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    AB-1039
    Government Operations

    State-funded assistance grants and contracts: advance payments.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Requires state agencies to provide advance payments for all grants and contracts advertised after January 1, 2026.
    • Mandates disclosure of advance payment percentages in all grant solicitations and registrations.
    • Limits advance payments to 25% of total grant funds unless recipients justify a larger amount.
    • Requires recipients to submit quarterly progress reports and return any unused advance funds.

    Summary

    Assembly Member Hart's legislation revises California's advance payment practices for state grants and contracts with nonprofit organizations and tribal entities. The bill modifies existing requirements for grants advertised before January 1, 2026, while establishing new mandatory advance payment provisions for future funding opportunities.

    For grants advertised prior to 2026, the legislation maintains current advance payment caps at 25% of total funding, though agencies may exceed this limit with sufficient justification. State agencies must consider advance payment practices developed by the Strategic Growth Council's Community Assistance for Climate Equity program. The bill also refines requirements for recipient entities, mandating that organizations receiving over $10,000 deposit advance payments in federally insured accounts and submit quarterly progress reports on fund expenditure.

    Beginning January 1, 2026, state agencies must provide advance payments for all advertised grants and contracts. Grant solicitations will specify the percentage of funds available as advance payments, and this information must be included when agencies register grants with the California State Library. The Department of Finance retains authority to audit any state agency, recipient, or subrecipient receiving advance payments, with entities required to provide access to financial records and other relevant materials.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Appropriations
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Appropriations
    Hearing scheduled for , 1021 O Street, Room 2200
    Senate Governmental Organization Hearing
    Senate Committee
    Senate Governmental Organization Hearing
    Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1039 Hart Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass
    Assembly Governmental Organization Hearing
    Assembly Committee
    Assembly Governmental Organization Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Gregg HartD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 9 row(s) selected.
    Page 1 of 2
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Gregg HartD
    Assemblymember
    Bill Author
    Profile
    Esmeralda SoriaD
    Assemblymember
    Bill Author
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Laura RichardsonD
    Senator
    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
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/2/2025)

    Latest Voting History

    View History
    July 8, 2025
    PASS
    Senate Committee
    Senate Governmental Organization Hearing
    AyesNoesNVRTotalResult
    150015PASS

    Key Takeaways

    • Requires state agencies to provide advance payments for all grants and contracts advertised after January 1, 2026.
    • Mandates disclosure of advance payment percentages in all grant solicitations and registrations.
    • Limits advance payments to 25% of total grant funds unless recipients justify a larger amount.
    • Requires recipients to submit quarterly progress reports and return any unused advance funds.

    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 revises California's advance payment practices for state grants and contracts with nonprofit organizations and tribal entities. The bill modifies existing requirements for grants advertised before January 1, 2026, while establishing new mandatory advance payment provisions for future funding opportunities.

    For grants advertised prior to 2026, the legislation maintains current advance payment caps at 25% of total funding, though agencies may exceed this limit with sufficient justification. State agencies must consider advance payment practices developed by the Strategic Growth Council's Community Assistance for Climate Equity program. The bill also refines requirements for recipient entities, mandating that organizations receiving over $10,000 deposit advance payments in federally insured accounts and submit quarterly progress reports on fund expenditure.

    Beginning January 1, 2026, state agencies must provide advance payments for all advertised grants and contracts. Grant solicitations will specify the percentage of funds available as advance payments, and this information must be included when agencies register grants with the California State Library. The Department of Finance retains authority to audit any state agency, recipient, or subrecipient receiving advance payments, with entities required to provide access to financial records and other relevant materials.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/2/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Appropriations
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Appropriations
    Hearing scheduled for , 1021 O Street, Room 2200
    Senate Governmental Organization Hearing
    Senate Committee
    Senate Governmental Organization Hearing
    Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1039 Hart Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass
    Assembly Governmental Organization Hearing
    Assembly Committee
    Assembly Governmental Organization Hearing
    Do pass and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Latest Voting History

    View History
    July 8, 2025
    PASS
    Senate Committee
    Senate Governmental Organization Hearing
    AyesNoesNVRTotalResult
    150015PASS

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Gregg HartD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 9 row(s) selected.
    Page 1 of 2
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Gregg HartD
    Assemblymember
    Bill Author
    Profile
    Esmeralda SoriaD
    Assemblymember
    Bill Author
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Laura RichardsonD
    Senator
    Committee Member