SB2239 - Relating to charitable raffles conducted by certain intercollegiate athletics teams; creating criminal offenses.

  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:        &#x [Text truncated for display. 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