A Houston representative has introduced a bill that, if passed, would legalize gifting clubs. Gifting clubs have gone by names such as Women's Alliance for Prosperity, the Original Dinner Party or The Ya-Ya Girls.
Prosecutors say the clubs are nothing more than common pyramid schemes being marketed to women.
Rep. Gary Elkins, R-Houston, agreed to introduce the bill at the request of a former House speaker Bill Clayton, and Bettie Naylor. House Bill 1305 would change the law to state that an operation is not a pyramid promotional scheme if each participant has signed a document stating that all money contributed is a gift and that the participant has not been promised any compensation in return for the contribution. Authorities say that pyramid or Ponzi schemes are investment swindles in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks. A bunch of ladies are for it. Clayton's lobby registration forms list the Texas Gifting Coalition of Rowlett as a client.