HBA-NRS H.B. 3430 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3430
By: Merritt
Business & Industry
4/9/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, certain organizations may claim to be a state employee group and
raise funds for their own purposes without having a state employee on the
organization's governing board. House Bill 3430 makes it illegal to raise
funds through direct solicitation, or through an independent solicitor,
unless the organization raising funds and claiming to be a state employee
group is governed by a board composed by a majority of active employees.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3430 amends the Business & Commerce Code to prohibit an
organization that holds itself out to be an organization of or benefitting
state employees, or a particular group of state employees or employees of a
particular state agency from soliciting directly, or through an independent
solicitor, another person to make a charitable contribution unless the
organization is governed by a board composed only of active or retired
state employees and active employees constitute a majority of the board. An
organization that violates these provisions is liable to the state for a
civil penalty not to exceed $25,000 for each violation. The bill authorizes
the attorney general to bring an action to recover the penalty.  

EFFECTIVE DATE

September 1, 2001.