Legislative Recommendations
The task force identified four recommendation categories using the four criteria below and aligned each recommendation under the appropriate category. Task force members agreed that legislative recommendations must satisfy the following criteria: (1) be specific and measurable; (2) be within the purview of the Texas legislature; (3) align and be congruent, as a whole; and (4) be consistent with applicable state and federal law.
Nonprofit Capacity Building
1. The legislature should create a line-item appropriation for the Renewing Our Communities Account (ROCA), in the Health and Human Services Commission (HHSC) budget, to build the capacity of small- and medium-sized FCBOs.
2. The legislature should direct HHSC to conduct and document special outreach to nonprofits in historically disadvantaged and underserved communities in soliciting ROCA proposals, and to give priority to historically disadvantaged and underserved communities in the awarding of funds.
3. The Lieutenant Governor of Texas and the Speaker of the Texas House of Representatives should issue interim charges directing one or more legislative committees to examine issues relating to nonprofit organizations’ access to credit, and to explore ways in which the state could improve the nonprofit sector’s access to capital for social innovations.
4. The legislature should direct the Texas Department of Insurance to develop mechanisms for affordable group employer-sponsored health insurance for employees of nonprofit organizations.
Grants and Contracts Process
5. The legislature should direct the Interagency Coordinating Group (ICG), established by House Bill 492, 81st Legislature, Regular Session, 2009, to develop and implement a plan to improve contracting relationships between state agencies and the nonprofit sector. In developing the plan, the ICG should:
:: Lead and manage a multi-agency effort to develop a simplified standardized grants and contracting system for use by state agencies that will include, but not be limited to:
:: Develop strategies for investing in sustainable partnerships between state programs and nonprofit providers, including:
Communications Coordination
6. The legislature should continue the ICG. The ICG should be expanded to include the Governor’s Office, Department of Public Safety, Department of Insurance, Public Utility Commission, Office of the Attorney General, Department of Agriculture, Comptroller of Public Accounts, and other agencies. The ICG should be charged with sharing best practices for state agency and nonprofit cooperation and collaboration, identify duplication and gaps in service delivery among state agencies, and identify strategies for addressing these deficiencies. The ICG should establish a task force to assist them in this effort with representatives from private funders, local government, and FCBOs.
7. The legislature should direct the Department of Information Resources to consult with the ICG and its advisory committee to develop a user-friendly portal for local FCBOs to access information on state funding opportunities, including grants and contract opportunities, best practices, and other pertinent information.
Tax Related Issues
8. The legislature should ensure a stable environment for nonprofit organizations by maintaining current tax policies related to nonprofit organizations.
9. The legislature should direct state agencies to maximize their acquisition of federal funds for nonprofit grant and contract programs.
1. The legislature should create a line-item appropriation for the Renewing Our Communities Account (ROCA), in the Health and Human Services Commission (HHSC) budget, to build the capacity of small- and medium-sized FCBOs.
2. The legislature should direct HHSC to conduct and document special outreach to nonprofits in historically disadvantaged and underserved communities in soliciting ROCA proposals, and to give priority to historically disadvantaged and underserved communities in the awarding of funds.
3. The Lieutenant Governor of Texas and the Speaker of the Texas House of Representatives should issue interim charges directing one or more legislative committees to examine issues relating to nonprofit organizations’ access to credit, and to explore ways in which the state could improve the nonprofit sector’s access to capital for social innovations.
4. The legislature should direct the Texas Department of Insurance to develop mechanisms for affordable group employer-sponsored health insurance for employees of nonprofit organizations.
Grants and Contracts Process
5. The legislature should direct the Interagency Coordinating Group (ICG), established by House Bill 492, 81st Legislature, Regular Session, 2009, to develop and implement a plan to improve contracting relationships between state agencies and the nonprofit sector. In developing the plan, the ICG should:
:: Lead and manage a multi-agency effort to develop a simplified standardized grants and contracting system for use by state agencies that will include, but not be limited to:
- Common application, metrics/reporting, compliance, and payment processes;
- A state-wide communications plan regarding state funding opportunities for nonprofit organizations with a special emphasis on reaching underserved areas;
- Coordinated audit functions, including financial audits and monitoring;
- Prompt payment provisions;
- Use of “net grant principle” in grant and contract solicitations (net grant principle assures that the cost in time and money associated with applying for the grant is commensurate with the size of the grant awarded); and
- Consideration of alternative and in-kind resources to meet local match requirements for nonprofit grantees and contractors.
:: Develop strategies for investing in sustainable partnerships between state programs and nonprofit providers, including:
- Aligning available funding to ensure that deliverables required of grantees and contractors realistically reflect the level of state funding appropriated and do not place grantees and contractors at a financial disadvantage;
- Establishing reasonable and appropriate indirect and administrative cost structures; and
- Encouraging multiple-year contracts and grants and continuation of funding for programs which have demonstrated success.
Communications Coordination
6. The legislature should continue the ICG. The ICG should be expanded to include the Governor’s Office, Department of Public Safety, Department of Insurance, Public Utility Commission, Office of the Attorney General, Department of Agriculture, Comptroller of Public Accounts, and other agencies. The ICG should be charged with sharing best practices for state agency and nonprofit cooperation and collaboration, identify duplication and gaps in service delivery among state agencies, and identify strategies for addressing these deficiencies. The ICG should establish a task force to assist them in this effort with representatives from private funders, local government, and FCBOs.
7. The legislature should direct the Department of Information Resources to consult with the ICG and its advisory committee to develop a user-friendly portal for local FCBOs to access information on state funding opportunities, including grants and contract opportunities, best practices, and other pertinent information.
Tax Related Issues
8. The legislature should ensure a stable environment for nonprofit organizations by maintaining current tax policies related to nonprofit organizations.
9. The legislature should direct state agencies to maximize their acquisition of federal funds for nonprofit grant and contract programs.
