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SB-336 State grant programs: negotiated indirect cost rates.(2023-2024)

Senate
Assembly
1st
Cmt
2nd
3rd
Pass
1st
Cmt
2nd
Cmt
2nd
3rd
Pass
3rd
Pass
Pass
Veto
Senate
Assembly
1st
Cmt
2nd
3rd
Pass
1st
Cmt
2nd
Cmt
2nd
3rd
Pass
3rd
Pass
Pass
Veto

Bill Status
SB-336
Umberg (S)
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State grant programs: negotiated indirect cost rates.
03/10/23
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.
Senate
09/04/24
08/22/24

Type of Measure
Active Bill - In Floor Process
Majority Vote Required
Non-Appropriation
Fiscal Committee
Non-State-Mandated Local Program
Non-Urgency
Non-Tax levy
Last 5 History Actions
Date Action
09/29/24 In Senate. Consideration of Governor's veto pending.
09/29/24 Vetoed by the Governor.
09/10/24 Enrolled and presented to the Governor at 4 p.m.
08/30/24 Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5727.) Ordered to engrossing and enrolling.
08/30/24 In Senate. Concurrence in Assembly amendments pending.
Governor's Message
To the Members of the California State Senate:

I am returning Senate Bill 336 without my signature.

This bill requires a state agency administering a grant program to reimburse grantees for indirect costs related to the grant program at one of four rate structures, as requested by the grantee in its state grant application.

Nonprofits provide valuable resources and services, often to our most underserved communities, which is why I signed AB 590 last year to authorize advance payments to nonprofit organizations. While funding agencies understand the need to cover indirect costs, this bill could have unintended consequences by allocating a significant amount of grant funding toward indirect costs, rather than project implementation, which would create cost pressures to balance services to Californians. I encourage the Legislature to continue working on this issue to find a balance between funding indirect costs and project implementation.

For these reasons, I cannot sign this bill.

Sincerely,



Gavin Newsom