85R10990 GCB-D
By: Lucio III H.B. No. 3611
A BILL TO BE ENTITLED
AN ACT
relating to the suspension of the entitlement of a county and
certain municipalities to a local share of a bingo prize fee in
counties where certain illegal gambling occurs to the detriment of
charitable bingo.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 2001, Occupations Code, is
amended by adding Section 2001.062 to read as follows:
Sec. 2001.062. COMMISSION DETERMINATION OF ILLEGAL
GAMBLING IN COUNTY. (a) An authorized organization that holds a
license to conduct bingo may provide evidence to the commission to
establish that:
(1) a place of business located in the county in which
the authorized organization conducts bingo offers patrons of the
business the opportunity to place bets through a gambling device,
as defined by Section 47.01(4), Penal Code, in violation of Chapter
47 of that code; and
(2) the conduct described by Subdivision (1) causes a
substantial detriment to charitable bingo conducted in the county.
(b) If the commission determines based on evidence
submitted under Subsection (a) that illegal gambling is occurring
in a county and is causing a substantial detriment to charitable
bingo conducted in that county, the commission shall notify the
comptroller, the county, each authorized organization that
conducts bingo in the county, and each municipality located in the
county that is entitled to a local share of a prize fee that the
state's authority to collect a prize fee under Section 2001.502 and
the entitlement to a local share under Section 2001.503 are
suspended.
(c) A county whose entitlement to a local share of a prize
fee is suspended under this section may provide evidence to the
commission to establish that the commission's determination under
Subsection (b) of detrimental illegal gambling in the county was
made in error. If, based on evidence provided by the county, the
commission agrees the determination was made in error, the
commission shall remove the suspension and notify the comptroller,
the county, each authorized organization that conducts bingo in the
county, and each municipality located in the county that is
entitled to a local share of a prize fee of the suspension's
removal.
(d) If the commission does not remove a suspension under
Subsection (c), the county may request an administrative hearing on
the matter before the State Office of Administrative Hearings.
(e) A suspension of the state's authority to collect a prize
fee and the entitlement to a local share of a prize fee continues
until removed by the commission based on evidence provided by the
county under Subsection (c), or until removed by order of an
administrative law judge employed by the State Office of
Administrative Hearings or of a court of competent jurisdiction.
(f) The commission shall adopt rules as necessary to
implement this section.
SECTION 2. Section 2001.502, Occupations Code, is amended
to read as follows:
Sec. 2001.502. PRIZE FEE. (a) Except as provided by
Subsection (b), a [A] licensed authorized organization shall:
(1) collect from a person who wins a bingo prize of
more than $5 a fee in the amount of five percent of the amount or
value of the prize; and
(2) remit to the commission a fee in the amount of five
percent of the amount or value of all bingo prizes awarded.
(b) A licensed authorized organization that is notified by
the commission under Section 2001.062 that the state's authority to
collect a prize fee under this section is suspended shall include
any prize fee collected under this section in its net proceeds for
purposes of Section 2001.454 until the date the commission notifies
the organization that the suspension is removed.
SECTION 3. Section 2001.503, Occupations Code, is amended
by amending Subsections (a) and (b) and adding Subsection (d) to
read as follows:
(a) Except as provided by Subsection (c) or (d), a county
that imposed a gross receipts tax on the conduct of bingo as of
January 1, 1993, is entitled to 50 percent of the fee collected
under Section 2001.502 on a prize awarded at a game conducted in the
county.
(b) Except as provided by Subsection (c) or (d), a
municipality that imposed a gross receipts tax on the conduct of
bingo as of January 1, 1993, is entitled to 50 percent of the fee
collected under Section 2001.502 on a prize awarded at a game
conducted in the municipality.
(d) A county or municipality to which this section applies
is not entitled to a local share of a prize fee at any time when the
entitlement to the local share is suspended by the commission under
Section 2001.062.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.