34 TAC §5.48
The Comptroller of Public Accounts adopts amendments to §5.48,
concerning deductions for contributions to charitable organizations, with
changes to the proposed text as published in the October 2, 1998, issue of
the
Texas Register
(23 TexReg 9954).
The primary purpose of the amendments is to address legislative changes
made during the 75th regular session of the legislature. Senate Bill No. 645
amended the Government Code, §659.148(d), to authorize the comptroller
to decline to charge an administrative fee to cover costs incurred while administering
the charitable contribution deduction, if the comptroller determines the costs
that would be covered by the fee are insignificant. House Bill No. 2491 added
§659.1311 to the Government Code for the purpose of authorizing a public
junior college not to participate in the state employee charitable contribution
program. Finally, Senate Bill No. 1036 authorized the selection of a charitable
organization to be the state campaign manager or a local campaign manager
if no federated community campaign organization applied to be the manager.
Another purpose of the amendments is to make changes to §5.48 that
are necessary or desirable in light of several state employee charitable campaigns
that have been conducted since the section was first adopted. These amendments
would affect the definition of "campaign year" for employees of institutions
of higher education who are paid every other week, the deadline for receipt
of deduction authorization forms, the review of those forms, the manner in
which an employee may change the amount of or cancel a deduction, the number
of charitable organizations an employee may designate to receive the employee's
deductions, applications for direct deposit of deductions by institutions
of higher education, and the deadlines for submission of campaign reports.
The final purpose of the amendments is to reflect the legislature's transfer
of the charitable deduction statutes from the Revised Statutes, Article 6813h,
to the Government Code, Chapter 659, Subchapter H
Texas A&M University provided three comments about the proposed amendments,
which were the only comments the comptroller received during the public comment
period.
First, the university requested a change to the proposed text of subsection
(b)(1)(B), which would have required each institution of higher education
to establish a maximum number of monthly deductions that an employee of the
institution may authorize. The university requested that the maximum be three
unless the institution had specified a higher maximum in its rules or procedures.
The purpose of the request was to relieve the institution from the obligation
to specify any maximum number unless the institution wanted the maximum to
be higher than three.
Second, the university requested a change to the proposed text of subsection
(c)(1)(B), which would have required each institution of higher education
to specify the maximum number of eligible local charitable organizations that
may receive a state employee's deducted amounts through a local campaign manager.
The university requested that the maximum be nine unless the institution had
specified a higher maximum in its rules or procedures. The purpose of the
request was to relieve the institution from the obligation to specify any
maximum number unless the institution wanted the maximum to be higher than
nine.
Third, the university requested a change to the proposed text of subsection
(c)(2)(B), which would have required each institution of higher education
to specify the maximum number of eligible charitable organizations that may
receive a state employee's deducted amounts through a statewide federation
or fund. The university requested that the maximum be nine unless the institution
had specified a higher maximum in its rules or procedures. The purpose of
the request was to relieve the institution from the obligation to specify
any maximum number unless the institution wanted the maximum to be higher
than nine.
The comptroller agrees with all of Texas A&M University's requests
and has changed subsections (b)(1)(B), (c)(1)(B), and (c)(2)(B) accordingly.
The only other changes to the proposed text involve the correction of typographical
errors. In subsection (a)(18), the word "A" is being added immediately after
the hyphen. In the first sentence of subsection (c)(1)(A), the word "if" is
being substituted for the word "it." And in subsection (h)(1)(A), the second
of the two commas following "659.147" is being deleted.
The amendments are adopted under the Government Code, §§659.132(f)-(g),
(j), 659.133(b), 659.136(c), 659.137(a), 659.140(e)(6), 659.141(6), 659.142(d),
659.143(e)(5), 659.144(c)(4), and 659.148(d), which generally authorize the
comptroller to adopt rules for administration of the payroll deduction to
make contributions to charitable organizations.
The amendments implement the Government Code, Chapter 659, Subchapter H.
§5.48.Deductions for Contributions to Charitable Organizations. (Government Code, Chapter 659, Subchapter H).
(a)
Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise.
(1)
Campaign coordinator - The state employee who has volunteered
and been designated by the chief administrator of a state agency to coordinate
the state employee charitable campaign for that agency.
(2)
Campaign material - A logo identifying the state employee
charitable campaign, a campaign slogan, a campaign film, a campaign donor
brochure, a donor authorization form, and other materials as approved by the
state policy committee.
(3)
Campaign year - For salary or wages paid once each
month, the payroll periods from December 1st through November 30th. For salary
or wages paid twice each month, the payroll periods from December 16th through
December 15th. For salary or wages paid every other week by a state agency
that is not an institution of higher education, the 26 consecutive payroll
periods beginning with the period that corresponds to the payment of salary
or wages occurring on or closest to, but not after, December 31st. For salary
or wages paid every other week by an institution of higher education, the
26 consecutive payroll periods beginning with the period designated by the
institution if the period is entirely within December.
(4)
Charitable organization - Has the meaning assigned
by the Government Code, §659.131.
(5)
Comptroller - The comptroller of public accounts for
the State of Texas.
(6)
Comptroller's electronic funds transfer system - The
system authorized by the Government Code, §403.016, that the comptroller
uses to initiate payments instead of issuing warrants.
(7)
Deduction - The amount subtracted from a state employee's
salary or wages to make a contribution to a local campaign manager or a statewide
federation or fund that has been assigned a payee identification number by
the comptroller.
(8)
Designated representative - A state employee volunteer
or other individual named by a local campaign manager or a statewide federation
or fund as its representative.
(9)
Direct services - Has the meaning assigned by the
Government Code, §659.131.
(10)
Eligible charitable organization - A charitable organization
that is determined to be eligible to participate in the state employee charitable
campaign as provided by this section and the Government Code, §659.146.
(11)
Eligible local charitable organization - A local
charitable organization that has been approved for local participation in
the state employee charitable campaign.
(12)
Employer - A state agency that employs at least one
state employee.
(13)
Federated community campaign organization - Has the
meaning assigned by the Government Code, §659.131.
(14)
Federation or fund - Has the meaning assigned by
the Government Code, §659.131.
(15)
Generic campaign materials - Campaign materials that
have not been modified to reflect a particular local campaign area's participants
or a local employee committee.
(16)
Health and human services - Has the meaning assigned
by the Government Code, 659.131.
(17)
Holiday - A state or national holiday as specified
by the Government Code, §662.003. The term does not include a state or
national holiday if the General Appropriations Act prohibits state agencies
from observing the holiday.
(18)
Include - A term of enlargement and not of limitation
or exclusive enumeration. The use of the term does not create a presumption
that components not expressed are excluded.
(19)
Indirect services - Has the meaning assigned by the
Government Code, §659.131.
(20)
Institution of higher education - Has the meaning
assigned by the Education Code, 61.003. The term does not include a public
junior college that has decided not to participate in the state employee charitable
contribution program in accordance with subsection (x) of this section.
(21)
Local campaign area - Has the meaning assigned by
the Government Code, §659.131.
(22)
Local campaign manager - A federated community campaign
organization or a charitable organization that is selected by a local employee
committee as provided by this section and the Government Code, §659.144.
(23)
Local campaign materials - Campaign materials that
have been modified to reflect a particular local campaign area's participants
and the local employee committee for the area if the state policy committee
has approved the modifications, and additional materials that the state policy
committee has approved because they are based on and consistent with the campaign
materials approved by the committee.
(24)
Local charitable organization - Has the meaning assigned
by the Government Code, 659.131.
(25)
Local employee committee - Has the meaning assigned
by the Government Code, 659.131.
(26)
May not - A prohibition. The term does not mean "might
not" or its equivalents.
(27)
Payee identification number - The 14-digit number
that the comptroller assigns to each direct recipient of a payment made by
the comptroller for the State of Texas.
(28)
Public junior college - Has the meaning assigned
by the Education Code, §61.003. The term includes a community college.
(29)
Salary or wages - Base salary or wages, longevity
pay, or hazardous duty pay.
(30)
State advisory committee - Has the meaning assigned
by the Government Code, §659.131.
(31)
State agency - Has the meaning assigned by the Government
Code, §659.131.
(32)
State campaign manager - A federated community campaign
organization or a charitable organization that is selected by the state policy
committee as provided by this section to coordinate state employee charitable
campaign operations with local campaign managers.
