Texas 2009 - 81st Regular

Texas House Bill HB3815 Compare Versions

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11 81R2661 YDB-D
22 By: Flores H.B. No. 3815
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the operation and regulation of charitable bingo.
88 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
99 SECTION 1. Section 2001.002, Occupations Code, is amended
1010 by adding Subdivisions (4-a), (8-a), and (25-a) and amending
1111 Subdivision (11) to read as follows:
1212 (4-a) "Bingo chairperson" means an officer of a
1313 licensed authorized organization who is designated in writing by
1414 the organization as responsible for overseeing the organization's
1515 bingo activities and reporting to the membership relating to those
1616 activities.
1717 (8-a) "Crime of moral turpitude" means:
1818 (A) a felony;
1919 (B) a gambling offense;
2020 (C) criminal fraud;
2121 (D) forgery;
2222 (E) theft;
2323 (F) an offense that involves filing false
2424 information with a governmental agency; or
2525 (G) any offense that:
2626 (i) is classified in this state as a Class A
2727 misdemeanor; and
2828 (ii) puts the honesty and integrity of the
2929 individual who committed the offense in question.
3030 (11) "Fraternal organization" means any of the
3131 following other than an organization whose members are
3232 predominantly veterans or dependents of veterans of the armed
3333 services of the United States:
3434 (A) a nonprofit organization organized to
3535 perform and engaged primarily in performing charitable,
3636 benevolent, patriotic, employment-related, or educational
3737 functions that meet the other requirements of this chapter; [or]
3838 (B) a nonprofit National Historical District
3939 Association representing the owners and lessees of a majority of
4040 the real property located in a National Historical District
4141 designated for not less than three [five] years by the National
4242 Register of Historic Places, Heritage Conservation and Recreation
4343 Service of the United States Department of the Interior, if the
4444 association's net proceeds are used for restoration, construction,
4545 maintenance, and security in the district; or
4646 (C) an organization that is exempt from federal
4747 income taxes under Section 501(a), Internal Revenue Code of 1986,
4848 by being listed as an exempt organization under Section 501(c)(2),
4949 (3), (4), (5), (6), (7), (8), (9), (10), or (13), Internal Revenue
5050 Code of 1986. [The term "fraternal organization" does not include
5151 an organization whose members are predominantly veterans or
5252 dependents of veterans of the armed services of the United States.]
5353 (25-a) "Regular license" means a license to conduct
5454 bingo that is issued by the commission and that expires on the first
5555 or second anniversary of the date of issuance unless revoked or
5656 suspended before that date by the commission. The term includes an
5757 annual license.
5858 SECTION 2. Section 2001.101(a), Occupations Code, is
5959 amended to read as follows:
6060 (a) The commission may license a person who is an authorized
6161 organization eligible for a license to conduct bingo if the person
6262 is:
6363 (1) a religious society that has existed in this state
6464 for at least three [eight] years;
6565 (2) a nonprofit organization:
6666 (A) whose predominant activities are for the
6767 support of medical research or treatment programs; and
6868 (B) that for at least three years:
6969 (i) must have had a governing body or
7070 officers elected by a vote of members or by a vote of delegates
7171 elected by the members; or
7272 (ii) must have been affiliated with a state
7373 or national organization organized to perform the same purposes as
7474 the nonprofit organization;
7575 (3) a fraternal organization;
7676 (4) a veterans organization that has existed in this
7777 state for at least three years; [or]
7878 (5) a volunteer fire department that has existed in
7979 this state for at least three years; or
8080 (6) a volunteer emergency medical services provider
8181 that has existed in this state for at least three years.
8282 SECTION 3. Sections 2001.102(a) and (b), Occupations Code,
8383 are amended to read as follows:
8484 (a) An applicant for a license to conduct bingo must file
8585 with the commission an [a written, executed, and verified]
8686 application on a form prescribed by the commission.
