79R1914 MSE-D

By:  Krusee                                                       H.B. No. 541

relating to the types of nonprofit organizations that may conduct raffles. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2002.003(a), Occupations Code, is amended to read as follows: (a) An organization incorporated or holding a certificate of authority under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) is a qualified nonprofit organization for the purposes of this chapter if the organization: (1) does not distribute any of its income to its members, officers, or governing body, other than as reasonable compensation for services; (2) has existed for the three preceding years [and during those years has had a governing body or officers elected by a vote of its members or by a vote of delegates elected by its members]; (3) 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; (4) qualifies for and has obtained an exemption from federal income tax from the Internal Revenue Service under Section 501(c), Internal Revenue Code of 1986; and (5) does not have or recognize any local chapter, affiliate, unit, or subsidiary organization in this state. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.