(33)
State employee - An employee of a state agency. The
term does not include an employee of a public junior college that is not participating
in the state employee charitable contribution program in accordance with subsection
(x) of this section.
(34)
State employee charitable campaign - Has the meaning
assigned by the Government Code, §659.131.
(35)
State employee charitable contribution program -
The charitable deduction program authorized by the Government Code, Chapter
659, Subchapter D (exclusive of the deductions authorized by the Government
Code, §659.1311(b)-(c)).
(36)
State policy committee - Has the meaning assigned
by the Government Code, §659.131.
(37)
Statewide federation or fund - A federation or fund
that has been approved for statewide participation in the state employee charitable
campaign.
(38)
Uniform statewide payroll/personnel system - A system
in which uniform statewide payroll procedures are followed.
(39)
Workday - A calendar day other than Saturday, Sunday,
or a holiday.
(b)
Deductions.
(1)
Authorization of deductions.
(A)
A state employee who is not employed by an institution
of higher education may authorize not more than three monthly deductions from
the employee's salary or wages.
(B)
A state employee who is employed by an institution of higher
education may authorize not more than three monthly deductions from the employee's
salary or wages, if the institution has not specified a higher maximum number
of deductions that its employees may authorize, If the institution has specified
a higher maximum number, then the employee may authorize not more than that
number.
(C)
A state employee may authorize only one deduction to any
particular statewide federation or fund or local campaign manager.
(D)
A state employee may authorize a deduction only if the
employee:
(i)
properly completes an authorization form; and
(ii)
submits the form to a designated representative of the
statewide federation or fund or the local campaign manager to which the deduction
will be paid.
(E)
Except as provided in this subparagraph, a state employee
may authorize a deduction only during a state employee charitable campaign.
(i)
State law says that a state agency, other than an institution
of higher education, is not required to permit its state employees to authorize
a deduction until the first full payroll period after the agency is converted
to the uniform statewide payroll/personnel system. A state agency covered
by that law shall permit its state employees to authorize deductions so that
they are effective not later than the first full payroll period after conversion
of the agency. Those authorizations may be made even if a state employee charitable
campaign is not occurring when the authorizations are made.
(ii)
A state employee who begins employment with the state
may authorize a deduction if the employee's employer receives the employee's
properly completed authorization form not later than the 30th day after the
employee's first day of employment with the agency. A new state employee may
authorize a deduction even if a state employee charitable campaign is not
occurring when the employment begins or the form is provided. This clause
does not apply to a state employee who transfers from one state agency to
a second state agency.
(F)
Neither the comptroller nor a state agency is liable or
responsible for any damages or other consequences resulting from a state employee
authorizing an incorrect amount of a deduction.
(2)
Minimum amount of deductions. If a state employee
authorizes a deduction, the minimum amount of the deduction is two dollars
per month. This minimum applies to each deduction authorized by the employee.
For example, if the employee authorizes two deductions, then the amount of
each of those deductions must be at least two dollars per month.
(3)
Changes in the amount of deductions.
(A)
At any time during a campaign year, a state employee may
authorize a change in the amount to be deducted from the employee's salary
or wages during that year.
(B)
A state employee may authorize a change only by submitting
a written authorization to the employee's employer. The authorization may
be a properly completed authorization form or another type of written communication
that complies with subparagraph (C) of this paragraph.
(C)
To be valid, a written communication, other than an authorization
form, that a state employee submits for the purpose of authorizing a change
must specify or contain:
(i)
the employee's name and social security number;
(ii)
the name of the employee's employer;
(iii)
the six-digit code number of the charity for which the
change is being authorized or, if the number is unknown, the charity's name;
(iv)
the new amount to be deducted;
(v)
the effective date of the change; and
(vi)
the employee's original signature.
(D)
A state employee may not change the statewide federation
or fund or the local campaign manager that receives deducted amounts if the
change would be provided outside the time a state employee charitable campaign
is being conducted.
(E)
A state employee may not change the eligible charitable
organizations designated to receive deducted amounts paid to a statewide federation
or fund if the change would be provided outside the time a state employee
charitable campaign is being conducted.
(F)
A state employee may not change the eligible local charitable
organizations designated to receive deducted amounts paid to a local campaign
manager if the change would be provided outside the time a state employee
charitable campaign is being conducted.
(4)
Sufficiency of salary or wages to support a deduction.
(A)
A state employee is solely responsible for ensuring that
the employee's salary or wages are sufficient to support a deduction.
(B)
If a state employee's salary or wages are sufficient to
support only part of a deduction, then no part of the deduction may be made.
(C)
If a state employee has multiple deductions and the employee's
salary or wages are insufficient to support all the deductions, then none
of the deductions may be made.
(D)
The amount that may not be deducted from a state employee's
salary or wages because they are insufficient to support the deduction may
not be made up by deducting the amount from subsequent payments of salary
or wages.
(5)
Timing of deductions.
(A)
Except as provided in subparagraph (B) of this paragraph,
a deduction may be made only from the salary or wages that are paid on the
first workday of a month.
(B)
If a state employee is not entitled to receive a payment
of salary or wages on the first workday of a month, then the employee's employer
may designate the payment of salary or wages during the month from which a
deduction will be made. A deduction may be made only once each month.
(6)
Cancellation of deductions.
(A)
A state employee may cancel a deduction at any time by
submitting a written cancellation notice to the employee's employer. The notice
may be a properly completed authorization form or another type of written
communication that complies with subparagraph (B) of this paragraph.
(B)
To be valid, a written communication, other than an authorization
form, that a state employee submits for the purpose of canceling a deduction
must specify or contain:
(i)
the employee's name and social security number;
(ii)
the name of the employee's employer;
(iii)
the six-digit code number of the charity for which the
cancellation is being made or, if the number is unknown, the charity's name;
(iv)
the amount of the deduction to be canceled;
(v)
the effective date of the cancellation; and
(vi)
the employee's original signature.
(7)
Interagency transfers of state employees.
(A)
A deduction that started while a state employee was employed
by a state agency may resume after the employee transfers to a second state
agency only if:
(i)
the employee requests a copy of the employee's authorization
form from the first state agency and submits the copy to the second state
agency;
(ii)
the employee properly completes and submits an additional
authorization form to the second state agency, if the agency requires submission
of the form; and
(iii)
the second state agency receives the copy of the employee's
authorization form and the additional authorization form, if required, not
later than the 30th day after the employee's first day of employment by the
second state agency.
(B)
A deduction that may resume under subparagraph (A) of this
paragraph shall become effective at the second state agency not later than
with the salary and wages paid on the first workday of the second month following
the later of:
(i)
the month in which the agency receives the copy of the
authorization form to which subparagraph (A)(i) of this paragraph refers;
or
(ii)
the month in which the agency receives the additional
authorization form, if the agency requires submission of the form.
(C)
This subparagraph applies only if a state agency requires
an additional authorization form to be submitted under subparagraph (A)(ii)
of this paragraph. The statewide federation or fund or the local campaign
manager named on the form must be the same as that named on the original authorization
form. The additional authorization form may not make any changes other than
those that a state employee who has not changed employers may make after a
state employee charitable campaign has ended.
(c)
Designation of charitable organizations to receive deducted
amounts.
(1)
Receiving deducted amounts through local campaign managers.
(A)
This subparagraph applies to a state employee only if not
employed by an institution of higher education. A state employee's authorization
of a deduction to a local campaign manager may designate not more than nine
eligible local charitable organizations to receive the deducted amounts through
the manager.
(B)
This subparagraph applies to a state employee only if employed
by an institution of higher education. A state employee's authorization of
a deduction to a local campaign manager may designate one or more eligible
local charitable organizations to receive the employee's deducted amounts
through the manager. The employee may designate not more than nine organizations
if the employing institution of higher education has not specified a higher
maximum number of designations that its employees may make. If the institution
has specified a higher maximum number, then the employee may designate not
more than that number.
(C)
If a state employee's authorization of a deduction to a
local campaign manager designates only one eligible local charitable organization,
then the organization's designated initial distribution amount with respect
to the employee is equal to the employee's entire deduction to the local campaign
manager.
(D)
If a state employee's authorization of a deduction to a
local campaign manager designates more than one eligible local charitable
organization, then the designation is valid only if it specifies the designated
initial distribution amount for each organization.
