By: Kolkhorst, Middleton 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, or economic development corporation.
(4) "State agency" means a department, commission,
board, office, or other entity in the executive, legislative, or
judicial branch of state government. The term does not include an
institution of higher education or a university system as defined
by Section 61.003, Education Code.
(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) This section does not apply to a nonprofit organization
that is:
(1) an electric cooperative as defined by Section
11.003, Utilities Code;
(2) an organization certified as an independent
organization under Section 39.151, Utilities Code; or
(3) a water supply corporation created and operating
under Chapter 67, Water Code.
(d) 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 200 percent of the median salary of state employees.
(e) A political subdivision that maintains an Internet
website shall publish and maintain the information received under
Subsection (d) on the website.
(f) For the purposes of this section, the comptroller shall
determine the median salary paid each state fiscal year from the
state treasury to employees of a state agency. The comptroller's
determination must be published on the comptroller's Internet
website not later than October 1 of each year.
(g) The attorney general may bring an action for injunctive
relief against a political subdivision or an officer or employee of
a political subdivision to enforce this section.
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.