H.B. No. 903
    1-1                                AN ACT
    1-2  relating to payroll deductions for state employees for credit union
    1-3  membership and for contributions to charitable organizations;
    1-4  making an appropriation.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Article 6813g, Revised Statutes, is amended to
    1-7  read as follows:
    1-8        Art. 6813g.  Deductions for supplemental benefits for state
    1-9  employees
   1-10        Sec. 1.  Definitions.  In this article "state agency" means a
   1-11  department, commission, board, office, or other agency of any
   1-12  branch of state government, including an institution of higher
   1-13  education as defined by Section 61.003, Education Code.
   1-14        Sec. 2.  Deduction authorized.  In addition to deductions for
   1-15  coverage under the Texas Employees Uniform Group Insurance Benefits
   1-16  Act (Article 3.50-2, Vernon's Texas Insurance Code) or other law,
   1-17  an employee of a state agency may authorize in writing a deduction
   1-18  each pay period from the employee's salary or wage payment for
   1-19  coverage of the employee under a supplemental optional benefits
   1-20  program, including a program of permanent life insurance,
   1-21  catastrophic illness insurance, disability insurance, or prepaid
   1-22  legal services, that may be made if the program has been approved
   1-23  by the Employees Retirement System of Texas under Section 3 of this
    2-1  article.  An employee may also authorize a deduction for payment to
    2-2  a credit union to be credited to a share or deposit account of that
    2-3  employee.  The written authorization must direct the comptroller
    2-4  or, if applicable, the appropriate financial officer of an
    2-5  institution of higher education to transfer the withheld funds to
    2-6  the program or credit union designated by the employee.  The
    2-7  comptroller or financial officer shall comply with the direction.
    2-8        Sec. 3.  Eligible program.  The Employees Retirement System
    2-9  of Texas shall designate supplemental benefit programs that are
   2-10  eligible to receive deductions under Section 2 of this article and
   2-11  that promote the interests of the state and state agency employees.
   2-12  No designation is necessary for credit union deductions.
   2-13        Sec. 4.  Form; duration.  (a)  A <The> payroll deduction must
   2-14  be accomplished in a form and manner prescribed by the comptroller
   2-15  or the appropriate financial officer of an institution of higher
   2-16  education.
   2-17        (b)  The employee or the employee's designee may change or
   2-18  revoke a <the> deduction authorization by delivering written notice
   2-19  of the change or revocation to the comptroller or financial
   2-20  officer, as appropriate.  An <The> authorization is effective until
   2-21  the date the comptroller or financial officer receives the notice.
   2-22  The notice must be given in a form and manner prescribed by the
   2-23  comptroller or financial officer.
   2-24        Sec. 5.  Voluntary participation.  Participation by employees
   2-25  in the supplemental optional benefits or credit union deduction
    3-1  programs <program> authorized by this article is voluntary.
    3-2        Sec. 6.  Administrative fee.  (a)  The state may withhold
    3-3  from the employee's salary or wage payment an administrative fee
    3-4  for making the deduction under this article.  The fee may not
    3-5  exceed the actual administrative cost of making the deduction or
    3-6  the highest fee charged by the state for making a similar
    3-7  deduction, whichever amount is less.  The state shall allocate and
    3-8  pay to each employing state agency that incurs costs in
    3-9  administering this article the administrative fees on a
   3-10  proportional basis.  Any administrative fees withheld under this
   3-11  section are appropriated to the comptroller and the employing state
   3-12  agencies.
   3-13        (b)  Institutions of higher education that are authorized to
   3-14  operate a payroll system reimbursable from the state treasury may
   3-15  withhold from the employee's salary or wage payment an
   3-16  administrative fee for making the deduction under this article.
   3-17  The fee may not exceed the actual administrative cost of making the
   3-18  deduction or the highest fee charged for making a similar
   3-19  deduction, whichever amount is less.
