VERNON'S TEXAS CIVIL STATUTES - CHAPTER 9

Art. 1396-2.23B. Corporations Assisting State Agencies

A. In this Article state agency means:

(1) a board, commission, department, office, or other entity that is in the executive branch of state government and that was created by the constitution or a statute of the State, including an institution of higher education as defined by Section 61.003, Texas Education Code, as amended;

(2) the legislature or a legislative agency; or

(3) the Supreme Court, the Court of Criminal Appeals, a court of appeals, or the State Bar of Texas or another state judicial agency.

B. The books and records of a corporation except a bona fide alumni association are subject to audit at the discretion of the State Auditor if both of the following obtain:

(1) the corporation's charter specifically dedicates the corporation's activities to the benefit of a particular agency of state government; and

(2) a board member, officer, or employee of the same agency of state government sits on the board of directors of the corporation in other than an ex officio, nonvoting, advisory capacity.