Procurement Department
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Prompt Payment Program

 
Prompt Payment Act
The Prompt Payment Act requires State agencies to pay properly submitted, undisputed invoices within 45 calendar days of initial receipt.  If the requirement is not met, State departments must automatically calculate and pay the appropriate late payment penalties as specified in Government Code section 927, et seq.

Prompt Payment Assistance and Advocacy
Prompt payment assistance and advocacy provides interpretation of the Prompt Payment Act for suppliers and State departments as requested. By trouble-shooting payment issues and facilitating access to departments, payment problems can be resolved to the mutual satisfaction of all parties.  The Payment Offices Directory helps contractors make contact with appropriate departmental accounting personnel. The Prompt Payment Tool Kit contains an executive summary of the prompt payment issue, Frequently Asked Questions, an excerpt from State Administrative Manual on the Penalty Calculation Process (with an example), a sample flow chart of the typical State invoice payment process, and the full text of California Government Code 927 et seq. The California Prompt Payment Act.

Late Payment Penalty Report
The California Prompt Payment Act requires that departments report annually to the Director of the Department of General Services the number and amount of late payment interest penalty payments paid to suppliers each fiscal year. In accordance with the Act, penalty payment data is collected, compiled, and reported to the Director.

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Updated : 8/28/2008