Texas 2025 - 89th Regular

Texas House Bill HB4188

Filed
3/10/25  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the disclosure of certain financial information by certain nonprofit organizations that enter into sizeable contracts with political subdivisions.

Impact

The implementation of HB 4188 is poised to strengthen the existing framework regarding financial transparency for nonprofit organizations engaging in substantial contracts with political subdivisions. By enforcing these disclosure requirements, the bill aims to provide greater insight into how taxpayer money is utilized, thereby potentially fostering public trust. However, the bill specifically excludes certain types of nonprofits, such as electric cooperatives and water supply corporations, from these regulations, which raises questions about the uniformity of transparency standards across all nonprofit engagements with government entities.

Summary

House Bill 4188 addresses the disclosure of financial information by certain nonprofit organizations that enter into contracts valued over $500,000 with political subdivisions, such as counties and municipalities. The bill mandates that nonprofit organizations are required to submit their operating budgets and disclose salaries exceeding 200% of the median state employee salary. This requirement aims to enhance transparency and accountability in the use of public funds by ensuring that taxpayers have access to critical financial information related to significant contracts between nonprofits and public entities.

Sentiment

The sentiment surrounding HB 4188 appears largely positive, as it aligns with the growing demand for increased transparency in governmental financial dealings. Proponents of the bill, including advocates for accountability in public spending, view it as a necessary step towards safeguarding taxpayer interests. Nonetheless, some opponents may express concerns over the administrative burden it imposes on nonprofits, suggesting that the requirements could deter smaller organizations from entering into contracts with political subdivisions due to perceived complexities and compliance costs.

Contention

While HB 4188 is positioned as a measure to promote transparency, the exclusion of certain nonprofits from the disclosure requirements is a significant point of contention. Critics may argue that such exclusions undermine the bill's objectives and create an uneven playing field in terms of accountability. Additionally, there might be debates about the appropriateness of the financial thresholds set forth in the bill, and whether they adequately reflect the need for transparency in all nonprofit interactions with government agencies.

Texas Constitutional Statutes Affected

Government Code

  • Chapter 2252. Contracts With Governmental Entity
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

TX SB504

Identical Relating to the disclosure of certain financial information by certain nonprofit organizations that enter into sizeable contracts with political subdivisions.

Previously Filed As

TX HB2760

Relating to the disclosure of certain gifts, grants, contracts, and financial interests received from a foreign source by certain state agencies, public institutions of higher education, and state contractors, and to the approval and monitoring of employment-related foreign travel and activities by certain public institution of higher education employees; providing civil and administrative penalties.

TX SB2459

Relating to the disclosure of certain gifts, grants, contracts, and financial interests received from a foreign source by certain state agencies, public institutions of higher education, and state contractors, and to the approval and monitoring of employment-related foreign travel and activities by certain public institution of higher education employees; providing civil and administrative penalties.

TX HB2492

Relating to the disclosure of certain contracting information under the public information law.

TX SB680

Relating to the disclosure of certain contracting information under the public information law.

TX HB5222

Relating to consent to the creation of certain political subdivisions.

TX SB2349

Relating to consent to the creation of certain political subdivisions.

TX HB3002

Relating to the authority of certain political subdivisions to issue certificates of obligation.

TX SB469

Relating to the eligibility of certain political subdivisions to receive certain financial assistance administered by the Texas Water Development Board.

TX SB958

Relating to the prohibited release by a public agency of personal affiliation information regarding the members, supporters, or volunteers of or donors to certain nonprofit organizations; creating a criminal offense.

TX HB4585

Relating to the prohibited release by a public agency of personal affiliation information regarding the members, supporters, or volunteers of or donors to certain nonprofit organizations; creating a criminal offense.

Similar Bills

No similar bills found.