Texas 2009 - 81st Regular

Texas House Bill HB1474 Compare Versions

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11 H.B. No. 1474
22
33
44 AN ACT
55 relating to the operation and regulation of charitable bingo and
66 the use of bingo proceeds.
77 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
88 SECTION 1. Section 2001.002, Occupations Code, is amended
99 by adding Subdivisions (4-a), (8-a), and (25-a) and amending
1010 Subdivision (6) to read as follows:
1111 (4-a) "Bingo chairperson" means an officer or member
1212 of the board of directors of a licensed authorized organization who
1313 is designated in writing by the organization as responsible for
1414 overseeing the organization's bingo activities and reporting to the
1515 membership relating to those activities.
1616 (6) "Bingo occasion" means a single gathering or
1717 session at which a bingo game or [all activities incident to the
1818 conduct of] a series of bingo games, including selling and
1919 redeeming pull-tab bingo tickets, are conducted on the day and at
2020 the times listed on the license issued to [by] a licensed authorized
2121 organization[, including the organization's licensed times and any
2222 preparatory or concluding activities incident to the conduct of
2323 bingo].
2424 (8-a) "Crime of moral turpitude" means:
2525 (A) a felony;
2626 (B) a gambling offense;
2727 (C) criminal fraud;
2828 (D) forgery;
2929 (E) theft;
3030 (F) an offense that involves filing false
3131 information with a governmental agency; or
3232 (G) any offense that:
3333 (i) is classified in this state as a Class A
3434 misdemeanor; and
3535 (ii) puts the honesty and integrity of the
3636 individual who committed the offense in question.
3737 (25-a) "Regular license" means a license to conduct
3838 bingo that is issued by the commission and that expires on the first
3939 or second anniversary of the date of issuance unless revoked or
4040 suspended before that date by the commission. The term includes an
4141 annual license.
4242 SECTION 2. Section 2001.059, Occupations Code, is amended
4343 by amending Subsection (a) and adding Subsection (g) to read as
4444 follows:
4545 (a) An officer, bingo chairperson, or authorized
4646 representative of a license holder or an attorney, accountant, or
4747 bookkeeper employed or retained by a license holder [A person] may
4848 request from the commission an advisory opinion regarding
4949 compliance with this chapter and the rules of the commission.
5050 (g) The commission may refuse to issue an advisory opinion
5151 under this section on a matter that the commission knows to be in
5252 active litigation.
5353 SECTION 3. Subchapter B, Chapter 2001, Occupations Code, is
5454 amended by adding Section 2001.060 to read as follows:
5555 Sec. 2001.060. REPORTING. (a) On or before June 1 of each
5656 even-numbered year, the commission shall prepare and deliver to the
5757 governor, the lieutenant governor, the speaker of the house of
5858 representatives, and the chairs of the standing committees of the
5959 senate and house of representatives with primary jurisdiction over
6060 charitable bingo a report stating for each of the preceding two
6161 calendar years:
6262 (1) the total amount of adjusted gross receipts
6363 reported by licensed authorized organizations from their bingo
6464 operations;
6565 (2) the total amount of net proceeds reported by
6666 licensed authorized organizations from their bingo operations; and
6767 (3) a comparison of the amounts reported under
6868 Subdivisions (1) and (2), including the percentage that the net
6969 proceeds represents of the adjusted gross receipts.
7070 (b) For purposes of Subsection (a), "adjusted gross
7171 receipts" means the amount remaining after deducting prizes paid,
7272 excluding prize fees collected from bingo players.
7373 (c) For purposes of Subsection (a), the commission shall
7474 determine the total amount of net proceeds in a manner that does not
7575 reduce gross receipts by the amount of rent paid for the rental of
7676 bingo premises by a licensed authorized organization to another
7777 licensed authorized organization if the other organization pays
7878 rent for the premises to a licensed commercial lessor.
7979 SECTION 4. Section 2001.101(a), Occupations Code, is
8080 amended to read as follows:
8181 (a) The commission may license a person who is an authorized
8282 organization eligible for a license to conduct bingo if the person
8383 is:
8484 (1) a religious society that has existed in this state
8585 for at least three [eight] years;
8686 (2) a nonprofit organization:
8787 (A) whose predominant activities are for the
8888 support of medical research or treatment programs; and
8989 (B) that for at least three years:
9090 (i) must have had a governing body or
9191 officers elected by a vote of members or by a vote of delegates
9292 elected by the members; or
9393 (ii) must have been affiliated with a state
9494 or national organization organized to perform the same purposes as
9595 the nonprofit organization;
9696 (3) a fraternal organization;
9797 (4) a veterans organization that has existed in this
9898 state for at least three years; [or]
9999 (5) a volunteer fire department that has existed in
100100 this state for at least three years; or
101101 (6) a volunteer emergency medical services provider
102102 that has existed in this state for at least three years.
103103 SECTION 5. Sections 2001.102(a) and (b), Occupations Code,
104104 are amended to read as follows:
105105 (a) An applicant for a license to conduct bingo must file
106106 with the commission an [a written, executed, and verified]
107107 application on a form prescribed by the commission.
