73R7375 ESH-D
By Junell H.B. No. 581
Substitute the following for H.B. No. 581:
By Kubiak C.S.H.B. No. 581
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the conduct of calcutta games by certain charitable
1-3 organizations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Title 6, Revised Statutes, is amended by adding
1-6 Article 179h to read as follows:
1-7 Art. 179h. CHARITABLE CALCUTTA GAMES
1-8 Sec. 1. DEFINITIONS. In this article:
1-9 (1) "Calcutta game" means a game or activity in which:
1-10 (A) a player selects a competitor and makes a
1-11 wager into a pool; and
1-12 (B) the pool is distributed based on the result
1-13 of the competition to:
1-14 (i) the sponsor, the players who selected
1-15 winning competitors, and the winning competitors; or
1-16 (ii) the sponsor and the players who
1-17 selected winning competitors.
1-18 (2) "Charitable purposes" means:
1-19 (A) benefiting needy or deserving persons in
1-20 this state, indefinite in number, by enhancing their opportunity
1-21 for religious or educational advancement, relieving them from
1-22 disease, suffering, or distress, contributing to their physical
1-23 well-being, assisting them in establishing themselves in life as
1-24 worthy and useful citizens, or increasing their comprehension of
2-1 and devotion to the principles on which this nation was founded and
2-2 enhancing their loyalty to their government; or
2-3 (B) initiating, performing, or fostering worthy
2-4 public works in this state or enabling or furthering the erection
2-5 or maintenance of public structures in this state.
2-6 (3) "Competition" means a sporting contest, including
2-7 a rodeo activity, in which there are one or more winners. The term
2-8 does not include a horse race or greyhound race conducted under the
2-9 Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) and
2-10 its subsequent amendments.
2-11 (4) "Competitor" means an individual who takes part in
2-12 a competition.
2-13 (5) "Player" means a person who makes a wager.
2-14 (6) "Pool" means the total amount of wagers received
2-15 by a sponsor.
2-16 (7) "Qualified nonprofit organization" means an
2-17 organization described by Section 3 of this article.
2-18 (8) "Qualified organization" means a qualified
2-19 religious society, qualified volunteer fire department, qualified
2-20 volunteer emergency medical service, or qualified nonprofit
2-21 organization.
2-22 (9) "Qualified religious society" means a church,
2-23 synagogue, or other organization or association that is organized
2-24 primarily for religious purposes and that:
2-25 (A) has been in existence in this state for at
2-26 least 10 years; and
2-27 (B) does not distribute any of its income to its
3-1 members, officers, or governing body other than as reasonable
3-2 compensation for services or reimbursement of expenses.
3-3 (10) "Qualified volunteer emergency medical service"
3-4 means an association that:
3-5 (A) is organized primarily to provide and
3-6 actively provides emergency medical, rescue, or ambulance services;
3-7 (B) does not pay its members compensation other
3-8 than nominal compensation; and
3-9 (C) does not distribute any of its income to its
3-10 members, officers, or governing body other than for reimbursement
3-11 of expenses.
3-12 (11) "Qualified volunteer fire department" means an
3-13 association that:
3-14 (A) operates fire-fighting equipment;
3-15 (B) is organized primarily to provide and
3-16 actively provides fire-fighting services;
3-17 (C) does not pay its members compensation other
3-18 than nominal compensation; and
3-19 (D) does not distribute any of its income to its
3-20 members, officers, or governing body other than for reimbursement
3-21 of expenses.
3-22 (12) "Sponsor" means a qualified organization that
3-23 conducts a calcutta game.
3-24 (13) "Wager" means a payment of or promise of a
3-25 payment of money that entitles a player to participate in a
3-26 calcutta game.
3-27 Sec. 2. CERTAIN CALCUTTA GAMES AUTHORIZED; RESTRICTIONS.
4-1 (a) A qualified organization may conduct a calcutta game as
4-2 provided by this section.
4-3 (b) A calcutta game is not authorized by this section if the
4-4 game is conducted in a calendar year in which the sponsor has
4-5 previously conducted four calcutta games.
4-6 (c) A sponsor must retain at least 10 percent of each pool.
4-7 The sponsor shall use its share of the pool for the charitable
4-8 purposes of the organization.
4-9 (d) The following must be printed on each solicitation for a
4-10 wager or receipt for a wager:
4-11 (1) the name of the sponsor and the address of the
4-12 sponsor or the address of a named officer of the sponsor;
4-13 (2) a general description of the competition; and
4-14 (3) the percentages of the pool that:
4-15 (A) the sponsor will retain;
4-16 (B) the players will receive; and
4-17 (C) the competitors will receive, if any.
4-18 (e) A sponsor may not compensate a person directly or
4-19 indirectly for organizing or conducting a calcutta game or for
4-20 soliciting or taking wagers. A sponsor may not permit a person who
4-21 is not a member of the sponsor's organization to solicit or take
4-22 wagers.
4-23 Sec. 3. QUALIFIED NONPROFIT ORGANIZATION. (a) An
4-24 organization that is incorporated or holds a certificate of
4-25 authority under the Texas Non-Profit Corporation Act (Article
4-26 1396-1.01 et seq., Vernon's Texas Civil Statutes) and its
4-27 subsequent amendments is a qualified nonprofit organization if the
5-1 organization:
5-2 (1) does not distribute any of its income to its
5-3 members, officers, or governing body, other than as reasonable
5-4 compensation for services;
5-5 (2) has existed for the three preceding years and
5-6 during those years has had a governing body or officers elected by
5-7 a vote of its members or by a vote of delegates elected by the
5-8 members;
5-9 (3) does not devote a substantial part of its
5-10 activities to attempting to influence legislation and does not,
5-11 through publishing or distributing statements, making campaign
5-12 contributions, or in any other manner, participate or intervene in
5-13 any political campaign on behalf of any candidate for public
5-14 office;
5-15 (4) qualifies for and has obtained an exemption from
5-16 federal income tax from the Internal Revenue Service under Section
5-17 501(c), Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)),
5-18 and its subsequent amendments; and
5-19 (5) does not have or recognize any local chapter,
5-20 affiliate, unit, or subsidiary organization in this state.
