Texas 2025 - 89th Regular

Texas Senate Bill SB1721 Compare Versions

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	1	+	89R15265 BEE-D
1	2		By: Middleton, Hall S.B. No. 1721
2		-	(In the Senate - Filed February 27, 2025; March 13, 2025,
3		-	read first time and referred to Committee on State Affairs;
4		-	April 16, 2025, reported adversely, with favorable Committee
5		-	Substitute by the following vote: Yeas 8, Nays 0; April 16, 2025,
6		-	sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR S.B. No. 1721 By: Middleton
9	3
10	4
11	5
12	6
13	7		A BILL TO BE ENTITLED
14	8		AN ACT
15	9		relating to the transfer of the licensing and regulation of
16	10		charitable bingo to the Texas Commission of Licensing and
17	11		Regulation.
18	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
19	13		SECTION 1. Section 411.093(a), Government Code, is amended
20	14		to read as follows:
21	15		(a) The Texas Department of Licensing and Regulation is
22	16		entitled to obtain criminal history record information as provided
23	17		by Subsection (b) that relates to:
24	18		(1) an applicant for or the holder of:
25	19		(A) a driver education instructor license under
26	20		Chapter 1001, Education Code;
27	21		(B) a license under Chapter 202, Occupations
28	22		Code;
29	23		(C) a license under Chapter 401, Occupations
30	24		Code;
31	25		(D) a license under Chapter 402, Occupations
	26	+	Code; [or]
	27	+	(E) a license under Chapter 2001, Occupations
32	28		Code; or
33		-	(E) an instructor license or motorcycle school
	29	+	(F) an instructor license or motorcycle school
34	30		license under Chapter 662, Transportation Code;
35	31		(2) a person who is:
36	32		(A) an applicant for or the holder of a license
37	33		under Chapter 91, Labor Code; or
38	34		(B) a controlling person, as defined by Chapter
39		-	91, Labor Code, of an entity described by Paragraph (A); [or]
	35	+	91, Labor Code, of an entity described by Paragraph (A); or
40	36		(3) a person who:
41	37		(A) is an applicant for or the holder of a license
42	38		under Chapter 455, Occupations Code; or
43	39		(B) has an interest described under Section
44	40		455.1525(e), Occupations Code, in an entity described by Paragraph
45		-	(A); or
46		-	(4) a person who:
47		-	(A) is an applicant for or the holder of a license
48		-	under Chapter 2001, Occupations Code; or
49		-	(B) has an interest described under Section
50		-	2001.3025(e), Occupations Code, in an entity described by Paragraph
51	41		(A).
52	42		SECTION 2. Section 411.108(a-2), Government Code, is
53	43		amended to read as follows:
54	44		(a-2) Subject to Sections 411.087, 466.201, and 467.036(b)
55	45		[of this code and Section 2001.3025, Occupations Code,] and
56	46		consistent with the public policy of this state, the Texas Lottery
57	47		Commission is entitled to:
58	48		(1) obtain through the Federal Bureau of Investigation
59	49		criminal history record information maintained or indexed by that
60	50		bureau that pertains to a person described by Subsection (a) [or
61	51		(a-1)]; and
62	52		(2) obtain from the department or any other criminal
63	53		justice agency in this state criminal history record information
64	54		maintained by the department or that criminal justice agency that
65	55		relates to a person described by Subsection (a) [or (a-1)].
66	56		SECTION 3. Sections 466.002(2) and (3), Government Code,
67	57		are amended to read as follows:
68	58		(2) "Director" means the lottery director [of the
69	59		division].
70	60		(3) "Division" means the commission or a lottery
71	61		division established by the commission [under Chapter 467].
72	62		SECTION 4. Section 467.002, Government Code, is amended to
73	63		read as follows:
74	64		Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
75	65		subject to review under Chapter 325 (Texas Sunset Act). Unless
76	66		continued in existence as provided by that chapter, the commission
77	67		is abolished and this chapter and[,] Chapter 466 [of this code, and
78	68		Chapter 2001, Occupations Code,] expire September 1, 2025.
79	69		SECTION 5. Sections 467.024(a) and (c), Government Code,
80	70		are amended to read as follows:
81	71		(a) An individual is not eligible to be an appointed member
82	72		of the commission if the individual:
83	73		(1) is registered, certified, or licensed by a
84	74		regulatory agency in the field of [bingo or] lottery;
85	75		(2) owns or controls, directly or indirectly, more
86	76		than a 10 percent interest in a business entity or other
87	77		organization regulated by the commission or receiving funds from
88	78		the commission;
89	79		(3) is employed by or participates in the management
90	80		of a business entity or other organization regulated by or
91	81		receiving funds from the commission;
92	82		(4) uses or receives a substantial amount of tangible
93	83		goods, services, or funds from the commission, other than
94	84		compensation or reimbursement authorized by law for commission
95	85		membership, attendance, or expenses;
96	86		(5) is an officer, employee, or paid consultant of a
97	87		Texas trade association in the field of [bingo or] lottery;
98	88		(6) is required to register as a lobbyist under
99	89		Chapter 305 because of the person's activities for compensation on
100	90		behalf of a profession related to the operation of the commission;
101	91		(7) is married to an individual described by
102	92		Subdivisions (2)-(6);
103	93		(8) has been convicted of a felony or of any crime
104	94		involving moral turpitude; or
105	95		(9) is not a citizen of the United States.
106	96		(c) A person may not be a commission employee employed in a
107	97		"bona fide executive, administrative, or professional capacity,"
108	98		as that phrase is used for purposes of establishing an exemption to
109	99		the overtime provisions of the federal Fair Labor Standards Act of
110	100		1938 (29 U.S.C. Section 201 et seq.), if:
111	101		(1) the person is an officer, employee, or paid
112	102		consultant of a Texas trade association in the field of [bingo or]
113	103		lottery; or
114	104		(2) the person's spouse is an officer, manager, or paid
115	105		consultant of a Texas trade association in the field of [bingo or]
116	106		lottery.
117	107		SECTION 6. Section 467.025(a), Government Code, is amended
118	108		to read as follows:
119	109		(a) A commission member may not:
120	110		(1) accept any employment or remuneration from[:
121	111		[(A)] a person that has a significant financial
122	112		interest in the lottery[; or
123	113		[(B) a bingo commercial lessor, bingo
124	114		distributor, or bingo manufacturer];
125	115		(2) play any lottery [or bingo] game conducted in this
126	116		state;
127	117		(3) accept or be entitled to accept any part of the
128	118		winnings to be paid from a lottery [or bingo] game conducted in this
129	119		state;
130	120		(4) use the member's official authority to affect the
131	121		result of an election or nomination for public office; or
132	122		(5) directly or indirectly coerce, attempt to coerce,
133	123		command, or advise a person to pay, lend, or contribute anything of
134	124		value to another person for political purposes.
135	125		SECTION 7. Section 467.035(a), Government Code, is amended
136	126		to read as follows:
137	127		(a) The commission may not employ or continue to employ a
138	128		person who owns a financial interest in[:
139	129		[(1) a bingo commercial lessor, bingo distributor, or
140	130		bingo manufacturer; or
141	131		[(2)] a lottery sales agency or a lottery operator.
142	132		SECTION 8. Sections 467.101(a) and (c), Government Code,
143	133		are amended to read as follows:
144	134		(a) The commission has broad authority and shall exercise
145	135		strict control and close supervision over all activities authorized
146	136		and conducted in this state under[:
147	137		[(1) Chapter 2001, Occupations Code; and
148	138		[(2)] Chapter 466 [of this code].
149	139		(c) The commission also has the powers and duties granted
150	140		under[:
151	141		[(1) Chapter 2001, Occupations Code; and
152	142		[(2)] Chapter 466 [of this code].
153	143		SECTION 9. Section 467.111(f), Government Code, is amended
154	144		to read as follows:
155	145		(f) The commission shall prepare a report on the trends and
156	146		issues identified under Subsection (e) and make the report
157	147		available to the public. The commission shall address the
158	148		identified trends and issues, including trends and issues related
159	149		to the regulation of lottery operations under Chapter 466 [and of
160	150		bingo under Chapter 2001, Occupations Code].
161	151		SECTION 10. Section 572.003(b), Government Code, is amended
162	152		to read as follows:
163	153		(b) The term means:
164		-	(1) the banking commissioner of the Texas Department
165		-	of Banking [Commissioner of The Banking Department of Texas];
	154	+	(1) the banking commissioner of the Texas Banking
	155	+	Department [Banking Commissioner of The Banking Department of
	156	+	Texas];
166	157		(2) the administrative director of the Office of Court
167	158		Administration of the Texas Judicial System;
168	159		(3) the chief executive of the Office of Public
169	160		Utility Counsel;
170	161		(4) the executive director of the State Bar of Texas;
171	162		(5) the lottery director [of the lottery division] of
172	163		the Texas Lottery Commission;
173	164		(6) the deputy in charge of the department of security
174	165		in a [the] lottery division of the Texas Lottery Commission;
175		-	(7) the executive director of the [bingo division of
176		-	the] Texas Department of Licensing and Regulation [Lottery
177		-	Commission]; or
	166	+	(7) the director of the bingo division of the Texas
	167	+	[Lottery] Commission of Licensing and Regulation; or
178	168		(8) the secretary of state.
179	169		SECTION 11. Section 2001.002, Occupations Code, is amended
180		-	by amending ~~Subdivisions~~ (8) and (25-a) ~~and adding Subdivision~~
181		-	~~(8-a) to read as~~ follows:
	170	+	by amending Subdivision (8) and adding Subdivision (8-a) to read as
	171	+	follows:
182	172		(8) "Commission" means the Texas [Lottery] Commission
183	173		of Licensing and Regulation.
184	174		(8-a) "Department" means the Texas Department of
185	175		Licensing and Regulation.
186		-	(25-a) "Regular license" means a license to conduct
187		-	bingo issued by the department [commission] under Subchapter C that
188		-	is not a temporary license.
189		-	SECTION 12. Section 2001.003, Occupations Code, is amended
190		-	to read as follows:
191		-	Sec. 2001.003. REGULATORY FUNDING FROM LICENSE FEES AND
192		-	BINGO PRIZE FEES. It is the intent of the legislature that the
193		-	funding necessary for the administration of this chapter by the
194		-	department [commission] be collected by the department
195		-	[commission] from commercial lessor, manufacturer, and distributor
196		-	license fees and money paid to the department [commission] by bingo
197		-	players as bingo prize fees.
198		-	SECTION 13. Section 2001.051, Occupations Code, is amended
199		-	to read as follows:
200		-	Sec. 2001.051. ADMINISTRATION AND PURPOSE OF CHAPTER
201		-	[CONTROL AND SUPERVISION OF BINGO; BINGO DIVISION]. (a) The
202		-	department [commission] shall administer this chapter.
203		-	(b) The purpose of this chapter is to ensure [commission has
204		-	broad authority and shall exercise strict control and close
205		-	supervision over] all bingo conducted in this state [so that bingo]
206		-	is fairly conducted and the proceeds derived from bingo are used for
207		-	an authorized purpose.
