California 2021-2022 Regular Session

California Senate Bill SB1069 Compare Versions

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1-Amended IN Senate March 24, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1069Introduced by Senator UmbergFebruary 15, 2022 An act to add Chapter 17 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, to add Sections 116760.47 and 116766.5 to the Health and Safety Code, and to add Sections 189.7 and 13477.7 to the Water Code, relating to state grants. LEGISLATIVE COUNSEL'S DIGESTSB 1069, as amended, Umberg. State grant programs: negotiated cost rate agreements.Existing law establishes the State Water Resources Control Board (SWRCB), consisting of 5 members, in the California Environmental Protection Agency to exercise certain powers relating to water rights, water quality, and safe and reliable drinking water. Existing law establishes various programs authorizing the board to provide financial assistance for water quality and drinking water purposes, including, among other programs, all of the following: (1) the State Water Pollution Control Revolving Fund for loans and other financial assistance for purposes related to the federal Clean Water Act; (2) the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for specified wastewater treatment projects; (3) the Safe Drinking Water State Revolving Fund for grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards; (4) the Safe Drinking Water Small Community Emergency Grant Fund for grants for specified water projects that serve disadvantaged and severely disadvantaged communities; and (5) the Safe and Affordable Drinking Water Fund for grants, loans, contracts, or services to help water systems provide an adequate and affordable supply of safe drinking water.This bill would require SWRCB to establish and use a standard negotiated cost agreement for awarding grants or permit compensation of indirect costs, as described and to the extent possible and permitted by federal law, with moneys from those specified funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government. In expending moneys from those specified funds for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the bill would require the board, to the extent possible and permitted by federal law, to use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.Existing law establishes the Department of General Services in the Government Operations Agency for purposes of providing centralized services of state government. Existing law establishes various state grant programs.This bill would also require, to the extent possible and permitted by federal law, but except as provided, law, the Department of General Services to 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. The bill would require, to the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, to require the state agency or other state entity administering the grant to use the same terms as contained in the grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government. The bill would require a state agency or other state entity administering those programs to use, commencing on and after July 1, 2023, the same terms as contained in the grantees state standard negotiated cost agreement. The bill would require, to the extent possible and permitted by federal law, these state agencies or other state entities to 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 instead be compensated for indirect costs pursuant to specified methods.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. 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 organizations 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 Grants8900. (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 grantees 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 grantees 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, but except as provided in subdivision (c), 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.(c)Notwithstanding subdivisions (a) and (b), the requirements in Sections 116760.47 and 116766.5 of the Health and Safety Code and Sections 189.7 and 13477.7 of the Water Code shall prevail over the requirements of this section.SEC. 3.Section 116760.47 is added to the Health and Safety Code, to read:116760.47.(a)On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b)In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.SEC. 4.Section 116766.5 is added to the Health and Safety Code, to read:116766.5.(a)On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.(b)In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.SEC. 5.Section 189.7 is added to the Water Code, to read:189.7.(a)The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:(1)The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.(2)The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.(3)The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.(4)The State Water Pollution Control Revolving Fund created pursuant to Section 13477.(5)The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.(b)The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.SEC. 6.Section 13477.7 is added to the Water Code, to read:13477.7.(a)On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b)In expending moneys from the fund or the grant fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
1+CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1069Introduced by Senator UmbergFebruary 15, 2022 An act to add Chapter 17 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, to add Sections 116760.47 and 116766.5 to the Health and Safety Code, and to add Sections 189.7 and 13477.7 to the Water Code, relating to state grants. LEGISLATIVE COUNSEL'S DIGESTSB 1069, as introduced, Umberg. State grant programs: negotiated cost rate agreements.Existing law establishes the State Water Resources Control Board (SWRCB), consisting of 5 members, in the California Environmental Protection Agency to exercise certain powers relating to water rights, water quality, and safe and reliable drinking water. Existing law establishes various programs authorizing the board to provide financial assistance for water quality and drinking water purposes, including, among other programs, all of the following: (1) the State Water Pollution Control Revolving Fund for loans and other financial assistance for purposes related to the federal Clean Water Act; (2) the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for specified wastewater treatment projects; (3) the Safe Drinking Water State Revolving Fund for grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards; (4) the Safe Drinking Water Small Community Emergency Grant Fund for grants for specified water projects that serve disadvantaged and severely disadvantaged communities; and (5) the Safe and Affordable Drinking Water Fund for grants, loans, contracts, or services to help water systems provide an adequate and affordable supply of safe drinking water.This bill would require SWRCB to establish and use a standard negotiated cost agreement for awarding grants or permit compensation of indirect costs, as described and to the extent possible and permitted by federal law, with moneys from those specified funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government. In expending moneys from those specified funds for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the bill would require the board, to the extent possible and permitted by federal law, to use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.This bill would also require, to the extent possible and permitted by federal law, but except as provided, the Department of General Services to 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. The bill would require, to the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, to require the state agency or other state entity administering the grant to use the same terms as contained in the grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government. The bill would require a state agency or other state entity administering those programs to use, commencing on and after July 1, 2023, the same terms as contained in the grantees state standard negotiated cost agreement. The bill would require, to the extent possible and permitted by federal law, these state agencies or other state entities to 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 instead be compensated for indirect costs pursuant to specified methods.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. 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 organizations 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 Grants8900. (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 grantees 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 grantees 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, but except as provided in subdivision (c), 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.(c) Notwithstanding subdivisions (a) and (b), the requirements in Sections 116760.47 and 116766.5 of the Health and Safety Code and Sections 189.7 and 13477.7 of the Water Code shall prevail over the requirements of this section.SEC. 3. Section 116760.47 is added to the Health and Safety Code, to read:116760.47. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.SEC. 4. Section 116766.5 is added to the Health and Safety Code, to read:116766.5. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.(b) In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.SEC. 5. Section 189.7 is added to the Water Code, to read:189.7. (a) The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:(1) The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.(2) The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.(3) The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.(4) The State Water Pollution Control Revolving Fund created pursuant to Section 13477.(5) The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.(b) The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.SEC. 6. Section 13477.7 is added to the Water Code, to read:13477.7. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the grant fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
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3- Amended IN Senate March 24, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1069Introduced by Senator UmbergFebruary 15, 2022 An act to add Chapter 17 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, to add Sections 116760.47 and 116766.5 to the Health and Safety Code, and to add Sections 189.7 and 13477.7 to the Water Code, relating to state grants. LEGISLATIVE COUNSEL'S DIGESTSB 1069, as amended, Umberg. State grant programs: negotiated cost rate agreements.Existing law establishes the State Water Resources Control Board (SWRCB), consisting of 5 members, in the California Environmental Protection Agency to exercise certain powers relating to water rights, water quality, and safe and reliable drinking water. Existing law establishes various programs authorizing the board to provide financial assistance for water quality and drinking water purposes, including, among other programs, all of the following: (1) the State Water Pollution Control Revolving Fund for loans and other financial assistance for purposes related to the federal Clean Water Act; (2) the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for specified wastewater treatment projects; (3) the Safe Drinking Water State Revolving Fund for grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards; (4) the Safe Drinking Water Small Community Emergency Grant Fund for grants for specified water projects that serve disadvantaged and severely disadvantaged communities; and (5) the Safe and Affordable Drinking Water Fund for grants, loans, contracts, or services to help water systems provide an adequate and affordable supply of safe drinking water.This bill would require SWRCB to establish and use a standard negotiated cost agreement for awarding grants or permit compensation of indirect costs, as described and to the extent possible and permitted by federal law, with moneys from those specified funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government. In expending moneys from those specified funds for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the bill would require the board, to the extent possible and permitted by federal law, to use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.Existing law establishes the Department of General Services in the Government Operations Agency for purposes of providing centralized services of state government. Existing law establishes various state grant programs.This bill would also require, to the extent possible and permitted by federal law, but except as provided, law, the Department of General Services to 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. The bill would require, to the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, to require the state agency or other state entity administering the grant to use the same terms as contained in the grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government. The bill would require a state agency or other state entity administering those programs to use, commencing on and after July 1, 2023, the same terms as contained in the grantees state standard negotiated cost agreement. The bill would require, to the extent possible and permitted by federal law, these state agencies or other state entities to 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 instead be compensated for indirect costs pursuant to specified methods.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
