1 | 1 | | H.B. No. 1474 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | AN ACT |
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5 | 5 | | relating to the operation and regulation of charitable bingo and |
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6 | 6 | | the use of bingo proceeds. |
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7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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8 | 8 | | SECTION 1. Section 2001.002, Occupations Code, is amended |
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9 | 9 | | by adding Subdivisions (4-a), (8-a), and (25-a) and amending |
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10 | 10 | | Subdivision (6) to read as follows: |
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11 | 11 | | (4-a) "Bingo chairperson" means an officer or member |
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12 | 12 | | of the board of directors of a licensed authorized organization who |
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13 | 13 | | is designated in writing by the organization as responsible for |
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14 | 14 | | overseeing the organization's bingo activities and reporting to the |
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15 | 15 | | membership relating to those activities. |
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16 | 16 | | (6) "Bingo occasion" means a single gathering or |
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17 | 17 | | session at which a bingo game or [all activities incident to the |
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18 | 18 | | conduct of] a series of bingo games, including selling and |
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19 | 19 | | redeeming pull-tab bingo tickets, are conducted on the day and at |
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20 | 20 | | the times listed on the license issued to [by] a licensed authorized |
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21 | 21 | | organization[, including the organization's licensed times and any |
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22 | 22 | | preparatory or concluding activities incident to the conduct of |
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23 | 23 | | bingo]. |
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24 | 24 | | (8-a) "Crime of moral turpitude" means: |
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25 | 25 | | (A) a felony; |
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26 | 26 | | (B) a gambling offense; |
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27 | 27 | | (C) criminal fraud; |
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28 | 28 | | (D) forgery; |
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29 | 29 | | (E) theft; |
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30 | 30 | | (F) an offense that involves filing false |
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31 | 31 | | information with a governmental agency; or |
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32 | 32 | | (G) any offense that: |
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33 | 33 | | (i) is classified in this state as a Class A |
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34 | 34 | | misdemeanor; and |
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35 | 35 | | (ii) puts the honesty and integrity of the |
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36 | 36 | | individual who committed the offense in question. |
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37 | 37 | | (25-a) "Regular license" means a license to conduct |
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38 | 38 | | bingo that is issued by the commission and that expires on the first |
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39 | 39 | | or second anniversary of the date of issuance unless revoked or |
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40 | 40 | | suspended before that date by the commission. The term includes an |
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41 | 41 | | annual license. |
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42 | 42 | | SECTION 2. Section 2001.059, Occupations Code, is amended |
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43 | 43 | | by amending Subsection (a) and adding Subsection (g) to read as |
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44 | 44 | | follows: |
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45 | 45 | | (a) An officer, bingo chairperson, or authorized |
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46 | 46 | | representative of a license holder or an attorney, accountant, or |
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47 | 47 | | bookkeeper employed or retained by a license holder [A person] may |
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48 | 48 | | request from the commission an advisory opinion regarding |
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49 | 49 | | compliance with this chapter and the rules of the commission. |
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50 | 50 | | (g) The commission may refuse to issue an advisory opinion |
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51 | 51 | | under this section on a matter that the commission knows to be in |
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52 | 52 | | active litigation. |
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53 | 53 | | SECTION 3. Subchapter B, Chapter 2001, Occupations Code, is |
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54 | 54 | | amended by adding Section 2001.060 to read as follows: |
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55 | 55 | | Sec. 2001.060. REPORTING. (a) On or before June 1 of each |
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56 | 56 | | even-numbered year, the commission shall prepare and deliver to the |
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57 | 57 | | governor, the lieutenant governor, the speaker of the house of |
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58 | 58 | | representatives, and the chairs of the standing committees of the |
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59 | 59 | | senate and house of representatives with primary jurisdiction over |
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60 | 60 | | charitable bingo a report stating for each of the preceding two |
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61 | 61 | | calendar years: |
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62 | 62 | | (1) the total amount of adjusted gross receipts |
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63 | 63 | | reported by licensed authorized organizations from their bingo |
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64 | 64 | | operations; |
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65 | 65 | | (2) the total amount of net proceeds reported by |
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66 | 66 | | licensed authorized organizations from their bingo operations; and |
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67 | 67 | | (3) a comparison of the amounts reported under |
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68 | 68 | | Subdivisions (1) and (2), including the percentage that the net |
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69 | 69 | | proceeds represents of the adjusted gross receipts. |
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70 | 70 | | (b) For purposes of Subsection (a), "adjusted gross |
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71 | 71 | | receipts" means the amount remaining after deducting prizes paid, |
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72 | 72 | | excluding prize fees collected from bingo players. |
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73 | 73 | | (c) For purposes of Subsection (a), the commission shall |
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74 | 74 | | determine the total amount of net proceeds in a manner that does not |
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75 | 75 | | reduce gross receipts by the amount of rent paid for the rental of |
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76 | 76 | | bingo premises by a licensed authorized organization to another |
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77 | 77 | | licensed authorized organization if the other organization pays |
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78 | 78 | | rent for the premises to a licensed commercial lessor. |
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79 | 79 | | SECTION 4. Section 2001.101(a), Occupations Code, is |
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80 | 80 | | amended to read as follows: |
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81 | 81 | | (a) The commission may license a person who is an authorized |
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82 | 82 | | organization eligible for a license to conduct bingo if the person |
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83 | 83 | | is: |
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84 | 84 | | (1) a religious society that has existed in this state |
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85 | 85 | | for at least three [eight] years; |
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86 | 86 | | (2) a nonprofit organization: |
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87 | 87 | | (A) whose predominant activities are for the |
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88 | 88 | | support of medical research or treatment programs; and |
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89 | 89 | | (B) that for at least three years: |
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90 | 90 | | (i) must have had a governing body or |
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91 | 91 | | officers elected by a vote of members or by a vote of delegates |
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92 | 92 | | elected by the members; or |
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93 | 93 | | (ii) must have been affiliated with a state |
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94 | 94 | | or national organization organized to perform the same purposes as |
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95 | 95 | | the nonprofit organization; |
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96 | 96 | | (3) a fraternal organization; |
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97 | 97 | | (4) a veterans organization that has existed in this |
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98 | 98 | | state for at least three years; [or] |
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99 | 99 | | (5) a volunteer fire department that has existed in |
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100 | 100 | | this state for at least three years; or |
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101 | 101 | | (6) a volunteer emergency medical services provider |
