| 1 | 1 | | 87R10660 JES-D |
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| 2 | 2 | | By: Campos H.B. No. 3100 |
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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 requirements for governmental contracts with nonprofit |
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| 8 | 8 | | organizations regarding the use of money provided under those |
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| 9 | 9 | | contracts. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter Z, Chapter 2252, Government Code, is |
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| 12 | 12 | | amended by adding Section 2252.909 to read as follows: |
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| 13 | 13 | | Sec. 2252.909. CONTRACTS WITH NONPROFIT ORGANIZATIONS. (a) |
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| 14 | 14 | | In this section: |
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| 15 | 15 | | (1) "Governmental entity" has the meaning assigned by |
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| 16 | 16 | | Section 2251.001. |
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| 17 | 17 | | (2) "Nonprofit organization" means an organization |
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| 18 | 18 | | exempt from federal income taxation under Section 501(a), Internal |
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| 19 | 19 | | Revenue Code of 1986, as an organization described by Section |
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| 20 | 20 | | 501(c)(3) of that code. |
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| 21 | 21 | | (b) This section applies only to a contract to be paid |
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| 22 | 22 | | partly or wholly from public funds between a governmental entity |
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| 23 | 23 | | and a nonprofit organization. |
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| 24 | 24 | | (c) A governmental entity may not enter into a contract with |
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| 25 | 25 | | a nonprofit organization unless the contract contains a written |
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| 26 | 26 | | verification from the organization that the organization will not |
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| 27 | 27 | | use more than 20 percent of the money provided under the contract |
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| 28 | 28 | | for an administrative purpose, including for payment of the |
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| 29 | 29 | | organization's employee or officer salaries. |
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| 30 | 30 | | SECTION 2. The change in law made by this Act applies only |
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| 31 | 31 | | to a contract entered into on or after the effective date of this |
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| 32 | 32 | | Act. A contract entered into before the effective date of this Act |
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| 33 | 33 | | is governed by the law as it existed immediately before the |
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| 34 | 34 | | effective date of this Act, and that law is continued in effect for |
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| 35 | 35 | | that purpose. |
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| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2021. |
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