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.