Interest does not apply to retainage, and public construction or certain public works agreements are excluded.

Faster pay for nonprofits and local governments

Beginning July 1, 2027, agencies must pay nonprofits, municipalities, and Alaska Native organizations within 45 calendar days after a compliant grant or reimbursement request. If federal funds are used, the 45-day clock runs from the later of a compliant request or when the agency receives the federal funds. Beginning July 1, 2028, the deadline shortens to 30 days, and the same “later of” rule applies when federal funds are used. If not paid on time, the agency owes interest at the rate in AS 45.45.010(a); for requests due before July 1, 2028, interest starts on day 45, and for requests due on or after July 1, 2028, it starts on day 30. If payment is withheld, the agency must give written notice within eight working days with reasons and required fixes, and follow the same remedial timing and interest rules used for contractors. These rules apply only to grants or reimbursement agreements entered into or renewed on or after July 1, 2027.

Public tracker for late state payments

The Department of Administration runs a public website with unaudited state revenue and spending. The site shows whether each contract or grant payment was 30 or more days late and lists payments owed that are 30 or more days past due. The department updates some items monthly and others yearly and keeps the data for at least 10 years. Agencies must also send the Legislature, by the first day of the 35th Legislature’s First Regular Session, a report on 2026 late payments with reasons and how long each delay lasted.

Sponsors & Cosponsors

Sponsor

Rebecca Himschoot
Not • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 65 • No: 52

House vote • 4/22/2026

PASSED Y27 N10 E3

Yes: 27 • No: 10

House vote • 4/21/2026

AM NO 12 FAILED Y19 N21

Yes: 19 • No: 21

House vote • 4/20/2026

AM NO 7 FAILED Y19 N21