THE ATTORNEY GENERAL
OF TEXAS
May 18, 1990
Dr. W. N. Kirby Opinion No. JM-1176
Commissioner of Education
Texas Education Agency Re: Authority of an indepen-
1701 North Congress Ave. dent school district to conduct
Austin, Texas 78701-1494 a raffle (RQ-1949)
Dear Dr.,Rirby:
You ask whether an independent school district is
authorized to organize and conduct a raffle under the
Charitable Raffle Enabling Act (hereinafter the act) ,
article 179f, V.T.C.S., and alternatively, if an affiliated
organization, such as a parent-teacher association, can do
so.
The act was passed pursuant to a recent amendment to
article III, section 47, of the Texas Constitution. That
constitutional amendment, adopted by the state electorate on
November 7, 1909, authorizes the legislature to permit
certain charitable organizations to conduct raffles for
charitable purposes. Tex . Const. art. III, 0 47(d). The
constitutional provision requires that all proceeds from the
sale of raffle tickets be spent for the organization's
charitable purposes. It also requires that only members
of the charitable organization may conduct, promote, and
administer the raffle.
The constitution expressly names certain types of
organizations as being authorized to conduct charitable
raffles. Those are Ha qualified religious society,
qualified volunteer fire department, qualified volunteer
emergency medical service, or qualified nonprofit organiza-
tions.* a
Notably, the constitutional list contains no public
corporations or political subdivisions. We believe that
independent school districts are not authorized to conduct
charitable raffles.
P- 6200
Dr. W. N. Kirby - Page 2 (JM-1176)
The act further defines the qualified organizations
that are permitted to conduct raffles. V.T.C.S. art. 179f,
§§ 2, 6. Because it is obvious that an independent school
district is not included in any of the first three types of
qualified organizations, we look only to section 6 of the
act, which defines "qualified nonprofit organizations." The
common thread among these organizations is that they must
qualify for and have obtained an exemption from federal
income tax under section 501(c) of the Internal Revenue
Code. UL 5 6(a)(4), (b)(4), (c)(4).
Section 501(c) of the Internal Revenue Code grants
tax exempt status to, among others, certain corporations,
civic leagues, fraternal societies, cemetery companies, and
trusts. 26 U.S.C. 5 501(c). Again, there are no political
subdivisions or public corporations among those organiza-
tions that are granted tax exempt status. Therefore, we
believe that independent school districts are not authorized
to conduct charitable raffles under the Charitable Raffle
Enabling Act.
We cannot finally answer your alternate question,
whether a parent-teacher association is authorized to
conduct a raffle under the act, because we have no facts
about particular organizations. However, we note that there
is express indication of legislative intent that parent-
teacher associations are included in the act. The sponsor
of both the joint resolution proposing the constitutional
amendment and the act itself specifically mentioned parent-
teacher associations as being one kind of organization that
the act would permit to hold raffles. The Texas Charitable
Raffle Enabling Act: Bearings on Tex. H.J.R. 32 and H.B.
240 before the House Comm. on State Affairs, 71st Deg.
(March 13, 1989) (tape available at House Technical
Services).
As you note in your letter, the act includes the
enhancement of the opportunity for educational advancement
as a charitable purpose for which raffles may be held.
V.T.C.S. art. 179(f), 5 2(a)(2)(A). Weay;zztthat enhance-
ment of educational opportunities is one of the
purposes of a parent-teacher association. A PTA may qualify
under the terms of section 6 of the act, if it meets not
only the charitable purposes test but also meets the
qualifications, including tax exempt status, mandated in
section 6.
p. 6201
Dr. W. N. Kirby - Page 3 (JM-1176)
P
SUMMARY
Independent school districts are not
qualified to hold charitable raffles under
the Charitable Raffle Enabling Act, article
179f, V.T.C.S. A parent-teacher association
may be qualified to hold such raffles if it
meets the requirements of the act.
~qy7$y+
Attorney General of Texas
MARY KELLER
First Assistant Attorney General
JUDGE ZOLLIE STEARLRY
Special Assistant Attorney General
RENEA HICKS
Special Assistant Attorney General
RICK GILPIN
Chairman, Opinion Committee
Prepared by Karen C. Gladney
Assistant Attorney General
p. 6202