80R87 BEF-D

By: Chavez H.B. No. 653

A BILL TO BE ENTITLED

AN ACT

relating to charitable poker runs that benefit certain nonprofit organizations; providing a penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 13, Occupations Code, is amended by adding Chapter 2004 to read as follows: CHAPTER 2004. CHARITABLE POKER RUNS

Sec. 2004.001. LEGISLATIVE FINDING. The legislature finds that a charitable poker run conducted in accordance with this chapter is a raffle authorized by Section 47(d), Article III, Texas Constitution.

Sec. 2004.002. DEFINITIONS. In this chapter:

(1) "Charitable purposes" has the meaning assigned by Section 2002.002.

(2) "Qualified nonprofit organization" means an organization organized for charitable or social purposes that does not distribute any of its income to its members, officers, or governing body, other than as reasonable compensation for services.

Sec. 2004.003. CHARITABLE POKER RUN AUTHORIZED. A qualified nonprofit organization may conduct a charitable poker run in accordance with this chapter.

Sec. 2004.004. CONDUCT OF POKER RUN. A charitable poker run shall be conducted, promoted, and administered exclusively by members of a qualified nonprofit organization.

Sec. 2004.005. USE OF PROCEEDS. (a) Except as provided by Subsection (b), all proceeds from the sale of tickets to participate in a charitable poker run must be used for the charitable purposes of the qualified nonprofit organization.

(b) A qualified nonprofit organization conducting a charitable poker run may use a portion of the proceeds from the sale of tickets to participate in the poker run, not to exceed ___ percent of those proceeds, to provide prizes, including cash prizes, to winners of the poker run.

(c) For purposes of this section, a qualified nonprofit organization is considered to use the proceeds from the sale of tickets to participate in a charitable poker run for the organization's charitable purposes if not later than the 10th day after the poker run is completed the organization donates the proceeds to another qualified nonprofit organization that agrees to use the proceeds exclusively for the charitable purposes of the other organization.

(d) An organization to which proceeds are donated as described by Subsection (c) shall:

(1) use the proceeds for the charitable purposes of the organization not later than the second anniversary of the date the organization receives the proceeds; and

(2) maintain a record of the receipt of the proceeds and of the charitable purposes for which the proceeds are used for not less than four years after the date on which the organization receives the proceeds.

Sec. 2004.006. REQUIREMENTS FOR CHARITABLE POKER RUN. A charitable poker run held under this chapter must:

(1) require a participant to purchase a ticket to participate in the event;

(2) require each participant to go to at least five different locations along a prescribed course;

(3) require each participant to collect a playing card drawn at random at each location or collect not less than five playing cards after visiting all the locations on the course; and

(4) determine the game winners by ranking the poker hands formed by each participant's playing cards according to the rules commonly used to rank poker hands or similar rules specified by the organization conducting the poker run.

Sec. 2004.007. INJUNCTIVE ACTION AGAINST UNAUTHORIZED POKER RUN. (a) A county attorney, district attorney, criminal district attorney, or the attorney general may bring an action in county or district court for a permanent or temporary injunction or a temporary restraining order prohibiting conduct involving a charitable poker run that:

(1) violates or threatens to violate state law relating to gambling; and

(2) is not being conducted in accordance with this chapter.

(b) Venue for an action under this section is in the county in which the conduct occurs or in which a defendant in the action resides.

Sec. 2004.008. CRIMINAL PENALTY. (a) A person commits an offense if the person knowingly violates Section 2004.005.

(b) An offense under this section is a Class B misdemeanor punishable by a fine in an amount not to exceed the amount of the proceeds involved in the offense.

SECTION 2. Section 47.02(c), Penal Code, is amended to read as follows:

(c) It is a defense to prosecution under this section that the actor reasonably believed that the conduct:

(1) was permitted under Chapter 2001, Occupations Code;

(2) was permitted under Chapter 2002, Occupations Code;

(3) consisted entirely of participation in the state lottery authorized by the State Lottery Act (Chapter 466, Government Code);

(4) was permitted under the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes); [or]

(5) consisted entirely of participation in a drawing for the opportunity to participate in a hunting, fishing, or other recreational event conducted by the Parks and Wildlife Department; or

(6) was permitted under Chapter 2004, Occupations Code.

SECTION 3. Section 47.09(a), Penal Code, is amended to read as follows:

(a) It is a defense to prosecution under this chapter that the conduct:

(1) was authorized under:

(A) Chapter 2001, Occupations Code;

(B) Chapter 2002, Occupations Code; [or]

(C) the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes); or

(D) Chapter 2004, Occupations Code;

(2) consisted entirely of participation in the state lottery authorized by Chapter 466, Government Code; or

(3) was a necessary incident to the operation of the state lottery and was directly or indirectly authorized by:

(A) Chapter 466, Government Code;

(B) the lottery division of the Texas Lottery Commission;

(C) the Texas Lottery Commission; or

(D) the director of the lottery division of the Texas Lottery Commission.

SECTION 4. (a) The changes in law made by this Act to Sections 47.02(c) and 47.09(a), Penal Code, do not apply to an offense committed before the effective date of this Act. For purposes of this section, an offense is committed before the effective date of this Act if any element of the offense occurs before that date.

(b) An offense committed before the effective date of this Act is governed by the law as it existed on the date on which the offense was committed, and the former law is continued in effect for that purpose.

SECTION 5. This Act takes effect September 1, 2007.