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 or be subject to a late payment penalty, as specified. The act requires a state agency that awards a grant to make payment to the person or business that is the recipient of the grant on the date required by the grant or be subject to a late payment penalty, as specified. The act provides that, to avoid late payment penalties, the maximum time from state agency receipt of an undisputed invoice to the date of payment is 45 calendar days.

This bill would state the intent of the Legislature to enact legislation relating to the act.