8787 (b) The application must include:
8888 (1) the name and address of the applicant;
8989 (2) the names and addresses of the applicant's
9090 officers and directors;
9191 (3) the address of the premises where and the time when
9292 the applicant intends to conduct bingo under the license sought;
9393 (4) the name and address of the licensed commercial
9494 lessor of the premises, if the applicant intends to lease premises
9595 to conduct bingo from a person other than an authorized
9696 organization;
9797 (5) [the capacity or potential capacity for public
9898 assembly in any premises owned or occupied by the applicant;
9999 [(6) the amount of rent to be paid or other
100100 consideration to be given, directly or indirectly, for each
101101 occasion for use of the premises of another licensed authorized
102102 organization or for use of the premises of a licensed commercial
103103 lessor;
104104 [(7) all other items of expense intended to be
105105 incurred or paid in connection with conducting, promoting, and
106106 administering bingo and the names and addresses of the persons to
107107 whom, and the purposes for which, the expenses are to be paid;
108108 [(8) the specific purposes to and the manner in which
109109 the net proceeds of bingo are to be devoted;
110110 [(9)] a statement that the net proceeds of bingo will
111111 go to one or more of the authorized charitable purposes under this
112112 chapter;
113113 (6) [(10)] a designation of the organization's bingo
114114 chairperson [one or more active members of the applicant
115115 organization] under whom bingo will be conducted accompanied by a
116116 statement signed by the chairperson [each designated member]
117117 stating that the chairperson [member] will be responsible for the
118118 conduct of bingo under the terms of the license and this chapter;
119119 (7) [(11) a statement that a copy of the application
120120 has been sent to the appropriate governing body;
121121 [(12) the name and address of each person who will work
122122 at the proposed bingo occasion, the nature of the work to be
123123 performed, and a statement as to whether the person has been
124124 convicted of a felony, a gambling offense, criminal fraud, or a
125125 crime of moral turpitude; and
126126 [(13)] sufficient facts relating to the applicant's
127127 incorporation and organization to enable the commission to
128128 determine whether the applicant is an authorized organization;
129129 (8) a copy of the applicant organization's most
130130 recently filed Internal Revenue Service Form 990, if applicable;
131131 (9) a letter of good standing from the applicant
132132 organization's parent organization, if the organization receives
133133 an exemption from federal income taxes as a member of a group of
134134 organizations;
135135 (10) copies of the applicant organization's organizing
136136 instruments, including any bylaws, constitution, charter, and
137137 articles of incorporation;
138138 (11) verification of the applicant organization's good
139139 standing with the secretary of state if the organization is
140140 organized under the law of this state; and
141141 (12) information necessary to conduct criminal
142142 background checks on the applicant organization's officers and
143143 directors.
144144 SECTION 4. Section 2001.103(e), Occupations Code, is
145145 amended to read as follows:
146146 (e) Notwithstanding Subsection (c), an authorized
147147 organization that holds a regular license to conduct bingo may
148148 receive not more than 24 [12] temporary licenses during the
149149 12-month period following the issuance or renewal of the license.
150150 SECTION 5. Sections 2001.104(b) and (d), Occupations Code,
151151 are amended to read as follows:
152152 (b) The commission by rule shall establish procedures to
153153 determine if the appropriate license fee [At the end of the license
154154 period the license holder and the commission shall compute the
155155 amount of gross receipts actually recorded during the license
156156 period to determine if the appropriate fee amount] was paid.
157157 (d) An applicant shall pay the fees established under
158158 Subsection (a) annually. An applicant for a license or renewal of a
159159 license may obtain a license that is effective for two years by
160160 paying an amount equal to two times the amount of the annual license
161161 fee, or by paying the license fee for the first year at the time the
162162 applicant submits the application and the fee for the second year
163163 not later than the first anniversary of the date the license becomes
164164 effective [plus $25].
165165 SECTION 6. Section 2001.105(b), Occupations Code, is
166166 amended to read as follows:
167167 (b) The commission may not issue a license to an authorized
168168 organization to conduct bingo if an officer or director of the
169169 organization has been convicted of a felony, criminal fraud, a
170170 gambling or gambling-related offense, or a crime of moral turpitude
171171 if less than 10 years has elapsed since the termination of a
172172 sentence, parole, mandatory supervision, or community supervision
173173 served for the offense.