(E)
If an eligible local charitable organization that a state
employee designates under subparagraph (A) or (B) of this paragraph is a federation
or fund, then the federation or fund shall distribute the deducted amounts
it receives to its affiliated eligible charitable organizations according
to its policy.
(F)
This subparagraph applies if a state employee's authorization
of a deduction to a local campaign manager does not contain a valid designation.
The undesignated initial distribution amounts with respect to the employee
for eligible local charitable organizations and statewide federations or funds
shall be determined according to this subparagraph.
(i)
Only an eligible local charitable organization that has
been approved to participate in the local campaign area may have an undesignated
initial distribution amount. Only a statewide federation or fund to which
state employees in the local campaign area have authorized deductions may
have an undesignated initial distribution amount.
(ii)
The undesignated initial distribution amount for an eligible
local charitable organization is equal to the distribution percentage for
the organization multiplied by the amount of the employee's deduction authorization
to the local campaign manager. The distribution percentage is equal to the
organization's total designated initial distribution amount as determined
or specified under subparagraphs (C) and (D) of this paragraph for all state
employees in the local campaign area divided by the sum of:
(I)
the total designated initial distribution amount for all
eligible local charitable organizations in the local campaign area as determined
or specified under subparagraphs (C) and (D) of this paragraph; and
(II)
the total amount of deductions authorized to statewide
federations or funds by state employees in the local campaign area.
(iii)
The undesignated initial distribution amount for a statewide
federation or fund is equal to the distribution percentage for the federation
or fund multiplied by the amount of the employee's deduction authorization
to the local campaign manager. The distribution percentage is equal to the
total amount of deductions authorized to the federation or fund by state employees
in the local campaign area divided by the sum of:
(I)
the total designated initial distribution amount for all
eligible local charitable organizations in the local campaign area as determined
or specified under subparagraphs (C) and (D) of this paragraph; and
(II)
the total amount of deductions authorized to statewide
federations or funds by state employees in the local campaign area.
(G)
The following example illustrates the calculation of undesignated
initial distribution amounts according to subparagraph (F) of this paragraph.
(i)
The following assumptions apply in this example.
(I)
State employees in the Austin local campaign area have
authorized $15,000 in deductions to the Austin local campaign manager. Of
that amount, state employees have designated $10,000 for distribution to the
following eligible local charitable organizations. Organization 1 has been
designated to receive $5,000. Organization 2 has been designated to receive
$3,000. And Organization 3 has been designated to receive $2,000.
(II)
Of the $15,000 in authorized deductions to the Austin
local campaign manager, $5,000 is undesignated.
(III)
State employees in the Austin local campaign area have
authorized total deductions of $10,000 to the following statewide federations
or funds. Organizations 4 and 5 have each been authorized to receive $5,000.
(ii)
The calculation of undesignated initial distribution amounts
in this subparagraph relates only to the $5,000 in undesignated deductions
to the Austin local campaign manager. This is because an eligible local charitable
organization or a statewide federation or fund has an undesignated initial
distribution amount only with respect to undesignated deductions.
(iii)
The first step is to determine the designated initial
distribution amount for each eligible local charitable organization listed
in clause (i)(I) of this subparagraph. That amount for each organization is
the total amount of deductions that state employees have designated to the
organization. Therefore, the designated initial distribution amount for Organization
1 is $5,000, Organization 2 is $3,000, and Organization 3 is $2,000.
(iv)
The second step is to determine the distribution percentage
for each eligible local charitable organization listed in clause (i)(I) of
this subparagraph. The distribution percentage must be determined according
to subparagraph (F)(ii) of this paragraph. The distribution percentage for
each organization is as follows:
(I)
Organization 1 - 25%;
(II)
Organization 2 - 15%;
(III)
Organization 3 - 10%.
(v)
The third step is to determine the distribution percentage
for each statewide federation or fund listed in clause (i)(III) of this subparagraph.
The distribution percentage must be determined according to subparagraph (F)(iii)
of this paragraph. The distribution percentage for each federation or fund
is as follows:
(I)
Organization 4 - 25%;
(II)
Organization 5 - 25%.
(vi)
The fourth step is to determine the undesignated initial
distribution amount for each eligible local charitable organization listed
in clause (i)(I) of this subparagraph. The amount must be determined by multiplying
the organization's distribution percentage by the amount of undesignated deductions
to the Austin local campaign manager. The amount for each organization is
as follows:
(I)
Organization 1 - $1,250;
(II)
Organization 2 - $750;
(III)
Organization 3 - $500.
(vii)
The fifth and final step is to determine the undesignated
initial distribution amount for each statewide federation or fund listed in
clause (i)(III) of this subparagraph. The amount must be determined by multiplying
the federation or fund's distribution percentage by the amount of undesignated
deductions to the Austin local campaign manager. The amount for each organization
is as follows:
(I)
Organization 4 - $1,250;
(II)
Organization 5 - $1,250.
(H)
Notwithstanding anything in this paragraph, a local campaign
manager shall distribute deducted amounts to an eligible local charitable
organization or a statewide federation or fund according to the percentage
method required by subsection (j) of this section. A designated or undesignated
initial distribution amount specified or determined under this paragraph is
only the starting point for calculating the amount to be distributed.
(2)
Receiving deducted amounts through statewide
federations or funds.
(A)
This subparagraph applies to a state employee only if not
employed by an institution of higher education. A state employee's authorization
of a deduction to a statewide federation or fund may designate not more than
nine eligible charitable organizations to receive the deducted amounts through
the federation or fund.
(B)
This subparagraph applies to a state employee only if employed
by an institution of higher education. A state employee's authorization of
a deduction to a statewide federation or fund may designate one or more eligible
charitable organizations to receive the employee's deducted amounts through
the federation or fund. The employee may designate not more than nine organizations
if the employing institution of higher education has not specified a higher
maximum number of designations that its employees may make. If the institution
has specified a higher maximum number, then the employee may designate not
more than that number.
(C)
If a state employee's authorization of a deduction to a
statewide federation or fund designates only one eligible charitable organization,
then the organization's designated initial distribution amount with respect
to the employee is equal to the employee's entire deduction to the statewide
federation or fund.
(D)
If a state employee's authorization of a deduction to a
statewide federation or fund designates more than one eligible charitable
organization, then the designation is valid only if it specifies the designated
initial distribution amount for each organization.
(E)
This subparagraph applies if a state employee's authorization
of a deduction to a statewide federation or fund does not contain a valid
designation. The statewide federation or fund shall determine the undesignated
initial distribution amount with respect to the employee for each eligible
charitable organization affiliated with the federation or fund. The determination
must be accomplished according to the federation or fund's policy.
(F)
Notwithstanding anything in this paragraph, a statewide
federation or fund shall distribute deducted amounts to an eligible charitable
organization according to the percentage method required by subsection (k)
of this section. A designated or undesignated initial distribution amount
specified or determined under this paragraph is only the starting point for
calculating the amount to be distributed.
(d)
State employee charitable campaign.
(1)
Time of the state employee charitable campaign. The state
employee charitable campaign shall be conducted annually during the period
after August 31st and before November 1st.
(2)
Reimbursement of expenses incurred by state employees
while representing charitable organizations. A state agency may not reimburse
a state employee for expenses incurred while acting as a representative of
a charitable organization.
(3)
Participation by state employees. Participation by
a state employee in the state employee charitable campaign is voluntary.
(e)
Effective dates of authorization forms.
(1)
Effective date of authorization forms provided during a
state employee charitable campaign. A state employee's authorization form
that is provided during a state employee charitable campaign is effective
for the following campaign year if the form is completed properly, the form
is signed by the employee, and the employee's employer receives the properly
completed and signed form not later than November 15th before the start of
that year. The deductions may not start before the beginning of that year.
(2)
Effective date of authorization forms provided immediately
after a state agency is converted to the uniform statewide payroll/personnel
system. State law says that a state agency, other than an institution of higher
education, is not required to permit its state employees to authorize a deduction
until the first full payroll period after the agency is converted to the uniform
statewide payroll/personnel system. A state agency covered by that law shall
permit its employees to authorize deductions so that they are effective not
later than the first full payroll period after conversion of the agency. To
be effective by that date, a properly completed authorization form must be
received by the agency not later than the tenth workday before the first day
of the agency's first full monthly payroll period after conversion.
(3)
Effective date of authorization forms provided by
new state employees.
(A)
Paragraph (1) of this subsection applies to a new state
employee's authorization form if it:
(i)
is received by the employee's employer during a state employee
charitable campaign; and
(ii)
authorizes a deduction to begin during the campaign year
following the campaign year in which the form is received.
(B)
This subparagraph applies to a new state employee's authorization
form only if the form authorizes a deduction to begin during the same campaign
year as the campaign year in which the employee's employer receives the form.
The employer may decide when the deduction will take effect, subject to the
following limitations.
(i)
Except as provided in clause (ii) of this subparagraph,
the deduction must begin not later than with the employee's salary or wages
that are paid on the first workday of the second month following the month
in which the employer receives the form.
(ii)
If the employer receives the form during October or November,
then the employer may decide whether and when to give effect to the form.
(4)
Effective date of authorization forms that
request changes in deductions.
(A)
This paragraph applies only to a state employee's authorization
form that requests a change to a deduction.
(B)
The employer of the employee may decide when the change
will take effect, subject to the following limitations.
(i)
Except as provided in clause (ii) of this subparagraph,
the change must take effect not later than with the employee's salary or wages
that are paid on the first workday of the second month following the month
in which the employer receives the form.
(ii)
If the employer receives the form during October or November
of a campaign year and the form requests a change in a deduction for the year,
then the employer may decide whether and when to give effect to the form.
(C)
The following example illustrates the requirements of this
paragraph. Assume that a state agency receives an authorization form on July
2, 1994, and that the form requests a decrease in the amount of a deduction.
The agency may make the decrease effective with the deduction that occurs
on the August 1, 1994, salary payment. If the agency does not, then the agency
must make the decrease effective with the deduction that occurs on the September
1, 1994, salary payment.
(5)
Effective date of authorization forms that request
cancellations of deductions.
(A)
This paragraph applies only to a state employee's authorization
form that requests the cancellation of a deduction.
(B)
The employer of the employee may decide when the cancellation
will take effect. The cancellation must take effect, however, not later than
with the employee's salary or wages that are paid on the first workday of
the second month following the month in which the employer receives the form.
(C)
The following example illustrates the requirements of this
paragraph. Assume that a state agency receives an authorization form on July
2, 1994, and that the form requests the cancellation of a deduction. The agency
may make the cancellation effective with the August 1, 1994, salary payment.
If the agency does not, then the agency must make the cancellation effective
with the September 1, 1994, salary payment.
(f)
Requirements for the content and format of authorization
forms.
(1)
Prohibition against distributing or providing authorization
forms. A local campaign manager or a statewide federation or fund may distribute
or provide an authorization form to a state employee only if both the comptroller
and the state policy committee have approved the form.
(2)
Requirement to produce authorization forms. A local
campaign manager or a statewide federation or fund must produce an authorization
form that complies with the comptroller's requirements and this section.
(3)
Restrictions on approval of authorization forms. Neither
the comptroller nor the state policy committee may approve the authorization
form of a local campaign manager or a statewide federation or fund unless
the form:
(A)
is at least 8 1/2 inches wide and 11 inches long;
(B)
states that statewide federations or funds and local campaign
managers are required to use the percentage method to distribute a state employee's
deducted amounts to eligible charitable organizations designated by the employee
instead of matching deducted amounts received to actual designations;
(C)
accurately describes the percentage method; and
(D)
complies with the comptroller's requirements for format
and substance.
(g)
Procedure for federations or funds to apply for statewide
participation.
(1)
Request for statewide participation. A federation or fund
may not be a statewide federation or fund unless the federation or fund applies
to the state policy committee for that status in accordance with this section,
the Government Code, §659.146, and the committee's procedures.
(2)
Requirements for the application. The application
of a federation or fund to be a statewide federation or fund must include:
(A)
a letter from the presiding officer of the federation or
fund's board of directors certifying compliance by the federation or fund
and its affiliated agencies with the eligibility requirements of the Government
Code, §659.146;
(B)
a copy of a letter from each affiliate of the federation
or fund certifying that the federation or fund serves as the affiliate's representative
and fiscal agent in the state employee charitable campaign;
(C)
a copy of the conflict of interest policy approved by the
federation or fund's board of directors, which prohibits its board members,
executive director, and staff from engaging in business transactions in which
they have material conflicting interests;
(D)
if the executive director of the federation or fund receives
material compensation for services rendered to any organization other than
the federation or fund, a full disclosure of:
(i)
the name of the organization;
(ii)
the nature and amount of the compensation; and
(iii)
the relationship of the organization to the federation
or fund;
(E)
a copy of the federation or fund's current operating budget,
signed by the presiding officer of the federation or fund's board of directors;
and
(F)
an acknowledgment that the federation or fund is responsible
for filing any appeals from its affiliated agencies that have not secured
approval for statewide or local participation in the state employee charitable
campaign.
(3)
Notification of the comptroller. Upon approval
of a federation or fund for statewide participation in the state employee
charitable campaign, the state policy committee shall submit to the comptroller:
(A)
the complete name of the federation or fund;
(B)
the mailing address of the federation or fund;
(C)
the full name, title, telephone number, and mailing address
of the federation or fund's primary contact;
(D)
the payee identification number of the federation or fund,
when available; and
(E)
the other information deemed necessary by the comptroller.
(4)
Payee identification numbers. A federation or
fund that has been approved for statewide participation and that does not
have a payee identification number shall submit a request for one to the comptroller.
(5)
Electronic funds transfers.
(A)
A federation or fund that has been approved for statewide
participation in the state employee charitable campaign shall submit a request
to be paid by the comptroller through electronic funds transfers under rules
adopted by the comptroller. This subparagraph applies only to the extent that
the comptroller's electronic funds transfer system is used.
(B)
A federation or fund that has been approved for statewide
participation in the state employee charitable campaign shall submit a request
to be paid by an institution of higher education through electronic funds
transfers under rules or procedures adopted by the institution. This subparagraph
applies only to the extent that the comptroller's electronic funds transfer
system is not used.
(6)
Beginning of deductions. The first payment of
deducted amounts to a statewide federation or fund shall occur the first month
of the first campaign year that begins after the federation or fund is approved
for statewide participation in the state employee charitable campaign.
(h)
Procedure for charitable organizations to apply for local
participation.
(1)
Request for local participation.
(A)
A charitable organization may not be an eligible local
charitable organization unless it applies to the appropriate local employee
committee for that status in accordance with this section, the Government
Code, §659.147, and the committee's procedures.
(B)
A federation or fund that wants to be an eligible local
charitable organization may apply on behalf of its affiliated agencies.
(2)
Requirements for applications from federations
or funds. If a charitable organization applying to be an eligible local charitable
organization is a federation or fund, then the organization must provide to
the appropriate local employee committee:
(A)
a letter from the presiding officer of the federation or
fund's board of directors certifying compliance by the federation or fund
and its affiliated agencies with the eligibility requirements of the Government
Code, §659.147;
(B)
a copy of a letter from each affiliate of the federation
or fund certifying that the federation or fund serves as the affiliate's representative
and fiscal agent in the state employee charitable campaign;
(C)
a copy of the conflict of interest policy approved by the
federation or fund's board of directors, which prohibits its board members,
executive director, and staff from engaging in business transactions in which
they have material conflicting interests;
(D)
if the executive director of the federation or fund receives
material compensation for services rendered to any organization other than
the federation or fund, a full disclosure of:
(i)
the name of the organization;
(ii)
the nature and amount of the compensation; and
(iii)
the relationship of the organization to the federation
or fund;
(E)
a copy of the federation or fund's current operating budget,
signed by the presiding officer of the federation or fund's board of directors;
and
(F)
an acknowledgment that the federation or fund is responsible
for filing any appeals from its affiliated agencies that have not secured
approval for statewide or local participation in the state employee charitable
campaign.
(3)
Beginning of deductions. The first deduction
to pay an eligible local charitable organization shall occur the first month
of the first campaign year that begins after the charitable organization is
approved for local participation in the state employee charitable campaign.
(i)
Payments of deductions.
(1)
Prohibited payments to eligible local charitable organizations.
(A)
Neither the comptroller nor an institution of higher education
may pay deducted amounts directly to an eligible local charitable organization.
(B)
Except as otherwise provided in this subparagraph, deducted
amounts shall be paid directly to the appropriate local campaign manager.
If the eligible local charitable organization involved is an affiliate of
a statewide federation or fund, then the deducted amounts shall be paid directly
to the federation or fund.