208		-	(c) This chapter does not limit the general powers of the
209		-	commission or the department under Chapter 51 [The commission shall
210		-	execute its authority through a bingo division established by the
211		-	commission to administer this chapter].
212		-	SECTION 14. Section 2001.057, Occupations Code, is amended
213		-	to read as follows:
214		-	Sec. 2001.057. BINGO ADVISORY BOARD [COMMITTEE]. (a) The
215		-	commission may establish [appoint] a bingo advisory board to advise
216		-	the commission and the department on matters related to this
217		-	state's bingo industry [committee consisting of nine members].
218		-	(b) The advisory board must consist of nine [commission
219		-	shall appoint] members appointed by the presiding officer of the
220		-	commission, on approval of the commission, and represent
221		-	[representing] a balance of interests including representatives
222		-	of:
223		-	(1) the public;
224		-	(2) charities that operate bingo games; and
225		-	(3) commercial and charity lessors that participate in
226		-	the bingo industry.
227		-	(c) The advisory board members serve staggered six-year
228		-	terms [A committee member serves at the pleasure of the
229		-	commission].
230		-	(d) An advisory board [A committee] member is not entitled
231		-	to receive compensation for serving as a member. An advisory board
232		-	[A committee] member is entitled to reimbursement for reasonable
233		-	expenses incurred in performing duties as a member.
234		-	(e) If a vacancy occurs on the advisory board, the presiding
235		-	officer of the commission, on approval of the commission, shall
236		-	appoint a replacement who meets the qualifications for the vacant
237		-	position to serve for the remainder of the term [The committee may:
238		-	[(1) advise the commission on the needs and problems
239		-	of the state's bingo industry;
240		-	[(2) comment on rules involving bingo during their
241		-	development and before final adoption unless an emergency requires
242		-	immediate action by the commission;
243		-	[(3) report annually to the commission on the
244		-	committee's activities; and
245		-	[(4) perform other duties as determined by the
246		-	commission].
247		-	(f) The presiding officer of the commission, on approval of
248		-	the commission, shall designate a member of the advisory board to
249		-	serve as the presiding officer of the advisory board for two years.
250		-	The presiding officer of the advisory board may vote on any matter
251		-	before the advisory board [The committee may meet quarterly or at
252		-	the commission's request].
253		-	(g) The commission may adopt rules to govern the operations
254		-	of the advisory board [committee].
255		-	SECTION 15. Sections 2001.060(a) and (c), Occupations Code,
256		-	are amended to read as follows:
257		-	(a) On or before June 1 of each even-numbered year, the
258		-	department [commission] shall prepare and deliver to the governor,
259		-	the lieutenant governor, the speaker of the house of
260		-	representatives, and the chairs of the standing committees of the
261		-	senate and house of representatives with primary jurisdiction over
262		-	charitable bingo a report stating for each of the preceding two
263		-	calendar years:
264		-	(1) the total amount of adjusted gross receipts
265		-	reported by licensed authorized organizations from their bingo
266		-	operations;
267		-	(2) the total amount of net proceeds reported by
268		-	licensed authorized organizations from their bingo operations; and
269		-	(3) a comparison of the amounts reported under
270		-	Subdivisions (1) and (2), including the percentage that the net
271		-	proceeds represents of the adjusted gross receipts.
272		-	(c) For purposes of Subsection (a), the department
273		-	[commission] shall determine the total amount of net proceeds in a
274		-	manner that does not reduce gross receipts by the amount of rent
275		-	paid for the rental of bingo premises by a licensed authorized
276		-	organization to another licensed authorized organization if the
277		-	other organization pays rent for the premises to a licensed
278		-	commercial lessor.
279		-	SECTION 16. Section 2001.101(a), Occupations Code, is
280		-	amended to read as follows:
281		-	(a) The department [commission] may license a person who is
282		-	an authorized organization eligible for a license to conduct bingo
283		-	if the person is:
284		-	(1) a religious society that has existed in this state
285		-	for at least three years;
286		-	(2) a nonprofit organization:
287		-	(A) whose predominant activities are for the
288		-	support of medical research or treatment programs; and
289		-	(B) that for at least three years:
290		-	(i) must have had a governing body or
291		-	officers elected by a vote of members or by a vote of delegates
292		-	elected by the members; or
293		-	(ii) must have been affiliated with a state
294		-	or national organization organized to perform the same purposes as
295		-	the nonprofit organization;
296		-	(3) a fraternal organization;
297		-	(4) a veterans organization that has existed in this
298		-	state for at least three years;
299		-	(5) a volunteer fire department that has existed in
300		-	this state for at least three years; or
301		-	(6) a volunteer emergency medical services provider
302		-	that has existed in this state for at least three years.
303		-	SECTION 17. Sections 2001.102(a) and (b), Occupations Code,
304		-	are amended to read as follows:
305		-	(a) An applicant for a license to conduct bingo must file
306		-	with the department [commission] an application on a form
307		-	prescribed by the department [commission].
308		-	(b) The application must include:
309		-	(1) the name and address of the applicant;
310		-	(2) the names and addresses of the applicant's
311		-	officers and directors;
312		-	(3) the address of the premises where and the time when
313		-	the applicant intends to conduct bingo under the license sought;
314		-	(4) the name and address of the licensed commercial
315		-	lessor of the premises, if the applicant intends to lease premises
316		-	to conduct bingo from a person other than an authorized
317		-	organization;
318		-	(5) a statement that the net proceeds of bingo will go
319		-	to one or more of the authorized charitable purposes under this
320		-	chapter;
321		-	(6) a designation of the applicant organization's
322		-	bingo chairperson under whom bingo will be conducted accompanied by
323		-	a statement signed by the chairperson stating that the chairperson
324		-	will be responsible for the conduct of bingo under the terms of the
325		-	license and this chapter;
326		-	(7) sufficient facts relating to the applicant's
327		-	incorporation and organization to enable the department
328		-	[commission] to determine whether the applicant is an authorized
329		-	organization;
330		-	(8) a copy of the applicant organization's most
331		-	recently filed Internal Revenue Service Form 990, if applicable;
332		-	(9) a letter of good standing from the applicant
333		-	organization's parent organization, if the organization receives
334		-	an exemption from federal income taxes as a member of a group of
335		-	organizations;
336		-	(10) copies of the applicant organization's organizing
337		-	instruments, including any bylaws, constitution, charter, and
338		-	articles of incorporation;
339		-	(11) verification of the applicant organization's good
340		-	standing with the secretary of state if the organization is
341		-	organized under the law of this state; and
342		-	(12) information necessary to conduct criminal
343		-	background checks on the applicant organization's officers and
344		-	directors.
345		-	SECTION 18. Sections 2001.103(a), (e), and (g), Occupations
346		-	Code, are amended to read as follows:
347		-	(a) An authorized organization may receive a temporary
348		-	license to conduct bingo by filing with the department [commission]
349		-	an application, on a form prescribed by the department
350		-	[commission].
351		-	(e) Notwithstanding any other provision of this subchapter,
352		-	the department [commission] shall issue to an authorized
353		-	organization that holds a regular license to conduct bingo 48
354		-	temporary licenses for each 12-month period that ends on an
355		-	anniversary of the date the regular license was issued or renewed.
356		-	Each unused temporary license issued to the license holder expires
357		-	on the anniversary of the date the temporary license was issued.
358		-	(g) Before using a temporary license issued under
359		-	Subsection (e), the license holder shall notify the department
360		-	[commission] in the manner the department [commission] prescribes
361		-	of the specific date, time, and location of the bingo occasion for
362		-	which the temporary license will be used. The department
363		-	[commission] shall provide to the license holder verification of
364		-	the department's [commission's] receipt of the notification. The
365		-	license holder shall maintain the verification in the records of
366		-	the authorized organization.
367		-	SECTION 19. Section 2001.105, Occupations Code, is amended
368		-	to read as follows:
369		-	Sec. 2001.105. LICENSE ISSUANCE OR RENEWAL. (a) The
370		-	department [commission] shall issue a temporary or regular license
371		-	or renew a regular license to conduct bingo if the department
372		-	[commission] determines that:
373		-	(1) the member or members of the applicant designated
374		-	in the application to conduct bingo are active members of the
375		-	applicant;
376		-	(2) the bingo is to be conducted in accordance with
377		-	this chapter;
378		-	(3) the proceeds of the bingo are to be disposed in
379		-	accordance with this chapter;
380		-	(4) the applicant has made and can demonstrate
381		-	significant progress toward the accomplishment of the purposes of
382		-	the organization during the 24 months preceding the date of
383		-	application for a license or regular license renewal;
384		-	(5) all persons who will conduct, promote, or
385		-	administer the proposed bingo are active members of the applicant
386		-	organization and all other persons who will assist in conducting,
387		-	promoting, or administering the proposed bingo games are persons
388		-	authorized to do so by Section 2001.411; and
389		-	(6) no person under whose name bingo will be conducted
390		-	and no person working at the proposed bingo has been convicted of a
391		-	gambling offense or criminal fraud.
392		-	(b) The department [commission] may not issue a license to
393		-	an authorized organization to conduct bingo if an officer or member
394		-	of the board of directors of the organization has been convicted of
395		-	criminal fraud or a gambling or gambling-related offense.
396		-	(c) A regular license to conduct bingo issued under this
397		-	subchapter expires on the second anniversary of the date of
398		-	issuance unless the commission or the department revokes or
399		-	suspends the license before that date.
400		-	SECTION 20. Section 2001.107(b), Occupations Code, is
401		-	amended to read as follows:
402		-	(b) A training program approved by the department
403		-	[commission] must include training related to:
404		-	(1) conducting bingo;
405		-	(2) administering and operating bingo; and
406		-	(3) promoting bingo.
407		-	SECTION 21. Section 2001.108, Occupations Code, is amended
408		-	to read as follows:
409		-	Sec. 2001.108. LICENSE AMENDMENT FOR CHANGE OF BINGO
410		-	PREMISES OR OCCASIONS. (a) A licensed authorized organization and
411		-	the licensed commercial lessor at which the organization conducts
412		-	or will conduct bingo may file a joint application with the
413		-	department [commission] to change the premises at which the
414		-	organization may conduct bingo or the times of the organization's
415		-	bingo occasions to allow the organization to conduct bingo at the
416		-	same time and premises that another licensed authorized
417		-	organization is licensed to conduct bingo if the other organization
418		-	has ceased, or will cease, conducting bingo at that time and
419		-	premises. The application must state whether the other
420		-	organization has ceased or will cease conducting bingo at that time
421		-	and premises because:
422		-	(1) the organization has abandoned or will abandon its
423		-	licensed time or premises; or
424		-	(2) the organization's lease has been or will be
425		-	terminated.
426		-	(b) If the other organization ceased or will cease
427		-	conducting bingo for the reason stated in Subsection (a)(1), the
428		-	department [commission] must act on the joint application filed
429		-	under Subsection (a) not later than the 14th day after the date the
430		-	application is filed with the department [commission].
