Grant fund advances pilot

AN ACT Relating to creating a pilot program to advance funds to 1
nonprofits to support grant performance; amending RCW 39.34.150; 2
adding a new section to chapter 43.330 RCW; and providing an 3
expiration date. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 43.330 6
RCW to read as follows: 7
(1) The department is tasked with generating greater local 8
capacity. To achieve this objective, the department may advance funds 9
to public benefit nonprofit corporations, as defined in RCW 10
24.03A.245, that have received grants from the department. This 11
advance funding pilot program will provide advance funds, as 12
described in this section, to eligible grant recipients who have 13
demonstrated the need for advance funding in order to perform the 14
work required by the department grant. 15
(2) The department shall develop uniform equity-driven procedures 16
for the demonstration of need. The department shall consult with 17
external partners, including impacted communities, to develop the 18
procedures. 19
(3) The department shall develop eligibility criteria for advance 20
fund applicants. The department shall prioritize those applicants 21
H-1169.1
HOUSE BILL 1866
State of Washington 69th Legislature 2025 Regular Session
By Representatives Cortes, Timmons, Reed, Parshley, Taylor, Nance,
Zahn, Simmons, Macri, Street, Obras, and Fosse
Read first time 02/06/25. Referred to Committee on Appropriations.
p. 1 HB 1866
with an average annual budget less than $5,000,000. The eligibility 1
criteria must include: 2
(a) The recipient must have been awarded a department grant 3
within six months; 4
(b) The recipient must have performed satisfactorily under any 5
grant received from the department within the preceding 10 years;6
(c) The recipient must be a public benefit nonprofit corporation, 7
as defined in RCW 24.03A.245; 8
(d) The recipient must have been in the business for which the 9
grant was received for a minimum of three years; and10
(e) The grant received from the department must be to protect 11
public health, protect public safety, promote public welfare, or 12
provide a benefit to the state. 13
(4) Advance fund payments are to be one time and limited to no 14
more than 25 percent of the grant or $100,000, whichever is less. The 15
amount of the advance fund payment must be deducted from the total 16
grant awarded to the recipient. 17
(5) An enforceable contract that protects the interests of the 18
state must be fully executed before any advance fund payments are 19
made. The advance fund recipient shall use the awarded funds only for 20
the purpose stated in the contract. 21
(6) By September 1, 2027, the department shall submit a report to 22
the relevant committees of the legislature and the governor in 23
compliance with RCW 43.01.036 that includes: 24
(a) An evaluation of the advance funding pilot program that 25
includes outcome data for participants; 26
(b) Recommendation whether to continue the advance funding 27
program; and 28
(c) Recommendations for improving or expanding the advance 29
funding program. 30
(7) This section expires June 30, 2028. 31
Sec. 2. RCW 39.34.150 and 2011 c 336 s 805 are each amended to 32
read as follows: 33
(1) State agencies are authorized to advance funds to defray 34
charges for materials to be furnished or services to be rendered by 35
other state agencies. Such advances shall be made only upon the 36
approval of the director of financial management, or his or her order 37
made pursuant to an appropriate regulation requiring advances in 38
certain cases. An advance shall be made from the fund or 39
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appropriation available for the procuring of such services or 1
materials, to the state agency which is to perform the services or 2
furnish the materials, in an amount no greater than the estimated 3
charges therefor. 4
(2) Until June 30, 2028, the department of commerce may advance 5
funds to public benefit nonprofit corporations, as defined in RCW 6
24.03A.245, pursuant to an approved contract under section 1 of this 7
act.8
NEW SECTION. Sec. 3. If any provision of this act or its 9
application to any person or circumstance is held invalid, the 10
remainder of the act or the application of the provision to other 11
persons or circumstances is not affected.12
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p. 3 HB 1866