Texas 2017 - 85th Regular

Texas House Bill HB2578 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Thompson of Harris (Senate Sponsor - Zaffirini) H.B. No. 2578
2		-	(In the Senate - Received from the House May 5, 2017;
3		-	May 12, 2017, read first time and referred to Committee on State
4		-	Affairs; May 18, 2017, reported favorably by the following vote:
5		-	Yeas 9, Nays 0; May 18, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 2578
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to the elimination of certain fees for licensure and the
12	6		disposition of certain fees collected by the Texas Lottery
13	7		Commission under the Bingo Enabling Act.
14	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	9		SECTION 1. Subchapter A, Chapter 2001, Occupations Code, is
16	10		amended by adding Section 2001.003 to read as follows:
17	11		Sec. 2001.003. REGULATORY FUNDING FROM LICENSE FEES AND
18	12		BINGO PRIZE FEES. It is the intent of the legislature that the
19	13		funding necessary for the administration of this chapter by the
20	14		commission be collected by the commission from commercial lessor,
21	15		manufacturer, and distributor license fees and money paid to the
22	16		commission by bingo players as bingo prize fees.
23	17		SECTION 2. Section 2001.103(a), Occupations Code, is
24	18		amended to read as follows:
25	19		(a) An authorized organization may receive a temporary
26	20		license to conduct bingo by filing with the commission an
27	21		application, on a form prescribed by the commission[, accompanied
28	22		by a $25 license fee].
29	23		SECTION 3. Section 2001.105(a), Occupations Code, is
30	24		amended to read as follows:
31	25		(a) The commission shall issue or renew a license to conduct
32	26		bingo [on payment of the license fee provided by Section 2001.104]
33	27		if the commission determines that:
34	28		(1) the member or members of the applicant designated
35	29		in the application to conduct bingo are active members of the
36	30		applicant;
37	31		(2) the bingo is to be conducted in accordance with
38	32		this chapter;
39	33		(3) the proceeds of the bingo are to be disposed in
40	34		accordance with this chapter;
41	35		(4) the applicant has made and can demonstrate
42	36		significant progress toward the accomplishment of the purposes of
43	37		the organization during the 12 months preceding the date of
44	38		application for a license or license renewal;
45	39		(5) all persons who will conduct, promote, or
46	40		administer the proposed bingo are active members of the applicant
47	41		organization and all other persons who will assist in conducting,
48	42		promoting, or administering the proposed bingo games are persons
49	43		authorized to do so by Section 2001.411; and
50	44		(6) no person under whose name bingo will be conducted
51	45		and no person working at the proposed bingo has been convicted of a
52	46		gambling offense or criminal fraud.
53	47		SECTION 4. Section 2001.154(a), Occupations Code, is
54	48		amended to read as follows:
55	49		(a) The commission may not issue a commercial lessor license
56	50		to or renew a commercial lessor license of:
57	51		(1) a person convicted of criminal fraud or a gambling
58	52		or gambling-related offense;
59	53		(2) a public officer who receives any consideration,
60	54		direct or indirect, as owner or lessor of premises offered for
61	55		conducting bingo;
62	56		(3) a person who [extends credit to,] loans money to[,
63	57		or pays or provides for the payment of license fees for] an
64	58		authorized organization;
65	59		(4) a distributor or manufacturer;
66	60		(5) a person in which a person covered by Subdivision
67	61		(1), (2), (3), or (4) or a person married or related in the first
68	62		degree by consanguinity or affinity, as determined under Chapter
69	63		573, Government Code, to one of those persons has greater than a 10
70	64		percent proprietary, equitable, or credit interest or in which one
71	65		of those persons is active or employed;
72	66		(6) a foreign corporation or other foreign legal
73	67		entity;
74	68		(7) an individual who is not a resident of this state;
75	69		(8) a corporation or other legal entity owned or
76	70		controlled by:
77	71		(A) a foreign corporation; or
78	72		(B) an individual who is not a resident of this
79	73		state; or
80	74		(9) a corporation or other legal entity:
81	75		(A) whose shares are publicly traded; or
82	76		(B) owned or controlled by a corporation whose
83	77		shares are publicly traded.
