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CA AB2272

Bill

Status

Introduced

2/19/2026

Primary Sponsor

Jessica Caloza

Click for details

Origin

State Assembly

2025-2026 Regular Session

AI Summary

  • Requires prime contractors on state contracts to pay subcontractors, suppliers, and vendors within 45 days of receiving payment from the state, effective January 1, 2027
  • Mandates that any state payments received before January 1, 2027 but not yet passed to subcontractors must be remitted by February 15, 2027
  • Establishes a demerit system where 5 late payment violations within 3 years results in a 6-month ban from state contracts, and 10 violations results in a 1-year ban
  • Authorizes the Department of General Services to review and rescind existing contracts from prime contractors who repeatedly fail to comply
  • Directs the Department of General Services to monitor compliance and adopt regulations including a demerit tracking system

Legislative Description

State contracting: subcontractors: prompt payment.

Last Action

Referred to Com. on G.O.

3/9/2026

Committee Referrals

Governmental Organization3/9/2026

Full Bill Text

No bill text available