174174 SECTION 7. Section 2001.106, Occupations Code, is amended
175175 to read as follows:
176176 Sec. 2001.106. FORM AND CONTENTS OF LICENSE. A license to
177177 conduct bingo must include:
178178 (1) the name and address of the license holder;
179179 (2) the names and addresses of the member or members of
180180 the license holder under whom the bingo will be conducted; and
181181 (3) the address [an indication] of the premises where
182182 and the time when bingo is to be conducted[;
183183 [(4) the specific purposes to which the net proceeds
184184 of bingo are to be devoted; and
185185 [(5) a statement of whether a prize is to be offered
186186 and the amount of any authorized prize].
187187 SECTION 8. Section 2001.107(a), Occupations Code, is
188188 amended to read as follows:
189189 (a) Unless the organization is a member of a unit that
190190 designates a unit manager under Section 2001.437, the bingo
191191 chairperson for a licensed authorized organization [The person
192192 designated under Section 2001.102(b)(10)] shall complete the
193193 [eight hours of] training required [as provided] by commission
194194 rule. For a unit operating under Subchapter I-1, the unit manager
195195 shall complete the training if the unit designates a unit manager
196196 under Section 2001.437.
197197 SECTION 9. Sections 2001.158(b) and (d), Occupations Code,
198198 are amended to read as follows:
199199 (b) The commission by rule shall establish procedures for
200200 determining if the appropriate license fee [At the end of the
201201 license period, the license holder and the commission shall compute
202202 the amount of the gross rentals actually recorded during the
203203 license period to determine if the appropriate fee amount] was
204204 paid.
205205 (d) An applicant for a commercial lessor license shall pay
206206 the fees established under Subsection (a) annually. An applicant
207207 for a license or renewal of a license may obtain a license that is
208208 effective for two years by paying an amount equal to two times the
209209 amount of the annual license fee, or by paying the license fee for
210210 the first year at the time the applicant submits the application and
211211 the license fee for the second year not later than the first
212212 anniversary of the date the license becomes effective [plus $25].
213213 SECTION 10. The heading to Section 2001.159, Occupations
214214 Code, is amended to read as follows:
215215 Sec. 2001.159. LICENSE ISSUANCE OR RENEWAL.
216216 SECTION 11. Section 2001.159(a), Occupations Code, is
217217 amended to read as follows:
218218 (a) The commission shall issue or renew a commercial lessor
219219 license if the commission determines that:
220220 (1) the applicant has paid the license fee as provided
221221 by Section 2001.158;
222222 (2) the applicant qualifies to be licensed under this
223223 chapter;
224224 (3) [the applicant satisfies the requirements for a
225225 commercial lessor under this subchapter;
226226 [(4)] the rent to be charged is fair and reasonable
227227 [and will be charged and collected in compliance with Section
228228 2001.406];
229229 (4) [(5) there is no diversion of the funds of the
230230 proposed lessee from the lawful purposes under this chapter;
231231 [(6)] the person whose signature or name appears in
232232 the application is in all respects the real party in interest and is
233233 not an undisclosed agent or trustee for the real party in interest;
234234 and
235235 (5) [(7)] the applicant will lease the premises for
236236 the conduct of bingo in accordance with this chapter.
237237 SECTION 12. Section 2001.203, Occupations Code, is amended
238238 to read as follows:
239239 Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An
240240 applicant for a manufacturer's license must file with the
241241 commission an [a written verified] application on a form prescribed
242242 by the commission.
243243 (b) The application must include:
244244 (1) the name and address of the applicant and the name
245245 and address of each of its locations where bingo supplies or
246246 equipment are manufactured;
247247 (2) a full description of each type of bingo supply or
248248 equipment that the applicant intends to manufacture or market in
249249 this state and the brand name, if any, under which each item will be
250250 sold;
251251 (3) [the name and address of the applicant and] if the
252252 applicant:
253253 (A) is not a corporation, the name and home
254254 address of each owner; or
255255 (B) is a corporation, the name and home address
256256 of each officer and director and each person owning more than 10
257257 percent [or more] of a class of stock in the corporation;
258258 (4) if the applicant is a foreign corporation or other
259259 foreign legal entity, the name, business name and address, and
260260 [home] address of its registered agent for service in this state;
261261 (5) the name and address of each manufacturer,
262262 supplier, and distributor in which the applicant has a financial
263263 interest and the details of that financial interest, including any
264264 indebtedness between the applicant and the manufacturer, supplier,
265265 or distributor of $5,000 [$500] or more;
266266 (6) information regarding whether the applicant or a
267267 person required to be named in the application has been convicted in
268268 this state or another state of a felony, criminal fraud, a gambling
269269 or gambling-related offense, or a crime of moral turpitude;
270270 (7) information regarding whether the applicant or a
271271 person required to be named in the application is an owner, officer,
272272 director, shareholder, agent, or employee of a licensed commercial
273273 lessor or conducts, promotes, administers, or assists in
274274 conducting, promoting, or administering bingo for which a license
275275 is required by this chapter;
276276 (8) information regarding whether the applicant or a
277277 person required to be named in the application is a public officer
278278 or public employee in this state;
279279 (9) the name of each state in which the applicant is or
280280 has been licensed to manufacture, distribute, or supply bingo
281281 equipment or supplies, each license number, the period of time
282282 licensed under each license, and whether a license has been
283283 revoked, suspended, withdrawn, canceled, or surrendered and, if so,
284284 the reasons for the action taken;
285285 (10) information regarding whether the applicant or a
286286 person required to be named in the application is or has been a
287287 professional gambler or gambling promoter;
288288 (11) the names and addresses of each manufacturer,
289289 supplier, or distributor of bingo equipment or supplies in which
290290 the applicant or a person required to be named in the application is
291291 an owner, officer, shareholder, director, agent, or employee; and
292292 (12) any other information the commission requests.
293293 SECTION 13. Section 2001.208(b), Occupations Code, is
294294 amended to read as follows:
295295 (b) The application must include:
296296 (1) the full name and address of the applicant;
297297 (2) the name and address of each location operated by
298298 the distributor from which bingo supplies or equipment are
299299 distributed or at which bingo supplies or equipment are stored;
300300 (3) if a noncorporate distributor, the name and home
301301 address of each owner;
302302 (4) if a corporate distributor, the name and home
303303 address of each officer or director and of each person owning more
304304 than [at least] 10 percent of a class of stock in the corporation;
305305 (5) if a foreign corporation or other foreign legal
306306 entity, the name, business name and address, and [home] address of
307307 its registered agent for service in this state;
308308 (6) a full description of the type of bingo supply or
309309 equipment that the applicant intends to store or distribute in this
310310 state and the name of the manufacturer of each item and the brand
311311 name, if any, under which the item will be sold or marketed;
312312 (7) the name and address of a manufacturer, supplier,
313313 or distributor in which the applicant has a financial interest and
314314 the details of that financial interest, including an indebtedness
315315 between the applicant and the manufacturer, supplier, or
316316 distributor of $5,000 [$500] or more;
317317 (8) information regarding whether the applicant or a
318318 person required to be named in the application has been convicted in
319319 this state or another state of a felony, criminal fraud, a gambling
320320 or gambling-related offense, or a crime of moral turpitude;
321321 (9) information regarding whether the applicant or a
322322 person required to be named in the application is an owner, officer,
323323 director, shareholder, agent, or employee of a licensed commercial
324324 lessor or conducts, promotes, administers, or assists in
325325 conducting, promoting, or administering bingo for which a license
326326 is required under this chapter;
327327 (10) information regarding whether the applicant or a
328328 person required to be named in the application is a public officer
329329 or public employee in this state;
330330 (11) the name of each state in which the applicant is
331331 or has been licensed to manufacture, distribute, or supply bingo
332332 equipment or supplies, each license number, the period of time
333333 licensed under each license, and whether a license was revoked,
334334 suspended, withdrawn, canceled, or surrendered and, if so, the
335335 reasons for the action taken;
336336 (12) information regarding whether the applicant or a
337337 person required to be named in the application is or has been a
338338 professional gambler or gambling promoter;
339339 (13) the name and address of each manufacturer,
340340 supplier, or distributor of bingo equipment or supplies in which
341341 the applicant or a person required to be named in the application is
342342 an owner, officer, shareholder, director, agent, or employee; and
343343 (14) any other information the commission requests.
