By: Carriker S.B. No. 795
A BILL TO BE ENTITLED
AN ACT
1-1 relating to voluntary payroll deductions for state employees for
1-2 charitable organizations that provide health and human services;
1-3 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 and to which contributions are
1-17 deductible for income tax purposes under Section 170 of that code;
1-18 (C) fully complies with all applicable federal
1-19 nondiscrimination law, including Chapter 21, Title 42, United
1-20 States Code;
1-21 (D) fully complies with all state statutes and
1-22 rules relating to charitable organizations; and
1-23 (E) is not a private foundation.
2-1 (3) "Direct services" means providing funds or
2-2 programs for health and human services that directly benefit the
2-3 recipients.
2-4 (4) "Eligible charitable organization" means a
2-5 charitable organization that is determined to be eligible to
2-6 participate in the state employee charitable contribution campaign
2-7 as provided by Section 10 of this Act.
2-8 (5) "Federated community campaign organization" means
2-9 a federation or fund that:
2-10 (A) has demonstrated expertise in conducting
2-11 workplace charitable campaigns; and
2-12 (B) distributes funds raised through a
2-13 cooperative community campaign to at least five agencies that
2-14 provide direct services to residents of the campaign area.
2-15 (6) "Federation or fund" means an umbrella fundraising
2-16 entity that:
2-17 (A) is a charitable organization;
2-18 (B) acts as an agent for at least five
2-19 charitable organizations;
2-20 (C) is not organized exclusively to solicit
2-21 contributions from state employees; and
2-22 (D) is supported by voluntary contributions by
2-23 the public and is:
2-24 (i) incorporated in this state and has an
2-25 established physical presence in this state in the form of an
3-1 office or service facility that is staffed at least 20 hours a
3-2 week; or
3-3 (ii) incorporated outside this state,
3-4 includes at least 10 affiliated charitable organizations, has
3-5 existed at least three years, and participates in state employee
3-6 charitable campaigns in at least 10 other states.
3-7 (7) "Health and human services" means services
3-8 provided by a charitable organization that:
3-9 (A) benefit citizens of this state, including
3-10 children, youth, adults, elderly individuals, ill or infirm
3-11 individuals, or individuals with a mental or physical disability;
3-12 and
3-13 (B) consist of:
3-14 (i) human care, medical or other research,
3-15 education, legal precedence, legislative action, advocacy before
3-16 policy makers, or environmental protection or conservation in the
3-17 field of human health, social adjustment, or rehabilitation;
3-18 (ii) relief for victims of natural
3-19 disaster or other emergencies; or
3-20 (iii) assistance to impoverished
3-21 individuals in need of food, shelter, clothing, or other basic
3-22 needs.
3-23 (8) "Indirect services" means health and human
3-24 services that:
3-25 (A) are not direct services; and
4-1 (B) demonstrably benefit citizens of this state.
4-2 (9) "Institution of higher education" has the meaning
4-3 assigned by Section 61.003, Education Code.
4-4 (10) "International federation or fund" means a
4-5 federation or fund whose affiliated charities provide direct and
4-6 substantial charitable services to needy individuals of other
4-7 nations.
4-8 (11) "Local campaign area" means the county or
4-9 counties in which a local campaign manager conducts a state
4-10 employee charitable campaign.
4-11 (12) "Local campaign manager" means a federated
4-12 community campaign organization that is selected by the local
4-13 employee committee as provided by Section 7 of this Act.
4-14 (13) "Local charitable organization" means a
4-15 charitable organization that:
4-16 (A) provides direct or indirect health and human
4-17 services; and
4-18 (B) is accessible to state employees in the
4-19 local campaign area by maintaining:
4-20 (i) a publicly identified office with a
4-21 professional or volunteer staff within the local campaign area that
4-22 is open at least 20 hours a week during normal working hours; and
4-23 (ii) a locally listed telephone number.
4-24 (14) "Local employee committee" means a local state
4-25 employee charitable campaign committee selected as provided by
5-1 Section 6 of this Act.
