| 1 | | - | Enrolled September 04, 2024 Passed IN Senate August 30, 2024 Passed IN Assembly August 28, 2024 Amended IN Assembly August 23, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1246Introduced by Senator Limn(Coauthor: Senator Rubio)February 15, 2024An act to amend Sections 927.1, 927.2, 927.6, 927.7, and 927.9 of the Government Code, relating to state government administration.LEGISLATIVE COUNSEL'S DIGESTSB 1246, Limn. California Prompt Payment Act: nonprofit organizations.The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract. The act requires, to avoid late payment penalties, a state agency to make payment within 45 days of the receipt of an undisputed invoice, as prescribed. The act provides an exception from those penalty provisions if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000. The act defines the term grant to mean a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency or restoration activities performed by a resource conservation district.This bill would delete the definition of the term grant from the act and would delete the $500,000 exception described above. The bill would provide that only specified late payment penalties apply to a signed final agreement for a grant as described in the above-paragraph or a grant by any state agency to a nonprofit organization.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe 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) (1) 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.(2) A state agency that awards a grant, as described in this paragraph, shall make payment to the person or business that is the recipient of the grant on the date required by the grant and as required by Section 927.4 or be subject to a late payment penalty. This paragraph and the late payment penalties specified in Section 927.6 apply to a signed final agreement for any of the following types of grants:(A) A grant by any state agency to a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency.(B) A grant to a resource conservation district for restoration activities.(C) A grant by any state agency to a nonprofit organization.(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 either of the following:(1) A state agency acquiring property or services pursuant to a contract or that awards a grant.(2) Any person or business contracting with a state agency to provide property or services or that is the recipient of a grant.SEC. 2. Section 927.2 of the Government Code is amended to read:927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890.SEC. 3. Section 927.6 of the Government Code is amended to read:927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency.(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency.SEC. 4. Section 927.7 of the Government Code is amended to read:927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller.(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice.SEC. 5. Section 927.9 of the Government Code is amended to read:927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year.(b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public.(c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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| 1 | + | Amended IN Assembly August 23, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 1246Introduced by Senator Limn(Coauthor: Senator Rubio)February 15, 2024An act to amend Sections 927.1, 927.2, 927.3, 927.6, 927.7, and 927.9 of the Government Code, relating to state government administration.LEGISLATIVE COUNSEL'S DIGESTSB 1246, as amended, Limn. California Prompt Payment Act: nonprofit organizations.The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract. The act requires, to avoid late payment penalties, a state agency to make payment within 45 days of the receipt of an undisputed invoice, as prescribed. The act provides an exception from those penalty provisions if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000. The act defines the term grant to mean a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency or restoration activities performed by a resource conservation district.This bill would define delete the definition of the term grant to additionally mean a signed final agreement between any state agency and a nonprofit organization from the act and would delete the $500,000 exception described above. The bill would provide that only specified late payment penalties apply to a signed final agreement for a grant as described in the above-paragraph or a grant by any state agency to a nonprofit organization.The act authorizes a state agency to dispute for reasonable cause an invoice, refund request, or claim for Medi-Cal reimbursement, as specified.This bill would require, if a state agency disputes an invoice received from a nonprofit organization claimant, the state agency to pay, within 45 calendar days from receipt of the invoice, the undisputed portion of the invoice if the disputed amount is equal to or less than the lesser of $250 and 5% of the total amount of the invoice.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe 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) (1) 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.(2) A state agency that awards a grant, as defined in subdivision (b) of Section 927.2, described in this paragraph, shall make payment to the person or business that is the recipient of the grant on the date required by the grant and as required by Section 927.4 or be subject to a late payment penalty. This paragraph and the late payment penalties specified in Section 927.6 apply to a signed final agreement for any of the following types of grants:(A) A grant by any state agency to a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency.(B) A grant to a resource conservation district for restoration activities.(C) A grant by any state agency to a nonprofit organization.(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 either of the following:(1) A state agency acquiring property or services pursuant to a contract or that awards a grant.(2) Any person or business contracting with a state agency to provide property or services or that is the recipient of a grant.SECTION 1.SEC. 2. Section 927.2 of the Government Code is amended to read:927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b)(1) (A)Grant means a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency, or restoration activities performed by a resource conservation district.(B)Grant also means a signed final agreement between any state agency and a nonprofit organization.