Texas 2025 - 89th Regular

Texas House Bill HB4172 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~89R23361~~ PRL-F
	1	+	89R6128 PRL-F
2	2		By: Thompson H.B. No. 4172
3		-	Substitute the following for H.B. No. 4172:
4		-	By: Phelan C.S.H.B. No. 4172
5	3
6	4
7	5
8	6
9	7		A BILL TO BE ENTITLED
10	8		AN ACT
11	9		relating to regulating charitable bingo and authorizing the
12	10		establishment of a nonprofit corporation to advertise and promote
13	11		charitable bingo.
14	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	13		SECTION 1. Section 2001.407, Occupations Code, is amended
16	14		by amending Subsection (c) and adding Subsections (c-1), (c-2), and
17	15		(c-3) to read as follows:
18	16		(c) Except as provided by Subsection (c-1), a [A] licensed
19	17		distributor may not receive by purchase or otherwise bingo
20	18		equipment or supplies from a person other than a licensed
21	19		manufacturer or another licensed distributor.
22	20		(c-1) A licensed distributor may receive bingo equipment or
23	21		supplies from a licensed authorized organization if:
24	22		(1) the distributor delivered the equipment or
25	23		supplies to the organization; and
26	24		(2) the equipment or supplies were:
27	25		(A) defective;
28	26		(B) not ordered by the organization; or
29	27		(C) delivered in a quantity that exceeds the
30	28		quantity the organization ordered.
31	29		(c-2) A licensed authorized organization that returns bingo
32	30		equipment or supplies to the licensed distributor as provided by
33	31		Subsection (c-1) shall:
34	32		(1) maintain a record specifying for each returned
35	33		equipment or supply:
36	34		(A) a reason for the return from the reasons
37	35		listed in Subsection (c-1)(2); and
38	36		(B) the quantity returned; and
39	37		(2) provide a copy of the record to the distributor.
40	38		(c-3) A licensed distributor that receives returned
41	39		equipment or supplies from a licensed authorized organization as
42	40		provided by Subsection (c-1) shall:
43	41		(1) maintain a record showing receipt of the returned
44	42		equipment or supplies; and
45	43		(2) provide a copy of the record to the organization.
46	44		SECTION 2. Section 2001.415, Occupations Code, is amended
47	45		to read as follows:
48	46		Sec. 2001.415. ADVERTISEMENTS. (a) A person other than a
49	47		licensed authorized organization, licensed commercial lessor,
50	48		nonprofit corporation formed under Section 2001.4151, or the
51	49		commission may not advertise bingo.
52	50		(b) A licensed authorized organization, licensed commercial
53	51		lessor, nonprofit corporation formed under Section 2001.4151, or
54	52		the commission may include in an advertisement or promotion:
55	53		(1) the total amount of bingo prizes offered
56	54		statewide; or
57	55		(2) the amount of a prize or series of prizes offered
58	56		at a bingo occasion.
59	57		SECTION 3. Subchapter I, Chapter 2001, Occupations Code, is
60	58		amended by adding Section 2001.4151 to read as follows:
61	59		Sec. 2001.4151. ESTABLISHMENT OF NONPROFIT CORPORATION.
62	60		(a) A statewide organization in existence before January 1, 2024,
63	61		that as of that date has as its principal purpose assisting licensed
64	62		authorized organizations, units as defined by Subchapter I-1,
65	63		licensed commercial lessors, and licensed bingo distributors and
66	64		licensed bingo manufacturers in furthering the interests of
67	65		charitable bingo may form a nonprofit corporation governed by
68	66		Chapter 22, Business Organizations Code, to carry out the purposes
69	67		described in this section. For purposes of this subsection, an
70	68		organization is a statewide organization if the organization's
71	69		membership includes multiple licensed authorized organizations
72	70		that collectively have primary business offices in at least 15
73	71		counties in this state.
74	72		(b) A nonprofit corporation formed under this section may
75	73		accept money remitted to the corporation by a licensed authorized
76	74		organization under Section 2001.502(b-1).
