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Committee hears wide-ranging testimony in support of A4692, a bill to streamline state contracting with nonprofits
Summary
Assembly members heard extended testimony from nonprofit leaders, trade groups and community advocates supporting A4692, which would centralize common documents, provide timely payments, index grants to inflation and increase an allowable de minimis indirect cost rate to 15 percent; committee discussion concluded without a vote (discussion only).
The Assembly committee held an extended, discussion-only hearing on A4692, a bill sponsored by Assemblywoman Yvonne Lopez that seeks to reform how the state contracts with nonprofit organizations. Dozens of nonprofit leaders, trade groups and community organizations testified in support, describing repeated administrative burdens, delayed payments and funding shortfalls that they said undermine service delivery.
What the bill would do: Witnesses described several key provisions in A4692 as drafted: require a central repository for frequently filed documents; provide a de minimis indirect cost rate of 15 percent for grants and contracts; require periodic inflation adjustments (CPI indexing) for awards; and create incentives for timely payments and options for advanced or up-front payments in some programs.
Voices at the hearing: Linda Zippo, president and CEO of the…
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