89R10107 BEE-D
By: Alvarado S.B. No. 2239
A BILL TO BE ENTITLED
AN ACT
relating to charitable raffles conducted by certain
intercollegiate athletics teams; creating criminal offenses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Intercollegiate
Athletics Team Charitable Raffle Enabling Act.
SECTION 2. Subtitle A, Title 13, Occupations Code, is
amended by adding Chapter 2005 to read as follows:
CHAPTER 2005. INTERCOLLEGIATE ATHLETICS TEAMS
CHARITABLE RAFFLES
Sec. 2005.001. DEFINITIONS. In this chapter:
(1) "Charitable purposes" has the meaning assigned by
Section 2002.002.
(2) "Intercollegiate athletics team" means an
athletics team that competes on behalf of a general academic
teaching institution or private or independent institution of
higher education, as those terms are defined by Section 61.003,
Education Code.
(3) "Raffle" has the meaning assigned by Section
2002.002.
Sec. 2005.002. QUALIFICATIONS TO CONDUCT RAFFLE. An
intercollegiate athletics team is qualified to conduct charitable
raffles under this chapter if the team:
(1) is associated 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; and
(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.
Sec. 2005.003. RAFFLE AUTHORIZED; TICKET SALES. (a) An
intercollegiate athletics team that meets the qualifications under
Section 2005.002 may conduct a charitable raffle during each game
hosted at the intercollegiate athletics team's home venue to
provide revenue for charitable purposes for:
(1) intercollegiate athletics teams; and
(2) mental health services at the intercollegiate
athletics team's institution.
(b) Raffle tickets for a charitable raffle conducted under
Subsection (a) may be sold:
(1) at the home venue of the intercollegiate athletics
team conducting the raffle; or
(2) through digital interactive media, including an
Internet website of or mobile application provided by the
intercollegiate athletics team conducting the raffle.
(c) Raffle tickets for a charitable raffle conducted under
Subsection (a) may be sold only during the period beginning when the
venue opens to attendees of the game and ending when the draw to
determine the prize winners for the raffle concludes.
(d) Raffle tickets sold under Subsection (b)(2) may only be
sold to individuals who at the time of the sale are physically
located within the home venue of the intercollegiate athletics team
associated with the foundation conducting the raffle.
(e) Subsection (b)(2) does not authorize the use of an
Internet website or mobile application to provide a graphic or
dynamic animation that corresponds to the outcome of a winning or
losing raffle ticket.
(f) An intercollegiate athletics team 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.
(g) Only employees or volunteers of the intercollegiate
athletics team or of the intercollegiate athletics team's
institution may sell raffle tickets for a charitable raffle
conducted under this chapter.
(h) Only persons 18 years of age or older may purchase
raffle tickets in a charitable raffle conducted under this chapter.
An intercollegiate athletics team that conducts a charitable raffle
under Subsection (a) shall contract with a third-party vendor to
ensure only persons 18 years of age or older purchase tickets for
the raffle.
Sec. 2005.004. 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 intercollegiate athletics team,
the logo of the intercollegiate athletics team's institution, or
both.
Sec. 2005.005. 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 allocated as follows:
(1) at least 20 percent of the proceeds for mental
health services at the intercollegiate athletics team's
institution; and
(2) the remainder for the charitable purposes of the
intercollegiate athletics team or the intercollegiate athletics
team's institution.
Sec. 2005.006. REASONABLE OPERATING EXPENSES. (a) For each
raffle conducted under this chapter, an intercollegiate athletics
team may deduct not more than 10 percent of the gross proceeds
collected from the sale of raffle tickets 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. 2005.007. 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. 2005.008. CRIMINAL OFFENSES. (a) 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.
(b) 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.
(c) 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.
(d) An offense under this section is a Class C misdemeanor.
Sec. 2005.009. INJUNCTION 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,
Chapter 2004, 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 3. 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) was permitted under Chapter 2005, Occupations
Code;
(5) consisted entirely of participation in the state
lottery authorized by the State Lottery Act (Chapter 466,
Government Code);
(6) [(5)] was permitted under Subtitle A-1, Title 13,
Occupations Code (Texas Racing Act); or
(7) [(6)] 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 4. 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;
(C) Chapter 2004, Occupations Code;
(D) Chapter 2005, Occupations Code;
(E) Subtitle A-1, Title 13, Occupations Code
(Texas Racing Act); or
(F) [(E)] Chapter 280, Finance Code;
(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 5. This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, authorizing the legislature to permit
intercollegiate athletics teams to conduct charitable raffles is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.