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.