81R11337 CLG-D
 
  By: Gallegos S.B. No. 2185
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to contracting practices of certain large nonprofit
  corporations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Subchapter B, Chapter 22,
  Business Organizations Code, is amended to read as follows:
  SUBCHAPTER B. PURPOSES, [AND] POWERS, AND DUTIES
         SECTION 2.  Subchapter B, Chapter 22, Business Organizations
  Code, is amended by adding Section 22.058 to read as follows:
         Sec. 22.058.  CONTRACTS FOR SERVICES BY CERTAIN NONPROFIT
  CORPORATIONS. (a) This section applies only to a nonprofit
  corporation that:
               (1)  is described by Section 501(c)(3), Internal
  Revenue Code of 1986; and
               (2)  has total annual gross revenues of $50 million or
  more, according to the corporation's most recent financial
  statement.
         (b)  A nonprofit corporation to which this section applies
  must obtain services in the manner provided for the purchase of
  services by a state agency using the request for proposals method
  under Subtitle D, Title 10, Government Code.
         SECTION 3.  Section 22.058, Business Organizations Code, as
  added by this Act, applies only to a contract that is entered into
  on or after the effective date of this Act. A contract entered into
  before the effective date of this Act is governed by the law in
  effect on the date the contract was entered into, and the former law
  is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2009.