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A BILL TO BE ENTITLED
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AN ACT
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relating to financial records and audits of nonprofit corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 22.353, Business Organizations Code, is |
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amended to read as follows: |
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Sec. 22.353. AVAILABILITY OF FINANCIAL INFORMATION FOR |
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PUBLIC INSPECTION. (a) A corporation shall keep records, books, |
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and annual reports of the corporation's financial activity at the |
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corporation's registered or principal office in this state for at |
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least three years after the close of the fiscal year. |
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(b) The corporation shall make the records, books, and |
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reports available to the public for inspection and copying at the |
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corporation's registered or principal office during regular |
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business hours. The corporation may charge a reasonable fee for |
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preparing a copy of a record or report. |
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(c) If a certified public accountant has conducted an |
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independent audit of any of the previous three fiscal years' of the |
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corporation's finances, the corporation shall be exempt from |
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22.353(b) so long as the corporation makes available to the public a |
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copy of the audit letter and copies of its most recent three annual |
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reports. |
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SECTION 2. Section 22.354, Business Organizations Code, is |
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amended to read as follows: |
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Sec. 22.354. FAILURE TO MAINTAIN FINANCIAL RECORD OR |
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PREPARE ANNUAL REPORT; OFFENSE. (a) Subject to section |
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22.353(c), a A corporation commits an offense if the corporation |
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fails to maintain a financial record, prepare an annual report, or |
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make the record or report available to the public in the manner |
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required by Section 22.353. |
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(b) An offense under this section is a Class B misdemeanor. |
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SECTION 3. This Act takes effect September 1, 2017. |