By: Geren (Senate Sponsor - Harris) H.B. No. 1474
(In the Senate - Received from the House May 4, 2009;
May 6, 2009, read first time and referred to Committee on State
Affairs; May 15, 2009, reported favorably by the following vote:
Yeas 9, Nays 0; May 15, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the operation and regulation of charitable bingo and
the use of bingo proceeds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2001.002, Occupations Code, is amended
by adding Subdivisions (4-a), (8-a), and (25-a) and amending
Subdivision (6) to read as follows:
(4-a) "Bingo chairperson" means an officer or member
of the board of directors of a licensed authorized organization who
is designated in writing by the organization as responsible for
overseeing the organization's bingo activities and reporting to the
membership relating to those activities.
(6) "Bingo occasion" means a single gathering or
session at which a bingo game or [all activities incident to the
conduct of] a series of bingo games, including selling and
redeeming pull-tab bingo tickets, are conducted on the day and at
the times listed on the license issued to [by] a licensed authorized
organization[, including the organization's licensed times and any
preparatory or concluding activities incident to the conduct of
bingo].
(8-a) "Crime of moral turpitude" means:
(A) a felony;
(B) a gambling offense;
(C) criminal fraud;
(D) forgery;
(E) theft;
(F) an offense that involves filing false
information with a governmental agency; or
(G) any offense that:
(i) is classified in this state as a Class A
misdemeanor; and
(ii) puts the honesty and integrity of the
individual who committed the offense in question.
(25-a) "Regular license" means a license to conduct
bingo that is issued by the commission and that expires on the first
or second anniversary of the date of issuance unless revoked or
suspended before that date by the commission. The term includes an
annual license.
SECTION 2. Section 2001.059, Occupations Code, is amended
by amending Subsection (a) and adding Subsection (g) to read as
follows:
(a) An officer, bingo chairperson, or authorized
representative of a license holder or an attorney, accountant, or
bookkeeper employed or retained by a license holder [A person] may
request from the commission an advisory opinion regarding
compliance with this chapter and the rules of the commission.
(g) The commission may refuse to issue an advisory opinion
under this section on a matter that the commission knows to be in
active litigation.
SECTION 3. Subchapter B, Chapter 2001, Occupations Code, is
amended by adding Section 2001.060 to read as follows:
Sec. 2001.060. REPORTING. (a) On or before June 1 of each
even-numbered year, the commission shall prepare and deliver to the
governor, the lieutenant governor, the speaker of the house of
representatives, and the chairs of the standing committees of the
senate and house of representatives with primary jurisdiction over
charitable bingo a report stating for each of the preceding two
calendar years:
(1) the total amount of adjusted gross receipts
reported by licensed authorized organizations from their bingo
operations;
(2) the total amount of net proceeds reported by
licensed authorized organizations from their bingo operations; and
(3) a comparison of the amounts reported under
Subdivisions (1) and (2), including the percentage that the net
proceeds represents of the adjusted gross receipts.
(b) For purposes of Subsection (a), "adjusted gross
receipts" means the amount remaining after deducting prizes paid,
excluding prize fees collected from bingo players.
(c) For purposes of Subsection (a), the commission shall
determine the total amount of net proceeds in a manner that does not
reduce gross receipts by the amount of rent paid for the rental of
bingo premises by a licensed authorized organization to another
licensed authorized organization if the other organization pays
rent for the premises to a licensed commercial lessor.
SECTION 4. Section 2001.101(a), Occupations Code, is
amended to read as follows:
(a) The commission may license a person who is an authorized
organization eligible for a license to conduct bingo if the person
is:
(1) a religious society that has existed in this state
for at least three [eight] years;
(2) a nonprofit organization:
(A) whose predominant activities are for the
support of medical research or treatment programs; and
(B) that for at least three years:
(i) must have had a governing body or
officers elected by a vote of members or by a vote of delegates
elected by the members; or
(ii) must have been affiliated with a state
or national organization organized to perform the same purposes as
the nonprofit organization;
(3) a fraternal organization;
(4) a veterans organization that has existed in this
state for at least three years; [or]
(5) a volunteer fire department that has existed in
this state for at least three years; or
(6) a volunteer emergency medical services provider
that has existed in this state for at least three years.
SECTION 5. Sections 2001.102(a) and (b), Occupations Code,
are amended to read as follows:
(a) An applicant for a license to conduct bingo must file
with the commission an [a written, executed, and verified]
application on a form prescribed by the commission.
