AB 696: State agency grants and contracts.

Existing law generally establishes procedures and requirements for state agencies to enter into contracts for goods and services, including requirements imposed under the State Contract Act for bidding and award of certain public works contracts.

This bill would enact The California State Grants and Contracts Modernization Act which would, commencing July 1, 2025, require a state agency that administers a grant or enters into a contract with any eligible entity to follow certain procedures, including, among other things, providing for and accepting electronic signatures, as defined, and not requiring an original or wet signature on any document associated with the contract or grant. to provide for and accept electronic signatures and electronic transmission, and provide for and offer the option of payment by electronic funds or automatic clearinghouse transfer. The bill would also, among other things, prohibit a state agency that administers a grant or contract with any eligible entity on and after July 1, 2025, from requiring an original or wet signature on a contract or grant document, unless otherwise required by state or federal law.

Existing law, the Grant Information Act of 2018, requires the California State Library to create a funding opportunities internet website that provides a centralized location for grant seekers to find state grant opportunities. Existing law requires each state agency to register every grant the state agency administers with the California State Library prior to commencing a solicitation or award process for distribution of the grant. Existing law requires each state agency to provide for the acceptance of electronic applications for any grant administered by the agency, as appropriate.

This bill would require the California State Library to, by July 1, 2025, create and make available an internet website that all state agencies administering grants or contracts can access and allows any eligible entity to submit any documents associated with the grant or contract, as specified. Library, by December 31, 2024, to survey all agencies administering grants or contracts with eligible entities and report to the Legislature on the extent and nature of electronic management of documents, as specified.