Texas 2015 - 84th Regular

Texas House Bill HB2642 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R25603 YDB-D
2	2	By: Thompson of Harris H.B. No. 2642
3	3	Substitute the following for H.B. No. 2642:
4	4	By: Geren C.S.H.B. No. 2642
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the transfer of the licensing and regulation of
10	10	charitable bingo to the Texas Department of Licensing and
11	11	Regulation and regulation by counties of amusement redemption
12	12	machine game rooms on bingo premises; requiring an occupational
13	13	permit; authorizing fees and taxes; creating civil and
14	14	administrative penalties; increasing a criminal penalty.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	ARTICLE 1. REGULATION OF CHARITABLE BINGO
17	17	SECTION 1.001. Section 2001.002, Occupations Code, is
18	18	amended by amending Subdivisions (8), (13), (18), and (25-a) and
19	19	adding Subdivisions (8-a) and (9-a) to read as follows:
20	20	(8) "Commission" means the Texas [Lottery] Commission
21	21	of Licensing and Regulation.
22	22	(8-a) "Department" means the Texas Department of
23	23	Licensing and Regulation.
24	24	(9-a) "Executive director" means the executive
25	25	director of the department.
26	26	(13) "Gross gaming revenue [receipts]" means the total
27	27	amount received from the sale, rental, transfer, or use of bingo
28	28	cards and entrance fees charged at premises at which bingo is
29	29	conducted less the amount of cash prizes paid to winners of bingo
30	30	games.
31	31	(18) "Net proceeds" means:
32	32	(A) in relation to the total [gross] receipts
33	33	from the conduct of bingo during one or more bingo occasions, the
34	34	amount remaining after deducting the reasonable sums necessarily
35	35	and actually expended for expenses under Section 2001.458 and the
36	36	tax [fee] on prizes under Section 2001.502; and
37	37	(B) in relation to the gross rent or other
38	38	consideration received by a licensed authorized organization for
39	39	the use of its premises, fixtures, or equipment by another license
40	40	holder, the amount remaining after deducting the reasonable sums
41	41	necessarily and actually expended for any janitorial services and
42	42	utility supplies directly attributable to the use of the premises,
43	43	fixtures, or equipment.
44	44	(25-a) "Regular license" means a license to conduct
45	45	bingo that is issued by the department [commission] and that
46	46	expires on the first [or second] anniversary of the date of issuance
47	47	unless revoked or suspended before that date by the department
48	48	[commission. The term includes an annual license].
49	49	SECTION 1.002. The heading to Subchapter B, Chapter 2001,
50	50	Occupations Code, is amended to read as follows:
51	51	SUBCHAPTER B. [COMMISSION] POWERS AND DUTIES
52	52	SECTION 1.003. The heading to Section 2001.051, Occupations
53	53	Code, is amended to read as follows:
54	54	Sec. 2001.051. CONTROL AND SUPERVISION OF BINGO[; BINGO
55	55	DIVISION].
56	56	SECTION 1.004. Sections 2001.051(a) and (b), Occupations
57	57	Code, are amended to read as follows:
58	58	(a) The department [commission] shall administer this
59	59	chapter.
60	60	(b) The commission has broad authority and shall exercise
61	61	[strict] control and close supervision over all bingo conducted in
62	62	this state so that bingo is fairly conducted and the proceeds
63	63	derived from bingo are used for an authorized purpose.
64	64	SECTION 1.005. Section 2001.053, Occupations Code, is
65	65	amended to read as follows:
66	66	Sec. 2001.053. OFFICERS AND INVESTIGATORS. The executive
67	67	director [commission] may employ officers or investigators the
68	68	executive director [commission] considers necessary to administer
69	69	this chapter.
70	70	SECTION 1.006. Sections 2001.056(b), (c), (d), and (e),
71	71	Occupations Code, are amended to read as follows:
72	72	(b) A license holder may not use or distribute a bingo card
73	73	unless the card has been approved by the department [commission].
74	74	(c) The executive director or commission may set the price
75	75	or adopt a schedule of prices for the sale or provision of bingo
76	76	cards by a licensed authorized organization.
77	77	(d) A licensed authorized organization may not sell or
78	78	provide a bingo card at a price other than a price authorized by the
79	79	executive director or commission or a schedule adopted by the
80	80	executive director or commission.
81	81	(e) The commission by rule may require a licensed authorized
82	82	organization to notify the department [commission] of the price for
83	83	bingo cards the organization will use for one or more reporting
84	84	periods.
85	85	SECTION 1.007. Section 2001.057, Occupations Code, is
86	86	amended to read as follows:
87	87	Sec. 2001.057. BINGO ADVISORY COMMITTEE AND ADVICE FOR
88	88	COMMISSION. (a) The commission shall [may] appoint a bingo
89	89	advisory committee consisting of nine members. The commission
90	90	shall appoint members representing a balance of interests including
91	91	representatives of:
92	92	(1) the public;
93	93	(2) charities that operate bingo games; [and]
94	94	(3) commercial and charity lessors that participate in
95	95	the bingo industry;
96	96	(4) distributors; and
97	97	(5) manufacturers.
98	98	(c) An advisory [A] committee member serves at the pleasure
99	99	of the presiding officer of the commission.
100	100	(d) An advisory [A] committee member is not entitled to
101	101	receive compensation for serving as a member. A [committee] member
102	102	is entitled to reimbursement for reasonable expenses incurred in
103	103	performing duties as a member subject to the availability of funds
104	104	and applicable limitations of the General Appropriations Act.
105	105	(e) The advisory committee, executive director, and
106	106	department may:
107	107	(1) advise the commission on the needs and problems of
108	108	the state's bingo industry;
109	109	(2) comment on rules involving bingo during their
110	110	development and before final adoption unless an emergency requires
111	111	immediate action by the commission; and
112	112	(3) [report annually to the commission on the
113	113	committee's activities; and
114	114	[(4)] perform other duties as determined by the
115	115	commission or executive director.
116	116	(f) The advisory committee may meet [quarterly or] at the
117	117	executive director's or the presiding officer's [commission's]
118	118	request.
119	119	[(g) The commission may adopt rules to govern the operations
120	120	of the committee.]
121	121	SECTION 1.008. Section 2001.059(f), Occupations Code, is
122	122	amended to read as follows:
123	123	(f) The commission may delegate all or part of the authority
124	124	and procedures for issuing advisory opinions under this section to
125	125	an employee of the department [commission].
126	126	SECTION 1.009. Sections 2001.060(a) and (c), Occupations
127	127	Code, are amended to read as follows:
128	128	(a) On or before June 1 of each even-numbered year, the
129	129	department [commission] shall prepare and deliver to the governor,
130	130	the lieutenant governor, the speaker of the house of
131	131	representatives, and the chairs of the standing committees of the
132	132	senate and house of representatives with primary jurisdiction over
133	133	charitable bingo a report stating for each of the preceding two
134	134	calendar years:
135	135	(1) the total amount of [adjusted] gross gaming
136	136	revenue [receipts] reported by licensed authorized organizations
137	137	from their bingo operations;
138	138	(2) the total amount of net proceeds reported by
139	139	licensed authorized organizations from their bingo operations; and
140	140	(3) a comparison of the amounts reported under
141	141	Subdivisions (1) and (2), including the percentage that the net
142	142	proceeds represents of the [adjusted] gross gaming revenue
143	143	[receipts].
144	144	(c) For purposes of Subsection (a), the department
145	145	[commission] shall determine the total amount of net proceeds in a
146	146	manner that does not reduce gross gaming revenue [receipts] by the
147	147	amount of rent paid for the rental of bingo premises by a licensed
148	148	authorized organization to another licensed authorized
149	149	organization if the other organization pays rent for the premises
150	150	to a licensed commercial lessor.
151	151	SECTION 1.010. Section 2001.061, Occupations Code, is
152	152	amended to read as follows:
153	153	Sec. 2001.061. LICENSE RENEWAL PROCESS. The commission
154	154	shall adopt rules governing each part of the license renewal
155	155	process for all licenses issued under this chapter, from
156	156	application submission to completion of the renewal process. [The
157	157	process must require a license holder renewing a license to submit
158	158	to the commission the information required in the initial license
159	159	application.]
160	160	SECTION 1.011. Section 2001.101(a), Occupations Code, is
161	161	amended to read as follows:
162	162	(a) The department [commission] may license a person who is
163	163	an authorized organization eligible for a license to conduct bingo
164	164	if the person is:
165	165	(1) a religious society that has existed in this state
166	166	for at least three years;
167	167	(2) a nonprofit organization:
168	168	(A) whose predominant activities are for the
169	169	support of medical research or treatment programs; and
170	170	(B) that for at least three years:
171	171	(i) must have had a governing body or
172	172	officers elected by a vote of members or by a vote of delegates
173	173	elected by the members; or
174	174	(ii) must have been affiliated with a state
175	175	or national organization organized to perform the same purposes as
176	176	the nonprofit organization;
177	177	(3) a fraternal organization that has been organized
178	178	in this state for at least three years;
179	179	(4) a veterans organization that has existed in this
180	180	state for at least three years;
181	181	(5) a volunteer fire department that has existed in
182	182	this state for at least three years; or
183	183	(6) a volunteer emergency medical services provider
184	184	that has existed in this state for at least three years.
185	185	SECTION 1.012. Sections 2001.102(a) and (b), Occupations
186	186	Code, are amended to read as follows:
187	187	(a) An applicant for a license to conduct bingo must file
188	188	with the department [commission] an application on a form
189	189	prescribed by the department [commission].
190	190	(b) The application must include:
191	191	(1) the name and address of the applicant;
192	192	(2) the names and addresses of the applicant's
193	193	officers and directors;
194	194	(3) the address of the premises where and the time when
195	195	the applicant intends to conduct bingo under the license sought;
196	196	(4) the name and address of the licensed commercial
197	197	lessor of the premises, if the applicant intends to lease premises
198	198	to conduct bingo from a person other than an authorized
199	199	organization;
200	200	(5) a statement that the net proceeds of bingo will go
201	201	to one or more of the authorized charitable purposes under this
202	202	chapter;
203	203	(6) a designation of the applicant organization's
204	204	bingo chairperson under whom bingo will be conducted accompanied by
205	205	a statement signed by the chairperson stating that the chairperson
206	206	will be responsible for the conduct of bingo under the terms of the
207	207	license and this chapter;
208	208	(7) sufficient facts relating to the applicant's
209	209	incorporation and organization to enable the department
210	210	[commission] to determine whether the applicant is an authorized
211	211	organization;
212	212	(8) [a copy of] the applicant organization's most
213	213	recently filed Internal Revenue Service Form 990, if applicable;
214	214	(9) a letter of good standing from the applicant
215	215	organization's parent organization, if the organization receives
216	216	an exemption from federal income taxes as a member of a group of
217	217	organizations;
218	218	(10) [copies of] the applicant organization's
219	219	organizing instruments, including any bylaws, constitution,
220	220	charter, and articles of incorporation;
221	221	(11) verification of the applicant organization's good
222	222	standing with the secretary of state if the organization is
223	223	organized under the law of this state; and
224	224	(12) information necessary to conduct criminal
225	225	background checks on the applicant organization's officers and
226	226	directors.
227	227	SECTION 1.013. Sections 2001.103(a), (c), (f), and (g),
228	228	Occupations Code, are amended to read as follows:
229	229	(a) An authorized organization may receive a temporary
230	230	license to conduct bingo by filing with the department [commission]
231	231	an application, on a form and in the manner prescribed by the
232	232	department [commission], accompanied by a $25 license fee.
233	233	(c) An organization may not receive more than 24 [six]
234	234	temporary licenses in the 12-month period following the issuance or
235	235	renewal of the organization's license to conduct bingo [a calendar
236	236	year].
237	237	(f) An authorized organization that holds an annual [a
238	238	regular] license to conduct bingo may apply for all or any portion
239	239	of the total number of temporary licenses to which the organization
240	240	is entitled under Subsection (c) [(e)] in one application without
241	241	stating the days or times for which the organization will use the
242	242	temporary licenses.
243	243	(g) An organization that has been issued a temporary license
244	244	under Subsection (f) shall notify the department [commission] of
245	245	the specific date and time of the bingo occasion for which the
246	246	temporary license will be used before using the license. [If the
247	247	commission receives the notification by noon of the day before the
248	248	day the temporary license will be used, the commission shall verify
249	249	receipt of the notice before the end of the business day on which
250	250	the notice is received. If the commission does not receive the
251	251	notification by noon of the day before the day the temporary license
252	252	will be used, the commission shall verify receipt of the notice
253	253	before noon of the business day that follows the day the commission
254	254	received the notice.]
255	255	SECTION 1.014. Sections 2001.104(a), (d), and (e),
256	256	Occupations Code, are amended to read as follows:
257	257	(a) The commission by rule shall set the fees for a license
258	258	to conduct bingo based on the amount of the licensed authorized
259	259	organization's total receipts derived from the conduct of bingo and
260	260	in an amount reasonable to defray the department's administrative
261	261	costs but not less than the following:
262	262	(1) Class A (annual [gross] receipts of not more than
263	263	$75,000)-$300 [$25,000 or less)-$100];
264	264	(2) Class B (annual [gross] receipts of more than
265	265	$75,000 [$25,000] but not more than $200,000)-$900
266	266	[$50,000)-$200];
267	267	(3) Class C (annual [gross] receipts of more than
268	268	$200,000 [$50,000] but not more than $400,000)-$2,000
269	269	[$75,000)-$300]; and
270	270	(4) Class D (annual [gross] receipts of more than
271	271	[$75,000 but not more than $100,000)-$400;
272	272	[(5) Class E (annual gross receipts of more than
273	273	$100,000 but not more than $150,000)-$600;
274	274	[(6) Class F (annual gross receipts of more than
275	275	$150,000 but not more than $200,000)-$900;
276	276	[(7) Class G (annual gross receipts of more than
277	277	$200,000 but not more than $250,000)-$1,200;
278	278	[(8) Class H (annual gross receipts of more than
279	279	$250,000 but not more than $300,000)-$1,500;
280	280	[(9) Class I (annual gross receipts of more than
281	281	$300,000 but not more than $400,000)-$2,000; and
282	282	[(10) Class J (annual gross receipts of more than]
283	283	$400,000)-$2,500.
284	284	(d) An applicant shall pay the fees established under
285	285	Subsection (a) annually. [An applicant for a license or renewal of
286	286	a license may obtain a license that is effective for two years by
287	287	paying an amount equal to two times the amount of the annual license
288	288	fee.]
289	289	(e) A licensed authorized organization may pay in advance,
290	290	or establish an escrow account with the department [commission] to
291	291	cover, fees assessed under this chapter for the amendment of a
292	292	license or issuance of a temporary license.
293	293	SECTION 1.015. Section 2001.105, Occupations Code, is
294	294	amended to read as follows:
295	295	Sec. 2001.105. LICENSE ISSUANCE OR RENEWAL; DISCIPLINARY
296	296	ACTION FOR CERTAIN CONVICTIONS. (a) The department [commission]
297	297	shall issue or renew a license to conduct bingo on payment of the
298	298	license fee provided by Section 2001.104 if the department
299	299	[commission] determines that:
300	300	(1) the member or members of the applicant designated
301	301	in the application to conduct bingo are active members of the
302	302	applicant;
303	303	(2) the bingo is to be conducted in accordance with
304	304	this chapter;
305	305	(3) the proceeds of the bingo are to be disposed in
306	306	accordance with this chapter;
307	307	(4) the applicant has made and can demonstrate
308	308	significant progress toward the accomplishment of the purposes of
309	309	the organization during the 12 months preceding the date of
310	310	application for a license or license renewal; and
311	311	(5) all persons who will conduct, promote, or
312	312	administer the proposed bingo are active members of the applicant
313	313	organization and all other persons who will assist in conducting,
314	314	promoting, or administering the proposed bingo games are persons
315	315	authorized [to do so] by the applicant [Section 2001.411; and
316	316	[(6) no person under whose name bingo will be
317	317	conducted and no person working at the proposed bingo has been
318	318	convicted of a gambling offense or criminal fraud].
319	319	(b) The department [commission] may not issue a license to
320	320	an authorized organization to conduct bingo if an officer or member
321	321	of the board of directors of the organization, or a person under
322	322	whose name bingo will be conducted, has been convicted of criminal
323	323	fraud or a gambling or gambling-related offense.
324	324	(b-1) The department may not take disciplinary action
325	325	against a licensed authorized organization that has on file for a
326	326	person described by Subsection (b) or an organization employee a
327	327	criminal history records check, conducted by a local law
328	328	enforcement agency or the Department of Public Safety, that does
329	329	not contain a record of a conviction for an offense described by
330	330	that subsection. If the department conducts a criminal history
331	331	records check on the person or employee that contains a record of a
332	332	conviction for an offense described by that subsection:
333	333	(1) the department shall immediately notify the
334	334	organization of the conviction; and
335	335	(2) the organization is prohibited from allowing the
336	336	person or employee to conduct bingo for the organization after
337	337	receipt of the notification.
338	338	(b-2) The department may take disciplinary action against
339	339	an organization that allows a person described by Subsection (b) or
340	340	organization employee to conduct bingo for the organization after
341	341	the date the organization receives the notification required under
342	342	Subsection (b-1)(1).
343	343	(c) A [Except as provided by Section 2001.104(d), a] license
344	344	issued under this subchapter is effective for one year.
345	345	SECTION 1.016. Sections 2001.107(b) and (c), Occupations
346	346	Code, are amended to read as follows:
347	347	(b) A training program approved by the department
348	348	[commission] must include training related to:
349	349	(1) conducting bingo;
350	350	(2) administering and operating bingo; and
351	351	(3) promoting bingo.
352	352	(c) The department [commission by rule] shall establish:
353	353	(1) the content of the training course;
354	354	(2) information concerning training to be reported to
355	355	the department [commission]; and
356	356	(3) other training program requirements that the
357	357	department [commission] determines to be necessary to promote the
358	358	fair conduct of bingo and compliance with this chapter.
359	359	SECTION 1.017. Section 2001.108, Occupations Code, is
360	360	amended to read as follows:
361	361	Sec. 2001.108. LICENSE AMENDMENT FOR CHANGE OF BINGO
362	362	PREMISES OR OCCASIONS. (a) A licensed authorized organization and
363	363	the licensed commercial lessor at which the organization conducts
364	364	or will conduct bingo may file a joint application with the
365	365	department [commission] to change the premises at which the
366	366	organization may conduct bingo or the times of the organization's
367	367	bingo occasions to allow the organization to conduct bingo at the
368	368	same time and premises that another licensed authorized
369	369	organization is licensed to conduct bingo if the other organization
370	370	has ceased, or will cease, conducting bingo at that time and
371	371	premises. The application must state whether the other
372	372	organization has ceased or will cease conducting bingo at that time
373	373	and premises because:
374	374	(1) the organization has abandoned or will abandon its
375	375	licensed time or premises; or
376	376	(2) the organization's lease has been or will be
377	377	terminated.
378	378	(b) If the other organization ceased or will cease
379	379	conducting bingo for the reason stated in Subsection (a)(1), the
380	380	department [commission] must act on the joint application filed
381	381	under Subsection (a) not later than the 14th day after the date the
382	382	application is filed with the department [commission].
383	383	(c) If the other organization ceased or will cease
384	384	conducting bingo for the reason stated in Subsection (a)(2), the
385	385	department [commission] must act on the joint application filed
386	386	under Subsection (a) not later than the 14th day after the date the
387	387	application is filed with the department [commission] or the date
388	388	on which the termination takes effect, whichever is later.
389	389	(d) The department [If the commission fails to act within
390	390	the time provided by Subsection (b) or (c), the licensed authorized
391	391	organization may act as if the change in premises or bingo occasions
392	392	has been approved by the commission and may conduct bingo at the new
393	393	premises or during the new bingo occasion until the commission acts
394	394	on the application.
395	395	[(e) Notwithstanding Subsection (d), the commission] may
396	396	issue temporary licenses to one or more licensed authorized
397	397	organizations that conduct bingo at the same location as an
398	398	organization that has ceased or will cease to conduct bingo, which
399	399	are in addition to the number of temporary licenses each
400	400	organization is entitled to under another provision of this
401	401	chapter. The department [commission] is not required to act on a
402	402	joint application under Subsection (a) within the time provided by
403	403	this section if the number of additional temporary licenses is
404	404	sufficient to allow the other organizations at the location to
405	405	conduct bingo during the licensed times of the organization that
406	406	has ceased or will cease to conduct bingo.
407	407	SECTION 1.018. Section 2001.152(a), Occupations Code, is
408	408	amended to read as follows:
409	409	(a) The department [commission] may issue a commercial
410	410	lessor license only to:
411	411	(1) a licensed authorized organization that owns or
412	412	leases a premises where bingo is or will be conducted or an
413	413	association of licensed authorized organizations that jointly own
414	414	or lease premises where bingo is or will be conducted and that the
415	415	organization or association leases or offers for lease to one or
416	416	more other authorized organizations for the conduct of bingo;
417	417	(2) a person who leases premises to a single licensed
418	418	authorized organization that subleases or will sublease the
419	419	premises to one or more other licensed authorized organizations for
420	420	the conduct of bingo; or
421	421	(3) a person who leases premises for the total control
422	422	and exclusive use of only one licensed authorized organization as
423	423	that organization's primary business office.
424	424	SECTION 1.019. Section 2001.153(a), Occupations Code, is
425	425	amended to read as follows:
426	426	(a) The department [commission] may not issue a commercial
427	427	lessor license to a person unless the department [commission]
428	428	receives evidence the department [commission] considers adequate
429	429	that funds used by the person seeking the license to obtain the
430	430	premises, provide the premises with furniture, fixtures, or
431	431	equipment, renovate the premises, or provide utilities to the
432	432	premises are:
433	433	(1) the person's own funds; or
434	434	(2) the funds of another person, including loan
435	435	proceeds, that:
436	436	(A) were obtained in an arms-length transaction
437	437	that was commercially reasonable under the circumstances; and
438	438	(B) were not obtained under an expectation or
439	439	obligation that the person from whom the funds were obtained would
440	440	directly participate in, or have a legal interest in, rents
441	441	obtained under the license or revenues or profits from the conduct
442	442	of bingo on the premises.
443	443	SECTION 1.020. Section 2001.154(a), Occupations Code, is
444	444	amended to read as follows:
445	445	(a) The department [commission] may not issue a commercial
446	446	lessor license to or renew a commercial lessor license of:
447	447	(1) a person convicted of criminal fraud or a gambling
448	448	or gambling-related offense;
449	449	(2) a public officer who receives any consideration,
450	450	direct or indirect, as owner or lessor of premises offered for
451	451	conducting bingo;
452	452	(3) a person who extends credit to, loans money to, or
453	453	pays or provides for the payment of license fees for an authorized
454	454	organization;
455	455	(4) a distributor or manufacturer; or
456	456	(5) a person in which a person covered by Subdivision
457	457	(1), (2), (3), or (4) or a person married or related in the first
458	458	degree by consanguinity or affinity, as determined under Chapter
459	459	573, Government Code, to one of those persons has greater than a 10
460	460	percent proprietary, equitable, or credit interest or in which one
461	461	of those persons is active or employed[;
462	462	[(6) a foreign corporation or other foreign legal
463	463	entity;
464	464	[(7) an individual who is not a resident of this state;
465	465	[(8) a corporation or other legal entity owned or
466	466	controlled by:
467	467	[(A) a foreign corporation; or
468	468	[(B) an individual who is not a resident of this
469	469	state; or
470	470	[(9) a corporation or other legal entity:
471	471	[(A) whose shares are publicly traded; or
472	472	[(B) owned or controlled by a corporation whose
473	473	shares are publicly traded].