(2)A grant defined by this subdivision is a contract and subject to this chapter. (c)(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(d)(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(e)(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(f)(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(g)(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(h)(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(i)(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(j)(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(k)(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(l)(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(m)(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(n)(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(o)(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(p)(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890.SEC. 2.Section 927.3 of the Government Code is amended to read:927.3.(a)Except if payment is made directly by a state agency pursuant to Section 927.6, an undisputed invoice received by a state agency shall be submitted to the Controller for payment by the required payment approval date. A state agency may dispute an invoice submitted by a claimant for reasonable cause if the state agency notifies the claimant within 15 working days from receipt of the invoice, or delivery of property or services, whichever is later. A state employee shall not dispute an invoice, on the basis of minor or technical defects, in order to circumvent or avoid the general intent or any of the specific provisions of this chapter.(b)Except if payment is made directly by a state agency pursuant to Section 927.13, a notice of refund or other payment due received by a state agency shall be submitted to the Controller within 30 calendar days of the agencys receipt of the notice. A state agency may dispute a refund request for reasonable cause if the state agency notifies the claimant within 15 working days after the state agency receives notice from the individual that the refund is due.(c)If a state agency disputes an invoice received from a nonprofit organization claimant, the state agency shall pay, within 45 calendar days from receipt of the invoice, the undisputed portion of the invoice if the disputed amount is equal to or less than the lesser of the following:(1)Two hundred fifty dollars ($250).(2)Five percent of the total amount of the invoice.SEC. 3. Section 927.6 of the Government Code is amended to read:927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency.(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency.SEC. 4. Section 927.7 of the Government Code is amended to read:927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller.(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice.SEC. 5. Section 927.9 of the Government Code is amended to read:927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year.(b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public.(c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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| 41 | | - | 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) (1) 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.(2) A state agency that awards a grant, as described in this paragraph, shall make payment to the person or business that is the recipient of the grant on the date required by the grant and as required by Section 927.4 or be subject to a late payment penalty. This paragraph and the late payment penalties specified in Section 927.6 apply to a signed final agreement for any of the following types of grants:(A) A grant by any state agency to a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency.(B) A grant to a resource conservation district for restoration activities.(C) A grant by any state agency to a nonprofit organization.(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 either of the following:(1) A state agency acquiring property or services pursuant to a contract or that awards a grant.(2) Any person or business contracting with a state agency to provide property or services or that is the recipient of a grant.SEC. 2. Section 927.2 of the Government Code is amended to read:927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890.SEC. 3. Section 927.6 of the Government Code is amended to read:927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency.(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency.SEC. 4. Section 927.7 of the Government Code is amended to read:927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller.(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice.SEC. 5. Section 927.9 of the Government Code is amended to read:927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year.(b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public.(c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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| 46 | + | 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) (1) 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.(2) A state agency that awards a grant, as defined in subdivision (b) of Section 927.2, described in this paragraph, shall make payment to the person or business that is the recipient of the grant on the date required by the grant and as required by Section 927.4 or be subject to a late payment penalty. This paragraph and the late payment penalties specified in Section 927.6 apply to a signed final agreement for any of the following types of grants:(A) A grant by any state agency to a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency.(B) A grant to a resource conservation district for restoration activities.(C) A grant by any state agency to a nonprofit organization.(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 either of the following:(1) A state agency acquiring property or services pursuant to a contract or that awards a grant.(2) Any person or business contracting with a state agency to provide property or services or that is the recipient of a grant.SECTION 1.SEC. 2. Section 927.2 of the Government Code is amended to read:927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b)(1) (A)Grant means a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency, or restoration activities performed by a resource conservation district.(B)Grant also means a signed final agreement between any state agency and a nonprofit organization.(2)A grant defined by this subdivision is a contract and subject to this chapter. (c)(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(d)(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(e)(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(f)(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(g)(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(h)(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(i)(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(j)(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(k)(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(l)(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(m)(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(n)(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(o)(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(p)(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890.SEC. 2.Section 927.3 of the Government Code is amended to read:927.3.