BILL NUMBER: AB 1936 CHAPTERED
BILL TEXT
CHAPTER 151
FILED WITH SECRETARY OF STATE JULY 21, 2000
APPROVED BY GOVERNOR JULY 21, 2000
PASSED THE SENATE JULY 6, 2000
PASSED THE ASSEMBLY APRIL 27, 2000
INTRODUCED BY Assembly Member Papan
FEBRUARY 15, 2000
An act to amend Section 927.1 of the Government Code, relating to
state contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 1936, Papan. State contracts: claims against the state.
Existing law 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 or be
subject to a late payment penalty.
This bill would additionally require that payment to be made
pursuant to an existing provision of law requiring payment within 45
days of a state agency receipt of an undisputed invoice, to avoid
late payment penalties.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 927.1 of the Government Code is amended to
read:
927.1. (a) A state agency that acquires property or services
pursuant to a contract with a business, including any approved change
order or contract amendment, shall make payment to the person or
business on the date required by the contract and as required by
Section 927.4 or be subject to a late payment penalty.
(b) Except in the event of an emergency as provided in Section
927.11, effective January 1, 1999, the late payment penalties
specified in this chapter may not be waived, altered, or limited by a
state agency acquiring property or services pursuant to a contract
or by any person or business contracting with a state agency to
provide property or services.