| 1 | 1 | | 86R4773 JES-F |
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| 2 | 2 | | By: Dutton H.B. No. 2147 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the availability of financial information of nonprofit |
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| 8 | 8 | | corporations for public inspection. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 22.353, Business Organizations Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | Sec. 22.353. AVAILABILITY OF FINANCIAL INFORMATION FOR |
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| 13 | 13 | | PUBLIC INSPECTION. (a) A corporation shall keep records, books, |
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| 14 | 14 | | and annual reports of the corporation's financial activity and |
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| 15 | 15 | | audited financial statements described by Subsection (c) at the |
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| 16 | 16 | | corporation's registered or principal office in this state for at |
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| 17 | 17 | | least three years after the close of the fiscal year. |
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| 18 | 18 | | (b) Except as provided by Subsection (c), the [The] |
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| 19 | 19 | | corporation shall make the records, books, and reports available to |
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| 20 | 20 | | the public for inspection and copying at the corporation's |
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| 21 | 21 | | registered or principal office during regular business hours. The |
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| 22 | 22 | | corporation may charge a reasonable fee for preparing a copy of a |
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| 23 | 23 | | record or report. |
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| 24 | 24 | | (c) A corporation is exempt from Subsection (b) if: |
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| 25 | 25 | | (1) an independent certified public accountant has |
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| 26 | 26 | | conducted an audit of the corporation's financial statements for |
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| 27 | 27 | | the preceding fiscal year in accordance with generally accepted |
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| 28 | 28 | | auditing standards; and |
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| 29 | 29 | | (2) subject to Subsection (d), the corporation makes |
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| 30 | 30 | | its audited financial statements and the annual reports of the |
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| 31 | 31 | | corporation's financial activity kept under Subsection (a) |
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| 32 | 32 | | available to the public for inspection and copying at the |
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| 33 | 33 | | corporation's registered or principal office during regular |
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| 34 | 34 | | business hours. The corporation may charge a reasonable fee for |
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| 35 | 35 | | preparing a copy of a statement or report. |
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| 36 | 36 | | (d) A corporation shall make an audited financial statement |
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| 37 | 37 | | described by Subsection (c)(1) available to the public for |
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| 38 | 38 | | inspection and copying not later than the 180th day after the close |
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| 39 | 39 | | of the fiscal year to which the audit relates. |
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| 40 | 40 | | SECTION 2. This Act takes effect September 1, 2019. |
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