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 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:


  • 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:

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 Paid Annual Reports



Office of Small Business and DVBE Services

Department of General Services
Procurement Division

707 Third Street
West Sacramento, CA 95605


Phone: (916) 375-4940