431		-	(c) If the other organization ceased or will cease
432		-	conducting bingo for the reason stated in Subsection (a)(2), the
433		-	department [commission] must act on the joint application filed
434		-	under Subsection (a) not later than the 14th day after the date the
435		-	application is filed with the department [commission] or the date
436		-	on which the termination takes effect, whichever is later.
437		-	(d) If the department [commission] fails to act within the
438		-	time provided by Subsection (b) or (c), the licensed authorized
439		-	organization may act as if the change in premises or bingo occasions
440		-	has been approved by the department [commission] and may conduct
441		-	bingo at the new premises or during the new bingo occasion until the
442		-	department [commission] acts on the application.
443		-	(e) Notwithstanding Subsection (d), the department
444		-	[commission] may issue temporary licenses to one or more licensed
445		-	authorized organizations that conduct bingo at the same location as
446		-	an organization that has ceased or will cease to conduct bingo,
447		-	which are in addition to the number of temporary licenses each
448		-	organization is entitled to under another provision of this
449		-	chapter. The department [commission] is not required to act on a
450		-	joint application under Subsection (a) within the time provided by
451		-	this section if the number of additional temporary licenses is
452		-	sufficient to allow the other organizations at the location to
453		-	conduct bingo during the licensed times of the organization that
454		-	has ceased or will cease to conduct bingo.
455		-	SECTION 22. Section 2001.152(a), Occupations Code, is
456		-	amended to read as follows:
457		-	(a) The department [commission] may issue a commercial
458		-	lessor license only to:
459		-	(1) a licensed authorized organization that owns or
460		-	leases a premises where bingo is or will be conducted or an
461		-	association of licensed authorized organizations that jointly own
462		-	or lease premises where bingo is or will be conducted and that the
463		-	organization or association leases or offers for lease to one or
464		-	more other authorized organizations for the conduct of bingo;
465		-	(2) a person who leases premises to a single licensed
466		-	authorized organization that subleases or will sublease the
467		-	premises to one or more other licensed authorized organizations for
468		-	the conduct of bingo; or
469		-	(3) a person who leases premises for the total control
470		-	and exclusive use of only one licensed authorized organization as
471		-	that organization's primary business office.
472		-	SECTION 23. Section 2001.153(a), Occupations Code, is
473		-	amended to read as follows:
474		-	(a) The department [commission] may not issue a commercial
475		-	lessor license to a person unless the department [commission]
476		-	receives evidence the department [commission] considers adequate
477		-	that funds used by the person seeking the license to obtain the
478		-	premises, provide the premises with furniture, fixtures, or
479		-	equipment, renovate the premises, or provide utilities to the
480		-	premises are:
481		-	(1) the person's own funds; or
482		-	(2) the funds of another person, including loan
483		-	proceeds, that:
484		-	(A) were obtained in an arms-length transaction
485		-	that was commercially reasonable under the circumstances; and
486		-	(B) were not obtained under an expectation or
487		-	obligation that the person from whom the funds were obtained would
488		-	directly participate in, or have a legal interest in, rents
489		-	obtained under the license or revenues or profits from the conduct
490		-	of bingo on the premises.
491		-	SECTION 24. Section 2001.154(a), Occupations Code, is
492		-	amended to read as follows:
493		-	(a) The department [commission] may not issue a commercial
494		-	lessor license to or renew a commercial lessor license of:
495		-	(1) a person convicted of criminal fraud or a gambling
496		-	or gambling-related offense;
497		-	(2) a public officer who receives any consideration,
498		-	direct or indirect, as owner or lessor of premises offered for
499		-	conducting bingo;
500		-	(3) a person who loans money to an authorized
501		-	organization;
502		-	(4) a distributor or manufacturer;
503		-	(5) a person in which a person covered by Subdivision
504		-	(1), (2), (3), or (4) or a person married or related in the first
505		-	degree by consanguinity or affinity, as determined under Chapter
506		-	573, Government Code, to one of those persons has greater than a 10
507		-	percent proprietary, equitable, or credit interest or in which one
508		-	of those persons is active or employed;
509		-	(6) a foreign corporation or other foreign legal
510		-	entity;
511		-	(7) an individual who is not a resident of this state;
512		-	(8) a corporation or other legal entity owned or
513		-	controlled by:
514		-	(A) a foreign corporation; or
515		-	(B) an individual who is not a resident of this
516		-	state; or
517		-	(9) a corporation or other legal entity:
518		-	(A) whose shares are publicly traded; or
519		-	(B) owned or controlled by a corporation whose
520		-	shares are publicly traded.
521		-	SECTION 25. Section 2001.156(a), Occupations Code, is
522		-	amended to read as follows:
523		-	(a) An applicant for a commercial lessor license must file
524		-	with the department an [commission a written verified] application
525		-	on a form prescribed by the department [commission].
526		-	SECTION 26. Section 2001.157, Occupations Code, is amended
527		-	to read as follows:
528		-	Sec. 2001.157. SUPPLEMENTAL INFORMATION. At any time the
529		-	department [commission], the appropriate governing body, or the
530		-	attorney general may make a written request of a commercial lessor
531		-	to disclose:
532		-	(1) the cost of the premises and appraised value for
533		-	property tax purposes or annual net lease rent, whichever is
534		-	applicable;
535		-	(2) gross rentals received and itemized expenses for
536		-	the preceding calendar or fiscal year, if any;
537		-	(3) gross rentals, if any, derived from bingo during
538		-	the preceding calendar or fiscal year;
539		-	(4) the computation by which the proposed rental
540		-	schedule was determined;
541		-	(5) the number of occasions on which the lessor
542		-	anticipates receiving rent for bingo during the next year or
543		-	shorter period if applicable and the proposed rent for each of those
544		-	occasions;
545		-	(6) estimated gross rental income from all other
546		-	sources during the next year; and
547		-	(7) estimated expenses itemized for the current year
548		-	and the amount of each item allocated to bingo rentals.
549		-	SECTION 27. Sections 2001.159(a) and (b), Occupations Code,
550		-	are amended to read as follows:
551		-	(a) The department [commission] shall issue or renew a
552		-	commercial lessor license if the department [commission]
553		-	determines that:
554		-	(1) the applicant has paid the license fee as provided
555		-	by Section 2001.158;
556		-	(2) the applicant qualifies to be licensed under this
557		-	chapter;
558		-	(3) the rent to be charged is fair and reasonable;
559		-	(4) there is no diversion of the funds of the proposed
560		-	lessee from the lawful purposes under this chapter;
561		-	(5) the person whose signature or name appears in the
562		-	application is in all respects the real party in interest and is not
563		-	an undisclosed agent or trustee for the real party in interest; and
564		-	(6) the applicant will lease the premises for the
565		-	conduct of bingo in accordance with this chapter.
566		-	(b) The department [commission] shall issue a commercial
567		-	lessor license under this section for the period specified in the
568		-	license application or for a shorter period as the commission
569		-	determines.
570		-	SECTION 28. Sections 2001.160(a), (e), (f), and (g),
571		-	Occupations Code, are amended to read as follows:
572		-	(a) On approval by the department [commission], a licensed
573		-	commercial lessor may transfer a commercial lessor license if the
574		-	person to whom the license will be transferred otherwise meets the
575		-	requirements of this subchapter.
576		-	(e) Unless the department [commission] revokes or suspends
577		-	the license under this chapter, or an injunction is issued under
578		-	this section, a licensed authorized organization that conducts
579		-	bingo lawfully at premises under a license to which Subsection (d)
580		-	applies may continue conducting bingo at the premises after the
581		-	death or incapacity of the commercial lessor license holder.
582		-	(f) On the showing by the department [commission] of a cause
583		-	that would be sufficient for the commission or the department to
584		-	revoke or suspend a license under this chapter or an applicable
585		-	commission rule, a district court in the county for which a
586		-	commercial lessor license was issued or the department [commission]
587		-	by order may temporarily or permanently enjoin the conduct of bingo
588		-	at premises under a license to which Subsection (d) applies.
589		-	(g) The estate or guardian of an individual to whom
590		-	Subsection (d) applies shall notify the department [commission] not
591		-	later than one year after the date the individual dies or is
592		-	determined to be incapacitated by a court of this state. The estate
593		-	or guardian and the heirs or other appropriate person shall
594		-	promptly take all necessary steps to complete a transfer of the
595		-	license to the heirs or other appropriate person.
596		-	SECTION 29. Section 2001.161(c), Occupations Code, is
597		-	amended to read as follows:
598		-	(c) The department [commission] may issue a commercial
599		-	lessor license to a licensed authorized organization only for the
600		-	same premises where the organization is licensed to conduct bingo.
601		-	SECTION 30. Section 2001.203, Occupations Code, is amended
602		-	to read as follows:
603		-	Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An
604		-	applicant for a manufacturer's license must file with the
605		-	department [commission] an application on a form prescribed by the
606		-	department [commission].
607		-	(b) The application must include:
608		-	(1) the name and address of the applicant and the name
609		-	and address of each of its locations where bingo supplies or
610		-	equipment are manufactured;
611		-	(2) a full description of each type of bingo supply or
612		-	equipment that the applicant intends to manufacture or market in
613		-	this state and the brand name, if any, under which each item will be
614		-	sold;
615		-	(3) if the applicant:
616		-	(A) is not a corporation, the name and home
617		-	address of each owner; or
618		-	(B) is a corporation, the name and home address
619		-	of each officer and director and each person owning more than 10
620		-	percent of a class of stock in the corporation;
621		-	(4) if the applicant is a foreign corporation or other
622		-	foreign legal entity, the name, business name and address, and
623		-	address of its registered agent for service in this state;
624		-	(5) the name and address of each manufacturer,
625		-	supplier, and distributor in which the applicant has a financial
626		-	interest and the details of that financial interest, including any
627		-	indebtedness between the applicant and the manufacturer, supplier,
628		-	or distributor of $5,000 or more;
629		-	(6) information regarding whether the applicant or a
630		-	person required to be named in the application has been convicted in
631		-	this state or another state of criminal fraud or a gambling or
632		-	gambling-related offense;
633		-	(7) information regarding whether the applicant or a
634		-	person required to be named in the application is an owner, officer,
635		-	director, shareholder, agent, or employee of a licensed commercial
636		-	lessor or conducts, promotes, administers, or assists in
637		-	conducting, promoting, or administering bingo for which a license
638		-	is required by this chapter;
639		-	(8) information regarding whether the applicant or a
640		-	person required to be named in the application is a public officer
641		-	or public employee in this state;
642		-	(9) the name of each state in which the applicant is or
643		-	has been licensed to manufacture, distribute, or supply bingo
644		-	equipment or supplies, each license number, the period of time
645		-	licensed under each license, and whether a license has been
646		-	revoked, suspended, withdrawn, canceled, or surrendered and, if so,
647		-	the reasons for the action taken;
648		-	(10) information regarding whether the applicant or a
649		-	person required to be named in the application is or has been a
650		-	professional gambler or gambling promoter;
651		-	(11) the names and addresses of each manufacturer,
652		-	supplier, or distributor of bingo equipment or supplies in which
653		-	the applicant or a person required to be named in the application is
654		-	an owner, officer, shareholder, director, agent, or employee; and
655		-	(12) any other information the department
656		-	[commission] requests.
