Texas 2009 - 81st Regular

Texas House Bill HB3814 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R2653 YDB-D
2	2	By: Flores H.B. No. 3814
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to charitable bingo accounting procedures and the use of
8	8	bingo proceeds.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2001.451, Occupations Code, is amended
11	11	by amending Subsections (a), (c), (d), and (e) and adding
12	12	Subsections (g), (h), (i), and (j) to read as follows:
13	13	(a) A licensed authorized organization shall establish and
14	14	maintain one regular checking account designated as the
15	15	organization's "bingo account." The organization may [also]
16	16	maintain a separate [an] interest-bearing savings account
17	17	designated as the "bingo savings account."
18	18	(c) A licensed authorized organization may transfer [lend]
19	19	money from its general fund or other account to the organization's
20	20	[its] bingo account or to the bingo account of a unit of which the
21	21	organization is a member under Subchapter I-1, if applicable, if:
22	22	(1) the balance in the bingo account to which the funds
23	23	are transferred is less than the maximum amount permitted by this
24	24	section; and
25	25	(2) the organization notifies [requests and receives
26	26	the prior approval of] the commission of the transfer not later than
27	27	the 14th day after the date of the transfer. [Except as provided by
28	28	this section, no other funds may be deposited in the bingo account.]
29	29	(d) Except as permitted by Subsection (c), a [A] licensed
30	30	authorized organization may not commingle gross receipts derived
31	31	from the conduct of bingo with other funds of the organization.
32	32	(e) Except as permitted by Subsection (c) of this section
33	33	and by Section 2001.453(2), a [Sections 2001.453(a)(2) and (3),
34	34	the] licensed authorized organization may not transfer gross
35	35	receipts derived from the conduct of bingo to another account
36	36	maintained by the organization.
37	37	(g) The bingo operations of a licensed authorized
38	38	organization must:
39	39	(1) result in net proceeds over the organization's
40	40	license period; or
41	41	(2) if the organization has a two-year license, result
42	42	in net proceeds over each 12-month period that ends on an
43	43	anniversary of the date the two-year license was issued.
44	44	(h) Except as provided by Subsection (i), a licensed
45	45	authorized organization or a unit of licensed authorized
46	46	organizations may retain operating capital in the organization's or
47	47	unit's bingo account in an amount that:
48	48	(1) is equal to the organization's or unit's actual
49	49	average bingo expenses per quarter based on the preceding license
50	50	period, excluding prizes paid; and
51	51	(2) does not exceed a total of $50,000 for a single
52	52	organization or $50,000 for each member of a unit.
53	53	(i) The commission shall adopt rules allowing a licensed
54	54	authorized organization to retain a maximum amount of operating
55	55	capital in the bingo account in excess of the amount provided by
56	56	Subsection (h) if the organization:
57	57	(1) has conducted bingo for less than one year;
58	58	(2) experiences circumstances beyond the control of
59	59	the organization, including force majeure, that necessitate an
60	60	increase in operating capital; or
61	61	(3) provides to the commission a credible business
62	62	plan for the conduct of bingo or for the organization's existing or
63	63	planned charitable purposes that an increase in operating capital
64	64	will reasonably further.
65	65	(j) A licensed authorized organization may apply to the
66	66	commission for a waiver of the requirements of this section and
67	67	Section 2001.457. The commission may grant the waiver on a showing
68	68	of good cause by the organization that compliance with this section
69	69	and Section 2001.457 is detrimental to the organization's existing
70	70	or planned charitable purposes. An organization applying for a
71	71	waiver establishes good cause by providing to the commission:
72	72	(1) credible evidence of circumstances beyond the
73	73	control of the organization, including force majeure; or
74	74	(2) a credible business plan for the organization's
75	75	conduct of bingo or the organization's existing or planned
76	76	charitable purposes.
77	77	SECTION 2. Sections 2001.452(a) and (c), Occupations Code,
78	78	are amended to read as follows:
79	79	(a) Funds from the bingo account must be withdrawn by
80	80	electronic funds transfer or by preprinted, consecutively numbered
81	81	checks or withdrawal slips, signed by an authorized representative
82	82	of the licensed authorized organization and made payable to a
83	83	person. A check or withdrawal slip may not be made payable to
84	84	"cash," "bearer," or a fictitious payee. The nature of the payment
85	85	made must also be noted on the face of the check or withdrawal slip.
86	86	The purpose, amount, and payee for each electronic funds transfer
87	87	must be recorded in accordance with rules adopted by the
88	88	commission.
89	89	(c) A licensed authorized organization shall [keep and]
90	90	account for all checks and withdrawal slips, including voided
91	91	checks and withdrawal slips.
92	92	SECTION 3. Section 2001.453, Occupations Code, is amended
93	93	to read as follows:
94	94	Sec. 2001.453. AUTHORIZED USES OF BINGO ACCOUNT. [(a)] A
95	95	licensed authorized organization may draw a check on its bingo
96	96	account only for:
97	97	(1) the payment of necessary or [and] reasonable bona
98	98	fide expenses, including compensation of personnel, as permitted
99	99	under Section 2001.458 incurred and paid in connection with the
100	100	conduct of bingo; or
101	101	(2) the disbursement of net proceeds derived from the
102	102	conduct of bingo as provided by this subchapter [to charitable
103	103	purposes; or
104	104	[(3) the transfer of net proceeds derived from the
105	105	conduct of bingo to the organization's bingo savings account
106	106	pending a disbursement to a charitable purpose.
107	107	[(b) A licensed authorized organization must make the
108	108	disbursement of net proceeds on deposit in the bingo savings
109	109	account to a charitable purpose by transferring the intended
110	110	disbursement back into the organization's bingo account and then
111	111	withdrawing an amount by a check drawn on the bingo account].
