Enrolled September 04, 2024 Passed IN Senate August 30, 2024 Passed IN Assembly August 29, 2024 Amended IN Assembly August 22, 2024 Amended IN Assembly September 01, 2023 Amended IN Assembly July 06, 2023 Amended IN Assembly June 30, 2023 Amended IN Assembly June 26, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 336Introduced by Senator UmbergFebruary 07, 2023An act to add Chapter 17.5 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, relating to state grants. LEGISLATIVE COUNSEL'S DIGESTSB 336, Umberg. State grant programs: negotiated indirect cost rates.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. Existing federal law provides uniform administrative requirements, cost principles, and audit requirements for federal grant awards to nonfederal entities and provides guidelines for determining direct and indirect costs, as defined, charged to federal awards.This bill would require, unless prohibited by any other state or federal law, a state agency administering a grant program to reimburse, when awarding a grant, the grantees indirect costs, as defined, at one of specified rates as requested by the grantee, as defined, if the grantee disclosed the requested rate amount in their grant program application. The bill would require distribution of indirect cost pools, as specified, if established. The bill would also authorize, unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency to opt, when applying for the grant, to be reimbursed for its indirect costs at one of specified rates, if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application. The bill would make these provisions applicable to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.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 and other eligible entities 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 and other eligible entities that are consistent with each organizations federally approved negotiated indirect cost rate agreement and cost allocation policy.SEC. 2. Chapter 17.5 (commencing with Section 8900) is added to Division 1 of Title 2 of the Government Code, to read: CHAPTER 17.5. Uniform Cost Agreement for State Grants8900. (a) For purposes of this section, the following definitions apply:(1) Grantee means an applicant for a grant program that is administered by a state agency that is selected by the state agency to be awarded a grant under that program.(2) Existing state rate means a rate utilized by the grantee with a state agency within the last five years.(3) Indirect costs means those costs incurred for a common or joint purpose benefiting more than one objective, and not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved.(4) Negotiated indirect cost rate agreement means an agreement pursuant to Part 200 of Title 2 of the Code of Federal Regulations that is approved by the federal government.(b) Unless prohibited by any other state or federal law, a state agency administering a grant program shall, when awarding a grant, reimburse the grantees indirect costs at one of the following rates, as requested by the grantee, if the grantee disclosed the requested rate amount in their grant program application:(1) The grantees negotiated indirect cost rate, pursuant to its negotiated indirect cost rate agreement.(2) The de minimis indirect cost rate specified in Part 200 of Title 2 of the Code of Federal Regulations.(3) Either of the following:(A) An existing state rate.(B) If the grantee does not have an existing state rate, a rate proposed by the grantee in the grantees program application with the administering state agency.(c) Unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency may opt, when applying for the grant, to be reimbursed for its indirect costs at one of the rates described in subdivision (b), if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application.(d) For purposes of calculating indirect costs and to facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Any indirect cost pools established shall be distributed to benefited cost objectives on bases that will produce an equitable result in consideration of relative benefits derived. (e) This section applies to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.
Enrolled September 04, 2024 Passed IN Senate August 30, 2024 Passed IN Assembly August 29, 2024 Amended IN Assembly August 22, 2024 Amended IN Assembly September 01, 2023 Amended IN Assembly July 06, 2023 Amended IN Assembly June 30, 2023 Amended IN Assembly June 26, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 336Introduced by Senator UmbergFebruary 07, 2023An act to add Chapter 17.5 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, relating to state grants. LEGISLATIVE COUNSEL'S DIGESTSB 336, Umberg. State grant programs: negotiated indirect cost rates.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. Existing federal law provides uniform administrative requirements, cost principles, and audit requirements for federal grant awards to nonfederal entities and provides guidelines for determining direct and indirect costs, as defined, charged to federal awards.This bill would require, unless prohibited by any other state or federal law, a state agency administering a grant program to reimburse, when awarding a grant, the grantees indirect costs, as defined, at one of specified rates as requested by the grantee, as defined, if the grantee disclosed the requested rate amount in their grant program application. The bill would require distribution of indirect cost pools, as specified, if established. The bill would also authorize, unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency to opt, when applying for the grant, to be reimbursed for its indirect costs at one of specified rates, if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application. The bill would make these provisions applicable to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Enrolled September 04, 2024 Passed IN Senate August 30, 2024 Passed IN Assembly August 29, 2024 Amended IN Assembly August 22, 2024 Amended IN Assembly September 01, 2023 Amended IN Assembly July 06, 2023 Amended IN Assembly June 30, 2023 Amended IN Assembly June 26, 2023
Enrolled September 04, 2024
Passed IN Senate August 30, 2024
Passed IN Assembly August 29, 2024
Amended IN Assembly August 22, 2024
Amended IN Assembly September 01, 2023
Amended IN Assembly July 06, 2023
Amended IN Assembly June 30, 2023
Amended IN Assembly June 26, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 336
Introduced by Senator UmbergFebruary 07, 2023
Introduced by Senator Umberg
February 07, 2023
An act to add Chapter 17.5 (commencing with Section 8900) to Division 1 of Title 2 of the Government Code, relating to state grants.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 336, Umberg. State grant programs: negotiated indirect cost rates.