(2)
Payments by the comptroller through electronic
funds transfers. If feasible, the comptroller shall pay deducted amounts to
a local campaign manager or a statewide federation or fund by electronic funds
transfer.
(3)
Payments through warrants issued by the comptroller.
(A)
This paragraph applies only if it is infeasible for the
comptroller to pay deducted amounts by electronic funds transfer.
(B)
The comptroller shall pay deducted amounts by warrant and
make the warrant available for pick up by the state agency whose employees'
deductions are being paid by the warrant.
(C)
A state agency shall mail or hand deliver a warrant picked
up under subparagraph (B) of this paragraph to the payee of the warrant.
(D)
Except as provided in subparagraph (E) of this paragraph,
the deadline for mailing or hand delivering a warrant is the tenth workday
of the month following the month when the salary or wages from which the deductions
are made were earned.
(E)
This subparagraph applies only to a deduction that occurs
after the tenth workday of the month following the month when the salary or
wages from which the deduction is made were earned. The deadline for a state
agency to mail or hand deliver a warrant to pay the deduction is the second
workday after the agency receives the warrant.
(4)
Payments by institutions of higher education.
(A)
This paragraph applies to deducted amounts from the salary
or wages of a state employee of an institution of higher education only if
the comptroller does not pay those amounts directly to a local campaign manager
or a statewide federation or fund.
(B)
If feasible, an institution of higher education shall pay
deducted amounts to a local campaign manager or a statewide federation or
fund by electronic funds transfer.
(C)
If it is infeasible for an institution of higher education
to pay deducted amounts by electronic funds transfer, then the institution
shall make the payment by check.
(D)
This subparagraph applies only if an institution of higher
education pays deducted amounts by check.
(i)
This clause applies only to deductions from salary or wages
that are paid on the first workday of a month. An institution of higher education
shall mail or hand deliver its check to the payee of the check not later than
the 10th workday of the month.
(ii)
This clause applies only to deductions from salary or
wages that are paid on a day other than the first workday of a month. An institution
of higher education shall mail or hand deliver its check to the payee of the
check not later than the 10th workday of the month following the month in
which the salary or wages were earned.
(j)
Distributions of deductions by local campaign managers.
(1)
Requirement to use the percentage method. A local campaign
manager shall use the percentage method to distribute deducted amounts to
eligible local charitable organizations and statewide federations or funds.
(2)
Description of the percentage method.
(A)
Immediately after the end of a state employee charitable
campaign, a local campaign manager shall calculate the contribution percentage
for:
(i)
each eligible local charitable organization that has been
approved to participate in the local campaign area under the manager's responsibility;
and
(ii)
each statewide federation or fund to which state employees
in the local campaign area have authorized deductions.
(B)
The contribution percentage for an eligible local charitable
organization is the ratio of:
(i)
the sum of:
(I)
the organization's designated initial distribution amount
with respect to all state employees in the local campaign area as determined
under subsection (c)(1)(C)-(D) of this section; and
(II)
the organization's undesignated initial distribution amount
with respect to all state employees in the local campaign area as determined
under subsection (c)(1)(F)(ii) of this section; to
(ii)
the total amount of deductions authorized to the local
campaign manager on authorization forms completed during the campaign.
(C)
The contribution percentage for a statewide federation
or fund is the ratio of:
(i)
the federation or fund's undesignated initial distribution
amount with respect to all state employees in the local campaign area as determined
under subsection (c)(1)(F)(iii) of this section; to
(ii)
the total amount of deductions authorized to the local
campaign manager on authorization forms completed during the campaign.
(D)
The contribution percentage for an eligible local charitable
organization or a statewide federation or fund may not be recalculated before
the conclusion of the next state employee charitable campaign.
(E)
The amount of deductions that a local campaign manager
distributes to an eligible local charitable organization or a statewide federation
or fund is equal to the product of:
(i)
the contribution percentage of the organization or federation
or fund; and
(ii)
the total amount of deductions the manager is distributing.
(3)
Example of the percentage method. This paragraph
illustrates the percentage method described in paragraph (2) of this subsection.
(A)
The following assumptions apply in this example.
(i)
Organization 1, an eligible local charitable organization,
has a designated initial distribution amount of $5,000 and an undesignated
initial distribution amount of $1,250.
(ii)
Organization 2, an eligible local charitable organization,
has a designated initial distribution amount of $3,000 and an undesignated
initial distribution amount of $750.
(iii)
Organization 3, an eligible local charitable organization,
has a designated initial distribution amount of $2,000 and an undesignated
initial distribution amount of $500.
(iv)
Organization 4, a statewide federation or fund, has an
undesignated initial distribution amount of $1,250.
(v)
Organization 5, a statewide federation or fund, has an
undesignated initial distribution amount of $1,250.
(vi)
The total amount of deductions authorized to the local
campaign manager is $15,000.
(vii)
The local campaign manager has actually received $10,000
in deducted amounts.
(B)
The first step is to calculate the contribution percentage
for each organization according to paragraph (2)(B)-(C) of this subsection.
The contribution percentage for each organization is as follows:
(i)
Organization 1 - 41.67%;
(ii)
Organization 2 - 25%;
(iii)
Organization 3 - 16.67%;
(iv)
Organization 4 - 8.33%;
(v)
Organization 5 - 8.33%.
(C)
The second and final step is to calculate the amount that
the local campaign manager distributes to each organization according to paragraph
(2)(E) of this subsection. The amount for each organization is as follows:
(i)
Organization 1 - $4,167;
(ii)
Organization 2 - $2,500;
(iii)
Organization 3 - $1,667;
(iv)
Organization 4 - $833;
(v)
Organization 5 - $833.
(4)
Prohibition of distributions until payment
reports reconciled. A local campaign manager may not make a distribution before
the manager reconciles the payment reports received from the comptroller or
an institution of higher education with the payments received by electronic
funds transfer or by warrant or check.
(5)
Frequency of distributions. A local campaign manager
shall make distributions quarterly or more frequently than quarterly.
(k)
Distributions of deductions by statewide federations or
funds.
(1)
Requirement to use the percentage method. A statewide federation
or fund shall use the percentage method to distribute deducted amounts to
eligible charitable organizations.
(2)
Description of the percentage method.
(A)
Immediately after the end of a state employee charitable
campaign, a statewide federation or fund shall calculate the contribution
percentage for each eligible charitable organization that is an affiliate
of the federation or fund.
(B)
The contribution percentage for an eligible charitable
organization is the ratio of:
(i)
the sum of:
(I)
the organization's designated initial distribution amount
with respect to all state employees who have authorized deductions to the
statewide federation or fund as determined under subsection (c)(2)(C)-(D)
of this section; and
(II)
the organization's undesignated initial distribution amount
with respect to all state employees who have authorized deductions to the
statewide federation or fund as determined under subsection (c)(2)(E) of this
section; to
(ii)
the total amount of deductions authorized to the statewide
federation or fund on authorization forms completed during the campaign.
(C)
The contribution percentage for an eligible charitable
organization may not be recalculated before the conclusion of the next state
employee charitable campaign.
(D)
The amount of deductions that a statewide federation or
fund distributes to an eligible charitable organization is equal to the product
of:
(i)
the contribution percentage of the organization; and
(ii)
the total amount of deductions the federation or fund
is distributing.
(3)
Example of the percentage method. This paragraph
illustrates the percentage method described in paragraph (2) of this subsection.
(A)
The following assumptions apply in this example.
(i)
Eligible charitable organization 1 has a designated initial
distribution amount of $5,000 and an undesignated initial distribution amount
of $1,250.
(ii)
Eligible charitable organization 2 has a designated initial
distribution amount of $3,000 and an undesignated initial distribution amount
of $750.
(iii)
Eligible charitable organization 3 has a designated initial
distribution amount of $2,000 and an undesignated initial distribution amount
of $500.
(iv)
The total amount of deductions authorized to the statewide
federation or fund is $12,500.
(v)
The statewide federation or fund has actually received
$10,000 in deducted amounts.
(B)
The first step is to calculate the contribution percentage
for each eligible charitable organization according to paragraph (2)(B) of
this subsection. The contribution percentage for each organization is as follows:
(i)
Organization 1 - 50%;
(ii)
Organization 2 - 30%;
(iii)
Organization 3 - 20%.
