Committee advances bill requiring transparency when state agencies capture administrative fees on passed‑through grants

Summary

House Bill 223 was favorably recommended out of committee. The bill requires transparency and optional reporting when state agencies capture administrative fees from grants that pass through the agency to nonprofit or private recipients; it does not prohibit such fees but makes justification available on request.

The Senate Government Operations and Political Subdivisions Standing Committee favorably recommended House Bill 223, a proposal that aims to increase transparency when state agencies retain administrative fees from grants that are passed through to nonprofit or private recipients.

Representative Daley Provost, the bill sponsor, said the statute responds to concerns from appropriations subcommittees where nonprofits request funding and the state agency that disburses the funds sometimes captures an administrative fee; the bill requires agencies to provide justification for such fees if requested by the grantee or requester.

The sponsor said the provision is not intended to ban pass‑through administrative charges when they are appropriate, but to provide visibility when grantees and appropriators request that information. No public testimony was offered during the committee’s public‑comment period on this bill.

Senator Blum moved to favorably recommend HB223; the motion carried on a unanimous voice vote. The bill now proceeds to the next legislative stage with a committee recommendation.