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. Existing federal law provides uniform administrative requirements, cost principles, and audit requirements for federal grant awards to nonfederal entities and provides guidelines for determining direct and indirect costs, as defined, charged to federal awards.This bill would require, unless prohibited by any other state or federal law, a state agency administering a grant program to reimburse, when awarding a grant, the grantees indirect costs, as defined, at one of specified rates as requested by the grantee, as defined, if the grantee disclosed the requested rate amount in their grant program application. The bill would require distribution of indirect cost pools, as specified, if established. The bill would also authorize, unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency to opt, when applying for the grant, to be reimbursed for its indirect costs at one of specified rates, if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application. The bill would make these provisions applicable to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.
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. Existing federal law provides uniform administrative requirements, cost principles, and audit requirements for federal grant awards to nonfederal entities and provides guidelines for determining direct and indirect costs, as defined, charged to federal awards.
This bill would require, unless prohibited by any other state or federal law, a state agency administering a grant program to reimburse, when awarding a grant, the grantees indirect costs, as defined, at one of specified rates as requested by the grantee, as defined, if the grantee disclosed the requested rate amount in their grant program application. The bill would require distribution of indirect cost pools, as specified, if established. The bill would also authorize, unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency to opt, when applying for the grant, to be reimbursed for its indirect costs at one of specified rates, if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application. The bill would make these provisions applicable to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.
## Digest Key
## Bill Text
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 and other eligible entities 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 and other eligible entities that are consistent with each organizations federally approved negotiated indirect cost rate agreement and cost allocation policy.SEC. 2. Chapter 17.5 (commencing with Section 8900) is added to Division 1 of Title 2 of the Government Code, to read: CHAPTER 17.5. Uniform Cost Agreement for State Grants8900. (a) For purposes of this section, the following definitions apply:(1) Grantee means an applicant for a grant program that is administered by a state agency that is selected by the state agency to be awarded a grant under that program.(2) Existing state rate means a rate utilized by the grantee with a state agency within the last five years.(3) Indirect costs means those costs incurred for a common or joint purpose benefiting more than one objective, and not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved.(4) Negotiated indirect cost rate agreement means an agreement pursuant to Part 200 of Title 2 of the Code of Federal Regulations that is approved by the federal government.(b) Unless prohibited by any other state or federal law, a state agency administering a grant program shall, when awarding a grant, reimburse the grantees indirect costs at one of the following rates, as requested by the grantee, if the grantee disclosed the requested rate amount in their grant program application:(1) The grantees negotiated indirect cost rate, pursuant to its negotiated indirect cost rate agreement.(2) The de minimis indirect cost rate specified in Part 200 of Title 2 of the Code of Federal Regulations.(3) Either of the following:(A) An existing state rate.(B) If the grantee does not have an existing state rate, a rate proposed by the grantee in the grantees program application with the administering state agency.(c) Unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency may opt, when applying for the grant, to be reimbursed for its indirect costs at one of the rates described in subdivision (b), if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application.(d) For purposes of calculating indirect costs and to facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Any indirect cost pools established shall be distributed to benefited cost objectives on bases that will produce an equitable result in consideration of relative benefits derived. (e) This section applies to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.
