Texas 2021 - 87th Regular

Texas House Bill HB2204 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Thompson of Harris (Senate Sponsor - Zaffirini) H.B. No. 2204
2		-	(In the Senate - Received from the House May 13, 2021;
3		-	May 14, 2021, read first time and referred to Committee on State
4		-	Affairs; May 20, 2021, reported adversely, with favorable
5		-	Committee Substitute by the following vote: Yeas 9, Nays 0;
6		-	May 20, 2021, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR H.B. No. 2204 By: Zaffirini
	1	+	By: Thompson of Harris H.B. No. 2204
9	2
10	3
11	4		A BILL TO BE ENTITLED
12	5		AN ACT
13	6		relating to the conduct of charitable bingo.
14	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	8		SECTION 1. Section 2001.002(19), Occupations Code, is
16	9		amended to read as follows:
17	10		(19) "Nonprofit organization" means an unincorporated
18	11		association or a corporation that is incorporated or holds a
19	12		certificate of authority under Chapter 22, Business Organizations
20	13		Code [the Texas Non-Profit Corporation Act (Article 1396-1.01 et
21	14		seq., Vernon's Texas Civil Statutes)]. The organization:
22	15		(A) may not distribute any of its income to its
23	16		members, officers, or governing body, other than as reasonable
24	17		compensation for services; and
25	18		(B) must have obtained tax exempt status under
26	19		Section 501(c), Internal Revenue Code of 1986.
27	20		SECTION 2. Section 2001.103, Occupations Code, is amended
28	21		by amending Subsection (e) and adding Subsections (f-1) and (i) to
29	22		read as follows:
30	23		(e) Notwithstanding Subsection (c), an authorized
31	24		organization that holds an annual license to conduct bingo may
32	25		receive not more than 48 [24] temporary licenses during the
33	26		12-month period following the issuance or renewal of the license.
34	27		The holder of a license that is effective for two years may receive
35	28		not more than 48 [24] temporary licenses for each 12-month period
36	29		that ends on an anniversary of the date the license was issued or
37	30		renewed.
38	31		(f-1) The commission shall provide for the on-demand
39	32		electronic issuance of a temporary license requested under this
40	33		section by the holder of a regular license.
41	34		(i) The notice requirements of Sections 2001.305(b) and (c)
42	35		do not apply to a temporary license issued to the holder of a
43	36		regular license.
44	37		SECTION 3. Sections 2001.305(b) and (c), Occupations Code,
45	38		are amended to read as follows:
46	39		(b) Except as provided by Section 2001.103(i), immediately
47	40		[Immediately] after issuing a license, the commission shall send a
48	41		copy of the license to the appropriate governing body. The
49	42		governing body shall file the copy of the license in a central file
50	43		containing licenses issued under this chapter.
51	44		(c) Except as provided by Section 2001.103(i), not [Not]
52	45		later than the 10th day after the date a license is issued, the
53	46		commission shall give written notice of the issuance of the license
54	47		to:
55	48		(1) the police department of the municipality in which
56	49		bingo will be conducted, if bingo is to be conducted in a
57	50		municipality; or
58	51		(2) the sheriff of the county in which bingo will be
59	52		conducted, if bingo is to be conducted outside a municipality.
60	53		SECTION 4. Section 2001.413, Occupations Code, is amended
61	54		to read as follows:
62	55		Sec. 2001.413. PAYMENT [ADMISSION CHARGE] REQUIRED. Except
63	56		as provided by Section 2001.4155, a licensed authorized
64	57		organization may not offer or provide to a person the opportunity to
65	58		play bingo without payment [charge].
66		-	SECTION 5. Section 2001.420(b), Occupations Code, is
	59	+	SECTION 5. Section 2001.416, Occupations Code, is amended
	60	+	by amending Subsection (a) and adding Subsection (e) to read as
	61	+	follows:
	62	+	(a) Except as provided by Subsections (d) and (e), a [A]
	63	+	game of chance other than bingo or a raffle conducted under Chapter
	64	+	2002 may not be conducted or allowed during a bingo occasion.
	65	+	(e) This section does not prohibit:
	66	+	(1) the lawful conduct during a bingo occasion of a
	67	+	game of chance other than bingo or a raffle conducted under Chapter
	68	+	2002, if the exhibition and play of that game is authorized under
	69	+	state law and the conduct of the game during a bingo occasion or at a
	70	+	premises where bingo occasions are conducted does not violate that
	71	+	state law; or
	72	+	(2) a person participating in a bingo game from
	73	+	simultaneously lawfully participating through the person's mobile
	74	+	device in a game of chance authorized under state law.
