By: King of Taylor, et al. (Senate Sponsor - Fraser) H.B. No. 3573
(In the Senate - Received from the House May 5, 2011;
May 9, 2011, read first time and referred to Committee on Business
and Commerce; May 18, 2011, reported favorably by the following
vote: Yeas 8, Nays 0; May 18, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to limiting the disclosure of certain information
regarding certain charitable organizations, trusts, private
foundations, and grant-making organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 2252, Government Code, is
amended by adding Section 2252.906 to read as follows:
Sec. 2252.906. DISCLOSURE PROTECTIONS FOR CERTAIN
CHARITABLE ORGANIZATIONS, CHARITABLE TRUSTS, AND PRIVATE
FOUNDATIONS. (a) In this section:
(1) "Charitable organization" means an organization
that is exempt from federal income tax under Section 501(a),
Internal Revenue Code of 1986, by being listed as an exempt
organization in Section 501(c) of that code. The term does not
include a property owners' or homeowners' association.
(2) "Grant-making organization" means an organization
that makes grants to charitable organizations but is not a private
foundation, private foundation trust, or split interest trust.
(3) "Private foundation" has the meaning assigned by
Section 509(a), Internal Revenue Code of 1986.
(4) "Split interest trust" means an irrevocable trust
in which the income is first dispersed to the beneficiaries of the
trust for a specified period and the remainder of the trust is
donated to a designated charity.
(b) Unless the individual has given written consent to the
disclosure, a governmental entity may not require a charitable
organization, private foundation trust, split interest trust, or
private foundation to disclose the race, religion, gender, national
origin, socioeconomic status, age, ethnicity, disability, marital
status, sexual orientation, or political party registration of an
employee, officer, director, trustee, or member of the
organization, trust, or foundation.
(c) Unless the individual has given written consent to the
disclosure, a governmental entity may not require a private
foundation, private foundation trust, split interest trust, or
grant-making organization to disclose the race, religion, gender,
national origin, socioeconomic status, age, ethnicity, disability,
marital status, sexual orientation, or political party
registration of:
(1) a person who receives money or in-kind
contributions from or contracts with the foundation, trust, or
organization; or
(2) an employee, officer, director, trustee, member,
or owner of an entity that receives money or in-kind contributions
from or contracts with the foundation, trust, or organization.
(d) A governmental entity may not:
(1) require that the governing board or officers of a
charitable organization, private foundation trust, split interest
trust, or private foundation include an individual of any
particular race, religion, gender, national origin, socioeconomic
status, age, ethnicity, disability, marital status, sexual
orientation, or political party registration;
(2) prohibit an individual from serving as a board
member or officer of the organization, trust, or foundation based
on the individual's familial relationship to:
(A) another board member or officer of the
organization, trust, or foundation; or
(B) a donor to the organization, trust, or
foundation; or
(3) require the governing board or officers of the
organization, trust, or foundation to include one or more
individuals who do not share a familial relationship with the board
members or officers or with a donor.
(e) Except as a condition on the expenditure of particular
funds imposed by the donor of the funds, a governmental entity may
not require a charitable organization, private foundation trust,
split interest trust, or private foundation to distribute its funds
to or contract with a person or entity based on the race, religion,
gender, national origin, socioeconomic status, age, ethnicity,
disability, marital status, sexual orientation, or political party
registration of:
(1) the person or of an employee, officer, director,
trustee, member, or owner of the entity; or
(2) the populations, locales, or communities served by
the person or entity.
(f) This section does not limit the authority of the
attorney general to investigate or enforce laws of this state in
accordance with the attorney general's duty to protect the public
interest in charity.
SECTION 2. Section 2252.906, Government Code, as added by
this Act, does not apply to or invalidate a contract in effect
before the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2011.
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