By Cain S.B. No. 1691
75R8831 MLS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to authorizing state agencies and state employees to
1-3 participate in charitable activities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle B, Title 6, Government Code, is amended
1-6 by adding Chapter 667 to read as follows:
1-7 CHAPTER 667. CHARITABLE ACTIVITIES ON STATE PROPERTY
1-8 Sec. 667.001. DEFINITIONS. In this chapter:
1-9 (1) "Charitable organization" means an organization
1-10 that:
1-11 (A) is organized for charitable purposes under
1-12 the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq.,
1-13 Vernon's Texas Civil Statutes) or holds a certificate of authority
1-14 issued under that Act;
1-15 (B) is exempt from taxation under Section 501(a)
1-16 of the Internal Revenue Code of 1986 as an organization described
1-17 in Section 501(c)(3) of that code and to which contributions are
1-18 deductible for income tax purposes under Section 170 of that code;
1-19 (C) complies with all applicable federal
1-20 nondiscrimination law, including Chapter 21, Title 42, United
1-21 States Code;
1-22 (D) complies with all state statutes and rules
1-23 relating to charitable organizations; and
1-24 (E) is not a private foundation.
2-1 (2) "Eligible charitable organization" means a
2-2 charitable organization eligible to participate in charitable
2-3 activities on state property as provided by Section 667.003.
2-4 (3) "State agency" means a department, commission,
2-5 board, office, institution of higher education, or other agency of
2-6 state government.
2-7 (4) "State employee" means an employee of a state
2-8 agency.
2-9 (5) "State property" means land and buildings owned,
2-10 leased, or otherwise controlled by the state.
2-11 Sec. 667.002. CHARITABLE ACTIVITIES ON STATE PROPERTY. (a)
2-12 A state employee is entitled to participate in fund-raising
2-13 activities conducted on state property for the benefit of an
2-14 eligible charitable organization.
2-15 (b) A state agency shall adopt rules regarding the location
2-16 and timing of charitable activities conducted under this chapter.
2-17 (c) Participation by a state employee in a charitable
2-18 activity conducted on state property is voluntary. A state agency
2-19 shall inform its employees that participation in charitable
2-20 activities conducted on state property is voluntary.
2-21 (d) The comptroller shall adopt rules establishing a process
2-22 for hearing state employee complaints regarding coercive activity
2-23 in charitable activities conducted on state property.
2-24 Sec. 667.003. ELIGIBILITY OF CHARITABLE ORGANIZATIONS. To
2-25 be eligible to conduct a charitable activity on state property, a
2-26 charitable organization must:
2-27 (1) be governed by a voluntary board of citizens that
3-1 meets at least twice each year to set policy and manage the affairs
3-2 of the organization;
3-3 (2) if the organization's annual budget:
3-4 (A) is less than $100,000, provide a completed
3-5 Internal Revenue Service Form 990 and an accountant's review that
3-6 offer full and open disclosure of the organization's internal
3-7 operations; or
3-8 (B) is equal to or more than $100,000, be
3-9 audited annually in accordance with generally accepted auditing
3-10 standards of the American Institute of Certified Public
3-11 Accountants; and
3-12 (3) not spend more than 25 percent of its annual
3-13 revenue for administrative and fund-raising expenses.
3-14 Sec. 667.004. FUND-RAISING PRACTICES. The fund-raising
3-15 practices of an eligible charitable organization must:
3-16 (1) be dedicated to a public purpose;
3-17 (2) be truthful and consumer-oriented;
3-18 (3) clearly identify and distinguish community-based
3-19 organizations from statewide and international organizations; and
3-20 (4) ensure protection against:
3-21 (A) unauthorized use of a list of contributors
3-22 to the organization;
3-23 (B) payment of commissions, kickbacks, finder
3-24 fees, percentages, bonuses, or overrides for fund-raising;
3-25 (C) mailing of unordered merchandise or tickets
3-26 with a request for money in return; and
3-27 (D) general telephone solicitation of the
4-1 public.
4-2 Sec. 667.005. FUNDS RAISED. (a) All funds collected by
4-3 state employees for the benefit of a charitable organization under
4-4 this chapter shall be deposited in the state treasury within 30
4-5 days after the date of collection.
4-6 (b) The comptroller by rule shall establish procedures for
4-7 the distribution of funds raised under this chapter to eligible
4-8 charitable organizations.
4-9 Sec. 667.006. LIMITATION ON USE OF FUNDS. An eligible
4-10 charitable organization may not use funds raised under this
4-11 subchapter to:
4-12 (1) conduct litigation; or
4-13 (2) make expenditures that would require the
4-14 organization to register under Chapter 305 if the organization were
4-15 not an entity exempt from registration under that chapter.
4-16 Sec. 667.007. AUDIT. (a) A state agency may request the
4-17 comptroller or state auditor to audit an eligible charitable
4-18 organization that the state agency reasonably believes has
4-19 misapplied funds raised under this chapter.
4-20 (b) The attorney general may bring an action to recover
4-21 misapplied funds.
4-22 SECTION 2. Section 497.091, Government Code, is amended by
4-23 adding Subsection (d) to read as follows:
4-24 (d) The department may contract with a nonprofit
4-25 organization to provide it with inmate labor if the organization
4-26 provides services to the general public that enhance the social
4-27 welfare and economic development of the community.
5-1 SECTION 3. Section 94.015, Human Resources Code, is amended
5-2 by adding Subsection (d) to read as follows:
5-3 (d) This chapter does not prohibit a state agency from
5-4 permitting a charitable organization to conduct a fund-raising
5-5 activity on state property under Chapter 667, Government Code.
5-6 SECTION 4. The importance of this legislation and the
5-7 crowded condition of the calendars in both houses create an
5-8 emergency and an imperative public necessity that the
5-9 constitutional rule requiring bills to be read on three several
5-10 days in each house be suspended, and this rule is hereby suspended,
5-11 and that this Act take effect and be in force from and after its
5-12 passage, and it is so enacted.