5-21 (b) An organization that is formally recognized as and that
5-22 operates as a local chapter, affiliate, unit, or subsidiary
5-23 organization of a parent organization that is incorporated or holds
5-24 a certificate of authority under the Texas Non-Profit Corporation
5-25 Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) and
5-26 its subsequent amendments is a qualified nonprofit organization if:
5-27 (1) neither the local organization nor the parent
6-1 organization distributes any of its income to its members,
6-2 officers, or governing body, other than as reasonable compensation
6-3 for services;
6-4 (2) the local organization has existed for the three
6-5 preceding years and during those years:
6-6 (A) has had a governing body or officers elected
6-7 by a vote of its members or by a vote of delegates elected by the
6-8 members; or
6-9 (B) has been formally recognized as a local
6-10 chapter, affiliate, unit, or subsidiary organization of the parent
6-11 organization;
6-12 (3) neither the local organization nor the parent
6-13 organization devotes a substantial part of its activities to
6-14 attempting to influence legislation and does not, through
6-15 publishing or distributing statements, making campaign
6-16 contributions, or in any other manner, participate or intervene in
6-17 any political campaign on behalf of any candidate for public
6-18 office; and
6-19 (4) either the local organization or the parent
6-20 organization qualifies for and has obtained an exemption from
6-21 federal income tax from the Internal Revenue Service under Section
6-22 501(c), Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)),
6-23 and its subsequent amendments.
6-24 (c) An unincorporated organization, association, or society
6-25 is a qualified nonprofit organization if it:
6-26 (1) does not distribute any of its income to its
6-27 members, officers, or governing body, other than as reasonable
7-1 compensation for services;
7-2 (2) for the three preceding years:
7-3 (A) has had a governing body or officers elected
7-4 by a vote of members or by a vote of delegates elected by the
7-5 members; or
7-6 (B) has been affiliated with a state or national
7-7 organization organized to perform the same purposes;
7-8 (3) does not devote a substantial part of its
7-9 activities to attempting to influence legislation and does not,
7-10 through publishing or distributing statements, making campaign
7-11 contributions, or in any other manner, participate or intervene in
7-12 any political campaign on behalf of any candidate for public
7-13 office; and
7-14 (4) qualifies for and has obtained an exemption from
7-15 federal income tax from the Internal Revenue Service under Section
7-16 501(c), Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)),
7-17 and its subsequent amendments.
7-18 (d) An organization is considered to devote a substantial
7-19 part of its activities to attempting to influence legislation for
7-20 purposes of this section if in any 12-month period in the preceding
7-21 three years more than 10 percent of the expenditures of the
7-22 organization were made to influence legislation.
7-23 Sec. 4. CERTAIN ACTS CONSIDERED ACTS OF ORGANIZATION. For
7-24 purposes of this article, an organization performs an act if a
7-25 member, officer, or agent of the organization performs the act with
7-26 the consent or authorization of the organization.
7-27 Sec. 5. INJUNCTION OF UNAUTHORIZED CALCUTTA GAME. (a) A
8-1 county, district, or criminal district attorney or the attorney
8-2 general may bring an action in county or district court for a
8-3 permanent or temporary injunction or a temporary restraining order
8-4 prohibiting conduct involving a calcutta game or similar procedure
8-5 that violates or threatens to violate state law relating to
8-6 gambling and that is not authorized by this article or other law.
8-7 (b) Venue for an action under this section is in the county
8-8 in which the conduct occurs or in which a defendant in the action
8-9 resides.
8-10 SECTION 2. Section 47.02(c), Penal Code, is amended to read
8-11 as follows:
8-12 (c) It is a defense to prosecution under this section that
8-13 the actor reasonably believed that the conduct:
8-14 (1) was permitted under the Bingo Enabling Act
8-15 (Article 179d, Vernon's Texas Civil Statutes);
8-16 (2) was permitted under the Charitable Raffle Enabling
8-17 Act (Article 179f, Revised Statutes); <or>
8-18 (3) consisted entirely of participation in the state
8-19 lottery authorized by the State Lottery Act; or
8-20 (4) was permitted under Article 179h, Revised
8-21 Statutes.
8-22 SECTION 3. Chapter 47, Penal Code, is amended by adding
8-23 Section 47.15 to read as follows:
8-24 Sec. 47.15. CALCUTTA GAME. It is a defense to prosecution
8-25 for an offense under this chapter that the conduct was authorized
8-26 under Article 179h, Revised Statutes.
8-27 SECTION 4. (a) This Act takes effect September 1, 1993.
9-1 (b) The change in law made by this Act applies to a criminal
9-2 action pending, on appeal, or commenced on or after the effective
9-3 date of this Act, whether the action is for an offense committed
9-4 before, on, or after the effective date. The change in law made by
9-5 this Act does not affect a final conviction that exists on the
9-6 effective date of this Act.
9-7 SECTION 5. The importance of this legislation and the
9-8 crowded condition of the calendars in both houses create an
9-9 emergency and an imperative public necessity that the
9-10 constitutional rule requiring bills to be read on three several
9-11 days in each house be suspended, and this rule is hereby suspended.