The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract. The act requires, to avoid late payment penalties, a state agency to make payment within 45 days of the receipt of an undisputed invoice, as prescribed. The act provides an exception from those penalty provisions if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000. The act defines the term grant to mean a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency or restoration activities performed by a resource conservation district.

This bill would delete the definition of the term grant from the act and would delete the $500,000 exception described above. The bill would provide that only specified late payment penalties apply to a signed final agreement for a grant as described in the above-paragraph or a grant by any state agency to a nonprofit organization.

The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract. The act requires, to avoid late payment penalties, a state agency to make payment within 45 days of the receipt of an undisputed invoice, as prescribed. The act provides an exception from those penalty provisions if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000. The act defines the term grant to mean a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency or restoration activities performed by a resource conservation district.

This bill would define delete the definition of the term grant to additionally mean a signed final agreement between any state agency and a nonprofit organization from the act and would delete the $500,000 exception described above. The bill would provide that only specified late payment penalties apply to a signed final agreement for a grant as described in the above-paragraph or a grant by any state agency to a nonprofit organization.

The California Prompt Payment Act requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract. The act requires, to avoid late payment penalties, a state agency to make payment within 45 days of the receipt of an undisputed invoice, as prescribed. The act provides an exception from those penalty provisions if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000. The act defines the term grant to mean a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency or restoration activities performed by a resource conservation district.

This bill would define the term grant to additionally mean a signed final agreement between any state agency and a nonprofit organization and would delete the $500,000 exception described above.

The act authorizes a state agency to dispute for reasonable cause an invoice, refund request, or claim for Medi-Cal reimbursement, as specified.

This bill would require, if a state agency disputes an invoice received from a nonprofit organization claimant, the state agency to pay, within 45 calendar days from receipt of the invoice, the undisputed portion of the invoice if the disputed amount is equal to or less than the lesser of $250 and 5% of the total amount of the invoice.

 VETO  

Bill No: SB 1246

Author: Limón (D), et al.

Enrolled: 9/4/24

Vote: 27

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 4/9/24

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Rubio, Seyarto, Smallwood-Cuevas

NO VOTE RECORDED: Ashby, Roth

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

SENATE FLOOR: 37-0, 5/23/24

AYES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

NO VOTE RECORDED: Allen, Archuleta, Newman

SENATE FLOOR: 40-0, 8/30/24

AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ASSEMBLY FLOOR: 76-0, 8/28/24 - See last page for vote

SUBJECT: California Prompt Payment Act: nonprofit organizations

SOURCE: Author

DIGEST:

This bill deletes, for the purposes of the California Prompt Payment Act (PPA), the definition of the term “grant” from the PPA and deletes the $500,000 exception in existing law and provides that only specified late payment penalties apply to a signed final agreement for a grant, as specified, or a grant by any state agency to a nonprofit organization.

ANALYSIS:

Existing law:

1. The PPA requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract.
2. Requires a state agency, to avoid late payment penalties, to make payment within 45 days of the receipt of an undisputed invoice, as specified.
3. Requires an exception from those penalty provisions if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000.
4. Authorizes a state agency to dispute for reasonable cause an invoice, refund requests, or claim for Medi-Cal reimbursement, as specified.
5. Requires, on an annual basis, state agencies to provide the Department of General Services (DGS) with a report on late payment penalties that were paid by the state agency in accordance with the PPA during the preceding fiscal year.
6. Defines the term “grant” to mean a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered for any state agency, or restoration activities performed by a resource conservation district.
7. Defines “nonprofit service organization” to mean a nonprofit entity that is organized to provide services to the public.

This bill:

1. Specifies that the PPA and the associated late payment penalties apply to a signed final agreement for any of the following types of grants:
   1. A grant by any state agency to a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency.
   2. A grant to a resource conservation district for restoration activities.
   3. A grant by any state agency to a nonprofit organization.
2. Deletes the term and definition of “grant” in the PPA.
3. Specifies that for the purposes of the PPA, “nonprofit organization” means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.
4. Deletes from the PPA the $500,000 exception from penalty provisions if the grant is awarded to a nonprofit organization, as specified.

Background

Author Statement. According to the author’s office, “California nonprofits are a bridge to our local communities, ensuring that critical services are accessible to residents while contributing to their regional, social, and economic growth. SB 1246 increases equity for nonprofits and ensures that nonprofits receive grants and contact payments from the state, in a timely manner, for the betterment of their communities.”

California’s Prompt Payment Act. Under the PPA, state agencies that acquire property or services pursuant to a contract with a business are required to make payment on the date required by the contract, or within 45 days of the state agency's receipt of an undisputed invoice. If this requirement is not met, state agencies must automatically calculate and pay appropriate late payment penalties as specified in Government Code Section 927, et seq. Late payments may occur for a variety of reasons, including administrative decisions relating to cash flow, bond sales, or delays in meeting conditions set forth in federal legislation.

Existing law specifies that state agencies pay applicable penalties, without requiring the claimant to submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the State Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. Penalties paid by a state agency to a certified small business, nonprofit organization, nonprofit public benefit corporation, and a small business or nonprofit that provides services or equipment under Medi-Cal shall be calculated at a rate of 10% above the United State Prime Rate on June 30th of the prior year.

Additionally, the PPA provides that if the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the controller must pay a penalty at a rate of 10% above the United State Prime Rate on June 30 of the prior fiscal year, as specified.

However, existing law specifies that for the late payment penalty provisions of the PPA described above, a nonprofit organization is only eligible to receive a penalty payment if the contract or grant is an amount less than $500,000. Since 2013, DGS has overseen the PPA to ensure that government agencies, in a timely manner, pay their contracts awarded to a certified small business or nonprofit. The PPA indicates that nonprofits are only eligible to receive a penalty payment if the grant or contract awarded is an amount less than $500,000.  Hence, the PPA only applies to a limited set of grants, excluding numerous nonprofits that provide essential services to California communities.

This bill deletes the definition of the term “grant” from the PPA and deletes the $500,000 exception in the act. Additionally, this bill provides that only specified late payment penalties apply to a signed final agreement for a grant, as specified, or a grant by any state agency to a nonprofit organization.

It’s Déjà Vu All Over Again. This bill is substantially similar to SB 557 (Limon, 2023) which sought to expand the definition of a grant for the purposes of the PPA requiring timely payments to include nonprofits by changing what is considered a grant and setting a specific monetary threshold of $250 or five percent of the invoiced amount for when a state agency can dispute a bill related to property or services delivered.

That bill unanimously passed both houses of the legislature, however Governor Newsom vetoed this bill, writing:

This bill would extend Prompt Payment Act requirements and penalties to all grants to nonprofit organizations and makes nonprofit organizations eligible for the higher penalty rate paid to small businesses, regardless of the size of the grant or contract. Additionally, for disputed invoices regarding the quantity of goods or services delivered to or accepted by the state, this bill would provide that the dispute suspends the requirement to pay within 45 days only if the disputed portion exceeds five percent of the invoiced amount or $250, whichever is less. This provision would cover all state contractors and grantees, not just nonprofit organizations.

I appreciate the role nonprofit organizations play in supporting our state's communities and economy, and I thank the author for the continued commitment to this critical sector. However, being able to suspend the 45-day requirement in a dispute over the quantity of goods or services provided is essential to the state's fiduciary responsibility and accountability as a distributor of public funds. Moreover, establishing a minimum discrepancy amount to suspend the 45-day requirement could pressure state employees to pay invoices with missing documentation to avoid having to report a late payment penalty.

My Administration remains committed to working with nonprofit organizations to support the sector's ability to deliver programs and support communities, while also balancing the need for accountability for state funds. I look forward to working with stakeholders on the implementation of related efforts, and I encourage the author and stakeholders to continue working with my administration on the overarching goals of this bill, while addressing accountability concerns.

Notably, SB 557 revised the threshold for discrepancies to be considered “reasonable cause” to include when there is a discrepancy of an amount greater than $250 or five percent of the invoiced amount, whichever is lesser. This bill does not specify a threshold for discrepancies between the invoice or claimed amount and the actual delivery of property or services or the state’s acceptance of those deliveries. Rather, this bill provides that if a state agency disputes an invoice received from a nonprofit organization claimant, the state agency must pay, within 45 calendar days from receipt of the invoice, the undisputed portion of the invoice if the disputed amount is equal to or less than $250 or five percent of the total amount of the invoice.

Related/Prior Legislation

SB 336 (Umberg, 2023) requires a state agency administering a grant program to reimburse a grantee’s indirect costs at one of three specified rates requested by the grantee in its state grant program application. (Vetoed by Governor Newsom)

SB 557 (Limon, 2023) would have expanded the definition of a grant for the purposes of the PPA requiring timely payments to include nonprofits by changing what is considered a grant and sets a specific monetary threshold of $250 or five percent of the invoiced amount (whichever is lower) for when a state agency can dispute a bill related to property or services delivered. (Vetoed by Governor Newsom)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee, costs of approximately $170,000 each year for two years to DGS for an additional staff position to interpret and implement guidance to state agencies regarding PPA expansion (Service Revolving Fund). Workload includes updating regulations and the State Contracting Manual, as well as training for state procurement professionals. Additionally, costs of $85,000 annually to DGS for additional staff workload to calculate disputed contract amounts to determine whether timely payment of the undisputed amount is due, as well as to work with those contractors to resolve errors or issues. DGS notes that these latter resources would not be required if the calculation threshold is removed from the bill.

Costs of an unknown, but potentially significant, amount across state agencies to the extent additional penalty payments are incurred by state agencies, as this bill expands the scope of grants covered by the PPA generally and the scope of contracts and grants eligible for the penalty payment, including entities entitled to the higher penalty rate (General Fund [GF] or special funds). Or, in attempt to avoid penalties, state agencies may incur potentially significant administrative costs to ensure timely payment to those contracts and grants.

SUPPORT: (Verified 9/30/24)

5 Stones Open Door
805UndocuFund
A Broader Living Experience Dba Able
Abrazar, INC.
Access Impact
Active San Gabriel Valley
Acts Senior Assistance
Afghan Culture and Art
African American Network of Kern County
Agape Community Christian Church
Akoma Unity Center
Alan Hu Foundation
Alchemist CDC
All for Kids
Almaden Valley Counseling Service
Alpine Outdoor Recreation Association
Amanda's Adaptive Martial Arts
American Academy of Pediatrics - Orange County Chapter
American Patriot Music Project
Anchored Life Recovery Services LLC
API Equality-LA
APRIL Parker Foundation
Aresis Ensemble (city Garage)
Arts Orange County
Asian Pacific American Community Center
Asociacion Cultural Los Angeles
Asociacion De Emprendedor@s
Aspiranet
Association for Environmental and Outdoor Education
Association of California Symphony Orchestras
Axis Advocacy
BANJ Health Center
Barrio Station
Bike East Bay
Boo2bullying
Boys & Girls Club of Laguna Beach
Boys & Girls Clubs of Fresno County
Boys and Girls Club of Merced
Breathe Southern California
Brighter Funding
Brothers on The Rise
Bruised But Not Broken Family Resource Center
Building Resilient Communities
Butte Environmental Council
C.d. Jackson and Associates
CA Arts Advocates
Calaveras Healthy Impact Product Solutions
CalCAPA
California Association of Nonprofits
California Bicycle Coalition
California Black Health Network
California Coalition for Community Investment
California Coalition for Community Investment
California Coalition for Rural Housing
California Community Builders
California Community Economic Development Association
California Community Living Network
California Council of Community Behavioral Health Agencies
California Family Resource Association
California Health Collaborative
California Partnership to End Domestic Violence
California ReLeaf
Calm
CalNonprofits
Cameo - California Association for Micro Enterprise Opportunity
Cameo Network
Carpinteria Children's Project
Catholic Big Brothers Big Sisters of Los Angeles County
Catholic Charities of Santa Clara County
Center for Accessible Technology
Center for Leadership, Equity, and Research