3+ CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 1069Introduced by Senator UmbergFebruary 15, 2022 An act to add Chapter 17 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, to add Sections 116760.47 and 116766.5 to the Health and Safety Code, and to add Sections 189.7 and 13477.7 to the Water Code, relating to state grants. LEGISLATIVE COUNSEL'S DIGESTSB 1069, as introduced, Umberg. State grant programs: negotiated cost rate agreements.Existing law establishes the State Water Resources Control Board (SWRCB), consisting of 5 members, in the California Environmental Protection Agency to exercise certain powers relating to water rights, water quality, and safe and reliable drinking water. Existing law establishes various programs authorizing the board to provide financial assistance for water quality and drinking water purposes, including, among other programs, all of the following: (1) the State Water Pollution Control Revolving Fund for loans and other financial assistance for purposes related to the federal Clean Water Act; (2) the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for specified wastewater treatment projects; (3) the Safe Drinking Water State Revolving Fund for grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards; (4) the Safe Drinking Water Small Community Emergency Grant Fund for grants for specified water projects that serve disadvantaged and severely disadvantaged communities; and (5) the Safe and Affordable Drinking Water Fund for grants, loans, contracts, or services to help water systems provide an adequate and affordable supply of safe drinking water.This bill would require SWRCB to establish and use a standard negotiated cost agreement for awarding grants or permit compensation of indirect costs, as described and to the extent possible and permitted by federal law, with moneys from those specified funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government. In expending moneys from those specified funds for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the bill would require the board, to the extent possible and permitted by federal law, to use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.This bill would also require, to the extent possible and permitted by federal law, but except as provided, the Department of General Services to 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. The bill would require, to the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, to require the state agency or other state entity administering the grant to use the same terms as contained in the grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government. The bill would require a state agency or other state entity administering those programs to use, commencing on and after July 1, 2023, the same terms as contained in the grantees state standard negotiated cost agreement. The bill would require, to the extent possible and permitted by federal law, these state agencies or other state entities to 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 instead be compensated for indirect costs pursuant to specified methods.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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2020 An act to add Chapter 17 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, to add Sections 116760.47 and 116766.5 to the Health and Safety Code, and to add Sections 189.7 and 13477.7 to the Water Code, relating to state grants.
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26-SB 1069, as amended, Umberg. State grant programs: negotiated cost rate agreements.
26+SB 1069, as introduced, Umberg. State grant programs: negotiated cost rate agreements.
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28-Existing law establishes the State Water Resources Control Board (SWRCB), consisting of 5 members, in the California Environmental Protection Agency to exercise certain powers relating to water rights, water quality, and safe and reliable drinking water. Existing law establishes various programs authorizing the board to provide financial assistance for water quality and drinking water purposes, including, among other programs, all of the following: (1) the State Water Pollution Control Revolving Fund for loans and other financial assistance for purposes related to the federal Clean Water Act; (2) the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for specified wastewater treatment projects; (3) the Safe Drinking Water State Revolving Fund for grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards; (4) the Safe Drinking Water Small Community Emergency Grant Fund for grants for specified water projects that serve disadvantaged and severely disadvantaged communities; and (5) the Safe and Affordable Drinking Water Fund for grants, loans, contracts, or services to help water systems provide an adequate and affordable supply of safe drinking water.This bill would require SWRCB to establish and use a standard negotiated cost agreement for awarding grants or permit compensation of indirect costs, as described and to the extent possible and permitted by federal law, with moneys from those specified funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government. In expending moneys from those specified funds for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the bill would require the board, to the extent possible and permitted by federal law, to use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.Existing law establishes the Department of General Services in the Government Operations Agency for purposes of providing centralized services of state government. Existing law establishes various state grant programs.This bill would also require, to the extent possible and permitted by federal law, but except as provided, law, the Department of General Services to 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. The bill would require, to the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, to require the state agency or other state entity administering the grant to use the same terms as contained in the grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government. The bill would require a state agency or other state entity administering those programs to use, commencing on and after July 1, 2023, the same terms as contained in the grantees state standard negotiated cost agreement. The bill would require, to the extent possible and permitted by federal law, these state agencies or other state entities to 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 instead be compensated for indirect costs pursuant to specified methods.
