BILL ANALYSIS

C.S.H.B. 2757

By: Cyrier

Licensing & Administrative Procedures

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The COVID-19 pandemic has negatively impacted the fundraising abilities of nonprofit organizations. One way that these organizations are able to raise funds is through charitable raffles, but it has been noted that these organizations are currently only allowed to conduct two raffles per calendar year. C.S.H.B. 2757 seeks to remove this restriction and increase the number of charitable raffles that may be held annually and the maximum value of the prizes that may be awarded from these raffles.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2757 amends the Occupations Code to revise the general restrictions on the time and frequency of charitable raffles and the prizes awarded from those raffles as follows:

· removes the restriction on the number of raffles for which a nonprofit organization may sell or offer to sell tickets or award prizes in the same calendar year;

· restricts an organization instead to awarding prizes in one raffle per each calendar month;

· clarifies that a raffle conducted in a preceding calendar month for which a prize or prizes are awarded on a later date that occurs in a subsequent calendar month is not included in the number of raffles for which prizes are awarded by the organization in that subsequent calendar month;

· repeals the prohibition against an organization selling or offering to sell tickets for  multiple raffles simultaneously; and

· increases the maximum allowable value of a prize offered or awarded at a charitable raffle from $50,000 to $75,000, including a prize that consists of state lottery tickets, but excluding a residential dwelling awarded as a prize.

C.S.H.B. 2757 removes the provision limiting the number of charitable raffles a nonprofit wildlife conservation association or its local chapters, affiliates, wildlife cooperatives, or units may conduct to two each year.

C.S.H.B. 2757 repeals Sections 2002.052(a) and (c), Occupations Code.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2021.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 2757 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute includes provisions revising the general restrictions on the time and frequency of charitable raffles and the maximum allowable value of the prizes awarded from those raffles. The substitute also repeals provisions relating to those restrictions.