87R10660 JES-D     By: Campos H.B. No. 3100       A BILL TO BE ENTITLED   AN ACT   relating to requirements for governmental contracts with nonprofit   organizations regarding the use of money provided under those   contracts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter Z, Chapter 2252, Government Code, is   amended by adding Section 2252.909 to read as follows:          Sec. 2252.909.  CONTRACTS WITH NONPROFIT ORGANIZATIONS. (a)   In this section:                (1)  "Governmental entity" has the meaning assigned by   Section 2251.001.                (2)  "Nonprofit organization" means an organization   exempt from federal income taxation under Section 501(a), Internal   Revenue Code of 1986, as an organization described by Section   501(c)(3) of that code.          (b)  This section applies only to a contract to be paid   partly or wholly from public funds between a governmental entity   and a nonprofit organization.          (c)  A governmental entity may not enter into a contract with   a nonprofit organization unless the contract contains a written   verification from the organization that the organization will not   use more than 20 percent of the money provided under the contract   for an administrative purpose, including for payment of the   organization's employee or officer salaries.          SECTION 2.  The change in law made by this Act applies only   to a contract entered into on or after the effective date of this   Act. A contract entered into before the effective date of this Act   is governed by the law as it existed immediately before the   effective date of this Act, and that law is continued in effect for   that purpose.          SECTION 3.  This Act takes effect September 1, 2021.