Texas 2023 - 88th Regular

Texas House Bill HB431 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R2702 BEE-F
2	2	By: Thompson of Harris H.B. No. 431
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the conduct of charitable bingo.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 2001.002(19), Occupations Code, is
10	10	amended to read as follows:
11	11	(19) "Nonprofit organization" means an unincorporated
12	12	association or a corporation that is incorporated or holds a
13	13	certificate of authority under Chapter 22, Business Organizations
14	14	Code [the Texas Non-Profit Corporation Act (Article 1396-1.01 et
15	15	seq., Vernon's Texas Civil Statutes)]. The organization:
16	16	(A) may not distribute any of its income to its
17	17	members, officers, or governing body, other than as reasonable
18	18	compensation for services; and
19	19	(B) must have obtained tax exempt status under
20	20	Section 501(c), Internal Revenue Code of 1986.
21	21	SECTION 2. Section 2001.103, Occupations Code, is amended
22	22	by amending Subsection (e) and adding Subsections (f-1) and (i) to
23	23	read as follows:
24	24	(e) Notwithstanding Subsection (c), an authorized
25	25	organization that holds a regular [an annual] license to conduct
26	26	bingo that is effective for one year may receive not more than 48
27	27	[24] temporary licenses during the 12-month period following the
28	28	issuance or renewal of the license. The holder of a regular license
29	29	that is effective for two years may receive not more than 48 [24]
30	30	temporary licenses for each 12-month period that ends on an
31	31	anniversary of the date the license was issued or renewed.
32	32	(f-1) The commission shall provide for the on-demand
33	33	electronic issuance of a temporary license requested under this
34	34	section by the holder of a regular license.
35	35	(i) The notice requirements of Sections 2001.305(b) and (c)
36	36	do not apply to a temporary license issued to the holder of a
37	37	regular license.
38	38	SECTION 3. Sections 2001.305(b) and (c), Occupations Code,
39	39	are amended to read as follows:
40	40	(b) Except as provided by Section 2001.103(i), immediately
41	41	[Immediately] after issuing a license, the commission shall send a
42	42	copy of the license to the appropriate governing body. The
43	43	governing body shall file the copy of the license in a central file
44	44	containing licenses issued under this chapter.
45	45	(c) Except as provided by Section 2001.103(i), not [Not]
46	46	later than the 10th day after the date a license is issued, the
47	47	commission shall give written notice of the issuance of the license
48	48	to:
49	49	(1) the police department of the municipality in which
50	50	bingo will be conducted, if bingo is to be conducted in a
51	51	municipality; or
52	52	(2) the sheriff of the county in which bingo will be
53	53	conducted, if bingo is to be conducted outside a municipality.
54	54	SECTION 4. Section 2001.413, Occupations Code, is amended
55	55	to read as follows:
56	56	Sec. 2001.413. PAYMENT [ADMISSION CHARGE] REQUIRED. Except
57	57	as provided by Section 2001.4155, a licensed authorized
58	58	organization may not offer or provide to a person the opportunity to
59	59	play bingo without payment [charge].
60	60	SECTION 5. Section 2001.420(b), Occupations Code, is
61	61	amended to read as follows:
62	62	(b) A person may not offer or award on a single bingo
63	63	occasion prizes with an aggregate value of more than $5,000
64	64	[$2,500] for all bingo games other than:
65	65	(1) pull-tab bingo; or
66	66	(2) bingo games that award individual prizes of $50 or
67	67	less.
68	68	SECTION 6. Section 2001.435(b), Occupations Code, is
69	69	amended to read as follows:
70	70	(b) Each member of a unit shall deposit into the unit's
71	71	bingo account all funds derived from the conduct of bingo, less the
72	72	amount awarded as cash prizes [under Sections 2001.420(a) and (b)].
73	73	The deposit shall be made not later than the third [second] business
74	74	day after the day of the bingo occasion on which the receipts were
75	75	obtained.
76	76	SECTION 7. Sections 2001.451(b), (g), and (i), Occupations
77	77	Code, are amended to read as follows:
78	78	(b) Except as provided by Section 2001.502(a), a licensed
79	79	authorized organization shall deposit in the bingo account all
80	80	funds derived from the conduct of bingo, less the amount awarded as
81	81	cash prizes [under Sections 2001.420(a) and (b)]. Except as
82	82	provided by Subsection (b-1), a deposit must be made not later than
83	83	the third business day after the day of the bingo occasion on which
84	84	the receipts were obtained.
85	85	(g) The bingo operations of a licensed authorized
86	86	organization must[:
87	87	[(1) result in net proceeds over the organization's
88	88	license period; or
89	89	[(2) if the organization has a two-year license,]
90	90	result in net proceeds over each 24-month [12-month] period that
91	91	ends on the second [an] anniversary of the date the [two-year]
92	92	license was issued.
93	93	(i) Prize fees [held in escrow for remittance to the
94	94	commission] are not included in the calculation of operating
95	95	capital under Subsection (h) if the prize fees are:
96	96	(1) held in escrow for remittance to:
97	97	(A) the commission; or
98	98	(B) a county or municipality; or
99	99	(2) retained by a licensed authorized organization.