   3-20        SECTION 2.  Title 117, Revised Statutes, is amended by adding
   3-21  Article 6813h to read as follows:
   3-22        Art. 6813h.  PAYROLL DEDUCTIONS FOR CHARITABLE CONTRIBUTIONS
   3-23        Sec. 1.  DEFINITIONS.  In this article:
   3-24              (1)  "Campaign manager" means a local campaign manager
   3-25  or state campaign manager.
    4-1              (2)  "Charitable organization" means an organization
    4-2  that:
    4-3                    (A)  is organized for charitable purposes under
    4-4  the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
    4-5  Vernon's Texas Civil Statutes) and its subsequent amendments or
    4-6  holds a certificate of authority issued under that Act;
    4-7                    (B)  is exempt from taxation under Section 501(a)
    4-8  of the Internal Revenue Code of 1986 as an organization described
    4-9  in Section 501(c)(3) of that code and to which contributions are
   4-10  deductible for income tax purposes under Section 170 of that code;
   4-11                    (C)  fully complies with all applicable federal
   4-12  nondiscrimination law, including Chapter 21, Title 42, United
   4-13  States Code;
   4-14                    (D)  fully complies with all state statutes and
   4-15  rules relating to charitable organizations; and
   4-16                    (E)  is not a private foundation.
   4-17              (3)  "Direct services" means providing funds or
   4-18  programs for health and human services that directly benefit the
   4-19  recipients.
   4-20              (4)  "Eligible charitable organization" means a
   4-21  charitable organization that is determined to be eligible to
   4-22  participate in the state employee charitable contribution campaign
   4-23  as provided by Section 10 of this article.
   4-24              (5)  "Federated community campaign organization" means
   4-25  a federation or fund that:
    5-1                    (A)  has demonstrated expertise in conducting
    5-2  workplace charitable campaigns; and
    5-3                    (B)  distributes funds raised through a
    5-4  cooperative community campaign to at least five agencies that
    5-5  provide direct services to residents of the campaign area.
    5-6              (6)  "Federation or fund" means an umbrella fundraising
    5-7  entity that:
    5-8                    (A)  is a charitable organization;
    5-9                    (B)  acts as an agent for at least five
   5-10  charitable organizations;
   5-11                    (C)  is not organized exclusively to solicit
   5-12  contributions from state employees; and
   5-13                    (D)  is supported by voluntary contributions by
   5-14  the public and is:
   5-15                          (i)  incorporated in this state and has an
   5-16  established physical presence in this state in the form of an
   5-17  office or service facility that is staffed at least 20 hours a
   5-18  week; or
   5-19                          (ii)  incorporated outside this state,
   5-20  includes at least 10 affiliated charitable organizations, has
   5-21  existed at least three years, and participates in state employee
   5-22  charitable campaigns in at least 10 other states.
   5-23              (7)  "Health and human services" means services
   5-24  provided by a charitable organization that:
   5-25                    (A)  benefit citizens of this state, including
    6-1  children, youth, adults, elderly individuals, ill or infirm
    6-2  individuals, or individuals with a mental or physical disability;
    6-3  and
    6-4                    (B)  consist of:
    6-5                          (i)  human care, medical or other research
    6-6  in the field of human health, education, social adjustment, or
    6-7  rehabilitation;
    6-8                          (ii)  relief for victims of natural
    6-9  disaster or other emergencies; or
   6-10                          (iii)  assistance to impoverished
   6-11  individuals in need of food, shelter, clothing, or other basic
   6-12  needs.
   6-13              (8)  "Indirect services" means health and human
   6-14  services that:
   6-15                    (A)  are not direct services; and
   6-16                    (B)  demonstrably benefit citizens of this state.
   6-17              (9)  "Institution of higher education" has the meaning
   6-18  assigned by Section 61.003, Education Code.
   6-19              (10)  "International federation or fund" means a
   6-20  federation or fund whose affiliated charities provide direct and
   6-21  substantial health and human services to needy individuals of other
   6-22  nations.
   6-23              (11)  "Local campaign area" means the county or
   6-24  counties in which a local campaign manager conducts a state
   6-25  employee charitable campaign.
    7-1              (12)  "Local campaign manager" means a federated
    7-2  community campaign organization that is selected by the local
    7-3  employee committee as provided by Section 7 of this article.
    7-4              (13)  "Local charitable organization" means a
    7-5  charitable organization that:
    7-6                    (A)  provides direct or indirect health and human
    7-7  services; and
    7-8                    (B)  is accessible to state employees in the
    7-9  local campaign area by maintaining:
   7-10                          (i)  a publicly identified office with a
   7-11  professional or volunteer staff within the local campaign area that
   7-12  is open at least 20 hours a week during normal working hours; and
   7-13                          (ii)  a locally listed telephone number.
   7-14              (14)  "Local employee committee" means a local state
   7-15  employee charitable campaign committee selected as provided by
   7-16  Section 6 of this article.
   7-17              (15)  "State advisory committee" means the state
   7-18  employee charitable campaign advisory committee appointed under
   7-19  Section 5 of this article.
   7-20              (16)  "State agency" means a department, commission,
   7-21  board, office, institution of higher education, or other agency of
   7-22  state government.
   7-23              (17)  "State campaign manager" means an eligible
   7-24  federated community campaign organization that is selected by the
   7-25  state policy committee to coordinate campaign operations with local
    8-1  campaign managers.
    8-2              (18)  "State employee" means an employee of a state
    8-3  agency.
    8-4              (19)  "State employee charitable campaign" means an
    8-5  annual campaign conducted in communities or areas in which state
    8-6  employees work to solicit contributions to eligible charitable
    8-7  organizations.
    8-8              (20)  "State policy committee" means the state employee
    8-9  charitable campaign policy committee appointed under Section 4 of
   8-10  this article.
   8-11              (21)  "Statewide charitable organization" means a
   8-12  federation or fund and its affiliated agencies that:
   8-13                    (A)  provides direct or indirect health and human
   8-14  services to residents of two or more noncontiguous standard
   8-15  metropolitan statistical areas of this state; and
   8-16                    (B)  has demonstrated the federation or fund is
   8-17  accessible to state employees by maintaining:
   8-18                          (i)  a staff or volunteer representative
   8-19  residing in this state who is accessible at least 20 hours a week
   8-20  during normal working hours; and
   8-21                          (ii)  a toll-free long distance telephone
   8-22  number.
   8-23        Sec. 2.  DEDUCTION AUTHORIZED.  (a)  An employee of a state
   8-24  agency may authorize a deduction each pay period from the
   8-25  employee's salary or wage payment for a contribution.  The
    9-1  comptroller by rule may establish a reasonable minimum deduction
    9-2  for each pay period.
    9-3        (b)  An authorization shall direct the comptroller to
    9-4  distribute the deducted funds to participating federations or funds
    9-5  and local campaign managers as prescribed by rule.
    9-6        (c)  An authorization may designate an eligible charitable
    9-7  organization to receive the deductions.  If an authorization does
    9-8  not designate an eligible charitable organization, the employee's
    9-9  deductions shall be distributed to each participating federation or
   9-10  fund and eligible local charitable organization in the proportion
   9-11  that the deductions designated for that charitable organization
   9-12  bear to the total of designated deductions in the local state
   9-13  employee charitable campaign.
   9-14        (d)  A deduction under this article must be in the form
   9-15  prescribed by the comptroller.
   9-16        (e)  A state agency other than an institution of higher
   9-17  education is not required to permit employees to authorize a
   9-18  deduction under this article until the first full payroll period
   9-19  after the agency is converted to a system in which uniform
   9-20  statewide payroll procedures are followed.
   9-21        Sec. 3.  DURATION OF DEDUCTION.  (a)  A deduction under this
   9-22  article ends on:
   9-23              (1)  the first anniversary of the date it begins; or
   9-24              (2)  the effective date of a revocation of or change in
   9-25  the authorization by the employee.
   10-1        (b)  A state employee may revoke or change an authorization
   10-2  by giving notice to the employing state agency.  The notice must be
   10-3  in the form and manner prescribed by the comptroller.  A revocation
   10-4  or change takes effect when it is approved by the comptroller.
   10-5        Sec. 4.  STATE EMPLOYEE CHARITABLE CAMPAIGN POLICY COMMITTEE.
   10-6  (a)  The state employee charitable campaign policy committee
   10-7  consists of not more than 10 members.
   10-8        (b)  The governor may appoint not more than four members.
   10-9  The lieutenant governor and the comptroller may appoint not more
  10-10  than three members each.
  10-11        (c)  Each member of the state policy committee must be a
  10-12  state employee.  The membership must represent employees at
  10-13  different levels of employee classification.
  10-14        (d)  Appointments shall be made to the state policy committee
  10-15  in a manner that ensures that the committee reflects the race,
  10-16  ethnicity, and national origin of the citizens of this state.
  10-17        (e)  The state policy committee has the duties provided by
  10-18  Section 9(c) of this article.
  10-19        Sec. 5.  STATE EMPLOYEE CHARITABLE CAMPAIGN ADVISORY
  10-20  COMMITTEE.  (a)  The state employee charitable campaign advisory
  10-21  committee consists of eight members appointed by the governor.
  10-22        (b)  Four members must represent campaign managers.  Four
  10-23  members must represent federations or funds that are not campaign
  10-24  managers.
  10-25        (c)  Appointments shall be made to the state advisory
   11-1  committee in a manner that ensures that the committee reflects the
   11-2  race, ethnicity, and national origin of the citizens of this state.
   11-3        (d)  The state advisory committee has the duties provided by
   11-4  Section 9(d) of this article.
   11-5        Sec. 6.  LOCAL STATE EMPLOYEE CHARITABLE CAMPAIGN COMMITTEE.
   11-6  (a)  The state policy committee shall appoint the presiding officer
   11-7  of a local state employee charitable campaign committee in each
   11-8  local campaign area.
   11-9        (b)  The presiding officer of a local employee committee
  11-10  shall recruit at least five but not more than 10 additional
  11-11  members.  The members must represent different levels of employee
  11-12  classification.
  11-13        (c)  Each member of a local employee committee may vote on
  11-14  matters before the committee.
  11-15        (d)  Appointments shall be made to a local employee committee
  11-16  in a manner that ensures that the committee reflects the race,
  11-17  ethnicity, and national origin of the citizens of the local
  11-18  campaign area for which appointments are being made.
  11-19        (e)  A local employee committee has the duties provided by
  11-20  Section 9(e) of this article.
  11-21        Sec. 7.  LOCAL CAMPAIGN MANAGER.  (a)  A local employee
  11-22  committee shall select a local campaign manager to conduct the
  11-23  state employee charitable campaign in the local campaign area.
  11-24        (b)  A local campaign manager must have demonstrated
  11-25  expertise to:
   12-1              (1)  provide effective campaign counsel and management;
   12-2  and
   12-3              (2)  serve as fiscal agent for the eligible local
   12-4  charitable organizations.
   12-5        (c)  A local campaign manager has the duties provided by
   12-6  Section 9(g) of this article.
   12-7        Sec. 8.  TERMS OF COMMITTEE MEMBERS; COMPENSATION.     (a)  A
   12-8  member of the state advisory committee, the state policy committee,
   12-9  or a local employee committee serves a two-year term.
  12-10        (b)  A member of the state advisory committee, the state
  12-11  policy committee, or a local employee committee may not receive
  12-12  compensation for serving on the committee and is not entitled to
  12-13  reimbursement for expenses incurred in performing functions as a
  12-14  member of the committee.
