By: Middleton, Hall S.B. No. 1721
A BILL TO BE ENTITLED
AN ACT
relating to the transfer of the licensing and regulation of
charitable bingo to the Texas Commission of Licensing and
Regulation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 411.093(a), Government Code, is amended
to read as follows:
(a) The Texas Department of Licensing and Regulation is
entitled to obtain criminal history record information as provided
by Subsection (b) that relates to:
(1) an applicant for or the holder of:
(A) a driver education instructor license under
Chapter 1001, Education Code;
(B) a license under Chapter 202, Occupations
Code;
(C) a license under Chapter 401, Occupations
Code;
(D) a license under Chapter 402, Occupations
Code; or
(E) an instructor license or motorcycle school
license under Chapter 662, Transportation Code;
(2) a person who is:
(A) an applicant for or the holder of a license
under Chapter 91, Labor Code; or
(B) a controlling person, as defined by Chapter
91, Labor Code, of an entity described by Paragraph (A); [or]
(3) a person who:
(A) is an applicant for or the holder of a license
under Chapter 455, Occupations Code; or
(B) has an interest described under Section
455.1525(e), Occupations Code, in an entity described by Paragraph
(A); or
(4) a person who:
(A) is an applicant for or the holder of a license
under Chapter 2001, Occupations Code; or
(B) has an interest described under Section
2001.3025(e), Occupations Code, in an entity described by Paragraph
(A).
SECTION 2. Section 411.108(a-2), Government Code, is
amended to read as follows:
(a-2) Subject to Sections 411.087, 466.201, and 467.036(b)
[of this code and Section 2001.3025, Occupations Code,] and
consistent with the public policy of this state, the Texas Lottery
Commission is entitled to:
(1) obtain through the Federal Bureau of Investigation
criminal history record information maintained or indexed by that
bureau that pertains to a person described by Subsection (a) [or
(a-1)]; and
(2) obtain from the department or any other criminal
justice agency in this state criminal history record information
maintained by the department or that criminal justice agency that
relates to a person described by Subsection (a) [or (a-1)].
SECTION 3. Sections 466.002(2) and (3), Government Code,
are amended to read as follows:
(2) "Director" means the lottery director [of the
division].
(3) "Division" means the commission or a lottery
division established by the commission [under Chapter 467].
SECTION 4. Section 467.002, Government Code, is amended to
read as follows:
Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
subject to review under Chapter 325 (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the commission
is abolished and this chapter and[,] Chapter 466 [of this code, and
Chapter 2001, Occupations Code,] expire September 1, 2025.
SECTION 5. Sections 467.024(a) and (c), Government Code,
are amended to read as follows:
(a) An individual is not eligible to be an appointed member
of the commission if the individual:
(1) is registered, certified, or licensed by a
regulatory agency in the field of [bingo or] lottery;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization regulated by the commission or receiving funds from
the commission;
(3) is employed by or participates in the management
of a business entity or other organization regulated by or
receiving funds from the commission;
(4) uses or receives a substantial amount of tangible
goods, services, or funds from the commission, other than
compensation or reimbursement authorized by law for commission
membership, attendance, or expenses;
(5) is an officer, employee, or paid consultant of a
Texas trade association in the field of [bingo or] lottery;
(6) is required to register as a lobbyist under
Chapter 305 because of the person's activities for compensation on
behalf of a profession related to the operation of the commission;
(7) is married to an individual described by
Subdivisions (2)-(6);
(8) has been convicted of a felony or of any crime
involving moral turpitude; or
(9) is not a citizen of the United States.
(c) A person may not be a commission employee employed in a
"bona fide executive, administrative, or professional capacity,"
as that phrase is used for purposes of establishing an exemption to
the overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of [bingo or]
lottery; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of [bingo or]
lottery.
SECTION 6. Section 467.025(a), Government Code, is amended
to read as follows:
(a) A commission member may not:
(1) accept any employment or remuneration from[:
[(A)] a person that has a significant financial
interest in the lottery[; or
[(B) a bingo commercial lessor, bingo
distributor, or bingo manufacturer];
(2) play any lottery [or bingo] game conducted in this
state;
(3) accept or be entitled to accept any part of the
winnings to be paid from a lottery [or bingo] game conducted in this
state;
(4) use the member's official authority to affect the
result of an election or nomination for public office; or
(5) directly or indirectly coerce, attempt to coerce,
command, or advise a person to pay, lend, or contribute anything of
value to another person for political purposes.
SECTION 7. Section 467.035(a), Government Code, is amended
to read as follows:
(a) The commission may not employ or continue to employ a
person who owns a financial interest in[:
[(1) a bingo commercial lessor, bingo distributor, or
bingo manufacturer; or
[(2)] a lottery sales agency or a lottery operator.
SECTION 8. Sections 467.101(a) and (c), Government Code,
are amended to read as follows:
(a) The commission has broad authority and shall exercise
strict control and close supervision over all activities authorized
and conducted in this state under[:
[(1) Chapter 2001, Occupations Code; and
[(2)] Chapter 466 [of this code].
(c) The commission also has the powers and duties granted
under[:
[(1) Chapter 2001, Occupations Code; and
[(2)] Chapter 466 [of this code].
SECTION 9. Section 467.111(f), Government Code, is amended
to read as follows:
(f) The commission shall prepare a report on the trends and
issues identified under Subsection (e) and make the report
available to the public. The commission shall address the
identified trends and issues, including trends and issues related
to the regulation of lottery operations under Chapter 466 [and of
bingo under Chapter 2001, Occupations Code].
SECTION 10. Section 572.003(b), Government Code, is amended
to read as follows:
(b) The term means:
(1) the banking commissioner of the Texas Department
of Banking [Commissioner of The Banking Department of Texas];
(2) the administrative director of the Office of Court
Administration of the Texas Judicial System;
(3) the chief executive of the Office of Public
Utility Counsel;
(4) the executive director of the State Bar of Texas;
(5) the lottery director [of the lottery division] of
the Texas Lottery Commission;
(6) the deputy in charge of the department of security
in a [the] lottery division of the Texas Lottery Commission;
(7) the executive director of the [bingo division of
the] Texas Department of Licensing and Regulation [Lottery
Commission]; or
(8) the secretary of state.
SECTION 11. Section 2001.002, Occupations Code, is amended
by amending Subdivisions (8) and (25-a) and adding Subdivision
(8-a) to read as follows:
(8) "Commission" means the Texas [Lottery] Commission
of Licensing and Regulation.
(8-a) "Department" means the Texas Department of
Licensing and Regulation.
(25-a) "Regular license" means a license to conduct
bingo issued by the department [commission] under Subchapter C that
is not a temporary license.
SECTION 12. Section 2001.003, Occupations Code, is amended
to read as follows:
Sec. 2001.003. REGULATORY FUNDING FROM LICENSE FEES AND
BINGO PRIZE FEES. It is the intent of the legislature that the
funding necessary for the administration of this chapter by the
department [commission] be collected by the department
[commission] from commercial lessor, manufacturer, and distributor
license fees and money paid to the department [commission] by bingo
players as bingo prize fees.
SECTION 13. Section 2001.051, Occupations Code, is amended
to read as follows:
Sec. 2001.051. ADMINISTRATION AND PURPOSE OF CHAPTER
[CONTROL AND SUPERVISION OF BINGO; BINGO DIVISION]. (a) The
department [commission] shall administer this chapter.