(C)
The second and final step is to calculate the amount that
the statewide federation or fund distributes to each organization according
to paragraph (2)(D) of this subsection. The amount for each organization is
as follows:
(i)
Organization 1 - $5,000;
(ii)
Organization 2 - $3,000;
(iii)
Organization 3 - $2,000.
(4)
Prohibition of distributions until payment
reports reconciled. A statewide federation or fund may not make a distribution
before the federation or fund reconciles the payment reports received from
the comptroller or an institution of higher education with the payments received
by electronic funds transfer or by warrant or check.
(5)
Frequency of distributions. A statewide federation
or fund shall make distributions quarterly or more frequently than quarterly.
(l)
Charging administrative fees to cover costs incurred to
make deductions. The comptroller has determined that the costs which would
be covered by the charging of an administrative fee to charitable organizations
would be insignificant. Therefore, the comptroller has decided not to charge
the fee.
(m)
Refunding excessive payments of deductions.
(1)
Authorization of refunds. If the amount of deductions paid
to a local campaign manager or a statewide federation or fund exceeds the
amount that should have been paid, then the excess may be refunded to the
state agency on whose behalf the payment was made.
(2)
Methods for accomplishing refunds. If a refund is
authorized by paragraph (1) of this subsection, then the refund shall be accomplished
by:
(A)
the state agency on whose behalf the payment was made subtracting
the amount of the refund from a subsequent payment of deductions to the local
campaign manager or statewide federation or fund; or
(B)
the local campaign manager or the statewide federation
or fund issuing a check in the amount of the refund to the state agency on
whose behalf the payment was made, if authorized by paragraph (3) of this
subsection.
(3)
Paying refunds by check. A local campaign manager
or a statewide federation or fund may issue a refund check only if the payee
of the check first submits a written request for the refund to be made by
check.
(4)
Deadline for paying refunds by check. This paragraph
applies only if a local campaign manager or a statewide federation or fund
is authorized by paragraph (3) of this subsection to make a refund by check.
The local campaign manager or the statewide federation or fund shall ensure
that the refund check is received by the payee not later than the 30th day
after the date on which the written request for the refund to be made by check
is received.
(n)
Responsibilities of the state policy committee.
(1)
Statutory responsibilities. The state policy committee
shall fulfill its statutory responsibilities as set forth in the Government
Code, Chapter 659, Subchapter H.
(2)
Additional responsibilities. In addition to its statutory
responsibilities, the state policy committee:
(A)
shall establish an annual application, eligibility determination,
and appeals period for statewide or local participation in the state employee
charitable campaign;
(B)
shall determine the eligibility of a federation or fund
and its affiliated agencies for statewide participation in the state employee
charitable campaign;
(C)
shall review and resolve the appeals of entities not accepted
for statewide or local participation in the state employee charitable campaign
under procedures that comply with paragraph (3) of this subsection;
(D)
shall disqualify a federation or fund from statewide participation
in the state employee charitable campaign if the committee determines that
the federation or fund intentionally filed an application that contains false
or misleading information;
(E)
shall establish penalties for non-compliance with this
section by a statewide federation or fund, an eligible local charitable organization,
the state campaign manager, or a local campaign manager;
(F)
shall establish procedures for the selection and oversight
of the state campaign manager and local campaign managers;
(G)
shall select to act as the state campaign manager:
(i)
a federated community campaign organization in accordance
with the criteria listed in paragraph (4) of this subsection, if any federated
community campaign organization has applied to be the manager; or
(ii)
a charitable organization in accordance with the criteria
listed in paragraph (4) of this subsection, if no federated community campaign
organization has applied to be the manager;
(H)
shall contract with the organization selected as the state
campaign manager;
(I)
may establish policies and procedures for the operation
and administration of the state employee charitable campaign, including policies
and procedures about the hearing of any grievance concerning the operation
and administration of the campaign;
(J)
shall consult with the state campaign manager and the state
advisory committee before approving the campaign plan, budget, and materials;
(K)
may not approve campaign materials if:
(i)
they do not state that statewide federations or funds may
or may not provide services in all local campaign areas;
(ii)
they list a charitable organization as both a statewide
federation or fund and an eligible local charitable organization;
(iii)
they list a charitable organization as an affiliate of
two or more statewide federations or funds unless the organization serves
separate and distinct populations as part of each statewide federation or
fund;
(iv)
they list similarly named eligible local charitable organizations
in the same local campaign area unless the appropriate local employee committee
has determined that each organization delivers services in different geographical
areas within the local campaign area;
(v)
they list a charitable organization as an affiliate of
more than one federation or fund certified as an eligible local charitable
organization unless the appropriate local employee committee has determined
that the charitable organization delivers services to separate and distinct
populations in the local campaign area as part of its membership in the federations
or funds;
(vi)
they do not state that a local campaign manager or a statewide
federation or fund may distribute quarterly a state employee's deductions;
(vii)
they do not state that a local campaign manager or a
statewide federation or fund is required to distribute a state employee's
deductions based on the percentage method instead of matching deducted amounts
received by the local campaign manager or statewide federation or fund to
the employee's designations; or
(viii)
they do not accurately describe the percentage method;
(L)
shall review and approve or disapprove the generic materials
used by the state campaign manager and local campaign managers;
(M)
shall ensure that local campaign areas do not overlap;
(N)
shall ensure that only one local campaign manager is responsible
for solicitation of all state employees in the local campaign area for which
the manager has responsibility;
(O)
shall submit to the comptroller the name and boundaries
of each local campaign area not later than the 30th day after the end of the
annual application period;
(P)
shall compile and submit to the comptroller not later than
the 30th day after the end of the annual application period a list of the
local campaign managers and the name, address, and telephone number of each
manager's primary contact;
(Q)
shall notify the comptroller immediately after a change
occurs to the name or mailing address of a statewide federation or fund or
local campaign manager;
(R)
shall notify the comptroller immediately after a change
occurs to the name, title, telephone number, or mailing address of the primary
contact of a local campaign manager or a statewide federation or fund; and
(S)
shall represent all statewide federations or funds and
local campaign managers for the purposes of:
(i)
communicating with the comptroller, including receiving
and responding to correspondence from the comptroller; and
(ii)
disseminating information, including information about
the requirements of this section, to representatives of federations or funds,
local employee committees, and local campaign managers.
(3)
Appeals procedures. The procedures that
the state policy committee adopts to review and resolve the appeal of an entity
that was not accepted for statewide or local participation in the state employee
charitable campaign must:
(A)
prohibit the consideration of information that the committee
has considered previously;
(B)
provide sufficient time for a federation or fund to reapply
for participation in that campaign; and
(C)
permit a federation or fund that was not accepted for statewide
participation to apply for participation in a local campaign area during the
campaign.
(4)
Criteria for selection of a state campaign manager.
The state policy committee shall consider the following criteria when evaluating
the application of a federated community campaign organization or a charitable
organization to act as the state campaign manager:
(A)
the number and diversity of voluntary health and human
services agencies or affiliates that rely on the organization for financial
support;
(B)
the capability of the organization to conduct employee
campaigns, as demonstrated by records of the amount of funds raised during
the organization's last completed annual public solicitation of funds;
(C)
the percent of solicited funds received by the organization
during its last completed annual public solicitation of funds that were distributed
to voluntary health and human services agencies;
(D)
the geographic area serviced by the organization; and
(E)
the organization's capability and expertise to provide
effective campaign counsel and management as demonstrated by staff and equipment
resources and examples of past campaign management.
(5)
Comptroller's reliance on decisions made by the
state policy committee. The comptroller is entitled to rely on the state policy
committee's:
(A)
determination about the eligibility of a federation or
fund and its affiliated agencies for statewide participation in the state
employee charitable campaign;
(B)
disqualification of a federation or fund from statewide
participation in the state employee charitable campaign; and
(C)
other decision unless the committee has no legal authority
over the subject covered by the decision.
(o)
Responsibilities of the state advisory committee. The state
advisory committee shall fulfill its statutory responsibilities as set forth
in the Government Code, Chapter 659, Subchapter H.
(p)
Responsibilities of local employee committees.
(1)
Statutory responsibilities. A local employee committee
shall fulfill its statutory responsibilities as set forth in the Government
Code, Chapter 659, Subchapter H.
