California Prompt Payment Act: nonprofit organizations.

Under the California Prompt Payment Act, a state agency that awards a grant or that acquires property or services pursuant to a contract is required to make timely payments pursuant to the grant or contract. If a state agency or the Controller fails to take certain timely actions, and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice, the act requires the state agency or the Controller, as applicable, to pay certain penalties. The act provides an exception from those penalty provisions if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000. The act defines the term "grant" to mean a signed final…