(b) The purpose of this chapter is to ensure [commission has
broad authority and shall exercise strict control and close
supervision over] all bingo conducted in this state [so that bingo]
is fairly conducted and the proceeds derived from bingo are used for
an authorized purpose.
(c) This chapter does not limit the general powers of the
commission or the department under Chapter 51 [The commission shall
execute its authority through a bingo division established by the
commission to administer this chapter].
SECTION 14. Section 2001.057, Occupations Code, is amended
to read as follows:
Sec. 2001.057. BINGO ADVISORY BOARD [COMMITTEE]. (a) The
commission may establish [appoint] a bingo advisory board to advise
the commission and the department on matters related to this
state's bingo industry [committee consisting of nine members].
(b) The advisory board must consist of nine [commission
shall appoint] members appointed by the presiding officer of the
commission, on approval of the commission, and represent
[representing] a balance of interests including representatives
of:
(1) the public;
(2) charities that operate bingo games; and
(3) commercial and charity lessors that participate in
the bingo industry.
(c) The advisory board members serve staggered six-year
terms [A committee member serves at the pleasure of the
commission].
(d) An advisory board [A committee] member is not entitled
to receive compensation for serving as a member. An advisory board
[A committee] member is entitled to reimbursement for reasonable
expenses incurred in performing duties as a member.
(e) If a vacancy occurs on the advisory board, the presiding
officer of the commission, on approval of the commission, shall
appoint a replacement who meets the qualifications for the vacant
position to serve for the remainder of the term [The committee may:
[(1) advise the commission on the needs and problems
of the state's bingo industry;
[(2) comment on rules involving bingo during their
development and before final adoption unless an emergency requires
immediate action by the commission;
[(3) report annually to the commission on the
committee's activities; and
[(4) perform other duties as determined by the
commission].
(f) The presiding officer of the commission, on approval of
the commission, shall designate a member of the advisory board to
serve as the presiding officer of the advisory board for two years.
The presiding officer of the advisory board may vote on any matter
before the advisory board [The committee may meet quarterly or at
the commission's request].
(g) The commission may adopt rules to govern the operations
of the advisory board [committee].
SECTION 15. Sections 2001.060(a) and (c), Occupations Code,
are amended to read as follows:
(a) On or before June 1 of each even-numbered year, the
department [commission] shall prepare and deliver to the governor,
the lieutenant governor, the speaker of the house of
representatives, and the chairs of the standing committees of the
senate and house of representatives with primary jurisdiction over
charitable bingo a report stating for each of the preceding two
calendar years:
(1) the total amount of adjusted gross receipts
reported by licensed authorized organizations from their bingo
operations;
(2) the total amount of net proceeds reported by
licensed authorized organizations from their bingo operations; and
(3) a comparison of the amounts reported under
Subdivisions (1) and (2), including the percentage that the net
proceeds represents of the adjusted gross receipts.
(c) For purposes of Subsection (a), the department
[commission] shall determine the total amount of net proceeds in a
manner that does not reduce gross receipts by the amount of rent
paid for the rental of bingo premises by a licensed authorized
organization to another licensed authorized organization if the
other organization pays rent for the premises to a licensed
commercial lessor.
SECTION 16. Section 2001.101(a), Occupations Code, is
amended to read as follows:
(a) The department [commission] may license a person who is
an authorized organization eligible for a license to conduct bingo
if the person is:
(1) a religious society that has existed in this state
for at least three years;
(2) a nonprofit organization:
(A) whose predominant activities are for the
support of medical research or treatment programs; and
(B) that for at least three years:
(i) must have had a governing body or
officers elected by a vote of members or by a vote of delegates
elected by the members; or
(ii) must have been affiliated with a state
or national organization organized to perform the same purposes as
the nonprofit organization;
(3) a fraternal organization;
(4) a veterans organization that has existed in this
state for at least three years;
(5) a volunteer fire department that has existed in
this state for at least three years; or
(6) a volunteer emergency medical services provider
that has existed in this state for at least three years.
SECTION 17. Sections 2001.102(a) and (b), Occupations Code,
are amended to read as follows:
(a) An applicant for a license to conduct bingo must file
with the department [commission] an application on a form
prescribed by the department [commission].
(b) The application must include:
(1) the name and address of the applicant;
(2) the names and addresses of the applicant's
officers and directors;
(3) the address of the premises where and the time when
the applicant intends to conduct bingo under the license sought;
(4) the name and address of the licensed commercial
lessor of the premises, if the applicant intends to lease premises
to conduct bingo from a person other than an authorized
organization;
(5) a statement that the net proceeds of bingo will go
to one or more of the authorized charitable purposes under this
chapter;
(6) a designation of the applicant organization's
bingo chairperson under whom bingo will be conducted accompanied by
a statement signed by the chairperson stating that the chairperson
will be responsible for the conduct of bingo under the terms of the
license and this chapter;
(7) sufficient facts relating to the applicant's
incorporation and organization to enable the department
[commission] to determine whether the applicant is an authorized
organization;
(8) a copy of the applicant organization's most
recently filed Internal Revenue Service Form 990, if applicable;
(9) a letter of good standing from the applicant
organization's parent organization, if the organization receives
an exemption from federal income taxes as a member of a group of
organizations;
(10) copies of the applicant organization's organizing
instruments, including any bylaws, constitution, charter, and
articles of incorporation;
(11) verification of the applicant organization's good
standing with the secretary of state if the organization is
organized under the law of this state; and
(12) information necessary to conduct criminal
background checks on the applicant organization's officers and
directors.
SECTION 18. Sections 2001.103(a), (e), and (g), Occupations
Code, are amended to read as follows:
(a) An authorized organization may receive a temporary
license to conduct bingo by filing with the department [commission]
an application, on a form prescribed by the department
[commission].
(e) Notwithstanding any other provision of this subchapter,
the department [commission] shall issue to an authorized
organization that holds a regular license to conduct bingo 48
temporary licenses for each 12-month period that ends on an
anniversary of the date the regular license was issued or renewed.
Each unused temporary license issued to the license holder expires
on the anniversary of the date the temporary license was issued.
(g) Before using a temporary license issued under
Subsection (e), the license holder shall notify the department
[commission] in the manner the department [commission] prescribes
of the specific date, time, and location of the bingo occasion for
which the temporary license will be used. The department
[commission] shall provide to the license holder verification of
the department's [commission's] receipt of the notification. The
license holder shall maintain the verification in the records of
the authorized organization.
SECTION 19. Section 2001.105, Occupations Code, is amended
to read as follows:
Sec. 2001.105. LICENSE ISSUANCE OR RENEWAL. (a) The
department [commission] shall issue a temporary or regular license
or renew a regular license to conduct bingo if the department
[commission] determines that:
(1) the member or members of the applicant designated
in the application to conduct bingo are active members of the
applicant;
(2) the bingo is to be conducted in accordance with
this chapter;
(3) the proceeds of the bingo are to be disposed in
accordance with this chapter;
(4) the applicant has made and can demonstrate
significant progress toward the accomplishment of the purposes of
the organization during the 24 months preceding the date of
application for a license or regular license renewal;
(5) all persons who will conduct, promote, or
administer the proposed bingo are active members of the applicant
organization and all other persons who will assist in conducting,
promoting, or administering the proposed bingo games are persons
authorized to do so by Section 2001.411; and
(6) no person under whose name bingo will be conducted
and no person working at the proposed bingo has been convicted of a
gambling offense or criminal fraud.
