By: Cain S.B. No. 659
99S0446/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to authorizing state agencies and state employees to
1-2 participate in charitable activities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subtitle B, Title 6, Government Code, is amended
1-5 by adding Chapter 667 to read as follows:
1-6 CHAPTER 667. CHARITABLE ACTIVITIES ON STATE PROPERTY
1-7 Sec. 667.001. DEFINITIONS. In this chapter:
1-8 (1) "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) or holds a certificate of authority
1-13 issued under that Act;
1-14 (B) is exempt from taxation under Section
1-15 501(a), Internal Revenue Code of 1986, as an organization described
1-16 in Section 501(c)(3) of that code, contributions to which are
1-17 deductible for income tax purposes under Section 170 of that code;
1-18 (C) complies with all applicable federal
1-19 nondiscrimination law, including Chapter 21, Title 42, United
1-20 States Code;
1-21 (D) complies with all state statutes and rules
1-22 relating to charitable organizations; and
1-23 (E) is not a private foundation.
1-24 (2) "Eligible charitable organization" means a
2-1 charitable organization eligible to participate in charitable
2-2 activities on state property as provided by Section 667.003.
2-3 (3) "State agency" means a department, commission,
2-4 board, office, institution of higher education, or other agency of
2-5 state government.
2-6 (4) "State employee" means an employee of a state
2-7 agency.
2-8 (5) "State property" means land and buildings owned,
2-9 leased, or otherwise controlled by the state.
2-10 Sec. 667.002. CHARITABLE ACTIVITIES ON STATE PROPERTY.
2-11 (a) A state employee is entitled to participate in fund-raising
2-12 activities conducted on state property for the benefit of an
2-13 eligible charitable organization.
2-14 (b) A state agency shall adopt rules regarding the location
2-15 and timing of charitable activities conducted under this chapter.
2-16 (c) Participation by a state employee in a charitable
2-17 activity conducted on state property is voluntary. A state agency
2-18 shall inform its employees that participation in charitable
2-19 activities conducted on state property is voluntary.
2-20 (d) The comptroller shall adopt rules establishing a process
2-21 for hearing state employee complaints regarding coercive activity
2-22 in charitable activities conducted on state property.
2-23 Sec. 667.003. ELIGIBILITY OF CHARITABLE ORGANIZATIONS. To
2-24 be eligible to conduct a charitable activity on state property, a
2-25 charitable organization must:
2-26 (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
4-1 (D) general telephone solicitation of the
4-2 public.
4-3 Sec. 667.005. FUNDS RAISED. (a) All funds collected by
4-4 state employees for the benefit of a charitable organization under
4-5 this chapter shall be deposited in the state treasury within 30
4-6 days after the date of collection.
4-7 (b) The comptroller by rule shall establish procedures for
4-8 the distribution of funds raised under this chapter to eligible
4-9 charitable organizations.
4-10 Sec. 667.006. LIMITATION ON USE OF FUNDS. An eligible
4-11 charitable organization may not use funds raised under this chapter
4-12 to:
4-13 (1) conduct litigation; or
4-14 (2) make expenditures that would require the
4-15 organization to register under Chapter 305 if the organization were
4-16 not an entity exempt from registration under that chapter.
4-17 Sec. 667.007. AUDIT. (a) A state agency may request the
4-18 comptroller or state auditor to audit an eligible charitable
4-19 organization that the state agency reasonably believes has
4-20 misapplied funds raised under this chapter.
4-21 (b) The attorney general may bring an action to recover
4-22 misapplied funds.
4-23 SECTION 2. Section 94.015, Human Resources Code, is amended
4-24 by adding Subsection (d) to read as follows:
4-25 (d) This chapter does not prohibit a state agency from
4-26 permitting a charitable organization to conduct a fund-raising
5-1 activity on state property under Chapter 667, Government Code.
5-2 SECTION 3. The importance of this legislation and the
5-3 crowded condition of the calendars in both houses create an
5-4 emergency and an imperative public necessity that the
5-5 constitutional rule requiring bills to be read on three several
5-6 days in each house be suspended, and this rule is hereby suspended,
5-7 and that this Act take effect and be in force from and after its
5-8 passage, and it is so enacted.