Prompt Payment Program

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.

Should an invoice be disputed, use the Invoice Dispute Notification - STD. 209 form.


Prompt Payment Assistance & 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.  Agencies may also choose to report Performance Measurement Information.  In accordance with the Act, penalty payment data is collected, compiled, and reported to the Director.

Late Payment Penalty Annual Reports

Prompt Pay Late Form (MS Excel)

Contact OSDS

Business Hours
Monday - Friday, 8 a.m. to 5 p.m.

Physical Location
707 3rd Street, 1st Floor, Room 400
West Sacramento, CA 95605

Driving Directions & Parking Information

Mailing Address
Office of Small Business and DVBE Services, Room 1-400, MS 210
P.O. Box 989052
West Sacramento, CA 95798-9052

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Fax Number

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