(b) The department [commission] may not issue a license to
an authorized organization to conduct bingo if an officer or member
of the board of directors of the organization has been convicted of
criminal fraud or a gambling or gambling-related offense.
(c) A regular license to conduct bingo issued under this
subchapter expires on the second anniversary of the date of
issuance unless the commission or the department revokes or
suspends the license before that date.
SECTION 20. Section 2001.107(b), Occupations Code, is
amended to read as follows:
(b) A training program approved by the department
[commission] must include training related to:
(1) conducting bingo;
(2) administering and operating bingo; and
(3) promoting bingo.
SECTION 21. Section 2001.108, Occupations Code, is amended
to read as follows:
Sec. 2001.108. LICENSE AMENDMENT FOR CHANGE OF BINGO
PREMISES OR OCCASIONS. (a) A licensed authorized organization and
the licensed commercial lessor at which the organization conducts
or will conduct bingo may file a joint application with the
department [commission] to change the premises at which the
organization may conduct bingo or the times of the organization's
bingo occasions to allow the organization to conduct bingo at the
same time and premises that another licensed authorized
organization is licensed to conduct bingo if the other organization
has ceased, or will cease, conducting bingo at that time and
premises. The application must state whether the other
organization has ceased or will cease conducting bingo at that time
and premises because:
(1) the organization has abandoned or will abandon its
licensed time or premises; or
(2) the organization's lease has been or will be
terminated.
(b) If the other organization ceased or will cease
conducting bingo for the reason stated in Subsection (a)(1), the
department [commission] must act on the joint application filed
under Subsection (a) not later than the 14th day after the date the
application is filed with the department [commission].
(c) If the other organization ceased or will cease
conducting bingo for the reason stated in Subsection (a)(2), the
department [commission] must act on the joint application filed
under Subsection (a) not later than the 14th day after the date the
application is filed with the department [commission] or the date
on which the termination takes effect, whichever is later.
(d) If the department [commission] fails to act within the
time provided by Subsection (b) or (c), the licensed authorized
organization may act as if the change in premises or bingo occasions
has been approved by the department [commission] and may conduct
bingo at the new premises or during the new bingo occasion until the
department [commission] acts on the application.
(e) Notwithstanding Subsection (d), the department
[commission] may issue temporary licenses to one or more licensed
authorized organizations that conduct bingo at the same location as
an organization that has ceased or will cease to conduct bingo,
which are in addition to the number of temporary licenses each
organization is entitled to under another provision of this
chapter. The department [commission] is not required to act on a
joint application under Subsection (a) within the time provided by
this section if the number of additional temporary licenses is
sufficient to allow the other organizations at the location to
conduct bingo during the licensed times of the organization that
has ceased or will cease to conduct bingo.
SECTION 22. Section 2001.152(a), Occupations Code, is
amended to read as follows:
(a) The department [commission] may issue a commercial
lessor license only to:
(1) a licensed authorized organization that owns or
leases a premises where bingo is or will be conducted or an
association of licensed authorized organizations that jointly own
or lease premises where bingo is or will be conducted and that the
organization or association leases or offers for lease to one or
more other authorized organizations for the conduct of bingo;
(2) a person who leases premises to a single licensed
authorized organization that subleases or will sublease the
premises to one or more other licensed authorized organizations for
the conduct of bingo; or
(3) a person who leases premises for the total control
and exclusive use of only one licensed authorized organization as
that organization's primary business office.
SECTION 23. Section 2001.153(a), Occupations Code, is
amended to read as follows:
(a) The department [commission] may not issue a commercial
lessor license to a person unless the department [commission]
receives evidence the department [commission] considers adequate
that funds used by the person seeking the license to obtain the
premises, provide the premises with furniture, fixtures, or
equipment, renovate the premises, or provide utilities to the
premises are:
(1) the person's own funds; or
(2) the funds of another person, including loan
proceeds, that:
(A) were obtained in an arms-length transaction
that was commercially reasonable under the circumstances; and
(B) were not obtained under an expectation or
obligation that the person from whom the funds were obtained would
directly participate in, or have a legal interest in, rents
obtained under the license or revenues or profits from the conduct
of bingo on the premises.
SECTION 24. Section 2001.154(a), Occupations Code, is
amended to read as follows:
(a) The department [commission] may not issue a commercial
lessor license to or renew a commercial lessor license of:
(1) a person convicted of criminal fraud or a gambling
or gambling-related offense;
(2) a public officer who receives any consideration,
direct or indirect, as owner or lessor of premises offered for
conducting bingo;
(3) a person who loans money to an authorized
organization;
(4) a distributor or manufacturer;
(5) a person in which a person covered by Subdivision
(1), (2), (3), or (4) or a person married or related in the first
degree by consanguinity or affinity, as determined under Chapter
573, Government Code, to one of those persons has greater than a 10
percent proprietary, equitable, or credit interest or in which one
of those persons is active or employed;
(6) a foreign corporation or other foreign legal
entity;
(7) an individual who is not a resident of this state;
(8) a corporation or other legal entity owned or
controlled by:
(A) a foreign corporation; or
(B) an individual who is not a resident of this
state; or
(9) a corporation or other legal entity:
(A) whose shares are publicly traded; or
(B) owned or controlled by a corporation whose
shares are publicly traded.
SECTION 25. Section 2001.156(a), Occupations Code, is
amended to read as follows:
(a) An applicant for a commercial lessor license must file
with the department an [commission a written verified] application
on a form prescribed by the department [commission].
SECTION 26. Section 2001.157, Occupations Code, is amended
to read as follows:
Sec. 2001.157. SUPPLEMENTAL INFORMATION. At any time the
department [commission], the appropriate governing body, or the
attorney general may make a written request of a commercial lessor
to disclose:
(1) the cost of the premises and appraised value for
property tax purposes or annual net lease rent, whichever is
applicable;
(2) gross rentals received and itemized expenses for
the preceding calendar or fiscal year, if any;
(3) gross rentals, if any, derived from bingo during
the preceding calendar or fiscal year;
(4) the computation by which the proposed rental
schedule was determined;
(5) the number of occasions on which the lessor
anticipates receiving rent for bingo during the next year or
shorter period if applicable and the proposed rent for each of those
occasions;
(6) estimated gross rental income from all other
sources during the next year; and
(7) estimated expenses itemized for the current year
and the amount of each item allocated to bingo rentals.
SECTION 27. Sections 2001.159(a) and (b), Occupations Code,
are amended to read as follows:
(a) The department [commission] shall issue or renew a
commercial lessor license if the department [commission]
determines that:
(1) the applicant has paid the license fee as provided
by Section 2001.158;
(2) the applicant qualifies to be licensed under this
chapter;
(3) the rent to be charged is fair and reasonable;
(4) there is no diversion of the funds of the proposed
lessee from the lawful purposes under this chapter;
(5) the person whose signature or name appears in the
application is in all respects the real party in interest and is not
an undisclosed agent or trustee for the real party in interest; and
(6) the applicant will lease the premises for the
conduct of bingo in accordance with this chapter.
(b) The department [commission] shall issue a commercial
lessor license under this section for the period specified in the
license application or for a shorter period as the commission
determines.
SECTION 28. Sections 2001.160(a), (e), (f), and (g),
Occupations Code, are amended to read as follows:
(a) On approval by the department [commission], a licensed
commercial lessor may transfer a commercial lessor license if the
person to whom the license will be transferred otherwise meets the
requirements of this subchapter.
(e) Unless the department [commission] revokes or suspends
the license under this chapter, or an injunction is issued under
this section, a licensed authorized organization that conducts
bingo lawfully at premises under a license to which Subsection (d)
applies may continue conducting bingo at the premises after the
death or incapacity of the commercial lessor license holder.
(f) On the showing by the department [commission] of a cause
that would be sufficient for the commission or the department to
revoke or suspend a license under this chapter or an applicable
commission rule, a district court in the county for which a
commercial lessor license was issued or the department [commission]
by order may temporarily or permanently enjoin the conduct of bingo
at premises under a license to which Subsection (d) applies.
(g) The estate or guardian of an individual to whom
Subsection (d) applies shall notify the department [commission] not
later than one year after the date the individual dies or is
determined to be incapacitated by a court of this state. The estate
or guardian and the heirs or other appropriate person shall
promptly take all necessary steps to complete a transfer of the
license to the heirs or other appropriate person.
SECTION 29. Section 2001.161(c), Occupations Code, is
amended to read as follows:
(c) The department [commission] may issue a commercial
lessor license to a licensed authorized organization only for the
same premises where the organization is licensed to conduct bingo.
SECTION 30. Section 2001.203, Occupations Code, is amended
to read as follows:
Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An
applicant for a manufacturer's license must file with the
department [commission] an application on a form prescribed by the
department [commission].
(b) The application must include:
(1) the name and address of the applicant and the name
and address of each of its locations where bingo supplies or
equipment are manufactured;
(2) a full description of each type of bingo supply or
equipment that the applicant intends to manufacture or market in
this state and the brand name, if any, under which each item will be
sold;
(3) if the applicant:
(A) is not a corporation, the name and home
address of each owner; or
(B) is a corporation, the name and home address
of each officer and director and each person owning more than 10
percent of a class of stock in the corporation;
(4) if the applicant is a foreign corporation or other
foreign legal entity, the name, business name and address, and
address of its registered agent for service in this state;
(5) the name and address of each manufacturer,
supplier, and distributor in which the applicant has a financial
interest and the details of that financial interest, including any
indebtedness between the applicant and the manufacturer, supplier,
or distributor of $5,000 or more;
(6) information regarding whether the applicant or a
person required to be named in the application has been convicted in
this state or another state of criminal fraud or a gambling or
gambling-related offense;
(7) information regarding whether the applicant or a
person required to be named in the application is an owner, officer,
director, shareholder, agent, or employee of a licensed commercial
lessor or conducts, promotes, administers, or assists in
conducting, promoting, or administering bingo for which a license
is required by this chapter;
(8) information regarding whether the applicant or a
person required to be named in the application is a public officer
or public employee in this state;
(9) the name of each state in which the applicant is or
has been licensed to manufacture, distribute, or supply bingo
equipment or supplies, each license number, the period of time
licensed under each license, and whether a license has been
revoked, suspended, withdrawn, canceled, or surrendered and, if so,
the reasons for the action taken;
(10) information regarding whether the applicant or a
person required to be named in the application is or has been a
professional gambler or gambling promoter;
(11) the names and addresses of each manufacturer,
supplier, or distributor of bingo equipment or supplies in which
the applicant or a person required to be named in the application is
an owner, officer, shareholder, director, agent, or employee; and
(12) any other information the department
[commission] requests.
SECTION 31. Section 2001.204(a), Occupations Code, is
amended to read as follows:
(a) An applicant for a manufacturer's license must give the
department [commission] a cash bond or a bond in the amount of
$10,000 issued by a surety company chartered or authorized to do
business in this state.
SECTION 32. Section 2001.208, Occupations Code, is amended
to read as follows:
Sec. 2001.208. DISTRIBUTOR'S LICENSE APPLICATION. (a) An
applicant for a distributor's license must file with the department
[commission] an [executed verified] application on a form
prescribed by the department [commission].
(b) The application must include:
(1) the full name and address of the applicant;
(2) the name and address of each location operated by
the distributor from which bingo supplies or equipment are
distributed or at which bingo supplies or equipment are stored;
(3) if a noncorporate distributor, the name and home
address of each owner;
(4) if a corporate distributor, the name and home
address of each officer or director and of each person owning more
than 10 percent of a class of stock in the corporation;
(5) if a foreign corporation or other foreign legal
entity, the name, business name and address, and address of its
registered agent for service in this state;
(6) a full description of the type of bingo supply or
equipment that the applicant intends to store or distribute in this
state and the name of the manufacturer of each item and the brand
name, if any, under which the item will be sold or marketed;
(7) the name and address of a manufacturer, supplier,
or distributor in which the applicant has a financial interest and
the details of that financial interest, including an indebtedness
between the applicant and the manufacturer, supplier, or
distributor of $5,000 or more;
(8) information regarding whether the applicant or a
person required to be named in the application has been convicted in
this state or another state of criminal fraud or a gambling or
gambling-related offense;
(9) information regarding whether the applicant or a
person required to be named in the application is an owner, officer,
director, shareholder, agent, or employee of a licensed commercial
lessor or conducts, promotes, administers, or assists in
conducting, promoting, or administering bingo for which a license
is required under this chapter;
(10) information regarding whether the applicant or a
person required to be named in the application is a public officer
or public employee in this state;
(11) the name of each state in which the applicant is
or has been licensed to manufacture, distribute, or supply bingo
equipment or supplies, each license number, the period of time
licensed under each license, and whether a license was revoked,
suspended, withdrawn, canceled, or surrendered and, if so, the
reasons for the action taken;
(12) information regarding whether the applicant or a
person required to be named in the application is or has been a
professional gambler or gambling promoter;
(13) the name and address of each manufacturer,
supplier, or distributor of bingo equipment or supplies in which
the applicant or a person required to be named in the application is
an owner, officer, shareholder, director, agent, or employee; and
(14) any other information the department
[commission] requests.
SECTION 33. Sections 2001.211(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) An applicant for a manufacturer's or distributor's
license shall, during pendency of the application, notify the
department [commission] immediately of any change relating to a
fact stated in the application.
(b) If a change occurs after issuance of a manufacturer's or
distributor's license, the license holder shall report the change
to the department [commission] not later than the 14th day after the
date of the change.
(c) Not later than the 14th day after the date of the change,
a license holder shall notify the department [commission] of a
change in:
(1) the license holder's organization, structure, or
mode of operation;
(2) the identity of persons named or required to be
named in the application and the nature or extent of those persons'
interest; or
(3) any other facts stated in the application.
SECTION 34. Section 2001.212, Occupations Code, is amended
to read as follows:
Sec. 2001.212. DENIAL OF LICENSE. The commission or the
department may deny an application for or renewal of a license for a
cause that would permit or require the suspension or revocation of
the license.
SECTION 35. Section 2001.213, Occupations Code, is amended
to read as follows:
Sec. 2001.213. DEPARTMENT [COMMISSION] ACTION NOT
REQUIRED. If, for reasons beyond the control of the department
[commission], sufficient information is not available to allow the
department [commission] to determine the eligibility of an
applicant for a manufacturer's or distributor's license issued
under this chapter, the department [commission] is not required to
take action on the application until the applicant provides the
required information.
