Public social services: tax-exempt nonprofit organizations.

Assembly Member Bonta, joined by principal coauthor Senator McNerney and coauthor Assembly Member Lee, advances a measure that front-loads a core change: when state grant or contract eligibility or the disbursement of state or local funds refers to federal tax-exempt status, the reference is to be interpreted as referring to California’s own tax-exemption provisions. The measure also creates a new framework to support refugee and asylee services through an Enhanced Services for Asylees and Vulnerable Noncitizens program, establishing a formal structure for resettlement assistance administered by nonprofit organizations.

The bill expands who can qualify as a “qualified nonprofit organization” by adding eligibility tied to state tax-exemption status in addition to the existing federal tax-exemption criteria. It defines eligible entities as nonprofits that are exempt under either federal 501(c)(3) or 501(c)(5) or state tax-exemption under California’s related provisions, provided they meet additional eligibility criteria established by the department. The act preserves existing refugee social services concepts, including English language and employment training funded through federal appropriations, and designates the department as the administrator of refugee services through qualified nonprofit providers and private entities selected to deliver immigration-related legal services.

For grants related to immigration services, the bill requires recipients to meet specific experience and credentialing standards: entities must have at least three years of relevant experience, conduct trainings beyond their staff, and be recognized or accredited by authorities such as the Office of Legal Access Programs or the State Bar’s Trust Fund program. In certain cases, a legally specialized organization with advanced experience may meet alternative criteria at the department’s discretion. The act also requires reporting, monitoring, or audits of services, and mandates that grant recipients maintain adequate legal malpractice insurance and indemnify the state against claims arising from provided services.

In terms of program design and service delivery, the bill authorizes grants to support “critical assistance” for immigrants, including medical screenings, housing or shelter with related infrastructure and staff, food, clothing, transportation, communications and translation, and outreach and case management. It imposes three-year experience requirements for medical screenings and for other assistance (or subcontracting with an entity that has that experience), and allows subcontracting for medical screenings to qualified partners. Not more than forty percent of each grant or contract may be advanced to the recipient, and funding under these programs must be coordinated with other immigrant-support funds and must supplement rather than replace those funds.

The Enhanced Services for Asylees and Vulnerable Noncitizens program defines vulnerable noncitizens and requires that ESAVN grants be awarded only to nonprofits meeting the federal-exemption criteria and having at least three years of experience in delivering case management and culturally and linguistically appropriate services. The department may require reporting, monitoring, or audits and may authorize funding for formal evaluation of the services provided. The act also contains severability provisions and an urgency clause, asserting immediate effectiveness to address concerns related to federal actions affecting nonprofit organizations serving vulnerable communities, and to integrate ESAVN with the state’s broader social services framework administered by the Department of Social Services.