Sec. 2.010. PROHIBITED ACTIVITIES OF NONPROFIT CORPORATION. A nonprofit corporation may not be organized or registered under this code to conduct its affairs in this state to:
(1) engage in or operate as a group hospital service, rural credit union, agricultural and livestock pool, mutual loan corporation, cooperative association under Chapter 251, cooperative credit association, farmers' cooperative society, Co-operative Marketing Act corporation, rural electric cooperative corporation, telephone cooperative corporation, or fraternal organization operating under the lodge system and incorporated under Subchapter C, Chapter 23;
(2) engage in water supply or sewer service except as an entity incorporated under Chapter 67, Water Code; or
(3) engage in a business or activity that may not be engaged in by a nonprofit corporation without first obtaining a license under the laws of this state and a license to engage in that business or activity cannot lawfully be granted to the corporation.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Amended by:
Acts 2005, 79th Leg., Ch. 64 (H.B. 1319), Sec. 4, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 688 (H.B. 1737), Sec. 6, eff. September 1, 2007.
Structure Texas Statutes
Chapter 2 - Purposes and Power of Domestic Entity
Subchapter A. Purposes of Domestic Entity
Section 2.001. General Scope of Permissible Purposes
Section 2.002. Purposes of Nonprofit Entity
Section 2.003. General Prohibited Purposes
Section 2.004. Limitation on Purposes of Professional Entity
Section 2.005. Limitation in Governing Documents
Section 2.007. Additional Prohibited Activities of For-Profit Corporation
Section 2.008. Nonprofit Corporations
Section 2.009. Permissible Purpose of Nonprofit Corporation Related to Organized Labor
Section 2.010. Prohibited Activities of Nonprofit Corporation
Section 2.011. Purposes of Cooperative Association
Section 2.012. Limitation on Purposes of Real Estate Investment Trust