BILL NUMBER: AB 2181	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Galgiani

                        FEBRUARY 23, 2012

   An act to amend Section 927.2 of the Government Code, relating to
state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2181, as introduced, Galgiani. State government: prompt payment
of claims.
   The California Prompt Payment Act dictates that a state agency
that fails to make a timely payment for goods or services acquired
pursuant to a contract with a specified business or organization is
subject to a late payment penalty.
   This bill would include, within the list of specified businesses
and organizations, state-certified small businesses working on the
development, design, and construction of California's high-speed rail
system under the California High-Speed Rail Act.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 927.2 of the Government Code is amended to
read:
   927.2.  The following definitions apply to this chapter:
   (a) "Claim schedule" means a schedule of payment requests prepared
and submitted by a state agency to the Controller for payment to the
named claimant.
   (b) "Grant" means a signed final agreement between any state
agency and a local government agency or organization authorized to
accept grant funding for victim services or prevention programs
administered by any state agency. Any such grant is a contract and
subject to this chapter.
   (c) "Invoice" means a bill or claim that requests payment on a
contract under which a state agency acquires property or services or
pursuant to a signed final grant agreement.
   (d) "Medi-Cal program" means the program established pursuant to
Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of
the Welfare and Institutions Code.
   (e) "Nonprofit public benefit corporation" means a corporation, as
defined by subdivision (b) of Section 5046 of the Corporations Code,
that has registered with the Department of General Services as a
small business.
   (f) "Nonprofit service organization" means a nonprofit entity that
is organized to provide services to the public.
   (g) "Notice of refund or other payment due" means a state agency
provides notice to the person that a refund or payment is owed to
that person or the state agency receives notice from the person that
a refund or undisputed payment is due.
   (h) "Payment" means any form of the act of paying, including, but
not limited to, the issuance of a warrant or a registered warrant by
the Controller, or the issuance of a revolving fund check by a state
agency, to a claimant in the amount of an undisputed invoice.
   (i) "Reasonable cause" means a determination by a state agency
that any of the following conditions are present:
   (1) There is a discrepancy between the invoice or claimed amount
and the provisions of the contract or grant.
   (2) There is a discrepancy between the invoice or claimed amount
and either the claimant's actual delivery of property or services to
the state or the state's acceptance of those deliveries.
   (3) Additional evidence supporting the validity of the invoice or
claimed amount is required to be provided to the state agency by the
claimant.
   (4) The invoice has been improperly executed or needs to be
corrected by the claimant.
   (5) There is a discrepancy between the refund or other payment due
as calculated by the person to whom the money is owed and by the
state agency.
   (j) "Received by a state agency" means the date an invoice is
delivered to the state location or party specified in the contract or
grant or, if a state location or party is not specified in the
contract or grant, wherever otherwise specified by the state agency.
   (k) "Required payment approval date" means the date on which
payment is due as specified in a contract or grant or, if a specific
date is not established by the contract or grant, 30 calendar days
following the date upon which an undisputed invoice is received by a
state agency.
   (l) "Revolving fund" means a fund established pursuant to Article
5 (commencing with Section 16400) of Division 4 of Title 2.
   (m) "Small business" means a business certified as a "small
business" in accordance with subdivision (d) of Section 14837  ,
including certified small businesses engaged in the development,
design, and construction of California's high-speed rail system
pursuant to the California High-Speed Rail Act (Division 19.5
(commencing with Section 185000) of the Public Utilities Code) 
.
   (n) "Small business" and "nonprofit organization" mean, in
reference to providers under the Medi-Cal program, a business or
organization that meets all of the following criteria:
   (1) The principal office is located in California.
   (2) The officers, if any, are domiciled in California.
   (3) If a small business, it is independently owned and operated.
   (4) The business or organization is not dominant in its field of
operation.
   (5) Together with any affiliates, the business or organization has
gross receipts from business operations that do not exceed three
million dollars ($3,000,000) per year, except that the Director of
Health Services may increase this amount if the director deems that
this action would be in furtherance of the intent of this chapter.