  12-15        Sec. 9.  ADMINISTRATION OF STATE EMPLOYEE CHARITABLE
  12-16  CAMPAIGN.  (a)  A state employee charitable campaign shall be
  12-17  conducted each autumn.  A state employee charitable campaign must
  12-18  be managed fairly and equitably in accordance with this article and
  12-19  the policies and procedures established by the state policy
  12-20  committee.
  12-21        (b)  With the advice of the state advisory committee, the
  12-22  comptroller shall adopt rules for the administration of this
  12-23  article.
  12-24        (c)  The state policy committee shall:
  12-25              (1)  establish local campaign areas based on
   13-1  recommendation by the state advisory committee;
   13-2              (2)  select the state campaign manager;
   13-3              (3)  determine the eligibility of federations or funds
   13-4  and their affiliated agencies for statewide participation in the
   13-5  state employee charitable campaign;
   13-6              (4)  approve the recommended campaign plan, budget, and
   13-7  generic materials to be used by campaign managers;
   13-8              (5)  oversee the state employee charitable campaign to
   13-9  ensure that all campaign activities are conducted fairly and
  13-10  equitably to promote unified solicitation on behalf of all
  13-11  participants; and
  13-12              (6)  perform other duties prescribed by the
  13-13  comptroller's rules.
  13-14        (d)  The state advisory committee shall:
  13-15              (1)  advise the comptroller and state policy committee
  13-16  in adopting rules and establishing procedures for the operation and
  13-17  management of the state employee charitable campaign;
  13-18              (2)  recommend the number, not to exceed 50, and
  13-19  geographic scope of local campaign areas to the state policy
  13-20  committee; and
  13-21              (3)  review and submit the recommended campaign plan,
  13-22  budget, and generic materials to be used by campaign managers.
  13-23        (e)  The local employee committee shall:
  13-24              (1)  contract with a federated community campaign
  13-25  organization to serve as the local campaign manager;
   14-1              (2)  determine the eligibility of local charitable
   14-2  organizations to participate in the state employee charitable
   14-3  campaign;
   14-4              (3)  in consultation with the local campaign manager,
   14-5  approve the recommended campaign plan, budget, and generic
   14-6  materials to be used by campaign managers;
   14-7              (4)  oversee the local state employee charitable
   14-8  campaign to ensure that all local campaign activities are conducted
   14-9  fairly and equitably to promote unified solicitation on behalf of
  14-10  all participants; and
  14-11              (5)  perform other duties prescribed by the
  14-12  comptroller's rules.
  14-13        (f)  The state campaign manager shall:
  14-14              (1)  develop a campaign plan;
  14-15              (2)  prepare a statewide campaign budget in cooperation
  14-16  with the local campaign managers;
  14-17              (3)  prepare generic materials to be used by campaign
  14-18  managers;
  14-19              (4)  coordinate and facilitate campaign services to
  14-20  state employees throughout the state;
  14-21              (5)  ensure that all state employee charitable campaign
  14-22  activities are conducted fairly and equitably to promote unified
  14-23  solicitation on behalf of all participants; and
  14-24              (6)  perform other duties prescribed by the
  14-25  comptroller's rules.
   15-1        (g)  A local campaign manager shall:
   15-2              (1)  in consultation with the local employee committee,
   15-3  develop a cooperative plan, budget, and local campaign materials
   15-4  for the local state employee charitable campaign;
   15-5              (2)  manage the local state employee charitable
   15-6  campaign and provide for the effective involvement of each
   15-7  participating federation or fund;
   15-8              (3)  ensure that all local state employee charitable
   15-9  campaign activities are conducted fairly and equitably to promote
  15-10  unified solicitation on behalf of all participants; and
  15-11              (4)  perform other duties prescribed by the
  15-12  comptroller's rules.
  15-13        Sec. 10.  ELIGIBILITY OF CHARITABLE ORGANIZATIONS IN GENERAL.
