Bill Text: TX SB1463 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to the availability of financial information of nonprofit corporations for public inspection.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2019-05-16 - Committee report sent to Calendars [SB1463 Detail]
Download: Texas-2019-SB1463-Comm_Sub.html
| By: Hughes | S.B. No. 1463 | |
| (Dutton) | ||
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| relating to the availability of financial information of nonprofit | ||
| corporations for public inspection. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 22.353, Business Organizations Code, is | ||
| amended by adding Subsections (a-1), (c), (d), (e), (f), and (g) to | ||
| read as follows: | ||
| (a-1) For purposes of this section, "records, books, and | ||
| annual reports" of a corporation's financial activity: | ||
| (1) include: | ||
| (A) financial records required to be maintained | ||
| and annual financial reports prepared or approved under Section | ||
| 22.352; | ||
| (B) any document the Internal Revenue Service | ||
| requires a corporation that is tax exempt under Section 501(a), | ||
| Internal Revenue Code of 1986, by being listed as an exempt entity | ||
| under Section 501(c) of that code, to make available to the public; | ||
| (C) documents containing salary or other | ||
| information related to the compensation of each employee who | ||
| receives more than $75,000 annually from the corporation; | ||
| (D) other annual reports produced by the | ||
| corporation; | ||
| (E) financial statements, including audited | ||
| financial statements; and | ||
| (F) management representation letters prepared | ||
| in connection with an audit of the corporation; and | ||
| (2) do not include: | ||
| (A) contracts and agreements, including | ||
| operating and settlement agreements; | ||
| (B) employee personnel files; | ||
| (C) donor names; | ||
| (D) sponsor information; or | ||
| (E) sensitive personal information, including | ||
| addresses, bank account numbers, and social security numbers. | ||
| (c) If a corporation anticipates that the fee to be charged | ||
| for preparing a copy of a record or report under Subsection (b) will | ||
| exceed $100, the corporation may provide notice to the person | ||
| requesting the copy requiring the person to pay a deposit of all or | ||
| a portion of the anticipated fee for preparing the copy. The | ||
| corporation may treat all requests for copies received by the | ||
| corporation during seven consecutive calendar days from a single | ||
| person, mailing address, or e-mail address as a single request for | ||
| purposes of calculating the anticipated fee under this subsection. | ||
| On the date a corporation provides a copy or copies of a record or | ||
| report for which the corporation accepted a deposit under this | ||
| subsection, the corporation shall refund to the requestor the | ||
| difference between the accepted deposit and the actual costs | ||
| incurred by the corporation in providing the copy or copies. | ||
| (d) A requestor who fails to pay a deposit required under | ||
| Subsection (c) not later than the 15th business day after the date | ||
| the requestor receives notice of the deposit from the corporation | ||
| is considered to have withdrawn the request for the copy or copies | ||
| under this section. A person whose request is considered withdrawn | ||
| under this subsection is not precluded from submitting a new | ||
| request to the corporation for the same records or reports. | ||
| (e) A corporation may establish a reasonable monthly limit | ||
| of not less than 15 hours on the total amount of hours per calendar | ||
| month that the corporation's personnel may spend responding to two | ||
| or more requests for copies submitted to the corporation by a single | ||
| requestor during a calendar month. | ||
| (f) Each time a corporation that establishes a monthly time | ||
| limit under Subsection (e) complies with a request for a copy or | ||
| copies under this section, the corporation shall provide to the | ||
| requestor a written statement of the monthly hour limit established | ||
| under that subsection, the amount of time corporation personnel | ||
| spent complying with the request, and the cumulative amount of time | ||
| spent by corporation personnel complying with all requests from | ||
| that requestor during the applicable calendar month in which the | ||
| request is made. The corporation may not include the amount of time | ||
| spent by personnel in preparing a written statement required by | ||
| this subsection in calculating the amount of time spent complying | ||
| with a request. A corporation that provides a written statement to | ||
| a requestor as required by this subsection is not required to | ||
| respond to additional requests for copies from a requestor who has | ||
| exceeded the monthly time limit until the following calendar month. | ||
| (g) If a corporation determines that all or part of a | ||
| person's request for copies is duplicative of a request for which | ||
| the corporation has previously provided copies to that person, the | ||
| corporation is not required to provide the duplicative copies to | ||
| the requestor and shall certify to the requestor that copies of all | ||
| or part of the requested record or report, as applicable, were | ||
| previously provided to the requestor and that the corporation is | ||
| not required to provide the duplicative copies to the requestor. | ||
| SECTION 2. This Act takes effect September 1, 2019. | ||