	75	+	SECTION 6. Section 2001.420(b), Occupations Code, is
67	76		amended to read as follows:
68	77		(b) A person may not offer or award on a single bingo
69	78		occasion prizes with an aggregate value of more than $3,500
70	79		[$2,500] for all bingo games other than:
71	80		(1) pull-tab bingo; or
72	81		(2) bingo games that award individual prizes of $50 or
73	82		less.
74		-	SECTION 6. Section 2001.435(b), Occupations Code, is
	83	+	SECTION 7. Section 2001.435(b), Occupations Code, is
75	84		amended to read as follows:
76	85		(b) Each member of a unit shall deposit into the unit's
77	86		bingo account all funds derived from the conduct of bingo, less the
78	87		amount awarded as cash prizes under Section 2001.420(b) [Sections
79	88		2001.420(a) and (b)]. The deposit shall be made not later than the
80	89		third [second] business day after the day of the bingo occasion on
81	90		which the receipts were obtained.
82		-	SECTION 7. Sections 2001.451(b), (g), and (i), Occupations
	91	+	SECTION 8. Sections 2001.451(b), (g), and (i), Occupations
83	92		Code, are amended to read as follows:
84	93		(b) Except as provided by Section 2001.502(a), a licensed
85	94		authorized organization shall deposit in the bingo account all
86	95		funds derived from the conduct of bingo, less the amount awarded as
87	96		cash prizes under Section 2001.420(b) [Sections 2001.420(a) and
88	97		(b)]. Except as provided by Subsection (b-1), a deposit must be
89	98		made not later than the third business day after the day of the
90	99		bingo occasion on which the receipts were obtained.
91	100		(g) The bingo operations of a licensed authorized
92	101		organization must[:
93	102		[(1) result in net proceeds over the organization's
94	103		license period; or
95	104		[(2) if the organization has a two-year license,]
96	105		result in net proceeds over each 24-month [12-month] period that
97	106		ends on the second [an] anniversary of the date the [two-year]
98	107		license was issued.
99	108		(i) Prize fees [held in escrow for remittance to the
100	109		commission] are not included in the calculation of operating
101	110		capital under Subsection (h) if the prize fees are:
102	111		(1) held in escrow for remittance to:
103	112		(A) the commission; or
104	113		(B) a local government; or
105	114		(2) retained by a licensed authorized organization.
106		-	SECTION 8. Sections 2001.502(b) and (c), Occupations Code,
	115	+	SECTION 9. Sections 2001.502(b) and (c), Occupations Code,
107	116		are amended to read as follows:
108	117		(b) Notwithstanding Subsection (a)(2), each quarter, a
109	118		licensed authorized organization or unit that collects a prize fee
110	119		under Subsection (a) for a bingo game conducted in a county or
111	120		municipality that was entitled to receive a portion of a bingo prize
112	121		fee as of January 1, 2019, shall remit 50 percent of the amount
113	122		collected as the prize fee to the commission and shall remit or
114	123		deposit the remainder of the amount collected as the prize fee as
115	124		follows:
116	125		(1) if the county [or municipality] in which the bingo
117	126		game is conducted voted before November 1, 2019, to impose the prize
118	127		fee and[, remit 50 percent of the amount collected as the prize fee
119	128		to:
120	129		[(A) the county that voted to impose the fee by
121	130		that date, provided] the location at which the bingo game is
122	131		conducted:
123	132		(A) is not within the boundaries of a
124	133		municipality, remit 50 percent of the amount collected as the prize
125	134		fee to the county [that voted to impose the prize fee by that date];
126	135		or
127	136		(B) is within the boundaries of a [the]
128	137		municipality that:
129	138		(i) voted before November 1, 2019, to
130	139		impose the prize fee, remit 50 percent of the amount collected as
131	140		the prize fee in equal shares to the county and municipality [by
132	141		that date, provided the county in which the bingo game is conducted
133	142		did not vote to impose the fee by that date]; or
134	143		(ii) did not vote before November 1, 2019,
135	144		to impose the prize fee, remit 25 percent of the amount collected as
136	145		the prize fee to the county and deposit the remaining amount in the
137	146		manner described by Subdivision (3);
138	147		[(C) in equal shares, the county and the
139	148		municipality, provided each voted to impose the fee before that
140	149		date; or]
141	150		(2) if the county in which the bingo game is conducted
142	151		did not vote before November 1, 2019, to impose the prize fee and
143	152		the location at which the bingo game is conducted is within the
144	153		boundaries of a municipality that voted before November 1, 2019, to
145	154		impose the prize fee:
146	155		(A) remit 25 percent of the amount collected as
147	156		the prize fee to the municipality; and
148	157		(B) deposit the remaining amount in the manner
149	158		described by Subdivision (3); and
150	159		(3) if neither the county or municipality in which the
151	160		bingo game is conducted voted before November 1, 2019, to impose the
152	161		prize fee, deposit the remainder of the amount collected as the
153	162		prize fee in the general charitable fund of the organization or on a
154	163		pro rata basis to the general funds of the organizations comprising
155	164		the unit, as applicable, to be used for the charitable purposes of
156	165		the organization or organizations.
