(a)  Notwithstanding any other provision of law, the department shall, to the extent that funds are available, provide to a grantee semiannual prospective payments during a 12-month fiscal year.

(b)  An amount equal to not more than 50 percent of the total grant shall be processed for payment to the grantee following the enactment of the annual Budget Act, and upon formal execution of the grant by the state. The processing by the department of the grantee’s first semiannual prospective payment shall also be contingent upon both of the following:

(1)  A written request for payment from the grantee.

(2)  Except as provided in this paragraph, the third quarter progress budget and expenditure report. If the grantee is currently under the first fiscal year of a three-year multiple grant, this requirement shall not apply as a condition for the grantee’s first semiannual prospective payment, unless the grantee is a continuing grantee from the prior three-year multiple year of the grant. If the grantee is currently under the second or third fiscal year of a three-year, multiple-year grant, the department’s processing of the first semiannual prospective payment for the current grant year shall be contingent upon the grantee’s timely and accurate submission, and the department’s approval of, the third quarter progress and budget expenditure report from the previous grant year.

(c)  Based upon the grantee’s timely and accurate submission of the first quarterly progress and budget expenditure report from the grant year, and satisfactory performance under the grant, the processing of a second semiannual prospective payment of not more than 40 percent of the total grant shall be processed by the department for payment to a grantee no earlier than January 1 during the term of the grant year. The processing of the grantee’s second semiannual prospective payment by the department shall be contingent upon all of the following:

(1)  A written request for payment from the grantee.

(2)  The grantee’s timely and accurate submission, and the department’s approval, of the first quarterly progress and budget expenditure report.

(3)  If the grantee is currently under the second or third fiscal year of a three-year, multiple-year grant, the grantee’s timely and accurate submission, and the department’s approval, of the fourth quarterly progress and budget expenditure report, and the annual reconciliation report, from the prior year.

(d)  An amount equal to 10 percent of the total grant award shall be retained by the department, pending satisfactory submission by the grantee of all quarterly progress and budget expenditure reports and an annual reconciliation report for the grant year. Payment of the withheld 10 percent shall be processed by the department for payment to the grantee upon the grantee’s satisfactory completion and submission, and the department’s approval, of these reports.

(Added by Stats. 1999, Ch. 744, Sec. 3. Effective October 10, 1999. Operative July 1, 2000, by Sec. 10 of Ch. 744.)