Bill Text: TX SB504 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the disclosure of certain financial information by certain nonprofit organizations that enter into sizeable contracts with political subdivisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-27 - Scheduled for public hearing on . . . [SB504 Detail]
Download: Texas-2025-SB504-Introduced.html
| 89R3226 CS-D | ||
| By: Kolkhorst | S.B. No. 504 | |
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| 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. | ||
