By Armbrister                                         S.B. No. 1124
         77R8399 DWS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to solicitation for a charitable organization of or
 1-3     benefiting state employees; providing a civil penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter D, Chapter 35, Business & Commerce
 1-6     Code, is amended by adding Section 35.471 to read as follows:
 1-7           Sec. 35.471.  SOLICITATION FOR CHARITABLE ORGANIZATION OF OR
 1-8     BENEFITING STATE EMPLOYEES. (a)  An organization that holds itself
 1-9     out to be an organization of or benefiting state employees may not
1-10     solicit, directly or through use of an independent solicitor,
1-11     another person to make a charitable contribution unless the
1-12     organization is governed by a board composed only of active or
1-13     retired state employees and active employees constitute a majority
1-14     of the board.
1-15           (b)  An organization that holds itself out to be an
1-16     organization of or benefiting a particular group of state employees
1-17     or employees of a particular state agency may not solicit, directly
1-18     or through use of an independent solicitor, another person to make
1-19     a charitable contribution unless the organization is governed by a
1-20     board composed only of active or retired state employees of that
1-21     group or agency, as applicable, and active employees constitute a
1-22     majority of the board.
1-23           (c)  An organization that violates Subsection (a) or (b) is
1-24     liable to the state for a civil penalty not to exceed $25,000 for
 2-1     each violation. The attorney general may bring an action to recover
 2-2     the penalty.
 2-3           SECTION 2.  This Act takes effect September 1, 2001.