Bill > AB1039

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.