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A BILL TO BE ENTITLED
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AN ACT
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relating to the disclosure of certain financial information by |
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certain nonprofit organizations that enter into sizeable contracts |
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with political subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 2252, Government Code, is |
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amended by adding Section 2252.902 to read as follows: |
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Sec. 2252.902. CONTRACTS WITH NONPROFIT ORGANIZATIONS. (a) |
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In this section: |
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(1) "Economic development corporation" means: |
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(A) a Type A corporation governed by Chapter 504, |
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Local Government Code; and |
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(B) a Type B corporation governed by Chapter 505 |
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of that code. |
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(2) "Nonprofit organization" means an organization |
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that is exempt from federal income tax under Section 501(a), |
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Internal Revenue Code of 1986, by being listed as an exempt |
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organization in Section 501(c) of that code. The term includes an |
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economic development corporation. |
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(3) "Political subdivision" means a county, |
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municipality, or economic development corporation. |
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(4) "State agency" means a department, commission, |
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board, office, or other entity in the executive, legislative, or |
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judicial branch of state government. The term does not include an |
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institution of higher education or a university system as defined |
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by Section 61.003, Education Code. |
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(b) This section applies only to a contract between a |
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nonprofit organization and a political subdivision that has an |
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annual value of more than $500,000. |
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(c) This section does not apply to a nonprofit organization |
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that is: |
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(1) an electric cooperative as defined by Section |
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11.003, Utilities Code; |
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(2) an organization certified as an independent |
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organization under Section 39.151, Utilities Code; or |
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(3) a water supply corporation created and operating |
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under Chapter 67, Water Code. |
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(d) A nonprofit organization that enters into a contract |
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with a political subdivision shall provide the following |
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information to the political subdivision when the contract is |
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entered into, and shall update the information not later than the |
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30th day of each fiscal year of the organization until the contract |
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expires: |
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(1) the organization's operating budget for the |
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current fiscal year; and |
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(2) the salary of each employee of the organization |
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that exceeds 200 percent of the median salary of state employees. |
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(e) A political subdivision that maintains an Internet |
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website shall publish and maintain the information received under |
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Subsection (d) on the website. |
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(f) For the purposes of this section, the comptroller shall |
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determine the median salary paid each state fiscal year from the |
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state treasury to employees of a state agency. The comptroller's |
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determination must be published on the comptroller's Internet |
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website not later than October 1 of each year. |
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(g) The attorney general may bring an action for injunctive |
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relief against a political subdivision or an officer or employee of |
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a political subdivision to enforce this section. |
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SECTION 2. Section 2252.902, Government Code, as added by |
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this Act, applies only to a contract entered into on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |