Today's Law As Amended


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SB-1069 State grant programs: negotiated cost rate agreements.(2021-2022)



As Amends the Law Today


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

CHAPTER  17. Uniform Cost Agreement for State Grants
8900.
 (a) (1) To the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, shall require the state agency or other state entity administering the grant to use 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) To the extent possible and permitted by federal law, the state agency or other state entity administering the state grant program described in paragraph (1) shall use, commencing on and after July 1, 2023, the same terms as contained in the grantee’s state standard negotiated cost agreement, as created pursuant to subdivision (b), for grantees that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
(3) (A) Notwithstanding paragraphs (1) and (2), to the extent possible and permitted by federal law, the state agency or other state entity administering the state grant program described in paragraph (1) shall authorize a grantee that is a nonprofit organization and that does not have an existing federal negotiated indirect cost rate agreement or existing state standard negotiated cost agreement to be compensated for indirect costs pursuant to one of the following methods:
(i) By using a de minimis rate of 10 percent of all direct costs under the grant or contract.
(ii) By negotiating a new percentage for the indirect cost rate with the awarding agency.
(iii) By using the same percentage for the indirect cost rate as the grantee negotiated with the agency within the past two years.
(B) This paragraph shall not preclude a grantee described in subparagraph (A) from renegotiating indirect cost rates with the state agency.
(b) To the extent possible and permitted by federal law, the Department of General Services shall establish, by July 1, 2023, a state standard negotiated cost agreement for awarding state grants that are created on or after July 1, 2023, to grantees that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.