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 PROGRAM INFORMATION

Prompt payment ensures that payments due on a contract awarded to a certified small business or a non-profit are paid in a timely manner. Assistance and advocacy provides clarification of the Prompt Payment Act for suppliers and State departments. 

The Payment Offices Directory helps contractors make contact with appropriate departmental accounting personnel. The Prompt Payment Tool Kit contains Frequently Asked Questions, the Penalty Calculation Process (with an example), a sample of the typical State invoice payment process, and California Government Code 927 et seq. California Prompt Payment Act.

To dispute an invoice:

Suppliers:

  • Contact Awarding Department’s Payment Office (See Directory in Resources below.)
  • Contact the Awarding Department’s Small Business Advocate (See Small Business Advocate Directory in Resources below.)

State Departments:

  • Complete the Invoice Dispute Notification Form-STD. 209
  • Submit copy of form, invoice & copy of contract to your Department’s Accounting section. (Additional procedures may exist.)
  • Follow all other Departmental procedures
  • Should you have questions regarding Prompt Payment, email the DGS’ Small Business & DVBE Advocate help desk at: Advocate@dgs.ca.gov

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.

 

Please register/login here to view the following items:

Late Payment Penalty Paid Annual Reports

  • Fiscal Year 2017/2018
  • Fiscal Year 2016/2017
  • Fiscal Year 2015/2016
  • Fiscal Year 2014/2015
  • Fiscal Year 2013/2014
  • Fiscal Year 2012/2013
  • Fiscal Year 2012/2013
  • Fiscal Year 2011/2012
  • Fiscal Year 2010/2011
  • Fiscal Year 2009/2010
  • Fiscal Year 2008/2009
  • Fiscal Year 2007/2008
  • Fiscal Year 2006/2007
  • Fiscal Year 2005/2006
  • Fiscal Year 2004/2005

Forms

Please register/login here to view the following items:

  • Invoice Dispute Notification - STD. 209

RESOURCES

Please register/login here to view the following items:

  • Payment Offices Directory
  • Prompt Payment Tool Kit

 

Authority

CONTACT

Office of Small Business and DVBE Services

Department of General Services
Procurement Division

707 Third Street
West Sacramento, CA 95605

 

Phone: (916) 375-4940
Email: OSDSHelp@dgs.ca.gov