| 1 | 1 | | 89R3226 CS-D |
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| 2 | 2 | | By: Troxclair H.B. No. 4188 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the disclosure of certain financial information by |
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| 10 | 10 | | certain nonprofit organizations that enter into sizeable contracts |
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| 11 | 11 | | with political subdivisions. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Subchapter Z, Chapter 2252, Government Code, is |
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| 14 | 14 | | amended by adding Section 2252.902 to read as follows: |
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| 15 | 15 | | Sec. 2252.902. CONTRACTS WITH NONPROFIT ORGANIZATIONS. (a) |
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| 16 | 16 | | In this section: |
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| 17 | 17 | | (1) "Economic development corporation" means: |
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| 18 | 18 | | (A) a Type A corporation governed by Chapter 504, |
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| 19 | 19 | | Local Government Code; and |
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| 20 | 20 | | (B) a Type B corporation governed by Chapter 505 |
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| 21 | 21 | | of that code. |
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| 22 | 22 | | (2) "Nonprofit organization" means an organization |
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| 23 | 23 | | that is exempt from federal income tax under Section 501(a), |
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| 24 | 24 | | Internal Revenue Code of 1986, by being listed as an exempt |
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| 25 | 25 | | organization in Section 501(c) of that code. The term includes an |
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| 26 | 26 | | economic development corporation. |
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| 27 | 27 | | (3) "Political subdivision" means a county, |
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| 28 | 28 | | municipality, school district, or other special district or |
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| 29 | 29 | | subdivision of state government. |
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| 30 | 30 | | (b) This section applies only to a contract between a |
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| 31 | 31 | | nonprofit organization and a political subdivision that has an |
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| 32 | 32 | | annual value of more than $500,000. |
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| 33 | 33 | | (c) A nonprofit organization that enters into a contract |
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| 34 | 34 | | with a political subdivision shall provide the following |
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| 35 | 35 | | information to the political subdivision when the contract is |
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| 36 | 36 | | entered into, and shall update the information not later than the |
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| 37 | 37 | | 30th day of each fiscal year of the organization until the contract |
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| 38 | 38 | | expires: |
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| 39 | 39 | | (1) the organization's operating budget for the |
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| 40 | 40 | | current fiscal year; and |
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| 41 | 41 | | (2) the salary of each employee of the organization |
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| 42 | 42 | | that exceeds the median salary of state employees. |
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| 43 | 43 | | (d) A political subdivision that maintains an Internet |
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| 44 | 44 | | website shall publish and maintain the information received under |
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| 45 | 45 | | Subsection (c) on the website. |
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| 46 | 46 | | (e) For the purposes of this section, the comptroller shall |
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| 47 | 47 | | determine the median salary of state employees each state fiscal |
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| 48 | 48 | | year. The comptroller's determination must be published on the |
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| 49 | 49 | | comptroller's Internet website not later than October 1 of each |
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| 50 | 50 | | year. |
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| 51 | 51 | | SECTION 2. Section 2252.902, Government Code, as added by |
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| 52 | 52 | | this Act, applies only to a contract entered into on or after the |
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| 53 | 53 | | effective date of this Act. |
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| 54 | 54 | | SECTION 3. This Act takes effect September 1, 2025. |
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