republic-os/legislation/us/states/ca/20252026/ab-1177.md

---
type: "Bill"
title: "California Prompt Payment Act: late payment penalties."
description: "Existing law, the California Prompt Payment Act, generally provides that a state agency that acquires property or services pursuant to a contract with a business but fails to make payment to the person or business on the date required by the contract is subject to a late payment penalty, as specified. The act also requires the required payment approval date, as defined, to be extended by 30 calendar days if an invoice from a business under a contract with the Department of Forestry and Fire Protection (department) would become subject to late payment penalties during the annually declared fire season, as declared by the Director of Forestry and Fire Protection (director) , except if the contract is with a certified small business, a nonprofit organization, or a nonprofit public benefit corporation."
jurisdiction: "us/states/ca"
legislature: "California Legislature"
session: "20252026"
identifier: "AB 1177"
citation: "California AB 1177 (20252026)"
classification: ["bill"]
subjects: ["CaliforniaPromptPaymentAct", "latepaymentpenalties"]
status: "enacted"
primary_sponsors: ["Connolly"]
version_count: 5
action_count: 20
vote_count: 5
first_action: "2025-02-21"
last_action: "2025-07-14"
source: "openstates"
source_identifier: "ocd-bill/b9719a21-4d73-4224-879a-bca804028bcb"
source_url: "http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB1177"
source_hash: "060e20c751ea4c6cc1f74942f0fa08034ce10651a0acbdcf801ed08465db659e"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-ca"]
---

# California AB 1177 (20252026) — California Prompt Payment Act: late payment penalties.

Existing law, the California Prompt Payment Act, generally provides that a state agency that acquires property or services pursuant to a contract with a business but fails to make payment to the person or business on the date required by the contract is subject to a late payment penalty, as specified. The act also requires the required payment approval date, as defined, to be extended by 30 calendar days if an invoice from a business under a contract with the Department of Forestry and Fire Protection (department) would become subject to late payment penalties during the annually declared fire season, as declared by the Director of Forestry and Fire Protection (director) , except if the contract is with a certified small business, a nonprofit organization, or a nonprofit public benefit corporation.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **02/21/25 - Introduced** (filed) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202520260AB1177&version=20250AB117799INT)
2. **03/28/25 - Amended Assembly** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202520260AB1177&version=20250AB117798AMD)
3. **07/14/25 - Chaptered** (committee substitute) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202520260AB1177&version=20250AB117796CHP)
4. **AB1177** (committee substitute) — [source](http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB1177)
5. **07/01/25 - Enrolled** (enrolled) — [source](https://leginfo.legislature.ca.gov/faces/billPdf.xhtml?bill_id=202520260AB1177&version=20250AB117797ENR)

## Votes

- Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar — **14–0** (pass) · upper
- AB 1177 Connolly Consent Calendar Second Day — **69–0** (pass) · lower
- Consent Calendar 2nd — **38–0** (pass) · upper
- Do pass. To Consent Calendar. — **15–0** (pass) · lower
- Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar — **22–0** (pass) · lower

## Sponsors

- Connolly — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2025-02-21** Introduced. To print. `introduction`
- **2025-02-22** From printer. May be heard in committee March 24.
- **2025-02-24** Read first time. `reading-1`
- **2025-03-28** Referred to Com. on G.O. `referral-committee`
- **2025-03-28** From committee chair, with author's amendments: Amend, and re-refer to Com. on G.O. Read second time and amended. `amendment-introduction, amendment-passage, reading-1, reading-2`
- **2025-04-01** Re-referred to Com. on G.O. `referral-committee`
- **2025-04-24** From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 22. Noes 0.) (April 23). Re-referred to Com. on APPR. `committee-passage, committee-passage-favorable, referral-committee`
- **2025-05-07** From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (May 7). `committee-passage, committee-passage-favorable`
- **2025-05-08** Read second time. Ordered to Consent Calendar. `reading-1, reading-2`
- **2025-05-15** Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1570.) `passage, reading-1, reading-3`
- **2025-05-15** In Senate. Read first time. To Com. on RLS. for assignment. `reading-1`
- **2025-05-28** Referred to Com. on G.O. `referral-committee`
- **2025-06-10** From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 14. Noes 0.) (June 10). Re-referred to Com. on APPR. `committee-passage, committee-passage-favorable, referral-committee`
- **2025-06-23** From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. `committee-passage, reading-2`
- **2025-06-24** Read second time. Ordered to Consent Calendar. `reading-1, reading-2`
- **2025-06-27** Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 1810.). `passage, reading-1, reading-3`
- **2025-06-27** In Assembly. Ordered to Engrossing and Enrolling. `committee-passage`
- **2025-07-03** Enrolled and presented to the Governor at 11 a.m.
- **2025-07-14** Approved by the Governor. `executive-signature`
- **2025-07-14** Chaptered by Secretary of State - Chapter 47, Statutes of 2025. `became-law`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/b9719a21-4d73-4224-879a-bca804028bcb`. Confidence: reported (aggregated from official California legislature records).