108108 (b) The application must include:
109109 (1) the name and address of the applicant;
110110 (2) the names and addresses of the applicant's
111111 officers and directors;
112112 (3) the address of the premises where and the time when
113113 the applicant intends to conduct bingo under the license sought;
114114 (4) the name and address of the licensed commercial
115115 lessor of the premises, if the applicant intends to lease premises
116116 to conduct bingo from a person other than an authorized
117117 organization;
118118 (5) [the capacity or potential capacity for public
119119 assembly in any premises owned or occupied by the applicant;
120120 [(6) the amount of rent to be paid or other
121121 consideration to be given, directly or indirectly, for each
122122 occasion for use of the premises of another licensed authorized
123123 organization or for use of the premises of a licensed commercial
124124 lessor;
125125 [(7) all other items of expense intended to be
126126 incurred or paid in connection with conducting, promoting, and
127127 administering bingo and the names and addresses of the persons to
128128 whom, and the purposes for which, the expenses are to be paid;
129129 [(8) the specific purposes to and the manner in which
130130 the net proceeds of bingo are to be devoted;
131131 [(9)] a statement that the net proceeds of bingo will
132132 go to one or more of the authorized charitable purposes under this
133133 chapter;
134134 (6) [(10)] a designation of the applicant
135135 organization's bingo chairperson [one or more active members of the
136136 applicant organization] under whom bingo will be conducted
137137 accompanied by a statement signed by the chairperson [each
138138 designated member] stating that the chairperson [member] will be
139139 responsible for the conduct of bingo under the terms of the license
140140 and this chapter;
141141 (7) [(11) a statement that a copy of the application
142142 has been sent to the appropriate governing body;
143143 [(12) the name and address of each person who will work
144144 at the proposed bingo occasion, the nature of the work to be
145145 performed, and a statement as to whether the person has been
146146 convicted of a felony, a gambling offense, criminal fraud, or a
147147 crime of moral turpitude; and
148148 [(13)] sufficient facts relating to the applicant's
149149 incorporation and organization to enable the commission to
150150 determine whether the applicant is an authorized organization;
151151 (8) a copy of the applicant organization's most
152152 recently filed Internal Revenue Service Form 990, if applicable;
153153 (9) a letter of good standing from the applicant
154154 organization's parent organization, if the organization receives
155155 an exemption from federal income taxes as a member of a group of
156156 organizations;
157157 (10) copies of the applicant organization's organizing
158158 instruments, including any bylaws, constitution, charter, and
159159 articles of incorporation;
160160 (11) verification of the applicant organization's good
161161 standing with the secretary of state if the organization is
162162 organized under the law of this state; and
163163 (12) information necessary to conduct criminal
164164 background checks on the applicant organization's officers and
165165 directors.
166166 SECTION 6. Section 2001.103(e), Occupations Code, is
167167 amended to read as follows:
168168 (e) Notwithstanding Subsection (c), an authorized
169169 organization that holds an annual [a regular] license to conduct
170170 bingo may receive not more than 24 [12] temporary licenses during
171171 the 12-month period following the issuance or renewal of the
172172 license. The holder of a license that is effective for two years
173173 may receive not more than 24 temporary licenses for each 12-month
174174 period that ends on an anniversary of the date the license was
175175 issued or renewed.
176176 SECTION 7. Section 2001.104, Occupations Code, is amended
177177 by amending Subsections (b) and (d) and adding Subsection (e) to
178178 read as follows:
179179 (b) The commission by rule shall establish procedures to
180180 determine if the appropriate license fee [At the end of the license
181181 period the license holder and the commission shall compute the
182182 amount of gross receipts actually recorded during the license
183183 period to determine if the appropriate fee amount] was paid.
184184 (d) An applicant shall pay the fees established under
185185 Subsection (a) annually. An applicant for a license or renewal of a
186186 license may obtain a license that is effective for two years by
187187 paying an amount equal to two times the amount of the annual license
188188 fee, or by paying the license fee for the first year at the time the
189189 applicant submits the application and the fee for the second year
190190 not later than the first anniversary of the date the license becomes
191191 effective [plus $25].
192192 (e) A licensed authorized organization may pay in advance,
193193 or establish an escrow account with the commission to cover, fees
194194 assessed under this chapter for the amendment of a license or
195195 issuance of a temporary license.
196196 SECTION 8. Section 2001.105(b), Occupations Code, is
197197 amended to read as follows:
198198 (b) The commission may not issue a license to an authorized
199199 organization to conduct bingo if an officer or member of the board
200200 of directors of the organization has been convicted of a felony,
201201 criminal fraud, a gambling or gambling-related offense, or a crime
202202 of moral turpitude if less than 10 years has elapsed since the
203203 termination of a sentence, parole, mandatory supervision, or
204204 community supervision served for the offense.
205205 SECTION 9. Section 2001.106, Occupations Code, is amended
206206 to read as follows:
207207 Sec. 2001.106. FORM AND CONTENTS OF LICENSE. A license to
208208 conduct bingo must include:
209209 (1) the name and address of the license holder;
210210 (2) the name and address of the bingo chairperson
211211 [names and addresses of the member or members] of the license holder
212212 under whom the bingo will be conducted; and
213213 (3) the address [an indication] of the premises where
214214 and the time when bingo is to be conducted[;
215215 [(4) the specific purposes to which the net proceeds
216216 of bingo are to be devoted; and
217217 [(5) a statement of whether a prize is to be offered
218218 and the amount of any authorized prize].
219219 SECTION 10. Section 2001.107(a), Occupations Code, is
220220 amended to read as follows:
221221 (a) Unless the organization is a member of a unit that
222222 designates a unit manager under Section 2001.437, the bingo
223223 chairperson for a licensed authorized organization [The person
224224 designated under Section 2001.102(b)(10)] shall complete the
225225 [eight hours of] training required [as provided] by commission
226226 rule. For a unit operating under Subchapter I-1, the unit manager
227227 shall complete the training if the unit designates a unit manager
228228 under Section 2001.437.
229229 SECTION 11. Sections 2001.108(b) and (c), Occupations Code,
230230 are amended to read as follows:
231231 (b) If the other organization ceased or will cease
232232 conducting bingo for the reason stated in Subsection (a)(1), the
233233 commission must act on the joint application filed under Subsection
234234 (a) not later than the 14th [10th] day after the date the
235235 application is filed with the commission.
236236 (c) If the other organization ceased or will cease
237237 conducting bingo for the reason stated in Subsection (a)(2), the
238238 commission must act on the joint application filed under Subsection
239239 (a) not later than the 14th [10th] day after the date the
240240 application is filed with the commission or the date on which the
241241 termination takes effect, whichever is later.
242242 SECTION 12. Sections 2001.158(b) and (d), Occupations Code,
243243 are amended to read as follows:
244244 (b) The commission by rule shall establish procedures for
245245 determining if the appropriate license fee [At the end of the
246246 license period, the license holder and the commission shall compute
247247 the amount of the gross rentals actually recorded during the
248248 license period to determine if the appropriate fee amount] was
249249 paid.
