State grant programs: negotiated cost rate agreements.

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 require, to the extent possible and permitted by federal 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 grantee's 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 grantee's 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.