Texas 2011 - 82nd Regular

Texas House Bill HB3573 Compare Versions

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11 By: King of Taylor, et al. (Senate Sponsor - Fraser) H.B. No. 3573
22 (In the Senate - Received from the House May 5, 2011;
33 May 9, 2011, read first time and referred to Committee on Business
44 and Commerce; May 18, 2011, reported favorably by the following
55 vote: Yeas 8, Nays 0; May 18, 2011, sent to printer.)
66
77
88 A BILL TO BE ENTITLED
99 AN ACT
1010 relating to limiting the disclosure of certain information
1111 regarding certain charitable organizations, trusts, private
1212 foundations, and grant-making organizations.
1313 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1414 SECTION 1. Subchapter Z, Chapter 2252, Government Code, is
1515 amended by adding Section 2252.906 to read as follows:
1616 Sec. 2252.906. DISCLOSURE PROTECTIONS FOR CERTAIN
1717 CHARITABLE ORGANIZATIONS, CHARITABLE TRUSTS, AND PRIVATE
1818 FOUNDATIONS. (a) In this section:
1919 (1) "Charitable organization" means an organization
2020 that is exempt from federal income tax under Section 501(a),
2121 Internal Revenue Code of 1986, by being listed as an exempt
2222 organization in Section 501(c) of that code. The term does not
2323 include a property owners' or homeowners' association.
2424 (2) "Grant-making organization" means an organization
2525 that makes grants to charitable organizations but is not a private
2626 foundation, private foundation trust, or split interest trust.
2727 (3) "Private foundation" has the meaning assigned by
2828 Section 509(a), Internal Revenue Code of 1986.
2929 (4) "Split interest trust" means an irrevocable trust
3030 in which the income is first dispersed to the beneficiaries of the
3131 trust for a specified period and the remainder of the trust is
3232 donated to a designated charity.
3333 (b) Unless the individual has given written consent to the
3434 disclosure, a governmental entity may not require a charitable
3535 organization, private foundation trust, split interest trust, or
3636 private foundation to disclose the race, religion, gender, national
3737 origin, socioeconomic status, age, ethnicity, disability, marital
3838 status, sexual orientation, or political party registration of an
3939 employee, officer, director, trustee, or member of the
4040 organization, trust, or foundation.
4141 (c) Unless the individual has given written consent to the
4242 disclosure, a governmental entity may not require a private
4343 foundation, private foundation trust, split interest trust, or
4444 grant-making organization to disclose the race, religion, gender,
4545 national origin, socioeconomic status, age, ethnicity, disability,
4646 marital status, sexual orientation, or political party
4747 registration of:
4848 (1) a person who receives money or in-kind
4949 contributions from or contracts with the foundation, trust, or
5050 organization; or
5151 (2) an employee, officer, director, trustee, member,
5252 or owner of an entity that receives money or in-kind contributions
5353 from or contracts with the foundation, trust, or organization.
5454 (d) A governmental entity may not:
5555 (1) require that the governing board or officers of a
5656 charitable organization, private foundation trust, split interest
5757 trust, or private foundation include an individual of any
5858 particular race, religion, gender, national origin, socioeconomic
5959 status, age, ethnicity, disability, marital status, sexual
6060 orientation, or political party registration;
6161 (2) prohibit an individual from serving as a board
6262 member or officer of the organization, trust, or foundation based
6363 on the individual's familial relationship to:
6464 (A) another board member or officer of the
6565 organization, trust, or foundation; or
6666 (B) a donor to the organization, trust, or
6767 foundation; or
6868 (3) require the governing board or officers of the
6969 organization, trust, or foundation to include one or more
7070 individuals who do not share a familial relationship with the board
7171 members or officers or with a donor.
7272 (e) Except as a condition on the expenditure of particular
7373 funds imposed by the donor of the funds, a governmental entity may
7474 not require a charitable organization, private foundation trust,
7575 split interest trust, or private foundation to distribute its funds
7676 to or contract with a person or entity based on the race, religion,
7777 gender, national origin, socioeconomic status, age, ethnicity,
7878 disability, marital status, sexual orientation, or political party
7979 registration of:
8080 (1) the person or of an employee, officer, director,
8181 trustee, member, or owner of the entity; or
8282 (2) the populations, locales, or communities served by
8383 the person or entity.
8484 (f) This section does not limit the authority of the
8585 attorney general to investigate or enforce laws of this state in
8686 accordance with the attorney general's duty to protect the public
8787 interest in charity.
8888 SECTION 2. Section 2252.906, Government Code, as added by
8989 this Act, does not apply to or invalidate a contract in effect
9090 before the effective date of this Act.
9191 SECTION 3. This Act takes effect September 1, 2011.
9292 * * * * *