Legislative Advocacy

80th Texas Legislature, 2007 Regular Session
Summary of Issues Affecting Nonprofit Organizations
Compiled for the Texas Association of Nonprofit Organizations by Richard W. Meyer, Attorney at Law (as of 2/23/07 )

Access pending bills at Texas Legislature Online.

Introduction:                                                                                                                    

In every session of the Texas Legislature, numerous bills are introduced that directly or indirectly affect nonprofit organizations.  The following summary indicates bills of most interest and concern to leaders in the nonprofit sector in Texas during the 2007 regular session and takes into account the following factors:  Whether a proposed bill strengthens nonprofit organization viability under Texas law or unduly burdens or threatens their status;  whether the legal liability of nonprofit board members or officers, staff or volunteers is increased; whether current “charitable immunity” and “good faith” legal protections remain in place; whether laws governing nonprofits are necessary, understandable and based on reasonable public policy concerns; whether nonprofit advocacy is protected;  whether ongoing nonprofit organization operations and finances are complicated by new governmental regulations; and whether nonprofit organization disclosure and accountability requirements remain reasonable and balanced.

Bills in the 2007 legislature affect nonprofits in the following areas:*

Amendments to the Texas Non-Profit Corporation Law, Chap. 22, Bus. Org. Code:

H.B. 1737:  Large clean-up bill for the entire body of corporation and business entity law; includes minor changes to the Texas Nonprofit Corporation Law, Chap. 22, B.O.C.

Note:  Effective Jan. 1, 2006, all of  former Article 1396 will be found in Chapter 22, Business Organizations Code.

Amendments to Charitable Immunity statutes in Chapter 84, Civil Practices & Remedies Code:

 No bills at present

Exemptions from state taxes now extended to nonprofit entities:
                       
HB 36:  A top-level commission would periodically review all state taxes, including tax exemptions enjoyed by nonprofit entities, and recommend changes
            Status: heard and pending in House Ways and Means Committee  

HB 1701:  Would subject all state tax exemptions enjoyed by nonprofit entities to the “sunset” process; every six years exemptions would expire unless re-authorized by the legislature

HB 365:  Clarifies exemption of charitable organizations in fund-raising auction activities
 

Nonprofit board, officer, employee and volunteer issues:

HB 1492: Would enhance (increase) the range of punishment for a person convicted of theft from a nonprofit organization

HB 860: Amendments to the Uniform Prudent Management of Institutional Funds Act, which affects management standards for endowment funds held for charitable use

Open meetings/open records issues:

HB 1630:  Nonprofit property owners associations statewide would be subject to current state open meetings (Chap. 551, Gov. Code) and open records (Chap. 552) laws and practices, with penalties and liabilities for noncompliance

Public advocacy/Ethics Commission (lobbying) issues:

HB 1753:  Government entities would be limited in their use of public funds paid to join state associations that engage in advocacy or lobbying activities

HB 1607: A teacher or professional organization may not disseminate false, misleading or incomplete information in its advocacy; A.G. would enforce the law; penalties imposed

HB 1588: Communications for an advocacy purpose or from a lobbyist would include those directed to any administrative action or decision contemplated by the executive branch of Texas government

 
Nonprofit social service organization issues:

HB 49, HB 193, HB 236, HB 262, HB 327, HB 451, HB 641 HB 936, SB 207 : Various bills to increase the state minimum wage beyond the federal minimum wage; some bills would permit individual cities to set the minimum wage

HB 289 (=SB 200**):  Expands participation by faith-based nonprofits in state funding and programs; each state agency would designate a compliance official to implement faith-based initiatives and opportunities
 
  _______________________________________________________________________

*Above list does not include bills introduced relating to the following: Nonprofit hospitals, health care or nursing institutions and plans; credit unions; electric or rural cooperatives; condo/property owners associations; private and charter schools and colleges; cemetery corporations; local bingo and gambling sponsors; insurance plans/HMOs; quasi-public nonprofit entities.      

**Many bills have an identical “companion” bill in the other house, bearing a different bill number.  Access bills at Texas Legislature Online, www.capitol.state.tx.us

Prepared by
RICHARD W. MEYER
Attorney at Law
Austin, Texas
(512) 413-0530
rmeyer@justice.com