The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract. If a state agency fails to take certain timely actions and payment is not issued within 45 calendar days from the state agency’s receipt of an undisputed invoice, the act requires the state agency to pay certain penalties.

Existing law vests the Public Utilities Commission (PUC) with regulatory authority over public utilities, including every common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, and heat corporation, as specified.

Existing law vests the State Energy Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the state’s energy policies.

This bill would require the PUC and the Energy Commission, in administering or approving programs, to comply with the California Prompt Payment Act and to ensure that payment timelines, advance payment structures, and accountability measures required under the act are incorporated into program designs, implementation plans, and cost recovery authorizations. The bill would require the PUC and the Energy Commission to provide a minimum advance payment of 25%, and, if the nonprofit organization has been in good standing with the state for at least 3 years, to provide an advanced payment of 100%, except as provided. The bill would prohibit the PUC and the Energy Commission from structuring procurement or payment terms in a way that unreasonably restricts participation by small businesses, nonprofit organizations, community-based organizations, or certain certified suppliers, as specified. The bill would require the PUC and the Energy Commission to annually submit a report to the Legislature with information related to the payment of invoices.

Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the PUC is a crime.

This bill would provide that no reimbursement is required by this act for a specified reason.