Texas House Bill HB2921

Texas 2011 - 82nd Regular

• Out of House Committee: 4/28/11
• Introduced: 3/10/11
• Refer: 3/17/11
• Report Pass: 4/19/11

Caption

Relating to the power of the office of the attorney general to make certain examinations and inquiries.

Impact

The bill will significantly impact state laws governing the relationship between the Attorney General and nonprofit entities. It introduces provisions that not only allow examinations but also mandate that these entities provide necessary documentation and information during investigations. Charitable organizations will have to ensure compliance with these requirements, leading to increased scrutiny and oversight from state authorities. The amendments are intended to enhance the ability of the Attorney General’s office to act effectively against organizations that may be engaging in fraudulent or unethical practices that could harm the public interest.

Summary

House Bill 2921 aims to enhance the powers of the Office of the Attorney General in Texas by allowing for more comprehensive examinations and inquiries into both charitable entities and fiduciary relationships pertaining to charitable trusts. The bill specifically amends existing sections of the Business Organizations Code and the Property Code to grant the Attorney General the authority to inspect records and examine the operations of these organizations to ensure compliance with legal standards and investigate any potential unlawful behavior. This expanded authority is justified as a necessary measure to protect public interest and promote transparency within charitable organizations.

Contention

While the bill presents itself as a tool for safeguarding the public and ensuring lawful behavior amongst charitable organizations, there are concerns about potential overreach. Critics may argue that the bill could lead to an excessive burden on charitable entities due to the compulsory nature of compliance and inspections. The ethical implications of allowing the Attorney General broad powers to investigate could provoke debates regarding the balance between governmental oversight and the operational independence of nonprofits. Advocates for nonprofit organizations may express concerns about the implications of this bill on their operational abilities and autonomy, especially in situations where they are subjected to broad investigatory powers.