The people of the State of California do enact as follows:
## 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 and other eligible entities 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 and other eligible entities that are consistent with each organizations federally approved negotiated indirect cost rate agreement and cost allocation policy.
SECTION 1. It is the intent of the Legislature in enacting this act to ensure that nonprofit organizations and other eligible entities 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 and other eligible entities that are consistent with each organizations federally approved negotiated indirect cost rate agreement and cost allocation policy.
SECTION 1. It is the intent of the Legislature in enacting this act to ensure that nonprofit organizations and other eligible entities 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 and other eligible entities that are consistent with each organizations federally approved negotiated indirect cost rate agreement and cost allocation policy.
### SECTION 1.
SEC. 2. Chapter 17.5 (commencing with Section 8900) is added to Division 1 of Title 2 of the Government Code, to read: CHAPTER 17.5. Uniform Cost Agreement for State Grants8900. (a) For purposes of this section, the following definitions apply:(1) Grantee means an applicant for a grant program that is administered by a state agency that is selected by the state agency to be awarded a grant under that program.(2) Existing state rate means a rate utilized by the grantee with a state agency within the last five years.(3) Indirect costs means those costs incurred for a common or joint purpose benefiting more than one objective, and not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved.(4) Negotiated indirect cost rate agreement means an agreement pursuant to Part 200 of Title 2 of the Code of Federal Regulations that is approved by the federal government.(b) Unless prohibited by any other state or federal law, a state agency administering a grant program shall, when awarding a grant, reimburse the grantees indirect costs at one of the following rates, as requested by the grantee, if the grantee disclosed the requested rate amount in their grant program application:(1) The grantees negotiated indirect cost rate, pursuant to its negotiated indirect cost rate agreement.(2) The de minimis indirect cost rate specified in Part 200 of Title 2 of the Code of Federal Regulations.(3) Either of the following:(A) An existing state rate.(B) If the grantee does not have an existing state rate, a rate proposed by the grantee in the grantees program application with the administering state agency.(c) Unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency may opt, when applying for the grant, to be reimbursed for its indirect costs at one of the rates described in subdivision (b), if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application.(d) For purposes of calculating indirect costs and to facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Any indirect cost pools established shall be distributed to benefited cost objectives on bases that will produce an equitable result in consideration of relative benefits derived. (e) This section applies to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.
SEC. 2. Chapter 17.5 (commencing with Section 8900) is added to Division 1 of Title 2 of the Government Code, to read:
### SEC. 2.
CHAPTER 17.5. Uniform Cost Agreement for State Grants8900. (a) For purposes of this section, the following definitions apply:(1) Grantee means an applicant for a grant program that is administered by a state agency that is selected by the state agency to be awarded a grant under that program.(2) Existing state rate means a rate utilized by the grantee with a state agency within the last five years.(3) Indirect costs means those costs incurred for a common or joint purpose benefiting more than one objective, and not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved.(4) Negotiated indirect cost rate agreement means an agreement pursuant to Part 200 of Title 2 of the Code of Federal Regulations that is approved by the federal government.(b) Unless prohibited by any other state or federal law, a state agency administering a grant program shall, when awarding a grant, reimburse the grantees indirect costs at one of the following rates, as requested by the grantee, if the grantee disclosed the requested rate amount in their grant program application:(1) The grantees negotiated indirect cost rate, pursuant to its negotiated indirect cost rate agreement.(2) The de minimis indirect cost rate specified in Part 200 of Title 2 of the Code of Federal Regulations.(3) Either of the following:(A) An existing state rate.(B) If the grantee does not have an existing state rate, a rate proposed by the grantee in the grantees program application with the administering state agency.(c) Unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency may opt, when applying for the grant, to be reimbursed for its indirect costs at one of the rates described in subdivision (b), if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application.(d) For purposes of calculating indirect costs and to facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Any indirect cost pools established shall be distributed to benefited cost objectives on bases that will produce an equitable result in consideration of relative benefits derived. (e) This section applies to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.