250250 (d) An applicant for a commercial lessor license shall pay
251251 the fees established under Subsection (a) annually. An applicant
252252 for a license or renewal of a license may obtain a license that is
253253 effective for two years by paying an amount equal to two times the
254254 amount of the annual license fee, or by paying the license fee for
255255 the first year at the time the applicant submits the application and
256256 the license fee for the second year not later than the first
257257 anniversary of the date the license becomes effective [plus $25].
258258 SECTION 13. The heading to Section 2001.159, Occupations
259259 Code, is amended to read as follows:
260260 Sec. 2001.159. LICENSE ISSUANCE OR RENEWAL.
261261 SECTION 14. Section 2001.159(a), Occupations Code, is
262262 amended to read as follows:
263263 (a) The commission shall issue or renew a commercial lessor
264264 license if the commission determines that:
265265 (1) the applicant has paid the license fee as provided
266266 by Section 2001.158;
267267 (2) the applicant qualifies to be licensed under this
268268 chapter;
269269 (3) [the applicant satisfies the requirements for a
270270 commercial lessor under this subchapter;
271271 [(4)] the rent to be charged is fair and reasonable
272272 [and will be charged and collected in compliance with Section
273273 2001.406];
274274 (4) [(5)] there is no diversion of the funds of the
275275 proposed lessee from the lawful purposes under this chapter;
276276 (5) [(6)] the person whose signature or name appears
277277 in the application is in all respects the real party in interest and
278278 is not an undisclosed agent or trustee for the real party in
279279 interest; and
280280 (6) [(7)] the applicant will lease the premises for
281281 the conduct of bingo in accordance with this chapter.
282282 SECTION 15. Section 2001.203, Occupations Code, is amended
283283 to read as follows:
284284 Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An
285285 applicant for a manufacturer's license must file with the
286286 commission an [a written verified] application on a form prescribed
287287 by the commission.
288288 (b) The application must include:
289289 (1) the name and address of the applicant and the name
290290 and address of each of its locations where bingo supplies or
291291 equipment are manufactured;
292292 (2) a full description of each type of bingo supply or
293293 equipment that the applicant intends to manufacture or market in
294294 this state and the brand name, if any, under which each item will be
295295 sold;
296296 (3) [the name and address of the applicant and] if the
297297 applicant:
298298 (A) is not a corporation, the name and home
299299 address of each owner; or
300300 (B) is a corporation, the name and home address
301301 of each officer and director and each person owning more than 10
302302 percent [or more] of a class of stock in the corporation;
303303 (4) if the applicant is a foreign corporation or other
304304 foreign legal entity, the name, business name and address, and
305305 [home] address of its registered agent for service in this state;
306306 (5) the name and address of each manufacturer,
307307 supplier, and distributor in which the applicant has a financial
308308 interest and the details of that financial interest, including any
309309 indebtedness between the applicant and the manufacturer, supplier,
310310 or distributor of $5,000 [$500] or more;
311311 (6) information regarding whether the applicant or a
312312 person required to be named in the application has been convicted in
313313 this state or another state of a felony, criminal fraud, a gambling
314314 or gambling-related offense, or a crime of moral turpitude;
315315 (7) information regarding whether the applicant or a
316316 person required to be named in the application is an owner, officer,
317317 director, shareholder, agent, or employee of a licensed commercial
318318 lessor or conducts, promotes, administers, or assists in
319319 conducting, promoting, or administering bingo for which a license
320320 is required by this chapter;
321321 (8) information regarding whether the applicant or a
322322 person required to be named in the application is a public officer
323323 or public employee in this state;
324324 (9) the name of each state in which the applicant is or
325325 has been licensed to manufacture, distribute, or supply bingo
326326 equipment or supplies, each license number, the period of time
327327 licensed under each license, and whether a license has been
328328 revoked, suspended, withdrawn, canceled, or surrendered and, if so,
329329 the reasons for the action taken;
330330 (10) information regarding whether the applicant or a
331331 person required to be named in the application is or has been a
332332 professional gambler or gambling promoter;
333333 (11) the names and addresses of each manufacturer,
334334 supplier, or distributor of bingo equipment or supplies in which
335335 the applicant or a person required to be named in the application is
336336 an owner, officer, shareholder, director, agent, or employee; and
337337 (12) any other information the commission requests.
338338 SECTION 16. Section 2001.208(b), Occupations Code, is
339339 amended to read as follows:
340340 (b) The application must include:
341341 (1) the full name and address of the applicant;
342342 (2) the name and address of each location operated by
343343 the distributor from which bingo supplies or equipment are
344344 distributed or at which bingo supplies or equipment are stored;
345345 (3) if a noncorporate distributor, the name and home
346346 address of each owner;
347347 (4) if a corporate distributor, the name and home
348348 address of each officer or director and of each person owning more
349349 than [at least] 10 percent of a class of stock in the corporation;
350350 (5) if a foreign corporation or other foreign legal
351351 entity, the name, business name and address, and [home] address of
352352 its registered agent for service in this state;
353353 (6) a full description of the type of bingo supply or
354354 equipment that the applicant intends to store or distribute in this
355355 state and the name of the manufacturer of each item and the brand
356356 name, if any, under which the item will be sold or marketed;
357357 (7) the name and address of a manufacturer, supplier,
358358 or distributor in which the applicant has a financial interest and
359359 the details of that financial interest, including an indebtedness
360360 between the applicant and the manufacturer, supplier, or
361361 distributor of $5,000 [$500] or more;
362362 (8) information regarding whether the applicant or a
363363 person required to be named in the application has been convicted in
364364 this state or another state of a felony, criminal fraud, a gambling
365365 or gambling-related offense, or a crime of moral turpitude;
366366 (9) information regarding whether the applicant or a
367367 person required to be named in the application is an owner, officer,
368368 director, shareholder, agent, or employee of a licensed commercial
369369 lessor or conducts, promotes, administers, or assists in
370370 conducting, promoting, or administering bingo for which a license
371371 is required under this chapter;
372372 (10) information regarding whether the applicant or a
373373 person required to be named in the application is a public officer
374374 or public employee in this state;
375375 (11) the name of each state in which the applicant is
376376 or has been licensed to manufacture, distribute, or supply bingo
377377 equipment or supplies, each license number, the period of time
378378 licensed under each license, and whether a license was revoked,
379379 suspended, withdrawn, canceled, or surrendered and, if so, the
380380 reasons for the action taken;
381381 (12) information regarding whether the applicant or a
382382 person required to be named in the application is or has been a
383383 professional gambler or gambling promoter;
384384 (13) the name and address of each manufacturer,
385385 supplier, or distributor of bingo equipment or supplies in which
386386 the applicant or a person required to be named in the application is
387387 an owner, officer, shareholder, director, agent, or employee; and
388388 (14) any other information the commission requests.
389389 SECTION 17. Sections 2001.211(b), (c), and (d), Occupations
390390 Code, are amended to read as follows:
391391 (b) If a change occurs after issuance of a manufacturer's or
392392 distributor's license, the license holder shall report the change
393393 to the commission not later than the 14th [10th] day after the date
394394 of the change.
395395 (c) Not later than the 14th [10th] day after the date of the
396396 change, a license holder shall notify the commission of a change in:
397397 (1) the license holder's organization, structure, or
398398 mode of operation;
399399 (2) the identity of persons named or required to be
400400 named in the application and the nature or extent of those persons'
401401 interest; or
402402 (3) any other facts stated in the application.
403403 (d) Failure to give a notice required under this section is
404404 cause for:
405405 (1) denial, suspension, or revocation of a license; or
406406 (2) imposition of an administrative penalty or other
407407 administrative action.
408408 SECTION 18. Subchapter G, Chapter 2001, Occupations Code,
409409 is amended by adding Section 2001.3025 to read as follows:
410410 Sec. 2001.3025. ACCESS TO CRIMINAL HISTORY RECORD
411411 INFORMATION. The commission is entitled to conduct an
412412 investigation of and is entitled to obtain criminal history record
413413 information maintained by the Department of Public Safety, the
414414 Federal Bureau of Investigation identification division, or
415415 another law enforcement agency to assist in the investigation of:
416416 (1) an applicant for or holder of a license issued
417417 under this chapter;
418418 (2) a person required to be named in a license
419419 application; or
420420 (3) an employee or other person who works or will work
421421 for a license holder and who is required by another provision of
422422 this chapter to undergo a criminal background check.
423423 SECTION 19. Section 2001.306(c), Occupations Code, is
424424 amended to read as follows:
425425 (c) The holder of a license to conduct bingo may not change
426426 the location at which it conducts bingo until it has:
427427 (1) returned [surrendered] its original license if
428428 available, or certified that the license is not available; and
429429 (2) received an amended license for the new location.
430430 SECTION 20. Section 2001.313, Occupations Code, is amended
431431 by amending Subsections (a), (b), (d), (e), (f), and (g) and adding
432432 Subsections (b-1), (h), and (i) to read as follows:
433433 (a) To minimize duplicate criminal history background
434434 checks by the commission and the costs incurred by organizations
435435 and individuals, the commission shall maintain a registry of
436436 individuals [persons] on whom the commission has conducted a
437437 criminal history background check and who are approved to be
438438 involved in the conduct of bingo or to act as a bingo operator.
439439 (b) An individual [A person] listed in the registry may be
440440 involved in the conduct of bingo or act as an operator at any
441441 location at which bingo is lawfully conducted.
442442 (b-1) An individual's listing on the registry expires on the
443443 third anniversary of the date the individual was initially included
444444 on the registry. The individual may renew the listing before the
445445 expiration date. If the individual fails to renew the listing, the
446446 commission shall remove the individual's name from the registry.
447447 An individual whose name is removed from the registry may reapply
448448 for listing on the registry.
449449 (d) An individual [A person] who is not listed on the
450450 registry established by this section may not act, and a licensed
451451 authorized organization may not allow the individual to act, as an
452452 operator, manager, cashier, usher, caller, bingo chairperson,
453453 bookkeeper, or salesperson for the [a] licensed authorized
454454 organization.
455455 (e) The commission may refuse to add an individual's [a
456456 person's] name to, or remove an individual's [a person's] name from,
457457 the registry established by this section if, after notice and, if
458458 requested by the individual, a hearing, the individual [person] is
459459 finally determined to have:
460460 (1) been convicted of an offense listed under Section
461461 2001.105(b);
462462 (2) converted bingo equipment in a premises to an
463463 improper use;
464464 (3) converted funds that are in, or that should have
465465 been in, the bingo account of any licensed authorized organization;
466466 (4) taken any action, individually or in concert with
467467 another person, that affects the integrity of any bingo game to
468468 which this chapter applies; [or]
469469 (5) acted as an operator, manager, cashier, usher,
470470 caller, bingo chairperson, bookkeeper, or salesperson for a
471471 licensed authorized organization without being listed on the
472472 registry established under this section;
473473 (6) failed to provide a complete application; or
474474 (7) participated in any violation of this chapter or
475475 rules adopted by the commission for the administration of this
476476 chapter.
477477 (f) A licensed authorized organization shall report to the
478478 commission or its designee the discovery of any conduct on the part
479479 of an individual [a person] registered or required to be registered
480480 under this section where there is substantial basis for believing
481481 that the conduct would constitute grounds for removal of the
482482 individual's [person's] name from, or refusal to add the
483483 individual's [person's] name to, the registry established by this
484484 section. A statement made in good faith to the commission or to an
485485 adjudicative body in connection with any such report may not be the
486486 basis for an action for defamation of character.
487487 (g) An individual [A person] who has been finally determined
488488 to have taken action prohibited by Subsection (e)(2), (3), (4),
489489 [or] (5), (6), or (7) cannot be listed on the registry of approved
490490 bingo workers and cannot work as a bingo worker for one year from
491491 the date of such determination. Upon expiration of the one-year
492492 period, the individual [person] is eligible for listing on the
493493 registry provided a licensee subject to this chapter makes
494494 application to list the individual [person]. In such event, the
495495 commission shall take into consideration the facts and
496496 circumstances that occurred that led to the applicable action under
497497 Subsections (e)(2)-(7) [(e)(2)-(5)] in deciding whether to list the
498498 individual [person] on the registry.
