Texas 2023 - 88th Regular

Texas Senate Bill SB643 Compare Versions

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1	1	S.B. No. 643
2	2
3	3
4	4	AN ACT
5	5	relating to the conduct of charitable bingo.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Sections 2001.002(19) and (25-a), Occupations
8	8	Code, are amended to read as follows:
9	9	(19) "Nonprofit organization" means an unincorporated
10	10	association or a corporation that is incorporated or holds a
11	11	certificate of authority under Chapter 22, Business Organizations
12	12	Code [the Texas Non-Profit Corporation Act (Article 1396-1.01 et
13	13	seq., Vernon's Texas Civil Statutes)]. The organization:
14	14	(A) may not distribute any of its income to its
15	15	members, officers, or governing body, other than as reasonable
16	16	compensation for services; and
17	17	(B) must have obtained tax exempt status under
18	18	Section 501(c), Internal Revenue Code of 1986.
19	19	(25-a) "Regular license" means a license to conduct
20	20	bingo [that is] issued by the commission under Subchapter C that is
21	21	not a temporary license [and that expires on the first or second
22	22	anniversary of the date of issuance unless revoked or suspended
23	23	before that date by the commission. The term includes an annual
24	24	license].
25	25	SECTION 2. Section 2001.103, Occupations Code, is amended
26	26	by amending Subsections (e) and (g) and adding Subsection (i) to
27	27	read as follows:
28	28	(e) Notwithstanding any other provision of this subchapter
29	29	[Subsection (c)], the commission shall issue to an authorized
30	30	organization that holds a regular [an annual] license to conduct
31	31	bingo 48 [may receive not more than 24 temporary licenses during the
32	32	12-month period following the issuance or renewal of the license.
33	33	The holder of a license that is effective for two years may receive
34	34	not more than 24] temporary licenses for each 12-month period that
35	35	ends on an anniversary of the date the regular license was issued or
36	36	renewed. Each unused temporary license issued to the license holder
37	37	expires on the anniversary of the date the temporary license was
38	38	issued.
39	39	(g) Before using [An organization that has been issued] a
40	40	temporary license issued under Subsection (e), the license holder
41	41	[(f)] shall notify the commission in the manner the commission
42	42	prescribes of the specific date, [and] time, and location of the
43	43	bingo occasion for which the temporary license will be used [before
44	44	using the license]. The [If the commission receives the
45	45	notification by noon of the day before the day the temporary license
46	46	will be used, the] commission shall provide to the license holder
47	47	verification of the commission's [verify] receipt of the
48	48	notification [notice before the end of the business day on which the
49	49	notice is received. If the commission does not receive the
50	50	notification by noon of the day before the day the temporary license
51	51	will be used, the commission shall verify receipt of the notice
52	52	before noon of the business day that follows the day the commission
53	53	received the notice]. The license holder shall maintain the
54	54	verification in the records of the authorized organization.
55	55	(i) The notice requirements of Sections 2001.305(b) and (c)
56	56	do not apply to a temporary license issued to the holder of a
57	57	regular license.
58	58	SECTION 3. Sections 2001.105(a) and (c), Occupations Code,
59	59	are amended to read as follows:
60	60	(a) The commission shall issue a temporary or regular
61	61	license or renew a regular license to conduct bingo if the
62	62	commission determines that:
63	63	(1) the member or members of the applicant designated
64	64	in the application to conduct bingo are active members of the
65	65	applicant;
66	66	(2) the bingo is to be conducted in accordance with
67	67	this chapter;
68	68	(3) the proceeds of the bingo are to be disposed in
69	69	accordance with this chapter;
70	70	(4) the applicant has made and can demonstrate
71	71	significant progress toward the accomplishment of the purposes of
72	72	the organization during the 24 [12] months preceding the date of
73	73	application for a license or regular license renewal;
74	74	(5) all persons who will conduct, promote, or
75	75	administer the proposed bingo are active members of the applicant
76	76	organization and all other persons who will assist in conducting,
77	77	promoting, or administering the proposed bingo games are persons
78	78	authorized to do so by Section 2001.411; and
79	79	(6) no person under whose name bingo will be conducted
80	80	and no person working at the proposed bingo has been convicted of a
81	81	gambling offense or criminal fraud.
