88R7425 JES-F
By: Geren H.B. No. 1957
A BILL TO BE ENTITLED
AN ACT
relating to the availability of financial information of nonprofit
corporations for public inspection.
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 and
audited financial statements described by Subsection (c) at the
corporation's registered or principal office in this state for at
least three years after the close of the fiscal year.
(b) Except as provided by Subsection (c), the [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) A corporation is exempt from Subsection (b) if:
(1) an independent certified public accountant has
conducted an audit of the corporation's financial statements for
the preceding fiscal year in accordance with generally accepted
auditing standards; and
(2) subject to Subsection (d), the corporation makes
its audited financial statements and the annual reports of the
corporation's financial activity kept under Subsection (a)
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 statement or report.
(d) A corporation shall make an audited financial statement
described by Subsection (c)(1) available to the public for
inspection and copying not later than the 180th day after the close
of the fiscal year to which the audit relates.
SECTION 2. This Act takes effect September 1, 2023.