1 | 1 | | By: King of Taylor, et al. (Senate Sponsor - Fraser) H.B. No. 3573 |
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2 | 2 | | (In the Senate - Received from the House May 5, 2011; |
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3 | 3 | | May 9, 2011, read first time and referred to Committee on Business |
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4 | 4 | | and Commerce; May 18, 2011, reported favorably by the following |
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5 | 5 | | vote: Yeas 8, Nays 0; May 18, 2011, sent to printer.) |
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6 | 6 | | |
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7 | 7 | | |
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8 | 8 | | A BILL TO BE ENTITLED |
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9 | 9 | | AN ACT |
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10 | 10 | | relating to limiting the disclosure of certain information |
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11 | 11 | | regarding certain charitable organizations, trusts, private |
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12 | 12 | | foundations, and grant-making organizations. |
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13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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14 | 14 | | SECTION 1. Subchapter Z, Chapter 2252, Government Code, is |
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15 | 15 | | amended by adding Section 2252.906 to read as follows: |
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16 | 16 | | Sec. 2252.906. DISCLOSURE PROTECTIONS FOR CERTAIN |
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17 | 17 | | CHARITABLE ORGANIZATIONS, CHARITABLE TRUSTS, AND PRIVATE |
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18 | 18 | | FOUNDATIONS. (a) In this section: |
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19 | 19 | | (1) "Charitable organization" means an organization |
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20 | 20 | | that is exempt from federal income tax under Section 501(a), |
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21 | 21 | | Internal Revenue Code of 1986, by being listed as an exempt |
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22 | 22 | | organization in Section 501(c) of that code. The term does not |
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23 | 23 | | include a property owners' or homeowners' association. |
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24 | 24 | | (2) "Grant-making organization" means an organization |
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25 | 25 | | that makes grants to charitable organizations but is not a private |
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26 | 26 | | foundation, private foundation trust, or split interest trust. |
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27 | 27 | | (3) "Private foundation" has the meaning assigned by |
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28 | 28 | | Section 509(a), Internal Revenue Code of 1986. |
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29 | 29 | | (4) "Split interest trust" means an irrevocable trust |
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30 | 30 | | in which the income is first dispersed to the beneficiaries of the |
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31 | 31 | | trust for a specified period and the remainder of the trust is |
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32 | 32 | | donated to a designated charity. |
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33 | 33 | | (b) Unless the individual has given written consent to the |
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34 | 34 | | disclosure, a governmental entity may not require a charitable |
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35 | 35 | | organization, private foundation trust, split interest trust, or |
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36 | 36 | | private foundation to disclose the race, religion, gender, national |
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37 | 37 | | origin, socioeconomic status, age, ethnicity, disability, marital |
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38 | 38 | | status, sexual orientation, or political party registration of an |
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39 | 39 | | employee, officer, director, trustee, or member of the |
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40 | 40 | | organization, trust, or foundation. |
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41 | 41 | | (c) Unless the individual has given written consent to the |
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42 | 42 | | disclosure, a governmental entity may not require a private |
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43 | 43 | | foundation, private foundation trust, split interest trust, or |
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44 | 44 | | grant-making organization to disclose the race, religion, gender, |
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45 | 45 | | national origin, socioeconomic status, age, ethnicity, disability, |
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46 | 46 | | marital status, sexual orientation, or political party |
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47 | 47 | | registration of: |
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48 | 48 | | (1) a person who receives money or in-kind |
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49 | 49 | | contributions from or contracts with the foundation, trust, or |
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50 | 50 | | organization; or |
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51 | 51 | | (2) an employee, officer, director, trustee, member, |
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52 | 52 | | or owner of an entity that receives money or in-kind contributions |
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53 | 53 | | from or contracts with the foundation, trust, or organization. |
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54 | 54 | | (d) A governmental entity may not: |
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55 | 55 | | (1) require that the governing board or officers of a |
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56 | 56 | | charitable organization, private foundation trust, split interest |
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57 | 57 | | trust, or private foundation include an individual of any |
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58 | 58 | | particular race, religion, gender, national origin, socioeconomic |
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59 | 59 | | status, age, ethnicity, disability, marital status, sexual |
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60 | 60 | | orientation, or political party registration; |
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61 | 61 | | (2) prohibit an individual from serving as a board |
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62 | 62 | | member or officer of the organization, trust, or foundation based |
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63 | 63 | | on the individual's familial relationship to: |
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64 | 64 | | (A) another board member or officer of the |
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65 | 65 | | organization, trust, or foundation; or |
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66 | 66 | | (B) a donor to the organization, trust, or |
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67 | 67 | | foundation; or |
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68 | 68 | | (3) require the governing board or officers of the |
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69 | 69 | | organization, trust, or foundation to include one or more |
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70 | 70 | | individuals who do not share a familial relationship with the board |
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71 | 71 | | members or officers or with a donor. |
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72 | 72 | | (e) Except as a condition on the expenditure of particular |
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73 | 73 | | funds imposed by the donor of the funds, a governmental entity may |
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74 | 74 | | not require a charitable organization, private foundation trust, |
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75 | 75 | | split interest trust, or private foundation to distribute its funds |
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76 | 76 | | to or contract with a person or entity based on the race, religion, |
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77 | 77 | | gender, national origin, socioeconomic status, age, ethnicity, |
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78 | 78 | | disability, marital status, sexual orientation, or political party |
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79 | 79 | | registration of: |
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80 | 80 | | (1) the person or of an employee, officer, director, |
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81 | 81 | | trustee, member, or owner of the entity; or |
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82 | 82 | | (2) the populations, locales, or communities served by |
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83 | 83 | | the person or entity. |
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84 | 84 | | (f) This section does not limit the authority of the |
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85 | 85 | | attorney general to investigate or enforce laws of this state in |
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86 | 86 | | accordance with the attorney general's duty to protect the public |
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87 | 87 | | interest in charity. |
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88 | 88 | | SECTION 2. Section 2252.906, Government Code, as added by |
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89 | 89 | | this Act, does not apply to or invalidate a contract in effect |
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90 | 90 | | before the effective date of this Act. |
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91 | 91 | | SECTION 3. This Act takes effect September 1, 2011. |
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92 | 92 | | * * * * * |
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