S.B. No. 504, introduced by Kolkhorst and others, aims to enhance transparency regarding financial information disclosed by nonprofit organizations that enter into significant contracts with political subdivisions. The bill adds Section 2252.902 to the Government Code, which defines key terms such as "nonprofit organization," "political subdivision," and "state agency." It stipulates that contracts valued over $500,000 between nonprofit organizations and political subdivisions require the nonprofit to provide its operating budget and the salaries of employees earning more than 200% of the median state employee salary. This information must be updated annually and published on the political subdivision's website.

Additionally, the bill exempts certain nonprofit organizations, including electric cooperatives and water supply corporations, from these requirements. The comptroller is tasked with determining the median salary of state employees, which must be published annually. The attorney general is granted the authority to enforce compliance through injunctive relief. The provisions of this bill will apply only to contracts entered into on or after its effective date of September 1, 2025.

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