SECTION 36. Section 2001.214(a), Occupations Code, is
amended to read as follows:
(a) Except as provided by Subsection (b), a manufacturer's
or distributor's license is effective for one year unless revoked
or suspended by the commission or the department.
SECTION 37. Section 2001.216, Occupations Code, is amended
to read as follows:
Sec. 2001.216. EXAMINATION OF RECORDS. (a) The department
[commission] may examine the books and records of the holder of or
an applicant for a manufacturer's or distributor's license.
(b) The department [commission] may not disclose
information obtained during the examination except as necessary to
carry out this chapter.
SECTION 38. Sections 2001.218(b) and (c), Occupations Code,
are amended to read as follows:
(b) If a payment is not made when due, the seller shall
immediately notify the department [commission]. The department
[commission] shall notify all manufacturers and distributors
licensed in this state of the default.
(c) In the event of a default, a person may not sell or
transfer bingo equipment or supplies to the purchaser in default on
terms other than immediate payment on delivery until otherwise
authorized by the department [commission].
SECTION 39. The heading to Subchapter G, Chapter 2001,
Occupations Code, is amended to read as follows:
SUBCHAPTER G. GENERAL LICENSING PROVISIONS [RELATING TO COMMISSION
LICENSES]
SECTION 40. Section 2001.301, Occupations Code, is amended
to read as follows:
Sec. 2001.301. LICENSE DETERMINATION [INVESTIGATION].
Promptly after the filing of the application for a license under
this chapter, the department [commission] shall review
[investigate] the qualifications of each applicant and determine
whether the applicant meets the requirements for the license [the
merits of the application].
SECTION 41. Section 2001.3025, Occupations Code, is amended
to read as follows:
Sec. 2001.3025. [ACCESS TO] CRIMINAL HISTORY RECORD
INFORMATION REQUIREMENT. (a) The department shall require an
applicant for a license under this chapter to submit to the
department or to [commission is entitled to conduct an
investigation of and is entitled to obtain criminal history record
information maintained by] the Department of Public Safety a
complete and legible set of fingerprints on a form the department
prescribes for the purpose of obtaining criminal history record
information from the Department of Public Safety and[,] the Federal
Bureau of Investigation [identification division, or another law
enforcement agency to assist in the investigation of:
[(1) an applicant for or holder of a license issued
under this chapter;
[(2) a person required to be named in a license
application; or
[(3) an employee or other person who works or will work
for a license holder and who is required by another provision of
this chapter to undergo a criminal background check].
(b) The department may not issue a license to a person or
entity who does not comply with the requirement of Subsection (a).
(c) The department shall conduct a criminal history record
information check of each applicant for a license using
information:
(1) provided by the individual under this section; and
(2) made available to the department by the Department
of Public Safety, the Federal Bureau of Investigation, and any
other criminal justice agency under Chapter 411, Government Code.
(d) The department may:
(1) enter into an agreement with the Department of
Public Safety to administer a criminal history record information
check required under this section; and
(2) authorize the Department of Public Safety to
collect from each applicant the costs incurred by the Department of
Public Safety in conducting the criminal history record information
check.
(e) For purposes of this section, if the applicant for a
license is an entity, the applicant must submit fingerprints as
required by Subsection (a) for each individual who:
(1) personally or constructively holds, including as
the beneficiary of a trust:
(A) at least 10 percent of the entity's
outstanding stock; or
(B) more than $25,000 of the fair market value of
the entity;
(2) has the controlling interest in the entity;
(3) has a direct or indirect participating interest
through shares, stock, or otherwise, regardless of whether voting
rights are included, of more than 10 percent of the profits,
proceeds, or capital gains of the entity;
(4) is a member of the board of directors or other
governing body of the entity; or
(5) serves as:
(A) an elected officer of the entity; or
(B) a general manager of the entity.
(f) This section does not apply to a temporary license
issued under this chapter.
SECTION 42. Sections 2001.305(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) The department [commission] may not issue a license to
an applicant for an authorized organization license or a commercial
lessor license until the applicant has sent a copy of the license
application to the appropriate governing body.
(b) Except as provided by Section 2001.103(i), immediately
after issuing a license, the department [commission] shall send a
copy of the license to the appropriate governing body. The
governing body shall file the copy of the license in a central file
containing licenses issued under this chapter.
(c) Except as provided by Section 2001.103(i), not later
than the 10th day after the date a license is issued, the department
[commission] shall give written notice of the issuance of the
license to:
(1) the police department of the municipality in which
bingo will be conducted, if bingo is to be conducted in a
municipality; or
(2) the sheriff of the county in which bingo will be
conducted, if bingo is to be conducted outside a municipality.
SECTION 43. Sections 2001.306(a) and (d), Occupations Code,
are amended to read as follows:
(a) A license issued under this chapter may be amended on
application to the department [commission] and on payment of a fee
in the amount required by the commission if the subject matter of
the proposed amendment could properly have been included in the
original license.
(d) The holder of a license to conduct bingo shall notify
the department [commission] before changing the time or date of a
game. The license holder may provide notice to the department
[commission] regarding the change by use of telephone or facsimile.
SECTION 44. Section 2001.311, Occupations Code, is amended
to read as follows:
Sec. 2001.311. RIGHTS NOT VESTED. The issuance of a license
[or temporary authorization] by the department [commission] does
not grant a vested right in the license[, the temporary
authorization,] or the privileges conferred.
SECTION 45. Sections 2001.313(a), (b-1), (c), (e), (f), and
(g), Occupations Code, are amended to read as follows:
(a) To minimize duplicate criminal history background
checks by the department [commission] and the costs incurred by
organizations and individuals, the department [commission] shall
maintain a registry of individuals on whom the department
[commission] has conducted a criminal history background check and
who are approved to be involved in the conduct of bingo or to act as
a bingo operator.
(b-1) An individual's listing on the registry expires on the
third anniversary of the date the individual was initially included
on the registry. The individual may renew the listing before the
expiration date. If the individual fails to renew the listing, the
department [commission] shall remove the individual's name from the
registry. An individual whose name is removed from the registry may
reapply for listing on the registry.
(c) The department [commission] shall make the registry
information available to the public by publishing it on the
department's [commission's] website [and by responding to
telephone, e-mail, and facsimile requests]. This subsection does
not require the department [commission] to disclose information
that is confidential by law.
(e) The department [commission] may refuse to add an
individual's name to, or remove an individual's name from, the
registry established by this section if, after notice and, if
requested by the individual, a hearing, the individual is finally
determined to have:
(1) been convicted of an offense listed under Section
2001.105(b);
(2) converted bingo equipment in a premises to an
improper use;
(3) converted funds that are in, or that should have
been in, the bingo account of any licensed authorized organization;
(4) taken any action, individually or in concert with
another person, that affects the integrity of any bingo game to
which this chapter applies;
(5) acted as an operator, manager, cashier, usher,
caller, bingo chairperson, bookkeeper, or salesperson for a
licensed authorized organization without being listed on the
registry established under this section;
(6) failed to provide a complete application; or
(7) participated in any violation of this chapter or
rules adopted by the commission for the administration of this
chapter.