(a)Except if payment is made directly by a state agency pursuant to Section 927.6, an undisputed invoice received by a state agency shall be submitted to the Controller for payment by the required payment approval date. A state agency may dispute an invoice submitted by a claimant for reasonable cause if the state agency notifies the claimant within 15 working days from receipt of the invoice, or delivery of property or services, whichever is later. A state employee shall not dispute an invoice, on the basis of minor or technical defects, in order to circumvent or avoid the general intent or any of the specific provisions of this chapter.(b)Except if payment is made directly by a state agency pursuant to Section 927.13, a notice of refund or other payment due received by a state agency shall be submitted to the Controller within 30 calendar days of the agencys receipt of the notice. A state agency may dispute a refund request for reasonable cause if the state agency notifies the claimant within 15 working days after the state agency receives notice from the individual that the refund is due.(c)If a state agency disputes an invoice received from a nonprofit organization claimant, the state agency shall pay, within 45 calendar days from receipt of the invoice, the undisputed portion of the invoice if the disputed amount is equal to or less than the lesser of the following:(1)Two hundred fifty dollars ($250).(2)Five percent of the total amount of the invoice.SEC. 3. Section 927.6 of the Government Code is amended to read:927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency.(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency.SEC. 4. Section 927.7 of the Government Code is amended to read:927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller.(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice.SEC. 5. Section 927.9 of the Government Code is amended to read:927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year.(b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public.(c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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| 77 | | - | SEC. 2. Section 927.2 of the Government Code is amended to read:927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890. |
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| 82 | + | SECTION 1.SEC. 2. Section 927.2 of the Government Code is amended to read:927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b)(1) (A)Grant means a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency, or restoration activities performed by a resource conservation district.(B)Grant also means a signed final agreement between any state agency and a nonprofit organization.(2)A grant defined by this subdivision is a contract and subject to this chapter. (c)(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(d)(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(e)(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(f)(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(g)(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(h)(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(i)(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(j)(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(k)(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(l)(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(m)(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(n)(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(o)(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(p)(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890. |
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| 83 | | - | 927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890. |
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| 88 | + | 927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b)(1) (A)Grant means a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency, or restoration activities performed by a resource conservation district.(B)Grant also means a signed final agreement between any state agency and a nonprofit organization.(2)A grant defined by this subdivision is a contract and subject to this chapter. (c)(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(d)(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(e)(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(f)(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(g)(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(h)(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(i)(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(j)(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(k)(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(l)(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(m)(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(n)(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(o)(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(p)(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890. |
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| 85 | | - | 927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890. |
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| 90 | + | 927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b)(1) (A)Grant means a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency, or restoration activities performed by a resource conservation district.(B)Grant also means a signed final agreement between any state agency and a nonprofit organization.(2)A grant defined by this subdivision is a contract and subject to this chapter. (c)(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(d)(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(e)(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(f)(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(g)(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(h)(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(i)(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(j)(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(k)(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(l)(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(m)(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(n)(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(o)(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(p)(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890. |
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| 87 | | - | 927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890. |
