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CA AB2272
Bill
Status
Introduced
2/19/2026
Primary Sponsor
Jessica Caloza
Click for details
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