474	474	SECTION 1.021. Section 2001.156(a), Occupations Code, is
475	475	amended to read as follows:
476	476	(a) An applicant for a commercial lessor license must file
477	477	with the department [commission] a written verified application on
478	478	a form prescribed by the department [commission].
479	479	SECTION 1.022. Section 2001.158(a), Occupations Code, is
480	480	amended to read as follows:
481	481	(a) The commission by rule shall set the fees for a
482	482	commercial lessor license in an amount reasonable to defray the
483	483	department's administrative costs but not less than the following:
484	484	(1) Class A (annual gross rentals from licensed
485	485	organizations of not more than $30,000)-$300 [$12,000)-$100];
486	486	(2) Class B (annual gross rentals from licensed
487	487	organizations of more than $30,000 [$12,000] but not more than
488	488	$60,000)-$900 [$20,000)-$200];
489	489	(3) Class C (annual gross rentals from licensed
490	490	organizations of more than $60,000 [$20,000] but not more than
491	491	$90,000)-$2,000 [$30,000)-$300]; and
492	492	(4) Class D (annual gross rentals from licensed
493	493	organizations of more than [$30,000 but not more than
494	494	$40,000)-$400;
495	495	[(5) Class E (annual gross rentals from licensed
496	496	organizations of more than $40,000 but not more than $50,000)-$600;
497	497	[(6) Class F (annual gross rentals from licensed
498	498	organizations of more than $50,000 but not more than $60,000)-$900;
499	499	[(7) Class G (annual gross rentals from licensed
500	500	organizations of more than $60,000 but not more than
501	501	$70,000)-$1,200;
502	502	[(8) Class H (annual gross rentals from licensed
503	503	organizations of more than $70,000 but not more than
504	504	$80,000)-$1,500;
505	505	[(9) Class I (annual gross rentals from licensed
506	506	organizations of more than $80,000 but not more than
507	507	$90,000)-$2,000; and
508	508	[(10) Class J (annual gross rentals from licensed
509	509	organizations of more than] $90,000)-$2,500.
510	510	SECTION 1.023. Sections 2001.159(a) and (b), Occupations
511	511	Code, are amended to read as follows:
512	512	(a) The department [commission] shall issue or renew a
513	513	commercial lessor license if the department [commission]
514	514	determines that:
515	515	(1) the applicant has paid the license fee as provided
516	516	by Section 2001.158;
517	517	(2) the applicant qualifies to be licensed under this
518	518	chapter;
519	519	(3) the rent to be charged is fair and reasonable;
520	520	(4) there is no diversion of the funds of the proposed
521	521	lessee from the lawful purposes under this chapter;
522	522	(5) the person whose signature or name appears in the
523	523	application is in all respects the real party in interest and is not
524	524	an undisclosed agent or trustee for the real party in interest; and
525	525	(6) the applicant will lease the premises for the
526	526	conduct of bingo in accordance with this chapter.
527	527	(b) The department [commission] shall issue a commercial
528	528	lessor license under this section for the period specified in the
529	529	license application or for a shorter period as the department
530	530	[commission] determines.
531	531	SECTION 1.024. Sections 2001.160(a), (e), (f), and (g),
532	532	Occupations Code, are amended to read as follows:
533	533	(a) On approval by the department [commission], a licensed
534	534	commercial lessor may transfer a commercial lessor license if the
535	535	person to whom the license will be transferred otherwise meets the
536	536	requirements of this subchapter.
537	537	(e) Unless the department [commission] revokes or suspends
538	538	the license under this chapter, or an injunction is issued under
539	539	this section, a licensed authorized organization that conducts
540	540	bingo lawfully at premises under a license to which Subsection (d)
541	541	applies may continue conducting bingo at the premises after the
542	542	death or incapacity of the commercial lessor license holder.
543	543	(f) On the showing by the department [commission] of a cause
544	544	that would be sufficient for the department [commission] to revoke
545	545	or suspend a license under this chapter or an applicable commission
546	546	rule, a district court in Travis County [the county for which a
547	547	commercial lessor license was issued or the commission] by order
548	548	may temporarily or permanently enjoin the conduct of bingo at
549	549	premises under a license to which Subsection (d) applies.
550	550	(g) The estate or guardian of an individual to whom
551	551	Subsection (d) applies shall notify the department [commission] not
552	552	later than one year after the date the individual dies or is
553	553	determined to be incapacitated by a court of this state. The estate
554	554	or guardian and the heirs or other appropriate person shall
555	555	promptly take all necessary steps to complete a transfer of the
556	556	license to the heirs or other appropriate person.
557	557	SECTION 1.025. Section 2001.161(c), Occupations Code, is
558	558	amended to read as follows:
559	559	(c) The department [commission] may issue a commercial
560	560	lessor license to a licensed authorized organization only for the
561	561	same premises where the organization is licensed to conduct bingo.
562	562	SECTION 1.026. Section 2001.201, Occupations Code, is
563	563	amended to read as follows:
564	564	Sec. 2001.201. MANUFACTURER'S LICENSE REQUIRED. A
565	565	manufacturer may not sell or supply or offer to sell or supply to a
566	566	person in this state or for use in this state bingo cards, boards,
567	567	sheets, pads, or other supplies, or equipment designed to be used in
568	568	playing bingo, or engage in any intrastate activity involving those
569	569	items, unless the manufacturer holds a manufacturer's license under
570	570	this subchapter.
571	571	SECTION 1.027. Section 2001.203, Occupations Code, is
572	572	amended to read as follows:
573	573	Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An
574	574	applicant for a manufacturer's license must file with the
575	575	department [commission] an application on a form prescribed by the
576	576	department [commission].
577	577	(b) The application must include:
578	578	(1) the name and address of the applicant and the name
579	579	and address of each of its locations where bingo supplies or
580	580	equipment are manufactured;
581	581	(2) a full description of each type of bingo supply or
582	582	equipment that the applicant intends to manufacture or market in
583	583	this state and the brand name, if any, under which each item will be
584	584	sold;
585	585	(3) if the applicant:
586	586	(A) is not a corporation, the name and home
587	587	address of each owner; or
588	588	(B) is a corporation, the name and home address
589	589	of each officer and director and each person owning more than 10
590	590	percent of a class of stock in the corporation;
591	591	(4) if the applicant is a foreign corporation or other
592	592	foreign legal entity, the name, business name and address, and
593	593	address of its registered agent for service in this state;
594	594	(5) the name and address of each manufacturer,
595	595	supplier, and distributor in which the applicant has a financial
596	596	interest and the details of that financial interest, including any
597	597	indebtedness between the applicant and the manufacturer, supplier,
598	598	or distributor of $5,000 or more;
599	599	(6) information regarding whether the applicant or a
600	600	person required to be named in the application has been convicted in
601	601	this state or another state of criminal fraud or a gambling or
602	602	gambling-related offense;
603	603	(7) information regarding whether the applicant or a
604	604	person required to be named in the application is an owner, officer,
605	605	director, shareholder, agent, or employee of a licensed commercial
606	606	lessor or conducts, promotes, administers, or assists in
607	607	conducting, promoting, or administering bingo for which a license
608	608	is required by this chapter;
609	609	(8) information regarding whether the applicant or a
610	610	person required to be named in the application is a public officer
611	611	or public employee in this state;
612	612	(9) the name of each state in which the applicant is or
613	613	has been licensed to manufacture, distribute, or supply bingo
614	614	equipment or supplies, each license number, the period of time
615	615	licensed under each license, and whether a license has been
616	616	revoked, suspended, withdrawn, canceled, or surrendered and, if so,
617	617	the reasons for the action taken;
618	618	(10) information regarding whether the applicant or a
619	619	person required to be named in the application is or has been a
620	620	professional gambler or gambling promoter;
621	621	(11) the names and addresses of each manufacturer,
622	622	supplier, or distributor of bingo equipment or supplies in which
623	623	the applicant or a person required to be named in the application is
624	624	an owner, officer, shareholder, director, agent, or employee; and
625	625	(12) any other information the department
626	626	[commission] requests.
627	627	SECTION 1.028. Section 2001.204, Occupations Code, is
628	628	amended to read as follows:
629	629	Sec. 2001.204. MANUFACTURER'S LICENSE BOND. (a) An
630	630	applicant for a manufacturer's license must give the department
631	631	[commission] a cash bond or a bond in the amount of $10,000 issued
632	632	by a surety company chartered or authorized to do business in this
633	633	state.
634	634	(b) The bond must provide for forfeiture to the department
635	635	[state] on the manufacturer's failure to comply with this chapter
636	636	or a commission rule or on suspension or revocation of the
637	637	manufacturer's license.
638	638	SECTION 1.029. Section 2001.205(b), Occupations Code, is
639	639	amended to read as follows:
640	640	(b) In addition to the annual license fee, the department
641	641	[commission] may require an additional fee in an amount necessary
642	642	to defray the cost of a background investigation, including the
643	643	inspection of manufacturing plants and locations. The commission
644	644	by rule may establish the conditions and procedure for payment of
645	645	the additional fee.
646	646	SECTION 1.030. Section 2001.208, Occupations Code, is
647	647	amended to read as follows:
648	648	Sec. 2001.208. DISTRIBUTOR'S LICENSE APPLICATION. (a) An
649	649	applicant for a distributor's license must file with the department
650	650	[commission] an executed verified application on a form prescribed
651	651	by the department [commission].
652	652	(b) The application must include:
653	653	(1) the full name and address of the applicant;
654	654	(2) the name and address of each location operated by
655	655	the distributor from which bingo supplies or equipment are
656	656	distributed or at which bingo supplies or equipment are stored;
657	657	(3) if a noncorporate distributor, the name and home
658	658	address of each owner;
659	659	(4) if a corporate distributor, the name and home
660	660	address of each officer or director and of each person owning more
661	661	than 10 percent of a class of stock in the corporation;
662	662	(5) if a foreign corporation or other foreign legal
663	663	entity, the name, business name and address, and address of its
664	664	registered agent for service in this state;
665	665	(6) a full description of the type of bingo supply or
666	666	equipment that the applicant intends to store or distribute in this
667	667	state and the name of the manufacturer of each item and the brand
668	668	name, if any, under which the item will be sold or marketed;
669	669	(7) the name and address of a manufacturer, supplier,
670	670	or distributor in which the applicant has a financial interest and
671	671	the details of that financial interest, including an indebtedness
672	672	between the applicant and the manufacturer, supplier, or
673	673	distributor of $5,000 or more;
674	674	(8) information regarding whether the applicant or a
675	675	person required to be named in the application has been convicted in
676	676	this state or another state of criminal fraud or a gambling or
677	677	gambling-related offense;
678	678	(9) information regarding whether the applicant or a
679	679	person required to be named in the application is an owner, officer,
680	680	director, shareholder, agent, or employee of a licensed commercial
681	681	lessor or conducts, promotes, administers, or assists in
682	682	conducting, promoting, or administering bingo for which a license
683	683	is required under this chapter;
684	684	(10) information regarding whether the applicant or a
685	685	person required to be named in the application is a public officer
686	686	or public employee in this state;
687	687	(11) the name of each state in which the applicant is
688	688	or has been licensed to manufacture, distribute, or supply bingo
689	689	equipment or supplies, each license number, the period of time
690	690	licensed under each license, and whether a license was revoked,
691	691	suspended, withdrawn, canceled, or surrendered and, if so, the
692	692	reasons for the action taken;
693	693	(12) information regarding whether the applicant or a
694	694	person required to be named in the application is or has been a
695	695	professional gambler or gambling promoter;
696	696	(13) the name and address of each manufacturer,
697	697	supplier, or distributor of bingo equipment or supplies in which
698	698	the applicant or a person required to be named in the application is
699	699	an owner, officer, shareholder, director, agent, or employee; and
700	700	(14) any other information the department
701	701	[commission] requests.
