AB 1177: California Prompt Payment Act: late payment penalties.

Existing law, the California Prompt Payment Act, generally provides that a state agency that acquires property or services pursuant to a contract with a business but fails to make payment to the person or business on the date required by the contract is subject to a late payment penalty, as specified. The act also requires the required payment approval date, as defined, to be extended by 30 calendar days if an invoice from a business under a contract with the Department of Forestry and Fire Protection (department) would become subject to late payment penalties during the annually declared fire season, as declared by the Director of Forestry and Fire Protection (director), except if the contract is with a certified small business, a nonprofit organization, or a nonprofit public benefit corporation.

This bill would, instead, require the required payment approval date to be extended by 30 calendar days if an invoice from a business under a contract with the department would become subject to late payment penalties during the peak fire protection staffing period, as determined by the director, subject to the exceptions described above.