5-2 (15) "State advisory committee" means the state
5-3 employee charitable campaign advisory committee appointed under
5-4 Section 5 of this Act.
5-5 (16) "State agency" means a department, commission,
5-6 board, office, institution of higher education, or other agency of
5-7 state government.
5-8 (17) "State campaign manager" means an eligible
5-9 federated community campaign organization that is selected by the
5-10 state policy committee to coordinate campaign operations with local
5-11 campaign managers.
5-12 (18) "State employee" means an employee of a state
5-13 agency.
5-14 (19) "State employee charitable campaign" means an
5-15 annual campaign conducted in communities or areas in which state
5-16 employees work to solicit contributions to eligible charitable
5-17 organizations.
5-18 (20) "State policy committee" means the state employee
5-19 charitable campaign policy committee appointed under Section 4 of
5-20 this Act.
5-21 (21) "Statewide charitable organization" means a
5-22 federation or fund and its affiliated agencies that:
5-23 (A) provides direct or indirect health and human
5-24 services to residents of two or more noncontiguous standard
5-25 metropolitan statistical areas of this state; and
6-1 (B) has demonstrated the federation or fund is
6-2 accessible to state employees by maintaining:
6-3 (i) a staff or volunteer representative
6-4 residing in this state who is accessible at least 20 hours a week
6-5 during normal working hours; and
6-6 (ii) a toll-free long distance telephone
6-7 number.
6-8 SECTION 2. DEDUCTION AUTHORIZED. (a) An employee of a
6-9 state agency may authorize a deduction each pay period from the
6-10 employee's salary or wage payment for a contribution. The
6-11 comptroller by rule may establish a reasonable minimum deduction
6-12 for each pay period.
6-13 (b) An authorization shall direct the comptroller to
6-14 distribute the deducted funds to participating federations or funds
6-15 and local campaign managers as prescribed by rule.
6-16 (c) An authorization may designate an eligible charitable
6-17 organization to receive the deductions. If an authorization does
6-18 not designate an eligible charitable organization, the employee's
6-19 deductions shall be distributed to each participating federation or
6-20 fund and eligible local charitable organization in the proportion
6-21 that the deductions designated for that charitable organization
6-22 bear to the total of designated deductions in the local state
6-23 employee charitable campaign.
6-24 (d) A deduction under this Act must be in the form
6-25 prescribed by the comptroller.
7-1 (e) A state agency other than an institution of higher
7-2 education is not required to permit employees to authorize a
7-3 deduction under this Act until the first full payroll period after
7-4 the agency is converted to a system in which uniform statewide
7-5 payroll procedures are followed.
7-6 SECTION 3. DURATION OF DEDUCTION. (a) A deduction under
7-7 this Act ends on:
7-8 (1) the first anniversary of the date it begins; or
7-9 (2) the effective date of a revocation of or change in
7-10 the authorization by the employee.
7-11 (b) A state employee may revoke or change an authorization
7-12 by giving notice to the employing state agency. The notice must be
7-13 in the form and manner prescribed by the comptroller. A revocation
7-14 or change takes effect when it is approved by the comptroller.
7-15 SECTION 4. STATE EMPLOYEE CHARITABLE CAMPAIGN POLICY
7-16 COMMITTEE. (a) The state employee charitable campaign policy
7-17 committee consists of not more than 10 members.
7-18 (b) The governor may appoint not more than four members.
7-19 The lieutenant governor and the comptroller may appoint not more
7-20 than three members each.
7-21 (c) Each member of the state policy committee must be a
7-22 state employee. The membership must represent employees at
7-23 different levels of employee classification.
7-24 (d) Appointments shall be made to the state policy committee
7-25 in a manner that ensures that the committee reflects the race,
8-1 ethnicity, and national origin of the citizens of this state.
8-2 (e) The state policy committee has the duties provided by
8-3 Subsection (c) of Section 9 of this Act.
8-4 SECTION 5. STATE EMPLOYEE CHARITABLE CAMPAIGN ADVISORY
8-5 COMMITTEE. (a) The state employee charitable campaign advisory
8-6 committee consists of eight members appointed by the governor.