(2)
Additional responsibilities. In addition to its statutory
responsibilities, a local employee committee:
(A)
shall determine the eligibility of a local charitable organization
for local participation in the state employee charitable campaign;
(B)
may call upon and use outside expertise and resources available
to the committee to assess the eligibility of a local charitable organization;
(C)
shall disqualify a local charitable organization from local
participation in the state employee charitable campaign if the committee determines
that the organization intentionally filed an application that contains false
or misleading information;
(D)
shall select to act as the local campaign manager:
(i)
a federated community campaign organization in accordance
with the criteria listed in paragraph (3) of this subsection, if any federated
community campaign organization has applied to be the manager; or
(ii)
a charitable organization in accordance with the criteria
listed in paragraph (3) of this subsection, if no federated community campaign
organization has applied to be the manager;
(E)
shall contract with the organization selected as the local
campaign manager;
(F)
shall consult with the local campaign manager before approving
the local campaign plan, budget, and materials; and
(G)
shall submit to the state policy committee upon contracting
with the organization selected as the local campaign manager:
(i)
the name of the local campaign area;
(ii)
the name of the organization with which the local employee
committee has contracted; and
(iii)
the name, address, and telephone number of the primary
contact of the local campaign manager.
(3)
Criteria for selection of a local campaign
manager. A local employee committee shall consider the following criteria
when evaluating the application of a federated community campaign organization
or a charitable organization to act as the local campaign manager:
(A)
the number and diversity of voluntary health and human
services agencies or affiliates that rely on the organization for financial
support;
(B)
the capability of the organization to conduct employee
campaigns, as demonstrated by records of the amount of funds raised during
the organization's last completed annual public solicitation of funds;
(C)
the percent of solicited funds received by the organization
during its last completed annual public solicitation of funds that were distributed
to voluntary health and human services agencies;
(D)
the geographic area serviced by the organization; and
(E)
the organization's capability and expertise to provide
effective campaign counsel and management as demonstrated by staff and equipment
resources and examples of past campaign management.
(4)
Comptroller's reliance on decisions made by a
local employee committee. The comptroller is entitled to rely on a local employee
committee's:
(A)
determination about the eligibility of a local charitable
organization for local participation in the state employee charitable campaign;
(B)
disqualification of a local charitable organization from
local participation in the state employee charitable campaign; and
(C)
other decision unless the committee has no legal authority
over the subject covered by the decision.
(q)
Responsibilities of the state campaign manager.
(1)
Statutory responsibilities. The state campaign manager
shall fulfill the manager's statutory responsibilities as set forth in the
Government Code, Chapter 659, Subchapter H.
(2)
Additional responsibilities. In addition to the state
campaign manager's statutory responsibilities, the manager shall:
(A)
develop the state employee charitable campaign plan in
consultation with the state advisory committee;
(B)
serve as liaison to the state policy committee, the state
advisory committee, the local campaign managers, and the local employee committees
on behalf of statewide federations or funds and eligible local charitable
organizations;
(C)
structure the state employee charitable campaign fairly
and equitably according to the policies and procedures established by the
state policy committee;
(D)
provide for involvement of all statewide federations or
funds, including the use of their resources, at all levels of the state employee
charitable campaign;
(E)
conduct the manager's responsibilities on behalf of the
state employee participants in the state employee charitable campaign separately
from the manager's internal operations;
(F)
prepare and submit for review by the state advisory committee
a single statewide campaign budget that has been prepared in cooperation with
local campaign managers and that includes campaign materials, staff time,
and other expenses incurred for the state employee charitable campaign;
(G)
establish, after consulting with the state advisory committee,
the state policy committee, and the local campaign managers, a uniform campaign
reporting form to allow reporting of designated deductions, undesignated deductions,
campaign expenses, and other information deemed necessary by the state campaign
manager; and
(H)
submit a statewide campaign report that complies with paragraph
(3) of this subsection.
(3)
Statewide campaign reports. A statewide campaign
report shall represent a compilation of the local campaign managers' campaign
reports. The state campaign manager shall ensure that the state policy committee,
the state advisory committee, and the comptroller receive the statewide campaign
report not later than February 5th of the calendar year following the calendar
year in which the campaign covered by the report ended. If February 5th is
not a workday, then the first workday after February 5th is the deadline.
(r)
Responsibilities of local campaign managers.
(1)
Statutory responsibilities. A local campaign manager shall
fulfill the manager's statutory responsibilities as set forth in the Government
Code, Chapter 659, Subchapter H.
(2)
Additional responsibilities. In addition to a local
campaign manager's statutory responsibilities, the manager shall:
(A)
recruit, train, and supervise state employee volunteers;
(B)
involve participating eligible local charitable organizations
and statewide federations or funds in the training of state employee volunteers;
(C)
consult with eligible local charitable organizations and
statewide federations or funds about the operation of the state employee charitable
campaign and the preparation of local campaign materials;
(D)
provide eligible local charitable organizations and statewide
federations or funds with the opportunity to participate in local state employee
charitable campaign events and access to all records for the local campaign
area;
(E)
maintain campaign records for the local campaign area,
including total pledges, total pledges by eligible local charitable organization
and statewide federation or fund, state agencies contacted, and other records
deemed necessary by the state policy committee for organization, control,
and progress reporting;
(F)
submit to the state campaign manager a final campaign report
of designated deductions, undesignated deductions, campaign expenses, and
other information deemed necessary by the state campaign manager;
(G)
ensure that the state campaign manager receives the local
campaign manager's final campaign report not later than January 15th of the
calendar year following the calendar year in which the campaign covered by
the report ended or, if January 15th is not a workday, not later than the
first workday after January 15th;
(H)
establish an account at a financial institution for the
purpose of receiving payments from the comptroller and institutions of higher
education by electronic funds transfer, warrant, or check;
(I)
distribute interest accrued during a campaign year as soon
as possible after December 31st to each eligible local charitable organization
and statewide federation or fund in the same manner that undesignated deductions
are distributed, subject to the limitation in paragraph (3) of this subsection;
(J)
submit a request to the comptroller to be paid by the comptroller
through electronic funds transfers under rules adopted by the comptroller,
but only to the extent those transfers are initiated by the comptroller on
behalf of the comptroller or other state agencies;
(K)
submit a request to an institution of higher education
to be paid by the institution through electronic funds transfers under rules
or procedures adopted by the institution, but only to the extent those transfers
are not initiated by the comptroller on behalf of the institution;
(L)
reconcile the payment report provided by the comptroller
or an institution of higher education with the amount of deductions paid to
the manager;
(M)
report to the comptroller or an institution of higher education,
as appropriate, each discrepancy between a payment report provided by the
comptroller or an institution and the actual amount of deductions received
not later than the 30th day after the day on which the comptroller or the
institution mailed or delivered the report;
(N)
report to each eligible local charitable organization and
statewide federation or fund the amount of its undesignated and designated
initial distribution amounts as determined under subsection (c)(1) of this
section; and
(O)
report to each eligible local charitable organization and
statewide federation or fund its contribution percentage as determined under
subsection (j)(2) of this section.
(3)
Limitation on distributions of accrued interest.
A local campaign manager may not distribute accrued interest to:
(A)
an eligible local charitable organization that did not
receive deducted amounts through the manager during the campaign year; or
(B)
a statewide federation or fund that did not receive deducted
amounts through the manager during the campaign year, unless the only reason
for not receiving the deducted amounts through the manager is the direct payment
requirement of the second sentence of subsection (i)(1)(B) of this section.
(4)
Prohibition against solicitation. A local campaign
manager may not solicit a deduction from a state employee at the employee's
worksite unless the solicitation is pursuant to the state employee charitable
campaign.
(s)
Responsibilities of statewide federations or funds.
(1)
Reconciliation of payment reports. A statewide federation
or fund shall reconcile the payment report provided by the comptroller or
an institution of higher education with the amount of deductions paid to the
federation or fund.
(2)
Reports of discrepancies.
(A)
A statewide federation or fund shall report to the comptroller
or an institution of higher education, as appropriate, each discrepancy between
a payment report provided by the comptroller or an institution and the actual
amount of deductions received.
(B)
A report of discrepancies is due not later than the 30th
day after the day on which the comptroller or the institution of higher education
mailed or delivered the report.
(3)
Prohibition against solicitation. A statewide
federation or fund may not solicit a deduction from a state employee at the
employee's worksite unless the solicitation is pursuant to the state employee
charitable campaign.
(t)
Prohibition against certain solicitation by eligible local
charitable organizations. An eligible local charitable organization may not
solicit a deduction from a state employee at the employee's worksite unless
the solicitation is pursuant to the state employee charitable campaign.
(u)
Acceptance of authorization forms by state agencies.
(1)
Prohibition against accepting certain authorization forms.
A state agency may accept an authorization form only if it complies with the
comptroller's requirements.
(2)
Reviewing authorization forms. An authorization form
submitted by a state employee to a state agency must be reviewed by the agency's
campaign coordinator to ensure that the form has been completed properly.
(3)
Acceptance of altered authorization forms. A state
agency is not required to accept an authorization form that contains an obvious
alteration without the appropriate state employee's written consent to the
alteration.
(v)
Payment reports.
(1)
Monthly submission of payment reports.
(A)
An institution of higher education shall submit a payment
report each month to each local campaign manager or statewide federation or
fund that has received during the month deducted amounts from the institution's
state employees.
(B)
The comptroller shall submit a payment report each month
to each local campaign manager or statewide federation or fund that has received
during the month deducted amounts through the comptroller's electronic funds
transfer system.
(2)
Information included in payment reports.
(A)
An institution of higher education's payment report must
include the amount and date of each check written to or electronic funds transfer
made to a local campaign manager or a statewide federation or fund by the
institution.
(B)
The comptroller's payment report must include the amount
and date of each electronic funds transfer made to a local campaign manager
or statewide federation or fund by the comptroller.
(3)
Format of payment reports. An institution of
higher education's payment report must be in the format prescribed by the
comptroller.
(4)
Deadline for submission of payment reports.
(A)
Except as otherwise provided in this subparagraph, an institution
of higher education shall mail or deliver a payment report not later than
the tenth workday of the month in which the institution paid the deducted
amounts covered by the report. For deductions from salary or wages paid by
an institution of higher education after the tenth workday of a month, the
institution may include the deductions in the institution's payment report
for the following month.
(B)
Except as otherwise provided in this subparagraph, the
comptroller shall mail or deliver a payment report not later than the fifth
workday of the month in which the comptroller paid the deducted amounts covered
by the report. For deductions from salary or wages paid by the comptroller
after the first workday of a month, the comptroller may include the deductions
in the comptroller's payment report for the following month.
(w)
Complaints by state employees about coercive activity.
(1)
Definition.
(A)
In this section, "coercive activity" includes:
(i)
a state agency or its representative pressuring a state
employee to participate in a state employee charitable campaign;
(ii)
a state agency or its representative inquiring about:
(I)
whether a state employee has chosen to participate in a
state employee charitable campaign; or
(II)
the amount of a state employee's deduction except as necessary
to administer the deduction;
(iii)
a state agency or its representative establishing a goal
for 100% of the agency's state employees to authorize a deduction;
(iv)
a state agency or its representative establishing a dollar
contribution goal or quota for a state employee;
(v)
a state agency, a statewide federation or fund, a local
campaign manager, or a representative of the preceding developing or using
a list of state employees who did not complete an authorization form during
a state employee charitable campaign;
(vi)
a state agency, a statewide federation or fund, a local
campaign manager, or a representative of the preceding using or providing
to others a list of state employees who completed authorizations forms during
a state employee charitable campaign, unless the purpose of the list is to
make a deduction or transmit deducted amounts to a local campaign manager
or a statewide federation or fund; and
(vii)
a state agency or its representative using as a factor
in a performance appraisal the results of a state employee charitable campaign
in a particular section, division, or other level of the agency.
(B)
Notwithstanding subparagraph (A) of this paragraph, "coercive
activity" does not include:
(i)
the head of a state agency's participation in the customary
activities associated with a state employee charitable campaign; or
(ii)
the head of a state agency's demonstration of support
for the campaign in newsletters or other routine communications with state
employees.
(2)
Submission of complaints to the comptroller.
A state employee may submit a written complaint to the comptroller when the
employee believes that coercive activity has occurred in a state employee
charitable campaign.
(3)
Investigation by the comptroller of complaints.
(A)
The comptroller shall investigate a state employee's written
complaint about coercive activity. The comptroller shall mail or deliver a
description of the comptroller's findings about the complaint to the employee
not later than the 30th day after the comptroller receives the complaint.
(B)
If the comptroller finds that coercive activity has occurred,
then the comptroller shall mail or deliver notice of the finding to the state
policy committee not later than the 30th day after the comptroller makes the
finding.
(4)
Action by the state policy committee.
(A)
If the state policy committee receives written notification
that the comptroller has found that coercive activity has occurred, then the
committee shall take appropriate action. Actions that the state policy committee
may take include suspension of the person or entity that engaged in the coercive
activity from participation in the state employee charitable campaign for
one campaign year.
(B)
A person or entity that has been suspended from the state
employee charitable campaign for a campaign year may apply to the state policy
committee for participation in the campaign for the next campaign year.
(x)
Public junior colleges and their employees.
(1)
Classification as institutions of higher education and
state employees. For the purposes of this section, a public junior college
is considered to be an institution of higher education and the college's employees
are considered to be state employees unless the college's governing board
affirmatively decides for the college not to participate in the state employee
charitable contribution program.
(2)
Decisions not to participate in the state employee
charitable contribution program.
(A)
The decision of a public junior college's governing board
for the college not to participate in the state employee charitable contribution
program is effective for only one fiscal year.
(B)
To be valid, the decision of a public junior college's
governing board for the college not to participate in the state employee charitable
contribution program for a fiscal year must be made not earlier than September
1 and not later than April 1 of the preceding fiscal year.
(C)
A public junior college's governing board shall ensure
that the state campaign manager receives written notice of the board's decision
for the college not to participate in the state employee charitable contribution
program. The board's failure to comply with this requirement does not, however,
invalidate that decision.
(3)
Charitable deductions outside the state employee
charitable contribution program.
(A)
This paragraph applies to a public junior college only
if the college's governing board has decided for the college not to participate
in the state employee charitable contribution program.
(B)
The governing board of a public junior college may allow
the college's employees to authorize deductions from their salaries or wages
for charitable contributions. The deductions must be voluntary.
(C)
The deductions must be made in accordance with any policies
adopted by the board. Except for this paragraph, this section does not apply
to those deductions.
This agency hereby certifies that the adoption
has been reviewed by legal counsel and found to be a valid exercise of the
agency's legal authority.
Filed with the Office of the Secretary of State on January
26, 1999.
TRD-9900537
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Effective date: February 15, 1999
Proposal publication date: October 2, 1998
For further information, please call: (512) 463-4062
Subchapter L. Claims Processing-Duplicate Warrants
34 TAC §5.140
The Comptroller of Public Accounts adopts amendments to §5.140,
concerning replacement warrants, without changes to the proposed text as published
in the December 4, 1998, issue of the
Texas Register
(23 TexReg 12244).
The purposes of the amendments are as follows.
The primary purpose is to authorize the comptroller to require a state
agency to submit either a payment cancellation voucher to the comptroller
or the information on the voucher directly to the uniform statewide accounting
system (USAS) when requesting the issuance of a replacement warrant. Technically,
the comptroller will be performing the cancellation of an original warrant
if the payment cancellation voucher for that warrant is submitted to the comptroller.
Otherwise, the agency submitting the information on the voucher will be performing
the cancellation.
There would be one exception to this authorization. The Texas Department
of Human Services (DHS) would still be required to submit to the comptroller
a payment cancellation voucher concerning a financial assistance warrant governed
by the Human Resources Code, §31.038.
The comptroller would not have the option of requiring DHS to submit the
information on the voucher directly to USAS. This is because §31.038
authorizes only the comptroller to cancel financial assistance warrants. The
section does not authorize DHS to cancel those warrants.
The other purpose of the amendments is to make several non-substantive
and technical changes to §5.140. Definitions of commonly-used terms are
being added to the section. Non- substantive changes to terms used in the
section are being made to enhance readability and clarity. And language is
being added to make it clear that the section does not apply to warrants or
checks issued by state agencies from local funds.
No comments were received regarding adoption of the amendments.
The amendments are adopted under the Government Code, §403.054(h),
which requires the Comptroller to adopt rules regarding the issuance of replacement
warrants.
The amendments implement the Government Code, §403.054.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on January
26, 1999.
TRD-9900536
Martin Cherry
Chief, General Law
Comptroller of Public Accounts
Effective date: February 15, 1999
Proposal publication date: December 4, 1998
For further information, please call: (512) 463-4062