California 2023 2023-2024 Regular Session

California Assembly Bill AB2781 Amended / Bill

Filed 03/21/2024

                    Amended IN  Assembly  March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2781Introduced by Assembly Member IrwinFebruary 15, 2024An act to add Section 6616 to the Public Contract Code, relating to state grants. LEGISLATIVE COUNSEL'S DIGESTAB 2781, as amended, Irwin. State grants. Public contracting: state grants: prohibition.Existing law governs the bidding and awarding of public contracts by public entities, as defined, and imposes additional requirements on state agencies when awarding contracts.This bill would require a state agency, as defined, to include, when awarding a contract for grant administration services, as defined, in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the 5 years prior to the grant award.Existing law sets forth various state grant programs, such as the California Competes Grant Program, and sets forth eligibility requirements for applicants.This bill would state the intent of the Legislature to enact legislation that would prevent state agencies from contracting, for the purpose of distributing grants, to an organization that is composed of members that would receive the grants.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 6616 is added to the Public Contract Code, to read:6616. (a) Notwithstanding any law, a state agency, as defined in Section 10335.7, that is subject to this code, when awarding a contract for grant administration services, shall include in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the five years prior to the grant award.(b) For purposes of this section, the following definitions apply:(1) Financially contributed means contributed to the contractor in the form of monetary payments.(2) Grant administration services means services to administer state moneys in the form of a grant.SECTION 1.It is the intent of the Legislature to enact legislation that would prevent state agencies from contracting, for the purpose of distributing grants, to an organization that is composed of members that would receive the grants.

 Amended IN  Assembly  March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2781Introduced by Assembly Member IrwinFebruary 15, 2024An act to add Section 6616 to the Public Contract Code, relating to state grants. LEGISLATIVE COUNSEL'S DIGESTAB 2781, as amended, Irwin. State grants. Public contracting: state grants: prohibition.Existing law governs the bidding and awarding of public contracts by public entities, as defined, and imposes additional requirements on state agencies when awarding contracts.This bill would require a state agency, as defined, to include, when awarding a contract for grant administration services, as defined, in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the 5 years prior to the grant award.Existing law sets forth various state grant programs, such as the California Competes Grant Program, and sets forth eligibility requirements for applicants.This bill would state the intent of the Legislature to enact legislation that would prevent state agencies from contracting, for the purpose of distributing grants, to an organization that is composed of members that would receive the grants.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Assembly  March 21, 2024

Amended IN  Assembly  March 21, 2024

 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION

 Assembly Bill 

No. 2781

Introduced by Assembly Member IrwinFebruary 15, 2024

Introduced by Assembly Member Irwin
February 15, 2024

An act to add Section 6616 to the Public Contract Code, relating to state grants. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 2781, as amended, Irwin. State grants. Public contracting: state grants: prohibition.

Existing law governs the bidding and awarding of public contracts by public entities, as defined, and imposes additional requirements on state agencies when awarding contracts.This bill would require a state agency, as defined, to include, when awarding a contract for grant administration services, as defined, in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the 5 years prior to the grant award.Existing law sets forth various state grant programs, such as the California Competes Grant Program, and sets forth eligibility requirements for applicants.This bill would state the intent of the Legislature to enact legislation that would prevent state agencies from contracting, for the purpose of distributing grants, to an organization that is composed of members that would receive the grants.

Existing law governs the bidding and awarding of public contracts by public entities, as defined, and imposes additional requirements on state agencies when awarding contracts.

This bill would require a state agency, as defined, to include, when awarding a contract for grant administration services, as defined, in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the 5 years prior to the grant award.

Existing law sets forth various state grant programs, such as the California Competes Grant Program, and sets forth eligibility requirements for applicants.



This bill would state the intent of the Legislature to enact legislation that would prevent state agencies from contracting, for the purpose of distributing grants, to an organization that is composed of members that would receive the grants.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 6616 is added to the Public Contract Code, to read:6616. (a) Notwithstanding any law, a state agency, as defined in Section 10335.7, that is subject to this code, when awarding a contract for grant administration services, shall include in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the five years prior to the grant award.(b) For purposes of this section, the following definitions apply:(1) Financially contributed means contributed to the contractor in the form of monetary payments.(2) Grant administration services means services to administer state moneys in the form of a grant.SECTION 1.It is the intent of the Legislature to enact legislation that would prevent state agencies from contracting, for the purpose of distributing grants, to an organization that is composed of members that would receive the grants.

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

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

SECTION 1. Section 6616 is added to the Public Contract Code, to read:6616. (a) Notwithstanding any law, a state agency, as defined in Section 10335.7, that is subject to this code, when awarding a contract for grant administration services, shall include in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the five years prior to the grant award.(b) For purposes of this section, the following definitions apply:(1) Financially contributed means contributed to the contractor in the form of monetary payments.(2) Grant administration services means services to administer state moneys in the form of a grant.

SECTION 1. Section 6616 is added to the Public Contract Code, to read:

### SECTION 1.

6616. (a) Notwithstanding any law, a state agency, as defined in Section 10335.7, that is subject to this code, when awarding a contract for grant administration services, shall include in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the five years prior to the grant award.(b) For purposes of this section, the following definitions apply:(1) Financially contributed means contributed to the contractor in the form of monetary payments.(2) Grant administration services means services to administer state moneys in the form of a grant.

6616. (a) Notwithstanding any law, a state agency, as defined in Section 10335.7, that is subject to this code, when awarding a contract for grant administration services, shall include in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the five years prior to the grant award.(b) For purposes of this section, the following definitions apply:(1) Financially contributed means contributed to the contractor in the form of monetary payments.(2) Grant administration services means services to administer state moneys in the form of a grant.

6616. (a) Notwithstanding any law, a state agency, as defined in Section 10335.7, that is subject to this code, when awarding a contract for grant administration services, shall include in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the five years prior to the grant award.(b) For purposes of this section, the following definitions apply:(1) Financially contributed means contributed to the contractor in the form of monetary payments.(2) Grant administration services means services to administer state moneys in the form of a grant.



6616. (a) Notwithstanding any law, a state agency, as defined in Section 10335.7, that is subject to this code, when awarding a contract for grant administration services, shall include in the terms of the contract a provision that prohibits the contractor from awarding the grant to any party that has financially contributed to the contractor within the five years prior to the grant award.

(b) For purposes of this section, the following definitions apply:

(1) Financially contributed means contributed to the contractor in the form of monetary payments.

(2) Grant administration services means services to administer state moneys in the form of a grant.



It is the intent of the Legislature to enact legislation that would prevent state agencies from contracting, for the purpose of distributing grants, to an organization that is composed of members that would receive the grants.