8-7 (b) Four members must represent campaign managers. Four
8-8 members must represent federations or funds that are not campaign
8-9 managers.
8-10 (c) Appointments shall be made to the state advisory
8-11 committee in a manner that ensures that the committee reflects the
8-12 race, ethnicity, and national origin of the citizens of this state.
8-13 (d) The state advisory committee has the duties provided by
8-14 Subsection (d) of Section 9 of this Act.
8-15 SECTION 6. LOCAL STATE EMPLOYEE CHARITABLE CAMPAIGN
8-16 COMMITTEE. (a) The state policy committee shall appoint the
8-17 presiding officer of a local state employee charitable campaign
8-18 committee in each local campaign area.
8-19 (b) The presiding officer of a local employee committee
8-20 shall recruit at least five but not more than 10 additional
8-21 members. The members must represent different levels of employee
8-22 classification.
8-23 (c) Each member of a local employee committee may vote on
8-24 matters before the committee.
8-25 (d) Appointments shall be made to a local employee committee
9-1 in a manner that ensures that the committee reflects the race,
9-2 ethnicity, and national origin of the citizens of the local
9-3 campaign area for which appointments are being made.
9-4 (e) A local employee committee has the duties provided by
9-5 Subsection (e) of Section 9 of this Act.
9-6 SECTION 7. LOCAL CAMPAIGN MANAGER. (a) A local employee
9-7 committee shall select a local campaign manager to conduct the
9-8 state employee charitable campaign in the local campaign area.
9-9 (b) A local campaign manager must have demonstrated
9-10 expertise to:
9-11 (1) provide effective campaign counsel and management;
9-12 and
9-13 (2) serve as fiscal agent for the eligible local
9-14 charitable organizations.
9-15 (c) A local campaign manager has the duties provided by
9-16 Subsection (g) of Section 9 of this Act.
9-17 SECTION 8. TERMS OF COMMITTEE MEMBERS; COMPENSATION. (a) A
9-18 member of the state advisory committee, the state policy committee,
9-19 or a local employee committee serves a two-year term.
9-20 (b) A member of the state advisory committee, the state
9-21 policy committee, or a local employee committee may not receive
9-22 compensation for serving on the committee and is not entitled to
9-23 reimbursement for expenses incurred in performing functions as a
9-24 member of the committee.
9-25 SECTION 9. ADMINISTRATION OF STATE EMPLOYEE CHARITABLE
10-1 CAMPAIGN. (a) A state employee charitable campaign shall be
10-2 conducted each autumn. A state employee charitable campaign must
10-3 be managed fairly and equitably in accordance with this Act and the
10-4 policies and procedures established by the state policy committee.
10-5 (b) With the advice of the state advisory committee, the
10-6 comptroller shall adopt rules for the administration of this Act.
10-7 (c) The state policy committee shall:
10-8 (1) establish local campaign areas based on
10-9 recommendation by the state advisory committee;
10-10 (2) select the state campaign manager;
10-11 (3) determine the eligibility of federations or funds
10-12 and their affiliated agencies for statewide participation in the
10-13 state employee charitable campaign;
10-14 (4) approve the recommended campaign plan, budget, and
10-15 generic materials to be used by campaign managers;
10-16 (5) oversee the state employee charitable campaign to
10-17 ensure that all campaign activities are conducted fairly and
10-18 equitably to promote unified solicitation on behalf of all
10-19 participants; and
10-20 (6) perform other duties prescribed by the
10-21 comptroller's rules.
10-22 (d) The state advisory committee shall:
10-23 (1) advise the comptroller and state policy committee
10-24 in adopting rules and establishing procedures for the operation and
10-25 management of the state employee charitable campaign;
11-1 (2) recommend the number, not to exceed 50, and
11-2 geographic scope of local campaign areas to the state policy
11-3 committee; and
11-4 (3) review and submit the recommended campaign plan,
11-5 budget, and generic materials to be used by campaign managers.