499499 (h) A licensed authorized organization may employ an
500500 individual who is not on the registry established by this section as
501501 an operator, manager, cashier, usher, caller, or salesperson on a
502502 provisional basis if the individual is awaiting the results of a
503503 background check by the commission:
504504 (1) for a period not to exceed 14 days if the
505505 individual is a resident of this state; or
506506 (2) for a period to be established by commission rule
507507 if the individual is not a resident of this state.
508508 (i) An individual who has been removed from the registry
509509 under Subsection (e) and has not subsequently been listed on the
510510 registry under Subsection (g) may not be employed under Subsection
511511 (h).
512512 SECTION 21. Section 2001.314, Occupations Code, is amended
513513 to read as follows:
514514 Sec. 2001.314. IDENTIFICATION CARD FOR APPROVED BINGO
515515 WORKER. (a) The commission may require an individual [a person]
516516 listed in the registry maintained under Section 2001.313 to wear an
517517 identification card to identify the individual [person] to license
518518 holders, bingo players, and commission staff while the individual
519519 [person] is on duty during the conduct of bingo. The commission by
520520 rule shall prescribe the form and content of the card.
521521 (b) The commission shall provide the identification card
522522 and shall provide a form to be completed by an individual [a person]
523523 that allows the individual [person] to prepare the identification
524524 card. The commission may [shall] collect a reasonable charge to
525525 cover the cost of providing the card or form.
526526 (c) An identification card required by the commission under
527527 this section to be worn by an individual [a person] while on duty
528528 during the conduct of bingo must be in substantial compliance with
529529 the form and content requirements prescribed by the commission
530530 under this section.
531531 (d) The commission may not require any other individual
532532 [person] licensed under this chapter, or an individual [a person]
533533 acting on the license holder's behalf, to wear an identification
534534 card, whether or not the individual [person] is present or
535535 performing the individual's [person's] duties during the conduct of
536536 bingo.
537537 SECTION 22. Subchapter G, Occupations Code, is amended by
538538 adding Sections 2001.315 and 2001.316 to read as follows:
539539 Sec. 2001.315. LATE LICENSE RENEWAL. (a) A person who
540540 fails to renew the person's license under this chapter before the
541541 date the license expires may renew the license after the expiration
542542 date by:
543543 (1) filing a license renewal application with the
544544 commission not later than the 14th day after the date the license
545545 expires, paying the applicable annual license fee, and paying a
546546 late license renewal fee equal to 10 percent of the annual license
547547 fee; or
548548 (2) filing a license renewal application with the
549549 commission not later than the 60th day after the date the license
550550 expires, paying the applicable annual license fee, and paying a
551551 late license renewal fee equal to 10 percent of the annual license
552552 fee for each 14-day period occurring after the date the license
553553 expires and before the date the renewal application is filed with
554554 the commission.
555555 (b) A person who files a renewal application with the
556556 commission under Subsection (a) may continue to perform the bingo
557557 activities authorized under the license as if the license has not
558558 expired until the license is renewed or renewal of the license is
559559 denied.
560560 (c) To renew a license after the 60th day after the date the
561561 license expires, the person must file an application for an
562562 original license and cease all bingo activities for which the
563563 license is required as of the 61st day after the date the license
564564 expires until a new license is issued.
565565 Sec. 2001.316. DELIVERY OF COMMISSION NOTICE. If notice
566566 under this chapter is required to be given to an authorized
567567 organization, the commission shall send the notice to the bingo
568568 chairperson of the authorized organization and to the appropriate
569569 commercial lessor, if applicable.
570570 SECTION 23. Section 2001.356(c), Occupations Code, is
571571 amended to read as follows:
572572 (c) If a notice of temporary suspension is served on a
573573 license holder, the director of bingo operations shall
574574 simultaneously serve notice of a hearing, to be held not later than
575575 the 14th [10th] day after the date the notice is served, at which
576576 the license holder must show cause why the license should not be
577577 temporarily suspended on the 14th [10th] day after the date the
578578 notice is served. If the license holder does not show cause, the
579579 license is suspended.
580580 SECTION 24. Section 2001.404, Occupations Code, is amended
581581 to read as follows:
582582 Sec. 2001.404. PRINCIPAL LOCATION. A licensed authorized
583583 organization may conduct bingo only in:
584584 (1) the county where the organization has its primary
585585 business office or another county contiguous to that county; or
586586 (2) if the organization does not have a [has no]
587587 business office, in the county of the principal residence of its
588588 chief executive officer, or a contiguous county of this state.
589589 SECTION 25. Section 2001.406(b), Occupations Code, is
590590 amended to read as follows:
591591 (b) Rent for premises used for the conduct of bingo must be
592592 paid in a lump sum. Except as otherwise provided by this section,
593593 the [The] lump sum must include all expenses authorized by Section
594594 2001.458 that are paid by the licensed authorized organization to
595595 the lessor in connection with the use of the premises. A licensed
596596 authorized organization or unit may pay as a separate expense,
597597 based on the percentage of the total area of the lessor's facility
598598 that the organization or unit uses as the bingo premises for the
599599 conduct of bingo, the organization's or unit's pro rata share of:
600600 (1) property taxes on the facility that are paid by the
601601 lessor, excluding any penalties and interest on the taxes;
602602 (2) water, electric, and gas utility expenses for the
603603 facility that are paid by the lessor, excluding any late fees or
604604 other penalties; and
605605 (3) property and casualty insurance premiums for the
606606 facility that are paid by the lessor, excluding any late fees or
607607 other penalties.
608608 SECTION 26. Section 2001.407(a), Occupations Code, is
609609 amended to read as follows:
610610 (a) A licensed manufacturer may furnish, by sale or
611611 otherwise, bingo equipment or supplies to a licensed distributor.
612612 A [Except as provided by Section 2001.257(b), a] licensed
613613 manufacturer may not furnish, by sale or otherwise, bingo equipment
614614 or supplies to a person other than a licensed distributor.
