Bill > AB880

This bill modifies California's government grant and contract payment regulations to improve financial transparency and support for nonprofit organizations. It expands the definition of "grant" to include agreements between state agencies and nonprofit organizations, removes the previous $500,000 limitation on nonprofit organization grant penalties, and redefines "nonprofit organization" as entities qualifying under the 501(c)(3) Internal Revenue Code provision. The bill introduces new requirements for state agencies to reimburse grantees' indirect costs, allowing them to choose from several rate options including their federally negotiated indirect cost rate, a standard de minimis rate, an existing state rate, or a proposed rate, as long as the rate is disclosed in the original grant application. Additionally, the bill adjusts the conditions under which a state agency can dispute an invoice, now requiring the discrepancy to be greater than $250 or 5% of the invoice amount. The legislation aims to ensure fair compensation for nonprofit organizations and other entities providing services through state-funded grants, with provisions applicable to grant programs using state funds, federal funds, or a combination of funding sources.

Budget and Finance, Government Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB880