By:  Junell                                            H.B. No. 581
       73R55 ESH-D
                                 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).
   2-10              (4)  "Competitor" means an individual who takes part in
   2-11  a competition.
   2-12              (5)  "Player" means a person who makes a wager.
   2-13              (6)  "Pool" means the total amount of wagers received
   2-14  by a sponsor.
   2-15              (7)  "Qualified nonprofit organization" means an
   2-16  organization described by Section 3 of this article.
   2-17              (8)  "Qualified organization" means a qualified
   2-18  religious society, qualified volunteer fire department, qualified
   2-19  volunteer emergency medical service, or qualified nonprofit
   2-20  organization.
   2-21              (9)  "Qualified religious society" means a church,
   2-22  synagogue, or other organization or association that is organized
   2-23  primarily for religious purposes and that:
   2-24                    (A)  has been in existence in this state for at
   2-25  least 10 years; and
   2-26                    (B)  does not distribute any of its income to its
   2-27  members, officers, or governing body other than as reasonable
    3-1  compensation for services or reimbursement of expenses.
    3-2              (10)  "Qualified volunteer emergency medical service"
    3-3  means an association that:
    3-4                    (A)  is organized primarily to provide and
    3-5  actively provides emergency medical, rescue, or ambulance services;
    3-6                    (B)  does not pay its members compensation other
    3-7  than nominal compensation; and
    3-8                    (C)  does not distribute any of its income to its
    3-9  members, officers, or governing body other than for reimbursement
   3-10  of expenses.
   3-11              (11)  "Qualified volunteer fire department" means an
   3-12  association that:
   3-13                    (A)  operates fire-fighting equipment;
   3-14                    (B)  is organized primarily to provide and
   3-15  actively provides fire-fighting services;
   3-16                    (C)  does not pay its members compensation other
   3-17  than nominal compensation; and
   3-18                    (D)  does not distribute any of its income to its
   3-19  members, officers, or governing body other than for reimbursement
   3-20  of expenses.
   3-21              (12)  "Sponsor" means a qualified organization that
   3-22  conducts a calcutta game.
   3-23              (13)  "Wager" means a payment of or promise of a
   3-24  payment of money that entitles a player to participate in a
   3-25  calcutta game.
   3-26        Sec. 2.  CERTAIN CALCUTTA GAMES AUTHORIZED; RESTRICTIONS.
   3-27  (a)  A qualified organization may conduct a calcutta game as
    4-1  provided by this section.
    4-2        (b)  A calcutta game is not authorized by this section if the
    4-3  game is conducted in a calendar year in which the sponsor has
    4-4  previously conducted a calcutta game.
    4-5        (c)  A sponsor must retain at least 10 percent of each pool.
    4-6  The sponsor shall use its share of the pool for the charitable
    4-7  purposes of the organization.
    4-8        (d)  The following must be printed on each solicitation for a
    4-9  wager or receipt for a wager:
   4-10              (1)  the name of the sponsor and the address of the
   4-11  sponsor or the address of a named officer of the sponsor;
   4-12              (2)  a general description of the competition; and
   4-13              (3)  the percentages of the pool that:
   4-14                    (A)  the sponsor will retain;
   4-15                    (B)  the players will receive; and
   4-16                    (C)  the competitors will receive, if any.
   4-17        (e)  A sponsor may not compensate a person directly or
   4-18  indirectly for organizing or conducting a calcutta game or for
   4-19  soliciting or taking wagers.  A sponsor may not permit a person who
   4-20  is not a member of the sponsor's organization to solicit or take
   4-21  wagers.
   4-22        Sec. 3.  QUALIFIED NONPROFIT ORGANIZATION.  (a)  An
   4-23  organization that is incorporated or holds a certificate of
   4-24  authority under the Texas Non-Profit Corporation Act (Article
   4-25  1396-1.01 et seq., Vernon's Texas Civil Statutes) is a qualified
   4-26  nonprofit organization if the organization:
   4-27              (1)  does not distribute any of its income to its
    5-1  members, officers, or governing body, other than as reasonable
    5-2  compensation for services;
    5-3              (2)  has existed for the three preceding years and
    5-4  during those years has had a governing body or officers elected by
    5-5  a vote of its members or by a vote of delegates elected by the
    5-6  members;
    5-7              (3)  does not devote a substantial part of its
    5-8  activities to attempting to influence legislation and does not,
    5-9  through publishing or distributing statements, making campaign
   5-10  contributions, or in any other manner, participate or intervene in
   5-11  any political campaign on behalf of any candidate for public
   5-12  office;
   5-13              (4)  qualifies for and has obtained an exemption from
   5-14  federal income tax from the Internal Revenue Service under Section
   5-15  501(c), Internal Revenue Code of 1986 (26 U.S.C. Section 501(c));
   5-16  and
   5-17              (5)  does not have or recognize any local chapter,
   5-18  affiliate, unit, or subsidiary organization in this state.