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| 92 | + | 927.2. The following definitions apply to this chapter:(a) Claim means payment requests prepared and submitted by a state agency to the Controller for payment to the named claimant.(b)(1) (A)Grant means a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency, or restoration activities performed by a resource conservation district.(B)Grant also means a signed final agreement between any state agency and a nonprofit organization.(2)A grant defined by this subdivision is a contract and subject to this chapter. (c)(b) Invoice means a bill or claim that requests payment on a contract under which a state agency acquires property or services or pursuant to a signed final grant agreement.(d)(c) Medi-Cal program means the program established pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.(e)(d) Nonprofit public benefit corporation means a corporation, as defined by subdivision (b) of Section 5046 of the Corporations Code, that has registered with the Department of General Services as a small business.(f)(e) Nonprofit organization means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.(g)(f) Notice of refund or other payment due means a state agency provides notice to the person that a refund or payment is owed to that person or the state agency receives notice from the person that a refund or undisputed payment is due.(h)(g) Payment means any form of the act of paying, including, but not limited to, the issuance of a warrant or a registered warrant by the Controller, or the issuance of a revolving fund check by a state agency, to a claimant in the amount of an undisputed invoice.(i)(h) Reasonable cause means a determination by a state agency that any of the following conditions are present:(1) There is a discrepancy between the invoice or claimed amount and the provisions of the contract or grant.(2) There is a discrepancy between the invoice or claimed amount and either the claimants actual delivery of property or services to the state or the states acceptance of those deliveries.(3) Additional evidence supporting the validity of the invoice or claimed amount is required to be provided to the state agency by the claimant.(4) The invoice has been improperly executed or needs to be corrected by the claimant.(5) There is a discrepancy between the refund or other payment due as calculated by the person to whom the money is owed and by the state agency.(j)(i) Received by a state agency means the date an invoice is delivered to the state location or party specified in the contract or grant or, if a state location or party is not specified in the contract or grant, wherever otherwise specified by the state agency.(k)(j) Required payment approval date means the date on which payment is due as specified in a contract or grant or, if a specific date is not established by the contract or grant, 30 calendar days following the date upon which an undisputed invoice is received by a state agency.(l)(k) Resource conservation district means a resource conservation district established pursuant to Division 9 (commencing with Section 9001) of the Public Resources Code.(m)(l) Revolving fund means a fund established pursuant to Article 5 (commencing with Section 16400) of Chapter 2 of Part 2 of Division 4 of Title 2.(n)(m) Small business means a business certified as a small business in accordance with subdivision (d) of Section 14837, including certified small businesses engaged in the development, design, and construction of Californias high-speed rail system pursuant to the California High-Speed Rail Act (Division 19.5 (commencing with Section 185000) of the Public Utilities Code).(o)(n) Small business and nonprofit organization mean, in reference to providers under the Medi-Cal program, a business or organization that meets all of the following criteria:(1) The principal office is located in California.(2) The officers, if any, are domiciled in California.(3) If a small business, it is independently owned and operated.(4) The business or organization is not dominant in its field of operation.(5) Together with any affiliates, the business or organization has gross receipts from business operations that do not exceed three million dollars ($3,000,000) per year, except that the Director of Health Care Services may increase this amount if the director deems that this action would be in furtherance of the intent of this chapter.(p)(o) Department of FISCal means the organization responsible for operating and maintaining the Financial Information System for California integrating statewide accounting, budgeting, cash management, and procurement pursuant to subdivision (b) of Section 11890. |
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| 142 | 239 | | |
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| 143 | 240 | | SEC. 3. Section 927.6 of the Government Code is amended to read:927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency.(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency. |
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| 144 | 241 | | |
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| 145 | 242 | | SEC. 3. Section 927.6 of the Government Code is amended to read: |
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| 146 | 243 | | |
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| 147 | 244 | | ### SEC. 3. |
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| 148 | 245 | | |
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| 149 | 246 | | 927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency.(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency. |
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| 150 | 247 | | |
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| 151 | 248 | | 927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency.(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency. |
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| 152 | 249 | | |
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| 153 | 250 | | 927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency.(b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency. |
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| 154 | 251 | | |
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| 155 | 252 | | |
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| 156 | 253 | | |
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| 157 | 254 | | 927.6. (a) State agencies shall pay applicable penalties, without requiring that the claimant submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. The penalty shall cease to accrue on the date the state agency submits the claim to the Controller for payment or pays the claimant directly, and shall be paid for out of the state agencys support appropriation. If the claimant is a resource conservation district, certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the state agency shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the state agency. |
