H.B. No. 541
AN ACT
relating to the conduct of charitable raffles.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2002.002, Occupations Code, is amended
by adding Subdivision (1-a) to read as follows:
(1-a) "Money" means coins, paper currency, or a
negotiable instrument that represents and is readily convertible to
coins or paper currency.
SECTION 2. Sections 2002.003(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) An organization incorporated or holding a certificate
of authority under the Texas Non-Profit Corporation Act (Article
1396-1.01 et seq., Vernon's Texas Civil Statutes) is a qualified
nonprofit organization for the purposes of this chapter if the
organization:
(1) does not distribute any of its income to its
members, officers, or governing body, other than as reasonable
compensation for services;
(2) has existed for the three preceding years [and
during those years has had a governing body or officers elected by a
vote of its members or by a vote of delegates elected by its
members];
(3) 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;
(4) qualifies for and has obtained an exemption from
federal income tax from the Internal Revenue Service under Section
501(c), Internal Revenue Code of 1986; and
(5) does not have or recognize any local chapter,
affiliate, unit, or subsidiary organization in this state.
(b) An organization that is formally recognized as and that
operates as a local chapter, affiliate, unit, or subsidiary
organization of a parent organization incorporated or holding a
certificate of authority under the Texas Non-Profit Corporation Act
(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) is a
qualified nonprofit organization if:
(1) neither the local organization nor the parent
organization distributes any of its income to its members,
officers, or governing body, other than as reasonable compensation
for services;
(2) the local organization has existed for the three
preceding years and during those years[:
[(A) has had a governing body or officers elected
by a vote of its members or by a vote of delegates elected by its
members; or
[(B)] has been formally recognized as a local
chapter, affiliate, unit, or subsidiary organization of the parent
organization;
(3) neither the local organization nor the parent
organization:
(A) devotes a substantial part of its activities
to attempting to influence legislation; or
(B) participates or intervenes 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
(4) either the local organization or the parent
organization qualifies for and has obtained an exemption from
federal income tax from the Internal Revenue Service under Section
501(c), Internal Revenue Code of 1986.
(c) An unincorporated organization, association, or society
is a qualified nonprofit organization if it:
(1) does not distribute any of its income to its
members, officers, or governing body, other than as reasonable
compensation for services;
(2) for the three preceding years[:
[(A) has had a governing body or officers elected
by a vote of members or by a vote of delegates elected by the
members; or
[(B)] has been affiliated with a state or
national organization organized to perform the same purposes as the
unincorporated organization, association, or society;
(3) 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
(4) qualifies for and has obtained an exemption from
federal income tax from the Internal Revenue Service under Section
501(c), Internal Revenue Code of 1986.
SECTION 3. Section 2002.053, Occupations Code, is amended
to read as follows:
Sec. 2002.053. USE OF RAFFLE PROCEEDS. All proceeds from
the sale of tickets for a raffle must be spent for the charitable
purposes of the qualified organization.
SECTION 4. Section 2002.054(c), Occupations Code, is
amended to read as follows:
(c) The organization may not permit a person who is not [a
member of the organization or who is not] authorized by the
organization to sell or offer to sell raffle tickets.
SECTION 5. Section 2002.056, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) Except as provided by Subsections (b-1) and
[Subsection] (c), the value of a prize offered or awarded at a
raffle that is purchased by the organization or for which the
organization provides any consideration may not exceed $50,000.
(b-1) The value of a residential dwelling offered or awarded
as a prize at a raffle that is purchased by the organization or for
which the organization provides any consideration may not exceed
$250,000.
SECTION 6. The change in law made by this Act to Section
2002.056, Occupations Code, applies to a raffle conducted under
Chapter 2002, Occupations Code, only if the prizes are awarded on or
after the effective date of this Act. A raffle for which the prizes
are awarded before the effective date of this Act is covered by the
law in effect when the prizes were awarded, and the former law is
continued in effect for purposes of any criminal liability arising
under that law before the effective date of this Act.
SECTION 7. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 541 was passed by the House on May 9,
2005, by the following vote: Yeas 144, Nays 0, 3 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 541 on May 27, 2005, by the following vote: Yeas 132, Nays 3, 2
present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 541 was passed by the Senate, with
amendments, on May 23, 2005, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor