California Prompt Payment Act: late payment penalties.

Assemblymember Connolly's modification to the California Prompt Payment Act replaces the annually declared fire season with a "peak fire protection staffing period" as the timeframe during which the Department of Forestry and Fire Protection may extend contractor payment deadlines. Under the amended law, the department's director determines this peak staffing period, during which payment approval dates can be extended by 30 calendar days for most contractors.

The legislation maintains existing exemptions from payment extensions for certified small businesses, nonprofit organizations, and nonprofit public benefit corporations. It also establishes provisions for suspending late payment penalties during major calamities, disasters, or criminal acts, as determined by the Director of Finance. These suspensions remain in effect until the director reinstates the penalty provisions, though they do not apply to resource conservation districts, small businesses, nonprofits, or organizations providing Medi-Cal services.

The bill addresses payment obligations during state budget delays, specifying that late payment penalties continue to accrue until invoices are paid, except for nonprofit public benefit corporations. This modification to the prompt payment framework adjusts payment timelines while preserving protections for smaller and nonprofit contractors who provide services to the state.