SB 1366 California Senate · 2025-2026 Regular Session

Public Utilities Commission: report.

Summary

Existing law vests the Public Utilities Commission 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 requires each state agency, including the commission, to provide the Director of General Services with an annual report on late payment penalties that were paid by the agency, as provided. This bill would require the commission to annually submit a report to the Legislature with information related to the payment of invoices, as provided.

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Aug 2026

Senate Passage

May 2026

Assembly Passage

Governor

Introduced Feb 20, 2026 Last action Aug 13, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

03/23/26 - Amended Senate → 04/28/26 - Amended Senate · 5 edits · Apr 28, 2026

MODERATE

The April 28 amendment to SB 1366 makes several targeted changes: it removes a standalone legislative intent section, clarifies that cashflow barrier mitigation reporting in Section 910.11(d) specifically covers small businesses and diverse suppliers participating in PUC-administered programs, and reclassifies the bill as requiring fiscal committee review and constituting a state-mandated local program (both previously marked 'no'). These changes tighten the reporting language and correct procedural designations.

SCOPE

The standalone legislative intent section (old Section 1) stating the Legislature's intent to enact legislation relating to the California Prompt Payment Act was removed entirely.

REQUIREMENT

Section 910.11(d) was expanded to clarify that the cashflow barrier mitigation steps reported by the PUC specifically relate to small businesses and diverse suppliers participating in programs administered by the commission, rather than only referencing entities identified in Section 701.7(c).

TECHNICAL

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee review before passage.

The state-mandated local program designation changed from 'no' to 'yes,' acknowledging that the bill imposes a state-mandated local program (likely due to the criminal penalty provision for PUC violations).

The digest was reorganized to add a sentence noting existing law requires each state agency, including the commission, to provide the Director of General Services with an annual report on late payment penalties.

02/20/26 - Introduced → 03/23/26 - Amended Senate · 8 edits · Mar 23, 2026

MODERATE

SB 1366 was transformed from a non-binding legislative intent statement into a substantive bill imposing binding payment requirements on the Public Utilities Commission (PUC) and the State Energy Resources Conservation and Development Commission (Energy Commission). The amended bill mandates 45-day payment deadlines, minimum advance payments of 25% (or 100% for qualifying nonprofits), automatic late-payment interest, and annual reporting to the Legislature. It also prohibits these agencies from structuring procurement terms that unreasonably restrict small businesses, nonprofits, community-based organizations, or General Order 156 certified suppliers.

SCOPE

The bill now applies specifically to the PUC (for ratepayer-funded programs) and the Energy Commission (for all programs they administer or approve), rather than being a general intent statement with no legal effect.

A savings clause in the PUC section (Section 701.7(d)) states that the new requirements do not alter the commission's ratemaking authority or obligation to protect ratepayers.

REQUIREMENT

Both agencies must make payment within 45 calendar days of receiving an invoice, and invoices cannot be disputed based on minor or technical defects to circumvent this deadline.

Interest on late payment penalties must accrue automatically and cannot be waived by contract terms.

FISCAL

A minimum advance payment of 25 percent is required unless a written justification is provided. Nonprofit organizations in good standing with the state for at least three years are entitled to a 100 percent advance payment unless a written justification is provided.

ELIGIBILITY

Agencies are prohibited from structuring procurement or payment terms in a way that unreasonably restricts participation by small businesses, nonprofit organizations, community-based organizations, or suppliers certified under General Order 156.

ENFORCEMENT

Both agencies must submit an annual report to the Legislature including: information required under Government Code Section 927.9, the number of disputed invoices, the number of invoices paid more than 45 days after receipt, and steps taken to mitigate cashflow barriers for the protected entities.

TECHNICAL

The fiscal committee vote changed from 'no' to 'yes' and state-mandated local program changed from 'no' to 'yes' because violations of PUC orders implementing these requirements constitute a crime, triggering state-mandated local program status.

Floor votes · Senate May 27, 2026

How they voted

39–0

Passed · 1 other

Total votes 40

May 27, 2026

D Democratic30

30 Yea

100% Yea

R Republican10

9 Yea 1

90% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 13, 2026

Lower · Passed

August 13 hearing: Held in committee and under submission.

lower

Jun 25, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 18. Noes 0.) (June 24). Re-referred to Com. on APPR.

lower

Jun 4, 2026

Committee

Referred to Com. on U. & E.

lower

May 27, 2026

Upper · Passed

Read third time. Passed. (Ayes 39. Noes 0. Page 4495.) Ordered to the Assembly.

upper

May 14, 2026

Upper · Passed

From committee: Do pass. (Ayes 7. Noes 0. Page 4274.) (May 14).

upper

Apr 28, 2026

Upper · Passed

Read second time and amended. Re-referred to Com. on APPR.

upper

Apr 27, 2026

Upper · Passed

From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 1. Page 3974.) (April 21).

upper

Apr 8, 2026

Committee

Re-referred to Com. on E., U & C.

upper

Mar 23, 2026

Upper · Passed

From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

upper

Mar 4, 2026

Committee

Referred to Com. on RLS.

upper

Feb 20, 2026

Introduced

Introduced. To Com. on RLS. for assignment. To print.

upper

1 primary · 0 co-sponsors