S.B. No. 1233
  relating to authorizing certain distributions of income from a
  nonprofit corporation to members of the corporation who are certain
  nonprofit corporations.
         SECTION 1.  Section 22.001(5), Business Organizations Code,
  is amended to read as follows:
               (5)  "Nonprofit corporation" means a corporation no
  part of the income of which is distributable to a member, director,
  or officer of the corporation, except as provided by Section
         SECTION 2.  Section 22.053, Business Organizations Code, is
  amended to read as follows:
         Sec. 22.053.  DIVIDENDS PROHIBITED. Except as provided by
  Section 22.054, a [A] dividend may not be paid to, and no part of the
  income of a corporation may be distributed to, the corporation's
  members, directors, or officers.
         SECTION 3.  Section 22.054, Business Organizations Code, is
  amended to read as follows:
  corporation may:
               (1)  pay compensation in a reasonable amount to the
  members, directors, or officers of the corporation for services
               (2)  confer benefits on the corporation's members in
  conformity with the corporation's purposes; [and]
               (3)  make distributions to the corporation's members on
  winding up and termination to the extent authorized by this
  chapter; and
               (4)  make distributions of its income to the
  corporation's members who are nonprofit corporations organized
  under this code and who are exempt from income taxation under
  Section 501(a), Internal Revenue Code of 1986, by being listed
  under Section 501(c)(3) of that code, if:
                     (A)  the distributions are made in accordance with
  the purpose or purposes of the corporation as stated in the
  certificate of formation and with the fiduciary responsibilities of
  the board of directors, including the duty to safeguard restricted
  funds for their intended purposes; and
                     (B)  after the distributions are complete:
                           (i)  the corporation would be able to pay the
  corporation's debts as they become due in the usual course of its
  activities; and
                           (ii)  the corporation's total assets would
  at least equal the sum of its total liabilities.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1233 passed the Senate on
  April 30, 2015, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1233 passed the House on
  May 12, 2015, by the following vote:  Yeas 144, Nays 0, two
  present not voting.
  Chief Clerk of the House