1 | 1 | | 89R10107 BEE-D |
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2 | 2 | | By: Alvarado S.B. No. 2239 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to charitable raffles conducted by certain |
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10 | 10 | | intercollegiate athletics teams; creating criminal offenses. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. This Act may be cited as the Intercollegiate |
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13 | 13 | | Athletics Team Charitable Raffle Enabling Act. |
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14 | 14 | | SECTION 2. Subtitle A, Title 13, Occupations Code, is |
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15 | 15 | | amended by adding Chapter 2005 to read as follows: |
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16 | 16 | | CHAPTER 2005. INTERCOLLEGIATE ATHLETICS TEAMS |
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17 | 17 | | CHARITABLE RAFFLES |
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18 | 18 | | Sec. 2005.001. DEFINITIONS. In this chapter: |
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19 | 19 | | (1) "Charitable purposes" has the meaning assigned by |
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20 | 20 | | Section 2002.002. |
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21 | 21 | | (2) "Intercollegiate athletics team" means an |
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22 | 22 | | athletics team that competes on behalf of a general academic |
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23 | 23 | | teaching institution or private or independent institution of |
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24 | 24 | | higher education, as those terms are defined by Section 61.003, |
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25 | 25 | | Education Code. |
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26 | 26 | | (3) "Raffle" has the meaning assigned by Section |
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27 | 27 | | 2002.002. |
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28 | 28 | | Sec. 2005.002. QUALIFICATIONS TO CONDUCT RAFFLE. An |
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29 | 29 | | intercollegiate athletics team is qualified to conduct charitable |
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30 | 30 | | raffles under this chapter if the team: |
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31 | 31 | | (1) is associated with a home venue located in this |
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32 | 32 | | state; |
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33 | 33 | | (2) does not distribute any of its income to its |
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34 | 34 | | members, officers, or governing body, other than as reasonable |
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35 | 35 | | compensation for services; |
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36 | 36 | | (3) has existed for at least the three years preceding |
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37 | 37 | | the conduct of a raffle under this chapter; |
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38 | 38 | | (4) does not devote a substantial part of its |
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39 | 39 | | activities to attempting to influence legislation and does not |
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40 | 40 | | participate or intervene in any political campaign on behalf of any |
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41 | 41 | | candidate for public office in any manner, including by publishing |
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42 | 42 | | or distributing statements or making campaign contributions; and |
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43 | 43 | | (5) qualifies for and has obtained an exemption from |
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44 | 44 | | federal income tax from the Internal Revenue Service as a |
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45 | 45 | | charitable organization described in Section 501(c)(3), Internal |
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46 | 46 | | Revenue Code of 1986. |
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47 | 47 | | Sec. 2005.003. RAFFLE AUTHORIZED; TICKET SALES. (a) An |
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48 | 48 | | intercollegiate athletics team that meets the qualifications under |
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49 | 49 | | Section 2005.002 may conduct a charitable raffle during each game |
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50 | 50 | | hosted at the intercollegiate athletics team's home venue to |
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51 | 51 | | provide revenue for charitable purposes for: |
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52 | 52 | | (1) intercollegiate athletics teams; and |
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53 | 53 | | (2) mental health services at the intercollegiate |
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54 | 54 | | athletics team's institution. |
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55 | 55 | | (b) Raffle tickets for a charitable raffle conducted under |
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56 | 56 | | Subsection (a) may be sold: |
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57 | 57 | | (1) at the home venue of the intercollegiate athletics |
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58 | 58 | | team conducting the raffle; or |
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59 | 59 | | (2) through digital interactive media, including an |
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60 | 60 | | Internet website of or mobile application provided by the |
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61 | 61 | | intercollegiate athletics team conducting the raffle. |
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62 | 62 | | (c) Raffle tickets for a charitable raffle conducted under |
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63 | 63 | | Subsection (a) may be sold only during the period beginning when the |
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64 | 64 | | venue opens to attendees of the game and ending when the draw to |
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65 | 65 | | determine the prize winners for the raffle concludes. |
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66 | 66 | | (d) Raffle tickets sold under Subsection (b)(2) may only be |
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67 | 67 | | sold to individuals who at the time of the sale are physically |
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68 | 68 | | located within the home venue of the intercollegiate athletics team |
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69 | 69 | | associated with the foundation conducting the raffle. |
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70 | 70 | | (e) Subsection (b)(2) does not authorize the use of an |
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71 | 71 | | Internet website or mobile application to provide a graphic or |
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72 | 72 | | dynamic animation that corresponds to the outcome of a winning or |
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73 | 73 | | losing raffle ticket. |
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74 | 74 | | (f) An intercollegiate athletics team authorized to conduct |
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75 | 75 | | a raffle under this section may award to a raffle winner selected by |
