80th Texas Legislature - 2007

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.

•  No bills at present regarding liability of volunteers

• HB 36:  A top-level commission would periodically review all state taxes, including tax exemptions enjoyed by nonprofit entities, and recommend changes
  
• 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 860: Amendments to the Uniform Prudent Management of Institutional Funds Act, which affects management standards for endowment funds held for charitable purposes
• 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 operator
• 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
  

• 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

• 
  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 Texas government
• 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 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 within state government
• 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
  

Other bills:

*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