Center for Living and Learning
Center for Nonprofit Management
Center for Urban Excellence
Chance Theater
ChicoSTART
Child Abuse Prevention Center
Child Abuse Prevention Center and Its Affiliates Safe Kids California, Prevent Child Abuse California and The California Family Resource Association; the
Child Parent Institute
Children's Fund
Children's Health Initiative for Medication Education
Children's Institute
Chrysalis
City Serve of The Tri Valley
Clarke Historical Museum
CNCDA Foundation
Coastal
Coastal Nonprofit Consulting
Collective of Thinkers INC.
Community Water Center
Community Alliance With Family Farmers
Community Bridges
Community Build, INC.
Community Homeless Solutions
Community Investment Strategies
Community Leaders Coalition
Community Legal Services in East Palo Alto
Community Nature Connection
Community Now
Community Resource Project
Community Water Center
CompassPoint
Counseling Options and Parent Education Support Center, INC.
Crenshaw Health Partners INC
Crossword Church
Crystal Clear Biz Ops
Culture Scholar Corporation
Davis Media Access
Desert Sanctuary INC.
Diamond Collective
Divine Truth Unity Fellowship Church Dba Rainbow Pride Youth Alliance
Dolores Huerta Foundation
Donna Sternberg & Dancers
Doves of Big Bear Valley, INC.
Dovetail Learning
Down Syndrome Connection of The Bay Area
DUC Learning Center
Earth Discovery Institute
East Bay Sanctuary Covenant
East Contra Costa Community Alliance
Eastmont Community Center
Ebony Repertory Theatre
Education Francaise Bay Area
El Concilio of Stockton
El Nido Family Centers
El Sol Neighborhood Educational Center
ElderHelp of San Diego
Elkhorn Slough Foundation
Episcopal Community Services
Equality California
Exceptional Parents Unlimited
Exploring New Horizons Outdoor Schools
Eyeshine
Families Achieving Success
Families in Transition of Santa Cruz County, INC.
Family Bridges, INC
Family Service Association
Family Violence Appellate Project
Family Works
FASD Network of Southern California
Federacion Clubes Michocanos Orange County
Filipino American Service Group, INC.
First Presbyterian Church of Hayward
Food Finders, INC.
FoodCycle
Foundation for Filipina Women's Network
Fresno Building Healthy Communities
Fresno State Humanities
Friends of Harbors, Beaches and Parks
Friends of International Friendship Park, INC.
Friends Outside
Gateway Center of Monterey County
Ghost Pine Native Plant Nursery
Giving 365
Global Refugee Awareness Healing Center
Grand Vision Foundation
Grantland L Johnson Institute of Leadership Development
Grateful Heart Consulting
Green Energy Solutions Holdings LLC
Greenhouse Family Services
Handson Central California
HARC, INC.
HealthForce Partners Northern San Joaquin Valley
HealthRight 360
Healthy Kids Happy Faces
Heart of Compassion Distribution
Heartbeat of Champions Foundation
Help Is Hope Foundation
Hidden Truths Project
Hillsides
His Daughters House
House of Ruth, INC.
Huckleberry Youth Programs
iACT
Idyllwild Forest Health Project
Inland Empire Community Collaborative
Inland Empire Latino Lawyers Association
Inland Southern California United Way
InnaVision Preparation Foundation
Inner City Bliss
Interface Children and Family Services
Interfaith Housing, INC.
International Trade Education Programs, INC Dba Exp
Iron Sharpens Iron Nonprofit Organization
Isaac Innovative Space for Asian American Christianity
Ives Torres Foundation
Jewish Family Service LA
Joslyn Center for Seniors
Junior Achievement of Northern California
Kalaya's Destiny
Kamali'i Foster Family Agency, INC.
Keep Coyote Creek Beautiful
Kitka, INC.
Korean American Federation of Los Angeles
Korean American Special Education Center
Koreatown Youth + Community Center
Koreatown Youth and Community Center
LA Red Network of Family Child Care Providers
Lake Family Resource Center
Lake Links, INC
Lakeside Historical Society
Latino Outdoors
Lavendercomputing
Lazarex Cancer Foundation
League of California Community Foundations
Leap
Learning Rights Law Center
Learningtech.org
Legacy LA
Let Spirit Lead, INC.
Lift Love Family Services
Linda Civitello Consulting
Little Brothers-friends of The Elderly- Bay Area
Little Manila Rising
Local Clean Energy Alliance
Los Angeles Area Chamber of Commerce
Los Angeles Inner City CulturalCenter
Los Angeles Metropolitan Churches
Los Angeles Neighborhood Initiative
Lotus Medical Career College
Mack Sacred Trust
Madera Coalition for Community Justice
Making Hope Happen Foundation
Mandate Project Impact, INC.
Mariachi Scholarship Foundation
Marin City Community Development Corporation
Maternal and Child Health Access
McKinleyville Family Resource Center
Meadowview Urban Tree Project
Meals on Wheels - Santa Maria Valley
Meals on Wheels California
Meals on Wheels California, INC.
Meals That Connect
Media Alliance
Mend-meet Each Need With Dignity
Michelle's Place
Michelle's Place Cancer Resource Center
Microenterprise Collaborative of Inland Southern California
Mission Hope
