Advance Payments - 1901.2

Advance Payment Prohibited

California Constitution, Article XVI, section 3 and section 6, prohibits gifts/donations of public funds.  An advance payment or pre-payment is considered a gift of public funds since the State has received no benefit and the subsequent receipt of goods/services cannot be guaranteed.

Consequently, departments shall not pay for services or goods in advance of service performance or goods received.  The only exceptions are noted in Government Code, Sections 11019 and 11256.

(IT) Software Support and Maintenance Programs

Software support and maintenance programs can be paid upon receipt of an undisputed invoice.  Software support or maintenance service typically includes access to a customer technical support phone line, correcting customized software programs, software upgrades via different types of media and documentation. It does not include consulting services to develop or assist in correcting customized software programs.

Subscriptions

Subscriptions, magazines and periodicals can be paid upon receipt of an undisputed invoice.