Today's Law As Amended


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SB-643 California Prompt Payment Act: disabled veteran business enterprises.(2009-2010)



As Amends the Law Today


SECTION 1.

 Section 927.6 of the Government Code is amended to read:

927.6.
 (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim schedule  to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice.  date.  The penalty shall cease to accrue on the date the state agency submits the claim schedule  to the Controller for payment or pays the claimant directly,  payment,  and shall be paid for out of the state agency’s support appropriation.  funds.  If the claimant is a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or  a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the  or a disabled veteran business enterprise, as defined in subparagraph (A) of paragraph (7) of subdivision (b) of Section 999 of the Military and Veterans Code, the  state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year.  of one-quarter of 1 percent of the amount due, per calendar day, from the required payment date.  However, a nonprofit organization shall only be eligible to receive a penalty payment if it has been awarded a contract or grant in an amount less than five hundred thousand dollars ($500,000). If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency. 
(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate  rate accrued  on June 30 of the prior fiscal year,  year by the Pooled Money Investment Account,  not to exceed a rate of 15 percent. If  percent, except that, if  the amount of the penalty is one hundred  seventy-five  dollars ($100) ($75)  or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties penalties,  for failure to submit a correct claim schedule  to the Controller by the required payment approval date date,  by paying the claimant directly directly,  from the state agency’s revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency.

SEC. 2.

 Section 927.7 of the Government Code is amended to read:

927.7.
 (a)  The Controller shall pay claimants within 15 calendar days of receipt of a correct claim schedule  from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim schedule  from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice,  the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controller’s funds. If the claimant is a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or  a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the  or a disabled veteran business enterprise, as defined in subparagraph (A) of paragraph (7) of subdivision (b) of Section 999 of the Military and Veterans Code, the  Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year,  of one-quarter of 1 percent of the amount due, per calendar day,  from the 16th calendar day following receipt of the claim schedule  from the state agency. However, a nonprofit organization shall only be eligible to receive a penalty payment if it has been awarded a contract or grant in an amount less than five hundred thousand dollars ($500,000). If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller.  For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate  rate accrued  on June 30 of the prior fiscal year,  year by the Pooled Money Investment Account,  not to exceed a rate of 15 percent. If  percent, except that, if  the amount of the penalty is one hundred  seventy-five  dollars ($100) ($75)  or less, the penalty shall be waived and not paid by the Controller.
(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice.