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.