89R3226 CS-D
By: Kolkhorst S.B. No. 504
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of certain financial information by
certain nonprofit organizations that enter into sizeable contracts
with political subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 2252, Government Code, is
amended by adding Section 2252.902 to read as follows:
Sec. 2252.902. CONTRACTS WITH NONPROFIT ORGANIZATIONS. (a)
In this section:
(1) "Economic development corporation" means:
(A) a Type A corporation governed by Chapter 504,
Local Government Code; and
(B) a Type B corporation governed by Chapter 505
of that code.
(2) "Nonprofit organization" means an organization
that is exempt from federal income tax under Section 501(a),
Internal Revenue Code of 1986, by being listed as an exempt
organization in Section 501(c) of that code. The term includes an
economic development corporation.
(3) "Political subdivision" means a county,
municipality, school district, or other special district or
subdivision of state government.
(b) This section applies only to a contract between a
nonprofit organization and a political subdivision that has an
annual value of more than $500,000.
(c) A nonprofit organization that enters into a contract
with a political subdivision shall provide the following
information to the political subdivision when the contract is
entered into, and shall update the information not later than the
30th day of each fiscal year of the organization until the contract
expires:
(1) the organization's operating budget for the
current fiscal year; and
(2) the salary of each employee of the organization
that exceeds the median salary of state employees.
(d) A political subdivision that maintains an Internet
website shall publish and maintain the information received under
Subsection (c) on the website.
(e) For the purposes of this section, the comptroller shall
determine the median salary of state employees each state fiscal
year. The comptroller's determination must be published on the
comptroller's Internet website not later than October 1 of each
year.
SECTION 2. Section 2252.902, Government Code, as added by
this Act, applies only to a contract entered into on or after the
effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.