28+Existing law establishes the State Water Resources Control Board (SWRCB), consisting of 5 members, in the California Environmental Protection Agency to exercise certain powers relating to water rights, water quality, and safe and reliable drinking water. Existing law establishes various programs authorizing the board to provide financial assistance for water quality and drinking water purposes, including, among other programs, all of the following: (1) the State Water Pollution Control Revolving Fund for loans and other financial assistance for purposes related to the federal Clean Water Act; (2) the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for specified wastewater treatment projects; (3) the Safe Drinking Water State Revolving Fund for grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards; (4) the Safe Drinking Water Small Community Emergency Grant Fund for grants for specified water projects that serve disadvantaged and severely disadvantaged communities; and (5) the Safe and Affordable Drinking Water Fund for grants, loans, contracts, or services to help water systems provide an adequate and affordable supply of safe drinking water.This bill would require SWRCB to establish and use a standard negotiated cost agreement for awarding grants or permit compensation of indirect costs, as described and to the extent possible and permitted by federal law, with moneys from those specified funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government. In expending moneys from those specified funds for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the bill would require the board, to the extent possible and permitted by federal law, to use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.This bill would also require, to the extent possible and permitted by federal law, but except as provided, the Department of General Services to 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. The bill would require, to the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, to require the state agency or other state entity administering the grant to use the same terms as contained in the grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government. The bill would require a state agency or other state entity administering those programs to use, commencing on and after July 1, 2023, the same terms as contained in the grantees state standard negotiated cost agreement. The bill would require, to the extent possible and permitted by federal law, these state agencies or other state entities to 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 instead be compensated for indirect costs pursuant to specified methods.
2929
3030 Existing law establishes the State Water Resources Control Board (SWRCB), consisting of 5 members, in the California Environmental Protection Agency to exercise certain powers relating to water rights, water quality, and safe and reliable drinking water. Existing law establishes various programs authorizing the board to provide financial assistance for water quality and drinking water purposes, including, among other programs, all of the following: (1) the State Water Pollution Control Revolving Fund for loans and other financial assistance for purposes related to the federal Clean Water Act; (2) the State Water Pollution Control Revolving Fund Small Community Grant Fund for grants for specified wastewater treatment projects; (3) the Safe Drinking Water State Revolving Fund for grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards; (4) the Safe Drinking Water Small Community Emergency Grant Fund for grants for specified water projects that serve disadvantaged and severely disadvantaged communities; and (5) the Safe and Affordable Drinking Water Fund for grants, loans, contracts, or services to help water systems provide an adequate and affordable supply of safe drinking water.
3131
32-
33-
3432 This bill would require SWRCB to establish and use a standard negotiated cost agreement for awarding grants or permit compensation of indirect costs, as described and to the extent possible and permitted by federal law, with moneys from those specified funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government. In expending moneys from those specified funds for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the bill would require the board, to the extent possible and permitted by federal law, to use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
3533
36-
37-
38-Existing law establishes the Department of General Services in the Government Operations Agency for purposes of providing centralized services of state government. Existing law establishes various state grant programs.
39-
40-This bill would also require, to the extent possible and permitted by federal law, but except as provided, law, the Department of General Services to 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. The bill would require, to the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, to require the state agency or other state entity administering the grant to use the same terms as contained in the grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government. The bill would require a state agency or other state entity administering those programs to use, commencing on and after July 1, 2023, the same terms as contained in the grantees state standard negotiated cost agreement. The bill would require, to the extent possible and permitted by federal law, these state agencies or other state entities to 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 instead be compensated for indirect costs pursuant to specified methods.
34+This bill would also require, to the extent possible and permitted by federal law, but except as provided, the Department of General Services to 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. The bill would require, to the extent possible and permitted by federal law, any state grant program that is created on or after January 1, 2023, to require the state agency or other state entity administering the grant to use the same terms as contained in the grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government. The bill would require a state agency or other state entity administering those programs to use, commencing on and after July 1, 2023, the same terms as contained in the grantees state standard negotiated cost agreement. The bill would require, to the extent possible and permitted by federal law, these state agencies or other state entities to 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 instead be compensated for indirect costs pursuant to specified methods.
4135
4236 ## Digest Key
4337
4438 ## Bill Text
4539
4640 The people of the State of California do enact as follows: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 organizations 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 Grants8900. (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 grantees 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 grantees 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, but except as provided in subdivision (c), 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.(c) Notwithstanding subdivisions (a) and (b), the requirements in Sections 116760.47 and 116766.5 of the Health and Safety Code and Sections 189.7 and 13477.7 of the Water Code shall prevail over the requirements of this section.SEC. 3. Section 116760.47 is added to the Health and Safety Code, to read:116760.47. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.SEC. 4. Section 116766.5 is added to the Health and Safety Code, to read:116766.5. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.(b) In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.SEC. 5. Section 189.7 is added to the Water Code, to read:189.7. (a) The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:(1) The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.(2) The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.(3) The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.(4) The State Water Pollution Control Revolving Fund created pursuant to Section 13477.(5) The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.(b) The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.SEC. 6. Section 13477.7 is added to the Water Code, to read:13477.7. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the grant fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
4741
4842 The people of the State of California do enact as follows:
4943
5044 ## The people of the State of California do enact as follows:
5145
5246 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 organizations federally approved negotiated indirect cost rate agreement and cost allocation policy.
5347
5448 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 organizations federally approved negotiated indirect cost rate agreement and cost allocation policy.
5549
5650 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 organizations federally approved negotiated indirect cost rate agreement and cost allocation policy.
5751
5852 ### SECTION 1.
5953
6054 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 Grants8900. (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 grantees 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 grantees 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, but except as provided in subdivision (c), 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.(c) Notwithstanding subdivisions (a) and (b), the requirements in Sections 116760.47 and 116766.5 of the Health and Safety Code and Sections 189.7 and 13477.7 of the Water Code shall prevail over the requirements of this section.
6155
6256 SEC. 2. Chapter 17 (commencing with Section 8900) is added to Division 1 of Title 2 of the Government Code, to read:
6357
6458 ### SEC. 2.
6559
6660 CHAPTER 17. Uniform Cost Agreement for State Grants8900. (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 grantees 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 grantees 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, but except as provided in subdivision (c), 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.(c) Notwithstanding subdivisions (a) and (b), the requirements in Sections 116760.47 and 116766.5 of the Health and Safety Code and Sections 189.7 and 13477.7 of the Water Code shall prevail over the requirements of this section.
6761
6862 CHAPTER 17. Uniform Cost Agreement for State Grants8900. (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 grantees 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 grantees 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, but except as provided in subdivision (c), 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.(c) Notwithstanding subdivisions (a) and (b), the requirements in Sections 116760.47 and 116766.5 of the Health and Safety Code and Sections 189.7 and 13477.7 of the Water Code shall prevail over the requirements of this section.
6963
7064 CHAPTER 17. Uniform Cost Agreement for State Grants
7165
7266 CHAPTER 17. Uniform Cost Agreement for State Grants
7367
7468 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 grantees 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 grantees 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, but except as provided in subdivision (c), 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.(c) Notwithstanding subdivisions (a) and (b), the requirements in Sections 116760.47 and 116766.5 of the Health and Safety Code and Sections 189.7 and 13477.7 of the Water Code shall prevail over the requirements of this section.
7569
7670
7771
7872 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 grantees existing negotiated indirect cost rate agreements and cost allocation policies approved by the federal government.
7973
8074 (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 grantees 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.
8175
8276 (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:
8377
8478 (i) By using a de minimis rate of 10 percent of all direct costs under the grant or contract.
8579
8680 (ii) By negotiating a new percentage for the indirect cost rate with the awarding agency.
8781
8882 (iii) By using the same percentage for the indirect cost rate as the grantee negotiated with the agency within the past two years.
8983
9084 (B) This paragraph shall not preclude a grantee described in subparagraph (A) from renegotiating indirect cost rates with the state agency.
9185
9286 (b) To the extent possible and permitted by federal law, but except as provided in subdivision (c), 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.
9387
9488 (c) Notwithstanding subdivisions (a) and (b), the requirements in Sections 116760.47 and 116766.5 of the Health and Safety Code and Sections 189.7 and 13477.7 of the Water Code shall prevail over the requirements of this section.
9589
90+SEC. 3. Section 116760.47 is added to the Health and Safety Code, to read:116760.47. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
91+
92+SEC. 3. Section 116760.47 is added to the Health and Safety Code, to read:
93+
94+### SEC. 3.
95+
96+116760.47. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
97+
98+116760.47. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
99+
100+116760.47. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
96101
97102
98103
104+116760.47. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.
