AB 547: California Prompt Payment Act: disabled veteran business enterprises.

The California Prompt Payment Act requires a state agency that acquires property or services pursuant to a contract with a business, including any approved change order or contract amendment, to make payment to the person or business on the date required by contract and within 45 days of receipt of an undisputed invoice or be subject to a late payment penalty, as provided. The act applies to all state agencies.

This bill would require state agencies to pay an undisputed invoice from a certified disabled veteran business enterprise that is also a small business, as defined, within 30 days of initial receipt. The bill would require a state agency to submit a claim on an undisputed invoice to the Controller for payment within 15 calendar days of the agencys receipt. If an agency fails to submit a correct claim schedule within 15 days of receiving an invoice, and payment is not made within 30 days of receipt, the bill would require the agency to pay penalties from its funds, as specified. The bill would create similar penalties and procedures to be applied to the Controller if the Controller fails to make payment within 15 days of receipt of a correct claim schedule and payment is not made within 30 days of agency receipt of an undisputed invoice.