85R24938 E
By: Lucio III H.B. No. 3611
Substitute the following for H.B. No. 3611:
By: Kuempel C.S.H.B. No. 3611
A BILL TO BE ENTITLED
AN ACT
relating to the termination of the entitlement of the state, a
county, and certain municipalities to a share of a bingo prize fee
collected 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) At the request of any person or on its own
motion, the commission may determine that:
(1) a place of business located anywhere in a county in
which a licensed authorized organization conducts bingo offers
patrons of the business the opportunity to engage in gambling in
violation of a provision of Chapter 47, Penal Code; and
(2) the conduct described by Subdivision (1) is
detrimental to the conduct of charitable bingo by one or more
licensed authorized organizations.
(b) If the commission makes the determination authorized
under Subsection (a), the commission shall notify the comptroller,
the county, each licensed authorized organization and unit 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, will be
terminated for all charitable bingo conducted in that county on the
30th day after the date of the notice.
(c) A political subdivision that receives notification by
the commission under Subsection (b) may provide evidence that the
commission's determination under Subsection (a) was made in error
because the activity described by Subsection (a)(1) is not
occurring in that county or is not occurring to the detriment of
charitable bingo as provided by Subsection (a)(2). The commission
must receive the evidence from the political subdivision no later
than the 30th day after the date the political subdivision receives
the notice from the commission under Subsection (b). If, based on
evidence provided by a political subdivision, the commission agrees
that the determination was made in error, the commission shall not
terminate the prize fee and shall notify the comptroller, the
county, each licensed authorized organization and unit 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
commission's decision not to terminate the collection of the prize
fee.
(d) The commission shall determine whether to accept or
reject the evidence presented by a political subdivision under
Subsection (c) not later than the 30th day after the date of receipt
by the commission of the evidence. If, after considering the
evidence submitted by a political subdivision under Subsection (c),
the commission determines to terminate the collection of the prize
fee, the commission shall notify each political subdivision that
submitted evidence, and any political subdivision that receives
such notice may request an administrative hearing on the matter
before the State Office of Administrative Hearings. A request for
an administrative hearing under this subsection must be received by
the commission no later than the 30th day after the date a political
subdivision receives notification under this subsection.
(e) A determination by the commission under Subsection (a)
becomes final on the 30th day after the commission's determination
under that subsection unless the determination is contested as
provided by Subsections (c) and (d). On a final decision under
Subsection (d) by the administrative law judge upholding the
commission's determination to terminate the collection of the prize
fee under this section, the commission shall notify the
comptroller, the county, each licensed authorized organization and
unit 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, will be terminated for all charitable bingo conducted in
that county on the 30th day after the date of the notice or on
another date set by the commission.
(f) The commission shall adopt rules as necessary to
implement this section. A rule adopted under this subsection may
delegate to the director of the charitable bingo operations
division the determination authorized by Subsection (a).
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 or unit that is
notified by the commission under Section 2001.062 that the state's
authority to collect a prize fee under this section is terminated as
provided by that section shall continue to collect the prize fee.
Each prize fee collected under this subsection shall be deposited
into the general fund of the licensed authorized organization or
unit to be used for the charitable purposes of the organization.
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 after the
entitlement to the local share has been terminated 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.