BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2181|
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THIRD READING
Bill No: AB 2181
Author: Galgiani (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-2, 06/12/12
AYES: Wright, Berryhill, Calderon, Cannella, Corbett, De
Le�n, Evans, Hernandez, Padilla, Wyland, Yee
NOES: Anderson, Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 54-18, 4/30/12 - See last page for vote
SUBJECT : State government: payment of claims:
high-speed rail
SOURCE : Author
DIGEST : This bill 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).
ANALYSIS :
Existing law:
CONTINUED
AB 2181
Page
2
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.
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR : 54-18, 4/30/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Block, Bonilla, Bradford, Buchanan, Butler, Charles
Calderon, Campos, Carter, Chesbro, Dickinson, Eng, Feuer,
Fletcher, Fong, Fuentes, Galgiani, Gatto, Gordon, Gorell,
Hagman, Halderman, Hall, Hayashi, Roger Hern�ndez, Hill,
Huber, Hueso, Huffman, Jeffries, Lara, Bonnie Lowenthal,
AB 2181
Page
3
Ma, Mendoza, Miller, Mitchell, Monning, Pan, Perea, V.
Manuel P�rez, Portantino, Skinner, Solorio, Swanson,
Torres, Wieckowski, Williams, Yamada, John A. P�rez
NOES: Bill Berryhill, Conway, Cook, Donnelly, Beth Gaines,
Garrick, Grove, Harkey, Jones, Knight, Mansoor, Morrell,
Nestande, Nielsen, Norby, Silva, Valadao, Wagner
NO VOTE RECORDED: Blumenfield, Brownley, Cedillo, Davis,
Furutani, Logue, Olsen, Smyth
DLW:k 6/25/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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