1-1 By: Seidlits (Senate Sponsor - Carriker) H.B. No. 903
1-2 (In the Senate - Received from the House April 1, 1993;
1-3 April 5, 1993, read first time and referred to Committee on State
1-4 Affairs; April 22, 1993, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 11, Nays 0;
1-6 April 22, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Harris of Dallas x
1-10 Rosson x
1-11 Carriker x
1-12 Henderson x
1-13 Leedom x
1-14 Lucio x
1-15 Luna x
1-16 Nelson x
1-17 Patterson x
1-18 Shelley x
1-19 Sibley x
1-20 West x
1-21 Whitmire x
1-22 COMMITTEE SUBSTITUTE FOR H.B. No. 903 By: Carriker
1-23 A BILL TO BE ENTITLED
1-24 AN ACT
1-25 relating to payroll deductions for state employees for credit union
1-26 membership and for contributions to charitable organizations;
1-27 making an appropriation.
1-28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-29 SECTION 1. Article 6813g, Revised Statutes, is amended to
1-30 read as follows:
1-31 Art. 6813g. Deductions for supplemental benefits for state
1-32 employees
1-33 Sec. 1. Definitions. In this article "state agency" means a
1-34 department, commission, board, office, or other agency of any
1-35 branch of state government, including an institution of higher
1-36 education as defined by Section 61.003, Education Code.
1-37 Sec. 2. Deduction authorized. In addition to deductions for
1-38 coverage under the Texas Employees Uniform Group Insurance Benefits
1-39 Act (Article 3.50-2, Vernon's Texas Insurance Code) or other law,
1-40 an employee of a state agency may authorize in writing a deduction
1-41 each pay period from the employee's salary or wage payment for
1-42 coverage of the employee under a supplemental optional benefits
1-43 program, including a program of permanent life insurance,
1-44 catastrophic illness insurance, disability insurance, or prepaid
1-45 legal services, that may be made if the program has been approved
1-46 by the Employees Retirement System of Texas under Section 3 of this
1-47 article. An employee may also authorize a deduction for payment to
1-48 a credit union to be credited to a share or deposit account of that
1-49 employee. The written authorization must direct the comptroller
1-50 or, if applicable, the appropriate financial officer of an
1-51 institution of higher education to transfer the withheld funds to
1-52 the program or credit union designated by the employee. The
1-53 comptroller or financial officer shall comply with the direction.
1-54 Sec. 3. Eligible program. The Employees Retirement System
1-55 of Texas shall designate supplemental benefit programs that are
1-56 eligible to receive deductions under Section 2 of this article and
1-57 that promote the interests of the state and state agency employees.
1-58 No designation is necessary for credit union deductions.
1-59 Sec. 4. Form; duration. (a) A <The> payroll deduction must
1-60 be accomplished in a form and manner prescribed by the comptroller
1-61 or the appropriate financial officer of an institution of higher
1-62 education.
1-63 (b) The employee or the employee's designee may change or
1-64 revoke a <the> deduction authorization by delivering written notice
1-65 of the change or revocation to the comptroller or financial
1-66 officer, as appropriate. An <The> authorization is effective until
1-67 the date the comptroller or financial officer receives the notice.
1-68 The notice must be given in a form and manner prescribed by the
2-1 comptroller or financial officer.
2-2 Sec. 5. Voluntary participation. Participation by employees
2-3 in the supplemental optional benefits or credit union deduction
2-4 programs <program> authorized by this article is voluntary.
2-5 Sec. 6. Administrative fee. (a) The state may withhold
2-6 from the employee's salary or wage payment an administrative fee
2-7 for making the deduction under this article. The fee may not
2-8 exceed the actual administrative cost of making the deduction or
2-9 the highest fee charged by the state for making a similar
2-10 deduction, whichever amount is less. The state shall allocate and
2-11 pay to each employing state agency that incurs costs in
2-12 administering this article the administrative fees on a
2-13 proportional basis. Any administrative fees withheld under this
2-14 section are appropriated to the comptroller and the employing state
2-15 agencies.
2-16 (b) Institutions of higher education, which are authorized
2-17 to operate a payroll system reimbursable from the state treasury,
2-18 may withhold from the employee's salary or wage payment an
2-19 administrative fee for making the deduction under this article.
2-20 The fee may not exceed the actual administrative cost of making the
2-21 deduction or the highest fee charged for making a similar
2-22 deduction.
2-23 SECTION 2. Title 117, Revised Statutes, is amended by adding
2-24 Article 6813h to read as follows:
2-25 Art. 6813h. PAYROLL DEDUCTIONS FOR CHARITABLE CONTRIBUTIONS
2-26 Sec. 1. DEFINITIONS. In this article:
2-27 (1) "Campaign manager" means a local campaign manager
2-28 or state campaign manager.
2-29 (2) "Charitable organization" means an organization
2-30 that:
2-31 (A) is organized for charitable purposes under
2-32 the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
2-33 Vernon's Texas Civil Statutes) and its subsequent amendments or
2-34 holds a certificate of authority issued under that Act;
2-35 (B) is exempt from taxation under Section 501(a)
2-36 of the Internal Revenue Code of 1986 as an organization described
2-37 in Section 501(c)(3) of that code and to which contributions are
2-38 deductible for income tax purposes under Section 170 of that code;
2-39 (C) fully complies with all applicable federal
2-40 nondiscrimination law, including Chapter 21, Title 42, United
2-41 States Code;
2-42 (D) fully complies with all state statutes and
2-43 rules relating to charitable organizations; and
2-44 (E) is not a private foundation.
2-45 (3) "Direct services" means providing funds or
2-46 programs for health and human services that directly benefit the
2-47 recipients.
2-48 (4) "Eligible charitable organization" means a
2-49 charitable organization that is determined to be eligible to
2-50 participate in the state employee charitable contribution campaign
2-51 as provided by Section 10 of this article.
2-52 (5) "Federated community campaign organization" means
2-53 a federation or fund that:
2-54 (A) has demonstrated expertise in conducting
2-55 workplace charitable campaigns; and
2-56 (B) distributes funds raised through a
2-57 cooperative community campaign to at least five agencies that
2-58 provide direct services to residents of the campaign area.
2-59 (6) "Federation or fund" means an umbrella fundraising
2-60 entity that:
2-61 (A) is a charitable organization;
2-62 (B) acts as an agent for at least five
2-63 charitable organizations;
2-64 (C) is not organized exclusively to solicit
2-65 contributions from state employees; and
2-66 (D) is supported by voluntary contributions by
2-67 the public and is:
2-68 (i) incorporated in this state and has an
2-69 established physical presence in this state in the form of an
2-70 office or service facility that is staffed at least 20 hours a
3-1 week; or
3-2 (ii) incorporated outside this state,
3-3 includes at least 10 affiliated charitable organizations, has
3-4 existed at least three years, and participates in state employee
3-5 charitable campaigns in at least 10 other states.
3-6 (7) "Health and human services" means services
3-7 provided by a charitable organization that:
3-8 (A) benefit citizens of this state, including
3-9 children, youth, adults, elderly individuals, ill or infirm
3-10 individuals, or individuals with a mental or physical disability;
3-11 and
3-12 (B) consist of:
3-13 (i) human care, medical or other research,
3-14 education, legal precedence, legislative action, advocacy before
3-15 policy makers, or environmental protection or conservation in the
3-16 field of human health, social adjustment, or rehabilitation;
3-17 (ii) relief for victims of natural
3-18 disaster or other emergencies; or
3-19 (iii) assistance to impoverished
3-20 individuals in need of food, shelter, clothing, or other basic
3-21 needs.
3-22 (8) "Indirect services" means health and human
3-23 services that:
3-24 (A) are not direct services; and
3-25 (B) demonstrably benefit citizens of this state.
3-26 (9) "Institution of higher education" has the meaning
3-27 assigned by Section 61.003, Education Code.
3-28 (10) "International federation or fund" means a
3-29 federation or fund whose affiliated charities provide direct and
3-30 substantial charitable services to needy individuals of other
3-31 nations.
3-32 (11) "Local campaign area" means the county or
3-33 counties in which a local campaign manager conducts a state
3-34 employee charitable campaign.
3-35 (12) "Local campaign manager" means a federated
3-36 community campaign organization that is selected by the local
3-37 employee committee as provided by Section 7 of this article.
3-38 (13) "Local charitable organization" means a
3-39 charitable organization that:
3-40 (A) provides direct or indirect health and human
3-41 services; and
3-42 (B) is accessible to state employees in the
3-43 local campaign area by maintaining:
3-44 (i) a publicly identified office with a
3-45 professional or volunteer staff within the local campaign area that
3-46 is open at least 20 hours a week during normal working hours; and
3-47 (ii) a locally listed telephone number.
