California Code, Welfare and Institutions Code - WIC § 18904.3

(a) If a private nonprofit organization, public postsecondary educational institution, or other state or local agency secures funds for CalFresh outreach activities that are allowable for partial federal reimbursement, and complies with contracting requirements established in state and federal law, the department shall, subject to approval of the state's outreach plan by the United States Department of Agriculture, act as the state entity for receipt of federal reimbursement on behalf of the organization, institution, or agency.

(b) Any reduction in federal funding to the state that is due to the result of any audit of CalFresh outreach contracts or activities shall be applied to the appropriate local government that served as the contracting agency for CalFresh outreach activities.