702	702	SECTION 1.031. Section 2001.209(b), Occupations Code, is
703	703	amended to read as follows:
704	704	(b) In addition to the annual license fee, the department
705	705	[commission] may require an additional fee in an amount necessary
706	706	to defray the cost of a background investigation of the applicant,
707	707	including the inspection of storage, distribution, or operating
708	708	locations. The commission by rule may establish the conditions and
709	709	procedure for payment of the additional fee.
710	710	SECTION 1.032. Section 2001.211(a), Occupations Code, is
711	711	amended to read as follows:
712	712	(a) An applicant for a manufacturer's or distributor's
713	713	license shall, during pendency of the application, notify the
714	714	department [commission] immediately of any change relating to a
715	715	fact stated in the application.
716	716	SECTION 1.033. Section 2001.212, Occupations Code, is
717	717	amended to read as follows:
718	718	Sec. 2001.212. DENIAL OF LICENSE. The executive director
719	719	or commission may deny an application for or renewal of a license
720	720	for a cause that would permit or require the suspension or
721	721	revocation of the license.
722	722	SECTION 1.034. Section 2001.214(a), Occupations Code, is
723	723	amended to read as follows:
724	724	(a) A [Except as provided by Subsection (b), a]
725	725	manufacturer's or distributor's license is effective for one year
726	726	unless revoked or suspended by the department [commission].
727	727	SECTION 1.035. Section 2001.216, Occupations Code, is
728	728	amended to read as follows:
729	729	Sec. 2001.216. EXAMINATION OF RECORDS. (a) The department
730	730	[commission] may examine the books and records of the holder of or
731	731	an applicant for a manufacturer's or distributor's license.
732	732	(b) The department [commission] may not disclose
733	733	information obtained during the examination except as necessary to
734	734	carry out this chapter.
735	735	SECTION 1.036. Section 2001.217, Occupations Code, is
736	736	amended to read as follows:
737	737	Sec. 2001.217. OFFENSE. (a) A person who does not hold a
738	738	manufacturer's or distributor's license commits an offense if the
739	739	person sells, offers to sell, or attempts to induce the sale of
740	740	bingo equipment or supplies to a licensed authorized organization.
741	741	(b) A first offense under this section is a state jail
742	742	felony. A subsequent offense under this section is a felony of the
743	743	third degree.
744	744	SECTION 1.037. Sections 2001.218(b) and (c), Occupations
745	745	Code, are amended to read as follows:
746	746	(b) If a payment is not made when due, the seller shall
747	747	immediately notify the department [commission]. The department
748	748	[commission] shall notify all manufacturers and distributors
749	749	licensed in this state of the default.
750	750	(c) In the event of a default, a person may not sell or
751	751	transfer bingo equipment or supplies to the purchaser in default on
752	752	terms other than immediate payment on delivery until otherwise
753	753	authorized by the department [commission].
754	754	SECTION 1.038. The heading to Subchapter G, Chapter 2001,
755	755	Occupations Code, is amended to read as follows:
756	756	SUBCHAPTER G. GENERAL PROVISIONS RELATING TO
757	757	DEPARTMENT [COMMISSION] LICENSES
758	758	SECTION 1.039. Section 2001.301, Occupations Code, is
759	759	amended to read as follows:
760	760	Sec. 2001.301. LICENSE INVESTIGATION. Promptly after the
761	761	filing of the application for a license under this chapter, the
762	762	department [commission] shall investigate the qualifications of
763	763	each applicant and the merits of the application.
764	764	SECTION 1.040. Section 2001.302, Occupations Code, is
765	765	amended to read as follows:
766	766	Sec. 2001.302. PROVISION OF SUPPLEMENTAL INFORMATION. (a)
767	767	In addition to any required application form, a license applicant
768	768	or license holder shall submit any supplemental information
769	769	requested by the department [commission].
770	770	(b) The executive director or commission may deny or refuse
771	771	to renew a license application or revoke a license based on a
772	772	failure to submit requested supplemental information when
773	773	required.
774	774	SECTION 1.041. Section 2001.3025, Occupations Code, is
775	775	amended to read as follows:
776	776	Sec. 2001.3025. ACCESS TO CRIMINAL HISTORY RECORD
777	777	INFORMATION. The department [commission] is entitled to conduct an
778	778	investigation of and is entitled to obtain criminal history record
779	779	information maintained by the Department of Public Safety, the
780	780	Federal Bureau of Investigation identification division, or
781	781	another law enforcement agency to assist in the investigation of:
782	782	(1) an applicant for or holder of a license issued
783	783	under this chapter;
784	784	(2) a person required to be named in a license
785	785	application; or
786	786	(3) an employee or other person who works or will work
787	787	for a license holder and who is required by another provision of
788	788	this chapter to undergo a criminal background check.
789	789	SECTION 1.042. Sections 2001.306(a), (a-1), and (d),
790	790	Occupations Code, are amended to read as follows:
791	791	(a) A license issued under this chapter may be amended on
792	792	application to the department [commission] and on payment of a fee
793	793	in the amount required by the department [commission] if the
794	794	subject matter of the proposed amendment could properly have been
795	795	included in the original license.
796	796	(a-1) The commission by rule shall establish an amendment
797	797	fee schedule. The amount of a fee charged by the department
798	798	[commission] may vary based on the complexity of the proposed
799	799	license amendment.
800	800	(d) The holder of a license to conduct bingo shall notify
801	801	the department [commission] before changing the time or date of a
802	802	game. The license holder may provide notice to the department
803	803	[commission] regarding the change by use of telephone or other
804	804	means acceptable to the department [facsimile].
805	805	SECTION 1.043. Section 2001.307, Occupations Code, is
806	806	amended to read as follows:
807	807	Sec. 2001.307. MAXIMUM LICENSE TERM. A [Except as
808	808	otherwise provided by this chapter, a] license issued under this
809	809	chapter may not be effective for more than one year.
810	810	SECTION 1.044. Section 2001.311, Occupations Code, is
811	811	amended to read as follows:
812	812	Sec. 2001.311. RIGHTS NOT VESTED. The issuance of a license
813	813	[or temporary authorization] by the department [commission] does
814	814	not grant a vested right in the license[, the temporary
815	815	authorization,] or the privileges conferred.
816	816	SECTION 1.045. Sections 2001.315(a) and (b), Occupations
817	817	Code, are amended to read as follows:
818	818	(a) A person who fails to renew the person's license under
819	819	this chapter before the date the license expires may renew the
820	820	license after the expiration date by:
821	821	(1) filing a license renewal application with the
822	822	department [commission] not later than the 14th day after the date
823	823	the license expires, paying the applicable annual license fee, and
824	824	paying a late license renewal fee equal to 10 percent of the annual
825	825	license fee; or
826	826	(2) filing a license renewal application with the
827	827	department [commission] not later than the 60th day after the date
828	828	the license expires, paying the applicable annual license fee, and
829	829	paying a late license renewal fee equal to 10 percent of the annual
830	830	license fee for each 14-day period occurring after the date the
831	831	license expires and before the date the renewal application is
832	832	filed with the department [commission].
833	833	(b) A person who files a renewal application with the
834	834	department [commission] under Subsection (a) may continue to
835	835	perform the bingo activities authorized under the license as if the
836	836	license has not expired until the license is renewed or renewal of
837	837	the license is denied.
838	838	SECTION 1.046. Section 2001.316, Occupations Code, is
839	839	amended to read as follows:
840	840	Sec. 2001.316. DELIVERY OF DEPARTMENT [COMMISSION] NOTICE.
841	841	If notice under this chapter is required to be given to an
842	842	authorized organization, the department [commission] shall send
843	843	the notice to the bingo chairperson of the authorized organization
844	844	and to the appropriate commercial lessor, if applicable.
845	845	SECTION 1.047. The heading to Section 2001.353, Occupations
846	846	Code, is amended to read as follows:
847	847	Sec. 2001.353. DISCIPLINE OF LICENSE [AND REGISTRATION]
848	848	HOLDERS.
849	849	SECTION 1.048. Sections 2001.353(a), (b), and (c),
850	850	Occupations Code, are amended to read as follows:
851	851	(a) After a hearing, the executive director or commission
852	852	may suspend, revoke, or refuse to renew a license [or registration]
853	853	issued under this chapter for:
854	854	(1) failure to comply with this chapter or a
855	855	commission rule; or
856	856	(2) a reason that would allow or require the executive
857	857	director or commission to refuse to issue or renew a license [or
858	858	registration] of the same class.
859	859	(b) The executive director or commission may place on
860	860	probation a person whose license [or registration] is suspended.
861	861	If a license [or registration] suspension is probated, the
862	862	executive director or commission may require the person:
863	863	(1) to report regularly to the department [commission]
864	864	on the matters that are the basis of the probation;
865	865	(2) to limit the person's activities under the license
866	866	[or registration] in the manner prescribed by the executive
867	867	director or commission; or
868	868	(3) to take any other reasonable action prescribed by
869	869	the executive director or commission to address the matters that
870	870	are the basis of the probation.
871	871	(c) If the person fails to comply with the conditions of
872	872	probation, the executive director or commission may suspend or
873	873	revoke the person's license [or registration].
874	874	SECTION 1.049. Section 2001.403(b), Occupations Code, is
875	875	amended to read as follows:
876	876	(b) This section does not apply if more than one premises
877	877	lawfully exists under a common roof or over a common foundation
878	878	under a license application filed with the Texas Lottery Commission
879	879	[commission] on or before May 23, 1997. The department
880	880	[commission] shall renew a license at the premises that is
881	881	otherwise in compliance with this chapter.
882	882	SECTION 1.050. Section 2001.407(f), Occupations Code, is
883	883	amended to read as follows:
884	884	(f) With the prior written consent of the department
885	885	[commission], a licensed authorized organization may make an
886	886	occasional sale of bingo cards or of a used bingo flash board or
887	887	blower to another licensed authorized organization.
888	888	SECTION 1.051. Section 2001.409, Occupations Code, is
889	889	amended by adding Subsection (b) to read as follows:
890	890	(b) Nothing in this chapter shall be construed as
891	891	authorizing any game using a video lottery machine or machines. In
892	892	this section "video lottery machine" or "machine" means any
893	893	electronic video game machine that, on insertion of cash, is
894	894	available to play or simulate the play of a video game, including
895	895	but not limited to video poker, keno, and blackjack, utilizing a
896	896	video display and microprocessor in which the player may receive
897	897	free games or credits that can be redeemed for cash, coins, or
898	898	tokens or that directly dispenses cash, coins, or tokens.
899	899	SECTION 1.052. Section 2001.411(e), Occupations Code, is
900	900	amended to read as follows:
901	901	(e) The department [commission] may not prohibit an
902	902	operator responsible for conducting, promoting, or administering
903	903	bingo from acting as a bingo caller for a licensed authorized
904	904	organization during a bingo occasion. This subsection does not
905	905	relieve the operator of the duty to be available to a department
906	906	[commission] employee or bingo player if required by this chapter.
907	907	SECTION 1.053. Section 2001.414, Occupations Code, is
908	908	amended to read as follows:
909	909	Sec. 2001.414. BINGO RECORDS. (a) The commission by rule
910	910	may provide for different recordkeeping procedures for licensed
911	911	authorized organizations by class based on the amount of the
912	912	organization's total [gross] receipts derived from the conduct of
913	913	bingo [of the organization].