(b) The application must include:
(1) the name and address of the applicant;
(2) the names and addresses of the applicant's
officers and directors;
(3) the address of the premises where and the time when
the applicant intends to conduct bingo under the license sought;
(4) the name and address of the licensed commercial
lessor of the premises, if the applicant intends to lease premises
to conduct bingo from a person other than an authorized
organization;
(5) [the capacity or potential capacity for public
assembly in any premises owned or occupied by the applicant;
[(6) the amount of rent to be paid or other
consideration to be given, directly or indirectly, for each
occasion for use of the premises of another licensed authorized
organization or for use of the premises of a licensed commercial
lessor;
[(7) all other items of expense intended to be
incurred or paid in connection with conducting, promoting, and
administering bingo and the names and addresses of the persons to
whom, and the purposes for which, the expenses are to be paid;
[(8) the specific purposes to and the manner in which
the net proceeds of bingo are to be devoted;
[(9)] a statement that the net proceeds of bingo will
go to one or more of the authorized charitable purposes under this
chapter;
(6) [(10)] a designation of the applicant
organization's bingo chairperson [one or more active members of the
applicant organization] under whom bingo will be conducted
accompanied by a statement signed by the chairperson [each
designated member] stating that the chairperson [member] will be
responsible for the conduct of bingo under the terms of the license
and this chapter;
(7) [(11) a statement that a copy of the application
has been sent to the appropriate governing body;
[(12) the name and address of each person who will work
at the proposed bingo occasion, the nature of the work to be
performed, and a statement as to whether the person has been
convicted of a felony, a gambling offense, criminal fraud, or a
crime of moral turpitude; and
[(13)] sufficient facts relating to the applicant's
incorporation and organization to enable the commission to
determine whether the applicant is an authorized organization;
(8) a copy of the applicant organization's most
recently filed Internal Revenue Service Form 990, if applicable;
(9) a letter of good standing from the applicant
organization's parent organization, if the organization receives
an exemption from federal income taxes as a member of a group of
organizations;
(10) copies of the applicant organization's organizing
instruments, including any bylaws, constitution, charter, and
articles of incorporation;
(11) verification of the applicant organization's good
standing with the secretary of state if the organization is
organized under the law of this state; and
(12) information necessary to conduct criminal
background checks on the applicant organization's officers and
directors.
SECTION 6. Section 2001.103(e), Occupations Code, is
amended to read as follows:
(e) Notwithstanding Subsection (c), an authorized
organization that holds an annual [a regular] license to conduct
bingo may receive not more than 24 [12] temporary licenses during
the 12-month period following the issuance or renewal of the
license. The holder of a license that is effective for two years
may receive not more than 24 temporary licenses for each 12-month
period that ends on an anniversary of the date the license was
issued or renewed.
SECTION 7. Section 2001.104, Occupations Code, is amended
by amending Subsections (b) and (d) and adding Subsection (e) to
read as follows:
(b) The commission by rule shall establish procedures to
determine if the appropriate license fee [At the end of the license
period the license holder and the commission shall compute the
amount of gross receipts actually recorded during the license
period to determine if the appropriate fee amount] was paid.
(d) An applicant shall pay the fees established under
Subsection (a) annually. An applicant for a license or renewal of a
license may obtain a license that is effective for two years by
paying an amount equal to two times the amount of the annual license
fee, or by paying the license fee for the first year at the time the
applicant submits the application and the fee for the second year
not later than the first anniversary of the date the license becomes
effective [plus $25].
(e) A licensed authorized organization may pay in advance,
or establish an escrow account with the commission to cover, fees
assessed under this chapter for the amendment of a license or
issuance of a temporary license.
SECTION 8. Section 2001.105(b), Occupations Code, is
amended to read as follows:
(b) The commission may not issue a license to an authorized
organization to conduct bingo if an officer or member of the board
of directors of the organization has been convicted of a felony,
criminal fraud, a gambling or gambling-related offense, or a crime
of moral turpitude if less than 10 years has elapsed since the
termination of a sentence, parole, mandatory supervision, or
community supervision served for the offense.
SECTION 9. Section 2001.106, Occupations Code, is amended
to read as follows:
Sec. 2001.106. FORM AND CONTENTS OF LICENSE. A license to
conduct bingo must include:
(1) the name and address of the license holder;
(2) the name and address of the bingo chairperson
[names and addresses of the member or members] of the license holder
under whom the bingo will be conducted; and
(3) the address [an indication] of the premises where
and the time when bingo is to be conducted[;
[(4) the specific purposes to which the net proceeds
of bingo are to be devoted; and
[(5) a statement of whether a prize is to be offered
and the amount of any authorized prize].
SECTION 10. Section 2001.107(a), Occupations Code, is
amended to read as follows:
(a) Unless the organization is a member of a unit that
designates a unit manager under Section 2001.437, the bingo
chairperson for a licensed authorized organization [The person
designated under Section 2001.102(b)(10)] shall complete the
[eight hours of] training required [as provided] by commission
rule. For a unit operating under Subchapter I-1, the unit manager
shall complete the training if the unit designates a unit manager
under Section 2001.437.
SECTION 11. Sections 2001.108(b) and (c), Occupations Code,
are amended to read as follows:
(b) If the other organization ceased or will cease
conducting bingo for the reason stated in Subsection (a)(1), the
commission must act on the joint application filed under Subsection
(a) not later than the 14th [10th] day after the date the
application is filed with the commission.
(c) If the other organization ceased or will cease
conducting bingo for the reason stated in Subsection (a)(2), the
commission must act on the joint application filed under Subsection
(a) not later than the 14th [10th] day after the date the
application is filed with the commission or the date on which the
termination takes effect, whichever is later.
