Requires the controller to adopt fiscal rules requiring a state agency to award a nonprofit a retainer when entering into a contract; clarifies that a nonprofits is not required to complete any portion of the contract prior to receiving the retainer; permits nonprofits to spend a retainer within 1 year of receipt; permits nonprofits to submit a notice of an amount due; clarifies the retainer is equal to at least 35% of the value of a grant award or at least 35% of the amount to be disbursed in the first year of a contract; clarifies the retained may only be expended on expenses incurred in connection with the relevant grant or contract; requires each nonprofit receiving disbursements from the state to provide the ethnicity of the nonprofit’s leadership, business structure, and whether the nonprofit has received previous disbursements.