Mountain Homeless Coalition
NAMI Tri-valley
National Alliance on Student Loan Debt
National Harm Reduction Coalition
National High School Career Day Network
National Latina Business Women Association-ie Institute
National Small Business Advocacy Council
National Treasure Mustang Rescue and Sanctuary
Nature for All
Nehemiah Charitable Fund
Nevada City Broadcast Group
NextGen DreamBuilders
No Drugs America Association, INC
Nonprofit Connection Santa Cruz County
Nonprofit Finance Fund
Nonprofit Growth Advisors
Northern California Regional Land Trust
Northern Santa Barbara County United Way
ONTRACK Program Resources, INC.
Open Medicine Foundation
Our Community Works
Our Hands of Love Corporation
Oxnard Performing Arts Center Corporation
Pacific Asian Counseling Services
Pacific Coast Fish, Wildlife and Wetlands Restoration Association
Paddle for Peace
Parentz Work
Parkview Legacy Foundation
Partners for Change
Pasadena Village
Pastor Mace INC.
Path
PathPoint
Pathway Family Services, INC.
PCRI
Peninsula Family Service
Peruvian Community OC
Philanthropy California
Playful People Productions
Playzeum Yuba Sutter
Pleasantview Industries
Pogo Park
Power House United INC
Praxis Health Empowerment
Primary Care At Home, INC.
Pro Youth and Families
Program for Torture Victims
Public Counsel
Public Works Improvisational Theatre FNDN., INC
Raizes Collective
Ralls Consulting Services
RCCG-Jesus House Silicon Valley
REDF
Redwood Community Action Agency
Refugee Jumpstart Coaching
Repeat Reuse
ReScape California
Riverside Medical Clinic Charitable Foundation
Rose Bowl Aquatics Center
Rural Communities Resource Center
Rural Community Assistance Corporation
Rural Community Assistance Corporation
RYSE Center
Sacramento Splash
Safer West County
Sailing Sorcery - Project NxT
Salvadoran American Leadership and Educational Fund
San Bernardino Fatherhood
San Francisco Public Health Foundation
Sanchez Art Center
Santa Barbara Botanic Garden
Santa Barbara Foundation
Santa Barbara Student Housing Cooperative
Santa Cruz Volunteer Center
Save Our Shores
Say San Diego (social Advocates for Youth
Self-help Enterprises
Senior Coastsiders
Senior Services Coalition of Alameda County
Seniors Council of Santa Cruz & San Benito Counties
Sensory Integration Education and Research Foundation
Sequoia Consulting Associates, LLC
Sequoia Riverlands Trust
Service Center for Independent Life
SEWA-AIFW
SF SCORE
Shadow Husky Rescue, INC.
Shining STAR Consulting
Sierra Nevada Alliance
Sierra Service Project
Silicon Valley Council of Nonprofits
Simbi Community Development
Siskiyou Land Trust
Sisters of St. Joseph Healthcare Foundation
SLO Village
Smile Unto Him
So Say We All
SoCal Grantmakers
Social I Collective
Somali Bantu Association of America
South Central Prevention Coalition
South Coast Sustainable
Spirit House Center for Attitudinal Healing
St John Boys Home, INC
St. Anthony High School
Stand! for Families Free of Violence
Streams in The Desert Foundation, INC.
Susan Hayes, Nonprofit & Communications Consulting
Sustainable Claremont
Sycamores
Taulama for Tongans
TDTD Foundation
The Animation Guild Foundation
The Arc of Butte County
The C.U.P. of Empowerment Coalition
The Center in Hollywood
The Child Abuse Prevention Center
The Forestry and Fire Recruitment Program
The Francisco Homes
The Grantsmanship Center
The Greenlining Institute
The Heart of Ida
The Helping Hand Worldwide
The Mom & Dad Project
The New Beginning Fellowship Center
The New Libya
The Nonprofit Partnership
The South Coast Chorale
The Unusual Suspects Theatre Company
The Village Project, INC.
The Wise Woman Ways
The Zelma Foundation for Women's Mental Wellness
Three Little Birds Agency
Thrive Meshack-Edison Rehabilitation Services
Tomales Town Hall
Trans Can Work
Tree Foundation of Kern
TreePeople
Tri Valley Haven
Tri-valley Air Quality Climate Alliance
Tri-valley Nonprofit Alliance
Trinity Foster Family Services of The Bay Area
Trippinz Care INC
Trout Unlimited
Tuleyome
Tuolumne River Trust
Turn-the Utility Reform Network
U 2 US Health, INC.
Ultimate Restoration Unlimited, INC.
United Latino Voices of Contra Costa County
United Ways of California
Vaad of Northern California
Valley Intercommunity Council
Valley Restart Shelter
Ventura Land Trust
Vic-valley Intercommunity Council
Village Community Resource Center
Village of Sonoma Valley
Vista Center for The Blind and Visually Impaired
Vital Arts
Walden Family Services
Walnut Avenue Family & Women's Center
Walter Munk Foundation for The Oceans
We are One United
We are Up
We Save the World
Welcoming Interim Shared Housing
West Valley Community Services
Westside Food Bank
Wild Sage Horse Rescue
Wings of Wisdom
With Open Arms INC.
Without Permission, INC.
Women's Economic Ventures
Women's Empowerment
World Be Well Organization
Yerba Buena Gardens Festival
You are More
Youth Transportation Organization
Yreka Community Farmers Market
Yuba Sutter Arts & Culture
Zen Caregiving Project

