State-funded assistance grants and contracts: advance payments.

(1) Existing law authorizes specified state departments and authorities, upon determination that an advance payment is essential for the effective implementation of a program, to advance to a community-based private nonprofit agency with which it has contracted for the delivery of services funds not exceeding 25% of the annual allocation to be made to the agency during the fiscal year. Existing law authorizes an administering state agency to advance a payment to a recipient entity, defined to mean a private, nonprofit organization qualified under federal law, subject to meeting specified requirements. Existing law requires the administering state agency to prioritize recipient entities and projects serving disadvantaged, low-income, and under-resourced communities, and to ensure an advance payment to the recipient entity does not exceed 25% of the total grant or contract amount. Existing law requires the recipient entity to satisfy certain minimum requirements, including providing an itemized budget, submitting documentation, as required by the administering state agency, to support the need for advance payment, and demonstrating its current status in good standing as an organization exempt from taxation under federal law. Existing law declares the intent of the Legislature to improve and expand the state's existing advance payment practices for state grants and contracts with nonprofits. This bill would expand the definition of a "recipient entity" to include a federally recognized Indian tribe whose territorial boundaries lie wholly or partially within the State of California, and any agencies, entities, or arms of the tribe, as applicable, either together or separately. The bill would exempt a tribe from the requirement to demonstrate good standing as an organization exempt from taxation under federal law. The bill would additionally declare the intent of the Legislature to improve and expand the state's existing advance payment practices for state grants and contracts with tribes. (2) Existing law imposes various limitations on emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources. Existing law generally designates the State Air Resources Board (CARB) as the state agency with the primary responsibility for the control of vehicular air pollution. Existing law authorizes CARB to provide advance payments to grantees of a grant program or project if CARB determines specified conditions are met, including a condition that the grantee agrees not to provide an advance payment to any other entity. This bill would repeal that condition prohibiting an advance payment to any other entity, and instead would authorize a grantee to make an advance payment to a subrecipient consistent with the above-described law relating to advance payments by state agencies. For purposes of these provisions, the bill would expand the definition of "recipient entity" to include a local agency or a nongovernmental entity. The bill would exempt a subrecipient that is a local agency or nongovernmental entity, other than a private, nonprofit organization, from the requirement to demonstrate good standing as an organization exempt from taxation under federal law and instead would require the agency or entity to demonstrate good standing with the United States Internal Revenue Service.