657		-	SECTION 31. Section 2001.204(a), Occupations Code, is
658		-	amended to read as follows:
659		-	(a) An applicant for a manufacturer's license must give the
660		-	department [commission] a cash bond or a bond in the amount of
661		-	$10,000 issued by a surety company chartered or authorized to do
662		-	business in this state.
663		-	SECTION 32. Section 2001.208, Occupations Code, is amended
664		-	to read as follows:
665		-	Sec. 2001.208. DISTRIBUTOR'S LICENSE APPLICATION. (a) An
666		-	applicant for a distributor's license must file with the department
667		-	[commission] an [executed verified] application on a form
668		-	prescribed by the department [commission].
669		-	(b) The application must include:
670		-	(1) the full name and address of the applicant;
671		-	(2) the name and address of each location operated by
672		-	the distributor from which bingo supplies or equipment are
673		-	distributed or at which bingo supplies or equipment are stored;
674		-	(3) if a noncorporate distributor, the name and home
675		-	address of each owner;
676		-	(4) if a corporate distributor, the name and home
677		-	address of each officer or director and of each person owning more
678		-	than 10 percent of a class of stock in the corporation;
679		-	(5) if a foreign corporation or other foreign legal
680		-	entity, the name, business name and address, and address of its
681		-	registered agent for service in this state;
682		-	(6) a full description of the type of bingo supply or
683		-	equipment that the applicant intends to store or distribute in this
684		-	state and the name of the manufacturer of each item and the brand
685		-	name, if any, under which the item will be sold or marketed;
686		-	(7) the name and address of a manufacturer, supplier,
687		-	or distributor in which the applicant has a financial interest and
688		-	the details of that financial interest, including an indebtedness
689		-	between the applicant and the manufacturer, supplier, or
690		-	distributor of $5,000 or more;
691		-	(8) information regarding whether the applicant or a
692		-	person required to be named in the application has been convicted in
693		-	this state or another state of criminal fraud or a gambling or
694		-	gambling-related offense;
695		-	(9) information regarding whether the applicant or a
696		-	person required to be named in the application is an owner, officer,
697		-	director, shareholder, agent, or employee of a licensed commercial
698		-	lessor or conducts, promotes, administers, or assists in
699		-	conducting, promoting, or administering bingo for which a license
700		-	is required under this chapter;
701		-	(10) information regarding whether the applicant or a
702		-	person required to be named in the application is a public officer
703		-	or public employee in this state;
704		-	(11) the name of each state in which the applicant is
705		-	or has been licensed to manufacture, distribute, or supply bingo
706		-	equipment or supplies, each license number, the period of time
707		-	licensed under each license, and whether a license was revoked,
708		-	suspended, withdrawn, canceled, or surrendered and, if so, the
709		-	reasons for the action taken;
710		-	(12) information regarding whether the applicant or a
711		-	person required to be named in the application is or has been a
712		-	professional gambler or gambling promoter;
713		-	(13) the name and address of each manufacturer,
714		-	supplier, or distributor of bingo equipment or supplies in which
715		-	the applicant or a person required to be named in the application is
716		-	an owner, officer, shareholder, director, agent, or employee; and
717		-	(14) any other information the department
718		-	[commission] requests.
719		-	SECTION 33. Sections 2001.211(a), (b), and (c), Occupations
720		-	Code, are amended to read as follows:
721		-	(a) An applicant for a manufacturer's or distributor's
722		-	license shall, during pendency of the application, notify the
723		-	department [commission] immediately of any change relating to a
724		-	fact stated in the application.
725		-	(b) If a change occurs after issuance of a manufacturer's or
726		-	distributor's license, the license holder shall report the change
727		-	to the department [commission] not later than the 14th day after the
728		-	date of the change.
729		-	(c) Not later than the 14th day after the date of the change,
730		-	a license holder shall notify the department [commission] of a
731		-	change in:
732		-	(1) the license holder's organization, structure, or
733		-	mode of operation;
734		-	(2) the identity of persons named or required to be
735		-	named in the application and the nature or extent of those persons'
736		-	interest; or
737		-	(3) any other facts stated in the application.
738		-	SECTION 34. Section 2001.212, Occupations Code, is amended
739		-	to read as follows:
740		-	Sec. 2001.212. DENIAL OF LICENSE. The commission or the
741		-	department may deny an application for or renewal of a license for a
742		-	cause that would permit or require the suspension or revocation of
743		-	the license.
744		-	SECTION 35. Section 2001.213, Occupations Code, is amended
745		-	to read as follows:
746		-	Sec. 2001.213. DEPARTMENT [COMMISSION] ACTION NOT
747		-	REQUIRED. If, for reasons beyond the control of the department
748		-	[commission], sufficient information is not available to allow the
749		-	department [commission] to determine the eligibility of an
750		-	applicant for a manufacturer's or distributor's license issued
751		-	under this chapter, the department [commission] is not required to
752		-	take action on the application until the applicant provides the
753		-	required information.
754		-	SECTION 36. Section 2001.214(a), Occupations Code, is
755		-	amended to read as follows:
756		-	(a) Except as provided by Subsection (b), a manufacturer's
757		-	or distributor's license is effective for one year unless revoked
758		-	or suspended by the commission or the department.
759		-	SECTION 37. Section 2001.216, Occupations Code, is amended
760		-	to read as follows:
761		-	Sec. 2001.216. EXAMINATION OF RECORDS. (a) The department
762		-	[commission] may examine the books and records of the holder of or
763		-	an applicant for a manufacturer's or distributor's license.
764		-	(b) The department [commission] may not disclose
765		-	information obtained during the examination except as necessary to
766		-	carry out this chapter.
767		-	SECTION 38. Sections 2001.218(b) and (c), Occupations Code,
768		-	are amended to read as follows:
769		-	(b) If a payment is not made when due, the seller shall
770		-	immediately notify the department [commission]. The department
771		-	[commission] shall notify all manufacturers and distributors
772		-	licensed in this state of the default.
773		-	(c) In the event of a default, a person may not sell or
774		-	transfer bingo equipment or supplies to the purchaser in default on
775		-	terms other than immediate payment on delivery until otherwise
776		-	authorized by the department [commission].
777		-	SECTION 39. The heading to Subchapter G, Chapter 2001,
778		-	Occupations Code, is amended to read as follows:
779		-	SUBCHAPTER G. GENERAL LICENSING PROVISIONS [RELATING TO COMMISSION
780		-	LICENSES]
781		-	SECTION 40. Section 2001.301, Occupations Code, is amended
782		-	to read as follows:
783		-	Sec. 2001.301. LICENSE DETERMINATION [INVESTIGATION].
784		-	Promptly after the filing of the application for a license under
785		-	this chapter, the department [commission] shall review
786		-	[investigate] the qualifications of each applicant and determine
787		-	whether the applicant meets the requirements for the license [the
788		-	merits of the application].
789		-	SECTION 41. Section 2001.3025, Occupations Code, is amended
790		-	to read as follows:
791		-	Sec. 2001.3025. [ACCESS TO] CRIMINAL HISTORY RECORD
792		-	INFORMATION REQUIREMENT. (a) The department shall require an
793		-	applicant for a license under this chapter to submit to the
794		-	department or to [commission is entitled to conduct an
795		-	investigation of and is entitled to obtain criminal history record
796		-	information maintained by] the Department of Public Safety a
797		-	complete and legible set of fingerprints on a form the department
798		-	prescribes for the purpose of obtaining criminal history record
799		-	information from the Department of Public Safety and[,] the Federal
800		-	Bureau of Investigation [identification division, or another law
801		-	enforcement agency to assist in the investigation of:
802		-	[(1) an applicant for or holder of a license issued
803		-	under this chapter;
804		-	[(2) a person required to be named in a license
805		-	application; or
806		-	[(3) an employee or other person who works or will work
807		-	for a license holder and who is required by another provision of
808		-	this chapter to undergo a criminal background check].
809		-	(b) The department may not issue a license to a person or
810		-	entity who does not comply with the requirement of Subsection (a).
811		-	(c) The department shall conduct a criminal history record
812		-	information check of each applicant for a license using
813		-	information:
814		-	(1) provided by the individual under this section; and
815		-	(2) made available to the department by the Department
816		-	of Public Safety, the Federal Bureau of Investigation, and any
817		-	other criminal justice agency under Chapter 411, Government Code.
818		-	(d) The department may:
819		-	(1) enter into an agreement with the Department of
820		-	Public Safety to administer a criminal history record information
821		-	check required under this section; and
822		-	(2) authorize the Department of Public Safety to
823		-	collect from each applicant the costs incurred by the Department of
824		-	Public Safety in conducting the criminal history record information
825		-	check.
826		-	(e) For purposes of this section, if the applicant for a
827		-	license is an entity, the applicant must submit fingerprints as
828		-	required by Subsection (a) for each individual who:
829		-	(1) personally or constructively holds, including as
830		-	the beneficiary of a trust:
831		-	(A) at least 10 percent of the entity's
832		-	outstanding stock; or
833		-	(B) more than $25,000 of the fair market value of
834		-	the entity;
835		-	(2) has the controlling interest in the entity;
836		-	(3) has a direct or indirect participating interest
837		-	through shares, stock, or otherwise, regardless of whether voting
838		-	rights are included, of more than 10 percent of the profits,
839		-	proceeds, or capital gains of the entity;
840		-	(4) is a member of the board of directors or other
841		-	governing body of the entity; or
842		-	(5) serves as:
843		-	(A) an elected officer of the entity; or
844		-	(B) a general manager of the entity.
845		-	(f) This section does not apply to a temporary license
846		-	issued under this chapter.
847		-	SECTION 42. Sections 2001.305(a), (b), and (c), Occupations
848		-	Code, are amended to read as follows:
849		-	(a) The department [commission] may not issue a license to
850		-	an applicant for an authorized organization license or a commercial
851		-	lessor license until the applicant has sent a copy of the license
852		-	application to the appropriate governing body.
853		-	(b) Except as provided by Section 2001.103(i), immediately
854		-	after issuing a license, the department [commission] shall send a
855		-	copy of the license to the appropriate governing body. The
856		-	governing body shall file the copy of the license in a central file
857		-	containing licenses issued under this chapter.
858		-	(c) Except as provided by Section 2001.103(i), not later
859		-	than the 10th day after the date a license is issued, the department
860		-	[commission] shall give written notice of the issuance of the
861		-	license to:
862		-	(1) the police department of the municipality in which
863		-	bingo will be conducted, if bingo is to be conducted in a
864		-	municipality; or
865		-	(2) the sheriff of the county in which bingo will be
866		-	conducted, if bingo is to be conducted outside a municipality.
867		-	SECTION 43. Sections 2001.306(a) and (d), Occupations Code,
868		-	are amended to read as follows:
869		-	(a) A license issued under this chapter may be amended on
870		-	application to the department [commission] and on payment of a fee
871		-	in the amount required by the commission if the subject matter of
872		-	the proposed amendment could properly have been included in the
873		-	original license.
