Louisiana House Bill HB921

Louisiana 2016 Regular Session

• Introduced: 3/28/16
• Refer: 3/29/16
• Report Pass: 5/4/16

Caption

Provides relative to applicability of laws governing public entities to nonprofit corporations that support public postsecondary education

Impact

The revisions introduced by HB 921 are significant as they alter the legal interpretation of nonprofit corporations' status in relation to public investments. Historically, such corporations could maintain a private status as long as their income from public sources was below ten percent. HB 921 adjusts this criterion, stating that any receipt, investment, or expenditure of public funds could influence a corporation's private status. This change compels these entities to adhere to state laws that grant the public greater access to their records and meeting proceedings.

Summary

House Bill 921 aims to clarify the status and regulation of nonprofit corporations that support public postsecondary education institutions in Louisiana. The bill focuses on ensuring that such corporations, which are responsible for financing, designing, constructing, and renovating facilities for higher education, operate under the same public governance laws that apply to public entities. This includes compliance with the Open Meetings Law and the Public Records Law, thereby enhancing transparency and accountability in their operations.

Sentiment

The sentiment around HB 921 appears largely supportive among proponents of public governance and transparency in nonprofit operations. Supporters argue that the bill empowers citizens by ensuring that nonprofit institutions involved with public education are subject to more rigorous oversight. However, there may also be concerns voiced by those who fear that increased regulation could stifle the operational flexibility and funding strategies that nonprofit organizations need to effectively meet their educational goals.

Contention

The primary points of contention surrounding HB 921 revolve around the implications for nonprofit organizations that might find compliance with additional regulations burdensome. While advocates for increased transparency assert the necessity of these reforms to foster accountability, critics may highlight the potential administrative challenges and costs involved in meeting new legal requirements. This could lead to a tension between the goals of accountability and flexibility in the nonprofit sector.