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Measure AB 1177
Authors Connolly  
Subject California Prompt Payment Act: late payment penalties.
Relating To relating to civil law.
Title An act to amend Section 927.11 of the Government Code, relating to civil law.
Last Action Dt 2025-07-14
State Chaptered
Status Chaptered
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-07-14     Chaptered by Secretary of State - Chapter 47, Statutes of 2025.
2025-07-14     Approved by the Governor.
2025-07-03     Enrolled and presented to the Governor at 11 a.m.
2025-06-27     In Assembly. Ordered to Engrossing and Enrolling.
2025-06-27     Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 1810.).
2025-06-24     Read second time. Ordered to Consent Calendar.
2025-06-23     From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.
2025-06-10     From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (June 10). Re-referred to Com. on APPR.
2025-05-28     Referred to Com. on G.O.
2025-05-15     In Senate. Read first time. To Com. on RLS. for assignment.
2025-05-15     Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1570.)
2025-05-08     Read second time. Ordered to Consent Calendar.
2025-05-07     From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 7).
2025-04-24     From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 22. Noes 0.) (April 23). Re-referred to Com. on APPR.
2025-04-01     Re-referred to Com. on G.O.
2025-03-28     Referred to Com. on G.O.
2025-03-28     From committee chair, with author's amendments: Amend, and re-refer to Com. on G.O. Read second time and amended.
2025-02-24     Read first time.
2025-02-22     From printer. May be heard in committee March 24.
2025-02-21     Introduced. To print.
Keywords
Tags
Versions
Chaptered     2025-07-14
Enrolled     2025-07-01
Amended Assembly     2025-03-28
Introduced     2025-02-21
Last Version Text 
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Connolly</ns0:AuthorText>
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		<ns0:Title>An act to amend Section 927.11 of the Government Code, relating to civil law.</ns0:Title>
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			<ns0:Subject>California Prompt Payment Act: late payment penalties.</ns0:Subject>
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			<html:p>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.</html:p>
			<html:p>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.</html:p>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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				Section 927.11 of the 
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				 is amended to read:
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								(a)
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								Except in the case of a contract with a resource conservation district, a certified small business, a nonprofit organization, or a nonprofit public benefit corporation, if an invoice from a business under a contract with the Department of Forestry and Fire Protection would become subject to late payment penalties during the peak fire protection staffing period, as determined by the Director of Forestry and Fire Protection, or their designee, then the required payment approval date shall be extended by 30 calendar days.
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								(b)
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								No nonprofit public benefit corporation shall be eligible for a late payment penalty if a state agency fails to make timely payment because no Budget Act has been enacted.
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								(c)
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								(1)
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								If the Director of Finance determines that a state agency or the Controller is unable to promptly pay an invoice as provided for by this chapter due to a major calamity, disaster, or criminal act, then otherwise applicable late payment penalty
						provisions contained in Sections 927.6 and 927.7 shall be suspended, except as they apply to a claimant that is any of the following:
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								(A)
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								A resource conservation district.
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								(B)
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								A certified small business.
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								(C)
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								A nonprofit organization.
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								A nonprofit public benefit corporation.
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								(E)
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								A small business or nonprofit organization that provides services or equipment under the Medi-Cal program.
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								(2)
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								A suspension pursuant to this subdivision shall remain in effect until the Director of Finance determines that the suspended late payment penalty provisions should be reinstated.
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								(d)
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								Except as provided in subdivision (b), in the event a state agency fails to make timely payment because no Budget Act has been enacted, penalties shall continue to accrue until the time that the invoice is paid.
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Last Version Text Digest 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.