By Eckels H.B. No. 2331
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to voluntary payroll deductions for state employees for
1-3 charitable organizations; making an appropriation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. DEFINITIONS. In this Act:
1-6 (1) "Campaign manager" means a local campaign manager
1-7 or state campaign manager.
1-8 (2) "Charitable organization" means an organization
1-9 that:
1-10 (A) is organized for charitable purposes under
1-11 the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
1-12 Vernon's Texas Civil Statutes) and its subsequent amendments or
1-13 holds a certificate of authority issued under that Act;
1-14 (B) is exempt from taxation under Section 501(a)
1-15 of the Internal Revenue Code of 1986 as an organization described
1-16 in Section 501(c)(3) of that code;
1-17 (C) fully complies with all applicable federal
1-18 nondiscrimination law, including Chapter 21, Title 42, United
1-19 States Code;
1-20 (D) fully complies with all state statutes and
1-21 rules relating to charitable organizations; and
1-22 (E) is not a private foundation.
1-23 (3) "Direct services" means providing funds or
2-1 programs for health and human services that directly benefit the
2-2 recipients.
2-3 (4) "Eligible charitable organization" means a
2-4 charitable organization that is determined to be eligible to
2-5 participate in the state employee charitable contribution campaign
2-6 as provided by Section 10 of this Act.
2-7 (5) "Federated community campaign organization" means
2-8 a federation or fund that:
2-9 (A) has demonstrated expertise in conducting
2-10 workplace charitable campaigns; and
2-11 (B) distributes funds raised through a
2-12 cooperative community campaign to at least five agencies that
2-13 provide direct services to residents of the campaign area.
2-14 (6) "Federation or fund" means an umbrella fundraising
2-15 entity that:
2-16 (A) is a charitable organization;
2-17 (B) acts as an agent for at least five
2-18 charitable organizations;
2-19 (C) is not organized exclusively to solicit
2-20 contributions from state employees; and
2-21 (D) is supported by voluntary contributions by
2-22 the public and is:
2-23 (i) incorporated in this state and has an
2-24 established physical presence in this state in the form of an
2-25 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.
4-1 (9) "Institution of higher education" has the meaning
4-2 assigned by Section 61.003, Education Code.
4-3 (10) "International federation or fund" means a
4-4 federation or fund whose affiliated charities provide direct and
4-5 substantial charitable services to needy individuals of other
4-6 nations.
4-7 (11) "Local campaign area" means the county or
4-8 counties in which a local campaign manager conducts a state
4-9 employee charitable campaign.
4-10 (12) "Local campaign manager" means a federated
4-11 community campaign organization that is selected by the local
4-12 employee committee as provided by Section 7 of this Act.
4-13 (13) "Local charitable organization" means a
4-14 charitable organization that:
4-15 (A) provides direct or indirect health and human
4-16 services; and
4-17 (B) is accessible to state employees in the
4-18 local campaign area by maintaining:
4-19 (i) a publicly identified office with a
4-20 professional or volunteer staff within the local campaign area that
4-21 is open at least 20 hours a week during normal working hours; and
4-22 (ii) a locally listed telephone number.
4-23 (14) "Local employee committee" means a local state
4-24 employee charitable campaign committee selected as provided by
4-25 Section 6 of this Act.
5-1 (15) "State advisory committee" means the state
5-2 employee charitable campaign advisory committee appointed under
5-3 Section 5 of this Act.
5-4 (16) "State agency" means a department, commission,
5-5 board, office, institution of higher education, or other agency of
5-6 state government.
5-7 (17) "State campaign manager" means an eligible
5-8 federated community campaign organization that is selected by the
5-9 state policy committee to coordinate campaign operations with local
5-10 campaign managers.
5-11 (18) "State employee" means an employee of a state
5-12 agency.
5-13 (19) "State employee charitable campaign" means an
5-14 annual campaign conducted in communities or areas in which state
5-15 employees work to solicit contributions to eligible charitable
5-16 organizations.
5-17 (20) "State policy committee" means the state employee
5-18 charitable campaign policy committee appointed under Section 4 of
5-19 this Act.
5-20 (21) "Statewide charitable organization" means a
5-21 federation or fund and its affiliated agencies that:
5-22 (A) provides direct or indirect health and human
5-23 services to residents of two or more noncontiguous standard
5-24 metropolitan statistical areas of this state; and
5-25 (B) has demonstrated the federation or fund is
6-1 accessible to state employees by maintaining:
6-2 (i) a staff or volunteer representative
6-3 residing in this state who is accessible at least 20 hours a week
6-4 during normal working hours; and
6-5 (ii) a toll-free long distance telephone
6-6 number.
6-7 SECTION 2. DEDUCTION AUTHORIZED. (a) An employee of a
6-8 state agency may authorize a deduction each pay period from the
6-9 employee's salary or wage payment for a contribution. The
6-10 comptroller by rule may establish a reasonable minimum deduction
6-11 for each pay period.
6-12 (b) An authorization shall direct the comptroller to
6-13 distribute the deducted funds to participating federations or funds
6-14 and local campaign managers as prescribed by rule.
6-15 (c) An authorization may designate an eligible charitable
6-16 organization to receive the deductions. If an authorization does
6-17 not designate an eligible charitable organization, the employee's
6-18 deductions shall be distributed to each participating federation or
6-19 fund and eligible local charitable organization in the proportion
6-20 that the deductions designated for that charitable organization
6-21 bear to the total of designated deductions in the local state
6-22 employee charitable campaign.
6-23 (d) A deduction under this Act must be in the form
6-24 prescribed by the comptroller.
6-25 (e) A state agency other than an institution of higher
7-1 education is not required to permit employees to authorize a
7-2 deduction under this Act until the first full payroll period after
7-3 the agency is converted to a system in which uniform statewide
7-4 payroll procedures are followed.
7-5 SECTION 3. DURATION OF DEDUCTION. (a) A deduction under
7-6 this Act ends on:
7-7 (1) the first anniversary of the date it begins; or
7-8 (2) the effective date of a revocation of or change in
7-9 the authorization by the employee.
7-10 (b) A state employee may revoke or change an authorization
7-11 by giving notice to the employing state agency. The notice must be
7-12 in the form and manner prescribed by the comptroller. A revocation
7-13 or change takes effect when it is approved by the comptroller.
7-14 SECTION 4. STATE EMPLOYEE CHARITABLE CAMPAIGN POLICY
7-15 COMMITTEE. (a) The state employee charitable campaign policy
7-16 committee consists of not more than 10 members.
7-17 (b) The governor may appoint not more than four members.
7-18 The lieutenant governor and the comptroller may appoint not more
7-19 than three members each.
7-20 (c) Each member of the state policy committee must be a
7-21 state employee. The membership must represent employees at
7-22 different levels of employee classification.
7-23 (d) The state policy committee has the duties provided by
7-24 Section 9(c) of this Act.
7-25 SECTION 5. STATE EMPLOYEE CHARITABLE CAMPAIGN ADVISORY
8-1 COMMITTEE. (a) The state employee charitable campaign advisory
8-2 committee consists of eight members appointed by the governor.
8-3 (b) Four members must represent campaign managers. Four
8-4 members must represent federations or funds that are not campaign
8-5 managers.
8-6 (c) The state advisory committee has the duties provided by
8-7 Section 9(d) of this Act.
8-8 SECTION 6. LOCAL STATE EMPLOYEE CHARITABLE CAMPAIGN
8-9 COMMITTEE. (a) The state policy committee shall appoint the
8-10 presiding officer of a local state employee charitable campaign
8-11 committee in each local campaign area.
8-12 (b) The presiding officer of a local employee committee
8-13 shall recruit at least five but not more than 10 additional
8-14 members. The members must represent different levels of employee
8-15 classification.
8-16 (c) Each member of a local employee committee may vote on
8-17 matters before the committee.
8-18 (d) A local employee committee has the duties provided by
8-19 Section 9(e) of this Act.
8-20 SECTION 7. LOCAL CAMPAIGN MANAGER. (a) A local employee
8-21 committee shall select a local campaign manager to conduct the
8-22 state employee charitable campaign in the local campaign area.
8-23 (b) A local campaign manager must have demonstrated
8-24 expertise to:
8-25 (1) provide effective campaign counsel and management;
9-1 and
9-2 (2) serve as fiscal agent for the eligible local
9-3 charitable organizations.
9-4 (c) A local campaign manager has the duties provided by
9-5 Section 9(g) of this Act.
9-6 SECTION 8. TERMS OF COMMITTEE MEMBERS; COMPENSATION. (a) A
9-7 member of the state advisory committee, the state policy committee,
9-8 or a local employee committee serves a two-year term.
