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