BILL ANALYSIS
AB 2541
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CONCURRENCE IN SENATE AMENDMENTS
AB 2541 (Matthews)
As Amended August 7, 2006
Majority vote
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|ASSEMBLY: |80-0 |(May 30, 2006) |SENATE: |31-3 |(August 22, |
| | | | | |2006) |
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Original Committee Reference: B. & P.
SUMMARY : Requires the state to pay a penalty for the late
payment of a grant.
The Senate amendments revise the definition of "grant" to
accurately reflect the final agreement upon which the state
would be required to make late payment penalties.
EXISTING LAW requires the state to pay amounts due on a contract
on the date specified in the contract or within 45 days of a
properly submitted, undisputed invoice, or pay a penalty of
0.25% per day if the contractor is a small business, or 1% above
the Pooled Money Investment Account rate for all other
businesses.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, the impact of adding grantees to those eligible for
late payment penalties is unknown, but assuming an increase in
penalties of only 5% yields an annual cost of $200,000 from all
funds.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the version passed by the Senate.
COMMENTS : This bill is substantially similar to the
Assembly-approved version. The Senate amendments revise the
definition of "grant" to accurately reflect the final agreement
upon which the state would be required to make late payment
penalties.
Analysis Prepared by : Ross Warren / B. & P. / (916) 319-3301
AB 2541
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FN: 0016091