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