The bill, S.B. No. 504, introduces new requirements for nonprofit organizations that enter into contracts valued over $500,000 with political subdivisions, such as counties and municipalities. It adds Section 2252.902 to the Government Code, which mandates that these organizations disclose their operating budget for the current fiscal year and the salaries of employees exceeding the median salary of state employees. This information must be provided at the time the contract is signed and updated annually within 30 days of the organization's fiscal year. Additionally, political subdivisions with websites are required to publish and maintain this information online.

The bill also defines key terms, including "nonprofit organization," "political subdivision," and "economic development corporation," to clarify the scope of the legislation. The comptroller is tasked with determining the median salary of state employees annually, with the results published on their website by October 1 each year. The provisions of this bill will apply only to contracts entered into on or after its effective date, September 1, 2025.

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