OPPOSITION: (Verified 9/30/24)

None received

ARGUMENTS IN SUPPORT: In support of the bill, the coalition of nonprofits listed above jointly write that in “October 2022, more than 550 nonprofit, philanthropic, and community leaders representing organizations headquartered in 41 counties wrote to Governor Newsom and other state leaders requesting improvements to state contracting processes. These changes would bolster the nonprofit sector, on which the state relies, and improve outcomes for the communities these nonprofits serve. Members of the driving force behind this letter – the California Coalition on Government Contracting – came together to share ideas for improving the ways nonprofits and the state work together to use taxpayer dollars equitably, fairly, and efficiently in service of our state’s health, human services, environmental, education, and other vital priorities.”

Specifically, “SB 1246 responds to the impact the pandemic has had on our communities, the need to address equity and inequality in access to state resources, and the imperative to support strong and varied community-based organizations to address increased need. SB 1246 levels the playing field for nonprofits regarding prompt payment on grants and contracts. Too many nonprofit reimbursement requests are delayed because there is no incentive to prioritize them, disadvantaging organizations that are working to support California communities and growing our economy.”

GOVERNOR'S VETO MESSAGE:

This bill would extend Prompt Payment Act requirements and penalties to all grants to nonprofit organizations and delete the $500,000 threshold on contracts or grants with nonprofits eligible for late payment penalties.

Nonprofit organizations play a critical role in supporting our state's communities, and I commend the author's continued effort to support these organizations. I also understand the goal of ensuring that our nonprofit partners are receiving payments in a timely manner; however, this broad expansion will have a significant impact across all state agencies that are currently working to decrease administrative costs.

I believe a more focused evaluation of this issue is warranted, to help ensure nonprofits are provided the financial stability they need while taking into account the unintended consequences when broad requirements are placed across the state's disparate range of programs. I encourage the author and stakeholders to continue working with my administration on an approach to advance the goals of this bill while considering the current fiscal environment and the totality of the impacts.

In partnership with the Legislature this year, my Administration has enacted a balanced budget that avoids deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on. It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget, such as this measure.

For these reasons, I cannot sign this bill.

ASSEMBLY FLOOR: 76-0, 8/28/24

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Zbur, Robert Rivas

NO VOTE RECORDED: Cervantes, Ortega, Wood

Prepared by: Brian Duke / G.O. / (916) 651-1530

10/9/24 15:44:21

**** END ****

 UNFINISHED BUSINESS  

Bill No: SB 1246

Author: Limón (D), et al.

Amended: 8/23/24

Vote: 21

SENATE GOVERNMENTAL ORG. COMMITTEE: 14-0, 4/9/24

AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Rubio, Seyarto, Smallwood-Cuevas

NO VOTE RECORDED: Ashby, Roth

SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/16/24

AYES: Caballero, Jones, Ashby, Becker, Bradford, Seyarto, Wahab

SENATE FLOOR: 37-0, 5/23/24

AYES: Alvarado-Gil, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

NO VOTE RECORDED: Allen, Archuleta, Newman

ASSEMBLY FLOOR: 76-0, 8/28/24 - See last page for vote

SUBJECT: California Prompt Payment Act: nonprofit organizations

SOURCE: Author

DIGEST:

This bill deletes, for the purposes of the California Prompt Payment Act (PPA), the definition of the term “grant” from the PPA and deletes the $500,000 exception in existing law and provides that only specified late payment penalties apply to a signed final agreement for a grant, as specified, or a grant by any state agency to a nonprofit organization.

Assembly Amendments

delete the definition of the term “grant” from the PPA and provide that only specified late payment penalties apply to a signed final agreement for a grant, as specified, or a grant by any state agency to a nonprofit organization.

ANALYSIS:

Existing law:

1. The PPA requires a state agency that awards a grant or that acquires property or services pursuant to a contract to make timely payments pursuant to the grant or contract.
2. Requires a state agency, to avoid late payment penalties, to make payment within 45 days of the receipt of an undisputed invoice, as specified.
3. Requires an exception from those penalty provisions if the grant or contract was awarded to a nonprofit organization in an amount less than $500,000.
4. Authorizes a state agency to dispute for reasonable cause an invoice, refund requests, or claim for Medi-Cal reimbursement, as specified.
5. Requires, on an annual basis, state agencies to provide the Department of General Services (DGS) with a report on late payment penalties that were paid by the state agency in accordance with the PPA during the preceding fiscal year.
6. Defines the term “grant” to mean a signed final agreement between any state agency and a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered for any state agency, or restoration activities performed by a resource conservation district.
7. Defines “nonprofit service organization” to mean a nonprofit entity that is organized to provide services to the public.

This bill:

1. Specifies that the PPA and the associated late payment penalties apply to a signed final agreement for any of the following types of grants:
   1. A grant by any state agency to a local government agency or organization authorized to accept grant funding for victim services or prevention programs administered by any state agency.
   2. A grant to a resource conservation district for restoration activities.
   3. A grant by any state agency to a nonprofit organization.
2. Deletes the term and definition of “grant” in the PPA.
3. Specifies that for the purposes of the PPA, “nonprofit organization” means an organization that qualifies as an exempt organization under Section 501(c)(3) of the Internal Revenue Code.
4. Deletes from the PPA the $500,000 exception from penalty provisions if the grant is awarded to a nonprofit organization, as specified.

Background

Author Statement. According to the author’s office, “California nonprofits are a bridge to our local communities, ensuring that critical services are accessible to residents while contributing to their regional, social, and economic growth. SB 1246 increases equity for nonprofits and ensures that nonprofits receive grants and contact payments from the state, in a timely manner, for the betterment of their communities.”

California’s Prompt Payment Act. Under the PPA, state agencies that acquire property or services pursuant to a contract with a business are required to make payment on the date required by the contract, or within 45 days of the state agency's receipt of an undisputed invoice. If this requirement is not met, state agencies must automatically calculate and pay appropriate late payment penalties as specified in Government Code Section 927, et seq. Late payments may occur for a variety of reasons, including administrative decisions relating to cash flow, bond sales, or delays in meeting conditions set forth in federal legislation.

Existing law specifies that state agencies pay applicable penalties, without requiring the claimant to submit an additional invoice for these amounts, whenever the state agency fails to submit a correct claim to the State Controller by the required payment approval date and payment is not issued within 45 calendar days from the state agency receipt of an undisputed invoice. Penalties paid by a state agency to a certified small business, nonprofit organization, nonprofit public benefit corporation, and a small business or nonprofit that provides services or equipment under Medi-Cal shall be calculated at a rate of 10% above the United State Prime Rate on June 30th of the prior year.

