Texas 2015 - 84th Regular

Texas Senate Bill SB1233 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Taylor of Galveston S.B. No. 1233
2		-	(Oliveira)
	1	+	S.B. No. 1233
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to authorizing certain distributions of income from a
8	6		nonprofit corporation to members of the corporation who are certain
9	7		nonprofit corporations.
10	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	9		SECTION 1. Section 22.001(5), Business Organizations Code,
12	10		is amended to read as follows:
13	11		(5) "Nonprofit corporation" means a corporation no
14	12		part of the income of which is distributable to a member, director,
15	13		or officer of the corporation, except as provided by Section
16	14		22.054.
17	15		SECTION 2. Section 22.053, Business Organizations Code, is
18	16		amended to read as follows:
19	17		Sec. 22.053. DIVIDENDS PROHIBITED. Except as provided by
20	18		Section 22.054, a [A] dividend may not be paid to, and no part of the
21	19		income of a corporation may be distributed to, the corporation's
22	20		members, directors, or officers.
23	21		SECTION 3. Section 22.054, Business Organizations Code, is
24	22		amended to read as follows:
25	23		Sec. 22.054. AUTHORIZED BENEFITS AND DISTRIBUTIONS. A
26	24		corporation may:
27	25		(1) pay compensation in a reasonable amount to the
28	26		members, directors, or officers of the corporation for services
29	27		provided;
30	28		(2) confer benefits on the corporation's members in
31	29		conformity with the corporation's purposes; [and]
32	30		(3) make distributions to the corporation's members on
33	31		winding up and termination to the extent authorized by this
34	32		chapter; and
35	33		(4) make distributions of its income to the
36	34		corporation's members who are nonprofit corporations organized
37	35		under this code and who are exempt from income taxation under
38	36		Section 501(a), Internal Revenue Code of 1986, by being listed
39	37		under Section 501(c)(3) of that code, if:
40	38		(A) the distributions are made in accordance with
41	39		the purpose or purposes of the corporation as stated in the
42	40		certificate of formation and with the fiduciary responsibilities of
43	41		the board of directors, including the duty to safeguard restricted
44	42		funds for their intended purposes; and
45	43		(B) after the distributions are complete:
46	44		(i) the corporation would be able to pay the
47	45		corporation's debts as they become due in the usual course of its
48	46		activities; and
49	47		(ii) the corporation's total assets would
50	48		at least equal the sum of its total liabilities.
51	49		SECTION 4. This Act takes effect immediately if it receives
52	50		a vote of two-thirds of all the members elected to each house, as
53	51		provided by Section 39, Article III, Texas Constitution. If this
54	52		Act does not receive the vote necessary for immediate effect, this
55	53		Act takes effect September 1, 2015.
	54	+	______________________________ ______________________________
	55	+	President of the Senate Speaker of the House
	56	+	I hereby certify that S.B. No. 1233 passed the Senate on
	57	+	April 30, 2015, by the following vote: Yeas 31, Nays 0.
	58	+	______________________________
	59	+	Secretary of the Senate
	60	+	I hereby certify that S.B. No. 1233 passed the House on
	61	+	May 12, 2015, by the following vote: Yeas 144, Nays 0, two
	62	+	present not voting.
	63	+	______________________________
	64	+	Chief Clerk of the House
	65	+	Approved:
	66	+	______________________________
	67	+	Date
	68	+	______________________________
	69	+	Governor