California AB880: State government grants and contracts: payment of claims and grantees’ indirect costs.

What the bill says

An act to amend Sections 927.2, 927.6, 927.7, and 927.9 of, and to add Chapter 17.5 (commencing with Section 8900) to Division 1 of Title 2 of, the Government Code, relating to state government. state government State government grants and contracts: payment of claims and grantees’ indirect costs. The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract…

From the enrolled text, August 30, 2026:

An act to amend Sections 927.2, 927.6, 927.7, and 927.9 of, and to add Chapter 17.5 (commencing with Section 8900) to Division 1 of Title 2 of, the Government Code, relating to state government. state government State government grants and contracts: payment of claims and grantees’ indirect costs. The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract. If a state agency or the Controller fails to take certain timely actions and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice, the act requires the state agency or the Controller, as applicable, to pay certain penalties. The act provides an exception to certain penalty provisions applicable to services or equipment under the Medi-Cal program if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000. The act defines the term “grant” to mean a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency or restoration activities performed by a resource conservation district. The act also defines “nonprofit service organization” to mean a …

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Sponsors

• Steve Bennett (D, AD38) · primary sponsor