100	100	SECTION 8. Sections 2001.502(b) and (c), Occupations Code,
101	101	are amended to read as follows:
102	102	(b) Notwithstanding Subsection (a)(2), each quarter, a
103	103	licensed authorized organization or unit that collects a prize fee
104	104	under Subsection (a) for a bingo game conducted in a county or
105	105	municipality that was entitled to receive a portion of a bingo prize
106	106	fee as of January 1, 2019, shall remit 50 percent of the amount
107	107	collected as the prize fee to the commission and shall remit or
108	108	deposit the remainder of the amount collected as the prize fee as
109	109	follows:
110	110	(1) if the county [or municipality] in which the bingo
111	111	game is conducted voted before November 1, 2019, to impose the prize
112	112	fee and[, remit 50 percent of the amount collected as the prize fee
113	113	to:
114	114	[(A) the county that voted to impose the fee by
115	115	that date, provided] the location at which the bingo game is
116	116	conducted:
117	117	(A) is not within the boundaries of a
118	118	municipality, remit 50 percent of the amount collected as the prize
119	119	fee to the county [that voted to impose the prize fee by that date];
120	120	or
121	121	(B) is within the boundaries of a [the]
122	122	municipality that:
123	123	(i) voted before November 1, 2019, to
124	124	impose the prize fee, remit 50 percent of the amount collected as
125	125	the prize fee in equal shares to the county and municipality [by
126	126	that date, provided the county in which the bingo game is conducted
127	127	did not vote to impose the fee by that date]; or
128	128	(ii) did not vote before November 1, 2019,
129	129	to impose the prize fee, remit 25 percent of the amount collected as
130	130	the prize fee to the county and deposit the remaining amount in the
131	131	manner described by Subdivision (3);
132	132	[(C) in equal shares, the county and the
133	133	municipality, provided each voted to impose the fee before that
134	134	date; or]
135	135	(2) if the county in which the bingo game is conducted
136	136	did not vote before November 1, 2019, to impose the prize fee and
137	137	the location at which the bingo game is conducted is within the
138	138	boundaries of a municipality that voted before November 1, 2019, to
139	139	impose the prize fee:
140	140	(A) remit 25 percent of the amount collected as
141	141	the prize fee to the municipality; and
142	142	(B) deposit the remaining amount in the manner
143	143	described by Subdivision (3); and
144	144	(3) if neither the county or municipality in which the
145	145	bingo game is conducted voted before November 1, 2019, to impose the
146	146	prize fee, deposit the remainder of the amount collected as the
147	147	prize fee in the general charitable fund of the organization or on a
148	148	pro rata basis to the general funds of the organizations comprising
149	149	the unit, as applicable, to be used for the charitable purposes of
150	150	the organization or organizations.
151	151	(c) The governing body of a county or municipality that
152	152	voted to impose a prize fee under Subsection (b) [(b)(1)] may at any
153	153	time vote to discontinue the imposition of the fee. If a county or
154	154	municipality votes on or after November 1, 2019, to discontinue the
155	155	fee, the fees to which the county or municipality, as applicable,
156	156	was entitled before the vote shall be collected by the licensed
157	157	authorized organization or unit as defined by Section 2001.431 and
158	158	deposited as provided by Subsection (b)(3) [(b)(2)].
159	159	SECTION 9. Section 2001.513(a), Occupations Code, is
160	160	amended to read as follows:
161	161	(a) At any time within three years after a person is
162	162	delinquent in the payment of an amount of the fee on prizes due to
163	163	the commission, the commission may collect the amount under this
164	164	section.
165	165	SECTION 10. Section 2001.514(a), Occupations Code, is
166	166	amended to read as follows:
167	167	(a) To secure payment due to the commission of the fee on
168	168	prizes imposed under this subchapter, each license holder shall
169	169	furnish to the commission:
170	170	(1) a cash bond;
171	171	(2) a bond from a surety company chartered or
172	172	authorized to do business in this state;
173	173	(3) certificates of deposit;
174	174	(4) certificates of savings;
175	175	(5) United States treasury bonds;
176	176	(6) subject to the approval of the commission, an
177	177	assignment of negotiable stocks or bonds; or
178	178	(7) other security as the commission considers
179	179	sufficient.
180	180	SECTION 11. Section 2001.515, Occupations Code, is amended
181	181	to read as follows:
182	182	Sec. 2001.515. COMMISSION'S DUTIES. The commission shall
183	183	perform all functions incident to the administration, collection,
184	184	enforcement, and operation of the fee on prizes imposed under this
185	185	subchapter for amounts due to the commission, including any
186	186	necessary reconciliation of a prize fee held by the commission that
187	187	is due to a county or municipality.
188	188	SECTION 12. Sections 2001.420(a) and 2001.459(b),
189	189	Occupations Code, are repealed.
190	190	SECTION 13. Notwithstanding any other law, if an executive
191	191	order issued by the governor before the effective date of this Act
192	192	had the effect of prohibiting the conduct of bingo occasions under
193	193	Chapter 2001, Occupations Code, the payment by a licensed
194	194	authorized organization to a licensed commercial lessor of rent
195	195	charges that were incurred and paid during the period in which the
196	196	conduct of bingo was prohibited are not subject to:
197	197	(1) the limits on rent charged provided by Section
198	198	2001.406(a), Occupations Code; or
199	199	(2) the requirement that an item of expense for the
200	200	conduct of bingo be reasonable or necessary provided by Section
201	201	2001.458(a), Occupations Code.
202	202	SECTION 14. Not later than January 1, 2024, the Texas
203	203	Lottery Commission shall adopt the rules necessary to implement the
204	204	changes in law made by this Act to Chapter 2001, Occupations Code.
205	205	SECTION 15. This Act takes effect September 1, 2023.