BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  SB  
          399
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2013-2014 Regular Session
                                 Staff Analysis



          SB 399  Author:  Wright
          As Amended:  April 1, 2013
          Hearing Date:  April 23, 2013
          Consultant:  Paul Donahue


                                     SUBJECT  

                      State contracts: Expedited payments

                                   DESCRIPTION
           
          Requires a state agency, when it receives an invoice for  
          the successful completion of a contract for which emergency  
          work or remedial measures were necessary to immediately  
          avert, alleviate, repair, or mitigate destruction of  
          property, to submit the invoice to the Controller for  
          payment not more than 15 days from receipt of the invoice.

                                   EXISTING LAW

           The California Prompt Payment Act provides 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.

                                    BACKGROUND
           
           Purpose of the bill  :  According to the author's office,  
          there is no provision in existing law to pay emergency  
          contracts on a fast track basis. This bill proposes to  
          require the agency that has requested emergency work to  
          review and approve the invoice from the successfully  
          completed contract within 15 days. 





          SB 399 (Wright) continued                                
          Page 2
          


           Statements in support  :  The supporters of the bill say  
          that, if a contractor is requested to fix or repair state  
          property on an emergency basis, the state should ensure  
          that payment is made within a 30 day window. Supporters  
          note that this this measure simply promotes good public  
          policy to help out small businesses. 

           SUPPORT:   

          California Chapter of American Fence Association
          California Fence Contractors' Association
          Engineering Contractors' Association
          Flasher Barricade Association
          Marin Builders Association

           OPPOSE:   

          None on file

           FISCAL COMMITTEE:   Senate Appropriations Committee



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