615615 SECTION 27. Section 2001.411, Occupations Code, is amended
616616 by adding Subsection (c-1) to read as follows:
617617 (c-1) An organization may designate as members of the
618618 organization one or more individuals who elect to become members,
619619 including all of the organization's directors, and the designated
620620 members are bona fide members of the organization for purposes of
621621 this section and other law.
622622 SECTION 28. Section 2001.419, Occupations Code, is amended
623623 to read as follows:
624624 Sec. 2001.419. BINGO OCCASIONS. (a) [A bingo occasion
625625 begins when the premises are opened to the public.
626626 [(b)] A licensed authorized organization may not conduct
627627 more than three [a] bingo occasions [occasion more often than three
628628 days] during a calendar week under an annual license [and not to
629629 exceed more than four hours during a 24-hour period].
630630 (b) A bingo occasion may not exceed four hours.
631631 (c) [A licensed authorized organization may conduct two
632632 bingo occasions during a 24-hour period.] No more than two bingo
633633 occasions may be conducted at the same premises during one day
634634 except that a third bingo occasion may be conducted under a
635635 temporary license held by a licensed authorized organization at
636636 that premises.
637637 (d) [No more than two licensed authorized organizations may
638638 conduct bingo at the same premises during a 24-hour period.] If
639639 more than one bingo occasion is conducted [two organizations
640640 conduct bingo] at the same premises on the same day:
641641 (1) [during a 24-hour period,] the bingo occasions
642642 must be announced separately;
643643 (2) the licensed times may not overlap; and
644644 (3) bingo cards may be sold during a bingo occasion for
645645 play during a subsequent bingo occasion that is scheduled to begin
646646 at the same premises in not more than eight hours after the sale of
647647 cards for the subsequent occasion begins [, and an intermission of
648648 at least 10 minutes must occur between the bingo occasions].
649649 (e) Bingo paper for a bingo occasion may be sold at the
650650 licensed premises before the bingo occasion begins. [If two
651651 licensed authorized organizations are authorized to conduct bingo
652652 at the same premises on the same day, the bingo occasion of one
653653 organization may overlap with the bingo occasion of the other
654654 organization, but their games must be separated by the intermission
655655 required under Subsection (d). In that event, the intermission is
656656 considered part of each organization's bingo occasion.]
657657 SECTION 29. Subchapter I-1, Chapter 2001, Occupations Code,
658658 is amended by adding Section 2001.4335 to read as follows:
659659 Sec. 2001.4335. EXEMPTION FROM FRANCHISE TAX. A unit
660660 formed under this subchapter is exempt from the tax imposed under
661661 Chapter 171, Tax Code.
662662 SECTION 30. Section 2001.435(b), Occupations Code, is
663663 amended to read as follows:
664664 (b) Each member of a unit shall deposit into the unit's
665665 bingo account all funds derived from the conduct of bingo, less the
666666 amount awarded as cash prizes under Sections 2001.420(a) and (b).
667667 The deposit shall be made not later than the second [next] business
668668 day after the day of the bingo occasion on which the receipts were
669669 obtained.
670670 SECTION 31. Section 2001.451, Occupations Code, is amended
671671 by amending Subsections (a), (b), (c), (d), and (e) and adding
672672 Subsections (g), (h), (i), (j), and (k) to read as follows:
673673 (a) A licensed authorized organization shall establish and
674674 maintain one regular checking account designated as the
675675 organization's "bingo account." The organization may [also]
676676 maintain a separate [an] interest-bearing savings account
677677 designated as the "bingo savings account."
678678 (b) A licensed authorized organization shall deposit in the
679679 bingo account all funds derived from the conduct of bingo, less the
680680 amount awarded as cash prizes under Sections 2001.420(a) and (b).
681681 Except as provided by Subsection (b-1), a deposit must be made not
682682 later than the second [next] business day after the day of the bingo
683683 occasion on which the receipts were obtained.
684684 (c) A licensed authorized organization may transfer [lend]
685685 money from its general fund or other account to the organization's
686686 [its] bingo account or to the bingo account of a unit of which the
687687 organization is a member under Subchapter I-1, if applicable, if:
688688 (1) the balance in the bingo account to which the funds
689689 are transferred is less than the maximum amount permitted by this
690690 section; and
691691 (2) the organization notifies [requests and receives
692692 the prior approval of] the commission of the transfer not later than
693693 the 14th day after the date of the transfer. [Except as provided by
694694 this section, no other funds may be deposited in the bingo account.]
695695 (d) Except as permitted by Subsection (c), a [A] licensed
696696 authorized organization may not commingle gross receipts derived
697697 from the conduct of bingo with other funds of the organization.
698698 (e) Except as permitted by Subsection (c) of this section
699699 and by Section 2001.453(2), a [Sections 2001.453(a)(2) and (3),
700700 the] licensed authorized organization may not transfer gross
701701 receipts derived from the conduct of bingo to another account
702702 maintained by the organization.
703703 (g) The bingo operations of a licensed authorized
704704 organization must:
705705 (1) result in net proceeds over the organization's
706706 license period; or
707707 (2) if the organization has a two-year license, result
708708 in net proceeds over each 12-month period that ends on an
709709 anniversary of the date the two-year license was issued.
710710 (h) Except as provided by Subsection (j), a licensed
711711 authorized organization or a unit of licensed authorized
712712 organizations may retain operating capital in the organization's or
713713 unit's bingo account in an amount that:
714714 (1) is equal to the organization's or unit's actual
715715 average bingo expenses per quarter based on the preceding license
716716 period, excluding prizes paid; and
717717 (2) does not exceed a total of $50,000 for a single
718718 organization or $50,000 for each member of a unit unless:
719719 (A) the commission by rule establishes a higher
720720 amount for all organizations or units or one or more classes of
721721 organizations or units; or
722722 (B) the bingo operations director, on request,
723723 raises the operating capital limit for one organization or unit as
724724 necessary to facilitate the operation of the organization or unit.
725725 (i) Prize fees held in escrow for remittance to the
726726 commission are not included in the calculation of operating capital
727727 under Subsection (h).
