SB 336: State grant programs: negotiated indirect cost rates.

Existing law establishes the Department of General Services in the Government Operations Agency for purposes of providing centralized services of state government. Existing law establishes various state grant programs. Existing federal law provides uniform administrative requirements, cost principles, and audit requirements for federal grant awards to nonfederal entities and provides guidelines for determining direct and indirect costs, as defined, charged to federal awards.

This bill would require, unless prohibited by any other state or federal law, a state agency administering a grant program to reimburse, when awarding a grant, the grantees indirect costs, as defined, at one of specified rates as requested by the grantee, as defined, if the grantee disclosed the requested rate amount in their grant program application. The bill would require distribution of indirect cost pools, as specified, if established. The bill would also authorize, unless prohibited by any other state or federal law, any applicant for a grant administered by a state agency to opt, when applying for the grant, to be reimbursed for its indirect costs at one of specified rates, if the applicant is selected as a grantee and if the applicant discloses the requested rate amount in their grant program application. The bill would make these provisions applicable to any grant program administered by a state agency, regardless of whether the funding source of the grant is state funds, federal funds, or a combination thereof.