Bill Text: CA SB336 | 2023-2024 | Regular Session | Introduced

California Senate Bill 336

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: State grant programs: negotiated indirect cost rates.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2023-09-11 - Ordered to inactive file on request of Assembly Member Stephanie Nguyen. [SB336 Detail]

Download: California-2023-SB336-Introduced.html

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 336

Introduced by Senator Umberg

February 07, 2023

An act to add Chapter 17.5 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, relating to state grants.

LEGISLATIVE COUNSEL'S DIGEST

SB 336, as introduced, Umberg. State grant programs: negotiated cost rate agreements.

Existing law establishes the Department of General Services in the Government Operations Agency for purposes of providing centralized services of state government. Existing law establishes various state grant programs. Existing federal law provides uniform administrative requirements, cost principles, and audit requirements for federal grant awards to nonfederal entities and provides guidelines for determining direct and indirect costs, as defined, charged to federal awards.

This bill would require, to the extent authorized by state and federal law, the Department of General Services to establish, by July 1, 2024, a process by which nonprofits may negotiate a state standard negotiated cost agreement, as defined, for state grants that are awarded on or after October 1, 2024. The bill would require, to the extent authorized by state and federal law, a state agency or other state entity administering a state grant program to use the same terms as contained in the grantee’s existing negotiated indirect cost rate agreements, as defined, and cost allocation policies approved by the federal government, the same terms as contained in the grantee’s state standard negotiated cost agreement, or a 10% de minimis indirect cost rate on direct costs, for reimbursement of direct and indirect costs, as provided.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

It is the intent of the Legislature in enacting this act to ensure that nonprofit organizations are fairly compensated by the state for the full cost of providing services funded by grants. For grant programs using state funds, the Legislature finds and declares that California state agencies should allow for reimbursement of administrative expenses for nonprofit organizations that are consistent with each nonprofit organization’s federally approved negotiated indirect cost rate agreement and cost allocation policy.

SEC. 2.

Chapter 17.5 (commencing with Section 8900) is added to Division 1 of Title 2 of the Government Code, to read:

CHAPTER 17.5. Uniform Cost Agreement for State Grants

8900.

(a) For purposes of this section, the following definitions apply:

(1) “Negotiated indirect cost rate agreement” means an agreement pursuant to Section 200.414 of Title 2 of the Code of Federal Regulations.

(2) “State standard negotiated cost agreement” means an agreement that reflects an indirect cost rate negotiated between the Department of General Services and a nonprofit grant awardee, which is used to calculate an awardee’s compensation by state agencies for indirect costs.

(b) To the extent authorized by state and federal law, a state agency or other state entity administering a state grant program shall use, for grants awarded to a nonprofit grantee on or after October 1, 2024, one of the following methods, as selected by the nonprofit grantee, for reimbursement of direct and indirect costs:

(1) The same terms as contained in the grantee’s existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government.

(2) The same terms as contained in the grantee’s state standard negotiated cost agreement, as created pursuant to subdivision (c).

(3) A 10 percent de minimis indirect cost rate on direct costs.

(c) To the extent authorized by state and federal law, the Department of General Services shall establish, by July 1, 2024, a process by which nonprofits may negotiate a state standard negotiated cost agreement for state grants that are awarded on or after October 1, 2024.

(d) For purposes of this section, the term “state grant program” does not include federally sourced or derived funding, state funds used as a match for federal funding, and forms of subsidy other than a grant. This section shall not be construed to limit a state agency or other state entity administering a financial assistance program other than a state grant program from using the terms of a recipient’s existing negotiated indirect cost rate agreement and cost allocation policies approved by the federal government or a state standard negotiated cost agreement, as created pursuant to subdivision (c), to the extent authorized under state and federal law.