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A BILL TO BE ENTITLED
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AN ACT
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relating to the availability of financial information of nonprofit |
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corporations for public inspection. |
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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 and |
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audited financial statements described by Subsection (c) 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) Except as provided by Subsection (c), the [The] |
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corporation shall make the records, books, and reports available to |
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the public for inspection and copying at the corporation's |
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registered or principal office during regular business hours. The |
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corporation may charge a reasonable fee for preparing a copy of a |
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record or report. |
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(c) A corporation is exempt from Subsection (b) if: |
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(1) an independent certified public accountant has |
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conducted an audit of the corporation's financial statements for |
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the preceding fiscal year in accordance with generally accepted |
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auditing standards; and |
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(2) subject to Subsection (d), the corporation makes |
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its audited financial statements and the annual reports of the |
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corporation's financial activity kept under Subsection (a) |
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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 statement or report. |
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(d) A corporation shall make an audited financial statement |
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described by Subsection (c)(1) available to the public for |
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inspection and copying not later than the 180th day after the close |
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of the fiscal year to which the audit relates. |
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SECTION 2. This Act takes effect September 1, 2023. |