11-6 (e) The local employee committee shall:
11-7 (1) contract with a federated community campaign
11-8 organization to serve as the local campaign manager;
11-9 (2) determine the eligibility of local charitable
11-10 organizations to participate in the state employee charitable
11-11 campaign;
11-12 (3) in consultation with the local campaign manager,
11-13 approve the recommended campaign plan, budget, and generic
11-14 materials to be used by campaign managers;
11-15 (4) oversee the local state employee charitable
11-16 campaign to ensure that all local campaign activities are conducted
11-17 fairly and equitably to promote unified solicitation on behalf of
11-18 all participants; and
11-19 (5) perform other duties prescribed by the
11-20 comptroller's rules.
11-21 (f) The state campaign manager shall:
11-22 (1) develop a campaign plan;
11-23 (2) prepare a statewide campaign budget in cooperation
11-24 with the local campaign managers;
11-25 (3) prepare generic materials to be used by campaign
12-1 managers;
12-2 (4) coordinate and facilitate campaign services to
12-3 state employees throughout the state;
12-4 (5) ensure that all state employee charitable campaign
12-5 activities are conducted fairly and equitably to promote unified
12-6 solicitation on behalf of all participants; and
12-7 (6) perform other duties prescribed by the
12-8 comptroller's rules.
12-9 (g) A local campaign manager shall:
12-10 (1) in consultation with the local employee committee,
12-11 develop a cooperative plan, budget, and local campaign materials
12-12 for the local state employee charitable campaign;
12-13 (2) manage the local state employee charitable
12-14 campaign and provide for the effective involvement of each
12-15 participating federation or fund;
12-16 (3) ensure that all local state employee charitable
12-17 campaign activities are conducted fairly and equitably to promote
12-18 unified solicitation on behalf of all participants; and
12-19 (4) perform other duties prescribed by the
12-20 comptroller's rules.
12-21 SECTION 10. ELIGIBILITY OF CHARITABLE ORGANIZATIONS IN
12-22 GENERAL. (a) To be eligible to participate in a state employee
12-23 charitable campaign, a charitable organization must:
12-24 (1) be governed by a voluntary board of citizens that
12-25 meets at least twice each year to set policy and manage the affairs
13-1 of the organization;
13-2 (2) if the organization's annual budget:
13-3 (A) does not exceed $100,000, provide a
13-4 completed Internal Revenue Service Form 990 and an accountant's
13-5 review that offers full and open disclosure of the organization's
13-6 internal operations; or
13-7 (B) exceeds $100,000, be audited annually in
13-8 accordance with generally accepted auditing standards of the
13-9 American Institute of Certified Public Accountants; and
13-10 (3) not spend more than 25 percent of its annual
13-11 revenue for administrative and fundraising expenses, unless the
13-12 state policy committee grants the organization an exemption under
13-13 Subsection (b) of this section.
13-14 (b) The state policy committee may grant a charitable
13-15 organization a temporary exemption from the requirement of
13-16 Subdivision (3) of Subsection (a) of this section if the committee
13-17 finds that:
13-18 (1) the organization's administrative and fundraising
13-19 expenses are reasonable under the circumstances; and
13-20 (2) the organization has a practical plan to reduce
13-21 its administrative and fundraising expenses to 25 percent of its
13-22 annual revenue within the next three years.
13-23 SECTION 11. ELIGIBILITY FOR STATEWIDE PARTICIPATION. (a) A
13-24 federation or fund that seeks statewide participation in a state
13-25 employee charitable campaign must apply on behalf of itself and its
14-1 affiliated agencies to the state policy committee during the annual
14-2 eligibility determination period specified by the committee. The
14-3 state policy committee shall review each application and may
14-4 approve a federation or fund for statewide participation only if
14-5 the federation or fund qualifies as a statewide charitable
14-6 organization or as an international federation or fund. The state
14-7 policy committee may approve an affiliated charitable organization
14-8 for statewide participation only if the organization qualifies as a
14-9 statewide charitable organization or is an affiliated agency of an
14-10 international federation or fund.