344344 SECTION 14. Section 2001.306(c), Occupations Code, is
345345 amended to read as follows:
346346 (c) The holder of a license to conduct bingo may not change
347347 the location at which it conducts bingo until it has:
348348 (1) returned [surrendered] its original license if
349349 available, or certified that the license is not available; and
350350 (2) received an amended license for the new location.
351351 SECTION 15. Section 2001.313, Occupations Code, is amended
352352 by amending Subsections (a), (b), (d), (e), (f), and (g) and adding
353353 Subsections (b-1), (h), and (i) to read as follows:
354354 (a) To minimize duplicate criminal history background
355355 checks by the commission and the costs incurred by organizations
356356 and individuals, the commission shall maintain a registry of
357357 individuals [persons] on whom the commission has conducted a
358358 criminal history background check and who are approved to be
359359 involved in the conduct of bingo or to act as a bingo operator.
360360 (b) An individual [A person] listed in the registry may be
361361 involved in the conduct of bingo or act as an operator at any
362362 location at which bingo is lawfully conducted.
363363 (b-1) An individual's listing on the registry expires on the
364364 third anniversary of the date the individual was initially included
365365 on the registry. The individual may renew the listing before the
366366 expiration date. If the individual fails to renew the listing, the
367367 commission shall remove the individual's name from the registry.
368368 An individual whose name is removed from the registry may reapply
369369 for listing on the registry.
370370 (d) An individual [A person] who is not listed on the
371371 registry established by this section may not act, and a licensed
372372 authorized organization may not allow the individual to act, as an
373373 operator, manager, cashier, usher, caller, bingo chairperson,
374374 bookkeeper, or salesperson for the [a] licensed authorized
375375 organization.
376376 (e) The commission may refuse to add an individual's [a
377377 person's] name to, or remove an individual's [a person's] name from,
378378 the registry established by this section if, after notice and, if
379379 requested by the individual, a hearing, the individual [person] is
380380 finally determined to have:
381381 (1) been convicted of an offense listed under Section
382382 2001.105(b);
383383 (2) converted bingo equipment in a premises to an
384384 improper use;
385385 (3) converted funds that are in, or that should have
386386 been in, the bingo account of any licensed authorized organization;
387387 (4) taken any action, individually or in concert with
388388 another person, that affects the integrity of any bingo game to
389389 which this chapter applies; [or]
390390 (5) acted as an operator, manager, cashier, usher,
391391 caller, bingo chairperson, bookkeeper, or salesperson for a
392392 licensed authorized organization without being listed on the
393393 registry established under this section;
394394 (6) failed to provide a complete application; or
395395 (7) participated in any violation of this chapter or
396396 rules adopted by the commission for the administration of this
397397 chapter.
398398 (f) A licensed authorized organization shall report to the
399399 commission or its designee the discovery of any conduct on the part
400400 of an individual [a person] registered or required to be registered
401401 under this section where there is substantial basis for believing
402402 that the conduct would constitute grounds for removal of the
403403 individual's [person's] name from, or refusal to add the
404404 individual's [person's] name to, the registry established by this
405405 section. A statement made in good faith to the commission or to an
406406 adjudicative body in connection with any such report may not be the
407407 basis for an action for defamation of character.
408408 (g) An individual [A person] who has been finally determined
409409 to have taken action prohibited by Subsection (e)(2), (3), (4),
410410 [or] (5), (6), or (7) cannot be listed on the registry of approved
411411 bingo workers and cannot work as a bingo worker for one year from
412412 the date of such determination. Upon expiration of the one-year
413413 period, the individual [person] is eligible for listing on the
414414 registry provided a license holder [licensee] subject to this
415415 chapter makes application to list the individual [person]. In such
416416 event, the commission shall take into consideration the facts and
417417 circumstances that occurred that led to the applicable action under
418418 Subsections (e)(2)-(7) [(e)(2)-(5)] in deciding whether to list the
419419 individual [person] on the registry.