77	75		(c) Subject to Subsection (d), a nonprofit corporation
78	76		formed under this section may spend money accepted under Subsection
79	77		(b) for purposes that include:
80	78		(1) advertising and promotional activities to inform
81	79		the public about charitable bingo, including:
82	80		(A) the purposes for which charitable bingo is
83	81		conducted;
84	82		(B) the types of charities benefiting from
85	83		charitable bingo;
86	84		(C) the locations where and times when charitable
87	85		bingo is conducted;
88	86		(D) the types of games conducted at charitable
89	87		bingo locations; and
90	88		(E) the amount of a prize or series of prizes that
91	89		may be offered at a bingo occasion;
92	90		(2) legal and accounting services;
93	91		(3) labor;
94	92		(4) utilities;
95	93		(5) office space; and
96	94		(6) other necessary expenses related to the purposes
97	95		of this section.
98	96		(d) A nonprofit corporation formed under this section:
99	97		(1) may only spend money under this section in
100	98		accordance with the plan adopted by the board of the corporation
101	99		under Subsection (e); and
102	100		(2) may not spend any money until the date the
103	101		corporation provides the notice required by Subsection (j).
104	102		(e) At least annually, the board of a nonprofit corporation
105	103		formed under this section shall adopt a plan for the corporation to
106	104		spend money.
107	105		(f) A nonprofit corporation established under this section
108	106		is exempt from taxation under:
109	107		(1) Chapter 151, Tax Code; and
110	108		(2) Chapter 171, Tax Code.
111	109		(g) A nonprofit corporation formed under this section may
112	110		not use money accepted under Subsection (b) to make:
113	111		(1) a campaign contribution, as defined by Section
114	112		251.001, Election Code;
115	113		(2) a direct campaign expenditure, as defined by
116	114		Section 251.001, Election Code;
117	115		(3) a political expenditure, as defined by Section
118	116		251.001, Election Code;
119	117		(4) an expenditure for political advertising, as
120	118		defined by Section 251.001, Election Code; or
121	119		(5) an expenditure to influence legislative subject
122	120		matter or administrative action as described in Chapter 305,
123	121		Government Code, including:
124	122		(A) to compensate or reimburse a person required
125	123		to register under Section 305.003, Government Code; or
126	124		(B) for legislative advertising, as defined by
127	125		Section 305.027, Government Code.
128	126		(h) Nothing in this section prohibits a nonprofit
129	127		corporation formed under this section from accepting and spending
130	128		money from sources other than bingo prize fees.
131	129		(i) A nonprofit corporation formed under this section shall
132	130		maintain books and records as required by state and federal law.
133	131		(j) A nonprofit corporation formed under this section
134	132		commences business on the date the corporation's board adopts an
135	133		initial annual plan under Subsection (e). On that date, the
136	134		corporation shall provide notification of the corporation's
137	135		commencement of business to:
138	136		(1) the commission; and
139	137		(2) each licensed authorized organization that
140	138		remitted money to a county or municipality under Section
141	139		2001.502(b) in 2023.
142	140		(k) A nonprofit corporation formed under this section may
143	141		not be licensed:
144	142		(1) to conduct bingo; or
145	143		(2) as a commercial lessor, bingo distributor, or
146	144		bingo manufacturer.
147		-	SECTION 4. ~~Sections~~ 2001.451(h) ~~and (j)~~, Occupations Code,
148		-	~~are~~ amended to read as follows:
	145	+	SECTION 4. Section 2001.451(h), Occupations Code, is
	146	+	amended to read as follows:
149	147		(h) Except as provided by Subsection (j), a licensed
150	148		authorized organization or a unit of licensed authorized
151	149		organizations may retain operating capital in the organization's or
152	150		unit's bingo account in an amount that:
153	151		(1) is equal to the organization's or unit's actual
154	152		average bingo expenses per quarter based on the preceding license
155	153		period, excluding prizes paid; and
156		-	(2) does not exceed a total of $~~100~~,000 [$50,000] for a
157		-	single organization or $~~100~~,000 [$50,000] for each member of a unit
	154	+	(2) does not exceed a total of $75,000 [$50,000] for a
	155	+	single organization or $75,000 [$50,000] for each member of a unit
158	156		unless:
159	157		(A) the commission by rule establishes a higher
160	158		amount for all organizations or units or one or more classes of
161	159		organizations or units; or
162	160		(B) the bingo operations director, on request,
163	161		raises the operating capital limit for one organization or unit as
164	162		necessary to facilitate the operation of the organization or unit.
