Existing law authorizes specified state departments and authorities, as well as counties, upon determination that an advance payment is essential for the effective implementation of a program, to advance to a community-based private nonprofit agency with which it has contracted for the delivery of services funds not exceeding 25% of the annual allocation to be made to the agency during the fiscal year.

Existing law also establishes a pilot program, which is repealed on July 1, 2025, to explore possible improvements to the state’s existing advance payment practices for state-funded assistance grants. Existing law authorizes an administering state agency of a grant program to advance a payment to a recipient entity, which means a local agency or a nongovernmental entity that is awarded a grant by an administering state agency and with whom the administering state agency has entered into a contract pursuant to that grant, in accordance with specified procedures.

This bill would require state and county departments that offer grants to nonprofit organizations to advance a payment of 10% of the total grant amount awarded to the nonprofit organization, upon request of the nonprofit administrators. By imposing additional duties on counties, the bill would impose a state-mandated local program.