Public Funds and Financing

Plain English Breakdown

The bill does not specify the exact amounts or criteria for distributing grants beyond the initial $1 million appropriation.

Community-Based Organizations Grant Program Act

This bill establishes a grant program within the Department of Human Services to support eligible nonprofit organizations through a nine-member Community Grant Advisory Board.

What This Bill Does

• Establishes a community-based organization grant program within the state general fund to financially support eligible nonprofits.
• Creates a nine-member Community Grant Advisory Board to manage and allocate grants, with members appointed by various officials including the governor and legislative leaders.
• Sets up guidelines for applying for grants, requiring organizations to demonstrate need and provide project plans.
• Requires grant recipients to submit quarterly progress reports and undergo periodic evaluations.
• Establishes an initial appropriation of $1 million in fiscal year 2025-2026.

Who It Names or Affects

• Nonprofit organizations that have served communities for at least five years in areas such as education, health care, or social services.
• The Department of Human Services, which will provide administrative support to the board.
• Legislative committees responsible for reviewing budget-related matters.

Terms To Know

Community Grant Advisory Board

A nine-member group appointed by various officials to manage and allocate grants under the community-based organization grant program.

Eligible Community-Based Organization

A nonprofit that has served communities for at least five years in areas such as education, health care, or social services.

Limits and Unknowns

• The bill does not specify how the grants will be distributed beyond the initial $1 million appropriation.
• It is unclear what happens if a grant recipient fails to meet reporting requirements or uses funds improperly.

Official Summary Text

This bill establishes in the department of human services a community grant advisory board ("the bo
ard") for the purpose of administering the community-based organizations grant program in this bill. This board consists of nine voting members including:



The commissioner of human services ("commissioner").



One member,
appointed by the governor, who has no connection to community-based organizations and who does not fulfill any other requirements for appointment to the board
.



One representative
of county government, appointed by the speaker of the senate
.



One representative of city government, appointed by the speaker of the house of representatives.



Three members,
appointed by the governor, each of whom is either a current director of a community-based organization or a current member of a community-based organization board of directors at the time of the member's appointment.
Such members
must each reside in a separate grand division of the state
.



One at large
member appointed by the speaker of the senate, who at the time of the member's appointment is either a current director of a nonprofit entity or a current member of a nonprofit entity board of directors
.



One at large
member appointed by the speaker of the house of representatives, who at the time of the member's appointment is either a current director of a nonprofit entity or a current member of a nonprofit entity board of directors.

TERMS OF MEMBERS

This bill provides that the terms for the initial board members begin on October 1, 2025, and must be staggered as follows: (i) the members
appointed by the governor
must
serve an initial term of six
years, (ii) the members
appointed by the speaker of the senate
must
serve an initial term of five
years, and (iii) the
members appointed by the speaker of the house of representatives
must
serve an initial term of four
. After
the expiration of members' initial terms, appointments to the board are for terms of six years and begin on July 1 and terminate on June 30, six years thereafter.

This bill authorizes, at the
expiration of a board member's term, the member
to
continue
to serve until a successor is appointed or until the member is reappointed.
Additionally, all members serve
without compensation, but are eligible for reimbursement for travel expenses in accordance with the comprehensive travel regulations as promulgated
by the department of finance and administration and approved by the attorney general
.

BOARD PROCEDURES AND RESPONSIBILITIES

This bill provides that five board members constitute a quorum
for the transaction of business. If a quorum is present, a vaca
ncy on the board does not prevent the board from transacting business or otherwise taking an action authorized pursuant to this
bill.

This bill provides that the commissioner must serve as chair and the board must meet at the call of the chair. The bo
ard may elect other officers as the board deems appropriate. Additionally, the department must provide administrative support to the board.

This bill requires the board to
submit an annual report to
legislative
committee
s
with jurisdiction over budget-related matters by March 1, 2026, and by March 1 of each subsequent year
,
on the status of th
e
grant program and the allocation of grant funds. Grant recipients
must
provide quarterly progress reports to the board detailing
how funds are being utilized. The board
must
conduct site visits and performance evaluations of grant recipients periodically to ensure program effectiveness.

COMMUNITY BASED ORGANIZATIONS GRANT PROGRAM

This bill creates a community based organizati
on grant program for the purpose of financially supporting the capacity, sustainability, and impact of eligible community-based organizations. This bill creates within the state general fund a special account to be known as the community-based organizati
o
n grant fund
("the fund")
, to be administered by the
board. An "eligible community-based organization" means a nonprofit organization that has served communities for at least five years in the areas of economic or workforce development, education, poverty
, health, housing, or social services.

This bill provides that the fund is composed of money
appropriated by the general assembly for the fund, and gifts, grants, and other donations received by the board for the fund.
Subject to the
availability of fu
nds, the board
must
allocate and disperse grants to eligible community-based organizations to effectuate this
bill
. Grants must be awarded in amounts ranging from $10,000
to $
100,000, based on the eligible community-based organization's scope, impact, and
financial need. It is the legislative intent that an initial appropriation of
$1 million
be made in fiscal year 2025-2026 and deposited to the fund.

This bill requires the state treasurer to invest
moneys in the fund for the benefit of the fund in acco
rdance with
the provisions of pooled investment funds
. Interest accruing on investments and deposits of the fund must be credited to and remain part of the fund. Any unencumbered moneys and any unexpended balance of the fund remaining at the end of a fis
cal year do not revert to the general fund but must be carried forward until expended in accordance with this
bill
.

Grant guidelines

This bill requires the board to
establish and publish guidelines for applications, including eligibility, and the award
of grants. In the application, the eligible community-based organization must demonstrate a need for funding and provide a clear plan for project implementation and impact measurement, including a grant proposal outlining their mission, project goals, e
x
pected outcomes, and budget. Priority for grants must be given to projects that emphasize community-driven solutions, partnerships, and sustainability, and to eligible community-based organizations led by community members from the populations they serve.

