college teams get cash raffles at home games

The text as introduced · 1,549 words

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.