82	82	(c) A regular [Except as provided by Section 2001.104(d), a]
83	83	license to conduct bingo issued under this subchapter expires on
84	84	the second anniversary of the date of issuance unless the
85	85	commission revokes or suspends the license before that date [is
86	86	effective for one year].
87	87	SECTION 4. Sections 2001.305(b) and (c), Occupations Code,
88	88	are amended to read as follows:
89	89	(b) Except as provided by Section 2001.103(i), immediately
90	90	[Immediately] after issuing a license, the commission shall send a
91	91	copy of the license to the appropriate governing body. The
92	92	governing body shall file the copy of the license in a central file
93	93	containing licenses issued under this chapter.
94	94	(c) Except as provided by Section 2001.103(i), not [Not]
95	95	later than the 10th day after the date a license is issued, the
96	96	commission shall give written notice of the issuance of the license
97	97	to:
98	98	(1) the police department of the municipality in which
99	99	bingo will be conducted, if bingo is to be conducted in a
100	100	municipality; or
101	101	(2) the sheriff of the county in which bingo will be
102	102	conducted, if bingo is to be conducted outside a municipality.
103	103	SECTION 5. Section 2001.315(a), Occupations Code, is
104	104	amended to read as follows:
105	105	(a) A person who fails to renew the person's license under
106	106	this chapter before the date the license expires may renew the
107	107	license after the expiration date by:
108	108	(1) filing a license renewal application with the
109	109	commission not later than the 14th day after the date the license
110	110	expires, paying the applicable [annual] license fee, and paying a
111	111	late license renewal fee equal to 10 percent of the [annual] license
112	112	fee; or
113	113	(2) filing a license renewal application with the
114	114	commission not later than the 60th day after the date the license
115	115	expires, paying the applicable [annual] license fee, and paying a
116	116	late license renewal fee equal to 10 percent of the [annual] license
117	117	fee for each 14-day period occurring after the date the license
118	118	expires and before the date the renewal application is filed with
119	119	the commission.
120	120	SECTION 6. Section 2001.401, Occupations Code, is amended
121	121	to read as follows:
122	122	Sec. 2001.401. RESTRICTIONS ON PREMISES PROVIDERS. A
123	123	person may not, for direct or indirect consideration, lease or
124	124	otherwise make a premises available for conducting bingo unless the
125	125	person is:
126	126	(1) a licensed commercial lessor; or
127	127	(2) a person who leases or otherwise makes available
128	128	premises to an organization that:
129	129	(A) has been issued a temporary license; and
130	130	(B) does not hold a regular license.
131	131	SECTION 7. Section 2001.413, Occupations Code, is amended
132	132	to read as follows:
133	133	Sec. 2001.413. PAYMENT [ADMISSION CHARGE] REQUIRED. Except
134	134	as provided by Section 2001.4155, a licensed authorized
135	135	organization may not offer or provide to a person the opportunity to
136	136	play bingo without payment [charge].
137	137	SECTION 8. Section 2001.419(a), Occupations Code, is
138	138	amended to read as follows:
139	139	(a) A licensed authorized organization may not conduct more
140	140	than three bingo occasions during a calendar week under a regular
141	141	[an annual] license.
142	142	SECTION 9. Section 2001.420(b), Occupations Code, is
143	143	amended to read as follows:
144	144	(b) A person may not offer or award on a single bingo
145	145	occasion prizes with an aggregate value of more than $5,000
146	146	[$2,500] for all bingo games other than:
147	147	(1) pull-tab bingo; or
148	148	(2) bingo games that award individual prizes of $50 or
149	149	less.
150	150	SECTION 10. Section 2001.435(b), Occupations Code, is
151	151	amended to read as follows:
152	152	(b) Each member of a unit shall deposit into the unit's
153	153	bingo account all funds derived from the conduct of bingo, less the
154	154	amount awarded as cash prizes [under Sections 2001.420(a) and (b)].
155	155	The deposit shall be made not later than the third [second] business
156	156	day after the day of the bingo occasion on which the receipts were
157	157	obtained.
158	158	SECTION 11. Section 2001.438, Occupations Code, is amended
159	159	by amending Subsection (f) and adding Subsection (f-1) to read as
160	160	follows:
161	161	(f) Each licensed authorized organization that is a member
162	162	of the unit shall be jointly and severally liable for:
163	163	(1) compliance with the requirements of this
164	164	subchapter and the rules of the commission relating to the filing of
165	165	required reports;
166	166	(2) the maintenance of bingo inventory and financial
167	167	records; and
168	168	(3) except as provided by Subsection (f-1), the
169	169	payment of any penalties imposed for a violation of this subchapter
170	170	or commission rules related to the operations of the unit.
