89R15265 BEE-D
By: Middleton, Hall S.B. No. 1721
A BILL TO BE ENTITLED
AN ACT
relating to the transfer of the licensing and regulation of
charitable bingo to the Texas Commission of Licensing and
Regulation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 411.093(a), Government Code, is amended
to read as follows:
(a) The Texas Department of Licensing and Regulation is
entitled to obtain criminal history record information as provided
by Subsection (b) that relates to:
(1) an applicant for or the holder of:
(A) a driver education instructor license under
Chapter 1001, Education Code;
(B) a license under Chapter 202, Occupations
Code;
(C) a license under Chapter 401, Occupations
Code;
(D) a license under Chapter 402, Occupations
Code; [or]
(E) a license under Chapter 2001, Occupations
Code; or
(F) an instructor license or motorcycle school
license under Chapter 662, Transportation Code;
(2) a person who is:
(A) an applicant for or the holder of a license
under Chapter 91, Labor Code; or
(B) a controlling person, as defined by Chapter
91, Labor Code, of an entity described by Paragraph (A); or
(3) a person who:
(A) is an applicant for or the holder of a license
under Chapter 455, Occupations Code; or
(B) has an interest described under Section
455.1525(e), Occupations Code, in an entity described by Paragraph
(A).
SECTION 2. Section 411.108(a-2), Government Code, is
amended to read as follows:
(a-2) Subject to Sections 411.087, 466.201, and 467.036(b)
[of this code and Section 2001.3025, Occupations Code,] and
consistent with the public policy of this state, the Texas Lottery
Commission is entitled to:
(1) obtain through the Federal Bureau of Investigation
criminal history record information maintained or indexed by that
bureau that pertains to a person described by Subsection (a) [or
(a-1)]; and
(2) obtain from the department or any other criminal
justice agency in this state criminal history record information
maintained by the department or that criminal justice agency that
relates to a person described by Subsection (a) [or (a-1)].
SECTION 3. Sections 466.002(2) and (3), Government Code,
are amended to read as follows:
(2) "Director" means the lottery director [of the
division].
(3) "Division" means the commission or a lottery
division established by the commission [under Chapter 467].
SECTION 4. Section 467.002, Government Code, is amended to
read as follows:
Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
subject to review under Chapter 325 (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the commission
is abolished and this chapter and[,] Chapter 466 [of this code, and
Chapter 2001, Occupations Code,] expire September 1, 2025.
SECTION 5. Sections 467.024(a) and (c), Government Code,
are amended to read as follows:
(a) An individual is not eligible to be an appointed member
of the commission if the individual:
(1) is registered, certified, or licensed by a
regulatory agency in the field of [bingo or] lottery;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization regulated by the commission or receiving funds from
the commission;
(3) is employed by or participates in the management
of a business entity or other organization regulated by or
receiving funds from the commission;
(4) uses or receives a substantial amount of tangible
goods, services, or funds from the commission, other than
compensation or reimbursement authorized by law for commission
membership, attendance, or expenses;
(5) is an officer, employee, or paid consultant of a
Texas trade association in the field of [bingo or] lottery;
(6) is required to register as a lobbyist under
Chapter 305 because of the person's activities for compensation on
behalf of a profession related to the operation of the commission;
(7) is married to an individual described by
Subdivisions (2)-(6);
(8) has been convicted of a felony or of any crime
involving moral turpitude; or
(9) is not a citizen of the United States.
(c) A person may not be a commission employee employed in a
"bona fide executive, administrative, or professional capacity,"
as that phrase is used for purposes of establishing an exemption to
the overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of [bingo or]
lottery; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of [bingo or]
lottery.
SECTION 6. Section 467.025(a), Government Code, is amended
to read as follows:
(a) A commission member may not:
(1) accept any employment or remuneration from[:
[(A)] a person that has a significant financial
interest in the lottery[; or
[(B) a bingo commercial lessor, bingo
distributor, or bingo manufacturer];
(2) play any lottery [or bingo] game conducted in this
state;
(3) accept or be entitled to accept any part of the
winnings to be paid from a lottery [or bingo] game conducted in this
state;
(4) use the member's official authority to affect the
result of an election or nomination for public office; or
(5) directly or indirectly coerce, attempt to coerce,
command, or advise a person to pay, lend, or contribute anything of
value to another person for political purposes.
SECTION 7. Section 467.035(a), Government Code, is amended
to read as follows:
(a) The commission may not employ or continue to employ a
person who owns a financial interest in[:
[(1) a bingo commercial lessor, bingo distributor, or
bingo manufacturer; or
[(2)] a lottery sales agency or a lottery operator.
SECTION 8. Sections 467.101(a) and (c), Government Code,
are amended to read as follows:
(a) The commission has broad authority and shall exercise
strict control and close supervision over all activities authorized
and conducted in this state under[:
[(1) Chapter 2001, Occupations Code; and
[(2)] Chapter 466 [of this code].
(c) The commission also has the powers and duties granted
under[:
[(1) Chapter 2001, Occupations Code; and
[(2)] Chapter 466 [of this code].
SECTION 9. Section 467.111(f), Government Code, is amended
to read as follows:
(f) The commission shall prepare a report on the trends and
issues identified under Subsection (e) and make the report
available to the public. The commission shall address the
identified trends and issues, including trends and issues related
to the regulation of lottery operations under Chapter 466 [and of
bingo under Chapter 2001, Occupations Code].
