AB-1039
Government Operations

State-funded assistance grants and contracts: advance payments.

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Requires state agencies to provide advance payments for all grants and contracts starting January 1, 2026.
  • Mandates advance payments cannot exceed 25% of total grant funds unless specially justified.
  • Requires recipients to provide quarterly reports and deposit advance funds in federally insured accounts.
  • Authorizes the Department of Finance to audit any recipient of advance payments for compliance.

Summary

Assembly Member Hart's legislation mandates advance payments for California state grants and contracts while establishing new transparency requirements for fund distribution. The bill requires state agencies to provide advance payments to qualified nonprofit organizations and tribal entities for all grants and contracts advertised after January 1, 2026, replacing the current optional advance payment system.

The measure modifies existing prioritization requirements for disadvantaged communities, limiting them to grants advertised before 2026. For subsequent grants, agencies must disclose the percentage of funds available as advance payments in both solicitation materials and grant registrations with the California State Library. While maintaining the standard 25% cap on advance payments, agencies may exceed this limit when recipient entities demonstrate sufficient need.

Recipients must meet specific requirements to qualify for advance payments, including providing detailed budgets, maintaining federally insured accounts for fund tracking, and submitting quarterly progress reports. The Department of Finance gains authority to audit both state agencies and recipients to verify proper fund utilization. The legislation preserves agencies' existing payment and grantmaking authorities while adding these new requirements for advance payments.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Appropriations
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Appropriations
Hearing has not been scheduled yet
Assembly Governmental Organization Hearing
Assembly Committee
Assembly Governmental Organization Hearing
Assembly Governmental Organization Hearing
Read first time. To print.
Assembly Floor
Read first time. To print.
Read first time. To print.

Contacts

Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Lisa CalderonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike FongD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Diane DixonR
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
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Select All Legislators
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Bill Author
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Esmeralda SoriaD
Assemblymember
Bill Author
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Jessica CalozaD
Assemblymember
Committee Member
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
Heather HadwickR
Assemblymember
Committee Member
Profile
Jose SolacheD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Gregg Hart
Gregg HartD
California State Assembly Member
Co-Author
Esmeralda Soria
Esmeralda SoriaD
California State Assembly Member
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

Latest Voting History

April 23, 2025
PASS
Assembly Committee
Assembly Governmental Organization Hearing
AyesNoesNVRTotalResult
220022PASS

Key Takeaways

  • Requires state agencies to provide advance payments for all grants and contracts starting January 1, 2026.
  • Mandates advance payments cannot exceed 25% of total grant funds unless specially justified.
  • Requires recipients to provide quarterly reports and deposit advance funds in federally insured accounts.
  • Authorizes the Department of Finance to audit any recipient of advance payments for compliance.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Gregg Hart
Gregg HartD
California State Assembly Member
Co-Author
Esmeralda Soria
Esmeralda SoriaD
California State Assembly Member

Summary

Assembly Member Hart's legislation mandates advance payments for California state grants and contracts while establishing new transparency requirements for fund distribution. The bill requires state agencies to provide advance payments to qualified nonprofit organizations and tribal entities for all grants and contracts advertised after January 1, 2026, replacing the current optional advance payment system.

The measure modifies existing prioritization requirements for disadvantaged communities, limiting them to grants advertised before 2026. For subsequent grants, agencies must disclose the percentage of funds available as advance payments in both solicitation materials and grant registrations with the California State Library. While maintaining the standard 25% cap on advance payments, agencies may exceed this limit when recipient entities demonstrate sufficient need.

Recipients must meet specific requirements to qualify for advance payments, including providing detailed budgets, maintaining federally insured accounts for fund tracking, and submitting quarterly progress reports. The Department of Finance gains authority to audit both state agencies and recipients to verify proper fund utilization. The legislation preserves agencies' existing payment and grantmaking authorities while adding these new requirements for advance payments.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/20/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Appropriations
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Appropriations
Hearing has not been scheduled yet
Assembly Governmental Organization Hearing
Assembly Committee
Assembly Governmental Organization Hearing
Assembly Governmental Organization Hearing
Read first time. To print.
Assembly Floor
Read first time. To print.
Read first time. To print.

Latest Voting History

April 23, 2025
PASS
Assembly Committee
Assembly Governmental Organization Hearing
AyesNoesNVRTotalResult
220022PASS

Contacts

Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Lisa CalderonD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Mike FongD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Diane DixonR
Assemblymember
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Bill Author
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Esmeralda SoriaD
Assemblymember
Bill Author
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Jessica CalozaD
Assemblymember
Committee Member
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
Heather HadwickR
Assemblymember
Committee Member
Profile
Jose SolacheD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member