SB 1366: Public Utilities Commission: report.
This bill requires state agencies to comply with the California Prompt Payment Act when administering or approving programs. It mandates that these agencies provide a minimum advance payment of 25% for certain programs and 100% for organizations that have been in good standing for at least three years. The bill also prohibits agencies from structuring procurement or payment terms in a way that unfairly restricts participation by small businesses, nonprofit organizations, or community-based organizations. Additionally, the bill requires the Public Utilities Commission and the State Energy Resources Conservation and Development Commission to annually submit a report to the legislature with information related to the payment of invoices.
| Aug. 13, 2026 | August 13 hearing: Held in committee and under submission. |
| Aug. 05, 2026 | August 5 set for first hearing. Placed on suspense file. |
| Jun. 25, 2026 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 18. Noes 0.) (June 24). Re-referred to Com. on APPR. |
| Jun. 04, 2026 | Referred to Com. on U. & E. |
| May. 27, 2026 | In Assembly. Read first time. Held at Desk. |
| Amended IN Senate April 28, 2026 |
| Amended IN Senate March 23, 2026 |
| Introduced by Senator Rubio |
February 20, 2026 |
LEGISLATIVE COUNSEL'S DIGEST
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 State Energy Resources Conservation and Development Commission (Energy Commission) with various responsibilities for developing and implementing the state’s energy policies.
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.
The people of the State of California do enact as follows:
(a)In administering or approving any program, the commission shall comply with the California Prompt Payment Act (Chapter 4.5 (commencing with Section 927) of Part 3 of Division 3.6 of Title 1 of the Government Code).
(b)(1)The commission shall ensure that payment timelines, advance payment structures, and accountability measures required under the California Prompt Payment Act are incorporated into program designs, implementation plans, and cost recovery authorizations.
(2)Notwithstanding any other law, payment shall be made within 45 calendar days from receipt of an invoice. An invoice shall not be disputed on the basis of a minor or technical defect in order to circumvent or avoid the general intent of any of the specifics of this section.
(3)Interest on late payment penalties shall accrue automatically and shall not be waived by contract terms.
(4)The commission shall provide a minimum advance payment of 25 percent, unless a written justification is provided. If the nonprofit organization has been in good standing with the state for at least three years, the commission shall provide an advanced payment of 100 percent, unless a written justification is provided.
(c)The commission shall not structure procurement or payment terms in a way that unreasonably restricts participation by small businesses, nonprofit organizations, community-based organizations, or suppliers certified pursuant to General Order 156.
(d)(1)The commission shall annually submit a report to the Legislature that includes all of the following:
(A)The information provided in the report required pursuant to Section 927.9 of the Government Code.
(B)The number of invoices submitted to the commission that were considered disputed.
(C)The number of invoices that were paid by the commission more than 45 days after receipt.
(D)Steps taken to mitigate cashflow barriers to the entities identified in subdivision (c) during procurement design.
(2)A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(a)In administering or approving any ratepayer-funded program, the commission shall comply with the California Prompt Payment Act (Chapter 4.5 (commencing with Section 927) of Part 3 of Division 3.6 of Title 1 of the Government Code).
(b)(1)The commission shall ensure that payment timelines, advance payment structures, and accountability measures required under the California Prompt Payment Act are incorporated into program designs, implementation plans, and cost recovery authorizations.
(2)Notwithstanding any other law, payment shall be made within 45 calendar days from receipt of an invoice. An invoice shall not be disputed on the basis of a minor or technical defect in order to circumvent or avoid the general intent of any of the specifics of this section.
(3)Interest on late payment penalties shall accrue automatically and shall not be waived by contract terms.
(4)The commission shall provide a minimum advance payment of 25 percent, unless a written justification is provided. If the nonprofit organization has been in good standing with the state for at least three years, the commission shall provide an advanced payment of 100 percent, unless a written justification is provided.
(c)The commission shall not structure procurement or payment terms in a way that unreasonably restricts participation by small businesses, nonprofit organizations, community-based organizations, or suppliers certified pursuant to General Order 156.
(d)This section does not alter the commission’s ratemaking authority or obligation to protect ratepayers.
SEC. 3.SECTION 1.
910.11.
The commission shall annually submit a report to the Legislature that includes all of the following:No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.