Bill Text: TX HB975 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to charitable raffles conducted by certain professional sports team charitable foundations; creating a criminal offense.
Spectrum: Moderate Partisan Bill (Republican 8-2)
Status: (Passed) 2015-05-21 - See remarks for effective date [HB975 Detail]
Download: Texas-2015-HB975-Enrolled.html
H.B. No. 975 |
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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) [ |
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(Article 179e, Vernon's Texas Civil Statutes); or | ||
(6) [ |
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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; [ |
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(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 |