SECTION 12. Sections 2001.158(b) and (d), Occupations Code,
are amended to read as follows:
(b) The commission by rule shall establish procedures for
determining if the appropriate license fee [At the end of the
license period, the license holder and the commission shall compute
the amount of the gross rentals actually recorded during the
license period to determine if the appropriate fee amount] was
paid.
(d) An applicant for a commercial lessor license shall pay
the fees established under Subsection (a) annually. An applicant
for a license or renewal of a license may obtain a license that is
effective for two years by paying an amount equal to two times the
amount of the annual license fee, or by paying the license fee for
the first year at the time the applicant submits the application and
the license fee for the second year not later than the first
anniversary of the date the license becomes effective [plus $25].
SECTION 13. The heading to Section 2001.159, Occupations
Code, is amended to read as follows:
Sec. 2001.159. LICENSE ISSUANCE OR RENEWAL.
SECTION 14. Section 2001.159(a), Occupations Code, is
amended to read as follows:
(a) The commission shall issue or renew a commercial lessor
license if the commission determines that:
(1) the applicant has paid the license fee as provided
by Section 2001.158;
(2) the applicant qualifies to be licensed under this
chapter;
(3) [the applicant satisfies the requirements for a
commercial lessor under this subchapter;
[(4)] the rent to be charged is fair and reasonable
[and will be charged and collected in compliance with Section
2001.406];
(4) [(5)] there is no diversion of the funds of the
proposed lessee from the lawful purposes under this chapter;
(5) [(6)] the person whose signature or name appears
in the application is in all respects the real party in interest and
is not an undisclosed agent or trustee for the real party in
interest; and
(6) [(7)] the applicant will lease the premises for
the conduct of bingo in accordance with this chapter.
SECTION 15. Section 2001.203, Occupations Code, is amended
to read as follows:
Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An
applicant for a manufacturer's license must file with the
commission an [a written verified] application on a form prescribed
by the commission.
(b) The application must include:
(1) the name and address of the applicant and the name
and address of each of its locations where bingo supplies or
equipment are manufactured;
(2) a full description of each type of bingo supply or
equipment that the applicant intends to manufacture or market in
this state and the brand name, if any, under which each item will be
sold;
(3) [the name and address of the applicant and] if the
applicant:
(A) is not a corporation, the name and home
address of each owner; or
(B) is a corporation, the name and home address
of each officer and director and each person owning more than 10
percent [or more] of a class of stock in the corporation;
(4) if the applicant is a foreign corporation or other
foreign legal entity, the name, business name and address, and
[home] address of its registered agent for service in this state;
(5) the name and address of each manufacturer,
supplier, and distributor in which the applicant has a financial
interest and the details of that financial interest, including any
indebtedness between the applicant and the manufacturer, supplier,
or distributor of $5,000 [$500] or more;
(6) information regarding whether the applicant or a
person required to be named in the application has been convicted in
this state or another state of a felony, criminal fraud, a gambling
or gambling-related offense, or a crime of moral turpitude;
(7) information regarding whether the applicant or a
person required to be named in the application is an owner, officer,
director, shareholder, agent, or employee of a licensed commercial
lessor or conducts, promotes, administers, or assists in
conducting, promoting, or administering bingo for which a license
is required by this chapter;
(8) information regarding whether the applicant or a
person required to be named in the application is a public officer
or public employee in this state;
(9) the name of each state in which the applicant is or
has been licensed to manufacture, distribute, or supply bingo
equipment or supplies, each license number, the period of time
licensed under each license, and whether a license has been
revoked, suspended, withdrawn, canceled, or surrendered and, if so,
the reasons for the action taken;
(10) information regarding whether the applicant or a
person required to be named in the application is or has been a
professional gambler or gambling promoter;
(11) the names and addresses of each manufacturer,
supplier, or distributor of bingo equipment or supplies in which
the applicant or a person required to be named in the application is
an owner, officer, shareholder, director, agent, or employee; and
(12) any other information the commission requests.
SECTION 16. Section 2001.208(b), Occupations Code, is
amended to read as follows:
(b) The application must include:
(1) the full name and address of the applicant;
(2) the name and address of each location operated by
the distributor from which bingo supplies or equipment are
distributed or at which bingo supplies or equipment are stored;
(3) if a noncorporate distributor, the name and home
address of each owner;
(4) if a corporate distributor, the name and home
address of each officer or director and of each person owning more
than [at least] 10 percent of a class of stock in the corporation;
(5) if a foreign corporation or other foreign legal
entity, the name, business name and address, and [home] address of
its registered agent for service in this state;
(6) a full description of the type of bingo supply or
equipment that the applicant intends to store or distribute in this
state and the name of the manufacturer of each item and the brand
name, if any, under which the item will be sold or marketed;
(7) the name and address of a manufacturer, supplier,
or distributor in which the applicant has a financial interest and
the details of that financial interest, including an indebtedness
between the applicant and the manufacturer, supplier, or
distributor of $5,000 [$500] or more;
(8) information regarding whether the applicant or a
person required to be named in the application has been convicted in
this state or another state of a felony, criminal fraud, a gambling
or gambling-related offense, or a crime of moral turpitude;
(9) information regarding whether the applicant or a
person required to be named in the application is an owner, officer,
director, shareholder, agent, or employee of a licensed commercial
lessor or conducts, promotes, administers, or assists in
conducting, promoting, or administering bingo for which a license
is required under this chapter;
(10) information regarding whether the applicant or a
person required to be named in the application is a public officer
or public employee in this state;
(11) the name of each state in which the applicant is
or has been licensed to manufacture, distribute, or supply bingo
equipment or supplies, each license number, the period of time
licensed under each license, and whether a license was revoked,
suspended, withdrawn, canceled, or surrendered and, if so, the
reasons for the action taken;
(12) information regarding whether the applicant or a
person required to be named in the application is or has been a
professional gambler or gambling promoter;
(13) the name and address of each manufacturer,
supplier, or distributor of bingo equipment or supplies in which
the applicant or a person required to be named in the application is
an owner, officer, shareholder, director, agent, or employee; and
(14) any other information the commission requests.
