Public Utilities Commission: report.

Plain English Breakdown

The candidate explanation included details about penalties for late payments which are not specified in the bill summary.

Public Utilities Commission: Report on Timely Payments

The bill requires the Public Utilities Commission and the State Energy Resources Conservation and Development Commission to follow rules about making timely payments for grants, contracts, and other programs.

What This Bill Does

• Requires the PUC and the Energy Commission to comply with the California Prompt Payment Act when administering or approving programs.
• Ensures that payment timelines, advance payment structures, and accountability measures are incorporated into program designs, implementation plans, and cost recovery authorizations.
• Requires a minimum advance payment of 25% for contracts and grants, and 100% if the nonprofit organization has been in good standing with the state for at least three years.
• Prohibits the PUC and the Energy Commission from structuring procurement or payment terms that unreasonably restrict participation by small businesses, nonprofits, community-based organizations, or certain certified suppliers.
• Requires these commissions to annually submit a report to the Legislature on late payments.

Who It Names or Affects

• The Public Utilities Commission
• The State Energy Resources Conservation and Development Commission

Terms To Know

Public Utilities Commission (PUC)

A government agency that regulates public utilities like electricity, water, and gas companies.

State Energy Resources Conservation and Development Commission

An organization responsible for developing and implementing California's energy policies.

Limits and Unknowns

• The bill does not specify the exact penalties if payments are late.
• It is unclear how this will affect small businesses or nonprofits that have been in operation for less than three years.

Official Summary Text

SB 1366, as amended, Rubio.
State government: California Prompt Payment Act:
Public Utilities
Commission: State Energy Resources Conservation and Development Commission.
Commission: report.
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 fails to take certain timely actions and payment is not issued within 45 calendar days from the state agency’s receipt of an undisputed invoice, the act requires the state agency to pay certain penalties.
Existing law vests the Public Utilities Commission
(PUC)
with regulatory authority over public utilities, including every common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation,
telephone corporation, telegraph corporation, water corporation, sewer system corporation, and heat corporation, as specified.
Existing law requires each state agency, including the commission, to provide the Director of General Services with an annual report on late payment penalties that were paid by the agency, as provided.
Existing law vests the State Energy
Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the state’s energy policies.
This bill would require
the PUC and the Energy Commission, in administering or approving programs, to comply with the California Prompt Payment Act and to ensure that payment timelines, advance payment structures, and accountability measures required under the act are incorporated into program designs, implementation plans, and cost recovery authorizations. The bill would require the PUC and the Energy Commission to provide a minimum advance payment of 25%, and, if the nonprofit organization has been in good standing with the state for at least 3 years, to provide an advanced payment of 100%, except as provided. The bill would prohibit the PUC and the Energy Commission from structuring procurement or payment terms in a way that unreasonably restricts participation by small businesses, nonprofit
organizations, community-based organizations, or certain certified suppliers, as specified. The bill would require the PUC and the Energy Commission
the commission
to annually submit a report to the Legislature with information related to the payment of
invoices.
invoices, as provided.
Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the PUC is a crime.
Because a violation of a PUC action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

Download Bill PDF