81R2661 YDB-D
By: Flores H.B. No. 3815
A BILL TO BE ENTITLED
AN ACT
relating to the operation and regulation of charitable bingo.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2001.002, Occupations Code, is amended
by adding Subdivisions (4-a), (8-a), and (25-a) and amending
Subdivision (11) to read as follows:
(4-a) "Bingo chairperson" means an officer of a
licensed authorized organization who is designated in writing by
the organization as responsible for overseeing the organization's
bingo activities and reporting to the membership relating to those
activities.
(8-a) "Crime of moral turpitude" means:
(A) a felony;
(B) a gambling offense;
(C) criminal fraud;
(D) forgery;
(E) theft;
(F) an offense that involves filing false
information with a governmental agency; or
(G) any offense that:
(i) is classified in this state as a Class A
misdemeanor; and
(ii) puts the honesty and integrity of the
individual who committed the offense in question.
(11) "Fraternal organization" means any of the
following other than an organization whose members are
predominantly veterans or dependents of veterans of the armed
services of the United States:
(A) a nonprofit organization organized to
perform and engaged primarily in performing charitable,
benevolent, patriotic, employment-related, or educational
functions that meet the other requirements of this chapter; [or]
(B) a nonprofit National Historical District
Association representing the owners and lessees of a majority of
the real property located in a National Historical District
designated for not less than three [five] years by the National
Register of Historic Places, Heritage Conservation and Recreation
Service of the United States Department of the Interior, if the
association's net proceeds are used for restoration, construction,
maintenance, and security in the district; or
(C) an organization that is exempt from federal
income taxes under Section 501(a), Internal Revenue Code of 1986,
by being listed as an exempt organization under Section 501(c)(2),
(3), (4), (5), (6), (7), (8), (9), (10), or (13), Internal Revenue
Code of 1986. [The term "fraternal organization" does not include
an organization whose members are predominantly veterans or
dependents of veterans of the armed services of the United States.]
(25-a) "Regular license" means a license to conduct
bingo that is issued by the commission and that expires on the first
or second anniversary of the date of issuance unless revoked or
suspended before that date by the commission. The term includes an
annual license.
SECTION 2. Section 2001.101(a), Occupations Code, is
amended to read as follows:
(a) The commission may license a person who is an authorized
organization eligible for a license to conduct bingo if the person
is:
(1) a religious society that has existed in this state
for at least three [eight] years;
(2) a nonprofit organization:
(A) whose predominant activities are for the
support of medical research or treatment programs; and
(B) that for at least three years:
(i) must have had a governing body or
officers elected by a vote of members or by a vote of delegates
elected by the members; or
(ii) must have been affiliated with a state
or national organization organized to perform the same purposes as
the nonprofit organization;
(3) a fraternal organization;
(4) a veterans organization that has existed in this
state for at least three years; [or]
(5) a volunteer fire department that has existed in
this state for at least three years; or
(6) a volunteer emergency medical services provider
that has existed in this state for at least three years.
SECTION 3. Sections 2001.102(a) and (b), Occupations Code,
are amended to read as follows:
(a) An applicant for a license to conduct bingo must file
with the commission an [a written, executed, and verified]
application on a form prescribed by the commission.