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102 | 102 | | that has existed in this state for at least three years. |
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103 | 103 | | SECTION 5. Sections 2001.102(a) and (b), Occupations Code, |
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104 | 104 | | are amended to read as follows: |
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105 | 105 | | (a) An applicant for a license to conduct bingo must file |
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106 | 106 | | with the commission an [a written, executed, and verified] |
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107 | 107 | | application on a form prescribed by the commission. |
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108 | 108 | | (b) The application must include: |
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109 | 109 | | (1) the name and address of the applicant; |
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110 | 110 | | (2) the names and addresses of the applicant's |
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111 | 111 | | officers and directors; |
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112 | 112 | | (3) the address of the premises where and the time when |
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113 | 113 | | the applicant intends to conduct bingo under the license sought; |
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114 | 114 | | (4) the name and address of the licensed commercial |
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115 | 115 | | lessor of the premises, if the applicant intends to lease premises |
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116 | 116 | | to conduct bingo from a person other than an authorized |
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117 | 117 | | organization; |
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118 | 118 | | (5) [the capacity or potential capacity for public |
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119 | 119 | | assembly in any premises owned or occupied by the applicant; |
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120 | 120 | | [(6) the amount of rent to be paid or other |
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121 | 121 | | consideration to be given, directly or indirectly, for each |
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122 | 122 | | occasion for use of the premises of another licensed authorized |
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123 | 123 | | organization or for use of the premises of a licensed commercial |
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124 | 124 | | lessor; |
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125 | 125 | | [(7) all other items of expense intended to be |
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126 | 126 | | incurred or paid in connection with conducting, promoting, and |
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127 | 127 | | administering bingo and the names and addresses of the persons to |
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128 | 128 | | whom, and the purposes for which, the expenses are to be paid; |
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129 | 129 | | [(8) the specific purposes to and the manner in which |
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130 | 130 | | the net proceeds of bingo are to be devoted; |
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131 | 131 | | [(9)] a statement that the net proceeds of bingo will |
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132 | 132 | | go to one or more of the authorized charitable purposes under this |
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133 | 133 | | chapter; |
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134 | 134 | | (6) [(10)] a designation of the applicant |
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135 | 135 | | organization's bingo chairperson [one or more active members of the |
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136 | 136 | | applicant organization] under whom bingo will be conducted |
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137 | 137 | | accompanied by a statement signed by the chairperson [each |
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138 | 138 | | designated member] stating that the chairperson [member] will be |
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139 | 139 | | responsible for the conduct of bingo under the terms of the license |
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140 | 140 | | and this chapter; |
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141 | 141 | | (7) [(11) a statement that a copy of the application |
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142 | 142 | | has been sent to the appropriate governing body; |
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143 | 143 | | [(12) the name and address of each person who will work |
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144 | 144 | | at the proposed bingo occasion, the nature of the work to be |
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145 | 145 | | performed, and a statement as to whether the person has been |
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146 | 146 | | convicted of a felony, a gambling offense, criminal fraud, or a |
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147 | 147 | | crime of moral turpitude; and |
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148 | 148 | | [(13)] sufficient facts relating to the applicant's |
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149 | 149 | | incorporation and organization to enable the commission to |
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150 | 150 | | determine whether the applicant is an authorized organization; |
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151 | 151 | | (8) a copy of the applicant organization's most |
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152 | 152 | | recently filed Internal Revenue Service Form 990, if applicable; |
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153 | 153 | | (9) a letter of good standing from the applicant |
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154 | 154 | | organization's parent organization, if the organization receives |
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155 | 155 | | an exemption from federal income taxes as a member of a group of |
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156 | 156 | | organizations; |
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157 | 157 | | (10) copies of the applicant organization's organizing |
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158 | 158 | | instruments, including any bylaws, constitution, charter, and |
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159 | 159 | | articles of incorporation; |
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160 | 160 | | (11) verification of the applicant organization's good |
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161 | 161 | | standing with the secretary of state if the organization is |
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162 | 162 | | organized under the law of this state; and |
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163 | 163 | | (12) information necessary to conduct criminal |
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164 | 164 | | background checks on the applicant organization's officers and |
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165 | 165 | | directors. |
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166 | 166 | | SECTION 6. Section 2001.103(e), Occupations Code, is |
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167 | 167 | | amended to read as follows: |
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168 | 168 | | (e) Notwithstanding Subsection (c), an authorized |
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169 | 169 | | organization that holds an annual [a regular] license to conduct |
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170 | 170 | | bingo may receive not more than 24 [12] temporary licenses during |
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171 | 171 | | the 12-month period following the issuance or renewal of the |
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172 | 172 | | license. The holder of a license that is effective for two years |
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173 | 173 | | may receive not more than 24 temporary licenses for each 12-month |
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174 | 174 | | period that ends on an anniversary of the date the license was |
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175 | 175 | | issued or renewed. |
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176 | 176 | | SECTION 7. Section 2001.104, Occupations Code, is amended |
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177 | 177 | | by amending Subsections (b) and (d) and adding Subsection (e) to |
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178 | 178 | | read as follows: |
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179 | 179 | | (b) The commission by rule shall establish procedures to |
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180 | 180 | | determine if the appropriate license fee [At the end of the license |
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181 | 181 | | period the license holder and the commission shall compute the |
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182 | 182 | | amount of gross receipts actually recorded during the license |
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183 | 183 | | period to determine if the appropriate fee amount] was paid. |
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184 | 184 | | (d) An applicant shall pay the fees established under |
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185 | 185 | | Subsection (a) annually. An applicant for a license or renewal of a |
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186 | 186 | | license may obtain a license that is effective for two years by |
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187 | 187 | | paying an amount equal to two times the amount of the annual license |
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188 | 188 | | fee, or by paying the license fee for the first year at the time the |
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189 | 189 | | applicant submits the application and the fee for the second year |
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190 | 190 | | not later than the first anniversary of the date the license becomes |
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191 | 191 | | effective [plus $25]. |
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192 | 192 | | (e) A licensed authorized organization may pay in advance, |
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193 | 193 | | or establish an escrow account with the commission to cover, fees |
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194 | 194 | | assessed under this chapter for the amendment of a license or |
