HB 1274: State Agency Payments to Grant Recipients

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

Pursuant to existing law, when an administering state agency awards a grant to a nonprofit organization (grantee), the grantee is generally required to access the grant award by applying for the reimbursement of costs incurred in completing the activity for which the administering state agency awarded the grant.     Notwithstanding any provision of law to the contrary, the act allows an administering state agency to advance a payment to a grantee only for a state-funded grant subject to certain requirements.     The administering state agency shall:Have an existing process or develop a new process that is approved by the state controller to dispense an advance payment;Disclose the availability of advance payment in any notice of a grant funding opportunity, grant solicitation, request for applications, or other announcement issued to prospective grantees;Ensure that any advance payment to a grantee is the minimum amount needed to achieve the outcome of actual, immediate cash requirements of the grantee in carrying out the grant objective; and Use the office of the state controller's risk assessment tool to determine whether a grantee is high, medium, or low risk and allow advance payment only to a grantee that is determined to be low risk. An administering state agency may modify the considerations in the risk assessment tool depending on the specific situation.     The grantee shall:Provide an itemized budget to the administering state agency for the eligible costs that the advance payment will cover, the indirect or other costs that the grantee needs to operate, a spending timeline, and a workplan developed as specified by the administering state agency;Submit documentation to support the need for advance payment; If required by the administering state agency and stipulated within the grant agreement, obtain insurance in an amount commensurate with the assessed risk determined by the administering state agency ;Establish procedures to minimize the amount of time that elapses between the transfer of money and the expenditure of the money by the grantee;Provide a progress report to the administering state agency following the expenditure of an advance payment; andDisclose certain internal controls to the administering state agency.      The grantee shall propose the minimum amount needed to achieve the grant objective and the controller of the administering state agency shall review and determine whether to accept the amount or propose an alternative amount. The controller of the administering state agency shall forward advance payment requests to the state controller for approval.     A grantee shall return to the administering state agency all unused money provided as an advance payment but not expended within the grant agreement timeline. A grantee that is paid a percentage of the total value of the payments under a grant agreement immediately upon executing the grant agreement must comply with all of the reporting requirements specified in the grant agreement.     If an administering state agency or the office of the state controller denies a grantee's request for advance payment, the administering state agency shall provide the grantee with a written explanation of the deficiencies in the application for advance payment that determined the decision to deny the request. The administering state agency shall make the elements and results of the risk assessment available to the grantee.     The act does not prevent an administering state agency, in providing advance payment to a grantee, from using a waiver process available through fiscal rules adopted by the state controller or rules adopted by a federal governmental entity to dispense a percentage of the total value of the payments under the grant agreement to the grantee immediately upon executing or renewing the grant agreement.     Nothing in the act limits, prohibits, or supersedes any existing payment or grant-making authority or powers of a state agency.     For the 2026-27 state fiscal year, the act appropriates $34,146 from the general fund to the department of personnel for use by the division of accounts and control to implement the act.(Note: This summary applies to this bill as enacted.)

Sponsors

Sponsors by party (alphabetical): Democratic 20

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 4, 2026Governor Signed
2. June 3, 2026Signed by the Speaker of the House
3. June 3, 2026Signed by the President of the Senate
4. June 3, 2026Sent to the Governor
5. May 13, 2026House Considered Senate Amendments - Result was to Adhere
6. May 13, 2026Senate Considered House Adherence - Result was to Recede
7. May 12, 2026Senate Third Reading Passed with Amendments - Floor
8. May 11, 2026Introduced In Senate - Assigned to State, Veterans, & Military Affairs
9. May 11, 2026Senate Committee on State, Veterans, & Military Affairs Refer Unamended to Appropriations
10. May 11, 2026Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole
11. May 11, 2026Senate Second Reading Special Order - Passed - No Amendments
12. May 9, 2026House Third Reading Passed - No Amendments

Showing 12 most recent of 16 actions. Full history