9-9 (b) A member of the state advisory committee, the state
9-10 policy committee, or a local employee committee may not receive
9-11 compensation for serving on the committee and is not entitled to
9-12 reimbursement for expenses incurred in performing functions as a
9-13 member of the committee.
9-14 SECTION 9. ADMINISTRATION OF STATE EMPLOYEE CHARITABLE
9-15 CAMPAIGN. (a) A state employee charitable campaign shall be
9-16 conducted each autumn. A state employee charitable campaign must
9-17 be managed fairly and equitably in accordance with this Act and the
9-18 policies and procedures established by the state policy committee.
9-19 (b) With the advice of the state advisory committee, the
9-20 comptroller shall adopt rules for the administration of this Act.
9-21 (c) The state policy committee shall:
9-22 (1) establish local campaign areas based on
9-23 recommendation by the state advisory committee;
9-24 (2) select the state campaign manager;
9-25 (3) determine the eligibility of federations or funds
10-1 and their affiliated agencies for statewide participation in the
10-2 state employee charitable campaign;
10-3 (4) approve the recommended campaign plan, budget, and
10-4 generic materials to be used by campaign managers;
10-5 (5) oversee the state employee charitable campaign to
10-6 ensure that all campaign activities are conducted fairly and
10-7 equitably to promote unified solicitation on behalf of all
10-8 participants; and
10-9 (6) perform other duties prescribed by the
10-10 comptroller's rules.
10-11 (d) The state advisory committee shall:
10-12 (1) advise the comptroller and state policy committee
10-13 in adopting rules and establishing procedures for the operation and
10-14 management of the state employee charitable campaign;
10-15 (2) recommend the number, not to exceed 50, and
10-16 geographic scope of local campaign areas to the state policy
10-17 committee; and
10-18 (3) review and submit the recommended campaign plan,
10-19 budget, and generic materials to be used by campaign managers.
10-20 (e) The local employee committee shall:
10-21 (1) contract with a federated community campaign
10-22 organization to serve as the local campaign manager;
10-23 (2) determine the eligibility of local charitable
10-24 organizations to participate in the state employee charitable
10-25 campaign;
11-1 (3) in consultation with the local campaign manager,
11-2 approve the recommended campaign plan, budget, and generic
11-3 materials to be used by campaign managers;
11-4 (4) oversee the local state employee charitable
11-5 campaign to ensure that all local campaign activities are conducted
11-6 fairly and equitably to promote unified solicitation on behalf of
11-7 all participants; and
11-8 (5) perform other duties prescribed by the
11-9 comptroller's rules.
11-10 (f) The state campaign manager shall:
11-11 (1) develop a campaign plan;
11-12 (2) prepare a statewide campaign budget in cooperation
11-13 with the local campaign managers;
11-14 (3) prepare generic materials to be used by campaign
11-15 managers;
11-16 (4) coordinate and facilitate campaign services to
11-17 state employees throughout the state;
11-18 (5) ensure that all state employee charitable campaign
11-19 activities are conducted fairly and equitably to promote unified
11-20 solicitation on behalf of all participants; and
11-21 (6) perform other duties prescribed by the
11-22 comptroller's rules.
11-23 (g) A local campaign manager shall:
11-24 (1) in consultation with the local employee committee,
11-25 develop a cooperative plan, budget, and local campaign materials
12-1 for the local state employee charitable campaign;
12-2 (2) manage the local state employee charitable
12-3 campaign and provide for the effective involvement of each
12-4 participating federation or fund;
12-5 (3) ensure that all local state employee charitable
12-6 campaign activities are conducted fairly and equitably to promote
12-7 unified solicitation on behalf of all participants; and
12-8 (4) perform other duties prescribed by the
12-9 comptroller's rules.
12-10 SECTION 10. ELIGIBILITY OF CHARITABLE ORGANIZATIONS IN
12-11 GENERAL. (a) To be eligible to participate in a state employee
12-12 charitable campaign, a charitable organization must:
12-13 (1) be governed by a voluntary board of citizens that
12-14 meets at least twice each year to set policy and manage the affairs
12-15 of the organization;
12-16 (2) if the organization's annual budget:
12-17 (A) does not exceed $100,000, provide a
12-18 completed Internal Revenue Service Form 990 and an accountant's
12-19 review that offers full and open disclosure of the organization's
12-20 internal operations; or
12-21 (B) exceeds $100,000, be audited annually in
12-22 accordance with generally accepted auditing standards of the
12-23 American Institute of Certified Public Accountants; and
12-24 (3) not spend more than 25 percent of its annual
12-25 revenue for administrative and fundraising expenses, unless the
13-1 state policy committee grants the organization an exemption under
13-2 Subsection (b) of this section.
13-3 (b) The state policy committee may grant a charitable
13-4 organization a temporary exemption from the requirement of
13-5 Subsection (a)(3) of this section if the committee finds that:
13-6 (1) the organization's administrative and fundraising
13-7 expenses are reasonable under the circumstances; and
13-8 (2) the organization has a practical plan to reduce
13-9 its administrative and fundraising expenses to 25 percent of its
13-10 annual revenue within the next three years.
13-11 SECTION 11. ELIGIBILITY FOR STATEWIDE PARTICIPATION. (a) A
13-12 federation or fund that seeks statewide participation in a state
13-13 employee charitable campaign must apply on behalf of itself and its
13-14 affiliated agencies to the state policy committee during the annual
13-15 eligibility determination period specified by the committee. The
13-16 state policy committee shall review each application and may
13-17 approve a federation or fund for statewide participation only if
13-18 the federation or fund qualifies as a statewide charitable
13-19 organization or as an international federation or fund. The state
13-20 policy committee may approve an affiliated charitable organization
13-21 for statewide participation only if the organization qualifies as a
13-22 statewide charitable organization or is an affiliated agency of an
13-23 international federation or fund.
13-24 (b) An affiliated organization of an eligible federation or
13-25 fund that does not qualify as a statewide charitable organization
14-1 because it does not provide services in two or more noncontiguous
14-2 standard metropolitan statistical areas may apply to a local
14-3 employee committee for participation in a local state employee
14-4 charitable campaign.
14-5 (c) The state policy committee may use outside expertise and
14-6 resources available to it to assess the eligibility of charitable
14-7 organizations that seek to participate in a state employee
14-8 charitable campaign.
14-9 (d) An appeal from a decision of the state policy committee
14-10 shall be conducted in the manner prescribed by the committee. The
14-11 appeals process must permit a charitable organization that is not
14-12 approved for statewide participation to apply for participation in
14-13 a local state employee charitable campaign.
14-14 SECTION 12. ELIGIBILITY FOR LOCAL PARTICIPATION. (a) A
14-15 charitable organization that seeks local participation in a state
14-16 employee charitable campaign must apply to the appropriate local
14-17 employee committee during the annual eligibility determination
14-18 period specified by the state policy committee. The local employee
14-19 committee shall review each application and may approve a
14-20 charitable organization for local participation only if the
14-21 organization qualifies as a local charitable organization, and is:
14-22 (1) an unaffiliated local organization; or
14-23 (2) a federation or fund or an affiliate of a
14-24 federation or fund that is not approved for statewide
14-25 participation.
15-1 (b) An appeal from a decision of a local employee committee
15-2 shall be conducted in the manner prescribed by the state policy
15-3 committee.
15-4 SECTION 13. FEES. (a) A campaign manager may not charge a
15-5 fee to the comptroller, a state agency, or a state employee for the
15-6 services the campaign manager provides in connection with a state
15-7 employee charitable campaign.
15-8 (b) A campaign manager may charge a reasonable and necessary
15-9 fee for actual campaign expenses to the participating charitable
15-10 organizations in the same proportion that the contributions to that
15-11 charitable organization bear to the total of contributions in the
15-12 state employee charitable campaign.
15-13 (c) A fee under Subsection (b) of this section must be based
15-14 on the combined expenses of the state campaign manager and each
15-15 local campaign manager and may not exceed 10 percent of the total
15-16 amount collected in the state employee charitable campaign unless
15-17 the state policy committee approves a higher amount to accommodate
15-18 reasonable documented costs.
15-19 (d) The comptroller shall charge an administrative fee to
15-20 cover costs incurred by the comptroller and employing state
15-21 agencies in the implementation of this Act to the charitable
15-22 organizations participating in the first state employee charitable
15-23 campaign conducted under this Act in the same proportion that the
15-24 contributions to that charitable organization bear to the total of
15-25 contributions in that campaign. The comptroller shall charge an
16-1 administrative fee to cover costs incurred by the comptroller and
16-2 employing state agencies in the administration of this Act to the
16-3 charitable organizations in each subsequent state employee
16-4 charitable campaign in the same proportion that the contributions
16-5 to that charitable organization bear to the total of contributions
16-6 in that campaign. The comptroller shall determine the most
16-7 efficient and effective method of collecting the administrative fee
16-8 and shall adopt rules for the implementation of this section.