171	171	(f-1) If a unit demonstrates that a violation of this
172	172	subchapter or commission rules is wholly attributable to a specific
173	173	licensed authorized organization member or members of the unit:
174	174	(1) a penalty for the violation may not be imposed on a
175	175	unit member to which the violation is not attributable; and
176	176	(2) the penalty imposed on a unit member to which the
177	177	violation is attributable may not be in an amount greater than the
178	178	amount initially assessed against each unit member.
179	179	SECTION 12. Sections 2001.451(b), (g), and (i), Occupations
180	180	Code, are amended to read as follows:
181	181	(b) Except as provided by Section 2001.502(a), a licensed
182	182	authorized organization shall deposit in the bingo account all
183	183	funds derived from the conduct of bingo, less the amount awarded as
184	184	cash prizes [under Sections 2001.420(a) and (b)]. Except as
185	185	provided by Subsection (b-1), a deposit must be made not later than
186	186	the third business day after the day of the bingo occasion on which
187	187	the receipts were obtained.
188	188	(g) The bingo operations of a licensed authorized
189	189	organization must[:
190	190	[(1) result in net proceeds over the organization's
191	191	license period; or
192	192	[(2) if the organization has a two-year license,]
193	193	result in net proceeds over each 24-month [12-month] period that
194	194	ends on the second [an] anniversary of the date the [two-year]
195	195	license was issued.
196	196	(i) Prize fees [held in escrow for remittance to the
197	197	commission] are not included in the calculation of operating
198	198	capital under Subsection (h) if the prize fees are:
199	199	(1) held in escrow for remittance to:
200	200	(A) the commission; or
201	201	(B) a county or municipality; or
202	202	(2) retained by a licensed authorized organization.
203	203	SECTION 13. Sections 2001.502(b) and (c), Occupations Code,
204	204	are amended to read as follows:
205	205	(b) Notwithstanding Subsection (a)(2), each quarter, a
206	206	licensed authorized organization or unit that collects a prize fee
207	207	under Subsection (a) for a bingo game conducted in a county or
208	208	municipality that was entitled to receive a portion of a bingo prize
209	209	fee as of January 1, 2019, shall remit 50 percent of the amount
210	210	collected as the prize fee to the commission and shall remit or
211	211	deposit the remainder of the amount collected as the prize fee as
212	212	follows:
213	213	(1) if the county [or municipality] in which the bingo
214	214	game is conducted voted before November 1, 2019, to impose the prize
215	215	fee and[, remit 50 percent of the amount collected as the prize fee
216	216	to:
217	217	[(A) the county that voted to impose the fee by
218	218	that date, provided] the location at which the bingo game is
219	219	conducted:
220	220	(A) is not within the boundaries of a
221	221	municipality, remit 50 percent of the amount collected as the prize
222	222	fee to the county [that voted to impose the prize fee by that date];
223	223	or
224	224	(B) is within the boundaries of a [the]
225	225	municipality that:
226	226	(i) voted before November 1, 2019, to
227	227	impose the prize fee, remit 50 percent of the amount collected as
228	228	the prize fee in equal shares to the county and municipality [by
229	229	that date, provided the county in which the bingo game is conducted
230	230	did not vote to impose the fee by that date]; or
231	231	(ii) did not vote before November 1, 2019,
232	232	to impose the prize fee, remit 25 percent of the amount collected as
233	233	the prize fee to the county and deposit the remaining amount in the
234	234	manner described by Subdivision (3);
235	235	[(C) in equal shares, the county and the
236	236	municipality, provided each voted to impose the fee before that
237	237	date; or]
238	238	(2) if the county in which the bingo game is conducted
239	239	did not vote before November 1, 2019, to impose the prize fee and
240	240	the location at which the bingo game is conducted is within the
241	241	boundaries of a municipality that voted before November 1, 2019, to
242	242	impose the prize fee:
243	243	(A) remit 25 percent of the amount collected as
244	244	the prize fee to the municipality; and
245	245	(B) deposit the remaining amount in the manner
246	246	described by Subdivision (3); and
247	247	(3) if neither the county or municipality in which the
248	248	bingo game is conducted voted before November 1, 2019, to impose the
249	249	prize fee, deposit the remainder of the amount collected as the
250	250	prize fee in the general charitable fund of the organization or on a
251	251	pro rata basis to the general funds of the organizations comprising
252	252	the unit, as applicable, to be used for the charitable purposes of
253	253	the organization or organizations.
