84R5240 GRM-D By: Sanford H.B. No. 1120 A BILL TO BE ENTITLED AN ACT relating to creation of entities affiliated with a church organized as a nonprofit corporation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter E, Chapter 22, Business Organizations Code, is amended by adding Section 22.236 to read as follows: Sec. 22.236. INTEGRATED AUXILIARIES OF CHURCHES. (a) In this section, "integrated auxiliary of a church" means an organization described by Section 501(c)(3), Internal Revenue Code, that: (1) is affiliated with a church or a convention or association of churches; (2) is not a church or a convention or association of churches; and (3) either: (A) receives financial support primarily from internal church sources instead of from public or governmental sources; or (B) is a men's or women's organization, a seminary, a mission society, or a youth group. (b) The board of directors of a corporation that is a church must give prior approval for the creation of any integrated auxiliary of the church. SECTION 2. This Act applies only to an integrated auxiliary of a church created on or after September 1, 2015. An integrated auxiliary created before the effective date of this Act is governed by the law in effect immediately before the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2015.