BILL ANALYSIS �
AB 2181
Page 1
ASSEMBLY THIRD READING
AB 2181 (Galgiani)
As Introduced February 23, 2012
Majority vote
BUSINESS & PROFESSIONS 9-0 APPROPRIATIONS 12-4
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|Ayes:|Hayashi, Bill Berryhill, |Ayes:|Fuentes, Blumenfield, |
| |Allen, Butler, | |Bradford, |
| |Eng, Hagman, Hill, Ma, | |Charles Calderon, Campos, |
| |Smyth | |Davis, |
| | | |Gatto, Hall, Hill, Lara, |
| | | |Mitchell, |
| | | |Solorio |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Donnelly, Nielsen, Norby, |
| | | |Wagner |
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SUMMARY : Clarifies that the California High-Speed Rail Authority
(Authority) must promptly pay certified small businesses engaged in
the development, design, and construction of California's high-speed
rail system or pay a late payment penalty under the California
Prompt Payment Act (Act).
EXISTING LAW :
1)Establishes the Act, which requires state agencies acquiring
property or services pursuant to a business contract, including
any change order or contract amendment, to pay the person or
business on the date required by the contract, or be subject to a
late payment penalty.
2)Defines "State" to mean the State and any office, officer,
department, division, bureau, board, commission or agency of the
State claims for money against which are paid by warrants drawn by
the Controller.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
As this language is simply clarifying, costs associated with this
legislation should be minor and absorbable within existing
resources.
AB 2181
Page 2
COMMENTS : According to the author's office, "This bill seeks to
clarify the prompt payment act to include small businesses
contracting with the Authority. The current language for Government
Code Section 927 states that the Act applies to all state agencies."
The Act requires state agencies to submit payment for items or
services contractually delivered by a person or business no later
than the date required by contract between the agency and entity
being contracted with. The author's office contends that language
clarifies that state agencies would include the Authority.
The Controller's office, which makes payments to vendors on behalf
of state agencies, has already begun making payments on behalf of
the Authority for design services and land parcels and has stated
that the Act would extend to the Authority and that small businesses
entering into a contract with the Authority would be paid late
penalty fees, if applicable.
Analysis Prepared by : Joanna Gin / B.,P. & C.P. / (916) 319-3301
FN:
0003393