SECTION 17. Sections 2001.211(b), (c), and (d), Occupations
Code, are amended to read as follows:
(b) If a change occurs after issuance of a manufacturer's or
distributor's license, the license holder shall report the change
to the commission not later than the 14th [10th] day after the date
of the change.
(c) Not later than the 14th [10th] day after the date of the
change, a license holder shall notify the commission of a change in:
(1) the license holder's organization, structure, or
mode of operation;
(2) the identity of persons named or required to be
named in the application and the nature or extent of those persons'
interest; or
(3) any other facts stated in the application.
(d) Failure to give a notice required under this section is
cause for:
(1) denial, suspension, or revocation of a license; or
(2) imposition of an administrative penalty or other
administrative action.
SECTION 18. Subchapter G, Chapter 2001, Occupations Code,
is amended by adding Section 2001.3025 to read as follows:
Sec. 2001.3025. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION. The commission is entitled to conduct an
investigation of and is entitled to obtain criminal history record
information maintained by the Department of Public Safety, the
Federal Bureau of Investigation identification division, or
another law enforcement agency to assist in the investigation of:
(1) an applicant for or holder of a license issued
under this chapter;
(2) a person required to be named in a license
application; or
(3) an employee or other person who works or will work
for a license holder and who is required by another provision of
this chapter to undergo a criminal background check.
SECTION 19. Section 2001.306(c), Occupations Code, is
amended to read as follows:
(c) The holder of a license to conduct bingo may not change
the location at which it conducts bingo until it has:
(1) returned [surrendered] its original license if
available, or certified that the license is not available; and
(2) received an amended license for the new location.
SECTION 20. Section 2001.313, Occupations Code, is amended
by amending Subsections (a), (b), (d), (e), (f), and (g) and adding
Subsections (b-1), (h), and (i) to read as follows:
(a) To minimize duplicate criminal history background
checks by the commission and the costs incurred by organizations
and individuals, the commission shall maintain a registry of
individuals [persons] on whom the commission has conducted a
criminal history background check and who are approved to be
involved in the conduct of bingo or to act as a bingo operator.
(b) An individual [A person] listed in the registry may be
involved in the conduct of bingo or act as an operator at any
location at which bingo is lawfully conducted.
(b-1) An individual's listing on the registry expires on the
third anniversary of the date the individual was initially included
on the registry. The individual may renew the listing before the
expiration date. If the individual fails to renew the listing, the
commission shall remove the individual's name from the registry.
An individual whose name is removed from the registry may reapply
for listing on the registry.
(d) An individual [A person] who is not listed on the
registry established by this section may not act, and a licensed
authorized organization may not allow the individual to act, as an
operator, manager, cashier, usher, caller, bingo chairperson,
bookkeeper, or salesperson for the [a] licensed authorized
organization.
(e) The commission may refuse to add an individual's [a
person's] name to, or remove an individual's [a person's] name from,
the registry established by this section if, after notice and, if
requested by the individual, a hearing, the individual [person] is
finally determined to have:
(1) been convicted of an offense listed under Section
2001.105(b);
(2) converted bingo equipment in a premises to an
improper use;
(3) converted funds that are in, or that should have
been in, the bingo account of any licensed authorized organization;
(4) taken any action, individually or in concert with
another person, that affects the integrity of any bingo game to
which this chapter applies; [or]
(5) acted as an operator, manager, cashier, usher,
caller, bingo chairperson, bookkeeper, or salesperson for a
licensed authorized organization without being listed on the
registry established under this section;
(6) failed to provide a complete application; or
(7) participated in any violation of this chapter or
rules adopted by the commission for the administration of this
chapter.
(f) A licensed authorized organization shall report to the
commission or its designee the discovery of any conduct on the part
of an individual [a person] registered or required to be registered
under this section where there is substantial basis for believing
that the conduct would constitute grounds for removal of the
individual's [person's] name from, or refusal to add the
individual's [person's] name to, the registry established by this
section. A statement made in good faith to the commission or to an
adjudicative body in connection with any such report may not be the
basis for an action for defamation of character.