874		-	(d) The holder of a license to conduct bingo shall notify
875		-	the department [commission] before changing the time or date of a
876		-	game. The license holder may provide notice to the department
877		-	[commission] regarding the change by use of telephone or facsimile.
878		-	SECTION 44. Section 2001.311, Occupations Code, is amended
879		-	to read as follows:
880		-	Sec. 2001.311. RIGHTS NOT VESTED. The issuance of a license
881		-	[or temporary authorization] by the department [commission] does
882		-	not grant a vested right in the license[, the temporary
883		-	authorization,] or the privileges conferred.
884		-	SECTION 45. Sections 2001.313(a), (b-1), (c), (e), (f), and
885		-	(g), Occupations Code, are amended to read as follows:
886		-	(a) To minimize duplicate criminal history background
887		-	checks by the department [commission] and the costs incurred by
888		-	organizations and individuals, the department [commission] shall
889		-	maintain a registry of individuals on whom the department
890		-	[commission] has conducted a criminal history background check and
891		-	who are approved to be involved in the conduct of bingo or to act as
892		-	a bingo operator.
893		-	(b-1) An individual's listing on the registry expires on the
894		-	third anniversary of the date the individual was initially included
895		-	on the registry. The individual may renew the listing before the
896		-	expiration date. If the individual fails to renew the listing, the
897		-	department [commission] shall remove the individual's name from the
898		-	registry. An individual whose name is removed from the registry may
899		-	reapply for listing on the registry.
900		-	(c) The department [commission] shall make the registry
901		-	information available to the public by publishing it on the
902		-	department's [commission's] website [and by responding to
903		-	telephone, e-mail, and facsimile requests]. This subsection does
904		-	not require the department [commission] to disclose information
905		-	that is confidential by law.
906		-	(e) The department [commission] may refuse to add an
907		-	individual's name to, or remove an individual's name from, the
908		-	registry established by this section if, after notice and, if
909		-	requested by the individual, a hearing, the individual is finally
910		-	determined to have:
911		-	(1) been convicted of an offense listed under Section
912		-	2001.105(b);
913		-	(2) converted bingo equipment in a premises to an
914		-	improper use;
915		-	(3) converted funds that are in, or that should have
916		-	been in, the bingo account of any licensed authorized organization;
917		-	(4) taken any action, individually or in concert with
918		-	another person, that affects the integrity of any bingo game to
919		-	which this chapter applies;
920		-	(5) acted as an operator, manager, cashier, usher,
921		-	caller, bingo chairperson, bookkeeper, or salesperson for a
922		-	licensed authorized organization without being listed on the
923		-	registry established under this section;
924		-	(6) failed to provide a complete application; or
925		-	(7) participated in any violation of this chapter or
926		-	rules adopted by the commission for the administration of this
927		-	chapter.
928		-	(f) A licensed authorized organization shall report to the
929		-	department [commission or its designee] the discovery of any
930		-	conduct on the part of an individual registered or required to be
931		-	registered under this section where there is substantial basis for
932		-	believing that the conduct would constitute grounds for removal of
933		-	the individual's name from, or refusal to add the individual's name
934		-	to, the registry established by this section. A statement made in
935		-	good faith to the department [commission] or to an adjudicative
936		-	body in connection with any such report may not be the basis for an
937		-	action for defamation of character.
938		-	(g) An individual who has been finally determined to have
939		-	taken action prohibited by Subsection (e)(2), (3), (4), (5), (6),
940		-	or (7) cannot be listed on the registry of approved bingo workers
941		-	and cannot work as a bingo worker for one year from the date of such
942		-	determination. Upon expiration of the one-year period, the
943		-	individual is eligible for listing on the registry provided a
944		-	licensee subject to this chapter makes application to list the
945		-	individual. In such event, the department [commission] shall take
946		-	into consideration the facts and circumstances that occurred that
947		-	led to the applicable action under Subsections (e)(2)-(7) in
948		-	deciding whether to list the individual on the registry.
949		-	SECTION 46. Sections 2001.314(a) and (b), Occupations Code,
950		-	are amended to read as follows:
951		-	(a) The commission by rule may require an individual listed
952		-	in the registry maintained under Section 2001.313 to wear an
953		-	identification card to identify the individual to license holders,
954		-	bingo players, and department [commission] staff while the
955		-	individual is on duty during the conduct of bingo. The commission
956		-	by rule shall prescribe the form and content of the card.
957		-	(b) The department [commission] shall provide the
958		-	identification card and shall provide a form to be completed by an
959		-	individual that allows the individual to prepare the identification
960		-	card. The commission may set [collect] a reasonable fee for the
961		-	individual to pay to the department [charge] to cover the cost of
962		-	providing the card or form.
963		-	SECTION 47. Section 2001.316, Occupations Code, is amended
964		-	to read as follows:
965		-	Sec. 2001.316. DELIVERY OF DEPARTMENT [COMMISSION] NOTICE.
966		-	If notice under this chapter is required to be given to an
967		-	authorized organization, the department [commission] shall send
968		-	the notice to the bingo chairperson of the authorized organization
969		-	and to the appropriate commercial lessor, if applicable.
970		-	SECTION 48. Section 2001.351, Occupations Code, is amended
971		-	to read as follows:
972		-	Sec. 2001.351. DENIAL, REVOCATION, AND SUSPENSION OF
973		-	LICENSE. The commission or the department may deny, revoke, or
974		-	suspend in accordance with Subchapter G, Chapter 51, [an
975		-	application for] a license or renewal of a license issued under this
976		-	chapter for a violation of [cause that would permit or require the
977		-	suspension or revocation of a license issued under] this chapter or
978		-	a rule or order of the commission or the department.
979		-	SECTION 49. Sections 2001.355(a), (b), and (c), Occupations
980		-	Code, are amended to read as follows:
981		-	(a) The department [commission] may temporarily suspend a
982		-	license issued under this chapter for failure to comply with this
983		-	chapter or a commission rule.
984		-	(b) Before temporarily suspending a license, the department
985		-	[director of bingo operations] must follow any prehearing rules
986		-	adopted by the commission to determine whether [if] the license
987		-	holder's continued operation may constitute:
988		-	(1) an immediate threat to the health, safety,
989		-	[morals,] or welfare of the public; or
990		-	(2) a financial loss to this state, which includes a
991		-	license holder's failure to remit prize fee payments under Section
992		-	2001.502 to the department [commission] as required by that
993		-	section.
994		-	(c) An order of temporary suspension issued under this
995		-	section must comply with the procedural requirements for an
996		-	emergency order issued under Section 51.3511 [Chapter 2001,
997		-	Government Code, does not apply to the director of bingo operations
998		-	or to the commission in the enforcement and administration of a
999		-	temporary suspension under this section].
1000		-	SECTION 50. Section 2001.403(b), Occupations Code, is
1001		-	amended to read as follows:
1002		-	(b) This section does not apply if more than one premises
1003		-	lawfully exists under a common roof or over a common foundation
1004		-	under a license application filed [with the commission] on or
1005		-	before May 23, 1997. The department [commission] shall renew a
1006		-	license at the premises that is otherwise in compliance with this
1007		-	chapter.
1008		-	SECTION 51. Section 2001.407(f), Occupations Code, is
1009		-	amended to read as follows:
1010		-	(f) With the prior written consent of the department
1011		-	[commission], a licensed authorized organization may make an
1012		-	occasional sale of bingo cards or of a used bingo flash board or
1013		-	blower to another licensed authorized organization.
1014		-	SECTION 52. Section 2001.411(e), Occupations Code, is
1015		-	amended to read as follows:
1016		-	(e) The commission may not prohibit an operator responsible
1017		-	for conducting, promoting, or administering bingo from acting as a
1018		-	bingo caller for a licensed authorized organization during a bingo
1019		-	occasion. This subsection does not relieve the operator of the duty
1020		-	to be available to a department [commission] employee or bingo
1021		-	player if required by this chapter.
1022		-	SECTION 53. Section 2001.415, Occupations Code, is amended
1023		-	to read as follows:
1024		-	Sec. 2001.415. ADVERTISEMENTS. (a) A person other than a
1025		-	licensed authorized organization, licensed commercial lessor, or
1026		-	the department [commission] may not advertise bingo.
1027		-	(b) A licensed authorized organization, licensed commercial
1028		-	lessor, or the department [commission] may include in an
1029		-	advertisement or promotion the amount of a prize or series of prizes
1030		-	offered at a bingo occasion.
1031		-	SECTION 54. Sections 2001.437(a) and (b), Occupations Code,
1032		-	are amended to read as follows:
1033		-	(a) If the unit accounting agreement of a unit states that a
1034		-	unit manager is responsible for compliance with commission rules
1035		-	and this chapter, the unit manager is responsible for:
1036		-	(1) the filing of one quarterly report for the unit on
1037		-	a form prescribed by the department [commission]; and
1038		-	(2) the payment of fees and the maintenance of the
1039		-	bingo inventory and financial records of the unit.
1040		-	(b) A unit with a unit manager shall notify the department
1041		-	[commission] of the name of the unit manager and immediately notify
1042		-	the department [commission] of any change of unit manager.
1043		-	SECTION 55. Sections 2001.438(b) and (d), Occupations Code,
1044		-	are amended to read as follows:
1045		-	(b) The unit shall designate with the department
1046		-	[commission] an agent who will be responsible for providing the
1047		-	department [commission] access to all inventory and financial
1048		-	records of the unit on request of the department [commission].
1049		-	(d) The unit shall immediately notify the department
1050		-	[commission] of any change in the agent designated under Subsection
1051		-	(b).
1052		-	SECTION 56. Section 2001.439(c), Occupations Code, is
1053		-	amended to read as follows:
1054		-	(c) The commission may prohibit a person who serves as a
1055		-	designated agent that is listed on a license under this chapter,
1056		-	including having been approved by the department [commission] to
1057		-	work in the bingo operations of a licensed authorized organization
1058		-	or as an operator, from holding or being listed on any license or
1059		-	from being approved to work in the bingo operations of any licensed
1060		-	authorized organization or to serve as an operator if the person has
1061		-	failed to comply with the duties required of the person as a unit
1062		-	manager or designated agent.
1063		-	SECTION 57. Sections 2001.451(c), (h), (i), (j), and (k),
1064		-	Occupations Code, are amended to read as follows:
1065		-	(c) A licensed authorized organization may transfer money
1066		-	from its general fund or other account to the organization's bingo
1067		-	account or to the bingo account of a unit of which the organization
1068		-	is a member under Subchapter I-1, if applicable, if:
1069		-	(1) the balance in the bingo account to which the funds
1070		-	are transferred is less than the maximum amount permitted by this
1071		-	section; and
1072		-	(2) the organization notifies the department
1073		-	[commission] of the transfer not later than the 14th day after the
1074		-	date of the transfer.
1075		-	(h) Except as provided by Subsection (j), a licensed
1076		-	authorized organization or a unit of licensed authorized
1077		-	organizations may retain operating capital in the organization's or
1078		-	unit's bingo account in an amount that:
1079		-	(1) is equal to the organization's or unit's actual
1080		-	average bingo expenses per quarter based on the preceding license
1081		-	period, excluding prizes paid; and
1082		-	(2) does not exceed a total of $50,000 for a single
1083		-	organization or $50,000 for each member of a unit unless:
1084		-	(A) the commission by rule establishes a higher
1085		-	amount for all organizations or units or one or more classes of
1086		-	organizations or units; or
1087		-	(B) the department [bingo operations director],
1088		-	on request, raises the operating capital limit for one organization
1089		-	or unit as necessary to facilitate the operation of the
1090		-	organization or unit.
1091		-	(i) Prize fees are not included in the calculation of
1092		-	operating capital under Subsection (h) if the prize fees are:
1093		-	(1) held in escrow for remittance to:
1094		-	(A) the department [commission]; or
1095		-	(B) a county or municipality; or
1096		-	(2) retained by a licensed authorized organization.
1097		-	(j) The commission shall adopt rules allowing a licensed
1098		-	authorized organization to retain a maximum amount of operating
1099		-	capital in the bingo account in excess of the amount provided by
1100		-	Subsection (h) if the organization:
1101		-	(1) has conducted bingo for less than one year;
1102		-	(2) experiences circumstances beyond the control of
1103		-	the organization, including force majeure, that necessitate an
1104		-	increase in operating capital; or
1105		-	(3) provides to the department [commission] a credible
1106		-	business plan for the conduct of bingo or for the organization's
1107		-	existing or planned charitable purposes that an increase in
1108		-	operating capital will reasonably further.
1109		-	(k) A licensed authorized organization may apply to the
1110		-	department [commission] for a waiver of the requirements of this
1111		-	section and Section 2001.457. The department [commission] may
1112		-	grant the waiver on a showing of good cause by the organization that
1113		-	compliance with this section and Section 2001.457 is detrimental to
1114		-	the organization's existing or planned charitable purposes. An
1115		-	organization applying for a waiver establishes good cause by
1116		-	providing to the department [commission]:
1117		-	(1) credible evidence of circumstances beyond the
1118		-	control of the organization, including force majeure; or
1119		-	(2) a credible business plan for the organization's
1120		-	conduct of bingo or the organization's existing or planned
1121		-	charitable purposes.
1122		-	SECTION 58. Section 2001.457(b), Occupations Code, is
1123		-	amended to read as follows:
1124		-	(b) If a licensed authorized organization fails to meet the
1125		-	requirements of Subsection (a) for a quarter, the department
1126		-	[commission] in applying appropriate sanctions shall consider
1127		-	whether, taking into account the amount required to be disbursed
1128		-	during that quarter and the three preceding quarters, the
1129		-	organization has disbursed a total amount sufficient to have met
1130		-	the disbursement requirement for that quarter and the three
1131		-	preceding quarters combined.
1132		-	SECTION 59. Sections 2001.502(a) and (b), Occupations Code,
1133		-	are amended to read as follows:
1134		-	(a) A licensed authorized organization or unit as defined by
1135		-	Section 2001.431 shall:
1136		-	(1) collect from a person who wins a cash bingo prize
1137		-	of more than $5 a fee in the amount of five percent of the amount of
1138		-	the prize; and
1139		-	(2) except as otherwise provided by this section,
1140		-	remit to the department [commission] the amount of the fee
1141		-	collected under Subdivision (1).
1142		-	(b) Notwithstanding Subsection (a)(2), each quarter, a
1143		-	licensed authorized organization or unit that collects a prize fee
1144		-	under Subsection (a) for a bingo game conducted in a county or
1145		-	municipality that was entitled to receive a portion of a bingo prize
1146		-	fee as of January 1, 2019, shall remit 50 percent of the amount
1147		-	collected as the prize fee to the department [commission] and shall
1148		-	remit or deposit the remainder of the amount collected as the prize
1149		-	fee as follows:
1150		-	(1) if the county in which the bingo game is conducted
1151		-	voted before November 1, 2019, to impose the prize fee and the
1152		-	location at which the bingo game is conducted:
1153		-	(A) is not within the boundaries of a
1154		-	municipality, remit 50 percent of the amount collected as the prize
1155		-	fee to the county; or
1156		-	(B) is within the boundaries of a municipality
1157		-	that:
1158		-	(i) voted before November 1, 2019, to
1159		-	impose the prize fee, remit 50 percent of the amount collected as
1160		-	the prize fee in equal shares to the county and municipality; or
1161		-	(ii) did not vote before November 1, 2019,
1162		-	to impose the prize fee, remit 25 percent of the amount collected as
1163		-	the prize fee to the county and deposit the remaining amount in the
1164		-	manner described by Subdivision (3);
1165		-	(2) if the county in which the bingo game is conducted
1166		-	did not vote before November 1, 2019, to impose the prize fee and
1167		-	the location at which the bingo game is conducted is within the
1168		-	boundaries of a municipality that voted before November 1, 2019, to
1169		-	impose the prize fee:
1170		-	(A) remit 25 percent of the amount collected as
1171		-	the prize fee to the municipality; and
1172		-	(B) deposit the remaining amount in the manner
1173		-	described by Subdivision (3); and
1174		-	(3) if neither the county or municipality in which the
1175		-	bingo game is conducted voted before November 1, 2019, to impose the
1176		-	prize fee, deposit the remainder of the amount collected as the
1177		-	prize fee in the general charitable fund of the organization or on a
1178		-	pro rata basis to the general funds of the organizations comprising
1179		-	the unit, as applicable, to be used for the charitable purposes of
1180		-	the organization or organizations.
1181		-	SECTION 60. Sections 2001.504(a), (b), and (d), Occupations
1182		-	Code, are amended to read as follows:
1183		-	(a) A fee on prizes authorized or imposed under this
1184		-	subchapter is due and is payable by the license holder or a person
1185		-	conducting bingo without a license to the department [commission]
1186		-	and county or municipality, as applicable, quarterly on or before
1187		-	the 25th day of the month succeeding each calendar quarter.
1188		-	(b) The report of the fee on prizes must be filed [under
1189		-	oath] on forms prescribed by the department [commission].
1190		-	(d) A license holder required to file a report of the fee on
1191		-	prizes shall deliver the quarterly report with the net amount of the
1192		-	fee due to the department [commission].
1193		-	SECTION 61. Section 2001.505(a), Occupations Code, is
1194		-	amended to read as follows:
1195		-	(a) A licensed authorized organization conducting bingo
1196		-	shall submit quarterly to the department [commission] a report
1197		-	under oath stating:
1198		-	(1) the amount of the gross receipts derived from
1199		-	bingo;
1200		-	(2) each item of expense incurred or paid;
1201		-	(3) each item of expenditure made or to be made, the
1202		-	name and address of each person to whom each item has been paid or is
1203		-	to be paid, and a detailed description of the merchandise purchased
1204		-	or the services rendered;
1205		-	(4) the net proceeds derived from bingo;
1206		-	(5) the use to which the proceeds have been or are to
1207		-	be applied; and
1208		-	(6) a list of prizes offered and given, with their
1209		-	respective values.
1210		-	SECTION 62. Section 2001.507, Occupations Code, is amended
1211		-	to read as follows:
1212		-	Sec. 2001.507. COLLECTION AND DEPOSIT OF PRIZE FEE. (a)
1213		-	The department [commission] shall deposit the revenue collected
1214		-	from the fee on prizes imposed by Section 2001.502 to the credit of
1215		-	the general revenue fund.
1216		-	(a-1) The revenue collected by the department [commission]
1217		-	from the fee on prizes imposed by Section 2001.502 is considered
1218		-	miscellaneous revenue for purposes of appropriations made to the
1219		-	department [commission] under the General Appropriations Act for
1220		-	the administration of this chapter.
1221		-	SECTION 63. Section 2001.508(a), Occupations Code, is
1222		-	amended to read as follows:
1223		-	(a) If a person fails to file a report of the fee on prizes
1224		-	as required by this chapter or fails to pay to the department
1225		-	[commission] the fee on prizes imposed under this chapter when the
1226		-	report or payment is due, the person forfeits five percent of the
1227		-	amount due as a penalty, and after the first 30 days, the person
1228		-	forfeits an additional five percent.
1229		-	SECTION 64. Section 2001.509, Occupations Code, is amended
1230		-	to read as follows:
1231		-	Sec. 2001.509. RECOMPUTATION OF PRIZE FEE. If the
1232		-	department [commission] is not satisfied with a report of the fee on
1233		-	prizes or the amount of the fee on prizes required to be remitted
1234		-	under this chapter to the state by a person, the department
1235		-	[commission] may compute and determine the amount required to be
1236		-	paid on the basis of:
1237		-	(1) the facts contained in the report of the fee on
1238		-	prizes or report of receipts and expenses; or
1239		-	(2) any information possessed by the department
1240		-	[commission] or that may come into the possession of the department
1241		-	[commission], without regard to the period covered by the
1242		-	information.
1243		-	SECTION 65. Sections 2001.510(a), (b), and (c), Occupations
1244		-	Code, are amended to read as follows:
1245		-	(a) If a license holder fails to make a required report of
1246		-	the fee on prizes, or if a person conducts bingo without a license,
1247		-	the department [commission] shall make an estimate of the prizes
1248		-	awarded at a bingo occasion. The department [commission] shall
1249		-	make the estimate for the period in respect to which the license
1250		-	holder or other person failed to make a report.
1251		-	(b) The estimate shall be based on any information covering
1252		-	any period possessed by the department [commission] or that may
1253		-	come into the possession of the department [commission].
1254		-	(c) On the basis of the department's [commission's]
1255		-	estimate, the department [commission] shall compute and determine
1256		-	the amount of the fee on prizes required to be paid to the state and
1257		-	shall add to that amount a penalty of 10 percent of the amount.
1258		-	SECTION 66. Sections 2001.511(a) and (b), Occupations Code,
1259		-	are amended to read as follows:
1260		-	(a) If the department [commission] believes that the
1261		-	collection of the fee on prizes, an amount of the fee on prizes
1262		-	required to be remitted to the state, or the amount of a
1263		-	determination will be jeopardized by delay, the department
1264		-	[commission] shall make a determination of the fee on prizes or
1265		-	amount of the fee required to be collected, noting the finding of
1266		-	jeopardy on the determination. The determined amount is due and
1267		-	payable immediately.
1268		-	(b) If a license holder against whom the determination is
1269		-	made does not pay the amount specified by a determination on or
1270		-	before the 20th day after the date of service of the determination
1271		-	on the license holder, the amount becomes final at the end of the
1272		-	20th day unless the license holder files with the department a
1273		-	petition for redetermination on or before the 20th day after
1274		-	service of notice of the determination.
1275		-	SECTION 67. Section 2001.512(b), Occupations Code, is
1276		-	amended to read as follows:
1277		-	(b) In applying the provisions of Subtitle B, Title 2, Tax
1278		-	Code, to the fee on prizes imposed under Section 2001.502 only, the
1279		-	fee on prizes is treated as if it were a tax and the powers and
1280		-	duties assigned to the comptroller under that subtitle are assigned
1281		-	to the department [commission].