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76 | 76 | | random draw a cash prize in an amount not to exceed 50 percent of the |
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77 | 77 | | gross proceeds collected from the sale of raffle tickets. |
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78 | 78 | | (g) Only employees or volunteers of the intercollegiate |
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79 | 79 | | athletics team or of the intercollegiate athletics team's |
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80 | 80 | | institution may sell raffle tickets for a charitable raffle |
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81 | 81 | | conducted under this chapter. |
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82 | 82 | | (h) Only persons 18 years of age or older may purchase |
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83 | 83 | | raffle tickets in a charitable raffle conducted under this chapter. |
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84 | 84 | | An intercollegiate athletics team that conducts a charitable raffle |
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85 | 85 | | under Subsection (a) shall contract with a third-party vendor to |
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86 | 86 | | ensure only persons 18 years of age or older purchase tickets for |
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87 | 87 | | the raffle. |
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88 | 88 | | Sec. 2005.004. TICKET DISCLOSURES. The following |
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89 | 89 | | information must be printed on each raffle ticket sold or offered |
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90 | 90 | | for sale under this chapter: |
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91 | 91 | | (1) the name of the raffle for which the ticket is |
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92 | 92 | | offered for sale and the sales station at which the ticket was |
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93 | 93 | | purchased; |
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94 | 94 | | (2) the date on which the random draw to determine the |
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95 | 95 | | winner of the raffle will occur and the manner in which the winning |
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96 | 96 | | ticket for the raffle will be announced; |
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97 | 97 | | (3) the procedure and location for claiming a prize; |
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98 | 98 | | (4) the time allowed for a prize winner to claim a |
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99 | 99 | | prize; and |
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100 | 100 | | (5) the logo of the intercollegiate athletics team, |
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101 | 101 | | the logo of the intercollegiate athletics team's institution, or |
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102 | 102 | | both. |
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103 | 103 | | Sec. 2005.005. USE OF RAFFLE PROCEEDS. All proceeds from |
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104 | 104 | | the sale of raffle tickets less the amounts deducted for reasonable |
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105 | 105 | | operating expenses and cash prizes must be allocated as follows: |
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106 | 106 | | (1) at least 20 percent of the proceeds for mental |
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107 | 107 | | health services at the intercollegiate athletics team's |
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108 | 108 | | institution; and |
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109 | 109 | | (2) the remainder for the charitable purposes of the |
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110 | 110 | | intercollegiate athletics team or the intercollegiate athletics |
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111 | 111 | | team's institution. |
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112 | 112 | | Sec. 2005.006. REASONABLE OPERATING EXPENSES. (a) For each |
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113 | 113 | | raffle conducted under this chapter, an intercollegiate athletics |
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114 | 114 | | team may deduct not more than 10 percent of the gross proceeds |
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115 | 115 | | collected from the sale of raffle tickets to pay the reasonable |
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116 | 116 | | operating expenses of conducting the raffle. |
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117 | 117 | | (b) For purposes of this chapter, reasonable operating |
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118 | 118 | | expenses include: |
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119 | 119 | | (1) promotion, advertisements, charitable foundation |
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120 | 120 | | fund-raising events, equipment, and administrative expenses; and |
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121 | 121 | | (2) purchase, lease, or licensing fees for the |
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122 | 122 | | equipment, hardware, and software necessary to: |
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123 | 123 | | (A) sell raffle tickets to raffle participants; |
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124 | 124 | | (B) conduct random drawings to select prize |
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125 | 125 | | winners; and |
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126 | 126 | | (C) continuously calculate the number of ticket |
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127 | 127 | | sales, amount of money collected, amount of cash prize to be |
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128 | 128 | | awarded, amount of money raised for charitable purposes, and amount |
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129 | 129 | | of gross ticket sales that may be deducted for reasonable operating |
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130 | 130 | | expenses. |
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131 | 131 | | Sec. 2005.007. COMMUNICATION OF WINNING NUMBER. The |
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132 | 132 | | winning number of a charitable raffle conducted under this chapter |
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133 | 133 | | may not be communicated to raffle participants by means of |
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134 | 134 | | interactive and instantaneous technology. |
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135 | 135 | | Sec. 2005.008. CRIMINAL OFFENSES. (a) A person commits an |
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136 | 136 | | offense if the person sells or offers to sell a raffle ticket for a |
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137 | 137 | | charitable raffle conducted under this chapter to an individual |
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138 | 138 | | that the person knows to be younger than 18 years of age. |
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139 | 139 | | (b) A person commits an offense if the person purchases a |
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140 | 140 | | raffle ticket for a charitable raffle conducted under this chapter |
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141 | 141 | | with the proceeds of a check issued as a payment under the financial |