914	914	(b) An organization conducting bingo must record on a cash
915	915	register all transactions for which it receives total [bingo gross]
916	916	receipts derived from the conduct of bingo in conformance with
917	917	commission rules relating to transaction recording specifications.
918	918	SECTION 1.054. Section 2001.415, Occupations Code, is
919	919	amended to read as follows:
920	920	Sec. 2001.415. ADVERTISEMENTS. (a) A person other than a
921	921	licensed authorized organization or a[,] licensed commercial
922	922	lessor[, or the commission] may not advertise bingo.
923	923	(b) A licensed authorized organization or[,] licensed
924	924	commercial lessor[, or the commission] may include in an
925	925	advertisement or promotion the amount of a prize or series of prizes
926	926	offered at a bingo occasion.
927	927	SECTION 1.055. Section 2001.420, Occupations Code, is
928	928	amended by adding Subsections (b-1), (d), (e), (f), and (g) to read
929	929	as follows:
930	930	(b-1) For purposes of Subsections (a) and (b), the value of
931	931	a merchandise bingo prize is the amount paid for the merchandise by
932	932	the licensed authorized organization. A merchandise bingo prize
933	933	includes bingo cards, bingo pull-tabs, the use of a card-minder,
934	934	bingo daubers, and other bingo merchandise awarded as a prize for
935	935	winning a bingo game.
936	936	(d) The commission may adopt for a bingo market region in
937	937	this state rules that affect the percentage of total receipts
938	938	derived from the conduct of bingo that is paid by licensed
939	939	authorized organizations within that market region as prizes for
940	940	bingo games if the commission determines that the percentages of
941	941	the total receipts paid for the prizes by the organizations within
942	942	that market region unreasonably reduce the amount of the
943	943	organizations' net proceeds in that market region.
944	944	(e) A rule adopted under Subsection (d):
945	945	(1) may establish a minimum price charged for a bingo
946	946	card or pull-tab or for use of a card-minding device;
947	947	(2) must allow flexibility in compliance with the rule
948	948	by the licensed authorized organizations within the affected bingo
949	949	market region to allow the organizations to achieve substantial
950	950	compliance without undue burden on the organizations or their
951	951	customers; and
952	952	(3) must apply equally to each licensed authorized
953	953	organization operating at a bingo premises within the bingo market
954	954	region.
955	955	(f) An individual bingo market region set by the commission
956	956	must include all the territory in a single county and may include
957	957	part of the territory in an adjacent county as necessary for the
958	958	commission to define a bingo market region under Subsection (d).
959	959	(g) The commission shall annually review the impact of a
960	960	rule adopted under Subsection (d) on the conduct of bingo within the
961	961	bingo market region and may amend or repeal the rule if the rule
962	962	does not serve the purposes of Subsection (d).
963	963	SECTION 1.056. Sections 2001.437(a), (b), and (d),
964	964	Occupations Code, are amended to read as follows:
965	965	(a) If the unit accounting agreement of a unit states that a
966	966	unit manager is responsible for compliance with commission rules
967	967	and this chapter, the unit manager is responsible for:
968	968	(1) the filing of one quarterly report for the unit on
969	969	a form prescribed by the executive director [commission]; and
970	970	(2) the payment of taxes and fees and the maintenance
971	971	of the bingo inventory and financial records of the unit.
972	972	(b) A unit with a unit manager shall notify the department
973	973	[commission] of the name of the unit manager and immediately notify
974	974	the department [commission] of any change of unit manager.
975	975	(d) An applicant for a unit manager license must file with
976	976	the department [commission] a written application on a form
977	977	prescribed by the executive director [commission] that includes:
978	978	(1) the name and address of the applicant;
979	979	(2) information regarding whether the applicant, or
980	980	any officer, director, or employee of the applicant, has been
981	981	convicted of criminal fraud or a gambling or gambling-related
982	982	offense; and
983	983	(3) any other information required by commission rule.
984	984	SECTION 1.057. Sections 2001.438(b) and (d), Occupations
985	985	Code, are amended to read as follows:
986	986	(b) The unit shall designate with the department
987	987	[commission] an agent who will be responsible for providing the
988	988	department [commission] access to all inventory and financial
989	989	records of the unit on request of the department [commission].
990	990	(d) The unit shall immediately notify the department
991	991	[commission] of any change in the agent designated under Subsection
992	992	(b).
993	993	SECTION 1.058. Section 2001.439(c), Occupations Code, is
994	994	amended to read as follows:
995	995	(c) The department [commission] may prohibit a person who
996	996	serves as a designated agent that is listed on a license under this
997	997	chapter, including having been approved by the department
998	998	[commission] to work in the bingo operations of a licensed
999	999	authorized organization or as an operator, from holding or being
1000	1000	listed on any license or from being approved to work in the bingo
1001	1001	operations of any licensed authorized organization or to serve as
1002	1002	an operator if the person has failed to comply with the duties
1003	1003	required of the person as a unit manager or designated agent.
1004	1004	SECTION 1.059. Sections 2001.451(b), (c), (d), (e), (g),
1005	1005	(i), (j), and (k), Occupations Code, are amended to read as follows:
1006	1006	(b) Except as provided by Section 2001.502(a), a [A]
1007	1007	licensed authorized organization shall deposit in the bingo account
1008	1008	all funds derived from the conduct of bingo, less the amount awarded
1009	1009	as cash prizes under Sections 2001.420(a) and (b). A [Except as
1010	1010	provided by Subsection (b-1), a] deposit must be made not later than
1011	1011	the second business day after the day of the bingo occasion on which
1012	1012	the receipts were obtained.
1013	1013	(c) A licensed authorized organization may transfer money
1014	1014	from its general fund or other account to the organization's bingo
1015	1015	account or to the bingo account of a unit of which the organization
1016	1016	is a member under Subchapter I-1, if applicable, if:
1017	1017	(1) the balance in the bingo account to which the funds
1018	1018	are transferred is less than the maximum amount permitted by this
1019	1019	section; and
1020	1020	(2) the organization notifies the department
1021	1021	[commission] of the transfer not later than the 14th day after the
1022	1022	date of the transfer.
1023	1023	(d) Except as permitted by Subsection (c), a licensed
1024	1024	authorized organization may not commingle [gross] receipts derived
1025	1025	from the conduct of bingo with other funds of the organization.
1026	1026	(e) Except as permitted by Subsection (c) of this section
1027	1027	and by Section 2001.453(2), a licensed authorized organization may
1028	1028	not transfer [gross] receipts derived from the conduct of bingo to
1029	1029	another account maintained by the organization.
1030	1030	(g) The bingo operations of a licensed authorized
1031	1031	organization must[:
1032	1032	[(1)] result in net proceeds in the amounts provided
1033	1033	by Section 2001.460 over the calendar year in which the license is
1034	1034	in effect [the organization's license period; or
1035	1035	[(2) if the organization has a two-year license,
1036	1036	result in net proceeds over each 12-month period that ends on an
1037	1037	anniversary of the date the two-year license was issued].
1038	1038	(i) Prize taxes [fees] held in escrow for remittance as
1039	1039	provided by this chapter [to the commission] are not included in the
1040	1040	calculation of operating capital under Subsection (h).
1041	1041	(j) The commission shall adopt rules allowing a licensed
1042	1042	authorized organization to retain a maximum amount of operating
1043	1043	capital in the bingo account in excess of the amount provided by
1044	1044	Subsection (h) if the organization:
1045	1045	(1) has conducted bingo for less than one year;
1046	1046	(2) experiences circumstances beyond the control of
1047	1047	the organization, including force majeure, that necessitate an
1048	1048	increase in operating capital; or
1049	1049	(3) provides to the department [commission] a credible
1050	1050	business plan for the conduct of bingo or for the organization's
1051	1051	existing or planned charitable purposes that an increase in
1052	1052	operating capital will reasonably further.
1053	1053	(k) A licensed authorized organization may apply to the
1054	1054	department [commission] for a waiver of the requirements of this
1055	1055	section and Section 2001.457. The department [commission] may
1056	1056	grant the waiver on a showing of good cause by the organization that
1057	1057	compliance with this section and Section 2001.457 is detrimental to
1058	1058	the organization's existing or planned charitable purposes. An
1059	1059	organization applying for a waiver establishes good cause by
1060	1060	providing to the department [commission]:
1061	1061	(1) credible evidence of circumstances beyond the
1062	1062	control of the organization, including force majeure; or
1063	1063	(2) a credible business plan for the organization's
1064	1064	conduct of bingo or the organization's existing or planned
1065	1065	charitable purposes.
1066	1066	SECTION 1.060. Section 2001.457(b), Occupations Code, is
1067	1067	amended to read as follows:
1068	1068	(b) If a licensed authorized organization fails to meet the
1069	1069	requirements of Subsection (a) for a quarter, the department
1070	1070	[commission] in applying appropriate sanctions shall consider
1071	1071	whether, taking into account the amount required to be disbursed
1072	1072	during that quarter and the three preceding quarters, the
1073	1073	organization has disbursed a total amount sufficient to have met
1074	1074	the disbursement requirement for that quarter and the three
1075	1075	preceding quarters combined.
1076	1076	SECTION 1.061. Subchapter J, Chapter 2001, Occupations
1077	1077	Code, is amended by adding Section 2001.460 to read as follows:
1078	1078	Sec. 2001.460. REQUIRED MINIMUM NET PROCEEDS. (a) If the
1079	1079	combined gross gaming revenue of the licensed authorized
1080	1080	organizations located at a single bingo premises exceeds $500,000
1081	1081	in a calendar year, the combined net proceeds of those
1082	1082	organizations for that calendar year may not be less than 10 percent
1083	1083	of the combined gross gaming revenue of those organizations.
1084	1084	(a-1) Notwithstanding Subsection (a), if the combined gross
1085	1085	gaming revenue of the licensed authorized organizations located at
1086	1086	a single bingo premises exceeds $500,000 in a calendar year, the
1087	1087	combined net proceeds of those organizations may not be:
1088	1088	(1) in 2016, less than six percent of the combined
1089	1089	gross gaming revenue of those organizations; and
1090	1090	(2) in 2017, less than eight percent of the combined
1091	1091	gross gaming revenue of those organizations.
1092	1092	(b) If the combined gross gaming revenue of the licensed
1093	1093	authorized organizations located at a single bingo premises is
1094	1094	equal to $500,000 or less in a calendar year, the combined net
1095	1095	proceeds of those organizations for that calendar year may not be
1096	1096	less than five percent of the combined gross gaming revenue of those
1097	1097	organizations.
1098	1098	(b-1) Notwithstanding Subsection (b) and subject to
1099	1099	Subsection (c), if the combined gross gaming revenue of the
1100	1100	licensed authorized organizations located at a single bingo
1101	1101	premises is equal to $500,000 or less in a calendar year, the
1102	1102	combined net proceeds of those organizations for that calendar year
1103	1103	may not be:
1104	1104	(1) in 2016, less than three percent of the combined
1105	1105	gross gaming revenue of those organizations; and
1106	1106	(2) in 2017, less than four percent of the combined
1107	1107	gross gaming revenue of those organizations.
1108	1108	(c) A licensed authorized organization located at a bingo
1109	1109	premises described by Subsection (b) that conducts not more than
1110	1110	two bingo occasions during any week during a calendar year is exempt
1111	1111	from the requirements of Subsection (b). The commission by rule may
1112	1112	impose minimum net proceeds requirements in amounts less than the
1113	1113	amounts required under Subsection (b) on the organizations located
1114	1114	at a premises to which this subsection applies.
