MMA H.B. 2801 75(R)BILL ANALYSIS HIGHER EDUCATION H.B. 2801 By: Seaman 4-9-97 Committee Report (Unamended) BACKGROUND Current statute prohibits deductions from the compensation paid to an officer or employee whose compensation is paid in full or in part from state funds unless the deduction is authorized by law. Several statutory provisions authorize payroll deductions, such as membership fees in state employee organizations, employee contributions to Social Security, purchase of savings bonds, and payment to a credit union for share or deposit accounts. However, there are no mechanisms by which an employee of an institution of higher education can contribute through payroll deductions to a university, fundraiser drives or fundraising foundation. PURPOSE H.B. 2801 would allow an employee of an institution of higher education (institution) the option of authorizing a deduction each pay period from the employee's salary or wage payment for a charitable contribution to an institution or a non-profit organization whose purpose is to support the programs of the institution. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 51, Education Code, by adding Section 51.941, to read as follows: Sec. 51.941. PAYROLL DEDUCTIONS FOR SUPPORT OF INSTITUTIONS OF HIGHER EDUCATION AND AFFILIATED ORGANIZATIONS. Provides that an employee of an institution may authorize a payroll deduction to make a charitable contribution to an institution or to a non-profit organization whose purpose is to support the programs of an institution. Requires that a non-profit organization have an agreement as required by Section 2255.001, Government Code. SECTION 2. Emergency clause.