Additionally, the PPA provides that if the Controller fails to make payment within 15 calendar days of receipt of the claim from a state agency, and payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, the Controller shall pay applicable penalties to the claimant without requiring that the claimant submit an invoice for these amounts. If the claimant is a resource conservation district, a certified small business, a nonprofit organization, a nonprofit benefit corporation, or a small business or nonprofit organization that provides services or equipment under the Medi-Cal program, the controller must pay a penalty at a rate of 10% above the United State Prime Rate on June 30 of the prior fiscal year, as specified.

However, existing law specifies that for the late payment penalty provisions of the PPA described above, a nonprofit organization is only eligible to receive a penalty payment if the contract or grant is an amount less than $500,000. Since 2013, DGS has overseen the PPA to ensure that government agencies, in a timely manner, pay their contracts awarded to a certified small business or nonprofit. The PPA indicates that nonprofits are only eligible to receive a penalty payment if the grant or contract awarded is an amount less than $500,000.  Hence, the PPA only applies to a limited set of grants, excluding numerous nonprofits that provide essential services to California communities.

This bill deletes the definition of the term “grant” from the PPA and deletes the $500,000 exception in the act. Additionally, this bill provides that only specified late payment penalties apply to a signed final agreement for a grant, as specified, or a grant by any state agency to a nonprofit organization.

It’s Déjà Vu All Over Again. This bill is substantially similar to SB 557 (Limon, 2023) which sought to expand the definition of a grant for the purposes of the PPA requiring timely payments to include nonprofits by changing what is considered a grant and setting a specific monetary threshold of $250 or five percent of the invoiced amount for when a state agency can dispute a bill related to property or services delivered.

That bill unanimously passed both houses of the legislature, however Governor Newsom vetoed the bill, writing:

This bill would extend Prompt Payment Act requirements and penalties to all grants to nonprofit organizations and makes nonprofit organizations eligible for the higher penalty rate paid to small businesses, regardless of the size of the grant or contract. Additionally, for disputed invoices regarding the quantity of goods or services delivered to or accepted by the state, this bill would provide that the dispute suspends the requirement to pay within 45 days only if the disputed portion exceeds five percent of the invoiced amount or $250, whichever is less. This provision would cover all state contractors and grantees, not just nonprofit organizations.

I appreciate the role nonprofit organizations play in supporting our state's communities and economy, and I thank the author for the continued commitment to this critical sector. However, being able to suspend the 45-day requirement in a dispute over the quantity of goods or services provided is essential to the state's fiduciary responsibility and accountability as a distributor of public funds. Moreover, establishing a minimum discrepancy amount to suspend the 45-day requirement could pressure state employees to pay invoices with missing documentation to avoid having to report a late payment penalty.

My Administration remains committed to working with nonprofit organizations to support the sector's ability to deliver programs and support communities, while also balancing the need for accountability for state funds. I look forward to working with stakeholders on the implementation of related efforts, and I encourage the author and stakeholders to continue working with my administration on the overarching goals of this bill, while addressing accountability concerns.

Notably, SB 557 revised the threshold for discrepancies to be considered “reasonable cause” to include when there is a discrepancy of an amount greater than $250 or five percent of the invoiced amount, whichever is lesser. This bill does not specify a threshold for discrepancies between the invoice or claimed amount and the actual delivery of property or services or the state’s acceptance of those deliveries. Rather, this bill provides that if a state agency disputes an invoice received from a nonprofit organization claimant, the state agency must pay, within 45 calendar days from receipt of the invoice, the undisputed portion of the invoice if the disputed amount is equal to or less than $250 or five percent of the total amount of the invoice.

Related/Prior Legislation

SB 336 (Umberg, 2023) requires a state agency administering a grant program to reimburse a grantee’s indirect costs at one of three specified rates requested by the grantee in its state grant program application. (Pending on the Assembly Floor

SB 557 (Limon, 2023) would have expanded the definition of a grant for the purposes of the PPA requiring timely payments to include nonprofits by changing what is considered a grant and sets a specific monetary threshold of $250 or five percent of the invoiced amount (whichever is lower) for when a state agency can dispute a bill related to property or services delivered. (Vetoed by Governor Newsom)

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee, costs of approximately $170,000 each year for two years to DGS for an additional staff position to interpret and implement guidance to state agencies regarding PPA expansion (Service Revolving Fund). Workload includes updating regulations and the State Contracting Manual, as well as training for state procurement professionals. Additionally, costs of $85,000 annually to DGS for additional staff workload to calculate disputed contract amounts to determine whether timely payment of the undisputed amount is due, as well as to work with those contractors to resolve errors or issues. DGS notes that these latter resources would not be required if the calculation threshold is removed from the bill.

Costs of an unknown, but potentially significant, amount across state agencies to the extent additional penalty payments are incurred by state agencies, as this bill expands the scope of grants covered by the PPA generally and the scope of contracts and grants eligible for the penalty payment, including entities entitled to the higher penalty rate (General Fund [GF] or special funds). Or, in attempt to avoid penalties, state agencies may incur potentially significant administrative costs to ensure timely payment to those contracts and grants.

SUPPORT: (Verified 8/28/24)

5 Stones Open Door
805 Undocufund
A Broader Living Experience Dba Able
Abrazar, INC.
Access Impact
Active San Gabriel Valley
Acts Senior Assistance
Afghan Culture and Art
African American Network of Kern County
Agape Community Christian Church
Akoma Unity Center
Alan Hu Foundation
Alchemist CDC
All for Kids
Almaden Valley Counseling Service
Alpine Outdoor Recreation Association
Amanda's Adaptive Martial Arts
American Academy of Pediatrics - Orange County Chapter
American Patriot Music Project
Anchored Life Recovery Services LLC
Api Equality-la
APRIL Parker Foundation
Aresis Ensemble (city Garage)
Arts Orange County
Asian Pacific American Community Center
Asociacion Cultural Los Angeles
Asociacion De Emprendedor@s
Aspiranet
Association for Environmental and Outdoor Education
Association of California Symphony Orchestras
Axis Advocacy
Banj Health Center
Barrio Station
Bike East Bay
Boo2bullying
Boys & Girls Club of Laguna Beach
Boys & Girls Clubs of Fresno County
Boys and Girls Club of Merced
Breathe Southern California
Brighter Funding
Brothers on The Rise
Bruised But Not Broken Family Resource Center
Building Resilient Communities
Butte Environmental Council
C.d. Jackson and Associates
CA Arts Advocates
Calaveras Healthy Impact Product Solutions
Calcapa
California Association of Nonprofits
California Bicycle Coalition
California Black Health Network
California Coalition for Community Investment
California Coalition for Community Investment
California Coalition for Rural Housing
California Communiity Builders
California Community Economic Development Association
California Community Living Network
California Council of Community Behavioral Health Agencies
California Family Resource Association
California Health Collaborative
California Partnership to End Domestic Violence
California Releaf
Calm
Calnonprofits
Cameo - California Association for Micro Enterprise Opportunity
Cameo Network
Carpinteria Children's Project
Catholic Big Brothers Big Sisters of Los Angeles County
Catholic Charities of Santa Clara County
Center for Accessible Technology
Center for Leadership, Equity, and Research

