State-funded assistance grants and contracts: advance payments.
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Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill modifies how California state agencies can provide advance payments to organizations receiving grants and contracts. It simplifies the process by reducing the requirement to prioritize projects serving disadvantaged communities and streamlining the advance payment request process. The bill also adjusts financial requirements, limiting the need for federally insured accounts to grants over $10,000 and requiring clear communication about advance payment percentages in grant solicitations.
Key provisions
- Limits prioritization of recipient entities to grants advertised before January 1, 2026.
- Eliminates the requirement to stipulate an advance payment structure and request process.
- Limits the requirement for a federally insured account to grants exceeding $10,000.
- Requires grant solicitations to state the percentage of funds available as an advance payment.
- Requires state agencies to register grant programs with the California State Library.
- Requires agencies to include advance payment percentage information in library registrations.
- Allows recipients to advance funds to subrecipients.
- Establishes procedures for progress reporting and returning unused advance funds.
Who is affected
- State agencies administering grants and contracts
- Private, nonprofit organizations
- Federally recognized Indian tribes
- Grant recipients
Bill text
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