1115	1115	(c-1) This subsection applies only to a bingo premises that
1116	1116	on January 1, 2015, was operated under an active lessor license and
1117	1117	was located in a county any part of which is within 75 miles of a
1118	1118	casino that has electronic gaming. Notwithstanding any other
1119	1119	subsection of this section, the minimum net proceeds requirement
1120	1120	for a single bingo premises described by this subsection during a
1121	1121	calendar year is:
1122	1122	(1) for a single bingo premises at which the licensed
1123	1123	authorized organizations have a combined gross gaming revenue that
1124	1124	exceeds $500,000, the lesser of:
1125	1125	(A) the amount determined using the percentage
1126	1126	required by this section; or
1127	1127	(B) $12,000 multiplied by the number of licensed
1128	1128	authorized organizations conducting bingo at that premises; and
1129	1129	(2) for a single bingo premises at which the licensed
1130	1130	authorized organizations have a combined gross gaming revenue equal
1131	1131	to $500,000 or less, the lesser of:
1132	1132	(A) the amount determined using the percentage
1133	1133	required by this section; or
1134	1134	(B) $6,000 multiplied by the number of licensed
1135	1135	authorized organizations conducting bingo at that premises.
1136	1136	(c-2) This subsection and Subsections (a-1), (b-1), and
1137	1137	(c-1) expire December 31, 2019.
1138	1138	(d) The department shall waive or reduce the minimum net
1139	1139	proceeds required by this section if:
1140	1140	(1) bingo has been conducted at the bingo premises for
1141	1141	less than 12 months;
1142	1142	(2) circumstances beyond the control of the licensed
1143	1143	authorized organizations operating at the bingo premises,
1144	1144	including force majeure, prevented the organizations from
1145	1145	satisfying the minimum net proceeds percentage;
1146	1146	(3) the licensed authorized organizations present a
1147	1147	business plan that the department determines reasonably
1148	1148	establishes procedures to satisfy the minimum net proceeds
1149	1149	percentage in the next calendar year; or
1150	1150	(4) based on an annual department survey of one or more
1151	1151	bingo markets, the department determines that legal or illegal
1152	1152	gaming in the area of the bingo premises affected the ability of the
1153	1153	organizations conducting bingo at that bingo premises to satisfy
1154	1154	the minimum net proceeds percentage.
1155	1155	(e) If the department waives or reduces the minimum net
1156	1156	proceeds percentage required by this section because of illegal
1157	1157	gaming, the department shall notify the county commissioners court
1158	1158	of the county in which each affected bingo premises is located and
1159	1159	the governing body of any municipality in which the premises is
1160	1160	located of the department's action and the reasons for that action.
1161	1161	SECTION 1.062. The heading to Subchapter K, Chapter 2001,
1162	1162	Occupations Code, is amended to read as follows:
1163	1163	SUBCHAPTER K. TAXES [AND PRIZE FEES]
1164	1164	SECTION 1.063. Section 2001.502, Occupations Code, is
1165	1165	amended to read as follows:
1166	1166	Sec. 2001.502. PRIZE TAX [FEE]. (a) A licensed authorized
1167	1167	organization shall[:
1168	1168	[(1)] collect from a person who wins a cash bingo prize
1169	1169	of more than $5 a tax [fee] in the amount of five percent of the
1170	1170	amount [or value] of the prize. Each quarter, the licensed
1171	1171	authorized organization shall:
1172	1172	(1) if a county or municipality in which the bingo game
1173	1173	is conducted voted to impose the prize tax before November 1, 2015:
1174	1174	[; and]
1175	1175	(A) [(2)] remit a tax [to the commission a fee]
1176	1176	in the amount of 50 [five] percent of the amount collected as the
1177	1177	prize tax under this subsection to:
1178	1178	(i) the county in which the bingo game is
1179	1179	conducted, if the county voted to impose the tax by that date and
1180	1180	the location at which bingo is conducted is not within the limits of
1181	1181	a municipality;
1182	1182	(ii) the municipality in which the bingo
1183	1183	game is conducted, if the municipality voted to impose the tax by
1184	1184	that date and the county in which the bingo game is conducted did
1185	1185	not vote to impose the tax by that date; or
1186	1186	(iii) in equal shares, the county and the
1187	1187	municipality in which the bingo game is conducted, if the county and
1188	1188	municipality each voted to impose the tax before that date; and
1189	1189	(B) deposit the remainder of the taxes collected
1190	1190	under this subsection in the general charitable fund of the
1191	1191	organization; or
1192	1192	(2) if a county or municipality is not entitled to a
1193	1193	percentage of the amount of taxes collected under this subsection,
1194	1194	deposit the taxes collected in the general charitable fund of the
1195	1195	organization [or value of all bingo prizes awarded].
1196	1196	(b) The governing body of a county or municipality that
1197	1197	voted to impose a prize tax under Subsection (a) may at any time
1198	1198	vote to discontinue the imposition of the tax.
1199	1199	(c) The tax required under Subsection (a) does not apply to
1200	1200	a merchandise prize, including bingo cards, bingo pull-tabs, use of
1201	1201	a card-minder, bingo daubers, and other bingo merchandise awarded
1202	1202	as a prize for winning a bingo game.
1203	1203	SECTION 1.064. The heading to Section 2001.504, Occupations
1204	1204	Code, is amended to read as follows:
1205	1205	Sec. 2001.504. PAYMENT AND REPORTING OF TAX [OR FEE].
1206	1206	SECTION 1.065. Section 2001.504(a), Occupations Code, is
1207	1207	amended to read as follows:
1208	1208	(a) A tax [or fee authorized or] imposed under this
1209	1209	subchapter is due and is payable by the license holder or a person
1210	1210	conducting bingo without a license [to the commission] quarterly on
1211	1211	or before the 25th day of the month succeeding each calendar
1212	1212	quarter.
1213	1213	SECTION 1.066. Section 2001.551(f), Occupations Code, is
1214	1214	amended to read as follows:
1215	1215	(f) A game exempted under Subsection (b)(4) is subject to
1216	1216	the following restrictions:
1217	1217	(1) a person licensed or required to be licensed under
1218	1218	this chapter or having an interest in a license under this chapter
1219	1219	may not be involved, directly or indirectly, in bingo, except that a
1220	1220	licensed manufacturer or licensed distributor may sell or otherwise
1221	1221	furnish bingo equipment or supplies for use in a game;
1222	1222	(2) a person conducting bingo may purchase or
1223	1223	otherwise obtain bingo equipment or supplies through a newspaper, a
1224	1224	radio or television station, or an advertising agency and, unless
1225	1225	otherwise authorized by the department [commission], only from a
1226	1226	licensed manufacturer or licensed distributor;
1227	1227	(3) a licensed manufacturer or licensed distributor
1228	1228	may sell or otherwise furnish bingo equipment or supplies for use in
1229	1229	a game only to or through a newspaper or a radio or television
1230	1230	station or through an advertising agency acting on behalf of a
1231	1231	person authorized to conduct the game; and
1232	1232	(4) the commission by rule may require a person
1233	1233	conducting or involved in conducting the game to:
1234	1234	(A) notify the department [commission] of:
1235	1235	(i) the persons involved in conducting the
1236	1236	game;
1237	1237	(ii) the manner in which the game is to be
1238	1238	conducted; and
1239	1239	(iii) any other information required by the
1240	1240	department [commission]; and
1241	1241	(B) keep records of all transactions connected
1242	1242	with the game available for department [commission] inspection.
1243	1243	SECTION 1.067. Section 2001.554(a), Occupations Code, is
1244	1244	amended to read as follows:
1245	1245	(a) A person commits an offense and the person's license is
1246	1246	subject to revocation under this chapter if the person:
1247	1247	(1) makes a false statement or material omission in an
1248	1248	application for a license under this chapter;
1249	1249	(2) fails to maintain records that fully and
1250	1250	accurately record each transaction connected with the conducting of
1251	1251	bingo, the leasing of premises to be used for bingo, or the
1252	1252	manufacture, sale, or distribution of bingo supplies or equipment;
1253	1253	(3) falsifies or makes a false entry in a book or
1254	1254	record if the entry relates to bingo, the disposition of bingo
1255	1255	proceeds, the application of rent received by a licensed authorized
1256	1256	organization, or the gross gaming revenue [receipts] from the
1257	1257	manufacture, sale, or distribution of bingo supplies or equipment;
1258	1258	(4) diverts or pays a portion of the net proceeds of
1259	1259	bingo to a person except in furtherance of one or more of the lawful
1260	1260	purposes provided by this chapter; or
1261	1261	(5) violates this chapter or a term of a license issued
1262	1262	under this chapter.
1263	1263	SECTION 1.068. Section 2001.555(b), Occupations Code, is
1264	1264	amended to read as follows:
1265	1265	(b) The immunity granted under this section does not extend
1266	1266	to a person:
1267	1267	(1) [knowingly] conducting or participating in bingo
1268	1268	under a license obtained by a false pretense, false statement, or
1269	1269	material omission made in an application for license or otherwise;
1270	1270	or
1271	1271	(2) [knowingly] permitting the conduct of bingo on
1272	1272	premises owned or leased by the person under a license known to the
1273	1273	person to have been obtained by a false pretense or statement.
1274	1274	SECTION 1.069. Section 2001.557, Occupations Code, is
1275	1275	amended to read as follows:
1276	1276	Sec. 2001.557. INSPECTION OF PREMISES. (a) The department
1277	1277	[commission], its officers or agents, or a state, municipal, or
1278	1278	county peace officer may enter and inspect the contents of premises
1279	1279	where:
1280	1280	(1) bingo is being conducted or intended to be
1281	1281	conducted; or
1282	1282	(2) equipment used or intended for use in bingo is
1283	1283	found.
1284	1284	(b) The commission by rule shall develop and implement
1285	1285	policies and procedures to:
1286	1286	(1) prioritize the inspection of premises where bingo
1287	1287	is being conducted or is intended to be conducted in accordance with
1288	1288	the risk factors the department [commission] considers important,
1289	1289	including:
1290	1290	(A) the amount of money derived from the conduct
1291	1291	of bingo at the premises;
1292	1292	(B) the compliance history of the premises; and
1293	1293	(C) the amount of time that has elapsed since the
1294	1294	date of the immediately preceding department [commission]
1295	1295	inspection of the premises; and
1296	1296	(2) inspect premises where bingo is being conducted or
1297	1297	is intended to be conducted in accordance with the priorities
1298	1298	established under Subdivision (1).
1299	1299	SECTION 1.070. Sections 2001.558(a) and (d), Occupations
1300	1300	Code, are amended to read as follows:
1301	1301	(a) If the department [commission], the appropriate
1302	1302	governing body, or the attorney general has reason to believe that
1303	1303	this chapter has been or is about to be violated, the executive
1304	1304	director [commission], the governing body, or the attorney general
1305	1305	may petition a court for injunctive relief to restrain the
1306	1306	violation.
1307	1307	(d) If the court finds that this chapter has been
1308	1308	[knowingly] violated, the court shall order all proceeds from the
1309	1309	illegal bingo to be forfeited to the appropriate governing body as a
1310	1310	civil penalty.
1311	1311	SECTION 1.071. Section 2001.559, Occupations Code, is
1312	1312	amended to read as follows:
1313	1313	Sec. 2001.559. REMEDIES NOT EXCLUSIVE. The executive
1314	1314	director or commission may suspend or revoke a license under
1315	1315	Section 2001.353 [2001.355], impose an administrative penalty
1316	1316	under Subchapter M, or both, depending on the severity of the
1317	1317	violation.