(f) A licensed authorized organization shall report to the
department [commission or its designee] the discovery of any
conduct on the part of an individual registered or required to be
registered under this section where there is substantial basis for
believing that the conduct would constitute grounds for removal of
the individual's name from, or refusal to add the individual's name
to, the registry established by this section. A statement made in
good faith to the department [commission] or to an adjudicative
body in connection with any such report may not be the basis for an
action for defamation of character.
(g) An individual who has been finally determined to have
taken action prohibited by Subsection (e)(2), (3), (4), (5), (6),
or (7) cannot be listed on the registry of approved bingo workers
and cannot work as a bingo worker for one year from the date of such
determination. Upon expiration of the one-year period, the
individual is eligible for listing on the registry provided a
licensee subject to this chapter makes application to list the
individual. In such event, the department [commission] shall take
into consideration the facts and circumstances that occurred that
led to the applicable action under Subsections (e)(2)-(7) in
deciding whether to list the individual on the registry.
SECTION 46. Sections 2001.314(a) and (b), Occupations Code,
are amended to read as follows:
(a) The commission by rule may require an individual listed
in the registry maintained under Section 2001.313 to wear an
identification card to identify the individual to license holders,
bingo players, and department [commission] staff while the
individual is on duty during the conduct of bingo. The commission
by rule shall prescribe the form and content of the card.
(b) The department [commission] shall provide the
identification card and shall provide a form to be completed by an
individual that allows the individual to prepare the identification
card. The commission may set [collect] a reasonable fee for the
individual to pay to the department [charge] to cover the cost of
providing the card or form.
SECTION 47. Section 2001.316, Occupations Code, is amended
to read as follows:
Sec. 2001.316. DELIVERY OF DEPARTMENT [COMMISSION] NOTICE.
If notice under this chapter is required to be given to an
authorized organization, the department [commission] shall send
the notice to the bingo chairperson of the authorized organization
and to the appropriate commercial lessor, if applicable.
SECTION 48. Section 2001.351, Occupations Code, is amended
to read as follows:
Sec. 2001.351. DENIAL, REVOCATION, AND SUSPENSION OF
LICENSE. The commission or the department may deny, revoke, or
suspend in accordance with Subchapter G, Chapter 51, [an
application for] a license or renewal of a license issued under this
chapter for a violation of [cause that would permit or require the
suspension or revocation of a license issued under] this chapter or
a rule or order of the commission or the department.
SECTION 49. Sections 2001.355(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) The department [commission] may temporarily suspend a
license issued under this chapter for failure to comply with this
chapter or a commission rule.
(b) Before temporarily suspending a license, the department
[director of bingo operations] must follow any prehearing rules
adopted by the commission to determine whether [if] the license
holder's continued operation may constitute:
(1) an immediate threat to the health, safety,
[morals,] or welfare of the public; or
(2) a financial loss to this state, which includes a
license holder's failure to remit prize fee payments under Section
2001.502 to the department [commission] as required by that
section.
(c) An order of temporary suspension issued under this
section must comply with the procedural requirements for an
emergency order issued under Section 51.3511 [Chapter 2001,
Government Code, does not apply to the director of bingo operations
or to the commission in the enforcement and administration of a
temporary suspension under this section].
SECTION 50. Section 2001.403(b), Occupations Code, is
amended to read as follows:
(b) This section does not apply if more than one premises
lawfully exists under a common roof or over a common foundation
under a license application filed [with the commission] on or
before May 23, 1997. The department [commission] shall renew a
license at the premises that is otherwise in compliance with this
chapter.
SECTION 51. Section 2001.407(f), Occupations Code, is
amended to read as follows:
(f) With the prior written consent of the department
[commission], a licensed authorized organization may make an
occasional sale of bingo cards or of a used bingo flash board or
blower to another licensed authorized organization.
SECTION 52. Section 2001.411(e), Occupations Code, is
amended to read as follows:
(e) The commission may not prohibit an operator responsible
for conducting, promoting, or administering bingo from acting as a
bingo caller for a licensed authorized organization during a bingo
occasion. This subsection does not relieve the operator of the duty
to be available to a department [commission] employee or bingo
player if required by this chapter.
SECTION 53. Section 2001.415, Occupations Code, is amended
to read as follows:
Sec. 2001.415. ADVERTISEMENTS. (a) A person other than a
licensed authorized organization, licensed commercial lessor, or
the department [commission] may not advertise bingo.
(b) A licensed authorized organization, licensed commercial
lessor, or the department [commission] may include in an
advertisement or promotion the amount of a prize or series of prizes
offered at a bingo occasion.
SECTION 54. Sections 2001.437(a) and (b), Occupations Code,
are amended to read as follows:
(a) If the unit accounting agreement of a unit states that a
unit manager is responsible for compliance with commission rules
and this chapter, the unit manager is responsible for:
(1) the filing of one quarterly report for the unit on
a form prescribed by the department [commission]; and
(2) the payment of fees and the maintenance of the
bingo inventory and financial records of the unit.
(b) A unit with a unit manager shall notify the department
[commission] of the name of the unit manager and immediately notify
the department [commission] of any change of unit manager.
SECTION 55. Sections 2001.438(b) and (d), Occupations Code,
are amended to read as follows:
(b) The unit shall designate with the department
[commission] an agent who will be responsible for providing the
department [commission] access to all inventory and financial
records of the unit on request of the department [commission].
(d) The unit shall immediately notify the department
[commission] of any change in the agent designated under Subsection
(b).
SECTION 56. Section 2001.439(c), Occupations Code, is
amended to read as follows:
(c) The commission may prohibit a person who serves as a
designated agent that is listed on a license under this chapter,
including having been approved by the department [commission] to
work in the bingo operations of a licensed authorized organization
or as an operator, from holding or being listed on any license or
from being approved to work in the bingo operations of any licensed
authorized organization or to serve as an operator if the person has
failed to comply with the duties required of the person as a unit
manager or designated agent.
SECTION 57. Sections 2001.451(c), (h), (i), (j), and (k),
Occupations Code, are amended to read as follows:
(c) A licensed authorized organization may transfer money
from its general fund or other account to the organization's bingo
account or to the bingo account of a unit of which the organization
is a member under Subchapter I-1, if applicable, if:
(1) the balance in the bingo account to which the funds
are transferred is less than the maximum amount permitted by this
section; and
(2) the organization notifies the department
[commission] of the transfer not later than the 14th day after the
date of the transfer.
(h) Except as provided by Subsection (j), a licensed
authorized organization or a unit of licensed authorized
organizations may retain operating capital in the organization's or
unit's bingo account in an amount that:
(1) is equal to the organization's or unit's actual
average bingo expenses per quarter based on the preceding license
period, excluding prizes paid; and
(2) does not exceed a total of $50,000 for a single
organization or $50,000 for each member of a unit unless:
(A) the commission by rule establishes a higher
amount for all organizations or units or one or more classes of
organizations or units; or
(B) the department [bingo operations director],
on request, raises the operating capital limit for one organization
or unit as necessary to facilitate the operation of the
organization or unit.
(i) Prize fees are not included in the calculation of
operating capital under Subsection (h) if the prize fees are:
(1) held in escrow for remittance to:
(A) the department [commission]; or
(B) a county or municipality; or
(2) retained by a licensed authorized organization.
(j) The commission shall adopt rules allowing a licensed
authorized organization to retain a maximum amount of operating
capital in the bingo account in excess of the amount provided by
Subsection (h) if the organization:
(1) has conducted bingo for less than one year;
(2) experiences circumstances beyond the control of
the organization, including force majeure, that necessitate an
increase in operating capital; or
(3) provides to the department [commission] a credible
business plan for the conduct of bingo or for the organization's
existing or planned charitable purposes that an increase in
operating capital will reasonably further.
(k) A licensed authorized organization may apply to the
department [commission] for a waiver of the requirements of this
section and Section 2001.457. The department [commission] may
grant the waiver on a showing of good cause by the organization that
compliance with this section and Section 2001.457 is detrimental to
the organization's existing or planned charitable purposes. An
organization applying for a waiver establishes good cause by
providing to the department [commission]:
(1) credible evidence of circumstances beyond the
control of the organization, including force majeure; or
(2) a credible business plan for the organization's
conduct of bingo or the organization's existing or planned
charitable purposes.
SECTION 58. Section 2001.457(b), Occupations Code, is
amended to read as follows:
(b) If a licensed authorized organization fails to meet the
requirements of Subsection (a) for a quarter, the department
[commission] in applying appropriate sanctions shall consider
whether, taking into account the amount required to be disbursed
during that quarter and the three preceding quarters, the
organization has disbursed a total amount sufficient to have met
the disbursement requirement for that quarter and the three
preceding quarters combined.
SECTION 59. Sections 2001.502(a) and (b), Occupations Code,
are amended to read as follows:
(a) A licensed authorized organization or unit as defined by
Section 2001.431 shall:
(1) collect from a person who wins a cash bingo prize
of more than $5 a fee in the amount of five percent of the amount of
the prize; and
(2) except as otherwise provided by this section,
remit to the department [commission] the amount of the fee
collected under Subdivision (1).
(b) Notwithstanding Subsection (a)(2), each quarter, a
licensed authorized organization or unit that collects a prize fee
under Subsection (a) for a bingo game conducted in a county or
municipality that was entitled to receive a portion of a bingo prize
fee as of January 1, 2019, shall remit 50 percent of the amount
collected as the prize fee to the department [commission] and shall
remit or deposit the remainder of the amount collected as the prize
fee as follows:
(1) if the county in which the bingo game is conducted
voted before November 1, 2019, to impose the prize fee and the
location at which the bingo game is conducted:
(A) is not within the boundaries of a
municipality, remit 50 percent of the amount collected as the prize
fee to the county; or
(B) is within the boundaries of a municipality
that:
(i) voted before November 1, 2019, to
impose the prize fee, remit 50 percent of the amount collected as
the prize fee in equal shares to the county and municipality; or
(ii) did not vote before November 1, 2019,
to impose the prize fee, remit 25 percent of the amount collected as
the prize fee to the county and deposit the remaining amount in the
manner described by Subdivision (3);
(2) if the county in which the bingo game is conducted
did not vote before November 1, 2019, to impose the prize fee and
the location at which the bingo game is conducted is within the
boundaries of a municipality that voted before November 1, 2019, to
impose the prize fee:
(A) remit 25 percent of the amount collected as
the prize fee to the municipality; and
(B) deposit the remaining amount in the manner
described by Subdivision (3); and
(3) if neither the county or municipality in which the
bingo game is conducted voted before November 1, 2019, to impose the
prize fee, deposit the remainder of the amount collected as the
prize fee in the general charitable fund of the organization or on a
pro rata basis to the general funds of the organizations comprising
the unit, as applicable, to be used for the charitable purposes of
the organization or organizations.
SECTION 60. Sections 2001.504(a), (b), and (d), Occupations
Code, are amended to read as follows:
(a) A fee on prizes authorized or imposed under this
subchapter is due and is payable by the license holder or a person
conducting bingo without a license to the department [commission]
and county or municipality, as applicable, quarterly on or before
the 25th day of the month succeeding each calendar quarter.
(b) The report of the fee on prizes must be filed [under
oath] on forms prescribed by the department [commission].
(d) A license holder required to file a report of the fee on
prizes shall deliver the quarterly report with the net amount of the
fee due to the department [commission].
SECTION 61. Section 2001.505(a), Occupations Code, is
amended to read as follows:
(a) A licensed authorized organization conducting bingo
shall submit quarterly to the department [commission] a report
under oath stating:
(1) the amount of the gross receipts derived from
bingo;
(2) each item of expense incurred or paid;
(3) each item of expenditure made or to be made, the
name and address of each person to whom each item has been paid or is
to be paid, and a detailed description of the merchandise purchased
or the services rendered;
(4) the net proceeds derived from bingo;
(5) the use to which the proceeds have been or are to
be applied; and
(6) a list of prizes offered and given, with their
respective values.
SECTION 62. Section 2001.507, Occupations Code, is amended
to read as follows:
Sec. 2001.507. COLLECTION AND DEPOSIT OF PRIZE FEE. (a)
The department [commission] shall deposit the revenue collected
from the fee on prizes imposed by Section 2001.502 to the credit of
the general revenue fund.
(a-1) The revenue collected by the department [commission]
from the fee on prizes imposed by Section 2001.502 is considered
miscellaneous revenue for purposes of appropriations made to the
department [commission] under the General Appropriations Act for
the administration of this chapter.
SECTION 63. Section 2001.508(a), Occupations Code, is
amended to read as follows:
(a) If a person fails to file a report of the fee on prizes
as required by this chapter or fails to pay to the department
[commission] the fee on prizes imposed under this chapter when the
report or payment is due, the person forfeits five percent of the
amount due as a penalty, and after the first 30 days, the person
forfeits an additional five percent.
SECTION 64. Section 2001.509, Occupations Code, is amended
to read as follows:
Sec. 2001.509. RECOMPUTATION OF PRIZE FEE. If the
department [commission] is not satisfied with a report of the fee on
prizes or the amount of the fee on prizes required to be remitted
under this chapter to the state by a person, the department
[commission] may compute and determine the amount required to be
paid on the basis of:
(1) the facts contained in the report of the fee on
prizes or report of receipts and expenses; or
(2) any information possessed by the department
[commission] or that may come into the possession of the department
[commission], without regard to the period covered by the
information.
SECTION 65. Sections 2001.510(a), (b), and (c), Occupations
Code, are amended to read as follows:
(a) If a license holder fails to make a required report of
the fee on prizes, or if a person conducts bingo without a license,
the department [commission] shall make an estimate of the prizes
awarded at a bingo occasion. The department [commission] shall
make the estimate for the period in respect to which the license
holder or other person failed to make a report.
(b) The estimate shall be based on any information covering
any period possessed by the department [commission] or that may
come into the possession of the department [commission].
(c) On the basis of the department's [commission's]
estimate, the department [commission] shall compute and determine
the amount of the fee on prizes required to be paid to the state and
shall add to that amount a penalty of 10 percent of the amount.
SECTION 66. Sections 2001.511(a) and (b), Occupations Code,
are amended to read as follows:
(a) If the department [commission] believes that the
collection of the fee on prizes, an amount of the fee on prizes
required to be remitted to the state, or the amount of a
determination will be jeopardized by delay, the department
[commission] shall make a determination of the fee on prizes or
amount of the fee required to be collected, noting the finding of
jeopardy on the determination. The determined amount is due and
payable immediately.