728728 (j) The commission shall adopt rules allowing a licensed
729729 authorized organization to retain a maximum amount of operating
730730 capital in the bingo account in excess of the amount provided by
731731 Subsection (h) if the organization:
732732 (1) has conducted bingo for less than one year;
733733 (2) experiences circumstances beyond the control of
734734 the organization, including force majeure, that necessitate an
735735 increase in operating capital; or
736736 (3) provides to the commission a credible business
737737 plan for the conduct of bingo or for the organization's existing or
738738 planned charitable purposes that an increase in operating capital
739739 will reasonably further.
740740 (k) A licensed authorized organization may apply to the
741741 commission for a waiver of the requirements of this section and
742742 Section 2001.457. The commission may grant the waiver on a showing
743743 of good cause by the organization that compliance with this section
744744 and Section 2001.457 is detrimental to the organization's existing
745745 or planned charitable purposes. An organization applying for a
746746 waiver establishes good cause by providing to the commission:
747747 (1) credible evidence of circumstances beyond the
748748 control of the organization, including force majeure; or
749749 (2) a credible business plan for the organization's
750750 conduct of bingo or the organization's existing or planned
751751 charitable purposes.
752752 SECTION 32. Sections 2001.452(a) and (c), Occupations Code,
753753 are amended to read as follows:
754754 (a) Funds from the bingo account must be withdrawn by
755755 electronic funds transfer or by preprinted, consecutively numbered
756756 checks or withdrawal slips, signed by an authorized representative
757757 of the licensed authorized organization and made payable to a
758758 person. A check or withdrawal slip may not be made payable to
759759 "cash," "bearer," or a fictitious payee. The nature of the payment
760760 made must also be noted on the face of the check or withdrawal slip.
761761 The purpose, amount, and payee for each electronic funds transfer
762762 must be recorded in accordance with rules adopted by the
763763 commission.
764764 (c) A licensed authorized organization shall [keep and]
765765 account for all checks and withdrawal slips, including voided
766766 checks and withdrawal slips.
767767 SECTION 33. Section 2001.453, Occupations Code, is amended
768768 to read as follows:
769769 Sec. 2001.453. AUTHORIZED USES OF BINGO ACCOUNT. [(a)] A
770770 licensed authorized organization may withdraw funds from [draw a
771771 check on] its bingo account only for:
772772 (1) the payment of necessary or [and] reasonable bona
773773 fide expenses, including compensation of personnel, as permitted
774774 under Section 2001.458 incurred and paid in connection with the
775775 conduct of bingo; or
776776 (2) the disbursement of net proceeds derived from the
777777 conduct of bingo as provided by this subchapter [to charitable
778778 purposes; or
779779 [(3) the transfer of net proceeds derived from the
780780 conduct of bingo to the organization's bingo savings account
781781 pending a disbursement to a charitable purpose.
782782 [(b) A licensed authorized organization must make the
783783 disbursement of net proceeds on deposit in the bingo savings
784784 account to a charitable purpose by transferring the intended
785785 disbursement back into the organization's bingo account and then
786786 withdrawing an amount by a check drawn on the bingo account].
787787 SECTION 34. Sections 2001.457(a), (b), and (c), Occupations
788788 Code, are amended to read as follows:
789789 (a) Before the end of each quarter, a licensed authorized
790790 organization shall disburse all [for charitable purposes an amount
791791 not less than 35 percent] of the organization's net proceeds
792792 [adjusted gross receipts] from the preceding quarter, other than
793793 amounts retained under Section 2001.451, as provided by this
794794 subchapter [less the amount of authorized expenses not to exceed
795795 six percent of the gross receipts].
796796 (b) If a licensed authorized organization fails to meet the
797797 requirements of Subsection (a) [this section] for a quarter, the
798798 commission in applying appropriate sanctions shall [may] consider
799799 whether, taking into account the amount required to be disbursed
800800 [distributed] during that quarter and the three preceding quarters
801801 [and the charitable distributions for each of those quarters], the
802802 organization has disbursed [distributed] a total amount sufficient
803803 to have met the disbursement [35 percent] requirement for that
804804 quarter and the three preceding quarters combined.
805805 (c) A licensed authorized organization that has ceased to
806806 conduct bingo for any reason and that has unexpended bingo funds
807807 shall disburse those funds as provided by this subchapter [to
808808 charitable purposes] before the end of the next calendar quarter
809809 after the calendar quarter in which the organization ceases to
810810 conduct bingo.
811811 SECTION 35. Section 2001.458(a), Occupations Code, is
812812 amended to read as follows:
813813 (a) An item of expense may not be incurred or paid in
814814 connection with the conduct of bingo except an expense that is
815815 reasonable or necessary to conduct bingo, including an expense for:
816816 (1) advertising, including the cost of printing bingo
817817 gift certificates;
818818 (2) security;
819819 (3) repairs to premises and equipment;
820820 (4) bingo supplies and equipment;
821821 (5) prizes;
822822 (6) stated rental or mortgage and insurance expenses;
823823 (7) bookkeeping, legal, or accounting services
824824 related to bingo;
825825 (8) fees for callers, cashiers, ushers, janitorial
826826 services, and utility supplies and services;
827827 (9) license fees;
828828 (10) attending a bingo seminar or convention required
829829 under Section 2001.107; and
830830 (11) debit card transaction fees and electronic funds
831831 transfer fees.
832832 SECTION 36. Section 2001.459(a), Occupations Code, is
833833 amended to read as follows:
834834 (a) The following items of expense incurred or paid in
835835 connection with the conduct of bingo must be paid from an
836836 organization's bingo account:
837837 (1) advertising, including the cost of printing bingo
838838 gift certificates;
839839 (2) security during a bingo occasion;
840840 (3) the purchase or repair of bingo supplies and
841841 equipment;
842842 (4) prizes, other than authorized cash prizes;
843843 (5) stated rental expenses;
844844 (6) bookkeeping, legal, or accounting services;
845845 (7) fees for callers, cashiers, and ushers;
846846 (8) janitorial services; and
847847 (9) license fees[; and
848848 [(10) payment for services provided by a system
849849 service provider].
