HB4188 - Relating to the disclosure of certain financial information by certain nonprofit organizations that enter into sizeable contracts with political subdivisions.

  89R17178 CS-D     By: Troxclair H.B. No. 4188     Substitute the following for H.B. No. 4188:     By:  Bell of Montgomery C.S.H.B. No. 4188       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.