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Bill > AB1039


CA AB1039

CA AB1039
State-funded assistance grants and contracts: advance payments.


summary

Introduced
02/20/2025
In Committee
08/13/2026
Crossed Over
06/02/2025
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to amend Sections 8334 and 11019.3 of the Government Code, relating to state government.

AI Summary

This bill updates California rules regarding advance payments for state-funded grants and contracts provided to non-profit organizations and federally recognized Indian tribes, collectively referred to as "recipient entities." It expands who qualifies as a recipient entity to include non-profits qualified under state law, and requires state agencies to register grants with the California State Library, including details on advance payment availability. Starting January 1, 2027, the bill mandates that state agencies must provide advance payments for grants and contracts valued at $150,000 or less if the recipient meets certain criteria, such as having low operating reserves of less than 120 days or serving an underresourced community. While recipients can choose to decline the advance and opt for standard reimbursement instead, agencies can also opt out of providing advances under specific circumstances, such as conflicts with federal law or bond requirements. Additionally, the legislation requires the Strategic Growth Council, alongside other state departments, to develop and publish a Statewide Advance Funds and Reconciliation Guide by July 1, 2027, which will serve as a standardized operating procedure for state agencies to streamline the disbursement, tracking, and reconciliation of advance funds.

Committee Categories

Budget and Finance, Government Affairs

Sponsors (2)

Last Action

Read third time and amended. Ordered to second reading. (on 08/21/2026)

Bill Topics

Government Operations
  • ‐ Government Efficiency and Bureaucratic Oversight
  • ‐ Government Procurement and Contracting

bill text


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