3-48 (14) "Local employee committee" means a local state
3-49 employee charitable campaign committee selected as provided by
3-50 Section 6 of this article.
3-51 (15) "State advisory committee" means the state
3-52 employee charitable campaign advisory committee appointed under
3-53 Section 5 of this article.
3-54 (16) "State agency" means a department, commission,
3-55 board, office, institution of higher education, or other agency of
3-56 state government.
3-57 (17) "State campaign manager" means an eligible
3-58 federated community campaign organization that is selected by the
3-59 state policy committee to coordinate campaign operations with local
3-60 campaign managers.
3-61 (18) "State employee" means an employee of a state
3-62 agency.
3-63 (19) "State employee charitable campaign" means an
3-64 annual campaign conducted in communities or areas in which state
3-65 employees work to solicit contributions to eligible charitable
3-66 organizations.
3-67 (20) "State policy committee" means the state employee
3-68 charitable campaign policy committee appointed under Section 4 of
3-69 this article.
3-70 (21) "Statewide charitable organization" means a
4-1 federation or fund and its affiliated agencies that:
4-2 (A) provides direct or indirect health and human
4-3 services to residents of two or more noncontiguous standard
4-4 metropolitan statistical areas of this state; and
4-5 (B) has demonstrated the federation or fund is
4-6 accessible to state employees by maintaining:
4-7 (i) a staff or volunteer representative
4-8 residing in this state who is accessible at least 20 hours a week
4-9 during normal working hours; and
4-10 (ii) a toll-free long distance telephone
4-11 number.
4-12 Sec. 2. DEDUCTION AUTHORIZED. (a) An employee of a state
4-13 agency may authorize a deduction each pay period from the
4-14 employee's salary or wage payment for a contribution. The
4-15 comptroller by rule may establish a reasonable minimum deduction
4-16 for each pay period.
4-17 (b) An authorization shall direct the comptroller to
4-18 distribute the deducted funds to participating federations or funds
4-19 and local campaign managers as prescribed by rule.
4-20 (c) An authorization may designate an eligible charitable
4-21 organization to receive the deductions. If an authorization does
4-22 not designate an eligible charitable organization, the employee's
4-23 deductions shall be distributed to each participating federation or
4-24 fund and eligible local charitable organization in the proportion
4-25 that the deductions designated for that charitable organization
4-26 bear to the total of designated deductions in the local state
4-27 employee charitable campaign.
4-28 (d) A deduction under this article must be in the form
4-29 prescribed by the comptroller.
4-30 (e) A state agency other than an institution of higher
4-31 education is not required to permit employees to authorize a
4-32 deduction under this article until the first full payroll period
4-33 after the agency is converted to a system in which uniform
4-34 statewide payroll procedures are followed.
4-35 Sec. 3. DURATION OF DEDUCTION. (a) A deduction under this
4-36 article ends on:
4-37 (1) the first anniversary of the date it begins; or
4-38 (2) the effective date of a revocation of or change in
4-39 the authorization by the employee.
4-40 (b) A state employee may revoke or change an authorization
4-41 by giving notice to the employing state agency. The notice must be
4-42 in the form and manner prescribed by the comptroller. A revocation
4-43 or change takes effect when it is approved by the comptroller.
4-44 Sec. 4. STATE EMPLOYEE CHARITABLE CAMPAIGN POLICY COMMITTEE.
4-45 (a) The state employee charitable campaign policy committee
4-46 consists of not more than 10 members.
4-47 (b) The governor may appoint not more than four members.
4-48 The lieutenant governor and the comptroller may appoint not more
4-49 than three members each.
4-50 (c) Each member of the state policy committee must be a
4-51 state employee. The membership must represent employees at
4-52 different levels of employee classification.
4-53 (d) Appointments shall be made to the state policy committee
4-54 in a manner that ensures that the committee reflects the race,
4-55 ethnicity, and national origin of the citizens of this state.
4-56 (e) The state policy committee has the duties provided by
4-57 Section 9(c) of this article.
4-58 Sec. 5. STATE EMPLOYEE CHARITABLE CAMPAIGN ADVISORY
4-59 COMMITTEE. (a) The state employee charitable campaign advisory
4-60 committee consists of eight members appointed by the governor.
