CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 833Introduced by Assembly Member Quirk-SilvaFebruary 17, 2021 An act to add Section 13332.20 to the Government Code, relating to state government. LEGISLATIVE COUNSEL'S DIGESTAB 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 13332.20 is added to the Government Code, to read:13332.20. (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. CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 833Introduced by Assembly Member Quirk-SilvaFebruary 17, 2021 An act to add Section 13332.20 to the Government Code, relating to state government. LEGISLATIVE COUNSEL'S DIGESTAB 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 833 Introduced by Assembly Member Quirk-SilvaFebruary 17, 2021 Introduced by Assembly Member Quirk-Silva February 17, 2021 An act to add Section 13332.20 to the Government Code, relating to state government. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST 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. 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. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 13332.20 is added to the Government Code, to read:13332.20. (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. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 13332.20 is added to the Government Code, to read:13332.20. (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. SECTION 1. Section 13332.20 is added to the Government Code, to read: ### SECTION 1. 13332.20. (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. 13332.20. (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. 13332.20. (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. 13332.20. (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.