Bill > H0233

This bill proposes several key improvements to the state's grant processes for nonprofits. First, it requires the Secretary of Administration to update Administrative Bulletin 5 by July 1, 2025, to establish a uniform process that allows nonprofits to use an indirect rate higher than the standard de minimis rate (a simplified method for calculating indirect costs). The bill mandates that state agencies execute grant agreements within 30 days of fund appropriation or award notification, and promptly pay grantees within 30 days of receiving a valid payment request. To increase transparency, the Agency of Administration must create an online form for grantees to report delays in grant agreement execution or payment, and develop a public database to track these reports. Additionally, the bill establishes a Working Group on State Grant Processes, comprising representatives from state government, nonprofits, and the legislature, to comprehensively assess and recommend improvements to the state's grant processes. This Working Group will examine issues such as reimbursement practices, grant application complexity, indirect rate consistency, and the impact of delayed grant agreements and payments on nonprofit organizations. The group is required to submit a report with recommendations by September 1, 2026, and will cease to exist on December 31, 2026.

Government Affairs

https://legislature.vermont.gov/bill/status/2026/H.233