| 1 | 1 | | 88R7425 JES-F |
|---|
| 2 | 2 | | By: King S.B. No. 835 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the availability of financial information of nonprofit |
|---|
| 8 | 8 | | corporations for public inspection. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Section 22.353, Business Organizations Code, is |
|---|
| 11 | 11 | | amended to read as follows: |
|---|
| 12 | 12 | | Sec. 22.353. AVAILABILITY OF FINANCIAL INFORMATION FOR |
|---|
| 13 | 13 | | PUBLIC INSPECTION. (a) A corporation shall keep records, books, |
|---|
| 14 | 14 | | and annual reports of the corporation's financial activity and |
|---|
| 15 | 15 | | audited financial statements described by Subsection (c) at the |
|---|
| 16 | 16 | | corporation's registered or principal office in this state for at |
|---|
| 17 | 17 | | least three years after the close of the fiscal year. |
|---|
| 18 | 18 | | (b) Except as provided by Subsection (c), the [The] |
|---|
| 19 | 19 | | corporation shall make the records, books, and reports available to |
|---|
| 20 | 20 | | the public for inspection and copying at the corporation's |
|---|
| 21 | 21 | | registered or principal office during regular business hours. The |
|---|
| 22 | 22 | | corporation may charge a reasonable fee for preparing a copy of a |
|---|
| 23 | 23 | | record or report. |
|---|
| 24 | 24 | | (c) A corporation is exempt from Subsection (b) if: |
|---|
| 25 | 25 | | (1) an independent certified public accountant has |
|---|
| 26 | 26 | | conducted an audit of the corporation's financial statements for |
|---|
| 27 | 27 | | the preceding fiscal year in accordance with generally accepted |
|---|
| 28 | 28 | | auditing standards; and |
|---|
| 29 | 29 | | (2) subject to Subsection (d), the corporation makes |
|---|
| 30 | 30 | | its audited financial statements and the annual reports of the |
|---|
| 31 | 31 | | corporation's financial activity kept under Subsection (a) |
|---|
| 32 | 32 | | available to the public for inspection and copying at the |
|---|
| 33 | 33 | | corporation's registered or principal office during regular |
|---|
| 34 | 34 | | business hours. The corporation may charge a reasonable fee for |
|---|
| 35 | 35 | | preparing a copy of a statement or report. |
|---|
| 36 | 36 | | (d) A corporation shall make an audited financial statement |
|---|
| 37 | 37 | | described by Subsection (c)(1) available to the public for |
|---|
| 38 | 38 | | inspection and copying not later than the 180th day after the close |
|---|
| 39 | 39 | | of the fiscal year to which the audit relates. |
|---|
| 40 | 40 | | SECTION 2. This Act takes effect September 1, 2023. |
|---|