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195 | 195 | | issuance of a temporary license. |
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196 | 196 | | SECTION 8. Section 2001.105(b), Occupations Code, is |
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197 | 197 | | amended to read as follows: |
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198 | 198 | | (b) The commission may not issue a license to an authorized |
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199 | 199 | | organization to conduct bingo if an officer or member of the board |
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200 | 200 | | of directors of the organization has been convicted of a felony, |
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201 | 201 | | criminal fraud, a gambling or gambling-related offense, or a crime |
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202 | 202 | | of moral turpitude if less than 10 years has elapsed since the |
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203 | 203 | | termination of a sentence, parole, mandatory supervision, or |
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204 | 204 | | community supervision served for the offense. |
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205 | 205 | | SECTION 9. Section 2001.106, Occupations Code, is amended |
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206 | 206 | | to read as follows: |
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207 | 207 | | Sec. 2001.106. FORM AND CONTENTS OF LICENSE. A license to |
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208 | 208 | | conduct bingo must include: |
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209 | 209 | | (1) the name and address of the license holder; |
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210 | 210 | | (2) the name and address of the bingo chairperson |
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211 | 211 | | [names and addresses of the member or members] of the license holder |
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212 | 212 | | under whom the bingo will be conducted; and |
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213 | 213 | | (3) the address [an indication] of the premises where |
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214 | 214 | | and the time when bingo is to be conducted[; |
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215 | 215 | | [(4) the specific purposes to which the net proceeds |
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216 | 216 | | of bingo are to be devoted; and |
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217 | 217 | | [(5) a statement of whether a prize is to be offered |
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218 | 218 | | and the amount of any authorized prize]. |
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219 | 219 | | SECTION 10. Section 2001.107(a), Occupations Code, is |
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220 | 220 | | amended to read as follows: |
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221 | 221 | | (a) Unless the organization is a member of a unit that |
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222 | 222 | | designates a unit manager under Section 2001.437, the bingo |
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223 | 223 | | chairperson for a licensed authorized organization [The person |
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224 | 224 | | designated under Section 2001.102(b)(10)] shall complete the |
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225 | 225 | | [eight hours of] training required [as provided] by commission |
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226 | 226 | | rule. For a unit operating under Subchapter I-1, the unit manager |
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227 | 227 | | shall complete the training if the unit designates a unit manager |
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228 | 228 | | under Section 2001.437. |
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229 | 229 | | SECTION 11. Sections 2001.108(b) and (c), Occupations Code, |
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230 | 230 | | are amended to read as follows: |
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231 | 231 | | (b) If the other organization ceased or will cease |
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232 | 232 | | conducting bingo for the reason stated in Subsection (a)(1), the |
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233 | 233 | | commission must act on the joint application filed under Subsection |
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234 | 234 | | (a) not later than the 14th [10th] day after the date the |
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235 | 235 | | application is filed with the commission. |
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236 | 236 | | (c) If the other organization ceased or will cease |
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237 | 237 | | conducting bingo for the reason stated in Subsection (a)(2), the |
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238 | 238 | | commission must act on the joint application filed under Subsection |
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239 | 239 | | (a) not later than the 14th [10th] day after the date the |
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240 | 240 | | application is filed with the commission or the date on which the |
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241 | 241 | | termination takes effect, whichever is later. |
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242 | 242 | | SECTION 12. Sections 2001.158(b) and (d), Occupations Code, |
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243 | 243 | | are amended to read as follows: |
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244 | 244 | | (b) The commission by rule shall establish procedures for |
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245 | 245 | | determining if the appropriate license fee [At the end of the |
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246 | 246 | | license period, the license holder and the commission shall compute |
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247 | 247 | | the amount of the gross rentals actually recorded during the |
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248 | 248 | | license period to determine if the appropriate fee amount] was |
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249 | 249 | | paid. |
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250 | 250 | | (d) An applicant for a commercial lessor license shall pay |
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251 | 251 | | the fees established under Subsection (a) annually. An applicant |
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252 | 252 | | for a license or renewal of a license may obtain a license that is |
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253 | 253 | | effective for two years by paying an amount equal to two times the |
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254 | 254 | | amount of the annual license fee, or by paying the license fee for |
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255 | 255 | | the first year at the time the applicant submits the application and |
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256 | 256 | | the license fee for the second year not later than the first |
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257 | 257 | | anniversary of the date the license becomes effective [plus $25]. |
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258 | 258 | | SECTION 13. The heading to Section 2001.159, Occupations |
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259 | 259 | | Code, is amended to read as follows: |
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260 | 260 | | Sec. 2001.159. LICENSE ISSUANCE OR RENEWAL. |
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261 | 261 | | SECTION 14. Section 2001.159(a), Occupations Code, is |
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262 | 262 | | amended to read as follows: |
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263 | 263 | | (a) The commission shall issue or renew a commercial lessor |
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264 | 264 | | license if the commission determines that: |
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265 | 265 | | (1) the applicant has paid the license fee as provided |
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266 | 266 | | by Section 2001.158; |
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267 | 267 | | (2) the applicant qualifies to be licensed under this |
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268 | 268 | | chapter; |
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269 | 269 | | (3) [the applicant satisfies the requirements for a |
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270 | 270 | | commercial lessor under this subchapter; |
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271 | 271 | | [(4)] the rent to be charged is fair and reasonable |
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272 | 272 | | [and will be charged and collected in compliance with Section |
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273 | 273 | | 2001.406]; |
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274 | 274 | | (4) [(5)] there is no diversion of the funds of the |
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275 | 275 | | proposed lessee from the lawful purposes under this chapter; |
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276 | 276 | | (5) [(6)] the person whose signature or name appears |
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277 | 277 | | in the application is in all respects the real party in interest and |
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278 | 278 | | is not an undisclosed agent or trustee for the real party in |
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279 | 279 | | interest; and |
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280 | 280 | | (6) [(7)] the applicant will lease the premises for |
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281 | 281 | | the conduct of bingo in accordance with this chapter. |
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282 | 282 | | SECTION 15. Section 2001.203, Occupations Code, is amended |
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283 | 283 | | to read as follows: |
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284 | 284 | | Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An |
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285 | 285 | | applicant for a manufacturer's license must file with the |
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286 | 286 | | commission an [a written verified] application on a form prescribed |
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287 | 287 | | by the commission. |
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288 | 288 | | (b) The application must include: |