(b) The application must include:
(1) the name and address of the applicant;
(2) the names and addresses of the applicant's
officers and directors;
(3) the address of the premises where and the time when
the applicant intends to conduct bingo under the license sought;
(4) the name and address of the licensed commercial
lessor of the premises, if the applicant intends to lease premises
to conduct bingo from a person other than an authorized
organization;
(5) [the capacity or potential capacity for public
assembly in any premises owned or occupied by the applicant;
[(6) the amount of rent to be paid or other
consideration to be given, directly or indirectly, for each
occasion for use of the premises of another licensed authorized
organization or for use of the premises of a licensed commercial
lessor;
[(7) all other items of expense intended to be
incurred or paid in connection with conducting, promoting, and
administering bingo and the names and addresses of the persons to
whom, and the purposes for which, the expenses are to be paid;
[(8) the specific purposes to and the manner in which
the net proceeds of bingo are to be devoted;
[(9)] a statement that the net proceeds of bingo will
go to one or more of the authorized charitable purposes under this
chapter;
(6) [(10)] a designation of the organization's bingo
chairperson [one or more active members of the applicant
organization] under whom bingo will be conducted accompanied by a
statement signed by the chairperson [each designated member]
stating that the chairperson [member] will be responsible for the
conduct of bingo under the terms of the license and this chapter;
(7) [(11) a statement that a copy of the application
has been sent to the appropriate governing body;
[(12) the name and address of each person who will work
at the proposed bingo occasion, the nature of the work to be
performed, and a statement as to whether the person has been
convicted of a felony, a gambling offense, criminal fraud, or a
crime of moral turpitude; and
[(13)] sufficient facts relating to the applicant's
incorporation and organization to enable the commission to
determine whether the applicant is an authorized organization;
(8) a copy of the applicant organization's most
recently filed Internal Revenue Service Form 990, if applicable;
(9) a letter of good standing from the applicant
organization's parent organization, if the organization receives
an exemption from federal income taxes as a member of a group of
organizations;
(10) copies of the applicant organization's organizing
instruments, including any bylaws, constitution, charter, and
articles of incorporation;
(11) verification of the applicant organization's good
standing with the secretary of state if the organization is
organized under the law of this state; and
(12) information necessary to conduct criminal
background checks on the applicant organization's officers and
directors.
SECTION 4. Section 2001.103(e), Occupations Code, is
amended to read as follows:
(e) Notwithstanding Subsection (c), an authorized
organization that holds a regular license to conduct bingo may
receive not more than 24 [12] temporary licenses during the
12-month period following the issuance or renewal of the license.
SECTION 5. Sections 2001.104(b) and (d), Occupations Code,
are amended to read as follows:
(b) The commission by rule shall establish procedures to
determine if the appropriate license fee [At the end of the license
period the license holder and the commission shall compute the
amount of gross receipts actually recorded during the license
period to determine if the appropriate fee amount] was paid.
(d) An applicant shall pay the fees established under
Subsection (a) annually. An applicant for a license or renewal of a
license may obtain a license that is effective for two years by
paying an amount equal to two times the amount of the annual license
fee, or by paying the license fee for the first year at the time the
applicant submits the application and the fee for the second year
not later than the first anniversary of the date the license becomes
effective [plus $25].
SECTION 6. Section 2001.105(b), Occupations Code, is
amended to read as follows:
(b) The commission may not issue a license to an authorized
organization to conduct bingo if an officer or director of the
organization has been convicted of a felony, criminal fraud, a
gambling or gambling-related offense, or a crime of moral turpitude
if less than 10 years has elapsed since the termination of a
sentence, parole, mandatory supervision, or community supervision
served for the offense.
SECTION 7. Section 2001.106, Occupations Code, is amended
to read as follows:
Sec. 2001.106. FORM AND CONTENTS OF LICENSE. A license to
conduct bingo must include:
(1) the name and address of the license holder;
(2) the names and addresses of the member or members of
the license holder under whom the bingo will be conducted; and
(3) the address [an indication] of the premises where
and the time when bingo is to be conducted[;
[(4) the specific purposes to which the net proceeds
of bingo are to be devoted; and
[(5) a statement of whether a prize is to be offered
and the amount of any authorized prize].
SECTION 8. Section 2001.107(a), Occupations Code, is
amended to read as follows:
(a) Unless the organization is a member of a unit that
designates a unit manager under Section 2001.437, the bingo
chairperson for a licensed authorized organization [The person
designated under Section 2001.102(b)(10)] shall complete the
[eight hours of] training required [as provided] by commission
rule. For a unit operating under Subchapter I-1, the unit manager
shall complete the training if the unit designates a unit manager
under Section 2001.437.
SECTION 9. Sections 2001.158(b) and (d), Occupations Code,
are amended to read as follows:
(b) The commission by rule shall establish procedures for
determining if the appropriate license fee [At the end of the
license period, the license holder and the commission shall compute
the amount of the gross rentals actually recorded during the
license period to determine if the appropriate fee amount] was
paid.