   5-19        (b)  An organization that is formally recognized as and that
   5-20  operates as a local chapter, affiliate, unit, or subsidiary
   5-21  organization of a parent organization that is incorporated or holds
   5-22  a certificate of authority under the Texas Non-Profit Corporation
   5-23  Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) is a
   5-24  qualified nonprofit organization if:
   5-25              (1)  neither the local organization nor the parent
   5-26  organization distributes any of its income to its members,
   5-27  officers, or governing body, other than as reasonable compensation
    6-1  for services;
    6-2              (2)  the local organization has existed for the three
    6-3  preceding years and during those years:
    6-4                    (A)  has had a governing body or officers elected
    6-5  by a vote of its members or by a vote of delegates elected by the
    6-6  members; or
    6-7                    (B)  has been formally recognized as a local
    6-8  chapter, affiliate, unit, or subsidiary organization of the parent
    6-9  organization;
   6-10              (3)  neither the local organization nor the parent
   6-11  organization devotes a substantial part of its activities to
   6-12  attempting to influence legislation and does not, through
   6-13  publishing or distributing statements, making campaign
   6-14  contributions, or in any other manner, participate or intervene in
   6-15  any political campaign on behalf of any candidate for public
   6-16  office; and
   6-17              (4)  either the local organization or the parent
   6-18  organization qualifies for and has obtained an exemption from
   6-19  federal income tax from the Internal Revenue Service under Section
   6-20  501(c), Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)).
   6-21        (c)  An unincorporated organization, association, or society
   6-22  is a qualified nonprofit organization if it:
   6-23              (1)  does not distribute any of its income to its
   6-24  members, officers, or governing body, other than as reasonable
   6-25  compensation for services;
   6-26              (2)  for the three preceding years:
   6-27                    (A)  has had a governing body or officers elected
    7-1  by a vote of members or by a vote of delegates elected by the
    7-2  members; or
    7-3                    (B)  has been affiliated with a state or national
    7-4  organization organized to perform the same purposes;
    7-5              (3)  does not devote a substantial part of its
    7-6  activities to attempting to influence legislation and does not,
    7-7  through publishing or distributing statements, making campaign
    7-8  contributions, or in any other manner, participate or intervene in
    7-9  any political campaign on behalf of any candidate for public
   7-10  office; and
   7-11              (4)  qualifies for and has obtained an exemption from
   7-12  federal income tax from the Internal Revenue Service under Section
   7-13  501(c), Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)).
   7-14        (d)  An organization is considered to devote a substantial
   7-15  part of its activities to attempting to influence legislation for
   7-16  purposes of this section if in any 12-month period in the preceding
   7-17  three years more than 10 percent of the expenditures of the
   7-18  organization were made to influence legislation.
   7-19        Sec. 4.  CERTAIN ACTS CONSIDERED ACTS OF ORGANIZATION.  For
   7-20  purposes of this article, an organization performs an act if a
   7-21  member, officer, or agent of the organization performs the act with
   7-22  the consent or authorization of the organization.
   7-23        Sec. 5.  INJUNCTION OF UNAUTHORIZED CALCUTTA GAME.  (a)  A
   7-24  county, district, or criminal district attorney or the attorney
   7-25  general may bring an action in county or district court for a
   7-26  permanent or temporary injunction or a temporary restraining order
   7-27  prohibiting conduct involving a calcutta game or similar procedure
    8-1  that violates or threatens to violate state law relating to
    8-2  gambling and that is not authorized by this article or other law.
    8-3        (b)  Venue for an action under this section is in the county
    8-4  in which the conduct occurs or in which a defendant in the action
    8-5  resides.
    8-6        SECTION 2.  Section 47.02(c), Penal Code, is amended to read
    8-7  as follows:
    8-8        (c)  It is a defense to prosecution under this section that
    8-9  the actor reasonably believed that the conduct:
   8-10              (1)  was permitted under the Bingo Enabling Act
   8-11  (Article 179d, Vernon's Texas Civil Statutes);
   8-12              (2)  was permitted under the Charitable Raffle Enabling
   8-13  Act (Article 179f, Revised Statutes); <or>
   8-14              (3)  consisted entirely of participation in the state
   8-15  lottery authorized by the State Lottery Act; or
   8-16              (4)  was permitted under Article 179h, Revised
   8-17  Statutes.
   8-18        SECTION 3.  Chapter 47, Penal Code, is amended by adding
   8-19  Section 47.15 to read as follows:
   8-20        Sec. 47.15.  CALCUTTA GAME.  It is a defense to prosecution
   8-21  for an offense under this chapter that the conduct was authorized
   8-22  under Article 179h, Revised Statutes.
   8-23        SECTION 4.  (a)  This Act takes effect September 1, 1993.
   8-24        (b)  The change in law made by this Act applies to a criminal
   8-25  action pending, on appeal, or commenced on or after the effective
   8-26  date of this Act, whether the action is for an offense committed
   8-27  before, on, or after the effective date.  The change in law made by
    9-1  this Act does not affect a final conviction that exists on the
    9-2  effective date of this Act.
    9-3        SECTION 5.  The importance of this legislation and the
    9-4  crowded condition of the calendars in both houses create an
    9-5  emergency   and   an   imperative   public   necessity   that   the
    9-6  constitutional rule requiring bills to be read on three several
    9-7  days in each house be suspended, and this rule is hereby suspended.