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Committee passes SB142 allowing for-profit corporations to convert to nonprofit; amendment adds clarifying punctuation
Summary
Senator Teague presented SB142 to permit for-profit corporations to convert to nonprofit status; the committee adopted a minor amendment (adding a period to clarify language) and passed the bill as amended. Methodist Health requested the change, and the fiscal note was described as revenue neutral.
Senator Teague presented SB142 to the Senate Insurance & Commerce committee, describing it simply as a measure that allows a for-profit corporation to convert to a nonprofit. He said he had been asked to carry the measure by Methodist Health.
The committee adopted an amendment that inserts a period at the end of line 27 to clarify statutory punctuation; the sponsor said association attorneys and the Department of Finance had reviewed it and the amendment addressed a technical drafting issue. A senator asked about broader applications outside health care; Teague said the change would apply to any for-profit that seeks nonprofit status and that he had not received objections from stakeholders.
A fiscal impact statement on the bill’s paperwork described revenue as "estimate revenue neutral." A motion to pass the bill as amended was made and the committee approved SB142 as amended by voice vote.
