BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2181
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

               AB 2181 (Galgiani) - As Introduced:  February 23, 2012 

          Policy Committee:                              Business and 
          Professions  Vote:                            9 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill clarifies that the California High-Speed Rail 
          Authority must comply with the California Prompt Payment Act, 
          which requires that state agencies promptly pay small businesses 
          conducting business with the state or pay a late payment 
          penalty. 

           FISCAL EFFECT  

          As this language is simply clarifying, costs associated with 
          this legislation should be minor and absorbable within existing 
          resources. 

           COMMENTS  

           1)Rationale  . The Prompt Payment Act currently requires all state 
            agencies to comply with the provisions of the act. The intent 
            of this legislation is to clarify that the High-Speed Rail 
            Authority falls under that requirement. 

           2)The Prompt Payment Act  requires the state to pay amounts due 
            on the date specified in a 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 
            nonprofit organization, or 1% above the Pooled Money 
            Investment Account rate for all other businesses.   

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081 










                                                                  AB 2181
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