Greetings:
As the Small Business and Disabled Veteran Business Enterprise (SB/DVBE) Advocate I understand the value of prompt payments to California certified Small Businesses. Timely payments are an important resource for California firms. That’s why the California Prompt Payment Act pursuant to GC 927.11(d) provides late payment penalties to certified SB firms until an invoice is paid and provides late payment penalties when there is no budget act. To learn more about the California Prompt Payment Act, please visit the Department of General Services webpage at:
http://www.dgs.ca.gov/pd/Programs/OSDS/PromptPayment.aspx
While proper planning may help reduce the worst effects of a budget impasse, extended shortfalls continue to have adverse impacts. Earlier this year I stood firmly in support of the SB/DVBE community by recommending that the Brown Administration consider legislation or policies that will establish an ongoing 12 month pay cycle for SB/DVBE firms regardless of the state’s budget act. Additionally, I requested that the Brown Administration establish a bonding and credit arm for SB/DVBE firms to better compete for California’s contracting opportunities. These action items along with other requests are under final review by the Department of General Services and will eventually make their way to the Governor’s Office. The California Department of Corrections and Rehabilitation recognizes SB/DVBE partnerships and takes steps to encourage prompt payments. The department continues to actively provide customer service and database training to improve payment processing to SB/DVBE firms.
As a friendly reminder to the State of California business partners, the end of fiscal year 2010-11 is steadily approaching and it may be advantageous to process any pending prompt payment requests. To learn more about your rights under the Prompt Payment Act and changes to the penalties incurred rate for awards starting October 19, 2010, please see the attached California Prompt Payment Act matrix. To inquire about prompt payment with the California Department of Corrections and Rehabilitation, please email your inquiry to the CDCR SB/DVBE Advocate
at: SBDVBEAdvocate@cdcr.ca.gov
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