CA SB1069

Requires the Department of General Services to establish a state standard negotiated cost agreement by July 1, 2023, for state grants created after July 1, 2023, to grantees without existing federal negotiated indirect cost rate agreements.

Mandates that state grant programs created on or after January 1, 2023, use the same terms as contained in grantees' existing federally approved negotiated indirect cost rate agreements and cost allocation policies.

Authorizes nonprofit grantees without federal or state negotiated cost agreements to be compensated for indirect costs using one of three methods: a de minimis rate of 10 percent of direct costs, negotiating a new percentage with the agency, or using the same percentage negotiated with the agency within the past two years.

Applies to the extent possible and permitted by federal law, ensuring nonprofit organizations are fairly compensated for the full cost of providing services funded by state grants.