1318	1318	SECTION 1.072. Sections 2001.560(c), (c-1), (c-2), (d), and
1319	1319	(e), Occupations Code, are amended to read as follows:
1320	1320	(c) The department [commission] or a person authorized in
1321	1321	writing by the department [commission] may examine the books,
1322	1322	papers, records, equipment, and place of business of a license
1323	1323	holder and may investigate the character of the license holder's
1324	1324	business to verify the accuracy of a return, statement, or report
1325	1325	made, or, if no return is made by the license holder, to ascertain
1326	1326	and determine the amount required to be paid.
1327	1327	(c-1) The commission by rule shall develop a policy for
1328	1328	auditing license holders. The department [bingo division] shall
1329	1329	use audit risk analysis procedures established by the department
1330	1330	[commission] to:
1331	1331	(1) annually identify which license holders are most
1332	1332	at risk of violating this chapter or rules adopted under this
1333	1333	chapter; and
1334	1334	(2) develop a plan for auditing the identified license
1335	1335	holders that includes:
1336	1336	(A) a schedule for the audits of the identified
1337	1337	license holders;
1338	1338	(B) procedures to annually update the plan based
1339	1339	on successive risk analyses; and
1340	1340	(C) a completion date for each audit that is not
1341	1341	later than the fifth anniversary of the date the license holder was
1342	1342	identified as a candidate for audit.
1343	1343	(c-2) The department [bingo division] shall provide to the
1344	1344	commission a copy of the auditing plan developed under Subsection
1345	1345	(c-1).
1346	1346	(d) The commission may set and the department may charge to
1347	1347	the license holder a fee in an amount reasonably necessary to
1348	1348	recover the cost of an authorized investigation or audit authorized
1349	1349	under this chapter.
1350	1350	(e) If the department [commission] determines that a person
1351	1351	is not complying with this chapter, the department [commission]
1352	1352	shall notify the attorney general and the governing body of the
1353	1353	appropriate political subdivision.
1354	1354	SECTION 1.073. Section 2001.601, Occupations Code, is
1355	1355	amended to read as follows:
1356	1356	Sec. 2001.601. IMPOSITION OF PENALTY. The executive
1357	1357	director or commission may impose an administrative penalty against
1358	1358	a person who violates this chapter or a rule or order adopted by the
1359	1359	executive director or commission under this chapter.
1360	1360	SECTION 1.074. Section 2001.654(a), Occupations Code, is
1361	1361	amended to read as follows:
1362	1362	(a) If the officer responsible for certifying a petition
1363	1363	determines that a petition is valid, the governing body shall:
1364	1364	(1) order that an election be held in the appropriate
1365	1365	political subdivision on a date not later than the 60th day after
1366	1366	the date of the officer's certification; and
1367	1367	(2) notify the department [commission] by certified
1368	1368	mail, return receipt requested, that an election has been ordered.
1369	1369	SECTION 1.075. Section 2001.656(d), Occupations Code, is
1370	1370	amended to read as follows:
1371	1371	(d) The governing body of a political subdivision in which a
1372	1372	bingo election has been held shall not later than the 14th day after
1373	1373	the date of the election give written notification to the
1374	1374	department [commission] of the results of the election. If as a
1375	1375	result of the election bingo is legalized in the political
1376	1376	subdivision, the governing body shall furnish the department
1377	1377	[commission] with a map prepared by the governing body indicating
1378	1378	the boundaries of the political subdivision in which bingo may be
1379	1379	conducted.
1380	1380	SECTION 1.076. Section 404.073(c), Government Code, is
1381	1381	amended to read as follows:
1382	1382	(c) Interest that has been and that will be accrued or
1383	1383	earned from deposits made under a law to which this subsection
1384	1384	applies is state funds not subject to allocation or distribution to
1385	1385	taxing units, cities, or transportation authorities under that law.
1386	1386	This subsection applies to:
1387	1387	(1) Section 205.02, Alcoholic Beverage Code;
1388	1388	(2) [Section 2001.507, Occupations Code;
1389	1389	[(3)] Section 403.105(d) of this code;
1390	1390	(3) [(4)] Sections 321.501 and 321.504, Tax Code;
1391	1391	(4) [(5)] Sections 322.301 and 322.304, Tax Code; and
1392	1392	(5) [(6)] Sections 323.501 and 323.504, Tax Code.
1393	1393	SECTION 1.077. Section 467.002, Government Code, is amended
1394	1394	to read as follows:
1395	1395	Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
1396	1396	subject to Chapter 325 (Texas Sunset Act). Unless continued in
1397	1397	existence as provided by that chapter, the commission is abolished
1398	1398	and this chapter and [,] Chapter 466 [of this code, and Chapter
1399	1399	2001, Occupations Code,] expire September 1, 2025.
1400	1400	SECTION 1.078. Sections 467.024(a) and (c), Government
1401	1401	Code, are amended to read as follows:
1402	1402	(a) An individual is not eligible to be an appointed member
1403	1403	of the commission if the individual:
1404	1404	(1) is registered, certified, or licensed by a
1405	1405	regulatory agency in the field of [bingo or] lottery;
1406	1406	(2) owns or controls, directly or indirectly, more
1407	1407	than a 10 percent interest in a business entity or other
1408	1408	organization regulated by the commission or receiving funds from
1409	1409	the commission;
1410	1410	(3) is employed by or participates in the management
1411	1411	of a business entity or other organization regulated by or
1412	1412	receiving funds from the commission;
1413	1413	(4) uses or receives a substantial amount of tangible
1414	1414	goods, services, or funds from the commission, other than
1415	1415	compensation or reimbursement authorized by law for commission
1416	1416	membership, attendance, or expenses;
1417	1417	(5) is an officer, employee, or paid consultant of a
1418	1418	Texas trade association in the field of [bingo or] lottery;
1419	1419	(6) is required to register as a lobbyist under
1420	1420	Chapter 305 because of the person's activities for compensation on
1421	1421	behalf of a profession related to the operation of the commission;
1422	1422	(7) is married to an individual described by
1423	1423	Subdivisions (2)-(6);
1424	1424	(8) has been convicted of a felony or of any crime
1425	1425	involving moral turpitude; or
1426	1426	(9) is not a citizen of the United States.
1427	1427	(c) A person may not be a commission employee employed in a
1428	1428	"bona fide executive, administrative, or professional capacity,"
1429	1429	as that phrase is used for purposes of establishing an exemption to
1430	1430	the overtime provisions of the federal Fair Labor Standards Act of
1431	1431	1938 (29 U.S.C. Section 201 et seq.), if:
1432	1432	(1) the person is an officer, employee, or paid
1433	1433	consultant of a Texas trade association in the field of [bingo or]
1434	1434	lottery; or
1435	1435	(2) the person's spouse is an officer, manager, or paid
1436	1436	consultant of a Texas trade association in the field of [bingo or]
1437	1437	lottery.
1438	1438	SECTION 1.079. Section 467.025(a), Government Code, is
1439	1439	amended to read as follows:
1440	1440	(a) A commission member may not:
1441	1441	(1) accept any employment or remuneration from[:
1442	1442	[(A)] a person that has a significant financial
1443	1443	interest in the lottery[; or
1444	1444	[(B) a bingo commercial lessor, bingo
1445	1445	distributor, or bingo manufacturer];
1446	1446	(2) play any lottery [or bingo] game conducted in this
1447	1447	state;
1448	1448	(3) accept or be entitled to accept any part of the
1449	1449	winnings to be paid from a lottery [or bingo] game conducted in this
1450	1450	state;
1451	1451	(4) use the member's official authority to affect the
1452	1452	result of an election or nomination for public office; or
1453	1453	(5) directly or indirectly coerce, attempt to coerce,
1454	1454	command, or advise a person to pay, lend, or contribute anything of
1455	1455	value to another person for political purposes.
1456	1456	SECTION 1.080. Section 467.033, Government Code, is amended
1457	1457	to read as follows:
1458	1458	Sec. 467.033. DIRECTOR OF LOTTERY OPERATIONS [DIVISION
1459	1459	DIRECTORS]. The executive director shall employ a director of
1460	1460	lottery operations who [to oversee each division. A division
1461	1461	director] serves at the will of the executive director and is
1462	1462	specifically exempted from Chapter 654.
1463	1463	SECTION 1.081. Section 467.035(a), Government Code, is
1464	1464	amended to read as follows:
1465	1465	(a) The commission may not employ or continue to employ a
1466	1466	person who owns a financial interest in[:
1467	1467	[(1) a bingo commercial lessor, bingo distributor, or
1468	1468	bingo manufacturer; or
1469	1469	[(2)] a lottery sales agency or a lottery operator.
1470	1470	SECTION 1.082. Sections 467.101(a) and (c), Government
1471	1471	Code, are amended to read as follows:
1472	1472	(a) The commission has broad authority and shall exercise
1473	1473	strict control and close supervision over all activities authorized
1474	1474	and conducted in this state under[:
1475	1475	[(1) Chapter 2001, Occupations Code; and
1476	1476	[(2)] Chapter 466 [of this code].
1477	1477	(c) The commission also has the powers and duties granted
1478	1478	under[:
1479	1479	[(1) Chapter 2001, Occupations Code; and
1480	1480	[(2)] Chapter 466 [of this code].
1481	1481	SECTION 1.083. Section 467.111(f), Government Code, is
1482	1482	amended to read as follows:
1483	1483	(f) The commission shall prepare a report on the trends and
1484	1484	issues identified under Subsection (e) and make the report
1485	1485	available to the public. The commission shall address the
1486	1486	identified trends and issues, including trends and issues related
1487	1487	to the regulation of lottery operations under Chapter 466 [and of
1488	1488	bingo under Chapter 2001, Occupations Code].
1489	1489	SECTION 1.084. (a) Sections 467.021(c) and 467.031,
1490	1490	Government Code, are repealed.
1491	1491	(b) The following provisions of the Occupations Code are
1492	1492	repealed:
1493	1493	(1) Section 2001.051(c);
1494	1494	(2) Section 2001.052;
1495	1495	(3) Section 2001.0541;
1496	1496	(4) Section 2001.058;
1497	1497	(5) Section 2001.060(b);
1498	1498	(6) Section 2001.101(b);
1499	1499	(7) Sections 2001.103(e) and (h);
1500	1500	(8) Section 2001.157;
1501	1501	(9) Section 2001.158(d);
1502	1502	(10) Section 2001.159(c);
1503	1503	(11) Sections 2001.211(b), (c), and (d);
1504	1504	(12) Section 2001.213;
1505	1505	(13) Section 2001.214(b);
1506	1506	(14) Section 2001.304;
1507	1507	(15) Section 2001.305;
1508	1508	(16) Section 2001.308;
1509	1509	(17) Section 2001.313;
1510	1510	(18) Section 2001.314;
1511	1511	(19) Section 2001.351;
1512	1512	(20) Section 2001.352;
1513	1513	(21) Section 2001.353(d);
1514	1514	(22) Section 2001.354;
1515	1515	(23) Section 2001.355;
1516	1516	(24) Section 2001.356;
1517	1517	(25) Section 2001.357;
1518	1518	(26) Section 2001.358;
1519	1519	(27) Section 2001.436(c);
1520	1520	(28) Section 2001.437(f);
1521	1521	(29) Section 2001.451(b-1);
1522	1522	(30) Section 2001.459(b);
1523	1523	(31) Section 2001.501;
1524	1524	(32) Section 2001.503;
1525	1525	(33) Sections 2001.504(b), (c), (d), and (e);
1526	1526	(34) Section 2001.507;
1527	1527	(35) Section 2001.508;
1528	1528	(36) Section 2001.509;
1529	1529	(37) Section 2001.510;
1530	1530	(38) Section 2001.511;
1531	1531	(39) Section 2001.512;
1532	1532	(40) Section 2001.513;
1533	1533	(41) Section 2001.514;
1534	1534	(42) Section 2001.515;
1535	1535	(43) Section 2001.553;
1536	1536	(44) Section 2001.602;
1537	1537	(45) Section 2001.603;
1538	1538	(46) Section 2001.604;
1539	1539	(47) Section 2001.605;
1540	1540	(48) Section 2001.606;
1541	1541	(49) Section 2001.607;
1542	1542	(50) Section 2001.608;
1543	1543	(51) Section 2001.609;
1544	1544	(52) Section 2001.610; and
1545	1545	(53) Section 2001.611.
