Texas House Bill HB2147

Texas 2019 - 86th Regular

Caption

Relating to the availability of financial information of nonprofit corporations for public inspection.

Impact

If enacted, HB 2147 would reinforce legislation that governs the transparency of nonprofit organizations in Texas. It establishes a clear obligation for nonprofits to not only keep financial records but also to make them accessible to the public during regular business hours. This could have significant implications for nonprofit governance, as it may encourage more responsible management of funds and improve overall public confidence in nonprofit operations. Furthermore, by imposing a deadline for the disclosure of audited financial statements, the bill pushes organizations to uphold timely reporting standards.

Summary

House Bill 2147 aims to enhance the availability of financial information from nonprofit corporations for public inspection. The bill amends Section 22.353 of the Business Organizations Code, mandating that nonprofits must maintain records of their financial activities and audited financial statements for a minimum of three years post-fiscal year. This ensures transparency and accountability in the financial dealings of nonprofits, which often rely on public trust and donations. By requiring these documents to be available at the corporation's registered office, the bill seeks to increase stakeholder access to essential financial information.

Contention

The discussion surrounding HB 2147 may involve points of contention related to the potential burdens that increased transparency could place on nonprofit organizations, particularly smaller entities with limited resources. Critics may argue that the requirement to maintain and publicize financial records could divert vital resources away from programs and services. Additionally, there could be concerns regarding privacy and the handling of sensitive financial information. Advocates, however, may counter that the benefits of increased transparency and public trust outweigh these concerns, pointing to the essential role that nonprofits play in community support and service delivery.