(g) An individual [A person] who has been finally determined
to have taken action prohibited by Subsection (e)(2), (3), (4),
[or] (5), (6), or (7) cannot be listed on the registry of approved
bingo workers and cannot work as a bingo worker for one year from
the date of such determination. Upon expiration of the one-year
period, the individual [person] is eligible for listing on the
registry provided a licensee subject to this chapter makes
application to list the individual [person]. In such event, the
commission shall take into consideration the facts and
circumstances that occurred that led to the applicable action under
Subsections (e)(2)-(7) [(e)(2)-(5)] in deciding whether to list the
individual [person] on the registry.
(h) A licensed authorized organization may employ an
individual who is not on the registry established by this section as
an operator, manager, cashier, usher, caller, or salesperson on a
provisional basis if the individual is awaiting the results of a
background check by the commission:
(1) for a period not to exceed 14 days if the
individual is a resident of this state; or
(2) for a period to be established by commission rule
if the individual is not a resident of this state.
(i) An individual who has been removed from the registry
under Subsection (e) and has not subsequently been listed on the
registry under Subsection (g) may not be employed under Subsection
(h).
SECTION 21. Section 2001.314, Occupations Code, is amended
to read as follows:
Sec. 2001.314. IDENTIFICATION CARD FOR APPROVED BINGO
WORKER. (a) The commission may require an individual [a person]
listed in the registry maintained under Section 2001.313 to wear an
identification card to identify the individual [person] to license
holders, bingo players, and commission staff while the individual
[person] is on duty during the conduct of bingo. The commission by
rule shall prescribe the form and content of the card.
(b) The commission shall provide the identification card
and shall provide a form to be completed by an individual [a person]
that allows the individual [person] to prepare the identification
card. The commission may [shall] collect a reasonable charge to
cover the cost of providing the card or form.
(c) An identification card required by the commission under
this section to be worn by an individual [a person] while on duty
during the conduct of bingo must be in substantial compliance with
the form and content requirements prescribed by the commission
under this section.
(d) The commission may not require any other individual
[person] licensed under this chapter, or an individual [a person]
acting on the license holder's behalf, to wear an identification
card, whether or not the individual [person] is present or
performing the individual's [person's] duties during the conduct of
bingo.
SECTION 22. Subchapter G, Occupations Code, is amended by
adding Sections 2001.315 and 2001.316 to read as follows:
Sec. 2001.315. LATE LICENSE RENEWAL. (a) A person who
fails to renew the person's license under this chapter before the
date the license expires may renew the license after the expiration
date by:
(1) filing a license renewal application with the
commission not later than the 14th day after the date the license
expires, paying the applicable annual license fee, and paying a
late license renewal fee equal to 10 percent of the annual license
fee; or
(2) filing a license renewal application with the
commission not later than the 60th day after the date the license
expires, paying the applicable annual license fee, and paying a
late license renewal fee equal to 10 percent of the annual license
fee for each 14-day period occurring after the date the license
expires and before the date the renewal application is filed with
the commission.
(b) A person who files a renewal application with the
commission under Subsection (a) may continue to perform the bingo
activities authorized under the license as if the license has not
expired until the license is renewed or renewal of the license is
denied.
(c) To renew a license after the 60th day after the date the
license expires, the person must file an application for an
original license and cease all bingo activities for which the
license is required as of the 61st day after the date the license
expires until a new license is issued.
Sec. 2001.316. DELIVERY OF COMMISSION NOTICE. If notice
under this chapter is required to be given to an authorized
organization, the commission shall send the notice to the bingo
chairperson of the authorized organization and to the appropriate
commercial lessor, if applicable.
SECTION 23. Section 2001.356(c), Occupations Code, is
amended to read as follows:
(c) If a notice of temporary suspension is served on a
license holder, the director of bingo operations shall
simultaneously serve notice of a hearing, to be held not later than
the 14th [10th] day after the date the notice is served, at which
the license holder must show cause why the license should not be
temporarily suspended on the 14th [10th] day after the date the
notice is served. If the license holder does not show cause, the
license is suspended.
SECTION 24. Section 2001.404, Occupations Code, is amended
to read as follows:
Sec. 2001.404. PRINCIPAL LOCATION. A licensed authorized
organization may conduct bingo only in:
(1) the county where the organization has its primary
business office or another county contiguous to that county; or
(2) if the organization does not have a [has no]
business office, in the county of the principal residence of its
chief executive officer, or a contiguous county of this state.
SECTION 25. Section 2001.406(b), Occupations Code, is
amended to read as follows:
(b) Rent for premises used for the conduct of bingo must be
paid in a lump sum. Except as otherwise provided by this section,
the [The] lump sum must include all expenses authorized by Section
2001.458 that are paid by the licensed authorized organization to
the lessor in connection with the use of the premises. A licensed
authorized organization or unit may pay as a separate expense,
based on the percentage of the total area of the lessor's facility
that the organization or unit uses as the bingo premises for the
conduct of bingo, the organization's or unit's pro rata share of:
(1) property taxes on the facility that are paid by the
lessor, excluding any penalties and interest on the taxes;
(2) water, electric, and gas utility expenses for the
facility that are paid by the lessor, excluding any late fees or
other penalties; and
(3) property and casualty insurance premiums for the
facility that are paid by the lessor, excluding any late fees or
other penalties.
SECTION 26. Section 2001.407(a), Occupations Code, is
amended to read as follows:
(a) A licensed manufacturer may furnish, by sale or
otherwise, bingo equipment or supplies to a licensed distributor.
A [Except as provided by Section 2001.257(b), a] licensed
manufacturer may not furnish, by sale or otherwise, bingo equipment
or supplies to a person other than a licensed distributor.
SECTION 27. Section 2001.411, Occupations Code, is amended
by adding Subsection (c-1) to read as follows:
(c-1) An organization may designate as members of the
organization one or more individuals who elect to become members,
including all of the organization's directors, and the designated
members are bona fide members of the organization for purposes of
this section and other law.
SECTION 28. Section 2001.419, Occupations Code, is amended
to read as follows:
Sec. 2001.419. BINGO OCCASIONS. (a) [A bingo occasion
begins when the premises are opened to the public.
[(b)] A licensed authorized organization may not conduct
more than three [a] bingo occasions [occasion more often than three
days] during a calendar week under an annual license [and not to
exceed more than four hours during a 24-hour period].
(b) A bingo occasion may not exceed four hours.
(c) [A licensed authorized organization may conduct two
bingo occasions during a 24-hour period.] No more than two bingo
occasions may be conducted at the same premises during one day
except that a third bingo occasion may be conducted under a
temporary license held by a licensed authorized organization at
that premises.
(d) [No more than two licensed authorized organizations may
conduct bingo at the same premises during a 24-hour period.] If
more than one bingo occasion is conducted [two organizations
conduct bingo] at the same premises on the same day:
(1) [during a 24-hour period,] the bingo occasions
must be announced separately;
(2) the licensed times may not overlap; and
(3) bingo cards may be sold during a bingo occasion for
play during a subsequent bingo occasion that is scheduled to begin
at the same premises in not more than eight hours after the sale of
cards for the subsequent occasion begins [, and an intermission of
at least 10 minutes must occur between the bingo occasions].
(e) Bingo paper for a bingo occasion may be sold at the
licensed premises before the bingo occasion begins. [If two
licensed authorized organizations are authorized to conduct bingo
at the same premises on the same day, the bingo occasion of one
organization may overlap with the bingo occasion of the other
organization, but their games must be separated by the intermission
required under Subsection (d). In that event, the intermission is
considered part of each organization's bingo occasion.]
SECTION 29. Subchapter I-1, Chapter 2001, Occupations Code,
is amended by adding Section 2001.4335 to read as follows:
Sec. 2001.4335. EXEMPTION FROM FRANCHISE TAX. A unit
formed under this subchapter is exempt from the tax imposed under
Chapter 171, Tax Code.
SECTION 30. Section 2001.435(b), Occupations Code, is
amended to read as follows:
(b) Each member of a unit shall deposit into the unit's
bingo account all funds derived from the conduct of bingo, less the
amount awarded as cash prizes under Sections 2001.420(a) and (b).
The deposit shall be made not later than the second [next] business
day after the day of the bingo occasion on which the receipts were
obtained.
SECTION 31. Section 2001.451, Occupations Code, is amended
by amending Subsections (a), (b), (c), (d), and (e) and adding
Subsections (g), (h), (i), (j), and (k) to read as follows:
(a) A licensed authorized organization shall establish and
maintain one regular checking account designated as the
organization's "bingo account." The organization may [also]
maintain a separate [an] interest-bearing savings account
designated as the "bingo savings account."
(b) A licensed authorized organization shall deposit in the
bingo account all funds derived from the conduct of bingo, less the
amount awarded as cash prizes under Sections 2001.420(a) and (b).
Except as provided by Subsection (b-1), a deposit must be made not
later than the second [next] business day after the day of the bingo
occasion on which the receipts were obtained.
(c) A licensed authorized organization may transfer [lend]
money from its general fund or other account to the organization's
[its] bingo account or to the bingo account of a unit of which the
organization is a member under Subchapter I-1, if applicable, if:
(1) the balance in the bingo account to which the funds
are transferred is less than the maximum amount permitted by this
section; and
(2) the organization notifies [requests and receives
the prior approval of] the commission of the transfer not later than
the 14th day after the date of the transfer. [Except as provided by
this section, no other funds may be deposited in the bingo account.]
(d) Except as permitted by Subsection (c), a [A] licensed
authorized organization may not commingle gross receipts derived
from the conduct of bingo with other funds of the organization.
(e) Except as permitted by Subsection (c) of this section
and by Section 2001.453(2), a [Sections 2001.453(a)(2) and (3),
the] licensed authorized organization may not transfer gross
receipts derived from the conduct of bingo to another account
maintained by the organization.
(g) The bingo operations of a licensed authorized
organization must:
(1) result in net proceeds over the organization's
license period; or
(2) if the organization has a two-year license, result
in net proceeds over each 12-month period that ends on an
anniversary of the date the two-year license was issued.