1282		-	SECTION 68. Sections 2001.513(a), (b), (c), (d), (f), (g),
1283		-	and (h), Occupations Code, are amended to read as follows:
1284		-	(a) At any time within three years after a person is
1285		-	delinquent in the payment of an amount of the fee on prizes due to
1286		-	the department [commission], the department [commission] may
1287		-	collect the amount under this section.
1288		-	(b) The department [commission] shall seize real or
1289		-	personal property of the license holder not exempt from execution
1290		-	under the laws of this state and sell the property, or a sufficient
1291		-	part of the property, at public auction to pay the amount due and
1292		-	interest or penalties caused by the seizure and sale.
1293		-	(c) The department [commission] shall give the delinquent
1294		-	person written notice of the sale, including the time and place of
1295		-	the sale, at least 20 days before the date set for the sale. The
1296		-	department [commission] shall mail the notice, postage prepaid, in
1297		-	an envelope addressed to the person at the person's last known
1298		-	address or place of business.
1299		-	(d) The department [commission] shall publish the notice
1300		-	for at least 10 days before the date set for the sale in a newspaper
1301		-	of general circulation published in the county in which the
1302		-	property seized is to be sold. If there is no newspaper of general
1303		-	circulation in the county, the department [commission] shall post
1304		-	the notice in three public places in the county at least 20 days
1305		-	before the date set for the sale.
1306		-	(f) At the sale, the department [commission] shall sell the
1307		-	property in accordance with law and the notice and shall deliver to
1308		-	the purchaser a bill of sale for personal property and a deed for
1309		-	real property sold. The bill of sale or deed vests the interest or
1310		-	title of the delinquent person for the amount in the purchaser. The
1311		-	unsold portion of property seized may be left at the place of sale
1312		-	at the risk of the delinquent person for the amount.
1313		-	(g) Except as provided by Subsection (h), if the money
1314		-	received at the sale exceeds the total amounts, including interest,
1315		-	penalties, and costs due to the state, the department [commission]
1316		-	shall return the excess money to the person liable for the amounts
1317		-	and shall obtain the person's receipt. If the receipt of the
1318		-	delinquent person for the amount is not available, the department
1319		-	[commission] shall deposit the excess money with the comptroller,
1320		-	as trustee for the person, subject to the order of the person, or
1321		-	the person's heirs, successors, or assigns.
1322		-	(h) If a person having an interest in or lien on the property
1323		-	files with the department [commission] before the sale notice of
1324		-	the person's interest or lien, the department [commission] shall
1325		-	withhold any excess money pending a court determination of the
1326		-	rights of the respective parties to the money.
1327		-	SECTION 69. Sections 2001.514(a), (c), and (d), Occupations
1328		-	Code, are amended to read as follows:
1329		-	(a) To secure payment due to the department [commission] of
1330		-	the fee on prizes imposed under this subchapter, each license
1331		-	holder shall furnish to the department [commission]:
1332		-	(1) a cash bond;
1333		-	(2) a bond from a surety company chartered or
1334		-	authorized to do business in this state;
1335		-	(3) certificates of deposit;
1336		-	(4) certificates of savings;
1337		-	(5) United States treasury bonds;
1338		-	(6) subject to the approval of the department
1339		-	[commission], an assignment of negotiable stocks or bonds; or
1340		-	(7) other security as the commission by rule considers
1341		-	sufficient.
1342		-	(c) On a license holder's failure to pay the fee on prizes
1343		-	imposed under this subchapter, the department [commission] may
1344		-	notify the license holder and any surety of the delinquency by
1345		-	jeopardy or deficiency determination. If payment is not made when
1346		-	due, the department [commission] may forfeit all or part of the bond
1347		-	or security.
1348		-	(d) If the license holder ceases to conduct bingo and
1349		-	relinquishes the license holder's license, the department
1350		-	[commission] shall authorize the release of all bonds and other
1351		-	security on a determination that no amounts of the fee on prizes
1352		-	remain due and payable under this subchapter.
1353		-	SECTION 70. Section 2001.515, Occupations Code, is amended
1354		-	to read as follows:
1355		-	Sec. 2001.515. DEPARTMENT'S [COMMISSION'S] DUTIES. The
1356		-	department [commission] shall perform all functions incident to the
1357		-	administration, collection, enforcement, and operation of the fee
1358		-	on prizes imposed under this subchapter for amounts due to the
1359		-	department [commission], including any necessary reconciliation of
1360		-	a prize fee held by the department [commission] that is due to a
1361		-	county or municipality.
1362		-	SECTION 71. Section 2001.551(f), Occupations Code, is
1363		-	amended to read as follows:
1364		-	(f) A game exempted under Subsection (b)(4) is subject to
1365		-	the following restrictions:
1366		-	(1) a person licensed or required to be licensed under
1367		-	this chapter or having an interest in a license under this chapter
1368		-	may not be involved, directly or indirectly, in bingo, except that a
1369		-	licensed manufacturer or licensed distributor may sell or otherwise
1370		-	furnish bingo equipment or supplies for use in a game;
1371		-	(2) a person conducting bingo may purchase or
1372		-	otherwise obtain bingo equipment or supplies through a newspaper, a
1373		-	radio or television station, or an advertising agency and, unless
1374		-	otherwise authorized by [the] commission rule, only from a licensed
1375		-	manufacturer or licensed distributor;
1376		-	(3) a licensed manufacturer or licensed distributor
1377		-	may sell or otherwise furnish bingo equipment or supplies for use in
1378		-	a game only to or through a newspaper or a radio or television
1379		-	station or through an advertising agency acting on behalf of a
1380		-	person authorized to conduct the game; and
1381		-	(4) the commission by rule may require a person
1382		-	conducting or involved in conducting the game to:
1383		-	(A) notify the department [commission] of:
1384		-	(i) the persons involved in conducting the
1385		-	game;
1386		-	(ii) the manner in which the game is to be
1387		-	conducted; and
1388		-	(iii) any other information required by the
1389		-	commission; and
1390		-	(B) keep records of all transactions connected
1391		-	with the game available for department [commission] inspection.
1392		-	SECTION 72. Section 2001.557, Occupations Code, is amended
1393		-	to read as follows:
1394		-	Sec. 2001.557. INSPECTION OF PREMISES. (a) The department
1395		-	[commission, its officers or agents,] or a state, municipal, or
1396		-	county peace officer may enter and inspect the contents of premises
1397		-	where:
1398		-	(1) bingo is being conducted or intended to be
1399		-	conducted; or
1400		-	(2) equipment used or intended for use in bingo is
1401		-	found.
1402		-	(b) The department [commission by rule] shall conduct
1403		-	risk-based inspections in accordance with Section 51.211 that
1404		-	[develop and implement policies and procedures to:
1405		-	[(1)] prioritize the inspection of premises where
1406		-	bingo is being conducted or is intended to be conducted in
1407		-	accordance with the risk factors identified by the department [the
1408		-	commission considers important], including:
1409		-	(1) [(A)] the amount of money derived from the conduct
1410		-	of bingo at the premises;
1411		-	(2) [(B)] the compliance history of the premises; and
1412		-	(3) [(C)] the amount of time that has elapsed since
1413		-	the date of the immediately preceding commission inspection of the
1414		-	premises[; and
1415		-	[(2) inspect premises where bingo is being conducted
1416		-	or is intended to be conducted in accordance with the priorities
1417		-	established under Subdivision (1)].
1418		-	SECTION 73. Section 2001.558(a), Occupations Code, is
1419		-	amended to read as follows:
1420		-	(a) If the department [commission], the appropriate
1421		-	governing body, or the attorney general has reason to believe that
1422		-	this chapter has been or is about to be violated, the department
1423		-	[commission], the governing body, or the attorney general may
1424		-	petition a court for injunctive relief to restrain the violation.
1425		-	SECTION 74. Sections 2001.560(c), (c-1), (c-2), and (e),
1426		-	Occupations Code, are amended to read as follows:
1427		-	(c) The department [commission] or a person authorized in
1428		-	writing by the department [commission] may examine the books,
1429		-	papers, records, equipment, and place of business of a license
1430		-	holder and may investigate the character of the license holder's
1431		-	business to verify the accuracy of a return, statement, or report
1432		-	made, or, if no return is made by the license holder, to ascertain
1433		-	and determine the amount required to be paid.
1434		-	(c-1) The commission by rule shall develop a policy for
1435		-	auditing license holders. The department [bingo division] shall
1436		-	use audit risk analysis procedures established by the commission
1437		-	to:
1438		-	(1) annually identify which license holders are most
1439		-	at risk of violating this chapter or rules adopted under this
1440		-	chapter; and
1441		-	(2) develop a plan for auditing the identified license
1442		-	holders that includes:
1443		-	(A) a schedule for the audits of the identified
1444		-	license holders;
1445		-	(B) procedures to annually update the plan based
1446		-	on successive risk analyses; and
1447		-	(C) a completion date for each audit that is not
1448		-	later than the fifth anniversary of the date the license holder was
1449		-	identified as a candidate for audit.
1450		-	(c-2) The department [bingo division] shall provide to the
1451		-	commission a copy of the auditing plan developed under Subsection
1452		-	(c-1).
1453		-	(e) If the department issues a notice of alleged violation
1454		-	in accordance with Section 51.303 for a violation of [commission
1455		-	determines that a person is not complying with] this chapter, the
1456		-	department [commission] shall notify the attorney general and the
1457		-	governing body of the appropriate political subdivision.
1458		-	SECTION 75. Section 2001.601, Occupations Code, is amended
1459		-	to read as follows:
1460		-	Sec. 2001.601. IMPOSITION OF PENALTY. The commission or
1461		-	the department may impose an administrative penalty in accordance
1462		-	with Subchapter F, Chapter 51, against a person who violates this
1463		-	chapter or a rule adopted or order issued [adopted] by the
1464		-	commission or the department under this chapter.
1465		-	SECTION 76. Section 2001.602, Occupations Code, is amended
1466		-	to read as follows:
1467		-	Sec. 2001.602. AMOUNT OF PENALTY. [(a)] The amount of the
1468		-	administrative penalty may not exceed $1,000 for each violation.
1469		-	Each day a violation continues or occurs may be considered a
1470		-	separate violation for purposes of imposing a penalty.
1471		-	[(b) In determining the amount of the penalty, the director
1472		-	shall consider:
1473		-	[(1) the seriousness of the violation, including the
1474		-	nature, circumstances, extent, and gravity of the prohibited acts;
1475		-	[(2) the history of previous violations;
1476		-	[(3) the amount necessary to deter future violations;
1477		-	[(4) efforts to correct the violation; and
1478		-	[(5) any other matter that justice may require.]
