80th Legislature - 2007 Regular Session
Compiled for the Texas Association of Nonprofit Organizations by Richard W. Meyer, Attorney at Law
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 affecting nonprofits in the following areas*:
- Amendments to the Texas Non-Profit Corporation Act, Article 1396
- Amendments to Charitable Immunity statutes in Chapter 84, Civil Practices & Remedies Code
- Exemptions from state taxes now extended to nonprofit entities
- Nonprofit board, officer, employee and volunteer issues
- Criminal history checks
- Insurance coverage
- Employer notification
- Open meetings/ open records issues
- Public adviocacy / Ethics Commission (lobbying) issues
- Other nonprofit organization issues
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Amendments to the Texas Non-Profit Corporation Act, Chap. 22, Bus. Org. Code:
House Bill (HB) 1737 (=Senate Bill (SB) 854) **: Large clean-up bill for the entire body of corporation and business entity law; includes minor changes to the Texas Nonprofit Corporation Law, Chapter 22, Business Organizations Code
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:
HB 3043: Property tax exemption would be expressly granted to fraternal or lodge nonprofit organizations holding IRS Sec. 50l(c)(8) tax exemption
HB 3012 and HB 1296: Bills would make it easier for qualified local charitable organizations to have property declared tax-exempt
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
HB 1606: Extends the time that land intended for future church expansion can remain on the tax-exempt appraisal roll
SB 1087: Tax exemption for property owned by certain public radio stations
SB 1113: Tax exemption for property held by an organization for future low-income housing development
HB 1492: Would enhance (increase) the range of punishment for a person convicted of theft from a nonprofit organization
HB 3254: Requiring or compelling an employee to make a charitable contribution would constitute an illegal labor practice by the employer; written authorization required to withhold wages or otherwise require the contribution
SB 1478: Nonprofit organizations currently qualified to sponsor bingo would be able to contract for charitable poker tournaments operated by licensed operators
SB 1214: Alcoholic beverage license holders of different license levels could cooperate in sponsoring charitable events by donations of products, services, money or other things of value; TABC agency rules would have to clarify the details
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HB 1753 (=SB 1944): 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
HB 602: A proposed two-year ban on lobbying by former legislators would not ban such legislator’s representation of a nonprofit organization if no compensation is paid
HB 49, HB 193, HB 236, HB 262, HB 327, HB 451, HB 641 HB 936, SB 207, SB 980 : Various bills to increase the state minimum wage beyond the federal minimum wage; some bills would permit individual cities to set the minimum wage or increase the wage with an inflation index
HB 2396: Nonprofit consumer debt counseling services would be required to register with the state and post a bond as is currently required of for-profit businesses offering such services
HB 1130: Would protect persons who make good-faith formal complaints to government agencies or publicly protest the actions of another from frivolous suits intended to silence a critic in a public controversy
*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, background informarion, and current status at Texas Legislature Online, www.capitol.state.tx.us
Prepared by
RICHARD W. MEYER
Attorney at Law
Austin, Texas
(512) 451-8145
rmeyer@justice.com