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289 | 289 | | (1) the name and address of the applicant and the name |
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290 | 290 | | and address of each of its locations where bingo supplies or |
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291 | 291 | | equipment are manufactured; |
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292 | 292 | | (2) a full description of each type of bingo supply or |
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293 | 293 | | equipment that the applicant intends to manufacture or market in |
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294 | 294 | | this state and the brand name, if any, under which each item will be |
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295 | 295 | | sold; |
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296 | 296 | | (3) [the name and address of the applicant and] if the |
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297 | 297 | | applicant: |
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298 | 298 | | (A) is not a corporation, the name and home |
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299 | 299 | | address of each owner; or |
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300 | 300 | | (B) is a corporation, the name and home address |
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301 | 301 | | of each officer and director and each person owning more than 10 |
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302 | 302 | | percent [or more] of a class of stock in the corporation; |
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303 | 303 | | (4) if the applicant is a foreign corporation or other |
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304 | 304 | | foreign legal entity, the name, business name and address, and |
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305 | 305 | | [home] address of its registered agent for service in this state; |
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306 | 306 | | (5) the name and address of each manufacturer, |
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307 | 307 | | supplier, and distributor in which the applicant has a financial |
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308 | 308 | | interest and the details of that financial interest, including any |
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309 | 309 | | indebtedness between the applicant and the manufacturer, supplier, |
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310 | 310 | | or distributor of $5,000 [$500] or more; |
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311 | 311 | | (6) information regarding whether the applicant or a |
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312 | 312 | | person required to be named in the application has been convicted in |
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313 | 313 | | this state or another state of a felony, criminal fraud, a gambling |
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314 | 314 | | or gambling-related offense, or a crime of moral turpitude; |
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315 | 315 | | (7) information regarding whether the applicant or a |
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316 | 316 | | person required to be named in the application is an owner, officer, |
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317 | 317 | | director, shareholder, agent, or employee of a licensed commercial |
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318 | 318 | | lessor or conducts, promotes, administers, or assists in |
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319 | 319 | | conducting, promoting, or administering bingo for which a license |
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320 | 320 | | is required by this chapter; |
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321 | 321 | | (8) information regarding whether the applicant or a |
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322 | 322 | | person required to be named in the application is a public officer |
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323 | 323 | | or public employee in this state; |
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324 | 324 | | (9) the name of each state in which the applicant is or |
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325 | 325 | | has been licensed to manufacture, distribute, or supply bingo |
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326 | 326 | | equipment or supplies, each license number, the period of time |
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327 | 327 | | licensed under each license, and whether a license has been |
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328 | 328 | | revoked, suspended, withdrawn, canceled, or surrendered and, if so, |
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329 | 329 | | the reasons for the action taken; |
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330 | 330 | | (10) information regarding whether the applicant or a |
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331 | 331 | | person required to be named in the application is or has been a |
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332 | 332 | | professional gambler or gambling promoter; |
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333 | 333 | | (11) the names and addresses of each manufacturer, |
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334 | 334 | | supplier, or distributor of bingo equipment or supplies in which |
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335 | 335 | | the applicant or a person required to be named in the application is |
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336 | 336 | | an owner, officer, shareholder, director, agent, or employee; and |
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337 | 337 | | (12) any other information the commission requests. |
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338 | 338 | | SECTION 16. Section 2001.208(b), Occupations Code, is |
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339 | 339 | | amended to read as follows: |
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340 | 340 | | (b) The application must include: |
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341 | 341 | | (1) the full name and address of the applicant; |
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342 | 342 | | (2) the name and address of each location operated by |
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343 | 343 | | the distributor from which bingo supplies or equipment are |
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344 | 344 | | distributed or at which bingo supplies or equipment are stored; |
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345 | 345 | | (3) if a noncorporate distributor, the name and home |
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346 | 346 | | address of each owner; |
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347 | 347 | | (4) if a corporate distributor, the name and home |
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348 | 348 | | address of each officer or director and of each person owning more |
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349 | 349 | | than [at least] 10 percent of a class of stock in the corporation; |
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350 | 350 | | (5) if a foreign corporation or other foreign legal |
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351 | 351 | | entity, the name, business name and address, and [home] address of |
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352 | 352 | | its registered agent for service in this state; |
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353 | 353 | | (6) a full description of the type of bingo supply or |
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354 | 354 | | equipment that the applicant intends to store or distribute in this |
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355 | 355 | | state and the name of the manufacturer of each item and the brand |
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356 | 356 | | name, if any, under which the item will be sold or marketed; |
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357 | 357 | | (7) the name and address of a manufacturer, supplier, |
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358 | 358 | | or distributor in which the applicant has a financial interest and |
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359 | 359 | | the details of that financial interest, including an indebtedness |
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360 | 360 | | between the applicant and the manufacturer, supplier, or |
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361 | 361 | | distributor of $5,000 [$500] or more; |
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362 | 362 | | (8) information regarding whether the applicant or a |
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363 | 363 | | person required to be named in the application has been convicted in |
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364 | 364 | | this state or another state of a felony, criminal fraud, a gambling |
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365 | 365 | | or gambling-related offense, or a crime of moral turpitude; |
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366 | 366 | | (9) information regarding whether the applicant or a |
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367 | 367 | | person required to be named in the application is an owner, officer, |
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368 | 368 | | director, shareholder, agent, or employee of a licensed commercial |
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369 | 369 | | lessor or conducts, promotes, administers, or assists in |
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370 | 370 | | conducting, promoting, or administering bingo for which a license |
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371 | 371 | | is required under this chapter; |
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372 | 372 | | (10) information regarding whether the applicant or a |
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373 | 373 | | person required to be named in the application is a public officer |
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374 | 374 | | or public employee in this state; |
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375 | 375 | | (11) the name of each state in which the applicant is |
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376 | 376 | | or has been licensed to manufacture, distribute, or supply bingo |
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377 | 377 | | equipment or supplies, each license number, the period of time |
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378 | 378 | | licensed under each license, and whether a license was revoked, |
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379 | 379 | | suspended, withdrawn, canceled, or surrendered and, if so, the |