105+
106+(b) In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
107+
108+SEC. 4. Section 116766.5 is added to the Health and Safety Code, to read:116766.5. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.(b) In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
109+
110+SEC. 4. Section 116766.5 is added to the Health and Safety Code, to read:
111+
112+### SEC. 4.
113+
114+116766.5. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.(b) In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
115+
116+116766.5. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.(b) In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
117+
118+116766.5. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.(b) In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
99119
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102-(a)On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.
122+116766.5. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.
123+
124+(b) In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
125+
126+SEC. 5. Section 189.7 is added to the Water Code, to read:189.7. (a) The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:(1) The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.(2) The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.(3) The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.(4) The State Water Pollution Control Revolving Fund created pursuant to Section 13477.(5) The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.(b) The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.
127+
128+SEC. 5. Section 189.7 is added to the Water Code, to read:
129+
130+### SEC. 5.
131+
132+189.7. (a) The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:(1) The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.(2) The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.(3) The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.(4) The State Water Pollution Control Revolving Fund created pursuant to Section 13477.(5) The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.(b) The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.
133+
134+189.7. (a) The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:(1) The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.(2) The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.(3) The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.(4) The State Water Pollution Control Revolving Fund created pursuant to Section 13477.(5) The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.(b) The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.
135+
136+189.7. (a) The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:(1) The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.(2) The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.(3) The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.(4) The State Water Pollution Control Revolving Fund created pursuant to Section 13477.(5) The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.(b) The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.
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104138
105139
106-(b)In expending moneys from the fund or the Safe Drinking Water Small Community Emergency Grant Fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
140+189.7. (a) The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:
141+
142+(1) The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.
143+
144+(2) The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.
145+
146+(3) The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.
147+
148+(4) The State Water Pollution Control Revolving Fund created pursuant to Section 13477.
149+
150+(5) The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.
151+
152+(b) The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.
153+
154+SEC. 6. Section 13477.7 is added to the Water Code, to read:13477.7. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the grant fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
155+
156+SEC. 6. Section 13477.7 is added to the Water Code, to read:
157+
158+### SEC. 6.
159+
160+13477.7. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the grant fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
161+
162+13477.7. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the grant fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
163+
164+13477.7. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.(b) In expending moneys from the fund or the grant fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
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109167
110-
111-
112-
113-
114-(a)On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7 of the Water Code, the board shall, in expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible.
115-
116-
117-
118-(b)In expending moneys from the fund pursuant to subdivision (b) of Section 116766 for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.
119-
120-
121-
122-
123-
124-
125-
126-(a)The board shall establish, by July 1, 2023, a standard negotiated cost agreement for awarding grants, to the extent possible and permitted by federal law, with moneys from the following funds to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government:
127-
128-
129-
130-(1)The Safe Drinking Water State Revolving Fund created pursuant to Section 116760.30 of the Health and Safety Code.
131-
132-
133-
134-(2)The Safe Drinking Water Small Community Emergency Grant Fund created pursuant to Section 116760.46 of the Health and Safety Code.
135-
136-
137-
138-(3)The Safe and Affordable Drinking Water Fund created pursuant to Section 116766 of the Health and Safety Code.
139-
140-
141-
142-(4)The State Water Pollution Control Revolving Fund created pursuant to Section 13477.
143-
144-
145-
146-(5)The State Water Pollution Control Revolving Fund Small Community Grant Fund created pursuant to Section 13477.6.
147-
148-
149-
150-(b)The board may review and amend the standard negotiated cost agreement on a three- or five-year basis to minimize transaction costs.
151-
152-
153-
154-
155-
156-
157-
158-(a)On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.
159-
160-
168+13477.7. (a) On and after the date the board establishes a standard negotiated cost agreement pursuant to Section 189.7, the board shall, in expending moneys from the fund or the grant fund for grants to nonprofit organizations that do not have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, use that standard negotiated cost agreement or permit compensation of indirect costs pursuant to paragraph (3) of subdivision (a) of Section 8900 of the Government Code to the extent possible and permitted by federal law.
161169
162170 (b) In expending moneys from the fund or the grant fund for grants to nonprofit organizations that have an existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government, the board shall, to the extent possible and permitted by federal law, use the same terms as contained in the nonprofit organizations existing negotiated indirect cost rate agreement and cost allocation policy approved by the federal government.