Prompt Payment Rubber Stamp

Under California's Prompt Payment Act and in relation to business conducted with the state, California-certified small businesses and recognized nonprofit organizations are entitled to have their properly executed and undisputed invoice handled promptly for payment. When such invoice is not paid within 45 days, these firms are also entitled to receive greater interest penalty payments. For more information, see the Prompt Payment Program.

The small customized rubber stamp contains the state seal and the firm's certification Reference Number (REF #). A rubber-stamped invoice alerts a state agency of the firm's small business/nonprofit status and that special handling is required. Late payment by a state agency results in interest penalties incurred by the agency and it must be automatically included and paid to the supplier.

Although purchase is not mandatory, it is recommended that eligible firms utilize the rubber stamp to facilitate prompt payment on their invoices. A prompt payment rubber-stamped invoice helps state agencies identify its significance and is likely to receive the proper attention.

Either a certified small business or a nonprofit organization registered with the Office of Small Business and DVBE Services (OSDS) are eligible to purchase and use the stamp. The stamp and prompt payment benefits are valid only when the firm's small business certification or nonprofit registration status is current with the OSDS.

Construction firms may purchase the prompt payment stamp for identification and prompt invoice handling purposes. However, late progress payment penalties are addressed and calculated separately as stipulated in Public Contract Code, Section 10261.5.

Once your firm is small business-certified or registered as a nonprofit organization with the OSDS, submit a completed Prompt Payment Rubber Stamp Order Form as directed.

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Prompt Payment Rubber Stamp