4-61 (b) Four members must represent campaign managers. Four
4-62 members must represent federations or funds that are not campaign
4-63 managers.
4-64 (c) Appointments shall be made to the state advisory
4-65 committee in a manner that ensures that the committee reflects the
4-66 race, ethnicity, and national origin of the citizens of this state.
4-67 (d) The state advisory committee has the duties provided by
4-68 Section 9(d) of this article.
4-69 Sec. 6. LOCAL STATE EMPLOYEE CHARITABLE CAMPAIGN COMMITTEE.
4-70 (a) The state policy committee shall appoint the presiding officer
5-1 of a local state employee charitable campaign committee in each
5-2 local campaign area.
5-3 (b) The presiding officer of a local employee committee
5-4 shall recruit at least five but not more than 10 additional
5-5 members. The members must represent different levels of employee
5-6 classification.
5-7 (c) Each member of a local employee committee may vote on
5-8 matters before the committee.
5-9 (d) Appointments shall be made to a local employee committee
5-10 in a manner that ensures that the committee reflects the race,
5-11 ethnicity, and national origin of the citizens of the local
5-12 campaign area for which appointments are being made.
5-13 (e) A local employee committee has the duties provided by
5-14 Section 9(e) of this article.
5-15 Sec. 7. LOCAL CAMPAIGN MANAGER. (a) A local employee
5-16 committee shall select a local campaign manager to conduct the
5-17 state employee charitable campaign in the local campaign area.
5-18 (b) A local campaign manager must have demonstrated
5-19 expertise to:
5-20 (1) provide effective campaign counsel and management;
5-21 and
5-22 (2) serve as fiscal agent for the eligible local
5-23 charitable organizations.
5-24 (c) A local campaign manager has the duties provided by
5-25 Section 9(g) of this article.
5-26 Sec. 8. TERMS OF COMMITTEE MEMBERS; COMPENSATION. (a) A
5-27 member of the state advisory committee, the state policy committee,
5-28 or a local employee committee serves a two-year term.
5-29 (b) A member of the state advisory committee, the state
5-30 policy committee, or a local employee committee may not receive
5-31 compensation for serving on the committee and is not entitled to
5-32 reimbursement for expenses incurred in performing functions as a
5-33 member of the committee.
5-34 Sec. 9. ADMINISTRATION OF STATE EMPLOYEE CHARITABLE
5-35 CAMPAIGN. (a) A state employee charitable campaign shall be
5-36 conducted each autumn. A state employee charitable campaign must
5-37 be managed fairly and equitably in accordance with this article and
5-38 the policies and procedures established by the state policy
5-39 committee.
5-40 (b) With the advice of the state advisory committee, the
5-41 comptroller shall adopt rules for the administration of this
5-42 article.
5-43 (c) The state policy committee shall:
5-44 (1) establish local campaign areas based on
5-45 recommendation by the state advisory committee;
5-46 (2) select the state campaign manager;
5-47 (3) determine the eligibility of federations or funds
5-48 and their affiliated agencies for statewide participation in the
5-49 state employee charitable campaign;
5-50 (4) approve the recommended campaign plan, budget, and
5-51 generic materials to be used by campaign managers;
5-52 (5) oversee the state employee charitable campaign to
5-53 ensure that all campaign activities are conducted fairly and
5-54 equitably to promote unified solicitation on behalf of all
5-55 participants; and
5-56 (6) perform other duties prescribed by the
5-57 comptroller's rules.
5-58 (d) The state advisory committee shall:
5-59 (1) advise the comptroller and state policy committee
5-60 in adopting rules and establishing procedures for the operation and
5-61 management of the state employee charitable campaign;
5-62 (2) recommend the number, not to exceed 50, and
5-63 geographic scope of local campaign areas to the state policy
5-64 committee; and
5-65 (3) review and submit the recommended campaign plan,
5-66 budget, and generic materials to be used by campaign managers.
5-67 (e) The local employee committee shall:
5-68 (1) contract with a federated community campaign
5-69 organization to serve as the local campaign manager;
5-70 (2) determine the eligibility of local charitable
6-1 organizations to participate in the state employee charitable
6-2 campaign;
6-3 (3) in consultation with the local campaign manager,
6-4 approve the recommended campaign plan, budget, and generic
6-5 materials to be used by campaign managers;
6-6 (4) oversee the local state employee charitable
6-7 campaign to ensure that all local campaign activities are conducted
6-8 fairly and equitably to promote unified solicitation on behalf of
6-9 all participants; and
6-10 (5) perform other duties prescribed by the
6-11 comptroller's rules.