  15-14  (a)  To be eligible to participate in a state employee charitable
  15-15  campaign, a charitable organization must:
  15-16              (1)  be governed by a voluntary board of citizens that
  15-17  meets at least twice each year to set policy and manage the affairs
  15-18  of the organization;
  15-19              (2)  if the organization's annual budget:
  15-20                    (A)  does not exceed $100,000, provide a
  15-21  completed Internal Revenue Service Form 990 and an accountant's
  15-22  review that offers full and open disclosure of the organization's
  15-23  internal operations; or
  15-24                    (B)  exceeds $100,000, be audited annually in
  15-25  accordance with generally accepted auditing standards of the
   16-1  American Institute of Certified Public Accountants; and
   16-2              (3)  not spend more than 25 percent of its annual
   16-3  revenue for administrative and fundraising expenses, unless the
   16-4  state policy committee grants the organization an exemption under
   16-5  Subsection (b) of this section.
   16-6        (b)  The state policy committee may grant a charitable
   16-7  organization a temporary exemption from the requirement of
   16-8  Subsection (a)(3) of this section if the committee finds that:
   16-9              (1)  the organization's administrative and fundraising
  16-10  expenses are reasonable under the circumstances; and
  16-11              (2)  the organization has a practical plan to reduce
  16-12  its administrative and fundraising expenses to 25 percent of its
  16-13  annual revenue within the next three years.
  16-14        Sec. 11.  ELIGIBILITY FOR STATEWIDE PARTICIPATION.  (a)  A
  16-15  federation or fund that seeks statewide participation in a state
  16-16  employee charitable campaign must apply on behalf of itself and its
  16-17  affiliated agencies to the state policy committee during the annual
  16-18  eligibility determination period specified by the committee.  The
  16-19  state policy committee shall review each application and may
  16-20  approve a federation or fund for statewide participation only if
  16-21  the federation or fund qualifies as a statewide charitable
  16-22  organization or as an international federation or fund.  The state
  16-23  policy committee may approve an affiliated charitable organization
  16-24  for statewide participation only if the organization qualifies as a
  16-25  statewide charitable organization or is an affiliated agency of an
   17-1  international federation or fund.
   17-2        (b)  An affiliated organization of an eligible federation or
   17-3  fund that does not qualify as a statewide charitable organization
   17-4  because it does not provide services in two or more noncontiguous
   17-5  standard metropolitan statistical areas may apply to a local
   17-6  employee committee for participation in a local state employee
   17-7  charitable campaign.
   17-8        (c)  The state policy committee may use outside expertise and
   17-9  resources available to it to assess the eligibility of charitable
  17-10  organizations that seek to participate in a state employee
  17-11  charitable campaign.
  17-12        (d)  An appeal from a decision of the state policy committee
  17-13  shall be conducted in the manner prescribed by the committee.  The
  17-14  appeals process must permit a charitable organization that is not
  17-15  approved for statewide participation to apply for participation in
  17-16  a local state employee charitable campaign.
  17-17        Sec. 12.  ELIGIBILITY FOR LOCAL PARTICIPATION.  (a)  A
  17-18  charitable organization that seeks local participation in a state
  17-19  employee charitable campaign must apply to the appropriate local
  17-20  employee committee during the annual eligibility determination
  17-21  period specified by the state policy committee.  The local employee
  17-22  committee shall review each application and may approve a
  17-23  charitable organization for local participation only if the
  17-24  organization qualifies as a local charitable organization and is:
  17-25              (1)  an unaffiliated local organization; or
   18-1              (2)  a federation or fund or an affiliate of a
   18-2  federation or fund that is not approved for statewide
   18-3  participation.
   18-4        (b)  An appeal from a decision of a local employee committee
   18-5  shall be conducted in the manner prescribed by the state policy
   18-6  committee.
