Bill Text: TX HB975 | 2015-2016 | 84th Legislature | Enrolled

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Bill Title: Relating to charitable raffles conducted by certain professional sports team charitable foundations; creating a criminal offense.

Sponsorship: Moderate Partisan Bill (Republican 8-2)

Status: (Passed) 2015-05-21 - See remarks for effective date [HB975 Detail]

Download: Texas-2015-HB975-Enrolled.html

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H.B. No. 975

AN ACT
relating to charitable raffles conducted by certain professional
sports team charitable foundations; creating a criminal offense.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 13, Occupations Code, is
amended by adding Chapter 2004 to read as follows:
CHAPTER 2004. PROFESSIONAL SPORTS TEAM CHARITABLE
FOUNDATION RAFFLES
Sec. 2004.001. SHORT TITLE. This chapter may be cited as
the Professional Sports Team Charitable Foundation Raffle Enabling
Act.
Sec. 2004.002. DEFINITIONS. In this chapter:
(1) "Charitable purposes" has the meaning assigned by
Section 2002.002.
(2) "Professional sports team" means a team organized
in this state that is a member of Major League Baseball, the
National Basketball Association, the National Hockey League, the
National Football League, or Major League Soccer.
(3) "Professional sports team charitable foundation"
means an organization that:
(A) holds a certificate of formation under the
Business Organizations Code or is otherwise incorporated under the
laws of this state;
(B) is associated with a professional sports
team; and
(C) is formed for charitable purposes.
(4) "Raffle" has the meaning assigned by Section
2002.002.
Sec. 2004.003. QUALIFICATIONS TO CONDUCT RAFFLE. A
professional sports team charitable foundation is qualified to
conduct charitable raffles under this chapter if the foundation:
(1) is associated with a professional sports team with
a home venue located in this state;
(2) does not distribute any of its income to its
members, officers, or governing body, other than as reasonable
compensation for services;
(3) has existed for at least the three years preceding
the conduct of a raffle under this chapter;
(4) does not devote a substantial part of its
activities to attempting to influence legislation and does not
participate or intervene in any political campaign on behalf of any
candidate for public office in any manner, including by publishing
or distributing statements or making campaign contributions;
(5) qualifies for and has obtained an exemption from
federal income tax from the Internal Revenue Service as a
charitable organization described in Section 501(c)(3), Internal
Revenue Code of 1986; and
(6) does not have or recognize any local chapter,
affiliate, unit, or subsidiary organization in this state.
Sec. 2004.004. RAFFLE AUTHORIZED; TICKET SALES. (a) A
professional sports team charitable foundation that meets the
qualifications under Section 2004.003 may conduct a charitable
raffle during each preseason, regular season, and postseason game
hosted at the home venue of the professional sports team associated
with the foundation to provide revenue for the foundation's
charitable purposes.
(b) A professional sports team charitable foundation
authorized to conduct a raffle under this section may award to a
raffle winner selected by random draw a cash prize in an amount not
to exceed 50 percent of the gross proceeds collected from the sale
of raffle tickets.
(c) Only employees or volunteers of the professional sports
team charitable foundation or the professional sports team
associated with the foundation may sell raffle tickets for a
charitable raffle conducted under this chapter.
(d) Only persons 18 years of age or older may purchase
raffle tickets in a charitable raffle conducted under this chapter.
Sec. 2004.005. TICKET DISCLOSURES. The following
information must be printed on each raffle ticket sold or offered
for sale under this chapter:
(1) the name of the raffle for which the ticket is
offered for sale and the sales station at which the ticket was
purchased;
(2) the date on which the random draw to determine the
winner of the raffle will occur and the manner in which the winning
ticket for the raffle will be announced;
(3) the procedure and location for claiming a prize;
(4) the time allowed for a prize winner to claim a
prize; and
(5) the logo of the professional sports team
charitable foundation, the logo of the professional sports team
associated with the foundation, or both.
Sec. 2004.006. USE OF RAFFLE PROCEEDS. All proceeds from
the sale of raffle tickets less the amounts deducted for reasonable
operating expenses and cash prizes must be used for the charitable
purposes of the professional sports team charitable foundation.
Sec. 2004.007. REASONABLE OPERATING EXPENSES. (a) For each
raffle conducted under this chapter, a professional sports team
