If it had taken effect, the measure would have set payment deadlines for agencies and required public listings and legislative reports on late payments.
Agencies would pay contractors within 45 days for satisfactory work after receiving a proper request. If payment is late, interest would apply. Starting July 1, 2028, the deadline would be 30 days.
Agencies would pay eligible nonprofits, municipalities, and Alaska Native organizations within 45 days for satisfactory work. With federal funds, the deadline starts when the agency gets the funds if that is later. Starting July 1, 2028, it would be 30 days.
The public finance website would show payments at least 30 days overdue, including who is owed money and how much. The department would update the listing monthly and keep the information online for at least 10 years.
Agencies would report how many covered payments were late in 2026, why they were late, and how long the delays lasted.
Agencies would have to pay contractors on time or pay interest on overdue amounts. These rules would cover contractors paid by state agencies under contracts, subject to the listed exceptions. The contractor must have performed satisfactorily and sent a payment request that meets the contract. If an agency withholds payment for poor performance or an incorrect request, it must explain why and describe steps to receive full payment within eight working days. Interest applies if the agency's notice is late or inadequate, or if it misses a payment deadline. Interest does not apply to retainage. Public construction and public works contracts covered by a specified law, certain other agreements, and the state emergency management division are excluded; that division must make reasonable efforts to meet the deadlines. The 45-day deadline would take effect July 1, 2027. The 30-day deadline and related interest dates would take effect July 1, 2028.
Agencies would have to pay eligible organizations on time or pay interest on overdue amounts. This would cover grants and reimbursement agreements with nonprofits, municipalities, and Alaska Native organizations. The organization must have performed satisfactorily and sent a payment request that meets its grant or reimbursement agreement. When an agency uses federal funds, the payment deadline runs from the request or the agency's receipt of the funds, whichever is later. If payment is withheld, the agency must explain why and describe steps to receive full payment within eight working days. The emergency management division is excluded but must make reasonable efforts to meet the deadlines. The rules exclude several kinds of grants, including loans, subsidies, and grants specifically appropriated to named recipients or municipalities. The 45-day deadline would take effect July 1, 2027. The 30-day deadline and related interest dates would take effect July 1, 2028.
The Department of Administration would have to post payments that are at least 30 days overdue on the public finance website. The website would show state payments and identify the recipient, amount, and payment type. The listing would cover payments owed under contracts and under grants or reimbursement agreements to nonprofits, municipalities, and Alaska Native organizations. The website information would be updated monthly and kept online for at least 10 years.
Agencies would have to report late payments to the legislature. Reports would cover 2026 payments to contractors and eligible organizations for work under contracts, grants, or reimbursement agreements. The report must give the number of late payments, the reasons for the delays, and how long they lasted. Reports would be due by the first day of the First Regular Session of the Thirty-Fifth Alaska Legislature.
No hearings or votes scheduled.