Texas House Bill HB3814

Texas 2009 - 81st Regular

Caption

Relating to charitable bingo accounting procedures and the use of bingo proceeds.

Impact

The proposed changes significantly impact how charities report their bingo income and expenditures. Organizations are required to submit detailed quarterly reports outlining gross receipts, expenses, and net proceeds from bingo activities. Additionally, the bill emphasizes that at least 35% of net proceeds must be allocated for charitable purposes, thus reinforcing the obligation of licensed organizations to ensure that funds generated from bingo contribute to the community.

Summary

House Bill 3814 seeks to amend the Occupations Code regarding accounting procedures for charitable bingo operations and the proper usage of bingo proceeds. The bill introduces specific protocols for organizations conducting bingo games, mandating them to maintain distinct 'bingo accounts' for financial transactions. It stipulates that all expenses related to bingo operations must be reasonable and necessary, which aims to promote transparency and accountability within bingo organizations.

Contention

While the bill is largely viewed as a step towards enhancing the oversight of charitable bingo, there are concerns regarding the operational burden it may impose on smaller organizations. Some stakeholders argue that the requirements for record-keeping and financial transparency could lead to increased administrative costs that could stifle participation from less resourced charities. Moreover, the possibility of waivers for certain requirements under specific conditions may generate debate over the equitable treatment of different organizations.