State contracting: subcontractors: prompt payment.

Bill was assigned Chapter 139 and the governor's approval date of August 27, 2026 was recorded.

Enrolled-version tracking language (assembly/senate passage dates, clerk signatures, governor receipt line) was removed in favor of the standard chaptered bill format.

Removed the requirement that prime contractors pay subcontractors, suppliers, and other vendors within 45 days of receiving payment from the state for payments made on or after January 1, 2027.

Removed the requirement that prime contractors remit any pre-2027 unpaid amounts to subcontractors by February 15, 2027.

Removed the Department of General Services monitoring and compliance role, including the demerit system with escalating penalties (6-month contract ban for 5 failures in 3 years, 1-year ban for 10 failures in 3 years).

Removed the authority for DGS to review and rescind a prime contractor's existing state contracts for repeated noncompliance.

Removed the requirement for DGS to adopt rules and regulations to administer the payment provisions, including a demerit tracking system.

Subcontractors and suppliers performing work under a state contract can now request payment status information directly from the awarding state agency regarding invoices submitted by the prime contractor.

Prime contractors must provide confirmation to the awarding agency, upon the agency's request, regarding payments made to subcontractors.

The bill was restructured: the original Section 927.10 provisions (encouragement language, expedited payment processes) were retained and new subdivisions (b) and (c) were added for the information rights, while the payment deadline and demerit/enforcement provisions were reorganized into a separate section.