6-12 (f) The state campaign manager shall:
6-13 (1) develop a campaign plan;
6-14 (2) prepare a statewide campaign budget in cooperation
6-15 with the local campaign managers;
6-16 (3) prepare generic materials to be used by campaign
6-17 managers;
6-18 (4) coordinate and facilitate campaign services to
6-19 state employees throughout the state;
6-20 (5) ensure that all state employee charitable campaign
6-21 activities are conducted fairly and equitably to promote unified
6-22 solicitation on behalf of all participants; and
6-23 (6) perform other duties prescribed by the
6-24 comptroller's rules.
6-25 (g) A local campaign manager shall:
6-26 (1) in consultation with the local employee committee,
6-27 develop a cooperative plan, budget, and local campaign materials
6-28 for the local state employee charitable campaign;
6-29 (2) manage the local state employee charitable
6-30 campaign and provide for the effective involvement of each
6-31 participating federation or fund;
6-32 (3) ensure that all local state employee charitable
6-33 campaign activities are conducted fairly and equitably to promote
6-34 unified solicitation on behalf of all participants; and
6-35 (4) perform other duties prescribed by the
6-36 comptroller's rules.
6-37 Sec. 10. ELIGIBILITY OF CHARITABLE ORGANIZATIONS IN GENERAL.
6-38 (a) To be eligible to participate in a state employee charitable
6-39 campaign, a charitable organization must:
6-40 (1) be governed by a voluntary board of citizens that
6-41 meets at least twice each year to set policy and manage the affairs
6-42 of the organization;
6-43 (2) if the organization's annual budget:
6-44 (A) does not exceed $100,000, provide a
6-45 completed Internal Revenue Service Form 990 and an accountant's
6-46 review that offers full and open disclosure of the organization's
6-47 internal operations; or
6-48 (B) exceeds $100,000, be audited annually in
6-49 accordance with generally accepted auditing standards of the
6-50 American Institute of Certified Public Accountants; and
6-51 (3) not spend more than 25 percent of its annual
6-52 revenue for administrative and fundraising expenses, unless the
6-53 state policy committee grants the organization an exemption under
6-54 Subsection (b) of this section.
6-55 (b) The state policy committee may grant a charitable
6-56 organization a temporary exemption from the requirement of
6-57 Subsection (a)(3) of this section if the committee finds that:
6-58 (1) the organization's administrative and fundraising
6-59 expenses are reasonable under the circumstances; and
6-60 (2) the organization has a practical plan to reduce
6-61 its administrative and fundraising expenses to 25 percent of its
6-62 annual revenue within the next three years.
6-63 Sec. 11. ELIGIBILITY FOR STATEWIDE PARTICIPATION. (a) A
6-64 federation or fund that seeks statewide participation in a state
6-65 employee charitable campaign must apply on behalf of itself and its
6-66 affiliated agencies to the state policy committee during the annual
6-67 eligibility determination period specified by the committee. The
6-68 state policy committee shall review each application and may
6-69 approve a federation or fund for statewide participation only if
6-70 the federation or fund qualifies as a statewide charitable
7-1 organization or as an international federation or fund. The state
7-2 policy committee may approve an affiliated charitable organization
7-3 for statewide participation only if the organization qualifies as a
7-4 statewide charitable organization or is an affiliated agency of an
7-5 international federation or fund.
7-6 (b) An affiliated organization of an eligible federation or
7-7 fund that does not qualify as a statewide charitable organization
7-8 because it does not provide services in two or more noncontiguous
7-9 standard metropolitan statistical areas may apply to a local
7-10 employee committee for participation in a local state employee
7-11 charitable campaign.
7-12 (c) The state policy committee may use outside expertise and
7-13 resources available to it to assess the eligibility of charitable
7-14 organizations that seek to participate in a state employee
7-15 charitable campaign.
7-16 (d) An appeal from a decision of the state policy committee
7-17 shall be conducted in the manner prescribed by the committee. The
7-18 appeals process must permit a charitable organization that is not
7-19 approved for statewide participation to apply for participation in
7-20 a local state employee charitable campaign.