(d) An applicant for a commercial lessor license shall pay
the fees established under Subsection (a) annually. An applicant
for a license or renewal of a license may obtain a license that is
effective for two years by paying an amount equal to two times the
amount of the annual license fee, or by paying the license fee for
the first year at the time the applicant submits the application and
the license fee for the second year not later than the first
anniversary of the date the license becomes effective [plus $25].
SECTION 10. The heading to Section 2001.159, Occupations
Code, is amended to read as follows:
Sec. 2001.159. LICENSE ISSUANCE OR RENEWAL.
SECTION 11. Section 2001.159(a), Occupations Code, is
amended to read as follows:
(a) The commission shall issue or renew a commercial lessor
license if the commission determines that:
(1) the applicant has paid the license fee as provided
by Section 2001.158;
(2) the applicant qualifies to be licensed under this
chapter;
(3) [the applicant satisfies the requirements for a
commercial lessor under this subchapter;
[(4)] the rent to be charged is fair and reasonable
[and will be charged and collected in compliance with Section
2001.406];
(4) [(5) there is no diversion of the funds of the
proposed lessee from the lawful purposes under this chapter;
[(6)] the person whose signature or name appears in
the application is in all respects the real party in interest and is
not an undisclosed agent or trustee for the real party in interest;
and
(5) [(7)] the applicant will lease the premises for
the conduct of bingo in accordance with this chapter.
SECTION 12. Section 2001.203, Occupations Code, is amended
to read as follows:
Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An
applicant for a manufacturer's license must file with the
commission an [a written verified] application on a form prescribed
by the commission.
(b) The application must include:
(1) the name and address of the applicant and the name
and address of each of its locations where bingo supplies or
equipment are manufactured;
(2) a full description of each type of bingo supply or
equipment that the applicant intends to manufacture or market in
this state and the brand name, if any, under which each item will be
sold;
(3) [the name and address of the applicant and] if the
applicant:
(A) is not a corporation, the name and home
address of each owner; or
(B) is a corporation, the name and home address
of each officer and director and each person owning more than 10
percent [or more] of a class of stock in the corporation;
(4) if the applicant is a foreign corporation or other
foreign legal entity, the name, business name and address, and
[home] address of its registered agent for service in this state;
(5) the name and address of each manufacturer,
supplier, and distributor in which the applicant has a financial
interest and the details of that financial interest, including any
indebtedness between the applicant and the manufacturer, supplier,
or distributor of $5,000 [$500] or more;
(6) information regarding whether the applicant or a
person required to be named in the application has been convicted in
this state or another state of a felony, criminal fraud, a gambling
or gambling-related offense, or a crime of moral turpitude;
(7) information regarding whether the applicant or a
person required to be named in the application is an owner, officer,
director, shareholder, agent, or employee of a licensed commercial
lessor or conducts, promotes, administers, or assists in
conducting, promoting, or administering bingo for which a license
is required by this chapter;
(8) information regarding whether the applicant or a
person required to be named in the application is a public officer
or public employee in this state;
(9) the name of each state in which the applicant is or
has been licensed to manufacture, distribute, or supply bingo
equipment or supplies, each license number, the period of time
licensed under each license, and whether a license has been
revoked, suspended, withdrawn, canceled, or surrendered and, if so,
the reasons for the action taken;
(10) information regarding whether the applicant or a
person required to be named in the application is or has been a
professional gambler or gambling promoter;
(11) the names and addresses of each manufacturer,
supplier, or distributor of bingo equipment or supplies in which
the applicant or a person required to be named in the application is
an owner, officer, shareholder, director, agent, or employee; and
(12) any other information the commission requests.