(h) Except as provided by Subsection (j), a licensed
authorized organization or a unit of licensed authorized
organizations may retain operating capital in the organization's or
unit's bingo account in an amount that:
(1) is equal to the organization's or unit's actual
average bingo expenses per quarter based on the preceding license
period, excluding prizes paid; and
(2) does not exceed a total of $50,000 for a single
organization or $50,000 for each member of a unit unless:
(A) the commission by rule establishes a higher
amount for all organizations or units or one or more classes of
organizations or units; or
(B) the bingo operations director, on request,
raises the operating capital limit for one organization or unit as
necessary to facilitate the operation of the organization or unit.
(i) Prize fees held in escrow for remittance to the
commission are not included in the calculation of operating capital
under Subsection (h).
(j) The commission shall adopt rules allowing a licensed
authorized organization to retain a maximum amount of operating
capital in the bingo account in excess of the amount provided by
Subsection (h) if the organization:
(1) has conducted bingo for less than one year;
(2) experiences circumstances beyond the control of
the organization, including force majeure, that necessitate an
increase in operating capital; or
(3) provides to the commission a credible business
plan for the conduct of bingo or for the organization's existing or
planned charitable purposes that an increase in operating capital
will reasonably further.
(k) A licensed authorized organization may apply to the
commission for a waiver of the requirements of this section and
Section 2001.457. The commission may grant the waiver on a showing
of good cause by the organization that compliance with this section
and Section 2001.457 is detrimental to the organization's existing
or planned charitable purposes. An organization applying for a
waiver establishes good cause by providing to the commission:
(1) credible evidence of circumstances beyond the
control of the organization, including force majeure; or
(2) a credible business plan for the organization's
conduct of bingo or the organization's existing or planned
charitable purposes.
SECTION 32. Sections 2001.452(a) and (c), Occupations Code,
are amended to read as follows:
(a) Funds from the bingo account must be withdrawn by
electronic funds transfer or by preprinted, consecutively numbered
checks or withdrawal slips, signed by an authorized representative
of the licensed authorized organization and made payable to a
person. A check or withdrawal slip may not be made payable to
"cash," "bearer," or a fictitious payee. The nature of the payment
made must also be noted on the face of the check or withdrawal slip.
The purpose, amount, and payee for each electronic funds transfer
must be recorded in accordance with rules adopted by the
commission.
(c) A licensed authorized organization shall [keep and]
account for all checks and withdrawal slips, including voided
checks and withdrawal slips.
SECTION 33. Section 2001.453, Occupations Code, is amended
to read as follows:
Sec. 2001.453. AUTHORIZED USES OF BINGO ACCOUNT. [(a)] A
licensed authorized organization may withdraw funds from [draw a
check on] its bingo account only for:
(1) the payment of necessary or [and] reasonable bona
fide expenses, including compensation of personnel, as permitted
under Section 2001.458 incurred and paid in connection with the
conduct of bingo; or
(2) the disbursement of net proceeds derived from the
conduct of bingo as provided by this subchapter [to charitable
purposes; or
[(3) the transfer of net proceeds derived from the
conduct of bingo to the organization's bingo savings account
pending a disbursement to a charitable purpose.
[(b) A licensed authorized organization must make the
disbursement of net proceeds on deposit in the bingo savings
account to a charitable purpose by transferring the intended
disbursement back into the organization's bingo account and then
withdrawing an amount by a check drawn on the bingo account].
SECTION 34. Sections 2001.457(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) Before the end of each quarter, a licensed authorized
organization shall disburse all [for charitable purposes an amount
not less than 35 percent] of the organization's net proceeds
[adjusted gross receipts] from the preceding quarter, other than
amounts retained under Section 2001.451, as provided by this
subchapter [less the amount of authorized expenses not to exceed
six percent of the gross receipts].
(b) If a licensed authorized organization fails to meet the
requirements of Subsection (a) [this section] for a quarter, the
commission in applying appropriate sanctions shall [may] consider
whether, taking into account the amount required to be disbursed
[distributed] during that quarter and the three preceding quarters
[and the charitable distributions for each of those quarters], the
organization has disbursed [distributed] a total amount sufficient
to have met the disbursement [35 percent] requirement for that
quarter and the three preceding quarters combined.
(c) A licensed authorized organization that has ceased to
conduct bingo for any reason and that has unexpended bingo funds
shall disburse those funds as provided by this subchapter [to
charitable purposes] before the end of the next calendar quarter
after the calendar quarter in which the organization ceases to
conduct bingo.
SECTION 35. Section 2001.458(a), Occupations Code, is
amended to read as follows:
(a) An item of expense may not be incurred or paid in
connection with the conduct of bingo except an expense that is
reasonable or necessary to conduct bingo, including an expense for:
(1) advertising, including the cost of printing bingo
gift certificates;
(2) security;
(3) repairs to premises and equipment;
(4) bingo supplies and equipment;
(5) prizes;
(6) stated rental or mortgage and insurance expenses;
(7) bookkeeping, legal, or accounting services
related to bingo;
(8) fees for callers, cashiers, ushers, janitorial
services, and utility supplies and services;
(9) license fees;
(10) attending a bingo seminar or convention required
under Section 2001.107; and
(11) debit card transaction fees and electronic funds
transfer fees.
