CA AB885

Establishes the California Nonprofit Fairness in Contracting Act, requiring state and local agencies to establish a preference for nonprofit contracts lasting longer than one year when using state funds.

Requires multi-year nonprofit contracts to include automatic cost of living increases and provisions for prompt, expedited renewal when performance objectives are met.

Mandates covered contracts provide full cost of service delivery, including state minimum wage, competitive salaries, and annual cost of living increases aligned with federal reimbursement policies under 2 CFR Part 200.

Applies to contracts for goods or services by state agencies or local agencies using state funds, including grants.

Provides that if the Commission on State Mandates finds the act imposes state-mandated costs, reimbursement shall be made pursuant to Government Code Part 7.