1-1     By:  Armbrister                                       S.B. No. 1124
 1-2           (In the Senate - Filed March 6, 2001; March 7, 2001, read
 1-3     first time and referred to Committee on State Affairs; May 2, 2001,
 1-4     reported favorably by the following vote:  Yeas 5, Nays 3;
 1-5     May 2, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to solicitation for a charitable organization of or
 1-9     benefiting state employees; providing a civil penalty.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter D, Chapter 35, Business & Commerce
1-12     Code, is amended by adding Section 35.471 to read as follows:
1-13           Sec. 35.471.  SOLICITATION FOR CHARITABLE ORGANIZATION OF OR
1-14     BENEFITING STATE EMPLOYEES.  (a)  An organization that holds itself
1-15     out to be an organization of or benefiting state employees may not
1-16     solicit, directly or through use of an independent solicitor,
1-17     another person to make a charitable contribution unless the
1-18     organization is governed by a board composed only of active or
1-19     retired state employees and active employees constitute a majority
1-20     of the board.
1-21           (b)  An organization that holds itself out to be an
1-22     organization of or benefiting a particular group of state employees
1-23     or employees of a particular state agency may not solicit, directly
1-24     or through use of an independent solicitor, another person to make
1-25     a charitable contribution unless the organization is governed by a
1-26     board composed only of active or retired state employees of that
1-27     group or agency, as applicable, and active employees constitute a
1-28     majority of the board.
1-29           (c)  An organization that violates Subsection (a) or (b) is
1-30     liable to the state for a civil penalty not to exceed $25,000 for
1-31     each violation.  The attorney general may bring an action to
1-32     recover the penalty.
1-33           SECTION 2.  This Act takes effect September 1, 2001.
1-34                                  * * * * *