165		-	(j) The commission shall adopt rules allowing a licensed
166		-	authorized organization to retain a maximum amount of operating
167		-	capital in the bingo account in excess of the amount provided by
168		-	Subsection (h) if the organization:
169		-	(1) has conducted bingo for less than one year;
170		-	(2) has been closed for at least six months;
171		-	(3) experiences circumstances beyond the control of
172		-	the organization, including force majeure, that necessitate an
173		-	increase in operating capital; or
174		-	(4) [(3)] provides to the commission a credible
175		-	business plan for the conduct of bingo or for the organization's
176		-	existing or planned charitable purposes that an increase in
177		-	operating capital will reasonably further.
178	163		SECTION 5. Section 2001.502, Occupations Code, is amended
179	164		by amending Subsections (a) and (b) and adding Subsection (b-1) to
180	165		read as follows:
181	166		(a) A licensed authorized organization or unit as defined by
182	167		Section 2001.431 shall:
183	168		(1) collect from a person who wins a cash bingo prize
184	169		of more than $100 [$5] a fee in the amount of five percent of the
185	170		amount of the prize; and
186	171		(2) except as otherwise provided by this section,
187	172		remit to the commission the amount of the fee collected under
188	173		Subdivision (1).
189	174		(b) Notwithstanding Subsection (a)(2) and subject to
190	175		Subsection (b-1), each quarter, a licensed authorized organization
191	176		or unit that collects a prize fee under Subsection (a) for a bingo
192	177		game conducted in a county or municipality that was entitled to
193	178		receive a portion of a bingo prize fee as of January 1, 2019, shall
194	179		remit 50 percent of the amount collected as the prize fee to the
195	180		commission and shall remit or deposit the remainder of the amount
196	181		collected as the prize fee as follows:
197	182		(1) if the county in which the bingo game is conducted
198	183		voted before November 1, 2019, to impose the prize fee and the
199	184		location at which the bingo game is conducted:
200	185		(A) is not within the boundaries of a
201	186		municipality, remit 50 percent of the amount collected as the prize
202	187		fee to the county; or
203	188		(B) is within the boundaries of a municipality
204	189		that:
205	190		(i) voted before November 1, 2019, to
206	191		impose the prize fee, remit 50 percent of the amount collected as
207	192		the prize fee in equal shares to the county and municipality; or
208	193		(ii) did not vote before November 1, 2019,
209	194		to impose the prize fee, remit 25 percent of the amount collected as
210	195		the prize fee to the county and deposit the remaining amount in the
211	196		manner described by Subdivision (3);
212	197		(2) if the county in which the bingo game is conducted
213	198		did not vote before November 1, 2019, to impose the prize fee and
214	199		the location at which the bingo game is conducted is within the
215	200		boundaries of a municipality that voted before November 1, 2019, to
216	201		impose the prize fee:
217	202		(A) remit 25 percent of the amount collected as
218	203		the prize fee to the municipality; and
219	204		(B) deposit the remaining amount in the manner
220	205		described by Subdivision (3); and
221	206		(3) if neither the county or municipality in which the
222	207		bingo game is conducted voted before November 1, 2019, to impose the
223	208		prize fee, deposit the remainder of the amount collected as the
224	209		prize fee in the general charitable fund of the organization or on a
225	210		pro rata basis to the general funds of the organizations comprising
226	211		the unit, as applicable, to be used for the charitable purposes of
227	212		the organization or organizations.
228	213		(b-1) A licensed authorized organization or unit that
229	214		collects a prize fee under Subsection (a) for a bingo game conducted
230	215		in a county or municipality entitled to receive a portion of a bingo
231	216		prize fee as of January 1, 2019, may reduce the amount remitted
232	217		under Subsection (b)(1) or (2) by an amount not to exceed 15 percent
233	218		of the total amount remitted to the applicable county or
234	219		municipality by the licensed authorized organization or unit in
235	220		2023. The licensed authorized organization or unit shall remit the
236	221		amount remaining after the remittance to the applicable county or
237	222		municipality to, and the amount remaining may be accepted by, a
238	223		nonprofit corporation formed under Section 2001.4151. If the
239	224		nonprofit corporation does not accept the amount remitted under
240	225		this subsection, the licensed authorized organization or unit shall
241	226		remit the amount in the manner provided by Subsection (b).
242		-	SECTION 6. (a) Except as provided by Subsection (b) of this
243		-	~~section, this~~ Act takes effect September 1, 2025.
	227	+	SECTION 6. (a) Except as provided by Subsection (b), this
	228	+	Act takes effect September 1, 2025.
244	229		(b) Section 5 of this Act takes effect October 1, 2025.