1479		-	SECTION 77. Section 2001.654(a), Occupations Code, is
1480		-	amended to read as follows:
1481		-	(a) If the officer responsible for certifying a petition
1482		-	determines that a petition is valid, the governing body shall:
1483		-	(1) order that an election be held in the appropriate
1484		-	political subdivision on a date not later than the 60th day after
1485		-	the date of the officer's certification; and
1486		-	(2) notify the department [commission] by certified
1487		-	mail, return receipt requested, that an election has been ordered.
1488		-	SECTION 78. Section 2001.656(d), Occupations Code, is
1489		-	amended to read as follows:
1490		-	(d) The governing body of a political subdivision in which a
1491		-	bingo election has been held shall not later than the 14th day after
1492		-	the date of the election give written notification to the
1493		-	department [commission] of the results of the election. If as a
1494		-	result of the election bingo is legalized in the political
1495		-	subdivision, the governing body shall furnish the department
1496		-	[commission] with a map prepared by the governing body indicating
1497		-	the boundaries of the political subdivision in which bingo may be
1498		-	conducted.
1499		-	SECTION 79. The following provisions of the Government Code
	176	+	SECTION 12. Subchapter B, Chapter 2001, Occupations Code,
	177	+	is amended by adding Section 2001.0501 to read as follows:
	178	+	Sec. 2001.0501. ALLOCATION OF POWERS AND DUTIES. A power
	179	+	granted or duty assigned to the commission under this chapter is a
	180	+	power or duty of the executive director of the department, the
	181	+	director of bingo operations, the department, or the commission, as
	182	+	established by commission rule.
	183	+	SECTION 13. The following provisions of the Government Code
1500	184		are repealed:
1501	185		(1) Section 411.108(a-1);
1502	186		(2) Section 467.021(c);
1503	187		(3) Section 467.031; and
1504	188		(4) Section 467.033.
1505		-	SECTION 80. The following provisions of the Occupations
1506		-	Code are repealed:
1507		-	(1) Section 2001.052;
1508		-	(2) Section 2001.053;
1509		-	(3) Section 2001.0541;
1510		-	(4) Sections 2001.056(c) and (d);
1511		-	(5) Section 2001.058;
1512		-	(6) Section 2001.059;
1513		-	(7) Section 2001.061;
1514		-	(8) Section 2001.158(e);
1515		-	(9) Section 2001.205(c);
1516		-	(10) Section 2001.209(c);
1517		-	(11) Section 2001.302;
1518		-	(12) Section 2001.304;
1519		-	(13) Section 2001.306(f);
1520		-	(14) Section 2001.308;
1521		-	(15) Section 2001.315;
1522		-	(16) Section 2001.352;
1523		-	(17) Section 2001.353;
1524		-	(18) Section 2001.354;
1525		-	(19) Section 2001.356;
1526		-	(20) Section 2001.357;
1527		-	(21) Section 2001.358;
1528		-	(22) Section 2001.559;
1529		-	(23) Section 2001.603;
1530		-	(24) Section 2001.604;
1531		-	(25) Section 2001.605;
1532		-	(26) Section 2001.606;
1533		-	(27) Section 2001.607;
1534		-	(28) Section 2001.608;
1535		-	(29) Section 2001.609;
1536		-	(30) Section 2001.610; and
1537		-	(31) Section 2001.611.
1538		-	SECTION 81. (a) On September 1, 2026:
	189	+	SECTION 14. (a) On September 1, 2025:
1539	190		(1) all functions and activities performed by the
1540	191		Texas Lottery Commission relating to the regulation of bingo
1541	192		operations under Chapter 2001, Occupations Code, immediately
1542	193		before that date are transferred to the Texas Department of
1543	194		Licensing and Regulation;
1544	195		(2) a rule, policy, procedure, decision, or form
1545	196		adopted by the Texas Lottery Commission relating to Chapter 2001,
1546	197		Occupations Code, is a rule, policy, procedure, decision, or form
1547	198		of the Texas Commission of Licensing and Regulation or the Texas
1548	199		Department of Licensing and Regulation, as applicable, and remains
1549	200		in effect until amended or replaced by that commission or
1550	201		department unless the rule, policy, procedure, decision, or form
1551	202		conflicts with the changes in law made by this Act;
1552	203		(3) unless the context clearly indicates otherwise, a
1553	204		reference to the Texas Lottery Commission in a law or
1554	205		administrative rule that relates to Chapter 2001, Occupations Code,
1555	206		means the Texas Commission of Licensing and Regulation or the Texas
1556	207		Department of Licensing and Regulation, as applicable;
1557	208		(4) a complaint, investigation, or other proceeding
1558	209		before the Texas Lottery Commission that is related to Chapter
1559	210		2001, Occupations Code, is transferred without change in status to
1560	211		the Texas Department of Licensing and Regulation, and the Texas
1561	212		Department of Licensing and Regulation assumes, as appropriate and
1562	213		without a change in status, the position of the Texas Lottery
1563	214		Commission in an action or proceeding to which the Texas Lottery
1564	215		Commission is a party;
1565	216		(5) a license, permit, certification, or registration
1566	217		in effect that was issued by the Texas Lottery Commission under
1567	218		Chapter 2001, Occupations Code, is continued in effect as a
1568	219		license, permit, certification, or registration of the Texas
1569	220		Department of Licensing and Regulation;
1570	221		(6) all money, contracts, leases, property, and
1571	222		obligations of the Texas Lottery Commission relating to Chapter
1572	223		2001, Occupations Code, are transferred to the Texas Department of
1573	224		Licensing and Regulation; and
1574	225		(7) the unexpended and unobligated balance of any
1575	226		money appropriated by the legislature for the Texas Lottery
1576	227		Commission related to Chapter 2001, Occupations Code, is
1577	228		transferred to the Texas Department of Licensing and Regulation.
1578		-	(b) On September 1, ~~2026~~, all full-time equivalent employee
	229	+	(b) On September 1, 2025, all full-time equivalent employee
1579	230		positions at the Texas Lottery Commission that primarily concern
1580	231		the administration, auditing, accounting, enforcement, or other
1581	232		direct and indirect support of Chapter 2001, Occupations Code,
1582	233		become positions at the Texas Department of Licensing and
1583	234		Regulation. When filling the positions, the Texas Department of
1584	235		Licensing and Regulation shall give first consideration to an
1585	236		applicant who, as of August 31, 2025, was an employee at the Texas
1586	237		Lottery Commission primarily involved in administering or
1587	238		enforcing Chapter 2001, Occupations Code.
1588		-	(c) Not later than June 1, ~~2026~~, the Texas Lottery
	239	+	(c) Not later than June 1, 2025, the Texas Lottery
1589	240		Commission shall grant the Texas Department of Licensing and
1590	241		Regulation inquiry-only security access to:
1591	242		(1) all licensing, enforcement, and examination
1592	243		software or computer systems used by the Texas Lottery Commission
1593	244		in administering or enforcing Chapter 2001, Occupations Code; and
1594	245		(2) the uniform statewide accounting system, the state
1595	246		property accounting system, the uniform statewide payroll system,
1596	247		and the human resources information system for the Texas Lottery
1597	248		Commission.
1598		-	(d) Before September 1, ~~2026~~, the Texas Lottery Commission
	249	+	(d) Before September 1, 2025, the Texas Lottery Commission
1599	250		may agree with the Texas Department of Licensing and Regulation to
1600	251		transfer any property of the Texas Lottery Commission to the Texas
1601	252		Department of Licensing and Regulation to implement the transfers
1602	253		required by this Act.
1603	254		(e) The Texas Department of Licensing and Regulation and the
1604	255		Texas Lottery Commission shall coordinate implementation of this
1605	256		section. The Texas Lottery Commission shall cooperate with the
1606	257		Texas Department of Licensing and Regulation in transferring all
1607	258		data and records necessary to implement the transfers required by
1608	259		this Act.
1609		-	(f) Before July 15, ~~2026~~, the Texas Lottery Commission and
	260	+	(f) Before July 15, 2025, the Texas Lottery Commission and
1610	261		the Texas Department of Licensing and Regulation shall develop and
1611	262		enter into a memorandum of understanding regarding the transfers
1612		-	required by this Act. The memorandum must include a transition ~~plan~~
1613		-	with a timetable and specific steps and deadlines required to
	263	+	required by this Act. The memorandum must include a transition
	264	+	plan with a timetable and specific steps and deadlines required to
1614	265		complete the transfer.
1615		-	(g) Not later than December 1, ~~2026~~, a manufacturer of bingo
	266	+	(g) Not later than December 1, 2025, a manufacturer of bingo
1616	267		equipment or supplies that submitted to the Texas Lottery
1617	268		Commission a bond as required under Section 2001.204, Occupations
1618		-	Code, before September 1, ~~2026~~, that is in effect on the effective
	269	+	Code, before September 1, 2025, that is in effect on the effective
1619	270		date of this Act must amend the bond to name the Texas Department of
1620	271		Licensing and Regulation as the payee for the bond.
1621		-	SECTION 82. Not later than December 1, 2028, the Sunset
1622		-	Advisory Commission shall submit to the governor, the lieutenant
1623		-	governor, the speaker of the house of representatives, and each
1624		-	standing committee of the legislature with primary jurisdiction
1625		-	over the regulation of charitable bingo in this state a report on
1626		-	the transfer under this Act of the regulation of charitable bingo
1627		-	from the Texas Lottery Commission to the Texas Commission of
1628		-	Licensing and Regulation.
1629		-	SECTION 83. The changes in law made by this Act to Chapter
1630		-	2001, Occupations Code, apply only to a tax or fee charged or
1631		-	penalty imposed on or after September 1, 2026. A tax or fee charged
1632		-	or penalty imposed before September 1, 2026, is governed by the law
1633		-	in effect immediately before that date, and the former law is
1634		-	continued in effect for that purpose.
1635		-	SECTION 84. Not later than March 1, 2027, the Texas
	272	+	SECTION 15. The changes in law made by this Act to Chapter
	273	+	2001, Occupations Code, apply only to a tax or fee charged on or
	274	+	after September 1, 2025. A tax or fee charged before September 1,
	275	+	2025, is governed by the law in effect immediately before that date,
	276	+	and the former law is continued in effect for that purpose.
	277	+	SECTION 16. Not later than March 1, 2026, the Texas
1636	278		Commission of Licensing and Regulation shall adopt the rules
1637	279		necessary to implement the changes in law made by this Act.
1638		-	SECTION 85. (a) Except as provided by Subsection (b) of
1639		-	this section, this Act takes effect immediately if it receives a
1640		-	vote of two-thirds of all the members elected to each house, as
1641		-	provided by Section 39, Article III, Texas Constitution. If this
1642		-	Act does not receive the vote necessary for immediate effect, this
1643		-	Act takes effect September 1, 2025.
1644		-	(b) Sections 1 through 80 of this Act take effect September
1645		-	1, 2026.
1646		-	* * * * *
	280	+	SECTION 17. This Act takes effect immediately if it
	281	+	receives a vote of two-thirds of all the members elected to each
	282	+	house, as provided by Section 39, Article III, Texas Constitution.
	283	+	If this Act does not receive the vote necessary for immediate
	284	+	effect, this Act takes effect September 1, 2025.