87R10660 JES-D
By: Campos H.B. No. 3100
A BILL TO BE ENTITLED
AN ACT
relating to requirements for governmental contracts with nonprofit
organizations regarding the use of money provided under those
contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 2252, Government Code, is
amended by adding Section 2252.909 to read as follows:
Sec. 2252.909. CONTRACTS WITH NONPROFIT ORGANIZATIONS. (a)
In this section:
(1) "Governmental entity" has the meaning assigned by
Section 2251.001.
(2) "Nonprofit organization" means an organization
exempt from federal income taxation under Section 501(a), Internal
Revenue Code of 1986, as an organization described by Section
501(c)(3) of that code.
(b) This section applies only to a contract to be paid
partly or wholly from public funds between a governmental entity
and a nonprofit organization.
(c) A governmental entity may not enter into a contract with
a nonprofit organization unless the contract contains a written
verification from the organization that the organization will not
use more than 20 percent of the money provided under the contract
for an administrative purpose, including for payment of the
organization's employee or officer salaries.
SECTION 2. The change in law made by this Act applies only
to a contract entered into on or after the effective date of this
Act. A contract entered into before the effective date of this Act
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2021.