   18-7        Sec. 13.  FEES.  (a)  A campaign manager may not charge a fee
   18-8  to the comptroller, a state agency, or a state employee for the
   18-9  services the campaign manager provides in connection with a state
  18-10  employee charitable campaign.
  18-11        (b)  A campaign manager may charge a reasonable and necessary
  18-12  fee for actual campaign expenses to the participating charitable
  18-13  organizations in the same proportion that the contributions to that
  18-14  charitable organization bear to the total of contributions in the
  18-15  state employee charitable campaign.
  18-16        (c)  A fee under Subsection (b) of this section must be based
  18-17  on the combined expenses of the state campaign manager and each
  18-18  local campaign manager and may not exceed 10 percent of the total
  18-19  amount collected in the state employee charitable campaign unless
  18-20  the state policy committee approves a higher amount to accommodate
  18-21  reasonable documented costs.
  18-22        (d)  The comptroller shall charge an administrative fee to
  18-23  cover costs incurred by the comptroller and employing state
  18-24  agencies in the implementation of this article to the charitable
  18-25  organizations participating in the first state employee charitable
   19-1  campaign conducted under this article in the same proportion that
   19-2  the contributions to that charitable organization bear to the total
   19-3  of contributions in that campaign.  The comptroller shall charge an
   19-4  administrative fee to cover costs incurred by the comptroller and
   19-5  employing state agencies in the administration of this article to
   19-6  the charitable organizations in each subsequent state employee
   19-7  charitable campaign in the same proportion that the contributions
   19-8  to that charitable organization bear to the total of contributions
   19-9  in that campaign.  The comptroller shall determine the most
  19-10  efficient and effective method of collecting the administrative fee
  19-11  and shall adopt rules for the implementation of this section.
  19-12        (e)  An institution of higher education that is authorized to
  19-13  operate a payroll system reimbursable from the state treasury shall
  19-14  charge an administrative fee to the participating charitable
  19-15  organizations to cover the actual costs incurred in the
  19-16  administration of this article.  The fee shall be assessed and
  19-17  collected annually and shall be charged in the same proportion that
  19-18  the contributions to the charitable organization bear to the total
  19-19  contributions in that campaign.
  19-20        Sec. 14.  FUNDRAISING PRACTICES.  The fundraising practices
  19-21  of a participating charitable organization must:
  19-22              (1)  be truthful and consumer-oriented;
  19-23              (2)  clearly identify and distinguish community-based
  19-24  organizations from statewide and international organizations; and
  19-25              (3)  assure protection against:
   20-1                    (A)  unauthorized use of a list of contributors
   20-2  to the organization;
   20-3                    (B)  payment of commissions, kickbacks, finder
   20-4  fees, percentages, bonuses, or overrides for fundraising;
   20-5                    (C)  mailing unordered merchandise or tickets
   20-6  with a request for money in return; and
   20-7                    (D)  general telephone solicitation of the
   20-8  public.
   20-9        Sec. 15.  APPLICATION OF CONTRIBUTIONS.  (a)  A participating
  20-10  charitable organization may use contributions under this article
  20-11  only to provide health and human services or to fund a charitable
  20-12  organization that provides health and human services.
  20-13        (b)  A participating charitable organization may not use
  20-14  contributions under this article to:
  20-15              (1)  conduct litigation; or
  20-16              (2)  make expenditures that would require the
  20-17  organization to register under Chapter 305, Government Code, if the
  20-18  organization were not an entity exempt from registration under that
  20-19  chapter.
  20-20        Sec. 16.  MISAPPLICATION OF CONTRIBUTIONS.  (a)  If the state
  20-21  policy committee has reason to believe that a participating
  20-22  charitable organization, a campaign manager, or a local employee
  20-23  committee has misapplied contributions under this article, the
  20-24  state policy committee may request the comptroller or state auditor
  20-25  to audit the person.
   21-1        (b)  If an audit under this section reveals gross negligence
   21-2  or intentional misconduct on the part of a campaign manager or a
   21-3  local employee committee, the state policy committee shall remove
   21-4  the campaign manager or local employee committee.  A person removed
   21-5  under this subsection is not eligible to serve in the capacity from
   21-6  which the person was removed before the fifth anniversary of the
   21-7  date the person was removed.
   21-8        (c)  If an audit under this section reveals intentional
   21-9  misconduct on the part of a campaign manager or a local employee
  21-10  committee, the state policy committee shall forward its findings to
  21-11  the appropriate law enforcement agency for further action.
  21-12        (d)  The attorney general may bring an action in a court of
  21-13  competent jurisdiction to recover misapplied contributions.
  21-14        (e)  If an investigation or lawsuit results in a recovery of
  21-15  misapplied contributions and there is not a judgment distributing
  21-16  the amounts recovered, the state policy committee shall instruct
  21-17  the comptroller as to the manner of refunding contributions to the
  21-18  appropriate state employees.
  21-19        Sec. 17.  VOLUNTARY PARTICIPATION.  (a)  Participation by a
  21-20  state employee in a state employee charitable campaign is
  21-21  voluntary.  Each campaign manager, local employee committee,
  21-22  charitable organization, state employee, and state agency shall
  21-23  inform state employees that deductions are voluntary.
  21-24        (b)  The comptroller shall adopt rules establishing a process
  21-25  for hearing employee complaints regarding coercive activity in a
   22-1  state employee charitable campaign.
   22-2        Sec. 18.  CONFIDENTIALITY.  Except as necessary to administer
   22-3  this article or on written authorization of the employee, the
   22-4  following information is confidential:
   22-5              (1)  whether a state employee has authorized a
   22-6  deduction under this article;
   22-7              (2)  the amount of a deduction authorized by a state
   22-8  employee under this article; and
   22-9              (3)  the name of a federation or fund or local
  22-10  charitable organization that a state employee has designated to
  22-11  receive contributions under this article, unless the employee has
  22-12  executed a written pledge card or other document indicating that
  22-13  the employee wishes to receive an acknowledgement from the
  22-14  designated charitable organization.
  22-15        Sec. 19.  EXEMPTION FOR INTERNATIONAL FEDERATION OR FUND.  An
  22-16  international federation or fund is exempt from the requirements of
  22-17  this article relating to the provision of health and human services
  22-18  to citizens of this state.
  22-19        SECTION 3.  In addition to other amounts appropriated to the
  22-20  comptroller or an employing state agency for the fiscal biennium
  22-21  beginning September 1, 1993, the administrative fees authorized by
  22-22  Section 13, Article 6813h, Revised Statutes, as added by this Act,
  22-23  are appropriated to the comptroller and the employing state
  22-24  agencies for the fiscal biennium beginning September 1, 1993, to
  22-25  administer that article.
   23-1        SECTION 4.  The credit union payroll deduction program
   23-2  authorized by Article 6813g, Revised Statutes, as amended by this
   23-3  Act, may not be implemented until the earlier of January 1, 1994,
   23-4  or the date that the comptroller adopts rules describing the
   23-5  operation and implementation of the credit union payroll deduction
   23-6  program.
   23-7        SECTION 5.  An institution of higher education is not
   23-8  required to permit employees to authorize a deduction under Article
   23-9  6813h, Revised Statutes, as added by this Act, until the first full
  23-10  payroll period that occurs after six months after the publication
  23-11  of rules adopted under Article 6813h, Revised Statutes, as added by
  23-12  this Act.
  23-13        SECTION 6.  The importance of this legislation and the
  23-14  crowded condition of the calendars in both houses create an
  23-15  emergency and an imperative public necessity that the
  23-16  constitutional rule requiring bills to be read on three several
  23-17  days in each house be suspended, and this rule is hereby suspended,
  23-18  and that this Act take effect and be in force from and after its
  23-19  passage, and it is so enacted.