charitable foundation may deduct not more than 10 percent of the
gross proceeds collected from the sale of tickets for the raffle to
pay the reasonable operating expenses of conducting the raffle.
(b) For purposes of this chapter, reasonable operating
expenses include:
(1) promotion, advertisements, charitable foundation
fund-raising events, equipment, and administrative expenses; and
(2) purchase, lease, or licensing fees for the
equipment, hardware, and software necessary to:
(A) sell raffle tickets to raffle participants;
(B) conduct random drawings to select prize
winners; and
(C) continuously calculate the number of ticket
sales, amount of money collected, amount of cash prize to be
awarded, amount of money raised for charitable purposes, and amount
of gross ticket sales that may be deducted for reasonable operating
expenses.
Sec. 2004.008. COMMUNICATION OF WINNING NUMBER. The
winning number of a charitable raffle conducted under this chapter
may not be communicated to raffle participants by means of
interactive and instantaneous technology.
Sec. 2004.009. CRIMINAL PENALTIES. (a) A person commits an
offense if the person accepts any form of payment other than United
States currency for the purchase of a raffle ticket for a charitable
raffle conducted under this chapter.
(b) A person commits an offense if the person sells or
offers to sell a raffle ticket for a charitable raffle conducted
under this chapter to an individual that the person knows to be
younger than 18 years of age.
(c) A person commits an offense if the person purchases a
raffle ticket for a charitable raffle conducted under this chapter
with the proceeds of a check issued as a payment under the financial
assistance program administered under Chapter 31, Human Resources
Code.
(d) A person commits an offense if the person misrepresents
the person's age or displays fraudulent evidence that the person is
18 years of age or older in order to purchase a raffle ticket for a
charitable raffle conducted under this chapter.
(e) An offense under this section is a Class C misdemeanor.
Sec. 2004.010. INJUNCTIVE ACTION AGAINST UNAUTHORIZED
RAFFLE. (a) A county attorney, district attorney, criminal
district attorney, or the attorney general may bring an action in
county or district court for a permanent or temporary injunction or
a temporary restraining order prohibiting conduct involving a
raffle or similar procedure that:
(1) violates or threatens to violate state law
relating to gambling; and
(2) is not authorized by this chapter, Chapter 2002,
or other law.
(b) Venue for an action under this section is in the county
in which the conduct occurs or in which a defendant in the action
resides.
SECTION 2. Section 47.02(c), Penal Code, is amended to read
as follows:
(c) It is a defense to prosecution under this section that
the actor reasonably believed that the conduct:
(1) was permitted under Chapter 2001, Occupations
Code;
(2) was permitted under Chapter 2002, Occupations
Code;
(3) was permitted under Chapter 2004, Occupations
Code;
(4) consisted entirely of participation in the state
lottery authorized by the State Lottery Act (Chapter 466,
Government Code);
(5) [(4)] was permitted under the Texas Racing Act
(Article 179e, Vernon's Texas Civil Statutes); or
(6) [(5)] consisted entirely of participation in a
drawing for the opportunity to participate in a hunting, fishing,
or other recreational event conducted by the Parks and Wildlife
Department.
SECTION 3. Section 47.09(a), Penal Code, is amended to read
as follows:
(a) It is a defense to prosecution under this chapter that
the conduct:
(1) was authorized under:
(A) Chapter 2001, Occupations Code;
(B) Chapter 2002, Occupations Code; [or]
(C) Chapter 2004, Occupations Code; or
(D) the Texas Racing Act (Article 179e, Vernon's
Texas Civil Statutes);
(2) consisted entirely of participation in the state
lottery authorized by Chapter 466, Government Code; or
(3) was a necessary incident to the operation of the
state lottery and was directly or indirectly authorized by:
(A) Chapter 466, Government Code;
(B) the lottery division of the Texas Lottery
Commission;
(C) the Texas Lottery Commission; or
(D) the director of the lottery division of the
Texas Lottery Commission.
SECTION 4. This Act takes effect January 1, 2016, but only
if the constitutional amendment proposed by the 84th Legislature,
Regular Session, 2015, authorizing the legislature to permit
professional sports team charitable foundations to conduct
charitable raffles is approved by the voters. If that amendment is
not approved by the voters, this Act has no effect.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 975 was passed by the House on April
17, 2015, by the following vote: Yeas 122, Nays 12, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 975 was passed by the Senate on May 6,
2015, by the following vote: Yeas 27, Nays 4.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor