Bill > S3786

Introduced Session

This bill establishes certain requirements for the State and local governments awarding contracts or grants to nonprofit organizations. This bill establishes a de minimis indirect cost rate of 15 percent of the modified total direct costs to nonprofit organizations that have been awarded a contract by a State agency or local government agency. This rate will apply when the source of funding is from federal funds or State funds. Any State agency or local government agency will be prohibited from limiting reimbursements of indirect, administrative, or overhead costs for nonprofit organizations participating in a contract or grant with such agency on or after the effective date of this bill. The Department of the Treasury will be required to oversee and manage the development and maintenance of a database which can be used by nonprofit organizations that intend to participate in contracts or grants offered by State agencies or local government agencies. All such organizations can submit to the database any general documents specified under this bill that are required for State or local contracts or grants. The State Treasurer can permit the submission of other documents relevant to bids for and awards of public contracts and grants as the State Treasurer determines to be appropriate for the purpose of the database. The information maintained in the database will exclude personal identifying information of individuals to prevent compromising personal privacy and security. State agencies or local government agencies seeking to award a contract or grant will be required to utilize the documentation submitted to the database by a nonprofit organization, unless the documentation is not available, in which case the agency can request the document from such nonprofit organization. This bill also requires State agencies and local government agencies to review and adopt the cost principles and federal grant reforms contained in the federal Office of Management and Budget's Uniform Guidance standards with regard to nonprofit organizations to the extent permitted by law. This bill permits the State Treasurer and local government agencies to create a list of common terminology relevant to contracts or grants for nonprofit organizations to define services, processes, and client populations and a list of common terminology for contracts or grants to be accessible to all State and local agencies. This bill also requires the amount of any contract, awarded by a State agency or local government agency, determined for the prior calendar year to be adjusted annually in direct proportion to the percent change in the Consumer Price Index over a 12-month period beginning November 1 and ending October 31. This bill also requires a contract awarded by a State agency or local government agency to be automatically extended for a period of three months if the extension or renewal process is not completed within 10 days of expiration of such contract. This bill prohibits any unilateral change of contract language or terms by a State agency or local government agency for a contract awarded to a nonprofit organization. This bill requires the State Treasurer and local government agencies to develop procedures to reduce redundant monitoring of nonprofit organizations that have been awarded contracts or grants by standardizing and integrating reporting procedures across all State or local agencies. This bill also requires that, if goods and services are rendered, a State agency or local government agency will be required to pay a nonprofit organization 30 calendar days from the date specified in the contract. If no required payment date is specified in the contract, then the required payment date is 30 calendar days from the receipt of a properly executed State agency or local government agency contract, or 30 calendar days from the receipt of goods or services, whichever is later. This bill requires interest on required payments that are not made on or before the required payment date pursuant to a properly executed State agency or local government agency to be paid at a rate of 1 percent of any amount approved and unpaid. Interest can be paid by separate payment to a nonprofit organization, but must be paid within 30 days of the late payment. This bill defines "local government" to mean a municipality, county, or other political subdivision of the State. This bill defines "nonprofit organization" to mean a private nonprofit organization that is exempt from federal taxation pursuant to section 501(c)(3) of the federal Internal Revenue Code, 26 U.S.C. s.501(c)(3). This bill defines "State agency" to mean any of the principal departments in the Executive Branch of the State Government, and any division, board, bureau, office, commission, or other instrumentality within or created by such department and any independent State authority, commission, instrumentality, or agency which is authorized by law to award contracts or grants.

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Angela Mcknight (D)*,  John McKeon (D),  Britnee Timberlake (D), 

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 10/10/2024)

Official Document