Center for Living and Learning
Center for Nonprofit Management
Center for Urban Excellence
Chance Theater
Chicostart
Child Abuse Prevention Center
Child Abuse Prevention Center and Its Affiliates Safe Kids California, Prevent Child Abuse California and The California Family Resource Association; the
Children's Fund
Children's Health Initiative for Medication Education
Children's Institute
Chrysalis
City Serve of The Tri Valley
Clarke Historical Museum
Cncda Foundation
Coastal
Coastal Nonprofit Consulting
Collective of Thinkers INC.
Communitiy Water Center
Community Alliance With Family Farmers
Community Bridges
Community Build, INC.
Community Homeless Solutions
Community Investment Strategies
Community Leaders Coalition
Community Legal Services in East Palo Alto
Community Nature Connection
Community Now
Community Resource Project
Community Water Center
Compasspoint
Counseling Options and Parent Education Support Center, INC.
Crenshaw Health Partners INC
Crossword Church
Crystal Clear Biz Ops
Culture Scholar Corporation
Davis Media Access
Desert Sanctuary INC.
Diamond Collective
Divine Truth Unity Fellowship Church Dba Rainbow Pride Youth Alliance
Dolores Huerta Foundation
Donna Sternberg & Dancers
Doves of Big Bear Valley, INC.
Dovetail Learning
Down Syndrome Connection of The Bay Area
Duc Learning Center
Earth Discovery Institute
East Bay Sanctuary Covenant
East Contra Costa Community Alliance
Eastmont Community Center
Ebony Repertory Theatre
Education Francaise Bay Area
El Concilio of Stockton
El Nido Family Centers
El Sol Neighborhood Educational Center
Elderhelp of San Diego
Elkhorn Slough Foundation
Episcopal Community Services
Equality California
Exceptional Parents Unlimited
Exploring New Horizons Outdoor Schools
Eyeshine
Families Achieving Success
Families in Transition of Santa Cruz County, INC.
Family Bridges, INC
Family Service Association
Family Violence Appellate Project
Family Works
Fasd Network of Southern California
Federacion Clubes Michocanos Orange County
Filipino American Service Group, INC.
First Presbyterian Church of Hayward
Food Finders, INC.
Foodcycle
Formerly With Sos Community Counseling
Foundation for Filipina Women's Network
Fresno Building Healthy Communities
Fresno State Humanities
Friends of Harbors, Beaches and Parks
Friends of International Friendship Park, INC.
Friends Outside
Gateway Center of Monterey County
Ghost Pine Native Plant Nursery
Giving 365
Global Refugee Awareness Healing Center
Grand Vision Foundation
Grantland L Johnson Institute of Leadership Development
Grateful Heart Consulting
Green Energy Solutions Holdings LLC
Greenhouse Family Services
Handson Central California
Harc, INC.
Healthforce Partners Northern San Joaquin Valley
Healthright 360
Healthy Kids Happy Faces
Heart of Compassion Distribution
Heartbeat of Champions Foundation
Help Is Hope Foundation
Hidden Truths Project
Hillsides
His Daughters House
House of Ruth, INC.
Huckleberry Youth Programs
Iact
Idyllwild Forest Health Project
Inland Empire Community Collaborative
Inland Empire Latino Lawyers Association
Inland Southern California United Way
Innavision Preparation Foundation
Inner City Bliss
Interface Children and Family Services
Interfaith Housing, INC.
International Trade Education Programs, INC Dba Exp
Iron Sharpens Iron Nonprofit Organization
Isaac Innovative Space for Asian American Christianity
Ives Torres Foundation
Jewish Family Service LA
Joslyn Center for Seniors
Junior Achievement of Northern California
Kalaya's Destiny
Kamali'i Foster Family Agency, INC.
Keep Coyote Creek Beautiful
Kitka, INC.
Korean American Federation of Los Angeles
Korean American Special Education Center
Koreatown Youth + Community Center
Koreatown Youth and Community Center
LA Red Network of Family Child Care Providers
Lake Family Resource Center
Lake Links, INC
Lakeside Historical Society
Latino Outdoors
Lavendercomputing
Lazarex Cancer Foundation
League of California Community Foundations
Leap
Learning Rights Law Center
Learningtech.org
Legacy LA
Let Spirit Lead, INC.
Lift Love Family Services
Linda Civitello Consulting
Little Brothers-friends of The Elderly- Bay Area
Little Manila Rising
Local Clean Energy Alliance
Los Angeles Area Chamber of Commerce
Los Angeles Inner City Culturalcenter
Los Angeles Metropolitan Churches
Los Angeles Neighborhood Initiative
Lotus Medical Career College
Mack Sacred Trust
Madera Coalition for Community Justice
Making Hope Happen Foundation
Mandate Project Impact, INC.
Mariachi Scholarship Foundation
Marin City Community Development Corporation
Maternal and Child Health Access
Mckinleyville Family Resource Center
Meadowview Urban Tree Project
Meals on Wheels - Santa Maria Valley
Meals on Wheels California
Meals on Wheels California, INC.
Meals That Connect
Media Alliance
Mend-meet Each Need With Dignity
Michelle's Place
Michelle's Place Cancer Resource Center
Microenterprise Collaborative of Inland Southern California
Mission Hope
Mountain Homeless Coalition
Nami Tri-valley
National Alliance on Student Loan Debt
National Harm Reduction Coalition
National High School Career Day Network
National Latina Business Women Association-ie Institute
National Small Business Advocacy Council
National Treasure Mustang Rescue and Sanctuary
Nature for All
Nehemiah Charitable Fund
Nevada City Broadcast Group
Nextgen Dreambuilders
No Drugs America Association, INC
Nonprofit Connection Santa Cruz County
Nonprofit Finance Fund
Nonprofit Growth Advisors
Northern California Regional Land Trust
Northern Santa Barbara County United Way
Ontrack Program Resources, INC.
Open Medicine Foundation
Our Community Works
Our Hands of Love Corporation
Oxnard Performing Arts Center Corporation
Pacific Asian Counseling Services
Pacific Coast Fish, Wildlife and Wetlands Restoration Association
Paddle for Peace
Parentz Work
Parkview Legacy Foundation
Partners for Change
Pasadena Village
Pastor Mace INC.
Path
Pathpoint
Pathway Family Services, INC.
Pcri
Peninsula Family Service
Peruvian Community Oc
Philanthropy California
Playful People Productions
Playzeum Yuba Sutter
Pleasantview Industries
Pogo Park
Power House United INC
Praxis Health Empowerment
Primary Care At Home, INC.
Pro Youth and Families
Program for Torture Victims
Public Counsel
Public Works Improvisational Theatre Fndn., INC
Raizes Collective
Ralls Consulting Services
Rccg-jesus House Silicon Valley
Redf
Redwood Community Action Agency
Refugee Jumpstart Coaching
Repeat Reuse
Rescape California
Riverside Medical Clinic Charitable Foundation
Rose Bowl Aquatics Center
Rural Communities Resource Center
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Rural Community Assistance Corporation
Ryse Center
Sacramento Splash
Safer West County
Sailing Sorcery - Project Nxt
Salvadoran American Leadership and Educational Fund
San Bernardino Fatherhood
San Francisco Public Health Foundation
Sanchez Art Center
Santa Barbara Botanic Garden
Santa Barbara Foundation
Santa Barbara Student Housing Cooperative
Santa Cruz Volunteer Center
Save Our Shores
Say San Diego (social Advocates for Youth
Self-help Enterprises
Senior Coastsiders
Senior Services Coalition of Alameda County
Seniors Council of Santa Cruz & San Benito Counties
Sensory Integration Education and Research Foundationn
Sequoia Consulting Associates, LLC
Sequoia Riverlands Trust
Service Center for Independent Life
Sewa-aifw
Sf Score
Shadow Husky Rescue, INC.
Shining STAR Consulting
Sierra Nevada Alliance
Sierra Service Project
Silicon Valley Council of Nonprofits
Simbi Community Development
Siskiyou Land Trust
Sisters of St. Joseph Healthcare Foundation
Slo Village
Smile Unto Him
So Say We All
Socal Grantmakers
Social I Collective
Somali Bantu Association of America
South Central Prevention Coalition
South Coast Sustainable
Spirit House Center for Attitudinal Healing
St John Boys Home, INC
St. Anthony High School
Stand! for Families Free of Violence
Streams in The Desert Foundation, INC.
Susan Hayes, Nonprofit & Communications Consulting
Sustainable Claremont
Sycamores
Taulama for Tongans
Tdtd Foundation
The Animation Guild Foundation
The Arc of Butte County
The C.u.p. of Empowerment Coalition
The Center in Hollywood
The Child Abuse Prevention Center
The Forestry and Fire Recruitment Program
The Francisco Homes
The Grantsmanship Center
The Greenlining Institute
The Heart of Ida
The Helping Hand Worldwide
The Mom & Dad Project
The New Beginning Fellowship Center
The New Libya
The Nonprofit Partnership
The South Coast Chorale
The Unusual Suspects Theatre Company
The Village Project, INC.
The Wise Woman Ways
The Zelma Foundation for Women's Mental Wellness
Three Little Birds Agency
Thrive Meshack-edison Rehabilitation Services
Tomales Town Hall
Trans Can Work
Tree Foundation of Kern
Treepeople
Tri Valley Haven
Tri-valley Air Quality Climate Alliance
Tri-valley Nonprofit Alliance
Trinity Foster Family Services of The Bay Area
Trippinz Care INC
Trout Unlimited
Tuleyome
Tuolumne River Trust
Turn-the Utility Reform Network
U 2 US Health, INC.
Ultimate Restoration Unlimited, Uru INC.
United Latino Voices of Contra Costa County
United Ways of California
Vaad of Northern California
Valley Intercommunity Council
Valley Restart Shelter
Ventura Land Trust
Vic-valley Intercommunity Council
Village Community Resource Center
Village of Sonoma Valley
Vista Center for The Blind and Visually Impaired
Vital Arts
Walden Family Services
Walnut Avenue Family & Women's Center
Walter Munk Foundation for The Oceans
We are One United
We are Up
We Save the World
Welcoming Interim Shared Housing
West Valley Community Services
Westside Food Bank
Wild Sage Horse Rescue
Wings of Wisdom
With Open Arms INC.
Without Permission, INC.
Women's Economic Ventures
Women's Empowerment
World Be Well Organization
Yerba Buena Gardens Festival
You are More
Youth Transportation Organization
Yreka Community Farmers Market
Yuba Sutter Arts & Culture
Zen Caregiving Project