SECTION 13. Section 2001.208(b), Occupations Code, is
amended to read as follows:
(b) The application must include:
(1) the full name and address of the applicant;
(2) the name and address of each location operated by
the distributor from which bingo supplies or equipment are
distributed or at which bingo supplies or equipment are stored;
(3) if a noncorporate distributor, the name and home
address of each owner;
(4) if a corporate distributor, the name and home
address of each officer or director and of each person owning more
than [at least] 10 percent of a class of stock in the corporation;
(5) if a foreign corporation or other foreign legal
entity, the name, business name and address, and [home] address of
its registered agent for service in this state;
(6) a full description of the type of bingo supply or
equipment that the applicant intends to store or distribute in this
state and the name of the manufacturer of each item and the brand
name, if any, under which the item will be sold or marketed;
(7) the name and address of a manufacturer, supplier,
or distributor in which the applicant has a financial interest and
the details of that financial interest, including an indebtedness
between the applicant and the manufacturer, supplier, or
distributor of $5,000 [$500] or more;
(8) information regarding whether the applicant or a
person required to be named in the application has been convicted in
this state or another state of a felony, criminal fraud, a gambling
or gambling-related offense, or a crime of moral turpitude;
(9) information regarding whether the applicant or a
person required to be named in the application is an owner, officer,
director, shareholder, agent, or employee of a licensed commercial
lessor or conducts, promotes, administers, or assists in
conducting, promoting, or administering bingo for which a license
is required under this chapter;
(10) information regarding whether the applicant or a
person required to be named in the application is a public officer
or public employee in this state;
(11) the name of each state in which the applicant is
or has been licensed to manufacture, distribute, or supply bingo
equipment or supplies, each license number, the period of time
licensed under each license, and whether a license was revoked,
suspended, withdrawn, canceled, or surrendered and, if so, the
reasons for the action taken;
(12) information regarding whether the applicant or a
person required to be named in the application is or has been a
professional gambler or gambling promoter;
(13) the name and address of each manufacturer,
supplier, or distributor of bingo equipment or supplies in which
the applicant or a person required to be named in the application is
an owner, officer, shareholder, director, agent, or employee; and
(14) any other information the commission requests.
SECTION 14. Section 2001.306(c), Occupations Code, is
amended to read as follows:
(c) The holder of a license to conduct bingo may not change
the location at which it conducts bingo until it has:
(1) returned [surrendered] its original license if
available, or certified that the license is not available; and
(2) received an amended license for the new location.
SECTION 15. Section 2001.313, Occupations Code, is amended
by amending Subsections (a), (b), (d), (e), (f), and (g) and adding
Subsections (b-1), (h), and (i) to read as follows:
(a) To minimize duplicate criminal history background
checks by the commission and the costs incurred by organizations
and individuals, the commission shall maintain a registry of
individuals [persons] on whom the commission has conducted a
criminal history background check and who are approved to be
involved in the conduct of bingo or to act as a bingo operator.
(b) An individual [A person] listed in the registry may be
involved in the conduct of bingo or act as an operator at any
location at which bingo is lawfully conducted.
(b-1) An individual's listing on the registry expires on the
third anniversary of the date the individual was initially included
on the registry. The individual may renew the listing before the
expiration date. If the individual fails to renew the listing, the
commission shall remove the individual's name from the registry.
An individual whose name is removed from the registry may reapply
for listing on the registry.
(d) An individual [A person] who is not listed on the
registry established by this section may not act, and a licensed
authorized organization may not allow the individual to act, as an
operator, manager, cashier, usher, caller, bingo chairperson,
bookkeeper, or salesperson for the [a] licensed authorized
organization.
(e) The commission may refuse to add an individual's [a
person's] name to, or remove an individual's [a person's] name from,
the registry established by this section if, after notice and, if
requested by the individual, a hearing, the individual [person] is
finally determined to have:
(1) been convicted of an offense listed under Section
2001.105(b);
(2) converted bingo equipment in a premises to an
improper use;
(3) converted funds that are in, or that should have
been in, the bingo account of any licensed authorized organization;
(4) taken any action, individually or in concert with
another person, that affects the integrity of any bingo game to
which this chapter applies; [or]
(5) acted as an operator, manager, cashier, usher,
caller, bingo chairperson, bookkeeper, or salesperson for a
licensed authorized organization without being listed on the
registry established under this section;
(6) failed to provide a complete application; or
(7) participated in any violation of this chapter or
rules adopted by the commission for the administration of this
chapter.
(f) A licensed authorized organization shall report to the
commission or its designee the discovery of any conduct on the part
of an individual [a person] registered or required to be registered
under this section where there is substantial basis for believing
that the conduct would constitute grounds for removal of the
individual's [person's] name from, or refusal to add the
individual's [person's] name to, the registry established by this
section. A statement made in good faith to the commission or to an
adjudicative body in connection with any such report may not be the
basis for an action for defamation of character.