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380 | 380 | | reasons for the action taken; |
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381 | 381 | | (12) information regarding whether the applicant or a |
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382 | 382 | | person required to be named in the application is or has been a |
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383 | 383 | | professional gambler or gambling promoter; |
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384 | 384 | | (13) the name and address of each manufacturer, |
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385 | 385 | | supplier, or distributor of bingo equipment or supplies in which |
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386 | 386 | | the applicant or a person required to be named in the application is |
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387 | 387 | | an owner, officer, shareholder, director, agent, or employee; and |
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388 | 388 | | (14) any other information the commission requests. |
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389 | 389 | | SECTION 17. Sections 2001.211(b), (c), and (d), Occupations |
---|
390 | 390 | | Code, are amended to read as follows: |
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391 | 391 | | (b) If a change occurs after issuance of a manufacturer's or |
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392 | 392 | | distributor's license, the license holder shall report the change |
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393 | 393 | | to the commission not later than the 14th [10th] day after the date |
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394 | 394 | | of the change. |
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395 | 395 | | (c) Not later than the 14th [10th] day after the date of the |
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396 | 396 | | change, a license holder shall notify the commission of a change in: |
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397 | 397 | | (1) the license holder's organization, structure, or |
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398 | 398 | | mode of operation; |
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399 | 399 | | (2) the identity of persons named or required to be |
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400 | 400 | | named in the application and the nature or extent of those persons' |
---|
401 | 401 | | interest; or |
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402 | 402 | | (3) any other facts stated in the application. |
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403 | 403 | | (d) Failure to give a notice required under this section is |
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404 | 404 | | cause for: |
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405 | 405 | | (1) denial, suspension, or revocation of a license; or |
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406 | 406 | | (2) imposition of an administrative penalty or other |
---|
407 | 407 | | administrative action. |
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408 | 408 | | SECTION 18. Subchapter G, Chapter 2001, Occupations Code, |
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409 | 409 | | is amended by adding Section 2001.3025 to read as follows: |
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410 | 410 | | Sec. 2001.3025. ACCESS TO CRIMINAL HISTORY RECORD |
---|
411 | 411 | | INFORMATION. The commission is entitled to conduct an |
---|
412 | 412 | | investigation of and is entitled to obtain criminal history record |
---|
413 | 413 | | information maintained by the Department of Public Safety, the |
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414 | 414 | | Federal Bureau of Investigation identification division, or |
---|
415 | 415 | | another law enforcement agency to assist in the investigation of: |
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416 | 416 | | (1) an applicant for or holder of a license issued |
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417 | 417 | | under this chapter; |
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418 | 418 | | (2) a person required to be named in a license |
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419 | 419 | | application; or |
---|
420 | 420 | | (3) an employee or other person who works or will work |
---|
421 | 421 | | for a license holder and who is required by another provision of |
---|
422 | 422 | | this chapter to undergo a criminal background check. |
---|
423 | 423 | | SECTION 19. Section 2001.306(c), Occupations Code, is |
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424 | 424 | | amended to read as follows: |
---|
425 | 425 | | (c) The holder of a license to conduct bingo may not change |
---|
426 | 426 | | the location at which it conducts bingo until it has: |
---|
427 | 427 | | (1) returned [surrendered] its original license if |
---|
428 | 428 | | available, or certified that the license is not available; and |
---|
429 | 429 | | (2) received an amended license for the new location. |
---|
430 | 430 | | SECTION 20. Section 2001.313, Occupations Code, is amended |
---|
431 | 431 | | by amending Subsections (a), (b), (d), (e), (f), and (g) and adding |
---|
432 | 432 | | Subsections (b-1), (h), and (i) to read as follows: |
---|
433 | 433 | | (a) To minimize duplicate criminal history background |
---|
434 | 434 | | checks by the commission and the costs incurred by organizations |
---|
435 | 435 | | and individuals, the commission shall maintain a registry of |
---|
436 | 436 | | individuals [persons] on whom the commission has conducted a |
---|
437 | 437 | | criminal history background check and who are approved to be |
---|
438 | 438 | | involved in the conduct of bingo or to act as a bingo operator. |
---|
439 | 439 | | (b) An individual [A person] listed in the registry may be |
---|
440 | 440 | | involved in the conduct of bingo or act as an operator at any |
---|
441 | 441 | | location at which bingo is lawfully conducted. |
---|
442 | 442 | | (b-1) An individual's listing on the registry expires on the |
---|
443 | 443 | | third anniversary of the date the individual was initially included |
---|
444 | 444 | | on the registry. The individual may renew the listing before the |
---|
445 | 445 | | expiration date. If the individual fails to renew the listing, the |
---|
446 | 446 | | commission shall remove the individual's name from the registry. |
---|
447 | 447 | | An individual whose name is removed from the registry may reapply |
---|
448 | 448 | | for listing on the registry. |
---|
449 | 449 | | (d) An individual [A person] who is not listed on the |
---|
450 | 450 | | registry established by this section may not act, and a licensed |
---|
451 | 451 | | authorized organization may not allow the individual to act, as an |
---|
452 | 452 | | operator, manager, cashier, usher, caller, bingo chairperson, |
---|
453 | 453 | | bookkeeper, or salesperson for the [a] licensed authorized |
---|
454 | 454 | | organization. |
---|
455 | 455 | | (e) The commission may refuse to add an individual's [a |
---|
456 | 456 | | person's] name to, or remove an individual's [a person's] name from, |
---|
457 | 457 | | the registry established by this section if, after notice and, if |
---|
458 | 458 | | requested by the individual, a hearing, the individual [person] is |
---|
459 | 459 | | finally determined to have: |
---|
460 | 460 | | (1) been convicted of an offense listed under Section |
---|
461 | 461 | | 2001.105(b); |
---|
462 | 462 | | (2) converted bingo equipment in a premises to an |
---|
463 | 463 | | improper use; |
---|
464 | 464 | | (3) converted funds that are in, or that should have |
---|
465 | 465 | | been in, the bingo account of any licensed authorized organization; |
---|
466 | 466 | | (4) taken any action, individually or in concert with |
---|
467 | 467 | | another person, that affects the integrity of any bingo game to |
---|
468 | 468 | | which this chapter applies; [or] |
---|
469 | 469 | | (5) acted as an operator, manager, cashier, usher, |
---|
470 | 470 | | caller, bingo chairperson, bookkeeper, or salesperson for a |
---|
471 | 471 | | licensed authorized organization without being listed on the |
---|
472 | 472 | | registry established under this section; |
---|
473 | 473 | | (6) failed to provide a complete application; or |
---|
474 | 474 | | (7) participated in any violation of this chapter or |
---|
475 | 475 | | rules adopted by the commission for the administration of this |
---|
476 | 476 | | chapter. |
---|
477 | 477 | | (f) A licensed authorized organization shall report to the |
---|
478 | 478 | | commission or its designee the discovery of any conduct on the part |
---|
479 | 479 | | of an individual [a person] registered or required to be registered |
---|
480 | 480 | | under this section where there is substantial basis for believing |
---|
481 | 481 | | that the conduct would constitute grounds for removal of the |
---|
482 | 482 | | individual's [person's] name from, or refusal to add the |
---|
483 | 483 | | individual's [person's] name to, the registry established by this |
---|
484 | 484 | | section. A statement made in good faith to the commission or to an |
---|
485 | 485 | | adjudicative body in connection with any such report may not be the |
---|
486 | 486 | | basis for an action for defamation of character. |
---|
487 | 487 | | (g) An individual [A person] who has been finally determined |
---|
488 | 488 | | to have taken action prohibited by Subsection (e)(2), (3), (4), |
---|
489 | 489 | | [or] (5), (6), or (7) cannot be listed on the registry of approved |
---|
490 | 490 | | bingo workers and cannot work as a bingo worker for one year from |
---|
491 | 491 | | the date of such determination. Upon expiration of the one-year |
---|
492 | 492 | | period, the individual [person] is eligible for listing on the |
---|
493 | 493 | | registry provided a licensee subject to this chapter makes |
---|
494 | 494 | | application to list the individual [person]. In such event, the |
---|
495 | 495 | | commission shall take into consideration the facts and |
---|
496 | 496 | | circumstances that occurred that led to the applicable action under |
---|
497 | 497 | | Subsections (e)(2)-(7) [(e)(2)-(5)] in deciding whether to list the |
---|
498 | 498 | | individual [person] on the registry. |
---|
499 | 499 | | (h) A licensed authorized organization may employ an |
---|
500 | 500 | | individual who is not on the registry established by this section as |
---|
501 | 501 | | an operator, manager, cashier, usher, caller, or salesperson on a |
---|
502 | 502 | | provisional basis if the individual is awaiting the results of a |
---|
503 | 503 | | background check by the commission: |
---|
504 | 504 | | (1) for a period not to exceed 14 days if the |
---|
505 | 505 | | individual is a resident of this state; or |
---|
506 | 506 | | (2) for a period to be established by commission rule |
---|
507 | 507 | | if the individual is not a resident of this state. |
