California Prompt Payment Act: late payment penalties.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill amends the California Prompt Payment Act to adjust how late payment penalties are applied by the Department of Forestry and Fire Protection. Specifically, it extends the required payment approval date by 30 calendar days if an invoice would become subject to penalties during the peak fire protection staffing period, with exceptions for certified small businesses, nonprofit organizations, and nonprofit public benefit corporations. The bill also includes provisions regarding budget enactments and major calamities, potentially suspending late payment penalties under certain circumstances.
Key provisions
- Extends payment approval date by 30 days during peak fire protection staffing period.
- Exceptions for certified small businesses, nonprofit organizations, and nonprofit public benefit corporations.
- Allows suspension of late payment penalties due to major calamities, disasters, or criminal acts.
- Provides an exception for nonprofits if a Budget Act has not been enacted.
- Penalties continue to accrue if a Budget Act is not in effect.
Who is affected
- State agencies (specifically the Department of Forestry and Fire Protection)
- Businesses contracting with state agencies
- Certified small businesses
- Nonprofit organizations
- Nonprofit public benefit corporations
Notable changes
- Changes the timeframe for extending payment approval dates from the fire season to the peak fire protection staffing period.
Bill text
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Sponsors
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1 on record
Primary sponsor
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