(g) An individual [A person] who has been finally determined
to have taken action prohibited by Subsection (e)(2), (3), (4),
[or] (5), (6), or (7) cannot be listed on the registry of approved
bingo workers and cannot work as a bingo worker for one year from
the date of such determination. Upon expiration of the one-year
period, the individual [person] is eligible for listing on the
registry provided a license holder [licensee] subject to this
chapter makes application to list the individual [person]. In such
event, the commission shall take into consideration the facts and
circumstances that occurred that led to the applicable action under
Subsections (e)(2)-(7) [(e)(2)-(5)] in deciding whether to list the
individual [person] on the registry.
(h) A licensed authorized organization may employ an
individual who is not on the registry established by this section as
an operator, manager, cashier, usher, caller, or salesperson on a
provisional basis if the individual is awaiting the results of a
background check by the commission:
(1) for a period not to exceed 14 days if the
individual is a resident of this state; or
(2) for a period to be established by commission rule
if the individual is not a resident of this state.
(i) An individual who has been removed from the registry
under Subsection (e) and has not subsequently been listed on the
registry under Subsection (g) may not be employed under Subsection
(h).
SECTION 16. Subchapter G, Chapter 2001, Occupations Code,
is amended by adding Sections 2001.315 and 2001.316 to read as
follows:
Sec. 2001.315. LATE LICENSE RENEWAL. (a) A person who fails
to renew the person's license under this chapter before the date the
license expires may renew the license after the expiration date by:
(1) filing a license renewal application with the
commission not later than the 14th day after the date the license
expires, paying the applicable annual license fee, and paying a
late license renewal fee equal to 10 percent of the annual license
fee; or
(2) filing a license renewal application with the
commission not later than the 60th day after the date the license
expires, paying the applicable annual license fee, and paying a
late license renewal fee equal to 10 percent of the annual license
fee for each 14-day period occurring after the date the license
expires and before the date the renewal application is filed with
the commission.
(b) A person who files a renewal application with the
commission under Subsection (a) may continue to perform the bingo
activities authorized under the license as if the license has not
expired until the license is renewed or renewal of the license is
denied.
(c) To renew a license after the 60th day after the date the
license expires, the person must file an application for an
original license and cease all bingo activities for which the
license is required as of the 61st day after the date the license
expires until a new license is issued.
Sec. 2001.316. DELIVERY OF COMMISSION NOTICE. If notice
under this chapter is required to be given to an authorized
organization, the commission shall send the notice to the bingo
chairperson of the authorized organization and to the appropriate
commercial lessor, if applicable.
SECTION 17. Section 2001.407(a), Occupations Code, is
amended to read as follows:
(a) A licensed manufacturer may furnish, by sale or
otherwise, bingo equipment or supplies to a licensed distributor.
A [Except as provided by Section 2001.257(b), a] licensed
manufacturer may not furnish, by sale or otherwise, bingo equipment
or supplies to a person other than a licensed distributor.
SECTION 18. Section 2001.411, Occupations Code, is amended
by adding Subsection (c-1) to read as follows:
(c-1) An organization may designate as members of the
organization one or more individuals who elect to become members,
including all of the organization's directors, and the designated
members are bona fide members of the organization for purposes of
this section and other law.
SECTION 19. The following provisions of the Occupations
Code are repealed:
(1) Sections 2001.002(3) and (10);
(2) Section 2001.057(b);
(3) Section 2001.160(c);
(4) Section 2001.161(a);
(5) Section 2001.204;
(6) Section 2001.305;
(7) Section 2001.553(b); and
(8) Subchapter F, Chapter 2001.
SECTION 20. The Texas Lottery Commission shall adopt the
rules required by Chapter 2001, Occupations Code, as amended by
this Act, not later than April 1, 2010.
SECTION 21. (a) The change in law made by this Act applies
only to an offense committed on or after the effective date of this
Act. For purposes of this section, an offense is committed before
the effective date of this Act if any element of the offense occurs
before that date.
(b) An offense committed before the effective date of this
Act is covered by the law in effect when the offense was committed,
and the former law is continued in effect for that purpose.
SECTION 22. This Act takes effect October 1, 2009.