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SB 1366

Public Utilities Commission: report.

2025-2026 Regular Session

SB 1366 extends California's Prompt Payment Act requirements to energy agencies, mandating faster invoice payment timelines for PUC and state energy commission contractors.

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.
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Bill Summary · SB 1366

Legislative bill overview

SB 1366 amends California's Prompt Payment Act to apply its payment timeline requirements to the Public Utilities Commission (PUC) and the State Energy Resources Conservation and Development Commission (now the California Energy Commission). The bill requires these state energy agencies to pay invoices within specified timeframes, similar to existing requirements for other state departments.

Why is this important

Contractors, vendors, and service providers who work with California's energy agencies currently lack the statutory payment protections that apply to other state agencies. This bill would establish enforceable payment deadlines, reducing cash flow problems for small businesses and potentially lowering costs for state energy programs by eliminating late-payment workarounds.

Potential points of contention

  • Budget impact uncertainty: Unclear whether agencies need additional appropriations to meet accelerated payment timelines or if existing budgets can absorb faster cash outflows
  • Administrative burden: PUC and energy agencies may argue they lack infrastructure or staffing to process payments within tighter timeframes without operational disruption
  • Competitive effects: Some vendors worry accelerated payments to certain contractors could advantage larger firms with better cash management while disadvantaging smaller operators

Compiled from official sources — confirm details with the bill’s official record.

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