Current Bill Text

SENATE BILL 958
By Lamar

HOUSE BILL 1068
By Hakeem

HB1068
003081
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 9; Title 67 and Title 71, relative to community-
based organizations.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 4-29-248(a), is amended by adding
the following as a new, appropriately designated subdivision:
( ) Community grant advisory board, created by § 71-1-137;
SECTION 2. Tennessee Code Annotated, Title 71, Chapter 1, Part 1, is amended by
adding the following new sections:
71-1-136.
(a) As used in this section, "eligible community-based organization" means a
501(c)(3) nonprofit organization that has served communities for at least five (5) years in
the areas of economic or workforce development, education, poverty, health, housing, or
social services.
(b) There is established a community-based organization grant program for the
purpose of financially supporting the capacity, sustainability, and impact of eligible
community-based organizations.
(c) There is created within the state general fund a special account to be known
as the community-based organization grant fund, to be administered by the community
grant advisory board created by § 71-1-137.
(d) The fund is composed of money appropriated by the general assembly for
the fund, and gifts, grants, and other donations received by the board for the fund.

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(e) Subject to the availability of funds, the board shall allocate and disperse
grants to eligible community-based organizations to effectuate this section. Grants must
be awarded in amounts ranging from ten thousand dollars ($10,000) to one hundred
thousand dollars ($100,000), based on the eligible community-based organization's
scope, impact, and financial need. It is the legislative intent that an initial appropriation
of one million dollars ($1,000,000) be made in fiscal year 2025-2026 and deposited to
the fund.
(f) The board shall establish and publish guidelines for applications, including
eligibility, and the award of grants. In the application, the eligible community-based
organization must demonstrate a need for funding and provide a clear plan for project
implementation and impact measurement, including a grant proposal outlining their
mission, project goals, expected outcomes, and budget. Priority for grants must be
given to projects that emphasize community-driven solutions, partnerships, and
sustainability, and to eligible community-based organizations led by community
members from the populations they serve.
(g) The state treasurer shall invest moneys in the fund for the benefit of the fund
in accordance with § 9-4-603. Interest accruing on investments and deposits of the fund
must be credited to and remain part of the fund. Any unencumbered moneys and any
unexpended balance of the fund remaining at the end of a fiscal year do not revert to the
general fund, but must be carried forward until expended in accordance with this section.
(h) The board shall submit an annual report to the finance, ways and means
committees of the senate and the committee of the house of representatives with
jurisdiction over budget-related matters by March 1, 2026, and by March 1 of each
subsequent year on the status of this grant program and the allocation of grant funds.
Grant recipients shall provide quarterly progress reports to the board detailing how funds

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are being utilized. The board shall conduct site visits and performance evaluations of
grant recipients periodically to ensure program effectiveness.
(i) The department may promulgate rules necessary to effectuate this section.
The rules must be promulgated in accordance with the Uniform Administrative
Procedures Act, compiled in title 4, chapter 5.
71-1-137.
(a) There is created in the department a community grant advisory board,
referred to in this section and § 71-1-136 as "the board," for the purpose of administering
the community-based organizations grant program under § 71-1-136. The board
consists of nine (9) voting members as follows:
(1) The commissioner or the commissioner's designee;
(2) One (1) member, appointed by the governor, who has no connection
to community-based organizations and who does not fulfill any other
requirements for appointment to the board;
(3) One (1) representative of county government, appointed by the
speaker of the senate;
(4) One (1) representative of city government, appointed by the speaker
of the house of representatives;
(5) Three (3) members, appointed by the governor, each of whom is
either a current director of a community-based organization or a current member
of a community-based organization board of directors at the time of the member's
appointment. The members appointed pursuant to this subdivision (a)(5) must
each reside in a separate grand division of the state;

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(6) One (1) at large member appointed by the speaker of the senate, who
at the time of the member's appointment is either a current director of a nonprofit
entity or a current member of a nonprofit entity board of directors; and
(7) One (1) at large member appointed by the speaker of the house of
representatives, who at the time of the member's appointment is either a current
director of a nonprofit entity or a current member of a nonprofit entity board of
directors.
(b) The terms for the initial board members begin on October 1, 2025, and must
be staggered as follows:
(1) The members appointed by the governor shall serve an initial term of
six (6) years;
(2) The members appointed by the speaker of the senate shall serve an
initial term of five (5) years; and
(3) The members appointed by the speaker of the house of
representatives shall serve an initial term of four (4) years.
(c) Following the expiration of members' initial terms as prescribed in subsection
(b), appointments to the board are for terms of six (6) years and begin on July 1 and
terminate on June 30, six (6) years thereafter.
(d) At the expiration of a board member's term, the member may continue to
serve until a successor is appointed or until the member is reappointed.
(e) All members serve without compensation, but are eligible for reimbursement
for travel expenses in accordance with the comprehensive travel regulations as
promulgated by the department of finance and administration and approved by the
attorney general and reporter.

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(f) Five (5) board members constitute a quorum for the transaction of business.
If a quorum is present, a vacancy on the board does not prevent the board from
transacting business or otherwise taking an action authorized pursuant to this section or
§ 71-1-136.
(g) The commissioner or the commissioner's designee shall serve as chair. The
board shall meet at the call of the chair. The board may elect other officers as the board
deems appropriate.
(h) The department shall provide administrative support to the board.
(i) The board may exercise the powers and duties necessary to implement this
section and § 71-1-136.
SECTION 3. For purposes of promulgating forms or rules, this act takes effect upon
becoming a law, the public welfare requiring it. For all other purposes, this act takes effect July
1, 2025, the public welfare requiring it.