California AB880 regulates payment of claims and indirect costs for state grants and contracts.

California AB880 establishes rules for payment of claims and indirect costs for state grants and contracts. It mandates that state agencies reimburse grantees' indirect costs at specific rates, with a cap of 35 percent of the total grant award. If a state agency fails to submit a correct claim to the Controller by the required date and payment is not issued within 45 days from the state agency receipt of an undisputed invoice, the Controller must pay penalties. For certain claimants, the penalty is 10 percent above the United States Prime Rate on June 30 of the prior fiscal year.

California AB880 regulates payment of claims and indirect costs for state grants and contracts.

California AB880 establishes rules for payment of claims and indirect costs for state grants and contracts. It mandates that state agencies reimburse grantees' indirect costs at specific rates, with a cap of 35 percent of the total grant award. If a state agency fails to submit a correct claim to the Controller by the required date and payment is not issued within 45 days from the state agency receipt of an undisputed invoice, the Controller must pay penalties. For certain claimants, the penalty is 10 percent above the United States Prime Rate on June 30 of the prior fiscal year.