Bill > AB1177

This bill amends the California Prompt Payment Act by modifying how payment extensions are handled for invoices from businesses contracting with the Department of Forestry and Fire Protection (CAL FIRE). Currently, invoices that would become subject to late payment penalties during the annually declared fire season receive a 30-calendar-day extension, with exceptions for certain types of organizations like certified small businesses and nonprofits. The bill changes the terminology from "annually declared fire season" to "peak fire protection staffing period" as determined by the Director of Forestry and Fire Protection, while maintaining the same 30-day extension and organizational exceptions. The bill also preserves existing provisions that suspend late payment penalties during major calamities, disasters, or criminal acts, with specific protections for certain types of organizations. Additionally, the bill maintains that if a state agency fails to pay an invoice due to a lack of a Budget Act, penalties will continue to accrue until the invoice is paid, with some exceptions for nonprofit public benefit corporations.

Budget and Finance, Government Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1177