By: King of Taylor, et al. (Senate Sponsor - Fraser) H.B. No. 3573
         (In the Senate - Received from the House May 5, 2011;
  May 9, 2011, read first time and referred to Committee on Business
  and Commerce; May 18, 2011, reported favorably by the following
  vote:  Yeas 8, Nays 0; May 18, 2011, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to limiting the disclosure of certain information
  regarding certain charitable organizations, trusts, private
  foundations, and grant-making organizations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 2252, Government Code, is
  amended by adding Section 2252.906 to read as follows:
         Sec. 2252.906.  DISCLOSURE PROTECTIONS FOR CERTAIN
  CHARITABLE ORGANIZATIONS, CHARITABLE TRUSTS, AND PRIVATE
  FOUNDATIONS.  (a)  In this section:
               (1)  "Charitable organization" means an organization
  that is exempt from federal income tax under Section 501(a),
  Internal Revenue Code of 1986, by being listed as an exempt
  organization in Section 501(c) of that code.  The term does not
  include a property owners' or homeowners' association.
               (2)  "Grant-making organization" means an organization
  that makes grants to charitable organizations but is not a private
  foundation, private foundation trust, or split interest trust.
               (3)  "Private foundation" has the meaning assigned by
  Section 509(a), Internal Revenue Code of 1986.
               (4)  "Split interest trust" means an irrevocable trust
  in which the income is first dispersed to the beneficiaries of the
  trust for a specified period and the remainder of the trust is
  donated to a designated charity.
         (b)  Unless the individual has given written consent to the
  disclosure, a governmental entity may not require a charitable
  organization, private foundation trust, split interest trust, or
  private foundation to disclose the race, religion, gender, national
  origin, socioeconomic status, age, ethnicity, disability, marital
  status, sexual orientation, or political party registration of an
  employee, officer, director, trustee, or member of the
  organization, trust, or foundation.
         (c)  Unless the individual has given written consent to the
  disclosure, a governmental entity may not require a private
  foundation, private foundation trust, split interest trust, or
  grant-making organization to disclose the race, religion, gender,
  national origin, socioeconomic status, age, ethnicity, disability,
  marital status, sexual orientation, or political party
  registration of:
               (1)  a person who receives money or in-kind
  contributions from or contracts with the foundation, trust, or
  organization; or
               (2)  an employee, officer, director, trustee, member,
  or owner of an entity that receives money or in-kind contributions
  from or contracts with the foundation, trust, or organization.
         (d)  A governmental entity may not:
               (1)  require that the governing board or officers of a
  charitable organization, private foundation trust, split interest
  trust, or private foundation include an individual of any
  particular race, religion, gender, national origin, socioeconomic
  status, age, ethnicity, disability, marital status, sexual
  orientation, or political party registration;
               (2)  prohibit an individual from serving as a board
  member or officer of the organization, trust, or foundation based
  on the individual's familial relationship to:
                     (A)  another board member or officer of the
  organization, trust, or foundation; or
                     (B)  a donor to the organization, trust, or
  foundation; or
               (3)  require the governing board or officers of the
  organization, trust, or foundation to include one or more
  individuals who do not share a familial relationship with the board
  members or officers or with a donor.
         (e)  Except as a condition on the expenditure of particular
  funds imposed by the donor of the funds, a governmental entity may
  not require a charitable organization, private foundation trust,
  split interest trust, or private foundation to distribute its funds
  to or contract with a person or entity based on the race, religion,
  gender, national origin, socioeconomic status, age, ethnicity,
  disability, marital status, sexual orientation, or political party
  registration of:
               (1)  the person or of an employee, officer, director,
  trustee, member, or owner of the entity; or
               (2)  the populations, locales, or communities served by
  the person or entity.
         (f)  This section does not limit the authority of the
  attorney general to investigate or enforce laws of this state in
  accordance with the attorney general's duty to protect the public
  interest in charity.
         SECTION 2.  Section 2252.906, Government Code, as added by
  this Act, does not apply to or invalidate a contract in effect
  before the effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2011.
 
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