By:  Wentworth                                                    S.B. No. 766


A BILL TO BE ENTITLED

AN ACT

relating to allowing a lodge or other local organization affiliated 
with a grand lodge or similar charitable or benevolent institution 
or order incorporated under state law to hold a charitable raffle.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2002.003, Occupations Code, is amended 
by adding Subsection (b-1) to read as follows:
	(b-1)  An organization that is formally recognized as and 
that operates as a local chapter, affiliate, unit, or subordinate 
lodge of a grand lodge or other institution or order incorporated 
under Title 32, Revised Statutes, as authorized by Article 1399, 
Revised Statutes, is a qualified nonprofit organization if:
		(1)  neither the local organization nor the 
incorporated grand lodge or other institution or order distributes 
any of its income to its members, officers, or governing body, other 
than as reasonable compensation for services;
		(2)  the local organization has existed for the three 
preceding years and during those years:
			(A)  has had a governing body or officers elected 
by a vote of its members or by a vote of delegates elected by its 
members; or
			(B)  has been formally recognized as a local 
chapter, affiliate, unit, or subordinate lodge of the grand lodge 
or other institution or order;
		(3)  neither the local organization nor the 
incorporated grand lodge or other institution or order:
			(A)  devotes a substantial part of its activities 
to attempting to influence legislation; or
			(B)  participates or intervenes 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; and
		(4)  either the local organization or the incorporated 
grand lodge or other institution or order 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, or other applicable provision.
	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.