7-21 Sec. 12. ELIGIBILITY FOR LOCAL PARTICIPATION. (a) A
7-22 charitable organization that seeks local participation in a state
7-23 employee charitable campaign must apply to the appropriate local
7-24 employee committee during the annual eligibility determination
7-25 period specified by the state policy committee. The local employee
7-26 committee shall review each application and may approve a
7-27 charitable organization for local participation only if the
7-28 organization qualifies as a local charitable organization and is:
7-29 (1) an unaffiliated local organization; or
7-30 (2) a federation or fund or an affiliate of a
7-31 federation or fund that is not approved for statewide
7-32 participation.
7-33 (b) An appeal from a decision of a local employee committee
7-34 shall be conducted in the manner prescribed by the state policy
7-35 committee.
7-36 Sec. 13. FEES. (a) A campaign manager may not charge a fee
7-37 to the comptroller, a state agency, or a state employee for the
7-38 services the campaign manager provides in connection with a state
7-39 employee charitable campaign.
7-40 (b) A campaign manager may charge a reasonable and necessary
7-41 fee for actual campaign expenses to the participating charitable
7-42 organizations in the same proportion that the contributions to that
7-43 charitable organization bear to the total of contributions in the
7-44 state employee charitable campaign.
7-45 (c) A fee under Subsection (b) of this section must be based
7-46 on the combined expenses of the state campaign manager and each
7-47 local campaign manager and may not exceed 10 percent of the total
7-48 amount collected in the state employee charitable campaign unless
7-49 the state policy committee approves a higher amount to accommodate
7-50 reasonable documented costs.
7-51 (d) The comptroller shall charge an administrative fee to
7-52 cover costs incurred by the comptroller and employing state
7-53 agencies in the implementation of this article to the charitable
7-54 organizations participating in the first state employee charitable
7-55 campaign conducted under this article in the same proportion that
7-56 the contributions to that charitable organization bear to the total
7-57 of contributions in that campaign. The comptroller shall charge an
7-58 administrative fee to cover costs incurred by the comptroller and
7-59 employing state agencies in the administration of this article to
7-60 the charitable organizations in each subsequent state employee
7-61 charitable campaign in the same proportion that the contributions
7-62 to that charitable organization bear to the total of contributions
7-63 in that campaign. The comptroller shall determine the most
7-64 efficient and effective method of collecting the administrative fee
7-65 and shall adopt rules for the implementation of this section.
7-66 (e) An institution of higher education that is authorized to
7-67 operate a payroll system reimbursable from the state treasury shall
7-68 charge an administrative fee to the participating charitable
7-69 organizations to cover the actual costs incurred in the
7-70 administration of this article. The fee shall be assessed and
8-1 collected annually and shall be charged in the same proportion that
8-2 the contributions to the charitable organization bear to the total
8-3 contributions in that campaign.
8-4 Sec. 14. FUNDRAISING PRACTICES. The fundraising practices
8-5 of a participating charitable organization must:
8-6 (1) be truthful and consumer-oriented;
8-7 (2) clearly identify and distinguish community-based
8-8 organizations from statewide and international organizations; and
8-9 (3) assure protection against:
8-10 (A) unauthorized use of a list of contributors
8-11 to the organization;
8-12 (B) payment of commissions, kickbacks, finder
8-13 fees, percentages, bonuses, or overrides for fundraising;
8-14 (C) mailing unordered merchandise or tickets
8-15 with a request for money in return; and
8-16 (D) general telephone solicitation of the
8-17 public.
8-18 Sec. 15. MISAPPLICATION OF CONTRIBUTIONS. (a) If the state
8-19 policy committee has reason to believe that a participating
8-20 charitable organization, a campaign manager, or a local employee
8-21 committee has misapplied contributions under this article, the
8-22 state policy committee may request the comptroller or state auditor
8-23 to audit the person.
8-24 (b) If an audit under this section reveals gross negligence
8-25 or intentional misconduct on the part of a campaign manager or a
8-26 local employee committee, the state policy committee shall remove
8-27 the campaign manager or local employee committee. A person removed
8-28 under this subsection is not eligible to serve in the capacity from
8-29 which the person was removed before the fifth anniversary of the
8-30 date the person was removed.
8-31 (c) If an audit under this section reveals intentional
8-32 misconduct on the part of a campaign manager or a local employee
8-33 committee, the state policy committee shall forward its findings to
8-34 the appropriate law enforcement agency for further action.
