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General Assembly Committee Bill No. 5579
January Session, 2025
LCO No. 4222
Referred to Committee on HUMAN SERVICES
Introduced by:
(HS)
AN ACT CONCERNING THE ESTABLISHMENT OF A HISPANIC AND
COMMUNITIES OF COLOR NONPROFIT GROWTH AND
STABILIZATION FUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2025) (a) For purposes of this 1
section, (1) "eligible community-based organization" means an 2
organization that (A) has tax-exempt status under Section 501(c)(3) of 3
the Internal Revenue Code of 1986, or any subsequent corresponding 4
internal revenue code of the United States, as amended from time to 5
time, (B) is an incorporated nonprofit organization operating for not less 6
than three consecutive years prior to July 1, 2025, (C) is based in the state 7
and is a direct provider of human services, (D) serves a population that 8
is comprised of fifty-one per cent or more Hispanic persons or 9
communities of color, (E) (i) is led by a chief executive officer who is 10
Hispanic, African-American or Asian Pacific-American, and (ii) is 11
governed by a board with a majority of members who are Hispanic, 12
African-American or Asian Pacific-American, and (F) has an annual 13
operating budget of at least one hundred fifty thousand dollars; (2) 14
"communities of color" means communities comprised of persons 15
whose racial or ethnic background is nonwhite Hispanic, African-16
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American or Asian Pacific-American; (3) "culturally competent" means 17
the ability to effectively deliver services that meet the social, cultural, 18
and linguistic needs of the recipient; and (4) "language accessible" 19
means services delivered in the primary language of the recipient. 20
(b) There is established a fund to be known as the "Hispanic and 21
Communities of Color Nonprofit Stabilization and Growth Fund". The 22
fund, within available appropriations, shall contain (1) moneys from the 23
General Fund traditionally appropriated to the Department of Social 24
Services for human resources development contracts serving Hispanic 25
persons and communities of color, and (2) any moneys required by law 26
to be deposited into the fund. The fund shall be used to build the 27
capacity of eligible community-based organizations to provide services 28
by helping such organizations improve operational efficiencies through 29
performance-based metrics and the adoption of strategies for long-term 30
fiscal sustainability. Any balance remaining in the fund at the end of any 31
fiscal year shall be carried forward in the fund for the fiscal year next 32
succeeding. The fund may be used to make grants-in-aid authorized 33
under subsections (e) and (f) of this section and for expenses related to 34
the administration of the fund authorized under subsections (c) and (d) 35
of this section. 36
(c) The Commissioner of Social Services may contract with a 37
nonprofit organization to administer the fund, provided such 38
organization has (1) not less than fifteen years of experience 39
coordinating advocacy, service and outreach efforts for Hispanic 40
charitable organizations that support Hispanic persons, and (2) a 41
proven track record of establishing networks with non-Hispanic 42
organizations that provide services to communities of color. The 43
commissioner may give preference to an organization with experience 44
successfully administering a similar fund. 45
(d) In contracting with a nonprofit organization to administer the 46
fund, the commissioner shall require such organization to: (1) Establish 47
a competitive procurement process through annual requests for 48
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proposals to eligible community-based organizations, (2) establish a 49
results-based contract evaluation system that includes goals that eligible 50
community-based organizations shall meet in order to be considered for 51
contract renewal, and (3) meet goals established by the commissioner 52
for successful administration of the fund, including, but not limited to, 53
annual reporting to the commissioner on fund expenditures and 54
complying with limitations set by the commissioner on administrative 55
expenses. Requests for proposals issued by the nonprofit organization 56
administering the fund shall state that preference shall be given to 57
eligible community-based organizations that (A) satisfy both conditions 58
described in subparagraph (E) of subdivision (1) of subsection (a) of this 59
section and have annual budgets not exceeding one million dollars, and 60
(B) offer culturally competent, language accessible services. 61
(e) The fund shall be used to provide grants to eligible community-62
based organizations to support capacity building, training and technical 63
assistance opportunities in the following areas: (1) Financial 64
management, including, but not limited to, financial planning, budget 65
development, fiscal monitoring and cash flow analysis, (2) board 66
development, including, but not limited to, establishing board 67
committees and a fund-raising board and conducting professional 68
board meetings, (3) fund development, including, but not limited to, gift 69
solicitation and event planning, (4) nonprofit management and 70
leadership training, (5) information technology, (6) collaborations and 71
merger planning, and (7) results-oriented outcome training, including 72
development of progress metrics and performance-tracking tools. 73
(f) An allocation panel of at least seven members, including, but not 74
limited to, representatives from the Department of Social Services, the 75
nonprofit organization chosen by the commissioner to administer the 76
fund and at least two members of the communities to be served by the 77
grant proposal, shall determine which community-based organizations 78
are eligible for a grant. The executive director of the Commission on 79
Women, Children, Seniors, Equity and Opportunity may name a 80
representative from the commission to the allocation panel. The 81
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nonprofit organization chosen to administer the fund shall forward 82
information on community-based organizations that are eligible for a 83
grant to the Commissioner of Social Services, who shall have final 84
approval over the awarding of a grant contract to an eligible 85
community-based organization. Eligible community -based 86
organizations awarded grants from the fund shall, within the grant 87
period, (1) submit progress reports as required to the commissioner, (2) 88
assign a person in a position of leadership at the community-based 89
organization and at least two staff members to annually attend three 90
seminars on organizational topics presented by the nonprofit 91
organization administering the fund, and (3) agree to site visits as 92
scheduled by the organization administering the fund. 93
(g) Not later than January 1, 2027, the Commissioner of Social 94
Services shall submit a report, in accordance with the provisions of 95
section 11-4a of the general statutes, to the joint standing committees of 96
the General Assembly having cognizance of matters relating to 97
appropriations and the budgets of state agencies and human services on 98
(1) the number of community-based organizations awarded grant 99
contracts under the fund, (2) whether and how the fund has improved 100
the capacity of community-based organizations to meet needs, (3) the 101
performance of the nonprofit organization administering the fund, and 102
(4) a recommendation on whether the fund should continue and any 103
appropriations that may be necessary for the fund. 104
(h) Nothing in this section shall be construed as infringing upon any 105
contract in effect on July 1, 2025, between the Department of Social 106
Services and a community-based organization providing services to 107
Hispanic persons and communities of color. 108
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2025 New section
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Statement of Purpose:
To improve services for Hispanic persons and communities of color.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]
Co-Sponsors: REP. CANDELARIA J., 95th Dist.
H.B. 5579