---|
508 | 508 | | (i) An individual who has been removed from the registry |
---|
509 | 509 | | under Subsection (e) and has not subsequently been listed on the |
---|
510 | 510 | | registry under Subsection (g) may not be employed under Subsection |
---|
511 | 511 | | (h). |
---|
512 | 512 | | SECTION 21. Section 2001.314, Occupations Code, is amended |
---|
513 | 513 | | to read as follows: |
---|
514 | 514 | | Sec. 2001.314. IDENTIFICATION CARD FOR APPROVED BINGO |
---|
515 | 515 | | WORKER. (a) The commission may require an individual [a person] |
---|
516 | 516 | | listed in the registry maintained under Section 2001.313 to wear an |
---|
517 | 517 | | identification card to identify the individual [person] to license |
---|
518 | 518 | | holders, bingo players, and commission staff while the individual |
---|
519 | 519 | | [person] is on duty during the conduct of bingo. The commission by |
---|
520 | 520 | | rule shall prescribe the form and content of the card. |
---|
521 | 521 | | (b) The commission shall provide the identification card |
---|
522 | 522 | | and shall provide a form to be completed by an individual [a person] |
---|
523 | 523 | | that allows the individual [person] to prepare the identification |
---|
524 | 524 | | card. The commission may [shall] collect a reasonable charge to |
---|
525 | 525 | | cover the cost of providing the card or form. |
---|
526 | 526 | | (c) An identification card required by the commission under |
---|
527 | 527 | | this section to be worn by an individual [a person] while on duty |
---|
528 | 528 | | during the conduct of bingo must be in substantial compliance with |
---|
529 | 529 | | the form and content requirements prescribed by the commission |
---|
530 | 530 | | under this section. |
---|
531 | 531 | | (d) The commission may not require any other individual |
---|
532 | 532 | | [person] licensed under this chapter, or an individual [a person] |
---|
533 | 533 | | acting on the license holder's behalf, to wear an identification |
---|
534 | 534 | | card, whether or not the individual [person] is present or |
---|
535 | 535 | | performing the individual's [person's] duties during the conduct of |
---|
536 | 536 | | bingo. |
---|
537 | 537 | | SECTION 22. Subchapter G, Occupations Code, is amended by |
---|
538 | 538 | | adding Sections 2001.315 and 2001.316 to read as follows: |
---|
539 | 539 | | Sec. 2001.315. LATE LICENSE RENEWAL. (a) A person who |
---|
540 | 540 | | fails to renew the person's license under this chapter before the |
---|
541 | 541 | | date the license expires may renew the license after the expiration |
---|
542 | 542 | | date by: |
---|
543 | 543 | | (1) filing a license renewal application with the |
---|
544 | 544 | | commission not later than the 14th day after the date the license |
---|
545 | 545 | | expires, paying the applicable annual license fee, and paying a |
---|
546 | 546 | | late license renewal fee equal to 10 percent of the annual license |
---|
547 | 547 | | fee; or |
---|
548 | 548 | | (2) filing a license renewal application with the |
---|
549 | 549 | | commission not later than the 60th day after the date the license |
---|
550 | 550 | | expires, paying the applicable annual license fee, and paying a |
---|
551 | 551 | | late license renewal fee equal to 10 percent of the annual license |
---|
552 | 552 | | fee for each 14-day period occurring after the date the license |
---|
553 | 553 | | expires and before the date the renewal application is filed with |
---|
554 | 554 | | the commission. |
---|
555 | 555 | | (b) A person who files a renewal application with the |
---|
556 | 556 | | commission under Subsection (a) may continue to perform the bingo |
---|
557 | 557 | | activities authorized under the license as if the license has not |
---|
558 | 558 | | expired until the license is renewed or renewal of the license is |
---|
559 | 559 | | denied. |
---|
560 | 560 | | (c) To renew a license after the 60th day after the date the |
---|
561 | 561 | | license expires, the person must file an application for an |
---|
562 | 562 | | original license and cease all bingo activities for which the |
---|
563 | 563 | | license is required as of the 61st day after the date the license |
---|
564 | 564 | | expires until a new license is issued. |
---|
565 | 565 | | Sec. 2001.316. DELIVERY OF COMMISSION NOTICE. If notice |
---|
566 | 566 | | under this chapter is required to be given to an authorized |
---|
567 | 567 | | organization, the commission shall send the notice to the bingo |
---|
568 | 568 | | chairperson of the authorized organization and to the appropriate |
---|
569 | 569 | | commercial lessor, if applicable. |
---|
570 | 570 | | SECTION 23. Section 2001.356(c), Occupations Code, is |
---|
571 | 571 | | amended to read as follows: |
---|
572 | 572 | | (c) If a notice of temporary suspension is served on a |
---|
573 | 573 | | license holder, the director of bingo operations shall |
---|
574 | 574 | | simultaneously serve notice of a hearing, to be held not later than |
---|
575 | 575 | | the 14th [10th] day after the date the notice is served, at which |
---|
576 | 576 | | the license holder must show cause why the license should not be |
---|
577 | 577 | | temporarily suspended on the 14th [10th] day after the date the |
---|
578 | 578 | | notice is served. If the license holder does not show cause, the |
---|
579 | 579 | | license is suspended. |
---|
580 | 580 | | SECTION 24. Section 2001.404, Occupations Code, is amended |
---|
581 | 581 | | to read as follows: |
---|
582 | 582 | | Sec. 2001.404. PRINCIPAL LOCATION. A licensed authorized |
---|
583 | 583 | | organization may conduct bingo only in: |
---|
584 | 584 | | (1) the county where the organization has its primary |
---|
585 | 585 | | business office or another county contiguous to that county; or |
---|
586 | 586 | | (2) if the organization does not have a [has no] |
---|
587 | 587 | | business office, in the county of the principal residence of its |
---|
588 | 588 | | chief executive officer, or a contiguous county of this state. |
---|
589 | 589 | | SECTION 25. Section 2001.406(b), Occupations Code, is |
---|
590 | 590 | | amended to read as follows: |
---|
591 | 591 | | (b) Rent for premises used for the conduct of bingo must be |
---|
592 | 592 | | paid in a lump sum. Except as otherwise provided by this section, |
---|
593 | 593 | | the [The] lump sum must include all expenses authorized by Section |
---|
594 | 594 | | 2001.458 that are paid by the licensed authorized organization to |
---|
595 | 595 | | the lessor in connection with the use of the premises. A licensed |
---|
596 | 596 | | authorized organization or unit may pay as a separate expense, |
---|
597 | 597 | | based on the percentage of the total area of the lessor's facility |
---|
598 | 598 | | that the organization or unit uses as the bingo premises for the |
---|
599 | 599 | | conduct of bingo, the organization's or unit's pro rata share of: |
---|
600 | 600 | | (1) property taxes on the facility that are paid by the |
---|
601 | 601 | | lessor, excluding any penalties and interest on the taxes; |
---|
602 | 602 | | (2) water, electric, and gas utility expenses for the |
---|
603 | 603 | | facility that are paid by the lessor, excluding any late fees or |
---|
604 | 604 | | other penalties; and |
---|
605 | 605 | | (3) property and casualty insurance premiums for the |
---|
606 | 606 | | facility that are paid by the lessor, excluding any late fees or |
---|
607 | 607 | | other penalties. |
---|
608 | 608 | | SECTION 26. Section 2001.407(a), Occupations Code, is |
---|
609 | 609 | | amended to read as follows: |
---|
610 | 610 | | (a) A licensed manufacturer may furnish, by sale or |
---|
611 | 611 | | otherwise, bingo equipment or supplies to a licensed distributor. |
---|
612 | 612 | | A [Except as provided by Section 2001.257(b), a] licensed |
---|
613 | 613 | | manufacturer may not furnish, by sale or otherwise, bingo equipment |
---|
614 | 614 | | or supplies to a person other than a licensed distributor. |
---|
615 | 615 | | SECTION 27. Section 2001.411, Occupations Code, is amended |
---|
616 | 616 | | by adding Subsection (c-1) to read as follows: |
---|
617 | 617 | | (c-1) An organization may designate as members of the |
---|
618 | 618 | | organization one or more individuals who elect to become members, |
---|
619 | 619 | | including all of the organization's directors, and the designated |
---|
620 | 620 | | members are bona fide members of the organization for purposes of |
---|
621 | 621 | | this section and other law. |
---|
622 | 622 | | SECTION 28. Section 2001.419, Occupations Code, is amended |
---|
623 | 623 | | to read as follows: |
---|
624 | 624 | | Sec. 2001.419. BINGO OCCASIONS. (a) [A bingo occasion |
---|
625 | 625 | | begins when the premises are opened to the public. |
---|
626 | 626 | | [(b)] A licensed authorized organization may not conduct |
---|
627 | 627 | | more than three [a] bingo occasions [occasion more often than three |
---|
628 | 628 | | days] during a calendar week under an annual license [and not to |
---|
629 | 629 | | exceed more than four hours during a 24-hour period]. |
---|
630 | 630 | | (b) A bingo occasion may not exceed four hours. |
---|
631 | 631 | | (c) [A licensed authorized organization may conduct two |
---|
632 | 632 | | bingo occasions during a 24-hour period.] No more than two bingo |
---|
633 | 633 | | occasions may be conducted at the same premises during one day |
---|
634 | 634 | | except that a third bingo occasion may be conducted under a |
---|
635 | 635 | | temporary license held by a licensed authorized organization at |
---|
636 | 636 | | that premises. |
---|
637 | 637 | | (d) [No more than two licensed authorized organizations may |
---|
638 | 638 | | conduct bingo at the same premises during a 24-hour period.] If |
---|
639 | 639 | | more than one bingo occasion is conducted [two organizations |
---|
640 | 640 | | conduct bingo] at the same premises on the same day: |
---|
641 | 641 | | (1) [during a 24-hour period,] the bingo occasions |
---|
642 | 642 | | must be announced separately; |
---|
643 | 643 | | (2) the licensed times may not overlap; and |
---|
644 | 644 | | (3) bingo cards may be sold during a bingo occasion for |
---|
645 | 645 | | play during a subsequent bingo occasion that is scheduled to begin |
---|
646 | 646 | | at the same premises in not more than eight hours after the sale of |
---|
647 | 647 | | cards for the subsequent occasion begins [, and an intermission of |
---|
648 | 648 | | at least 10 minutes must occur between the bingo occasions]. |
---|
649 | 649 | | (e) Bingo paper for a bingo occasion may be sold at the |
---|
650 | 650 | | licensed premises before the bingo occasion begins. [If two |
---|
651 | 651 | | licensed authorized organizations are authorized to conduct bingo |
---|
652 | 652 | | at the same premises on the same day, the bingo occasion of one |
---|
653 | 653 | | organization may overlap with the bingo occasion of the other |
---|
654 | 654 | | organization, but their games must be separated by the intermission |
---|
655 | 655 | | required under Subsection (d). In that event, the intermission is |
---|
656 | 656 | | considered part of each organization's bingo occasion.] |
---|
657 | 657 | | SECTION 29. Subchapter I-1, Chapter 2001, Occupations Code, |
---|
658 | 658 | | is amended by adding Section 2001.4335 to read as follows: |
---|
659 | 659 | | Sec. 2001.4335. EXEMPTION FROM FRANCHISE TAX. A unit |
---|
660 | 660 | | formed under this subchapter is exempt from the tax imposed under |
---|
661 | 661 | | Chapter 171, Tax Code. |
---|
662 | 662 | | SECTION 30. Section 2001.435(b), Occupations Code, is |
---|
663 | 663 | | amended to read as follows: |
---|
664 | 664 | | (b) Each member of a unit shall deposit into the unit's |
---|
665 | 665 | | bingo account all funds derived from the conduct of bingo, less the |
---|
666 | 666 | | amount awarded as cash prizes under Sections 2001.420(a) and (b). |
---|
667 | 667 | | The deposit shall be made not later than the second [next] business |
---|
668 | 668 | | day after the day of the bingo occasion on which the receipts were |
---|
669 | 669 | | obtained. |
---|
670 | 670 | | SECTION 31. Section 2001.451, Occupations Code, is amended |
---|
671 | 671 | | by amending Subsections (a), (b), (c), (d), and (e) and adding |
---|
672 | 672 | | Subsections (g), (h), (i), (j), and (k) to read as follows: |
---|
673 | 673 | | (a) A licensed authorized organization shall establish and |
---|
674 | 674 | | maintain one regular checking account designated as the |
---|
675 | 675 | | organization's "bingo account." The organization may [also] |
---|
676 | 676 | | maintain a separate [an] interest-bearing savings account |
---|
677 | 677 | | designated as the "bingo savings account." |
---|
678 | 678 | | (b) A licensed authorized organization shall deposit in the |
---|
679 | 679 | | bingo account all funds derived from the conduct of bingo, less the |
---|
680 | 680 | | amount awarded as cash prizes under Sections 2001.420(a) and (b). |
---|
681 | 681 | | Except as provided by Subsection (b-1), a deposit must be made not |
---|
682 | 682 | | later than the second [next] business day after the day of the bingo |
---|
683 | 683 | | occasion on which the receipts were obtained. |
---|
684 | 684 | | (c) A licensed authorized organization may transfer [lend] |
---|
685 | 685 | | money from its general fund or other account to the organization's |
---|
686 | 686 | | [its] bingo account or to the bingo account of a unit of which the |
---|
687 | 687 | | organization is a member under Subchapter I-1, if applicable, if: |
---|
688 | 688 | | (1) the balance in the bingo account to which the funds |
---|
689 | 689 | | are transferred is less than the maximum amount permitted by this |
---|
690 | 690 | | section; and |
---|
691 | 691 | | (2) the organization notifies [requests and receives |
---|
692 | 692 | | the prior approval of] the commission of the transfer not later than |
---|
693 | 693 | | the 14th day after the date of the transfer. [Except as provided by |
---|
694 | 694 | | this section, no other funds may be deposited in the bingo account.] |
---|
695 | 695 | | (d) Except as permitted by Subsection (c), a [A] licensed |
---|
696 | 696 | | authorized organization may not commingle gross receipts derived |
---|
697 | 697 | | from the conduct of bingo with other funds of the organization. |
---|
698 | 698 | | (e) Except as permitted by Subsection (c) of this section |
---|
699 | 699 | | and by Section 2001.453(2), a [Sections 2001.453(a)(2) and (3), |
---|
700 | 700 | | the] licensed authorized organization may not transfer gross |
---|
701 | 701 | | receipts derived from the conduct of bingo to another account |
---|
702 | 702 | | maintained by the organization. |
---|
703 | 703 | | (g) The bingo operations of a licensed authorized |
---|
704 | 704 | | organization must: |
---|
705 | 705 | | (1) result in net proceeds over the organization's |
---|
706 | 706 | | license period; or |
---|
707 | 707 | | (2) if the organization has a two-year license, result |
---|
708 | 708 | | in net proceeds over each 12-month period that ends on an |
---|
709 | 709 | | anniversary of the date the two-year license was issued. |
---|
710 | 710 | | (h) Except as provided by Subsection (j), a licensed |
---|
711 | 711 | | authorized organization or a unit of licensed authorized |
---|
712 | 712 | | organizations may retain operating capital in the organization's or |
---|
713 | 713 | | unit's bingo account in an amount that: |
---|
714 | 714 | | (1) is equal to the organization's or unit's actual |
---|
715 | 715 | | average bingo expenses per quarter based on the preceding license |
---|
716 | 716 | | period, excluding prizes paid; and |
---|
717 | 717 | | (2) does not exceed a total of $50,000 for a single |
---|
718 | 718 | | organization or $50,000 for each member of a unit unless: |
---|
719 | 719 | | (A) the commission by rule establishes a higher |
---|
720 | 720 | | amount for all organizations or units or one or more classes of |
---|
721 | 721 | | organizations or units; or |
---|
722 | 722 | | (B) the bingo operations director, on request, |
---|
723 | 723 | | raises the operating capital limit for one organization or unit as |
---|
724 | 724 | | necessary to facilitate the operation of the organization or unit. |
---|
725 | 725 | | (i) Prize fees held in escrow for remittance to the |
---|
726 | 726 | | commission are not included in the calculation of operating capital |
---|
727 | 727 | | under Subsection (h). |
---|
728 | 728 | | (j) The commission shall adopt rules allowing a licensed |
---|
729 | 729 | | authorized organization to retain a maximum amount of operating |
---|
730 | 730 | | capital in the bingo account in excess of the amount provided by |
---|
731 | 731 | | Subsection (h) if the organization: |
---|
732 | 732 | | (1) has conducted bingo for less than one year; |
---|
733 | 733 | | (2) experiences circumstances beyond the control of |
---|
734 | 734 | | the organization, including force majeure, that necessitate an |
---|
735 | 735 | | increase in operating capital; or |
---|
736 | 736 | | (3) provides to the commission a credible business |
---|
737 | 737 | | plan for the conduct of bingo or for the organization's existing or |
---|
738 | 738 | | planned charitable purposes that an increase in operating capital |
---|
739 | 739 | | will reasonably further. |
---|
740 | 740 | | (k) A licensed authorized organization may apply to the |
---|
741 | 741 | | commission for a waiver of the requirements of this section and |
---|
742 | 742 | | Section 2001.457. The commission may grant the waiver on a showing |
---|
743 | 743 | | of good cause by the organization that compliance with this section |
---|
744 | 744 | | and Section 2001.457 is detrimental to the organization's existing |
---|
745 | 745 | | or planned charitable purposes. An organization applying for a |
---|
746 | 746 | | waiver establishes good cause by providing to the commission: |
---|
747 | 747 | | (1) credible evidence of circumstances beyond the |
---|
748 | 748 | | control of the organization, including force majeure; or |
---|
749 | 749 | | (2) a credible business plan for the organization's |
---|
750 | 750 | | conduct of bingo or the organization's existing or planned |
---|
751 | 751 | | charitable purposes. |
---|
752 | 752 | | SECTION 32. Sections 2001.452(a) and (c), Occupations Code, |
---|
753 | 753 | | are amended to read as follows: |
---|
754 | 754 | | (a) Funds from the bingo account must be withdrawn by |
---|
755 | 755 | | electronic funds transfer or by preprinted, consecutively numbered |
---|
756 | 756 | | checks or withdrawal slips, signed by an authorized representative |
---|
757 | 757 | | of the licensed authorized organization and made payable to a |
---|
758 | 758 | | person. A check or withdrawal slip may not be made payable to |
---|
759 | 759 | | "cash," "bearer," or a fictitious payee. The nature of the payment |
---|
760 | 760 | | made must also be noted on the face of the check or withdrawal slip. |
---|
761 | 761 | | The purpose, amount, and payee for each electronic funds transfer |
---|
762 | 762 | | must be recorded in accordance with rules adopted by the |
---|
763 | 763 | | commission. |
---|
764 | 764 | | (c) A licensed authorized organization shall [keep and] |
---|
765 | 765 | | account for all checks and withdrawal slips, including voided |
---|
766 | 766 | | checks and withdrawal slips. |
---|
767 | 767 | | SECTION 33. Section 2001.453, Occupations Code, is amended |
---|
768 | 768 | | to read as follows: |
---|
769 | 769 | | Sec. 2001.453. AUTHORIZED USES OF BINGO ACCOUNT. [(a)] A |
---|
770 | 770 | | licensed authorized organization may withdraw funds from [draw a |
---|
771 | 771 | | check on] its bingo account only for: |
---|
772 | 772 | | (1) the payment of necessary or [and] reasonable bona |
---|
773 | 773 | | fide expenses, including compensation of personnel, as permitted |
---|
774 | 774 | | under Section 2001.458 incurred and paid in connection with the |
---|
775 | 775 | | conduct of bingo; or |
---|
776 | 776 | | (2) the disbursement of net proceeds derived from the |
---|
777 | 777 | | conduct of bingo as provided by this subchapter [to charitable |
---|
778 | 778 | | purposes; or |
---|
779 | 779 | | [(3) the transfer of net proceeds derived from the |
---|
780 | 780 | | conduct of bingo to the organization's bingo savings account |
---|
781 | 781 | | pending a disbursement to a charitable purpose. |
---|
782 | 782 | | [(b) A licensed authorized organization must make the |
---|
783 | 783 | | disbursement of net proceeds on deposit in the bingo savings |
---|
784 | 784 | | account to a charitable purpose by transferring the intended |
---|
785 | 785 | | disbursement back into the organization's bingo account and then |
---|
786 | 786 | | withdrawing an amount by a check drawn on the bingo account]. |
---|
787 | 787 | | SECTION 34. Sections 2001.457(a), (b), and (c), Occupations |
---|
788 | 788 | | Code, are amended to read as follows: |
---|
789 | 789 | | (a) Before the end of each quarter, a licensed authorized |
---|
790 | 790 | | organization shall disburse all [for charitable purposes an amount |
---|
791 | 791 | | not less than 35 percent] of the organization's net proceeds |
---|
792 | 792 | | [adjusted gross receipts] from the preceding quarter, other than |
---|
793 | 793 | | amounts retained under Section 2001.451, as provided by this |
---|
794 | 794 | | subchapter [less the amount of authorized expenses not to exceed |
---|
795 | 795 | | six percent of the gross receipts]. |
---|
796 | 796 | | (b) If a licensed authorized organization fails to meet the |
---|
797 | 797 | | requirements of Subsection (a) [this section] for a quarter, the |
---|
798 | 798 | | commission in applying appropriate sanctions shall [may] consider |
---|
799 | 799 | | whether, taking into account the amount required to be disbursed |
---|
800 | 800 | | [distributed] during that quarter and the three preceding quarters |
---|
801 | 801 | | [and the charitable distributions for each of those quarters], the |
---|
802 | 802 | | organization has disbursed [distributed] a total amount sufficient |
---|
803 | 803 | | to have met the disbursement [35 percent] requirement for that |
---|
804 | 804 | | quarter and the three preceding quarters combined. |