14-11 (b) An affiliated organization of an eligible federation or
14-12 fund that does not qualify as a statewide charitable organization
14-13 because it does not provide services in two or more noncontiguous
14-14 standard metropolitan statistical areas may apply to a local
14-15 employee committee for participation in a local state employee
14-16 charitable campaign.
14-17 (c) The state policy committee may use outside expertise and
14-18 resources available to it to assess the eligibility of charitable
14-19 organizations that seek to participate in a state employee
14-20 charitable campaign.
14-21 (d) An appeal from a decision of the state policy committee
14-22 shall be conducted in the manner prescribed by the committee. The
14-23 appeals process must permit a charitable organization that is not
14-24 approved for statewide participation to apply for participation in
14-25 a local state employee charitable campaign.
15-1 SECTION 12. ELIGIBILITY FOR LOCAL PARTICIPATION. (a) A
15-2 charitable organization that seeks local participation in a state
15-3 employee charitable campaign must apply to the appropriate local
15-4 employee committee during the annual eligibility determination
15-5 period specified by the state policy committee. The local employee
15-6 committee shall review each application and may approve a
15-7 charitable organization for local participation only if the
15-8 organization qualifies as a local charitable organization and is:
15-9 (1) an unaffiliated local organization; or
15-10 (2) a federation or fund or an affiliate of a
15-11 federation or fund that is not approved for statewide
15-12 participation.
15-13 (b) An appeal from a decision of a local employee committee
15-14 shall be conducted in the manner prescribed by the state policy
15-15 committee.
15-16 SECTION 13. FEES. (a) A campaign manager may not charge a
15-17 fee to the comptroller, a state agency, or a state employee for the
15-18 services the campaign manager provides in connection with a state
15-19 employee charitable campaign.
15-20 (b) A campaign manager may charge a reasonable and necessary
15-21 fee for actual campaign expenses to the participating charitable
15-22 organizations in the same proportion that the contributions to that
15-23 charitable organization bear to the total of contributions in the
15-24 state employee charitable campaign.
15-25 (c) A fee under Subsection (b) of this section must be based
16-1 on the combined expenses of the state campaign manager and each
16-2 local campaign manager and may not exceed 10 percent of the total
16-3 amount collected in the state employee charitable campaign unless
16-4 the state policy committee approves a higher amount to accommodate
16-5 reasonable documented costs.
16-6 (d) The comptroller shall charge an administrative fee to
16-7 cover costs incurred by the comptroller and employing state
16-8 agencies in the implementation of this Act to the charitable
16-9 organizations participating in the first state employee charitable
16-10 campaign conducted under this Act in the same proportion that the
16-11 contributions to that charitable organization bear to the total of
16-12 contributions in that campaign. The comptroller shall charge an
16-13 administrative fee to cover costs incurred by the comptroller and
16-14 employing state agencies in the administration of this Act to the
16-15 charitable organizations in each subsequent state employee
16-16 charitable campaign in the same proportion that the contributions
16-17 to that charitable organization bear to the total of contributions
16-18 in that campaign. The comptroller shall determine the most
16-19 efficient and effective method of collecting the administrative fee
16-20 and shall adopt rules for the implementation of this section.
16-21 (e) An institution of higher education that is authorized to
16-22 operate a payroll system reimbursable from the state treasury shall
16-23 charge an administrative fee to the participating charitable
16-24 organizations to cover the actual costs incurred in the
16-25 administration of this Act. The fee shall be assessed and
17-1 collected annually and shall be charged in the same proportion that
17-2 the contributions to the charitable organization bear to the total
17-3 contributions in that campaign.
17-4 SECTION 14. FUNDRAISING PRACTICES. The fundraising
17-5 practices of a participating charitable organization must:
17-6 (1) be truthful and consumer-oriented;
17-7 (2) clearly identify and distinguish community-based
17-8 organizations from statewide and international organizations; and
17-9 (3) assure protection against:
17-10 (A) unauthorized use of a list of contributors
17-11 to the organization;
17-12 (B) payment of commissions, kickbacks, finder
17-13 fees, percentages, bonuses, or overrides for fundraising;
17-14 (C) mailing unordered merchandise or tickets
17-15 with a request for money in return; and
17-16 (D) general telephone solicitation of the
17-17 public.