157	166		(c) The governing body of a county or municipality that
158	167		voted to impose a prize fee under Subsection (b) [(b)(1)] may at any
159	168		time vote to discontinue the imposition of the fee. If a county or
160	169		municipality votes on or after November 1, 2019, to discontinue the
161	170		fee, the fees to which the county or municipality, as applicable,
162	171		was entitled before the vote shall be collected by the licensed
163	172		authorized organization or unit as defined by Section 2001.431 and
164	173		deposited as provided by Subsection (b)(3) [(b)(2)].
165		-	SECTION 9. Section 2001.513(a), Occupations Code, is
	174	+	SECTION 10. Section 2001.513(a), Occupations Code, is
166	175		amended to read as follows:
167	176		(a) At any time within three years after a person is
168	177		delinquent in the payment of an amount of the fee on prizes due to
169	178		the commission, the commission may collect the amount under this
170	179		section.
171		-	SECTION 10. Section 2001.514(a), Occupations Code, is
	180	+	SECTION 11. Section 2001.514(a), Occupations Code, is
172	181		amended to read as follows:
173		-	(a) To secure payment ~~due to the commission~~ of the fee on
174		-	~~prizes~~ imposed under this subchapter, each license holder shall
	182	+	(a) To secure payment of the fee on prizes due to the
	183	+	commission imposed under this subchapter, each license holder shall
175	184		furnish to the commission:
176	185		(1) a cash bond;
177	186		(2) a bond from a surety company chartered or
178	187		authorized to do business in this state;
179	188		(3) certificates of deposit;
180	189		(4) certificates of savings;
181	190		(5) United States treasury bonds;
182	191		(6) subject to the approval of the commission, an
183	192		assignment of negotiable stocks or bonds; or
184	193		(7) other security as the commission considers
185	194		sufficient.
186		-	SECTION 11. Section 2001.515, Occupations Code, is amended
	195	+	SECTION 12. Section 2001.515, Occupations Code, is amended
187	196		to read as follows:
188	197		Sec. 2001.515. COMMISSION'S DUTIES. The commission shall
189	198		perform all functions incident to the administration, collection,
190		-	enforcement, and operation of the fee on prizes ~~imposed under this~~
191		-	subchapter ~~that is due to the commission~~, including any necessary
	199	+	enforcement, and operation of the fee on prizes due to the
	200	+	commission imposed under this subchapter, including any necessary
192	201		reconciliation of a prize fee held by the commission that is due to
193	202		a municipality or county.
194		-	SECTION 12. Sections 2001.420(a) and 2001.459(b),
	203	+	SECTION 13. Sections 2001.420(a) and 2001.459(b),
195	204		Occupations Code, are repealed.
196		-	SECTION 13. Notwithstanding any other law, if an executive
	205	+	SECTION 14. Notwithstanding any other law, if an executive
197	206		order issued by the governor before the effective date of this Act
198	207		had the effect of prohibiting the conduct of bingo occasions under
199	208		Chapter 2001, Occupations Code, the payment by a licensed
200	209		authorized organization to a licensed commercial lessor of rent
201	210		charges that were incurred and paid during the period in which the
202	211		conduct of bingo was prohibited are not subject to:
203	212		(1) the limits on rent charged provided by Section
204	213		2001.406(a), Occupations Code; or
205	214		(2) the requirement that an item of expense for the
206	215		conduct of bingo be reasonable or necessary provided by Section
207	216		2001.458(a), Occupations Code.
208		-	SECTION 14. Not later than January 1, 2022, the Texas
	217	+	SECTION 15. Not later than January 1, 2022, the Texas
209	218		Lottery Commission shall adopt the rules necessary to implement the
210	219		changes in law made by this Act to Chapter 2001, Occupations Code.
211		-	SECTION 15. This Act takes effect September 1, 2021.
212		-	* * * * *
	220	+	SECTION 16. This Act takes effect September 1, 2021.