420420 (h) A licensed authorized organization may employ an
421421 individual who is not on the registry established by this section as
422422 an operator, manager, cashier, usher, caller, or salesperson on a
423423 provisional basis if the individual is awaiting the results of a
424424 background check by the commission:
425425 (1) for a period not to exceed 14 days if the
426426 individual is a resident of this state; or
427427 (2) for a period to be established by commission rule
428428 if the individual is not a resident of this state.
429429 (i) An individual who has been removed from the registry
430430 under Subsection (e) and has not subsequently been listed on the
431431 registry under Subsection (g) may not be employed under Subsection
432432 (h).
433433 SECTION 16. Subchapter G, Chapter 2001, Occupations Code,
434434 is amended by adding Sections 2001.315 and 2001.316 to read as
435435 follows:
436436 Sec. 2001.315. LATE LICENSE RENEWAL. (a) A person who fails
437437 to renew the person's license under this chapter before the date the
438438 license expires may renew the license after the expiration date by:
439439 (1) filing a license renewal application with the
440440 commission not later than the 14th day after the date the license
441441 expires, paying the applicable annual license fee, and paying a
442442 late license renewal fee equal to 10 percent of the annual license
443443 fee; or
444444 (2) filing a license renewal application with the
445445 commission not later than the 60th day after the date the license
446446 expires, paying the applicable annual license fee, and paying a
447447 late license renewal fee equal to 10 percent of the annual license
448448 fee for each 14-day period occurring after the date the license
449449 expires and before the date the renewal application is filed with
450450 the commission.
451451 (b) A person who files a renewal application with the
452452 commission under Subsection (a) may continue to perform the bingo
453453 activities authorized under the license as if the license has not
454454 expired until the license is renewed or renewal of the license is
455455 denied.
456456 (c) To renew a license after the 60th day after the date the
457457 license expires, the person must file an application for an
458458 original license and cease all bingo activities for which the
459459 license is required as of the 61st day after the date the license
460460 expires until a new license is issued.
461461 Sec. 2001.316. DELIVERY OF COMMISSION NOTICE. If notice
462462 under this chapter is required to be given to an authorized
463463 organization, the commission shall send the notice to the bingo
464464 chairperson of the authorized organization and to the appropriate
465465 commercial lessor, if applicable.
466466 SECTION 17. Section 2001.407(a), Occupations Code, is
467467 amended to read as follows:
468468 (a) A licensed manufacturer may furnish, by sale or
469469 otherwise, bingo equipment or supplies to a licensed distributor.
470470 A [Except as provided by Section 2001.257(b), a] licensed
471471 manufacturer may not furnish, by sale or otherwise, bingo equipment
472472 or supplies to a person other than a licensed distributor.
473473 SECTION 18. Section 2001.411, Occupations Code, is amended
474474 by adding Subsection (c-1) to read as follows:
475475 (c-1) An organization may designate as members of the
476476 organization one or more individuals who elect to become members,
477477 including all of the organization's directors, and the designated
478478 members are bona fide members of the organization for purposes of
479479 this section and other law.
480480 SECTION 19. The following provisions of the Occupations
481481 Code are repealed:
482482 (1) Sections 2001.002(3) and (10);
483483 (2) Section 2001.057(b);
484484 (3) Section 2001.160(c);
485485 (4) Section 2001.161(a);
486486 (5) Section 2001.204;
487487 (6) Section 2001.305;
488488 (7) Section 2001.553(b); and
489489 (8) Subchapter F, Chapter 2001.
490490 SECTION 20. The Texas Lottery Commission shall adopt the
491491 rules required by Chapter 2001, Occupations Code, as amended by
492492 this Act, not later than April 1, 2010.
493493 SECTION 21. (a) The change in law made by this Act applies
494494 only to an offense committed on or after the effective date of this
495495 Act. For purposes of this section, an offense is committed before
496496 the effective date of this Act if any element of the offense occurs
497497 before that date.
498498 (b) An offense committed before the effective date of this
499499 Act is covered by the law in effect when the offense was committed,
500500 and the former law is continued in effect for that purpose.
501501 SECTION 22. This Act takes effect October 1, 2009.