| 1 | 1 | | By: Menéndez S.B. No. 2180 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to financial records and audits of nonprofit corporations. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 22.353, Business Organizations Code, is |
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| 9 | 9 | | amended to read as follows: |
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| 10 | 10 | | Sec. 22.353. AVAILABILITY OF FINANCIAL INFORMATION FOR |
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| 11 | 11 | | PUBLIC INSPECTION. (a) A corporation shall keep records, books, |
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| 12 | 12 | | and annual reports of the corporation's financial activity at the |
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| 13 | 13 | | corporation's registered or principal office in this state for at |
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| 14 | 14 | | least three years after the close of the fiscal year. |
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| 15 | 15 | | (b) The corporation shall make the records, books, and |
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| 16 | 16 | | reports available to the public for inspection and copying at the |
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| 17 | 17 | | corporation's registered or principal office during regular |
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| 18 | 18 | | business hours. The corporation may charge a reasonable fee for |
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| 19 | 19 | | preparing a copy of a record or report. |
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| 20 | 20 | | (c) If a certified public accountant has conducted an |
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| 21 | 21 | | independent audit of any of the previous three fiscal years' of the |
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| 22 | 22 | | corporation's finances, the corporation shall be exempt from |
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| 23 | 23 | | 22.353(b) so long as the corporation makes available to the public a |
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| 24 | 24 | | copy of the audit letter and copies of its most recent three annual |
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| 25 | 25 | | reports. |
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| 26 | 26 | | SECTION 2. Section 22.354, Business Organizations Code, is |
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| 27 | 27 | | amended to read as follows: |
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| 28 | 28 | | Sec. 22.354. FAILURE TO MAINTAIN FINANCIAL RECORD OR |
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| 29 | 29 | | PREPARE ANNUAL REPORT; OFFENSE. (a) Subject to section |
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| 30 | 30 | | 22.353(c), a A corporation commits an offense if the corporation |
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| 31 | 31 | | fails to maintain a financial record, prepare an annual report, or |
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| 32 | 32 | | make the record or report available to the public in the manner |
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| 33 | 33 | | required by Section 22.353. |
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| 34 | 34 | | (b) An offense under this section is a Class B misdemeanor. |
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| 35 | 35 | | SECTION 3. This Act takes effect September 1, 2017. |
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