Today's Law As Amended

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SB-784 State government: emergency services: nonprofit service providers.(2021-2022)

As Amends the Law Today


 Section 8596.1 is added to the Government Code, to read:

 (a) During a state of war emergency or a state of emergency, a nonprofit entity that provides services pursuant to a contract with the state is authorized to adjust the method in which it provides those services so long as the purpose of the contract is served.
(b) The nonprofit entity shall notify all departments from which it receives funding of a closure or of an impacted program, including whether a closure is location specific or due to executive order, and why the service level may be impacted.
(c) (1) The nonprofit entity shall identify and thoroughly document all expenditures associated with the closed program. The nonprofit entity shall retain documentation to justify expenses and to support claiming continued state funding.
(A) Fixed and regular costs that continue to be incurred shall be paid normally.
(B) Hourly employees, including those who would not otherwise be paid when a program is not operating, should be paid the anticipated wage during the closure.
(C) If there are any expenses that will not be incurred due to a program closure, they should be identified and excluded from invoicing. If the costs occurred prior to the closure, they should be paid by the contracting department.
(2)  While these expenditures may be billed using a regular monthly invoice template, the expenses related to a closure should be able to be isolated and documentation of them available upon request.
(A) A nonprofit entity with a cost reimbursement contract shall invoice for the month, but should be flexible and responsive to departmental requests for additional documentation about expenditures during closure, which may include documentation of specific services that were expected but unable to be delivered, and costs associated with those services.
(B) A nonprofit entity with a fee-for-service contract should invoice for the month by calculating 1/12th of the contracted units of service, and should be prepared to offer documentation of specific services that were expected but unable to be delivered.
(d) Departments that receive notification from a nonprofit entity pursuant to subdivision (b) shall ensure that funding is available to pay for canceled services, closed programs, or reduced service levels.
(e) This section shall apply to a contract only until the contracting agency determines what substitute performance in furtherance of the purpose of the contract is permissible.
(f) This section shall not apply to a contract that is otherwise void or voidable on the basis of force majeure or frustration of purpose.