SECTION 10. Section 572.003(b), Government Code, is amended
to read as follows:
(b) The term means:
(1) the banking commissioner of the Texas Banking
Department [Banking Commissioner of The Banking Department of
Texas];
(2) the administrative director of the Office of Court
Administration of the Texas Judicial System;
(3) the chief executive of the Office of Public
Utility Counsel;
(4) the executive director of the State Bar of Texas;
(5) the lottery director [of the lottery division] of
the Texas Lottery Commission;
(6) the deputy in charge of the department of security
in a [the] lottery division of the Texas Lottery Commission;
(7) the director of the bingo division of the Texas
[Lottery] Commission of Licensing and Regulation; or
(8) the secretary of state.
SECTION 11. Section 2001.002, Occupations Code, is amended
by amending Subdivision (8) and adding Subdivision (8-a) to read as
follows:
(8) "Commission" means the Texas [Lottery] Commission
of Licensing and Regulation.
(8-a) "Department" means the Texas Department of
Licensing and Regulation.
SECTION 12. Subchapter B, Chapter 2001, Occupations Code,
is amended by adding Section 2001.0501 to read as follows:
Sec. 2001.0501. ALLOCATION OF POWERS AND DUTIES. A power
granted or duty assigned to the commission under this chapter is a
power or duty of the executive director of the department, the
director of bingo operations, the department, or the commission, as
established by commission rule.
SECTION 13. The following provisions of the Government Code
are repealed:
(1) Section 411.108(a-1);
(2) Section 467.021(c);
(3) Section 467.031; and
(4) Section 467.033.
SECTION 14. (a) On September 1, 2025:
(1) all functions and activities performed by the
Texas Lottery Commission relating to the regulation of bingo
operations under Chapter 2001, Occupations Code, immediately
before that date are transferred to the Texas Department of
Licensing and Regulation;
(2) a rule, policy, procedure, decision, or form
adopted by the Texas Lottery Commission relating to Chapter 2001,
Occupations Code, is a rule, policy, procedure, decision, or form
of the Texas Commission of Licensing and Regulation or the Texas
Department of Licensing and Regulation, as applicable, and remains
in effect until amended or replaced by that commission or
department unless the rule, policy, procedure, decision, or form
conflicts with the changes in law made by this Act;
(3) unless the context clearly indicates otherwise, a
reference to the Texas Lottery Commission in a law or
administrative rule that relates to Chapter 2001, Occupations Code,
means the Texas Commission of Licensing and Regulation or the Texas
Department of Licensing and Regulation, as applicable;
(4) a complaint, investigation, or other proceeding
before the Texas Lottery Commission that is related to Chapter
2001, Occupations Code, is transferred without change in status to
the Texas Department of Licensing and Regulation, and the Texas
Department of Licensing and Regulation assumes, as appropriate and
without a change in status, the position of the Texas Lottery
Commission in an action or proceeding to which the Texas Lottery
Commission is a party;
(5) a license, permit, certification, or registration
in effect that was issued by the Texas Lottery Commission under
Chapter 2001, Occupations Code, is continued in effect as a
license, permit, certification, or registration of the Texas
Department of Licensing and Regulation;
(6) all money, contracts, leases, property, and
obligations of the Texas Lottery Commission relating to Chapter
2001, Occupations Code, are transferred to the Texas Department of
Licensing and Regulation; and
(7) the unexpended and unobligated balance of any
money appropriated by the legislature for the Texas Lottery
Commission related to Chapter 2001, Occupations Code, is
transferred to the Texas Department of Licensing and Regulation.
(b) On September 1, 2025, all full-time equivalent employee
positions at the Texas Lottery Commission that primarily concern
the administration, auditing, accounting, enforcement, or other
direct and indirect support of Chapter 2001, Occupations Code,
become positions at the Texas Department of Licensing and
Regulation. When filling the positions, the Texas Department of
Licensing and Regulation shall give first consideration to an
applicant who, as of August 31, 2025, was an employee at the Texas
Lottery Commission primarily involved in administering or
enforcing Chapter 2001, Occupations Code.
(c) Not later than June 1, 2025, the Texas Lottery
Commission shall grant the Texas Department of Licensing and
Regulation inquiry-only security access to:
(1) all licensing, enforcement, and examination
software or computer systems used by the Texas Lottery Commission
in administering or enforcing Chapter 2001, Occupations Code; and
(2) the uniform statewide accounting system, the state
property accounting system, the uniform statewide payroll system,
and the human resources information system for the Texas Lottery
Commission.
(d) Before September 1, 2025, the Texas Lottery Commission
may agree with the Texas Department of Licensing and Regulation to
transfer any property of the Texas Lottery Commission to the Texas
Department of Licensing and Regulation to implement the transfers
required by this Act.
(e) The Texas Department of Licensing and Regulation and the
Texas Lottery Commission shall coordinate implementation of this
section. The Texas Lottery Commission shall cooperate with the
Texas Department of Licensing and Regulation in transferring all
data and records necessary to implement the transfers required by
this Act.
(f) Before July 15, 2025, the Texas Lottery Commission and
the Texas Department of Licensing and Regulation shall develop and
enter into a memorandum of understanding regarding the transfers
required by this Act. The memorandum must include a transition
plan with a timetable and specific steps and deadlines required to
complete the transfer.
(g) Not later than December 1, 2025, a manufacturer of bingo
equipment or supplies that submitted to the Texas Lottery
Commission a bond as required under Section 2001.204, Occupations
Code, before September 1, 2025, that is in effect on the effective
date of this Act must amend the bond to name the Texas Department of
Licensing and Regulation as the payee for the bond.
SECTION 15. The changes in law made by this Act to Chapter
2001, Occupations Code, apply only to a tax or fee charged on or
after September 1, 2025. A tax or fee charged before September 1,
2025, is governed by the law in effect immediately before that date,
and the former law is continued in effect for that purpose.
SECTION 16. Not later than March 1, 2026, the Texas
Commission of Licensing and Regulation shall adopt the rules
necessary to implement the changes in law made by this Act.
SECTION 17. 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, 2025.