CHAPTER 17.5. Uniform Cost Agreement for State Grants8900. (a) For purposes of this section, the following definitions apply:(1) Grantee means an applicant for a grant program that is administered by a state agency that is selected by the state agency to be awarded a grant under that program.(2) Existing state rate means a rate utilized by the grantee with a state agency within the last five years.(3) Indirect costs means those costs incurred for a common or joint purpose benefiting more than one objective, and not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved.(4) Negotiated indirect cost rate agreement means an agreement pursuant to Part 200 of Title 2 of the Code of Federal Regulations that is approved by the federal government.(b) Unless prohibited by any other state or federal law, a state agency administering a grant program shall, when awarding a grant, reimburse the grantees indirect costs at one of the following rates, as requested by the grantee, if the grantee disclosed the requested rate amount in their grant program application:(1) The grantees negotiated indirect cost rate, pursuant to its negotiated indirect cost rate agreement.(2) The de minimis indirect cost rate specified in Part 200 of Title 2 of the Code of Federal Regulations.(3) Either of the following:(A) An existing state rate.(B) If the grantee does not have an existing state rate, a rate proposed by the grantee in the grantees program application with the administering state agency.(c) Unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency may opt, when applying for the grant, to be reimbursed for its indirect costs at one of the rates described in subdivision (b), if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application.(d) For purposes of calculating indirect costs and to facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Any indirect cost pools established shall be distributed to benefited cost objectives on bases that will produce an equitable result in consideration of relative benefits derived. (e) This section applies to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.
CHAPTER 17.5. Uniform Cost Agreement for State Grants
CHAPTER 17.5. Uniform Cost Agreement for State Grants
8900. (a) For purposes of this section, the following definitions apply:(1) Grantee means an applicant for a grant program that is administered by a state agency that is selected by the state agency to be awarded a grant under that program.(2) Existing state rate means a rate utilized by the grantee with a state agency within the last five years.(3) Indirect costs means those costs incurred for a common or joint purpose benefiting more than one objective, and not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved.(4) Negotiated indirect cost rate agreement means an agreement pursuant to Part 200 of Title 2 of the Code of Federal Regulations that is approved by the federal government.(b) Unless prohibited by any other state or federal law, a state agency administering a grant program shall, when awarding a grant, reimburse the grantees indirect costs at one of the following rates, as requested by the grantee, if the grantee disclosed the requested rate amount in their grant program application:(1) The grantees negotiated indirect cost rate, pursuant to its negotiated indirect cost rate agreement.(2) The de minimis indirect cost rate specified in Part 200 of Title 2 of the Code of Federal Regulations.(3) Either of the following:(A) An existing state rate.(B) If the grantee does not have an existing state rate, a rate proposed by the grantee in the grantees program application with the administering state agency.(c) Unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency may opt, when applying for the grant, to be reimbursed for its indirect costs at one of the rates described in subdivision (b), if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application.(d) For purposes of calculating indirect costs and to facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Any indirect cost pools established shall be distributed to benefited cost objectives on bases that will produce an equitable result in consideration of relative benefits derived. (e) This section applies to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.
8900. (a) For purposes of this section, the following definitions apply:
(1) Grantee means an applicant for a grant program that is administered by a state agency that is selected by the state agency to be awarded a grant under that program.
(2) Existing state rate means a rate utilized by the grantee with a state agency within the last five years.
(3) Indirect costs means those costs incurred for a common or joint purpose benefiting more than one objective, and not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved.
(4) Negotiated indirect cost rate agreement means an agreement pursuant to Part 200 of Title 2 of the Code of Federal Regulations that is approved by the federal government.
(b) Unless prohibited by any other state or federal law, a state agency administering a grant program shall, when awarding a grant, reimburse the grantees indirect costs at one of the following rates, as requested by the grantee, if the grantee disclosed the requested rate amount in their grant program application:
(1) The grantees negotiated indirect cost rate, pursuant to its negotiated indirect cost rate agreement.
(2) The de minimis indirect cost rate specified in Part 200 of Title 2 of the Code of Federal Regulations.
(3) Either of the following:
(A) An existing state rate.
(B) If the grantee does not have an existing state rate, a rate proposed by the grantee in the grantees program application with the administering state agency.
(c) Unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency may opt, when applying for the grant, to be reimbursed for its indirect costs at one of the rates described in subdivision (b), if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application.
(d) For purposes of calculating indirect costs and to facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of indirect costs. Any indirect cost pools established shall be distributed to benefited cost objectives on bases that will produce an equitable result in consideration of relative benefits derived.
(e) This section applies to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.