254	254	(c) The governing body of a county or municipality that
255	255	voted to impose a prize fee under Subsection (b) [(b)(1)] may at any
256	256	time vote to discontinue the imposition of the fee. If a county or
257	257	municipality votes on or after November 1, 2019, to discontinue the
258	258	fee, the fees to which the county or municipality, as applicable,
259	259	was entitled before the vote shall be collected by the licensed
260	260	authorized organization or unit as defined by Section 2001.431 and
261	261	deposited as provided by Subsection (b)(3) [(b)(2)].
262	262	SECTION 14. Section 2001.513(a), Occupations Code, is
263	263	amended to read as follows:
264	264	(a) At any time within three years after a person is
265	265	delinquent in the payment of an amount of the fee on prizes due to
266	266	the commission, the commission may collect the amount under this
267	267	section.
268	268	SECTION 15. Section 2001.514(a), Occupations Code, is
269	269	amended to read as follows:
270	270	(a) To secure payment due to the commission of the fee on
271	271	prizes imposed under this subchapter, each license holder shall
272	272	furnish to the commission:
273	273	(1) a cash bond;
274	274	(2) a bond from a surety company chartered or
275	275	authorized to do business in this state;
276	276	(3) certificates of deposit;
277	277	(4) certificates of savings;
278	278	(5) United States treasury bonds;
279	279	(6) subject to the approval of the commission, an
280	280	assignment of negotiable stocks or bonds; or
281	281	(7) other security as the commission considers
282	282	sufficient.
283	283	SECTION 16. Section 2001.515, Occupations Code, is amended
284	284	to read as follows:
285	285	Sec. 2001.515. COMMISSION'S DUTIES. The commission shall
286	286	perform all functions incident to the administration, collection,
287	287	enforcement, and operation of the fee on prizes imposed under this
288	288	subchapter for amounts due to the commission, including any
289	289	necessary reconciliation of a prize fee held by the commission that
290	290	is due to a county or municipality.
291	291	SECTION 17. The following provisions of the Occupations
292	292	Code are repealed:
293	293	(1) Section 2001.103(f);
294	294	(2) Section 2001.420(a); and
295	295	(3) Section 2001.459(b).
296	296	SECTION 18. Not later than January 1, 2024, the Texas
297	297	Lottery Commission shall adopt the rules necessary to implement the
298	298	changes in law made by this Act to Chapter 2001, Occupations Code.
299	299	SECTION 19. (a) Section 2001.103(g), Occupations Code, as
300	300	amended by this Act, applies to a notification of the Texas Lottery
301	301	Commission by a license holder on or after the effective date of
302	302	this Act. A notification before the effective date of this Act is
303	303	governed by the law in effect on the date of the notification, and
304	304	the former law is continued in effect for that purpose.
305	305	(b) Section 2001.438, Occupations Code, as amended by this
306	306	Act, applies only to a penalty imposed on or after the effective
307	307	date of this Act. A penalty imposed before the effective date of
308	308	this Act is governed by the law in effect on the date the penalty was
309	309	imposed, and the former law is continued in effect for that purpose.
310	310	SECTION 20. This Act takes effect September 1, 2023.
311	311	______________________________ ______________________________
312	312	President of the Senate Speaker of the House
313	313	I hereby certify that S.B. No. 643 passed the Senate on
314	314	March 16, 2023, by the following vote: Yeas 29, Nays 1; and that
315	315	the Senate concurred in House amendments on May 25, 2023, by the
316	316	following vote: Yeas 29, Nays 2.
317	317	______________________________
318	318	Secretary of the Senate
319	319	I hereby certify that S.B. No. 643 passed the House, with
320	320	amendments, on May 23, 2023, by the following vote: Yeas 96,
321	321	Nays 41, two present not voting.
322	322	______________________________
323	323	Chief Clerk of the House
324	324	Approved:
325	325	______________________________
326	326	Date
327	327	______________________________
328	328	Governor