1546	1546	(c) Section 10, Chapter 1057 (H.B. 3021), Acts of the 74th
1547	1547	Legislature, Regular Session, 1995, is repealed.
1548	1548	SECTION 1.085. (a) On September 1, 2015:
1549	1549	(1) all functions and activities performed by the
1550	1550	Texas Lottery Commission relating to the regulation of bingo
1551	1551	operations under Chapter 2001, Occupations Code, immediately
1552	1552	before that date are transferred to the Texas Department of
1553	1553	Licensing and Regulation;
1554	1554	(2) a rule, policy, procedure, decision, or form
1555	1555	adopted by the Texas Lottery Commission relating to Chapter 2001,
1556	1556	Occupations Code, is a rule, policy, procedure, decision, or form
1557	1557	of the Texas Commission of Licensing and Regulation or the Texas
1558	1558	Department of Licensing and Regulation, as applicable, and remains
1559	1559	in effect until amended or replaced by that commission or
1560	1560	department unless the rule, policy, procedure, decision, or form
1561	1561	conflicts with the changes in law made by this Act;
1562	1562	(3) unless the context clearly indicates otherwise, a
1563	1563	reference to the Texas Lottery Commission in a law or
1564	1564	administrative rule that relates to Chapter 2001, Occupations Code,
1565	1565	means the Texas Commission of Licensing and Regulation or the Texas
1566	1566	Department of Licensing and Regulation, as applicable;
1567	1567	(4) a complaint, investigation, or other proceeding
1568	1568	before the Texas Lottery Commission that is related to Chapter
1569	1569	2001, Occupations Code, is transferred without change in status to
1570	1570	the Texas Department of Licensing and Regulation, and the Texas
1571	1571	Department of Licensing and Regulation assumes, as appropriate and
1572	1572	without a change in status, the position of the Texas Lottery
1573	1573	Commission in an action or proceeding to which the Texas Lottery
1574	1574	Commission is a party;
1575	1575	(5) a license, permit, certification, or registration
1576	1576	in effect that was issued by the Texas Lottery Commission under
1577	1577	Chapter 2001, Occupations Code, is continued in effect as a
1578	1578	license, permit, certification, or registration of the Texas
1579	1579	Department of Licensing and Regulation;
1580	1580	(6) all money, contracts, leases, property, and
1581	1581	obligations of the Texas Lottery Commission relating to Chapter
1582	1582	2001, Occupations Code, are transferred to the Texas Department of
1583	1583	Licensing and Regulation; and
1584	1584	(7) the unexpended and unobligated balance of any
1585	1585	money appropriated by the legislature for the Texas Lottery
1586	1586	Commission related to Chapter 2001, Occupations Code, is
1587	1587	transferred to the Texas Department of Licensing and Regulation.
1588	1588	(b) On September 1, 2015, all full time equivalent employee
1589	1589	positions at the Texas Lottery Commission that primarily concern
1590	1590	the administration, auditing, accounting, enforcement, or other
1591	1591	direct and indirect support of Chapter 2001, Occupations Code,
1592	1592	become positions at the Texas Department of Licensing and
1593	1593	Regulation. When filling the positions, the Texas Department of
1594	1594	Licensing and Regulation shall give first consideration to an
1595	1595	applicant who, as of August 31, 2015, was an employee at the Texas
1596	1596	Lottery Commission primarily involved in administering or
1597	1597	enforcing Chapter 2001, Occupations Code.
1598	1598	(c) Not later than June 1, 2015, the Texas Lottery
1599	1599	Commission shall grant the Texas Department of Licensing and
1600	1600	Regulation inquiry-only security access to:
1601	1601	(1) all licensing, enforcement, and examination
1602	1602	software or computer systems used by the Texas Lottery Commission
1603	1603	in administering or enforcing Chapter 2001, Occupations Code; and
1604	1604	(2) the uniform statewide accounting system, the state
1605	1605	property accounting system, the uniform statewide payroll system,
1606	1606	and the human resources information system for the Texas Lottery
1607	1607	Commission.
1608	1608	(d) Before September 1, 2015, the Texas Lottery Commission
1609	1609	may agree with the Texas Department of Licensing and Regulation to
1610	1610	transfer any property of the Texas Lottery Commission to the Texas
1611	1611	Department of Licensing and Regulation to implement the transfers
1612	1612	required by this Act.
1613	1613	(e) The Texas Department of Licensing and Regulation and the
1614	1614	Texas Lottery Commission shall coordinate implementation of this
1615	1615	section. The Texas Lottery Commission shall cooperate with the
1616	1616	Texas Department of Licensing and Regulation in transferring all
1617	1617	data and records necessary to implement the transfers required by
1618	1618	this Act.
1619	1619	(f) Before July 15, 2015, the Texas Lottery Commission and
1620	1620	the Texas Department of Licensing and Regulation shall develop and
1621	1621	enter into a memorandum of understanding regarding the transfers
1622	1622	required by this Act. The memorandum must include a transition plan
1623	1623	with a timetable and specific steps and deadlines required to
1624	1624	complete the transfer.
1625	1625	(g) Not later than December 1, 2015, a manufacturer of bingo
1626	1626	equipment or supplies that submitted to the Texas Lottery
1627	1627	Commission a bond as required under Section 2001.204, Occupations
1628	1628	Code, before September 1, 2015, that is in effect on the effective
1629	1629	date of this Act must amend the bond to name the Texas Department of
1630	1630	Licensing and Regulation as the payee for the bond.
1631	1631	(h) A bond given by an applicant for a manufacturer's
1632	1632	license as required by Section 2001.204, Occupations Code, as
1633	1633	amended by this Act, on or after the effective date of this Act must
1634	1634	comply with Subchapter E, Chapter 2001, Occupations Code, as
1635	1635	amended by this Act.
1636	1636	SECTION 1.086. (a) The repeal by this Act of Section
1637	1637	2001.553, Occupations Code, does not apply to an offense committed
1638	1638	under that section before September 1, 2015. For purposes of this
1639	1639	section, an offense is committed before September 1, 2015, if any
1640	1640	element of the offense occurs before that date.
1641	1641	(b) An offense committed before September 1, 2015, is
1642	1642	covered by that section as it existed when the offense was
1643	1643	committed, and the former law is continued in effect for that
1644	1644	purpose.
1645	1645	SECTION 1.087. The changes in law made by this Act to
1646	1646	Chapter 2001, Occupations Code, apply only to a tax or fee charged
1647	1647	on or after September 1, 2015. A tax or fee charged before
1648	1648	September 1, 2015, is governed by the law in effect immediately
1649	1649	before that date, and the former law is continued in effect for that
1650	1650	purpose.
1651	1651	SECTION 1.088. (a) The governing body of a county or
1652	1652	municipality that was entitled to receive a portion of the prize fee
1653	1653	collected under former Section 2001.503, Occupations Code, as that
1654	1654	section existed immediately before the effective date of this Act,
1655	1655	may only continue receiving a portion of the prize tax collected
1656	1656	under Section 2001.502, Occupations Code, as amended by this Act,
1657	1657	after the effective date of this Act if the governing body:
1658	1658	(1) by majority vote of the members of the governing
1659	1659	body approves the continued receipt of funds under that section and
1660	1660	notifies the Texas Department of Licensing and Regulation of that
1661	1661	decision not later than November 1, 2015; and
1662	1662	(2) notifies each licensed authorized organization
1663	1663	within the county's or municipality's jurisdiction, as applicable,
1664	1664	of the continued quarterly imposition of the tax and the payment
1665	1665	information for the tax, including the name to which a check for the
1666	1666	tax payment is made and the mailing address to which the tax payment
1667	1667	must be sent.
1668	1668	(b) Not later than October 1, 2015, the Texas Department of
1669	1669	Licensing and Regulation shall notify the governing body of a
1670	1670	county or municipality that was entitled to receive a portion of the
1671	1671	prize fee collected under former Section 2001.503, Occupations
1672	1672	Code, as that section existed immediately before the effective date
1673	1673	of this Act, of the requirements for continued receipt of the prize
1674	1674	tax under that section as provided in Subsection (a) of this
1675	1675	section.
1676	1676	SECTION 1.089. (a) Not later than March 1, 2016, the Texas
1677	1677	Commission of Licensing and Regulation shall adopt the rules
1678	1678	necessary to implement the changes in law made by this Act.
1679	1679	(b) Section 2001.451, Occupations Code, as amended by this
1680	1680	Act, applies beginning January 1, 2016.
1681	1681	(c) Section 2001.502, Occupations Code, as amended by this
1682	1682	Act, applies to prize taxes collected on and after January 1, 2016.
1683	1683	Prize taxes collected before that date are governed by the law in
1684	1684	effect immediately before the effective date of this Act, and that
1685	1685	law continues in effect for that purpose.
1686	1686	ARTICLE 2. REGULATION OF AMUSEMENT REDEMPTION MACHINE GAME ROOMS
1687	1687	ON LICENSED BINGO PREMISES
1688	1688	SECTION 2.01. Subchapter E, Chapter 234, Local Government
1689	1689	Code, as added by Chapter 1377 (H.B. 1127), Acts of the 83rd
1690	1690	Legislature, Regular Session, 2013, is amended by adding Section
1691	1691	234.1331 to read as follows:
1692	1692	Sec. 234.1331. LICENSED BINGO PREMISES. (a) Except as
1693	1693	otherwise provided by this section, regulations adopted by the
1694	1694	commissioners court of a county as authorized by Section 234.133
1695	1695	apply to a location at which bingo is conducted under Chapter 2001,
1696	1696	Occupations Code, in the same manner as the regulations apply to
1697	1697	other premises subject to the regulations.
1698	1698	(b) This subsection applies only to a location at which
1699	1699	bingo was conducted on or before January 1, 2015, under a license
1700	1700	issued under Chapter 2001, Occupations Code. The regulations
1701	1701	authorized by Section 234.133 may not:
1702	1702	(1) restrict or prohibit the location of a game room at
1703	1703	a location to which this subsection applies;
1704	1704	(2) require signage or place regulations on the
1705	1705	windows or doors of a location to which this subsection applies;
1706	1706	(3) restrict the hours of operation of a game room at a
1707	1707	location to which this subsection applies; or
1708	1708	(4) apply to a location to which this subsection
1709	1709	applies in a manner that is different from a location that derives
1710	1710	more than 50 percent of its sales from the sale of food or
1711	1711	beverages, including alcohol and liquor sales.
1712	1712	SECTION 2.02. The following provisions are repealed:
1713	1713	(1) Section 234.132, Local Government Code, as added
1714	1714	by Chapter 1377 (H.B. 1127), Acts of the 83rd Legislature, Regular
1715	1715	Session, 2013; and
1716	1716	(2) Subchapter E, Chapter 234, Local Government Code,
1717	1717	as added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature,
1718	1718	Regular Session, 2013.
1719	1719	ARTICLE 3. EFFECTIVE DATE
1720	1720	SECTION 3.01. (a) Except as provided by Subsection (b) of
1721	1721	this section, this Act takes effect September 1, 2015.
1722	1722	(b) Section 1.085 of this Act takes effect immediately if
1723	1723	this Act receives a vote of two-thirds of all the members elected to
1724	1724	each house, as provided by Section 39, Article III, Texas
1725	1725	Constitution. If this Act does not receive the vote necessary for
1726	1726	immediate effect, that section takes effect September 1, 2015.