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| 158 | 255 | | |
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| 159 | 256 | | (b) For all other businesses, the state agency shall pay a penalty at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the state agency. On an exception basis, state agencies may avoid payment of penalties for failure to submit a correct claim to the Controller by the required payment approval date by paying the claimant directly from the state agencys revolving fund within 45 calendar days following the date upon which an undisputed invoice is received by the state agency. |
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| 160 | 257 | | |
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| 161 | 258 | | SEC. 4. Section 927.7 of the Government Code is amended to read:927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller.(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice. |
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| 162 | 259 | | |
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| 163 | 260 | | SEC. 4. Section 927.7 of the Government Code is amended to read: |
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| 164 | 261 | | |
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| 165 | 262 | | ### SEC. 4. |
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| 166 | 263 | | |
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| 167 | 264 | | 927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller.(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice. |
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| 168 | 265 | | |
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| 169 | 266 | | 927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller.(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice. |
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| 170 | 267 | | |
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| 171 | 268 | | 927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller.(b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice. |
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| 172 | 269 | | |
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| 173 | 270 | | |
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| 174 | 271 | | |
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| 175 | 272 | | 927.7. (a) The Controller shall pay claimants within 15 calendar days of receipt of a correct claim from the state agency. If the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. Penalties shall cease to accrue on the date full payment is made, and shall be paid for out of the Controllers funds. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit public benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the Controller shall pay to the claimant a penalty at a rate of 10 percent above the United States Prime Rate on June 30 of the prior fiscal year, from the 16th calendar day following receipt of the claim from the state agency. If the amount of the penalty is ten dollars ($10) or less, the penalty shall be waived and not paid by the Controller. For all other businesses, the Controller shall pay penalties at a rate of 1 percent above the Pooled Money Investment Account daily rate on June 30 of the prior fiscal year, not to exceed a rate of 15 percent. If the amount of the penalty is one hundred dollars ($100) or less, the penalty shall be waived and not paid by the Controller. |
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| 176 | 273 | | |
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| 177 | 274 | | (b) The Department of FISCal shall be responsible for applicable penalties if the Financial Information System for California delays the delivery of a correct claim from the state agency to the Controller, preventing the Controller from making payment within 15 calendar days and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice. |
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| 178 | 275 | | |
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| 179 | 276 | | SEC. 5. Section 927.9 of the Government Code is amended to read:927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year.(b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public.(c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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| 180 | 277 | | |
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| 181 | 278 | | SEC. 5. Section 927.9 of the Government Code is amended to read: |
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| 183 | 280 | | ### SEC. 5. |
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| 185 | 282 | | 927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year.(b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public.(c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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| 187 | 284 | | 927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year.(b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public.(c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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| 189 | 286 | | 927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year.(b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public.(c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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| 193 | 290 | | 927.9. (a) Except as provided in subdivision (c), on an annual basis, within 90 calendar days following the end of each fiscal year, state agencies shall provide the Director of General Services with a report on late payment penalties that were paid by the state agency in accordance with this chapter during the preceding fiscal year. |
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| 195 | 292 | | (b) The report required by subdivision (a) shall separately identify the total number and dollar amount of late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds or other payments to individuals. State agencies may, at their own initiative, provide the director with other relevant performance measures. The director shall prepare a report separately listing the number and total dollar amount of all late payment penalties paid to small businesses, other businesses, nonprofit organizations, and refunds and other payments to individuals by each state agency during the preceding fiscal year, together with other relevant performance measures, and shall make the information available to the public. |
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| 197 | 294 | | (c) The reporting requirements of subdivisions (a) and (b) are not applicable to the Department of Forestry and Fire Protection. |
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