State contracting: subcontractors: prompt payment., the official text

An act to amend Section 927.10 of the Government Code, relating to state contracting.

LEGISLATIVE COUNSEL'S DIGEST

Existing law, the California Prompt Payment Act, requires a state agency that acquires property or services pursuant to a contract with a business to make payment to the person or business on the date required by the contract and as specified, or be subject to a late payment
penalty. Existing law requires state agencies to encourage claimants to promptly pay their subcontractors and suppliers, especially those that are small businesses.
This bill would authorize a subcontractor or supplier performing work under a state contract to request payment status information from the awarding state agency regarding invoices submitted by the prime contractor, and would require a prime contractor to provide confirmation to the awarding agency, upon the agency’s request, regarding payments made to subcontractors.

The people of the State of California do enact as follows:

SECTION 1.
Section 927.10 of the Government Code is amended to read:
927.10.
(a) State agencies shall encourage claimants to promptly pay their subcontractors and suppliers, especially those that are small businesses. In furtherance of this policy, state agencies shall utilize expedited payment processes to enable faster payment by prime contractors to their subcontractors and suppliers, and shall promptly respond to any subcontractor or supplier inquiries regarding the status of payments made to prime contractors.
(b) A subcontractor or supplier performing work under a state contract may request payment status information from the awarding state agency regarding invoices submitted by the prime contractor.
(c) A prime contractor shall provide confirmation to the awarding agency, upon the agency’s request, regarding payments made to subcontractors.