112	112	SECTION 4. Sections 2001.457(a), (b), and (c), Occupations
113	113	Code, are amended to read as follows:
114	114	(a) Before the end of each quarter, a licensed authorized
115	115	organization shall disburse all [for charitable purposes an amount
116	116	not less than 35 percent] of the organization's net proceeds
117	117	[adjusted gross receipts] from the preceding quarter, other than
118	118	amounts retained under Section 2001.451, as provided by this
119	119	subchapter [less the amount of authorized expenses not to exceed
120	120	six percent of the gross receipts].
121	121	(b) If a licensed authorized organization fails to meet the
122	122	requirements of Subsection (a) [this section] for a quarter, the
123	123	commission in applying appropriate sanctions shall [may] consider
124	124	whether, taking into account the amount required to be disbursed
125	125	[distributed] during that quarter and the three preceding quarters
126	126	[and the charitable distributions for each of those quarters], the
127	127	organization has disbursed [distributed] a total amount sufficient
128	128	to have met the disbursement [35 percent] requirement for that
129	129	quarter and the three preceding quarters combined.
130	130	(c) A licensed authorized organization that has ceased to
131	131	conduct bingo for any reason and that has unexpended bingo funds
132	132	shall disburse those funds as provided by this subchapter [to
133	133	charitable purposes] before the end of the next calendar quarter
134	134	after the calendar quarter in which the organization ceases to
135	135	conduct bingo.
136	136	SECTION 5. Section 2001.458(a), Occupations Code, is
137	137	amended to read as follows:
138	138	(a) An item of expense may not be incurred or paid in
139	139	connection with the conduct of bingo except an expense that is
140	140	reasonable or necessary to conduct bingo, including an expense for:
141	141	(1) advertising, including the cost of printing bingo
142	142	gift certificates;
143	143	(2) security;
144	144	(3) repairs to premises and equipment;
145	145	(4) bingo supplies and equipment;
146	146	(5) prizes;
147	147	(6) stated rental or mortgage and insurance expenses;
148	148	(7) bookkeeping, legal, or accounting services
149	149	related to bingo;
150	150	(8) fees for callers, cashiers, ushers, janitorial
151	151	services, and utility supplies and services;
152	152	(9) license fees;
153	153	(10) attending a bingo seminar or convention required
154	154	under Section 2001.107; and
155	155	(11) debit card transaction fees and electronic funds
156	156	transfer fees.
157	157	SECTION 6. Section 2001.459(a), Occupations Code, is
158	158	amended to read as follows:
159	159	(a) The following items of expense incurred or paid in
160	160	connection with the conduct of bingo must be paid from an
161	161	organization's bingo account:
162	162	(1) advertising, including the cost of printing bingo
163	163	gift certificates;
164	164	(2) security during a bingo occasion;
165	165	(3) the purchase or repair of bingo supplies and
166	166	equipment;
167	167	(4) prizes, other than authorized cash prizes;
168	168	(5) stated rental expenses;
169	169	(6) bookkeeping, legal, or accounting services;
170	170	(7) fees for callers, cashiers, and ushers;
171	171	(8) janitorial services; and
172	172	(9) license fees[; and
173	173	[(10) payment for services provided by a system
174	174	service provider].
175	175	SECTION 7. Sections 2001.505(a) and (b), Occupations Code,
176	176	are amended to read as follows:
177	177	(a) A licensed authorized organization conducting bingo
178	178	shall submit quarterly to the commission [and to the comptroller] a
179	179	report under oath stating:
180	180	(1) the amount of the gross receipts derived from
181	181	bingo;
182	182	(2) each item of expense incurred or paid;
183	183	(3) each item of expenditure made or to be made, the
184	184	name and address of each person to whom each item has been paid or is
185	185	to be paid, and a detailed description of the merchandise purchased
186	186	or the services rendered;
187	187	(4) the net proceeds derived from bingo;
188	188	(5) the use to which the proceeds have been or are to
189	189	be applied; and
190	190	(6) a list of prizes offered and given, with their
191	191	respective values.
192	192	(b) A license holder shall[:
193	193	[(1)] maintain records to substantiate the contents of
194	194	each report[; and
195	195	[(2) furnish a copy of each report to the appropriate
196	196	governing body].
197	197	SECTION 8. The following provisions of the Occupations Code
198	198	are repealed:
199	199	(1) Section 2001.406(c);
200	200	(2) Section 2001.457(d); and
201	201	(3) Section 2001.505(c).
202	202	SECTION 9. (a) If on or after the effective date of this Act
203	203	a licensed authorized organization has a balance in its bingo
204	204	account of more than the maximum amount of operating capital
205	205	allowed by Chapter 2001, Occupations Code, as amended by this Act,
206	206	the organization shall disburse the funds in excess of the
207	207	organization's maximum operating capital allowed by Chapter 2001,
208	208	Occupations Code, as amended by this Act, not later than:
209	209	(1) the first anniversary of the effective date of
210	210	this Act if the excess amount is less than 200 percent of the
211	211	maximum amount of operating capital;
212	212	(2) the second anniversary of the effective date of
213	213	this Act if the excess amount is 200 percent or more but less than
214	214	300 percent of the maximum amount of operating capital; or
215	215	(3) the third anniversary of the effective date of
216	216	this Act if the excess amount is 300 percent or more of the maximum
217	217	amount of operating capital.
218	218	(b) The Texas Lottery Commission may waive the requirements
219	219	of Subsection (a) of this section on application and a showing of
220	220	good cause by a licensed authorized organization.
221	221	(c) This section expires January 1, 2013.
222	222	SECTION 10. This Act takes effect October 1, 2009.