---|
805 | 805 | | (c) A licensed authorized organization that has ceased to |
---|
806 | 806 | | conduct bingo for any reason and that has unexpended bingo funds |
---|
807 | 807 | | shall disburse those funds as provided by this subchapter [to |
---|
808 | 808 | | charitable purposes] before the end of the next calendar quarter |
---|
809 | 809 | | after the calendar quarter in which the organization ceases to |
---|
810 | 810 | | conduct bingo. |
---|
811 | 811 | | SECTION 35. Section 2001.458(a), Occupations Code, is |
---|
812 | 812 | | amended to read as follows: |
---|
813 | 813 | | (a) An item of expense may not be incurred or paid in |
---|
814 | 814 | | connection with the conduct of bingo except an expense that is |
---|
815 | 815 | | reasonable or necessary to conduct bingo, including an expense for: |
---|
816 | 816 | | (1) advertising, including the cost of printing bingo |
---|
817 | 817 | | gift certificates; |
---|
818 | 818 | | (2) security; |
---|
819 | 819 | | (3) repairs to premises and equipment; |
---|
820 | 820 | | (4) bingo supplies and equipment; |
---|
821 | 821 | | (5) prizes; |
---|
822 | 822 | | (6) stated rental or mortgage and insurance expenses; |
---|
823 | 823 | | (7) bookkeeping, legal, or accounting services |
---|
824 | 824 | | related to bingo; |
---|
825 | 825 | | (8) fees for callers, cashiers, ushers, janitorial |
---|
826 | 826 | | services, and utility supplies and services; |
---|
827 | 827 | | (9) license fees; |
---|
828 | 828 | | (10) attending a bingo seminar or convention required |
---|
829 | 829 | | under Section 2001.107; and |
---|
830 | 830 | | (11) debit card transaction fees and electronic funds |
---|
831 | 831 | | transfer fees. |
---|
832 | 832 | | SECTION 36. Section 2001.459(a), Occupations Code, is |
---|
833 | 833 | | amended to read as follows: |
---|
834 | 834 | | (a) The following items of expense incurred or paid in |
---|
835 | 835 | | connection with the conduct of bingo must be paid from an |
---|
836 | 836 | | organization's bingo account: |
---|
837 | 837 | | (1) advertising, including the cost of printing bingo |
---|
838 | 838 | | gift certificates; |
---|
839 | 839 | | (2) security during a bingo occasion; |
---|
840 | 840 | | (3) the purchase or repair of bingo supplies and |
---|
841 | 841 | | equipment; |
---|
842 | 842 | | (4) prizes, other than authorized cash prizes; |
---|
843 | 843 | | (5) stated rental expenses; |
---|
844 | 844 | | (6) bookkeeping, legal, or accounting services; |
---|
845 | 845 | | (7) fees for callers, cashiers, and ushers; |
---|
846 | 846 | | (8) janitorial services; and |
---|
847 | 847 | | (9) license fees[; and |
---|
848 | 848 | | [(10) payment for services provided by a system |
---|
849 | 849 | | service provider]. |
---|
850 | 850 | | SECTION 37. Section 2001.502, Occupations Code, is amended |
---|
851 | 851 | | to read as follows: |
---|
852 | 852 | | Sec. 2001.502. PRIZE FEE. A licensed authorized |
---|
853 | 853 | | organization shall: |
---|
854 | 854 | | (1) collect from a person who wins a bingo prize of |
---|
855 | 855 | | more than $5 a fee in the amount of five percent of the amount or |
---|
856 | 856 | | value of the prize; and |
---|
857 | 857 | | (2) remit to the commission a fee in the amount of five |
---|
858 | 858 | | percent of the amount or value of all bingo prizes awarded. |
---|
859 | 859 | | SECTION 38. Sections 2001.505(a) and (b), Occupations Code, |
---|
860 | 860 | | are amended to read as follows: |
---|
861 | 861 | | (a) A licensed authorized organization conducting bingo |
---|
862 | 862 | | shall submit quarterly to the commission [and to the comptroller] a |
---|
863 | 863 | | report under oath stating: |
---|
864 | 864 | | (1) the amount of the gross receipts derived from |
---|
865 | 865 | | bingo; |
---|
866 | 866 | | (2) each item of expense incurred or paid; |
---|
867 | 867 | | (3) each item of expenditure made or to be made, the |
---|
868 | 868 | | name and address of each person to whom each item has been paid or is |
---|
869 | 869 | | to be paid, and a detailed description of the merchandise purchased |
---|
870 | 870 | | or the services rendered; |
---|
871 | 871 | | (4) the net proceeds derived from bingo; |
---|
872 | 872 | | (5) the use to which the proceeds have been or are to |
---|
873 | 873 | | be applied; and |
---|
874 | 874 | | (6) a list of prizes offered and given, with their |
---|
875 | 875 | | respective values. |
---|
876 | 876 | | (b) A license holder shall[: |
---|
877 | 877 | | [(1)] maintain records to substantiate the contents of |
---|
878 | 878 | | each report[; and |
---|
879 | 879 | | [(2) furnish a copy of each report to the appropriate |
---|
880 | 880 | | governing body]. |
---|
881 | 881 | | SECTION 39. Section 2001.603(b), Occupations Code, is |
---|
882 | 882 | | amended to read as follows: |
---|
883 | 883 | | (b) Not later than the 21st [14th] day after the date on |
---|
884 | 884 | | which the report is issued, the director shall give written notice |
---|
885 | 885 | | of the report to the person alleged to have committed the violation. |
---|
886 | 886 | | SECTION 40. Sections 2001.656(a), (b), and (d), Occupations |
---|
887 | 887 | | Code, are amended to read as follows: |
---|
888 | 888 | | (a) If a majority of the qualified voters voting on the |
---|
889 | 889 | | question in a legalization election vote in favor of legalization, |
---|
890 | 890 | | bingo is legalized throughout the political subdivision beginning |
---|
891 | 891 | | on the 14th [10th] day after the date the result of the election is |
---|
892 | 892 | | officially declared, except as otherwise provided as to a part of |
---|
893 | 893 | | the political subdivision for which Section 2001.657 requires a |
---|
894 | 894 | | contrary status. |
---|
895 | 895 | | (b) If a majority of the qualified voters voting on the |
---|
896 | 896 | | question in a prohibitory election vote in favor of prohibition, |
---|
897 | 897 | | bingo is prohibited throughout the political subdivision beginning |
---|
898 | 898 | | on the 14th [10th] day after the date the result of the election is |
---|
899 | 899 | | officially declared, except as otherwise provided as to a part of |
---|
900 | 900 | | the political subdivision for which Section 2001.657 requires a |
---|
901 | 901 | | contrary status. |
---|
902 | 902 | | (d) The governing body of a political subdivision in which a |
---|
903 | 903 | | bingo election has been held shall not later than the 14th [10th] |
---|
904 | 904 | | day after the date of the election give written notification to the |
---|
905 | 905 | | commission of the results of the election. If as a result of the |
---|
906 | 906 | | election bingo is legalized in the political subdivision, the |
---|
907 | 907 | | governing body shall furnish the commission with a map prepared by |
---|
908 | 908 | | the governing body indicating the boundaries of the political |
---|
909 | 909 | | subdivision in which bingo may be conducted. |
---|
910 | 910 | | SECTION 41. Section 411.108, Government Code, is amended by |
---|
911 | 911 | | adding Subsection (a-1) and amending Subsection (b) to read as |
---|
912 | 912 | | follows: |
---|
913 | 913 | | (a-1) The Texas Lottery Commission is entitled to obtain |
---|
914 | 914 | | from the department criminal history record information maintained |
---|
915 | 915 | | by the department that relates to a person licensed under Chapter |
---|
916 | 916 | | 2001, Occupations Code, or described by Section 2001.3025, |
---|
917 | 917 | | Occupations Code. |
---|
918 | 918 | | (b) Criminal history record information obtained by the |
---|
919 | 919 | | commission under Subsection (a) or (a-1) may not be released or |
---|
920 | 920 | | disclosed to any person except on court order or as provided by |
---|
921 | 921 | | Subsection (c). |
---|
922 | 922 | | SECTION 42. The following provisions of the Occupations |
---|
923 | 923 | | Code are repealed: |
---|
924 | 924 | | (1) Sections 2001.002(3) and (10); |
---|
925 | 925 | | (2) Section 2001.057(b); |
---|
926 | 926 | | (3) Section 2001.160(c); |
---|
927 | 927 | | (4) Section 2001.161(a); |
---|
928 | 928 | | (5) Section 2001.303; |
---|
929 | 929 | | (6) Section 2001.402(b); |
---|
930 | 930 | | (7) Section 2001.406(c); |
---|
931 | 931 | | (8) Section 2001.417; |
---|
932 | 932 | | (9) Section 2001.457(d); |
---|
933 | 933 | | (10) Section 2001.505(c); |
---|
934 | 934 | | (11) Section 2001.553(b); and |
---|
935 | 935 | | (12) Subchapter F, Chapter 2001. |
---|
936 | 936 | | SECTION 43. The Texas Lottery Commission shall adopt the |
---|
937 | 937 | | rules required by Chapter 2001, Occupations Code, as amended by |
---|
938 | 938 | | this Act, not later than April 1, 2010. |
---|
939 | 939 | | SECTION 44. (a) If on or after the effective date of this |
---|
940 | 940 | | Act a licensed authorized organization has a balance in its bingo |
---|
941 | 941 | | account of more than the maximum amount of operating capital |
---|
942 | 942 | | allowed by Chapter 2001, Occupations Code, as amended by this Act, |
---|
943 | 943 | | the organization shall distribute the funds in excess of the |
---|
944 | 944 | | organization's maximum operating capital allowed by Chapter 2001, |
---|
945 | 945 | | Occupations Code, as amended by this Act, not later than: |
---|
946 | 946 | | (1) the first anniversary of the effective date of |
---|
947 | 947 | | this Act if the excess amount is less than 200 percent of the |
---|
948 | 948 | | maximum amount of operating capital; |
---|
949 | 949 | | (2) the second anniversary of the effective date of |
---|
950 | 950 | | this Act if the excess amount is 200 percent or more but less than |
---|
951 | 951 | | 300 percent of the maximum amount of operating capital; or |
---|
952 | 952 | | (3) the third anniversary of the effective date of |
---|
953 | 953 | | this Act if the excess amount is 300 percent or more of the maximum |
---|
954 | 954 | | amount of operating capital. |
---|
955 | 955 | | (b) The Texas Lottery Commission may waive the requirements |
---|
956 | 956 | | of Subsection (a) of this section on application and a showing of |
---|
957 | 957 | | good cause by a licensed authorized organization. |
---|
958 | 958 | | (c) This section expires January 1, 2013. |
---|
959 | 959 | | SECTION 45. This Act takes effect October 1, 2009. |
---|
960 | 960 | | ______________________________ ______________________________ |
---|
961 | 961 | | President of the Senate Speaker of the House |
---|
962 | 962 | | I certify that H.B. No. 1474 was passed by the House on May 1, |
---|
963 | 963 | | 2009, by the following vote: Yeas 125, Nays 16, 1 present, not |
---|
964 | 964 | | voting. |
---|
965 | 965 | | ______________________________ |
---|
966 | 966 | | Chief Clerk of the House |
---|
967 | 967 | | I certify that H.B. No. 1474 was passed by the Senate on May |
---|
968 | 968 | | 26, 2009, by the following vote: Yeas 30, Nays 1. |
---|
969 | 969 | | ______________________________ |
---|
970 | 970 | | Secretary of the Senate |
---|
971 | 971 | | APPROVED: _____________________ |
---|
972 | 972 | | Date |
---|
973 | 973 | | _____________________ |
---|
974 | 974 | | Governor |
---|