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