State government: prompt payment of claims.

The California Prompt Payment Act dictates that a state agency that fails to make a timely payment for goods or services acquired pursuant to a contract with a specified business or organization is subject to a late payment penalty. The act does not apply to claims for reimbursement for health care services provided under the Medi-Cal program, unless the Medi-Cal health care services provider is a small business or nonprofit organization. The act defines the terms "small business" and "nonprofit organization," in reference to providers under the Medi-Cal program, to mean a business or organization that meets specified criteria, including that, except as specified, together with any affiliates, the business or organization has gross receipts from business operations that do not exceed $3,000,000 per year. This bill would increase that gross receipts maximum to $4,000,000.