AB 880: State government grants and contracts: payment of claims and grantees’ indirect costs.

The bill aims to improve the state's prompt payment practices for grants and contracts. It requires state agencies to make timely payments to grantees and to pay indirect costs, which are costs not directly related to the service or equipment provided. The bill also clarifies the definition of a "grant" to include agreements with nonprofit organizations. Additionally, it removes an exception for payments under $500,000 and instead defines a nonprofit organization as one that qualifies as an exempt organization under the Internal Revenue Code. The bill also allows state agencies to dispute invoices and claims for Medi-Cal reimbursement only if there is a significant discrepancy between the invoice or claimed amount and the actual delivery of property or services.