Existing law contains numerous provisions authorizing state agencies to award grants or contracts to nonprofit organizations to carry out various services and programs. Existing law authorizes a state agency that administers a grant program or contract to advance funds to a private nonprofit organization to which it has awarded a grant or contract, subject to certain limitations and requirements, as specified.

This bill would create the Office of Nonprofit Empowerment with the primary responsibility of overseeing and coordinating state policy in support of California’s nonprofit organizations. The bill would specify various duties and functions of the office, including providing guidance, resources, and technical assistance to nonprofit organizations on procurement and grantmaking laws, regulations, and best practices. The bill would also require the office to develop and administer training and materials to state entities on advance payment and other strategies to reduce hurdles for nonprofit organizations to access state funding and implement state projects, as specified. The bill would authorize the office to update the State Administrative Manual and State Contracting Manual, as specified. The bill would establish the office within an unspecified agency, would place the office under the control of a director who would be appointed by the Governor, and would require the director to hire staff to assist in the fulfillment of its duties and responsibilities. The bill would also require the office to submit a report to the Governor and the Legislature, on or before March 1, 2027, on ways to improve how nonprofits and the state partner, as specified. The bill would include related legislative findings and declarations.

This bill would appropriate unspecified amounts from the General Fund to an unspecified agency for the costs of establishing the Office of Nonprofit Empowerment.

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.