84	78		SECTION 5. Section 2001.438(f), Occupations Code, is
85	79		amended to read as follows:
86	80		(f) Each licensed authorized organization that is a member
87	81		of the unit shall be jointly and severally liable for:
88	82		(1) compliance with the requirements of this
89	83		subchapter and the rules of the commission relating to the filing of
90	84		required reports;
91	85		(2) the maintenance of bingo inventory and financial
92	86		records; and
93	87		(3) the payment of [fees and] any penalties imposed
94	88		for a violation of this subchapter or commission rules related to
95	89		the operations of the unit.
96	90		SECTION 6. Section 2001.458(a), Occupations Code, is
97	91		amended to read as follows:
98	92		(a) An item of expense may not be incurred or paid in
99	93		connection with the conduct of bingo except an expense that is
100	94		reasonable or necessary to conduct bingo, including an expense for:
101	95		(1) advertising, including the cost of printing bingo
102	96		gift certificates;
103	97		(2) security;
104	98		(3) repairs to premises and equipment;
105	99		(4) bingo supplies and equipment;
106	100		(5) prizes;
107	101		(6) stated rental or mortgage and insurance expenses;
108	102		(7) bookkeeping, legal, or accounting services
109	103		related to bingo;
110	104		(8) [fees for] bingo chairpersons, operators,
111	105		managers, salespersons, callers, cashiers, ushers, janitorial
112	106		services, and utility supplies and services;
113	107		(9) health insurance or health insurance benefits for
114	108		bingo chairpersons, operators, managers, salespersons, callers,
115	109		cashiers, and ushers, as provided by Subsection (b);
116	110		(10) [license fees;
117	111		[(11)] attending a bingo seminar or convention
118	112		required under Section 2001.107; and
119	113		(11) [(12)] debit card transaction fees and
120	114		electronic funds transfer fees.
121	115		SECTION 7. Section 2001.459(a), Occupations Code, is
122	116		amended to read as follows:
123	117		(a) The following items of expense incurred or paid in
124	118		connection with the conduct of bingo must be paid from an
125	119		organization's bingo account:
126	120		(1) advertising, including the cost of printing bingo
127	121		gift certificates;
128	122		(2) security during a bingo occasion;
129	123		(3) the purchase or repair of bingo supplies and
130	124		equipment;
131	125		(4) prizes, other than authorized cash prizes;
132	126		(5) stated rental expenses;
133	127		(6) bookkeeping, legal, or accounting services;
134	128		(7) fees for callers, cashiers, and ushers; and
135	129		(8) janitorial services[; and
136	130		[(9) license fees].
137	131		SECTION 8. Section 2001.502, Occupations Code, is amended
138	132		to read as follows:
139	133		Sec. 2001.502. PRIZE FEE. A licensed authorized
140	134		organization shall:
141	135		(1) collect from a person who wins a bingo prize of
142	136		more than $5 a fee in the amount of five percent of the amount or
143	137		value of the prize; and
144	138		(2) remit to the commission a fee in the amount of five
145	139		percent of the amount or value of all bingo prizes of more than $5
146	140		awarded.
147	141		SECTION 9. Section 2001.503, Occupations Code, is amended
148	142		to read as follows:
149	143		Sec. 2001.503. LOCAL SHARE OF PRIZE FEE. (a) Except as
150	144		provided by Subsection (c), a county that imposed a gross receipts
151	145		tax on the conduct of bingo as of January 1, 1993, is entitled to,
152	146		subject to Section 2001.507(i), 50 percent of the fee collected
153	147		under Section 2001.502 on a prize awarded at a game conducted in the
154	148		county.
155	149		(b) Except as provided by Subsection (c), a municipality
156	150		that imposed a gross receipts tax on the conduct of bingo as of
157	151		January 1, 1993, is entitled to, subject to Section 2001.507(i), 50
158	152		percent of the fee collected under Section 2001.502 on a prize
159	153		awarded at a game conducted in the municipality.
160	154		(c) If a county and municipality are both entitled to a
161	155		share of the fee imposed by Section 2001.502:
162	156		(1) the county is entitled to, subject to Section
163	157		2001.507(i), 25 percent of the fee on a prize awarded at a game
164	158		conducted in the county; and
165	159		(2) the municipality is entitled to, subject to
166	160		Section 2001.507(i), 25 percent of the fee on a prize awarded at a
167	161		game conducted in the municipality.
168	162		SECTION 10. Section 2001.507, Occupations Code, is amended
169	163		by amending Subsection (c) and adding Subsection (i) to read as
170	164		follows:
171	165		(c) At the end of each state fiscal year, the [The]
172	166		commission shall send [quarterly] to a county or municipality
173	167		entitled to a share of the fee on prizes the county's or
174	168		municipality's share, as provided by Section 2001.503 and
175	169		Subsection (i).
176	170		(i) The commission shall reduce the amount of each local
177	171		share of a fee to each county or municipality entitled to a share of
178	172		the fee under Section 2001.503 on a pro rata basis as necessary to
179	173		retain the amount necessary for the administration of bingo under
180	174		this chapter for the state fiscal year less the amount estimated by
181	175		the commission as license fees expected to be deposited in a special
182	176		account in the general revenue fund for that year. The amount the
183	177		commission retains under this subsection:
184	178		(1) must, in each state fiscal year, be the amount
185	179		necessary to ensure that the ratio of the amount retained under this
186	180		subsection to the amount paid to the commission as license fees
187	181		during that fiscal year is the same as the ratio of the amount
188	182		appropriated to the commission to enforce bingo laws under Chapter
189	183		1281 (H.B. 1), Acts of the 84th Legislature, Regular Session, 2015,
190	184		to the amount paid to the commission as license fees during the
191	185		state fiscal year ending August 31, 2017; and
192	186		(2) is considered miscellaneous revenue for purposes
193	187		of appropriations made to the commission under the General
194	188		Appropriations Act for the administration of this chapter.
195	189		SECTION 11. Sections 2001.104, 2001.313(b-2), and
196	190		2001.437(e), Occupations Code, are repealed.
197	191		SECTION 12. (a) The changes in law made by this Act in
198	192		amending Sections 2001.503 and 2001.507, Occupations Code, apply
199	193		beginning with the state fiscal year beginning September 1, 2017.
200	194		(b) The changes in law made by this Act to Sections
201	195		2001.103, 2001.105, and 2001.154, Occupations Code, apply to the
202	196		issuance of a license under Chapter 2001, Occupations Code, that
203	197		occurs on or after the effective date of this Act. The issuance of a
204	198		license that occurs before the effective date of this Act is
205	199		governed by the law in effect on the date the license is issued, and
206	200		the former law is continued in effect for that purpose.
207	201		SECTION 13. (a) As soon as practicable after the effective
208	202		date of this Act but not later than January 1, 2018, the Texas
209	203		Lottery Commission shall adopt rules necessary to implement this
210	204		Act.
211	205		(b) Not later than January 1, 2018, the Texas Lottery
212	206		Commission shall return to each license holder who in the year
213	207		preceding the effective date of this Act paid a license fee under
214	208		Section 2001.104 or 2001.437, Occupations Code, as those sections
215	209		existed before the effective date of this Act, any portion of the
216	210		fee attributable to the license holder's period of licensure
217	211		occurring on or after the effective date of this Act.
218	212		SECTION 14. This Act takes effect September 1, 2017.
219		-	* * * * *
	213	+	______________________________ ______________________________
	214	+	President of the Senate Speaker of the House
	215	+	I certify that H.B. No. 2578 was passed by the House on May 4,
	216	+	2017, by the following vote: Yeas 146, Nays 0, 2 present, not
	217	+	voting.
	218	+	______________________________
	219	+	Chief Clerk of the House
	220	+	I certify that H.B. No. 2578 was passed by the Senate on May
	221	+	22, 2017, by the following vote: Yeas 29, Nays 1.
	222	+	______________________________
	223	+	Secretary of the Senate
	224	+	APPROVED: _____________________
	225	+	Date
	226	+	_____________________
	227	+	Governor