BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2181|
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                                 THIRD READING


          Bill No:  AB 2181
          Author:   Galgiani (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-2, 06/12/12
          AYES: Wright, Berryhill, Calderon, Cannella, Corbett, De 
            León, Evans, Hernandez, Padilla, Wyland, Yee
          NOES: Anderson, Walters
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8  

          ASSEMBLY FLOOR  :  54-18, 4/30/12 - See last page for vote


           SUBJECT  :    State government:  payment of claims:  
          high-speed rail

           SOURCE  :     Author


           DIGEST  :    This bill clarifies that the California 
          High-Speed Rail Authority (Authority) must promptly pay 
          certified small businesses engaged in the development, 
          design, and construction of California's high-speed rail 
          system or pay a late payment penalty under the California 
          Prompt Payment Act (Act).

           ANALYSIS  :    

          Existing law: 

                                                           CONTINUED





                                                               AB 2181
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          2

          1. Establishes the Act, which requires state agencies 
             acquiring property or services pursuant to a business 
             contract, including any change order or contract 
             amendment, to pay the person or business on the date 
             required by the contract, or be subject to a late 
             payment penalty. 

          2. Defines "State" to mean the State and any office, 
             officer, department, division, bureau, board, commission 
             or agency of the State claims for money against which 
             are paid by warrants drawn by the Controller.

          According to the author's office, "This bill seeks to 
          clarify the Prompt Payment Act to include small businesses 
          contracting with the Authority.  The current language for 
          Government Code Section 927 states that the Act applies to 
          all state agencies." 

          The Act requires state agencies to submit payment for items 
          or services contractually delivered by a person or business 
          no later than the date required by contract between the 
          agency and entity being contracted with.  The author's 
          office contends that language clarifies that state agencies 
          would include the Authority. 

          The Controller's office, which makes payments to vendors on 
          behalf of state agencies, has already begun making payments 
          on behalf of the Authority for design services and land 
          parcels and has stated that the Act would extend to the 
          Authority and that small businesses entering into a 
          contract with the Authority would be paid late penalty 
          fees, if applicable.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No


           ASSEMBLY FLOOR  :  54-18, 4/30/12
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, 
            Block, Bonilla, Bradford, Buchanan, Butler, Charles 
            Calderon, Campos, Carter, Chesbro, Dickinson, Eng, Feuer, 
            Fletcher, Fong, Fuentes, Galgiani, Gatto, Gordon, Gorell, 
            Hagman, Halderman, Hall, Hayashi, Roger Hernández, Hill, 
            Huber, Hueso, Huffman, Jeffries, Lara, Bonnie Lowenthal, 







                                                               AB 2181
                                                                Page 
          3

            Ma, Mendoza, Miller, Mitchell, Monning, Pan, Perea, V. 
            Manuel Pérez, Portantino, Skinner, Solorio, Swanson, 
            Torres, Wieckowski, Williams, Yamada, John A. Pérez
          NOES:  Bill Berryhill, Conway, Cook, Donnelly, Beth Gaines, 
            Garrick, Grove, Harkey, Jones, Knight, Mansoor, Morrell, 
            Nestande, Nielsen, Norby, Silva, Valadao, Wagner
          NO VOTE RECORDED:  Blumenfield, Brownley, Cedillo, Davis, 
            Furutani, Logue, Olsen, Smyth


          DLW:k  6/25/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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