SB 643

Bill Subjects

Abstract

Existing law, the California Prompt Payment Act, requires a state agency that acquires property or services pursuant to a contract with a business to make payment to the person or business on the date required by the contract and as specified, or be subject to a late payment penalty. These provisions require a state agency to pay specified penalties to a claimant if the agency fails to submit a correct claim schedule to the Controller by the required payment approval date. These provisions also require the Controller to pay a specified penalty to a claimant if the Controller fails to make a payment within 15 calendar days of receipt of the claim schedule from a state agency, as specified. Those penalties accrue at a higher rate if the claimant is a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, as specified. Existing law establishes the California Disabled Veteran Business Enterprise Program. This program requires, among other things, that state agencies, departments, officers, and entities, as specified, have statewide participation goals of not less than 3% for disabled veteran business enterprises for contracts entered into during the year, except as specified. Existing law defines a disabled veteran business enterprise for purposes of these provisions. This bill would include a disabled veteran business enterprise, as defined under the California Disabled Veteran Business Enterprise Program, among the entities to whom those higher penalties are payable under the California Prompt Payment Act, as described above.