THE ATTORNEY GESERAI. OF TEXa-iS

Honorable Mike Driscoll Harris County Attorney 1001 Preston, Suite 634 Houston, Texas 77002

DearMr. Driscoll: Opinion No. m-1277
Re: What constitutes a @*bond" for purposes of article 179f, V.T.C.S., which regulates charitable raffles, and related questions (RQ-2108)

Article 179f, V.T.C.S., provides for the conduct of raffles1 by certain charitable organizations. Article 179f was adopted in 1989; tobe effective January 1, 1990. Acts 1989, 71st Leg., ch. 957, 51,at 4022.2 Section 3of article 179f imposes various conditions on the conduct of raffles under the article. You ask about the scope of the language relating to the posting ofbond in subsection (j)of section 3,which provides:

A raffle is not authorized under this article unless the organization has in its possession or ownership the prize that is to be offered inthe raffle orposts b& with

1. Section 2(a)(8) of article 179f provides: 'Raffle'means the awarding of one ormore prizes by chance at a single occasion among a single pool or group ofpersons who have paid orpromised a thing of value fora ticket that represents a chance towin a prize.
2. The effectiveness of article 179fwas contingent on the adoption of subsection (d)of section 47 of article 111 of the Texas Constitution, authorizing the legislature to provide for certain charitable raffles. The amendment adding subsection (d) to article III, section 47, was approved by thevoters onNovember 7, 1989.

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the county clerk of the county inwhich the raffle is tobeheld forthe full amount of themoney value of such aprize. (Emphasis added.)
You note that article 179f does not define the term O1bondVO

and ask first "what qualifies as a *bond"' for purposes of subsection (j), section 3. We can not here provide an all-inclusive definition of the term "bond" as it isused in subsection (j), where the legislature has not done so. In the brief you submitted with your request, you consider inconnection with your first question onlywhether abond issued by a surety company authorized to do business in this state would qualify as a l@bondV* under subsection (j). Wewill limit our response toyour first question to that issue.
You suggest that abond executed by a surety company authorized todobusiness in this state, asprovided for in article 7:19-l ofthe Insurance Code, would, ifexecuted for "the full amount of themoney value of [the]prize" in accordance with subsection (j),qualify as abond under that subsection. We agree. Article 7.19-1 of the Insurance Code on its faceprovides that whenever anybond isrequired by lawto bemade, such bondmay be executed by. a surety company duly qualified to do business in this state and that allpublic officers shall accept such bond as complying with the requirements of such laws. Thus a bond executed by a surety company authorized to dobusiness in this state in the amount required by section 3(j) of article 179f would meet the requirement of a "bond" under that subsection.
You next ask whether the county clerk must accept a "cashbond" under article 179f. You note that the existing statutes governing the county clerk's handling of cash sums tobe held by the clerk would not apply to the clerk's handling of cash amounts deposited with the clerk inconnection with the bond requirement of article 179f. M Local Gov't Code §§ 117.052 (clerk toplace money deposited in court pending result of legal proceeding indepository trust fund account inname of clerk), 117.053 (any payment by clerk from trust fund account must be made under order of court inwhich fundswere deposited). You argue that the absence of statutory provision for the county clerk's handling of a "cash bond" placed with the clerk under article 179f, section 3(j), indicates that the legislature did not contemplate that a clerk must accept a "cash bond" in satisfaction of the bond requirement of that provision.

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The term OObondO1 ordinarily refers to an "obligatory instrument in writing." m 10 Tex. 

### Jur.3d yndertakinas § 1,and authorities cited therein.

### w

merous statutory bond requirements, the legislature has specified that cash bonds are acceptable. See. e.a V.T.C.S. art. 179d, 5 13a(b)(manufacturer of bingo equipmen; must give Alcoholic Beverage Commission 'cash bond" or bond issued by surety company): Tax Code 5 151.253 (security for sales tax permit application may be %ash bond" or bond from surety company): Eft Attorney General Opinion JM-215 (1984) (Department ofHighways and Public Transportation could not place limits on type of bond acceptable under article 6686(a)(7), V.T.C.S., vehicle dealers).3 which setsbond requirements for motor

We think that ifthe legislature had intended the term *'bond"asused inarticle 179f to include a "cash bond," it would have given aclearer indication of such intent than we find in the sparse language of section 3(j), particularly as there are no statutory procedures for the county clerk's handling of the cash involved. Ifthe county clerk, whose duties are ministerial in nature,4 had been intended to accept andhandle cash bonds.under article 179f,we think the legislature would have established procedures for his doing so. As a practical matter, if an article 179f organization had themonetary value of the prize available incash, itwould not ordinarily need topost abond -- it could simply acquire the prize with suchmoney. In response toyour second,guestion, it isour opinion that the county clerk may not accept a "cashbond" insatisfaction of the bond requirement of section 3(j) of article 179f.
you ask nextwhat the term "postn bond insection 3(j) means. Webster's defines the term "postUwhen used with the word "bond" tomean "to furnish . . .to the proper authority." Webster#s Third New Int'l Dictionarv 1771 f4th ed. 1976). We think the requirement 3(j) is met when an acceptable of nposginglQin‘ section bond is furnished, or

3. The bond requirement in

_ . _ article 6686(a)(7) was removed at tne next leglslacive session. Acts 1985, 69th Leg., ch. 465, 55, at 1635. 4. See. e.a, District Law 0 10.6 ixxti Pr%~ county and Svecial 1989) and authorities cited therein.

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delivered, to the county clerk. See also 10Tex. Jur. 3d

Undertakinqg 59 (bond must be "delivered" to be effective).
You ask lastwhether the county clerk must record such bond, and, ifso, inwhat county record the bond would be filed. The only provision we find that might arguably authorize the recording of an article 179f raffle bond is section 12.001(a) of the Property Code, which provides:

An instrument concerning real or personal property may be recorded if ithas been acknowledged, sworn towith aproper jurat, or proved according to law. The ordinary meaning of the term 80instrument18 is quite broad. Black's defines 80instrument11as *Iaformal or legal document inwriting, such as acontract, deed, will, bond, or lease." Black's Law Dictionary 719 (5thed. 1979). But even if an article 179fbondmight be an 01instrument,81as that term isused in section 12.001(a), we do **not** think it would be one 'concerning real orpersonal property" within themeaning of that provision. Such bond isrequired under section 3(j) of article 179f onlywhen the organization conducting the raffle does nothave the prize in itspossession. Therefore such **bond**would not ordinarily Voncernq' specific, identified property of the sortwhich we think a section 12.001(a) instrument was intended to relate to. See (formerV.T.C.S. art. 6626(a)(provision codified without substantive change as section 12.001(a) of the Property Code,which enumerated as instruments subject to recording "deeds,mortgages, **conveyances,** deeds of trust, bonds for title, covenants, defeasances," etc.).
In response to your lastquestion, it isour opinion that the county clerk is not required to record an article 179f raffle bond.
SUMMARY

A bond issued by a surety company authorized to do business inTexas under Insurance Code article 7.19-1, ifexecuted for the full amount of the money value of the raffle prize, would satisfy thebond requirement of section 3(j) of article 179f,which relates to charitable raffles.

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The county clerk may not accept a "cash bond" in fulfillment of thebond requirement of subsection (j). The requirement insubsection (j)that an organization "post" bond is met when an acceptable bond is furnished ordelivered to the county clerk. The county clerk isnot required to record an article 179f bond. Very truly y s, 

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JIM MATTOX Attorney General of Texas
MARYKELLER First Assistant Attorney General

mu MCCREARY Executive Assistant Attorney General
JUDGE ZOLLIE STEAKLEY Special Assistant Attorney General
RENEA HICKS Special Assistant Attorney General
RICK GILPIN Chairman, Opinion Committee Prepared byWilliam Walker Assistant Attorney General

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