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142 | 142 | | assistance program administered under Chapter 31, Human Resources |
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143 | 143 | | Code. |
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144 | 144 | | (c) A person commits an offense if the person misrepresents |
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145 | 145 | | the person's age or displays fraudulent evidence that the person is |
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146 | 146 | | 18 years of age or older in order to purchase a raffle ticket for a |
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147 | 147 | | charitable raffle conducted under this chapter. |
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148 | 148 | | (d) An offense under this section is a Class C misdemeanor. |
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149 | 149 | | Sec. 2005.009. INJUNCTION AGAINST UNAUTHORIZED RAFFLE. (a) |
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150 | 150 | | A county attorney, district attorney, criminal district attorney, |
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151 | 151 | | or the attorney general may bring an action in county or district |
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152 | 152 | | court for a permanent or temporary injunction or a temporary |
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153 | 153 | | restraining order prohibiting conduct involving a raffle or similar |
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154 | 154 | | procedure that: |
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155 | 155 | | (1) violates or threatens to violate state law |
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156 | 156 | | relating to gambling; and |
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157 | 157 | | (2) is not authorized by this chapter, Chapter 2002, |
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158 | 158 | | Chapter 2004, or other law. |
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159 | 159 | | (b) Venue for an action under this section is in the county |
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160 | 160 | | in which the conduct occurs or in which a defendant in the action |
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161 | 161 | | resides. |
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162 | 162 | | SECTION 3. Section 47.02(c), Penal Code, is amended to read |
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163 | 163 | | as follows: |
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164 | 164 | | (c) It is a defense to prosecution under this section that |
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165 | 165 | | the actor reasonably believed that the conduct: |
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166 | 166 | | (1) was permitted under Chapter 2001, Occupations |
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167 | 167 | | Code; |
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168 | 168 | | (2) was permitted under Chapter 2002, Occupations |
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169 | 169 | | Code; |
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170 | 170 | | (3) was permitted under Chapter 2004, Occupations |
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171 | 171 | | Code; |
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172 | 172 | | (4) was permitted under Chapter 2005, Occupations |
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173 | 173 | | Code; |
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174 | 174 | | (5) consisted entirely of participation in the state |
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175 | 175 | | lottery authorized by the State Lottery Act (Chapter 466, |
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176 | 176 | | Government Code); |
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177 | 177 | | (6) [(5)] was permitted under Subtitle A-1, Title 13, |
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178 | 178 | | Occupations Code (Texas Racing Act); or |
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179 | 179 | | (7) [(6)] consisted entirely of participation in a |
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180 | 180 | | drawing for the opportunity to participate in a hunting, fishing, |
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181 | 181 | | or other recreational event conducted by the Parks and Wildlife |
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182 | 182 | | Department. |
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183 | 183 | | SECTION 4. Section 47.09(a), Penal Code, is amended to read |
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184 | 184 | | as follows: |
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185 | 185 | | (a) It is a defense to prosecution under this chapter that |
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186 | 186 | | the conduct: |
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187 | 187 | | (1) was authorized under: |
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188 | 188 | | (A) Chapter 2001, Occupations Code; |
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189 | 189 | | (B) Chapter 2002, Occupations Code; |
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190 | 190 | | (C) Chapter 2004, Occupations Code; |
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191 | 191 | | (D) Chapter 2005, Occupations Code; |
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192 | 192 | | (E) Subtitle A-1, Title 13, Occupations Code |
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193 | 193 | | (Texas Racing Act); or |
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194 | 194 | | (F) [(E)] Chapter 280, Finance Code; |
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195 | 195 | | (2) consisted entirely of participation in the state |
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196 | 196 | | lottery authorized by Chapter 466, Government Code; or |
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197 | 197 | | (3) was a necessary incident to the operation of the |
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198 | 198 | | state lottery and was directly or indirectly authorized by: |
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199 | 199 | | (A) Chapter 466, Government Code; |
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200 | 200 | | (B) the lottery division of the Texas Lottery |
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201 | 201 | | Commission; |
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202 | 202 | | (C) the Texas Lottery Commission; or |
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203 | 203 | | (D) the director of the lottery division of the |
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204 | 204 | | Texas Lottery Commission. |
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205 | 205 | | SECTION 5. This Act takes effect January 1, 2026, but only |
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206 | 206 | | if the constitutional amendment proposed by the 89th Legislature, |
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207 | 207 | | Regular Session, 2025, authorizing the legislature to permit |
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208 | 208 | | intercollegiate athletics teams to conduct charitable raffles is |
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209 | 209 | | approved by the voters. If that amendment is not approved by the |
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210 | 210 | | voters, this Act has no effect. |
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