79R1914 MSE-D

By:  Krusee                                                       H.B. No. 541



A BILL TO BE ENTITLED

AN ACT

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.