8-35 (d) The attorney general may bring an action in a court of
8-36 competent jurisdiction to recover misapplied contributions.
8-37 (e) If an investigation or lawsuit results in a recovery of
8-38 misapplied contributions and there is not a judgment distributing
8-39 the amounts recovered, the state policy committee shall instruct
8-40 the comptroller as to the manner of refunding contributions to the
8-41 appropriate state employees.
8-42 Sec. 16. VOLUNTARY PARTICIPATION. (a) Participation by a
8-43 state employee in a state employee charitable campaign is
8-44 voluntary. Each campaign manager, local employee committee,
8-45 charitable organization, state employee, and state agency shall
8-46 inform state employees that deductions are voluntary.
8-47 (b) The comptroller shall adopt rules establishing a process
8-48 for hearing employee complaints regarding coercive activity in a
8-49 state employee charitable campaign.
8-50 Sec. 17. CONFIDENTIALITY. Except as necessary to administer
8-51 this article or on written authorization of the employee, the
8-52 following information is confidential:
8-53 (1) whether a state employee has authorized a
8-54 deduction under this article;
8-55 (2) the amount of a deduction authorized by a state
8-56 employee under this article; and
8-57 (3) the name of a federation or fund or local
8-58 charitable organization that a state employee has designated to
8-59 receive contributions under this article, unless the employee has
8-60 executed a written pledge card or other document indicating that
8-61 the employee wishes to receive an acknowledgement from the
8-62 designated charitable organization.
8-63 Sec. 18. EXEMPTION FOR INTERNATIONAL FEDERATION OR FUND. An
8-64 international federation or fund is exempt from the requirements of
8-65 this article relating to:
8-66 (1) maintenance of an established physical presence in
8-67 this state; and
8-68 (2) the provision of health and human services to
8-69 citizens of this state.
8-70 SECTION 3. In addition to other amounts appropriated to the
9-1 comptroller or an employing state agency for the fiscal biennium
9-2 beginning September 1, 1993, the administrative fees authorized by
9-3 Section 13, Article 6813h, Revised Statutes, as added by this Act,
9-4 are appropriated to the comptroller and the employing state
9-5 agencies for the fiscal biennium beginning September 1, 1993, to
9-6 administer that article.
9-7 SECTION 4. The credit union payroll deduction program
9-8 authorized by Article 6813g, Revised Statutes, as amended by this
9-9 Act, may not be implemented until the earlier of January 1, 1994,
9-10 or the date that the comptroller adopts rules describing the
9-11 operation and implementation of the credit union payroll deduction
9-12 program.
9-13 SECTION 5. An institution of higher education is not
9-14 required to permit employees to authorize a deduction under Article
9-15 6813h, Revised Statutes, as added by this Act, until the first full
9-16 payroll period that occurs after six months after the publication
9-17 of rules adopted under Article 6813h, Revised Statutes, as added by
9-18 this Act.
9-19 SECTION 6. The importance of this legislation and the
9-20 crowded condition of the calendars in both houses create an
9-21 emergency and an imperative public necessity that the
9-22 constitutional rule requiring bills to be read on three several
9-23 days in each house be suspended, and this rule is hereby suspended,
9-24 and that this Act take effect and be in force from and after its
9-25 passage, and it is so enacted.
9-26 * * * * *
9-27 Austin,
9-28 Texas
9-29 April 22, 1993
9-30 Hon. Bob Bullock
9-31 President of the Senate
9-32 Sir:
9-33 We, your Committee on State Affairs to which was referred H.B. No.
9-34 903, have had the same under consideration, and I am instructed to
9-35 report it back to the Senate with the recommendation that it do not
9-36 pass, but that the Committee Substitute adopted in lieu thereof do
9-37 pass and be printed.
9-38 Harris of
9-39 Dallas, Chairman
9-40 * * * * *
9-41 WITNESSES
9-42 FOR AGAINST ON
9-43 ___________________________________________________________________
9-44 Name: Donna Clay x
9-45 Representing: Comptroller of Public Accounts
9-46 City: Austin
9-47 -------------------------------------------------------------------
9-48 Name: John Lederer x x
9-49 Representing: Texas Credit Union League
9-50 City: Dallas
9-51 -------------------------------------------------------------------
9-52 Name: Jeff Huffman x
9-53 Representing: Texas Credit Union League
9-54 City: Farmers Branch
9-55 -------------------------------------------------------------------