The bill, H.B. No. 4188, introduces new requirements for nonprofit organizations that enter into contracts valued over $500,000 with political subdivisions in Texas. It adds Section 2252.902 to the Government Code, which defines key terms such as "nonprofit organization," "political subdivision," and "state agency." Nonprofits are required to disclose their operating budget and the salaries of employees earning more than 200% of the median state employee salary when entering into a contract, with updates required annually. Additionally, political subdivisions must publish this information on their websites.

Certain nonprofit organizations, including electric cooperatives and water supply corporations, are exempt from these requirements. The bill also empowers the attorney general to seek injunctive relief to enforce compliance. 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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