16-9 SECTION 14. FUNDRAISING PRACTICES. The fundraising
16-10 practices of a participating charitable organization must:
16-11 (1) be truthful and consumer-oriented;
16-12 (2) clearly identify and distinguish community-based
16-13 organizations from statewide and international organizations; and
16-14 (3) assure protection against:
16-15 (A) unauthorized use of a list of contributors
16-16 to the organization;
16-17 (B) payment of commissions, kickbacks, finder
16-18 fees, percentages, bonuses, or overrides for fundraising;
16-19 (C) mailing unordered merchandise or tickets
16-20 with a request for money in return; and
16-21 (D) general telephone solicitation of the
16-22 public.
16-23 SECTION 15. MISAPPLICATION OF CONTRIBUTIONS. (a) If the
16-24 state policy committee has reason to believe that a participating
16-25 charitable organization, a campaign manager, or a local employee
17-1 committee has misapplied contributions under this Act, the state
17-2 policy committee may request the comptroller or state auditor to
17-3 audit the person.
17-4 (b) If an audit under this section reveals gross negligence
17-5 or intentional misconduct on the part of a campaign manager or a
17-6 local employee committee, the state policy committee shall remove
17-7 the campaign manager or local employee committee. A person removed
17-8 under this subsection is not eligible to serve in the capacity from
17-9 which the person was removed before the fifth anniversary of the
17-10 date the person was removed.
17-11 (c) If an audit under this section reveals intentional
17-12 misconduct on the part of a campaign manager or a local employee
17-13 committee, the state policy committee shall forward its findings to
17-14 the appropriate law enforcement agency for further action.
17-15 (d) The attorney general may bring an action in a court of
17-16 competent jurisdiction to recover misapplied contributions.
17-17 (e) If an investigation or lawsuit results in a recovery of
17-18 misapplied contributions and there is not a judgment distributing
17-19 the amounts recovered, the state policy committee shall instruct
17-20 the comptroller as to the manner of refunding contributions to the
17-21 appropriate state employees.
17-22 SECTION 16. VOLUNTARY PARTICIPATION. Participation by a
17-23 state employee in a state employee charitable campaign is
17-24 voluntary. Each campaign manager, local employee committee,
17-25 charitable organization, state employee, and state agency shall
18-1 inform state employees that deductions are voluntary.
18-2 SECTION 17. CONFIDENTIALITY. Except as necessary to
18-3 administer this Act or on written authorization of the employee,
18-4 the following information is confidential:
18-5 (1) whether a state employee has authorized a
18-6 deduction under this Act;
18-7 (2) the amount of a deduction authorized by a state
18-8 employee under this Act; and
18-9 (3) the name of a federation or fund or local
18-10 charitable organization that a state employee has designated to
18-11 receive contributions under this Act, unless the employee has
18-12 executed a written pledge card or other document indicating that
18-13 the employee wishes to receive an acknowledgement from the
18-14 designated charitable organization.
18-15 SECTION 18. EXEMPTION FOR INTERNATIONAL FEDERATION OR FUND.
18-16 An international federation or fund is exempt from the requirements
18-17 of this Act relating to:
18-18 (1) maintenance of an established physical presence in
18-19 this state; and
18-20 (2) the provision of health and human services to
18-21 citizens of this state.
18-22 SECTION 19. APPROPRIATION. In addition to other amounts
18-23 appropriated to the comptroller or an employing state agency for
18-24 the fiscal biennium beginning September 1, 1993, the administrative
18-25 fees authorized by Section 13 of this Act are appropriated to the
19-1 comptroller and the employing state agencies for the fiscal
19-2 biennium beginning September 1, 1993, to administer this Act.
19-3 SECTION 20. TRANSITION. An institution of higher education
19-4 is not required to permit employees to authorize a deduction under
19-5 this Act until the first full payroll period that occurs after six
19-6 months after the publication of rules adopted under this Act.
19-7 SECTION 21. EMERGENCY. The importance of this legislation
19-8 and the crowded condition of the calendars in both houses create an
19-9 emergency and an imperative public necessity that the
19-10 constitutional rule requiring bills to be read on three several
19-11 days in each house be suspended, and this rule is hereby suspended,
19-12 and that this Act take effect and be in force from and after its
19-13 passage, and it is so enacted.