850850 SECTION 37. Section 2001.502, Occupations Code, is amended
851851 to read as follows:
852852 Sec. 2001.502. PRIZE FEE. A licensed authorized
853853 organization shall:
854854 (1) collect from a person who wins a bingo prize of
855855 more than $5 a fee in the amount of five percent of the amount or
856856 value of the prize; and
857857 (2) remit to the commission a fee in the amount of five
858858 percent of the amount or value of all bingo prizes awarded.
859859 SECTION 38. Sections 2001.505(a) and (b), Occupations Code,
860860 are amended to read as follows:
861861 (a) A licensed authorized organization conducting bingo
862862 shall submit quarterly to the commission [and to the comptroller] a
863863 report under oath stating:
864864 (1) the amount of the gross receipts derived from
865865 bingo;
866866 (2) each item of expense incurred or paid;
867867 (3) each item of expenditure made or to be made, the
868868 name and address of each person to whom each item has been paid or is
869869 to be paid, and a detailed description of the merchandise purchased
870870 or the services rendered;
871871 (4) the net proceeds derived from bingo;
872872 (5) the use to which the proceeds have been or are to
873873 be applied; and
874874 (6) a list of prizes offered and given, with their
875875 respective values.
876876 (b) A license holder shall[:
877877 [(1)] maintain records to substantiate the contents of
878878 each report[; and
879879 [(2) furnish a copy of each report to the appropriate
880880 governing body].
881881 SECTION 39. Section 2001.603(b), Occupations Code, is
882882 amended to read as follows:
883883 (b) Not later than the 21st [14th] day after the date on
884884 which the report is issued, the director shall give written notice
885885 of the report to the person alleged to have committed the violation.
886886 SECTION 40. Sections 2001.656(a), (b), and (d), Occupations
887887 Code, are amended to read as follows:
888888 (a) If a majority of the qualified voters voting on the
889889 question in a legalization election vote in favor of legalization,
890890 bingo is legalized throughout the political subdivision beginning
891891 on the 14th [10th] day after the date the result of the election is
892892 officially declared, except as otherwise provided as to a part of
893893 the political subdivision for which Section 2001.657 requires a
894894 contrary status.
895895 (b) If a majority of the qualified voters voting on the
896896 question in a prohibitory election vote in favor of prohibition,
897897 bingo is prohibited throughout the political subdivision beginning
898898 on the 14th [10th] day after the date the result of the election is
899899 officially declared, except as otherwise provided as to a part of
900900 the political subdivision for which Section 2001.657 requires a
901901 contrary status.
902902 (d) The governing body of a political subdivision in which a
903903 bingo election has been held shall not later than the 14th [10th]
904904 day after the date of the election give written notification to the
905905 commission of the results of the election. If as a result of the
906906 election bingo is legalized in the political subdivision, the
907907 governing body shall furnish the commission with a map prepared by
908908 the governing body indicating the boundaries of the political
909909 subdivision in which bingo may be conducted.
910910 SECTION 41. Section 411.108, Government Code, is amended by
911911 adding Subsection (a-1) and amending Subsection (b) to read as
912912 follows:
913913 (a-1) The Texas Lottery Commission is entitled to obtain
914914 from the department criminal history record information maintained
915915 by the department that relates to a person licensed under Chapter
916916 2001, Occupations Code, or described by Section 2001.3025,
917917 Occupations Code.
918918 (b) Criminal history record information obtained by the
919919 commission under Subsection (a) or (a-1) may not be released or
920920 disclosed to any person except on court order or as provided by
921921 Subsection (c).
922922 SECTION 42. The following provisions of the Occupations
923923 Code are repealed:
924924 (1) Sections 2001.002(3) and (10);
925925 (2) Section 2001.057(b);
926926 (3) Section 2001.160(c);
927927 (4) Section 2001.161(a);
928928 (5) Section 2001.303;
929929 (6) Section 2001.402(b);
930930 (7) Section 2001.406(c);
931931 (8) Section 2001.417;
932932 (9) Section 2001.457(d);
933933 (10) Section 2001.505(c);
934934 (11) Section 2001.553(b); and
935935 (12) Subchapter F, Chapter 2001.
936936 SECTION 43. The Texas Lottery Commission shall adopt the
937937 rules required by Chapter 2001, Occupations Code, as amended by
938938 this Act, not later than April 1, 2010.
939939 SECTION 44. (a) If on or after the effective date of this
940940 Act a licensed authorized organization has a balance in its bingo
941941 account of more than the maximum amount of operating capital
942942 allowed by Chapter 2001, Occupations Code, as amended by this Act,
943943 the organization shall distribute the funds in excess of the
944944 organization's maximum operating capital allowed by Chapter 2001,
945945 Occupations Code, as amended by this Act, not later than:
946946 (1) the first anniversary of the effective date of
947947 this Act if the excess amount is less than 200 percent of the
948948 maximum amount of operating capital;
949949 (2) the second anniversary of the effective date of
950950 this Act if the excess amount is 200 percent or more but less than
951951 300 percent of the maximum amount of operating capital; or
952952 (3) the third anniversary of the effective date of
953953 this Act if the excess amount is 300 percent or more of the maximum
954954 amount of operating capital.
955955 (b) The Texas Lottery Commission may waive the requirements
956956 of Subsection (a) of this section on application and a showing of
957957 good cause by a licensed authorized organization.
958958 (c) This section expires January 1, 2013.
959959 SECTION 45. This Act takes effect October 1, 2009.
960960 ______________________________ ______________________________
961961 President of the Senate Speaker of the House
962962 I certify that H.B. No. 1474 was passed by the House on May 1,
963963 2009, by the following vote: Yeas 125, Nays 16, 1 present, not
964964 voting.
965965 ______________________________
966966 Chief Clerk of the House
967967 I certify that H.B. No. 1474 was passed by the Senate on May
968968 26, 2009, by the following vote: Yeas 30, Nays 1.
969969 ______________________________
970970 Secretary of the Senate
971971 APPROVED: _____________________
972972 Date
973973 _____________________
974974 Governor