Bill H.233 aims to enhance the process for State-funded grants, particularly for nonprofit organizations. It mandates the Secretary of Administration to update Administrative Bulletin 5 by July 1, 2025, to establish a uniform formula and approval process that allows nonprofits to utilize an indirect rate higher than the standard de minimis rate. Additionally, the bill requires State agencies to execute grant agreements within 30 days of fund appropriation or award notification and to ensure prompt payment of grant funds within 30 days of receiving a valid payment request from grantees. If agencies fail to meet these obligations, they must provide written explanations to the Agency of Administration.

Furthermore, the bill establishes a Working Group on State Grant Processes to assess current grant awarding procedures and recommend improvements. This group will consist of various stakeholders, including representatives from nonprofit organizations and state officials, and will meet at least eight times before submitting a report with recommendations by September 1, 2026. The act is set to take effect on July 1, 2025, and includes provisions for compensation and reimbursement for group members.