17-18 SECTION 15. MISAPPLICATION OF CONTRIBUTIONS. (a) If the
17-19 state policy committee has reason to believe that a participating
17-20 charitable organization, a campaign manager, or a local employee
17-21 committee has misapplied contributions under this Act, the state
17-22 policy committee may request the comptroller or state auditor to
17-23 audit the person.
17-24 (b) If an audit under this section reveals gross negligence
17-25 or intentional misconduct on the part of a campaign manager or a
18-1 local employee committee, the state policy committee shall remove
18-2 the campaign manager or local employee committee. A person removed
18-3 under this subsection is not eligible to serve in the capacity from
18-4 which the person was removed before the fifth anniversary of the
18-5 date the person was removed.
18-6 (c) If an audit under this section reveals intentional
18-7 misconduct on the part of a campaign manager or a local employee
18-8 committee, the state policy committee shall forward its findings to
18-9 the appropriate law enforcement agency for further action.
18-10 (d) The attorney general may bring an action in a court of
18-11 competent jurisdiction to recover misapplied contributions.
18-12 (e) If an investigation or lawsuit results in a recovery of
18-13 misapplied contributions and there is not a judgment distributing
18-14 the amounts recovered, the state policy committee shall instruct
18-15 the comptroller as to the manner of refunding contributions to the
18-16 appropriate state employees.
18-17 SECTION 16. VOLUNTARY PARTICIPATION. (a) Participation by
18-18 a state employee in a state employee charitable campaign is
18-19 voluntary. Each campaign manager, local employee committee,
18-20 charitable organization, state employee, and state agency shall
18-21 inform state employees that deductions are voluntary.
18-22 (b) The comptroller shall adopt rules establishing a process
18-23 for hearing employee complaints regarding coercive activity in a
18-24 state employee charitable campaign.
18-25 SECTION 17. CONFIDENTIALITY. Except as necessary to
19-1 administer this Act or on written authorization of the employee,
19-2 the following information is confidential:
19-3 (1) whether a state employee has authorized a
19-4 deduction under this Act;
19-5 (2) the amount of a deduction authorized by a state
19-6 employee under this Act; and
19-7 (3) the name of a federation or fund or local
19-8 charitable organization that a state employee has designated to
19-9 receive contributions under this Act, unless the employee has
19-10 executed a written pledge card or other document indicating that
19-11 the employee wishes to receive an acknowledgement from the
19-12 designated charitable organization.
19-13 SECTION 18. EXEMPTION FOR INTERNATIONAL FEDERATION OR FUND.
19-14 An international federation or fund is exempt from the requirements
19-15 of this Act relating to:
19-16 (1) maintenance of an established physical presence in
19-17 this state; and
19-18 (2) the provision of health and human services to
19-19 citizens of this state.
19-20 SECTION 19. APPROPRIATION. In addition to other amounts
19-21 appropriated to the comptroller or an employing state agency for
19-22 the fiscal biennium beginning September 1, 1993, the administrative
19-23 fees authorized by Section 13 of this Act are appropriated to the
19-24 comptroller and the employing state agencies for the fiscal
19-25 biennium beginning September 1, 1993, to administer this Act.
20-1 SECTION 20. TRANSITION. An institution of higher education
20-2 is not required to permit employees to authorize a deduction under
20-3 this Act until the first full payroll period that occurs after six
20-4 months after the publication of rules adopted under this Act.
20-5 SECTION 21. EMERGENCY. The importance of this legislation
20-6 and the crowded condition of the calendars in both houses create an
20-7 emergency and an imperative public necessity that the
20-8 constitutional rule requiring bills to be read on three several
20-9 days in each house be suspended, and this rule is hereby suspended,
20-10 and that this Act take effect and be in force from and after its
20-11 passage, and it is so enacted.