CA SB1246

Deletes the $500,000 exception that previously exempted grants to nonprofit organizations under $500,000 from late payment penalties.

Extends late payment penalty requirements to grants by any state agency to nonprofit organizations, in addition to existing coverage for victim services, prevention programs, and resource conservation district grants.

Requires state agencies and the Controller to pay higher late payment penalties (10 percent above the United States Prime Rate) to nonprofit organizations, certified small businesses, and resource conservation districts, with a $10 minimum threshold before penalties apply.

Maintains lower penalty rates (1 percent above Pooled Money Investment Account daily rate, capped at 15 percent) for other businesses, with a $100 minimum threshold.

Requires state agencies to submit claims to the Controller within 45 calendar days of receiving an undisputed invoice or face penalties, with no ability to waive or limit these penalties except in emergencies.