Resource conservation districts: California Prompt Payment Act.

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 requires state agencies to 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 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. The act requires a state agency to pay, through the Controller, 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 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, as prescribed. The act requires, 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, the late payment penalty provisions described above to be suspended, except as they apply to certain claimants, including a certified small business, a nonprofit organization, or a nonprofit public benefit corporation. This bill would include a resource conservation district in the list of entities entitled to the late payment penalty and excepted from the suspension provision described above. 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 would become subject to late payment penalties during the annually declared fire season, as declared by the Director of Forestry and Fire Protection, except if the contract is with a certified small business, a nonprofit organization, or a nonprofit public benefit corporation. This bill would also except a contract with a resource conservation district from that extension provision.