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AB-833 State government: grants: administrative costs.(2021-2022)

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Date Published: 02/17/2021 09:00 PM


Assembly Bill
No. 833

Introduced by Assembly Member Quirk-Silva

February 17, 2021

An act to add Section 13332.20 to the Government Code, relating to state government.


AB 833, as introduced, Quirk-Silva. State government: grants: administrative costs.
Existing law regulates the appropriation of state funds and imposes various requirements on the Controller with respect to the transfer of state funds. Existing law also sets various maximum allowable administrative costs for particular grant programs.
This bill would require any state grants to a local government to include a maximum allocation of funds that may be expended for administrative costs, as defined, and would prohibit a local government, as defined, from expending more than 5% of grant funds for administrative costs, except as provided. The bill would specify that it is not intended to affect federal funding.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


 Section 13332.20 is added to the Government Code, to read:

 (a) Any grant provided by the state to a local government shall include a maximum allocation of funds that may be expended for administrative costs.
(b) Except as otherwise provided in statute particular to a state grant or state funded grant program, no more than 5 percent of state grant funds provided to a local government may be used for administrative costs related to the execution of eligible activities under the grant.
(c) For purposes of this section, “administrative costs” means the expenses of doing business that are not readily identified with a particular grant, contract, project function or activity, but are necessary for the general operation of the local government. “Administrative costs” include overhead and planning activities and do not include staff costs directly related to carrying out the eligible grant activities.
(d) For the purposes of this section, “local government” means any county, city, city and county, including a charter city or county, any special district, school district, or any other local or regional governmental entity.
(e) This section is not intended to affect federal funding including federal grants available to local governments.