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Cal. Gov. Code § 927.11

Prompt Payment of Claims

Known as the California Prompt Payment Act

The act spans §§ 927 to 927.9 (14 sections).

Amended by Stats. 2025, Ch. 47, Sec. 1

(a) Except in the case of a contract with a resource conservation district, a certified small business, a nonprofit organization, or a nonprofit public benefit corporation, 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 peak fire protection staffing period, as determined by the Director of Forestry and Fire Protection, or their designee, then the required payment approval date shall be extended by 30 calendar days.

(b) No nonprofit public benefit corporation shall be eligible for a late payment penalty if a state agency fails to make timely payment because no Budget Act has been enacted.

(c) (1) 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, then otherwise applicable late payment penalty provisions contained in Sections 927.6 and 927.7 shall be suspended, except as they apply to a claimant that is any of the following:

(A) A resource conservation district.

(B) A certified small business.

(C) A nonprofit organization.

(D) A nonprofit public benefit corporation.

(E) A small business or nonprofit organization that provides services or equipment under the Medi-Cal program.

(2) A suspension pursuant to this subdivision shall remain in effect until the Director of Finance determines that the suspended late payment penalty provisions should be reinstated.

(d) Except as provided in subdivision (b), in the event a state agency fails to make timely payment because no Budget Act has been enacted, penalties shall continue to accrue until the time that the invoice is paid.

Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.