Session: State Capitol, Room 101 Juneau, AK 99801-1182 Phone: (907) 465-3879 Fax: (907) 465-2069 Subscribe to Newsletter District I & Transportation Committee Info Interim: 716 W 4th Avenue, Suite 530 Anchorage, AK 99501-2133 Phone: (907) 269-0222 Fax: (907) 269-0223

DOT&PF to Pay Interest on Claims

(JUNEAU) - The Alaska Senate passed a bill today requiring the Department of Transportation and Public Facilities to pay interest on money owed to contractors following contract settlements.

"A few years ago the department made the administrative decision that they were no longer going to pay interest on money that they owed to contractors," said Sen. John Cowdery (R-Anchorage). "Not only is this unfair, but it is poor public policy. A private firm would have to pay interest on money it owed, and the state should have to do so too."

Senate Bill 152 would require that when a contract dispute with the department is settled in favor of the contractor, interest must be paid on the settlement for the period of time that it was in dispute. The interest would accrue at the rate applicable to judgements, from the date the claim was filed through the date of the decision.

SB 152 passed the Senate with a vote of 14 - 5, and a notice of reconsideration was filed.

# # #

Attachments:

• Sponsor Statement for SB 152
• Print Friendly Version
  requires Adobe Acrobat Reader - 1 page(s) - 98 K

Broadcasters Note: Audio comments are available on the Majority Actuality line:
1-800-478-6540 or below.

| Sen. Cowdery's Page |

| Top | Home | Site Search | Breaking News | Legislators | Bills |
| Committees | E-Newsletter | Surveys | Research | Help |

The Official Web Site of the House and Senate Legislative Majorities
for the 22nd Alaska State Legislature
To Report Technical Problems or Contact Webmasters