SECTION 36. Section 2001.459(a), Occupations Code, is
amended to read as follows:
(a) The following items of expense incurred or paid in
connection with the conduct of bingo must be paid from an
organization's bingo account:
(1) advertising, including the cost of printing bingo
gift certificates;
(2) security during a bingo occasion;
(3) the purchase or repair of bingo supplies and
equipment;
(4) prizes, other than authorized cash prizes;
(5) stated rental expenses;
(6) bookkeeping, legal, or accounting services;
(7) fees for callers, cashiers, and ushers;
(8) janitorial services; and
(9) license fees[; and
[(10) payment for services provided by a system
service provider].
SECTION 37. Section 2001.502, Occupations Code, is amended
to read as follows:
Sec. 2001.502. PRIZE FEE. A licensed authorized
organization shall:
(1) collect from a person who wins a bingo prize of
more than $5 a fee in the amount of five percent of the amount or
value of the prize; and
(2) remit to the commission a fee in the amount of five
percent of the amount or value of all bingo prizes awarded.
SECTION 38. Sections 2001.505(a) and (b), Occupations Code,
are amended to read as follows:
(a) A licensed authorized organization conducting bingo
shall submit quarterly to the commission [and to the comptroller] a
report under oath stating:
(1) the amount of the gross receipts derived from
bingo;
(2) each item of expense incurred or paid;
(3) each item of expenditure made or to be made, the
name and address of each person to whom each item has been paid or is
to be paid, and a detailed description of the merchandise purchased
or the services rendered;
(4) the net proceeds derived from bingo;
(5) the use to which the proceeds have been or are to
be applied; and
(6) a list of prizes offered and given, with their
respective values.
(b) A license holder shall[:
[(1)] maintain records to substantiate the contents of
each report[; and
[(2) furnish a copy of each report to the appropriate
governing body].
SECTION 39. Section 2001.603(b), Occupations Code, is
amended to read as follows:
(b) Not later than the 21st [14th] day after the date on
which the report is issued, the director shall give written notice
of the report to the person alleged to have committed the violation.
SECTION 40. Sections 2001.656(a), (b), and (d), Occupations
Code, are amended to read as follows:
(a) If a majority of the qualified voters voting on the
question in a legalization election vote in favor of legalization,
bingo is legalized throughout the political subdivision beginning
on the 14th [10th] day after the date the result of the election is
officially declared, except as otherwise provided as to a part of
the political subdivision for which Section 2001.657 requires a
contrary status.
(b) If a majority of the qualified voters voting on the
question in a prohibitory election vote in favor of prohibition,
bingo is prohibited throughout the political subdivision beginning
on the 14th [10th] day after the date the result of the election is
officially declared, except as otherwise provided as to a part of
the political subdivision for which Section 2001.657 requires a
contrary status.
(d) The governing body of a political subdivision in which a
bingo election has been held shall not later than the 14th [10th]
day after the date of the election give written notification to the
commission of the results of the election. If as a result of the
election bingo is legalized in the political subdivision, the
governing body shall furnish the commission with a map prepared by
the governing body indicating the boundaries of the political
subdivision in which bingo may be conducted.
SECTION 41. Section 411.108, Government Code, is amended by
adding Subsection (a-1) and amending Subsection (b) to read as
follows:
(a-1) The Texas Lottery Commission is entitled to obtain
from the department criminal history record information maintained
by the department that relates to a person licensed under Chapter
2001, Occupations Code, or described by Section 2001.3025,
Occupations Code.
(b) Criminal history record information obtained by the
commission under Subsection (a) or (a-1) may not be released or
disclosed to any person except on court order or as provided by
Subsection (c).
SECTION 42. The following provisions of the Occupations
Code are repealed:
(1) Sections 2001.002(3) and (10);
(2) Section 2001.057(b);
(3) Section 2001.160(c);
(4) Section 2001.161(a);
(5) Section 2001.303;
(6) Section 2001.402(b);
(7) Section 2001.406(c);
(8) Section 2001.417;
(9) Section 2001.457(d);
(10) Section 2001.505(c);
(11) Section 2001.553(b); and
(12) Subchapter F, Chapter 2001.
SECTION 43. The Texas Lottery Commission shall adopt the
rules required by Chapter 2001, Occupations Code, as amended by
this Act, not later than April 1, 2010.
SECTION 44. (a) If on or after the effective date of this
Act a licensed authorized organization has a balance in its bingo
account of more than the maximum amount of operating capital
allowed by Chapter 2001, Occupations Code, as amended by this Act,
the organization shall distribute the funds in excess of the
organization's maximum operating capital allowed by Chapter 2001,
Occupations Code, as amended by this Act, not later than:
(1) the first anniversary of the effective date of
this Act if the excess amount is less than 200 percent of the
maximum amount of operating capital;
(2) the second anniversary of the effective date of
this Act if the excess amount is 200 percent or more but less than
300 percent of the maximum amount of operating capital; or
(3) the third anniversary of the effective date of
this Act if the excess amount is 300 percent or more of the maximum
amount of operating capital.
(b) The Texas Lottery Commission may waive the requirements
of Subsection (a) of this section on application and a showing of
good cause by a licensed authorized organization.
(c) This section expires January 1, 2013.
SECTION 45. This Act takes effect October 1, 2009.
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