| Momentum Bucket | Early Stage |
| Legal Title | AN ACT Relating to creating a pilot program to advance funds to nonprofits to support grant performance; |
| Bill Description | Creating a pilot program to advance funds to nonprofits to support grant performance. |
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What this bill does
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Creates a temporary advance funding pilot program by adding a new section to chapter 43.330 RCW that allows "the department" to make one-time advance payments to public benefit nonprofit corporations that have been awarded department grants. The department may advance funds to eligible recipients who demonstrate need to perform grant work, must develop uniform equity-driven procedures in consultation with external partners and impacted communities, and must prioritize applicants with average annual budgets under $5,000,000. Eligibility requirements include having been awarded a department grant within six months, satisfactory grant performance within the previous 10 years, being a public benefit nonprofit as defined in RCW 24.03A.245, and having operated in the grant business for at least three years. Advances are limited to the lesser of 25 percent of the grant or $100,000, are deducted from the total grant, require a fully executed enforceable contract stating permitted uses, and the department must report program evaluation and recommendations to the legislature and governor by September 1, 2027. The new section and the pilot authority expire June 30, 2028.
Amends RCW 39.34.150 to reaffirm that state agencies may advance funds to other state agencies for materials or services only with approval of the Director of Financial Management and to allow, until June 30, 2028, the Department of Commerce to make advances to public benefit nonprofit corporations under the pilot. Includes a severability clause. This is a procedural and administrative legal change (a temporary pilot program and an amendment to interagency advance authority), not a criminal or penalty change. The text does not explicitly name which department in the new section, does not reproduce the statutory definition in RCW 24.03A.245, and does not specify funding source, appropriation details, or the full content of the required equity-driven procedures.
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Why it matters
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If enacted, certain public benefit nonprofit corporations that recently won grants from the department will be able to get a one-time upfront payment to cover early project costs — up to 25% of their award or $100,000, whichever is less — which the department will subtract from the grant when it pays the remainder. Smaller organizations (average annual budgets under $5 million) and groups that meet the eligibility checks (including recent award, satisfactory past performance, and at least three years in the same work) are likely to benefit most because the advance can reduce the need to use reserves or seek short-term loans to start grant-funded work.
The department must write equity-driven rules, consult impacted communities, execute enforceable contracts before paying advances, and report back by September 1, 2027; the pilot authority ends June 30, 2028. Practically, the state takes on some front‑funding risk but limits exposure with contract protections and caps on advances, while the department will have extra administrative work to set and run the pilot. Important details are missing here — notably which department is the named administrator in the new section, where the advance money comes from, and exactly how need will be demonstrated and prioritized — so how easily and widely this will be used is uncertain.
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| Official Documents | View Full Bill Text |
| Date Introduced | 02/06/2025 |
| Originating Chamber | House |
| Biennium | 2025-26 |
| Total Campaign Dollars Backing Bill | $3,255,687.00 |
| COMMERCE, DEPARTMENT OF |
| NONPROFIT ORGANIZATIONS |