(b) If a license holder against whom the determination is
made does not pay the amount specified by a determination on or
before the 20th day after the date of service of the determination
on the license holder, the amount becomes final at the end of the
20th day unless the license holder files with the department a
petition for redetermination on or before the 20th day after
service of notice of the determination.
SECTION 67. Section 2001.512(b), Occupations Code, is
amended to read as follows:
(b) In applying the provisions of Subtitle B, Title 2, Tax
Code, to the fee on prizes imposed under Section 2001.502 only, the
fee on prizes is treated as if it were a tax and the powers and
duties assigned to the comptroller under that subtitle are assigned
to the department [commission].
SECTION 68. Sections 2001.513(a), (b), (c), (d), (f), (g),
and (h), Occupations Code, are amended to read as follows:
(a) At any time within three years after a person is
delinquent in the payment of an amount of the fee on prizes due to
the department [commission], the department [commission] may
collect the amount under this section.
(b) The department [commission] shall seize real or
personal property of the license holder not exempt from execution
under the laws of this state and sell the property, or a sufficient
part of the property, at public auction to pay the amount due and
interest or penalties caused by the seizure and sale.
(c) The department [commission] shall give the delinquent
person written notice of the sale, including the time and place of
the sale, at least 20 days before the date set for the sale. The
department [commission] shall mail the notice, postage prepaid, in
an envelope addressed to the person at the person's last known
address or place of business.
(d) The department [commission] shall publish the notice
for at least 10 days before the date set for the sale in a newspaper
of general circulation published in the county in which the
property seized is to be sold. If there is no newspaper of general
circulation in the county, the department [commission] shall post
the notice in three public places in the county at least 20 days
before the date set for the sale.
(f) At the sale, the department [commission] shall sell the
property in accordance with law and the notice and shall deliver to
the purchaser a bill of sale for personal property and a deed for
real property sold. The bill of sale or deed vests the interest or
title of the delinquent person for the amount in the purchaser. The
unsold portion of property seized may be left at the place of sale
at the risk of the delinquent person for the amount.
(g) Except as provided by Subsection (h), if the money
received at the sale exceeds the total amounts, including interest,
penalties, and costs due to the state, the department [commission]
shall return the excess money to the person liable for the amounts
and shall obtain the person's receipt. If the receipt of the
delinquent person for the amount is not available, the department
[commission] shall deposit the excess money with the comptroller,
as trustee for the person, subject to the order of the person, or
the person's heirs, successors, or assigns.
(h) If a person having an interest in or lien on the property
files with the department [commission] before the sale notice of
the person's interest or lien, the department [commission] shall
withhold any excess money pending a court determination of the
rights of the respective parties to the money.
SECTION 69. Sections 2001.514(a), (c), and (d), Occupations
Code, are amended to read as follows:
(a) To secure payment due to the department [commission] of
the fee on prizes imposed under this subchapter, each license
holder shall furnish to the department [commission]:
(1) a cash bond;
(2) a bond from a surety company chartered or
authorized to do business in this state;
(3) certificates of deposit;
(4) certificates of savings;
(5) United States treasury bonds;
(6) subject to the approval of the department
[commission], an assignment of negotiable stocks or bonds; or
(7) other security as the commission by rule considers
sufficient.
(c) On a license holder's failure to pay the fee on prizes
imposed under this subchapter, the department [commission] may
notify the license holder and any surety of the delinquency by
jeopardy or deficiency determination. If payment is not made when
due, the department [commission] may forfeit all or part of the bond
or security.
(d) If the license holder ceases to conduct bingo and
relinquishes the license holder's license, the department
[commission] shall authorize the release of all bonds and other
security on a determination that no amounts of the fee on prizes
remain due and payable under this subchapter.
SECTION 70. Section 2001.515, Occupations Code, is amended
to read as follows:
Sec. 2001.515. DEPARTMENT'S [COMMISSION'S] DUTIES. The
department [commission] shall perform all functions incident to the
administration, collection, enforcement, and operation of the fee
on prizes imposed under this subchapter for amounts due to the
department [commission], including any necessary reconciliation of
a prize fee held by the department [commission] that is due to a
county or municipality.
SECTION 71. Section 2001.551(f), Occupations Code, is
amended to read as follows:
(f) A game exempted under Subsection (b)(4) is subject to
the following restrictions:
(1) a person licensed or required to be licensed under
this chapter or having an interest in a license under this chapter
may not be involved, directly or indirectly, in bingo, except that a
licensed manufacturer or licensed distributor may sell or otherwise
furnish bingo equipment or supplies for use in a game;
(2) a person conducting bingo may purchase or
otherwise obtain bingo equipment or supplies through a newspaper, a
radio or television station, or an advertising agency and, unless
otherwise authorized by [the] commission rule, only from a licensed
manufacturer or licensed distributor;
(3) a licensed manufacturer or licensed distributor
may sell or otherwise furnish bingo equipment or supplies for use in
a game only to or through a newspaper or a radio or television
station or through an advertising agency acting on behalf of a
person authorized to conduct the game; and
(4) the commission by rule may require a person
conducting or involved in conducting the game to:
(A) notify the department [commission] of:
(i) the persons involved in conducting the
game;
(ii) the manner in which the game is to be
conducted; and
(iii) any other information required by the
commission; and
(B) keep records of all transactions connected
with the game available for department [commission] inspection.
SECTION 72. Section 2001.557, Occupations Code, is amended
to read as follows:
Sec. 2001.557. INSPECTION OF PREMISES. (a) The department
[commission, its officers or agents,] or a state, municipal, or
county peace officer may enter and inspect the contents of premises
where:
(1) bingo is being conducted or intended to be
conducted; or
(2) equipment used or intended for use in bingo is
found.
(b) The department [commission by rule] shall conduct
risk-based inspections in accordance with Section 51.211 that
[develop and implement policies and procedures to:
[(1)] prioritize the inspection of premises where
bingo is being conducted or is intended to be conducted in
accordance with the risk factors identified by the department [the
commission considers important], including:
(1) [(A)] the amount of money derived from the conduct
of bingo at the premises;
(2) [(B)] the compliance history of the premises; and
(3) [(C)] the amount of time that has elapsed since
the date of the immediately preceding commission inspection of the
premises[; and
[(2) inspect premises where bingo is being conducted
or is intended to be conducted in accordance with the priorities
established under Subdivision (1)].
SECTION 73. Section 2001.558(a), Occupations Code, is
amended to read as follows:
(a) If the department [commission], the appropriate
governing body, or the attorney general has reason to believe that
this chapter has been or is about to be violated, the department
[commission], the governing body, or the attorney general may
petition a court for injunctive relief to restrain the violation.
SECTION 74. Sections 2001.560(c), (c-1), (c-2), and (e),
Occupations Code, are amended to read as follows:
(c) The department [commission] or a person authorized in
writing by the department [commission] may examine the books,
papers, records, equipment, and place of business of a license
holder and may investigate the character of the license holder's
business to verify the accuracy of a return, statement, or report
made, or, if no return is made by the license holder, to ascertain
and determine the amount required to be paid.
(c-1) The commission by rule shall develop a policy for
auditing license holders. The department [bingo division] shall
use audit risk analysis procedures established by the commission
to:
(1) annually identify which license holders are most
at risk of violating this chapter or rules adopted under this
chapter; and
(2) develop a plan for auditing the identified license
holders that includes:
(A) a schedule for the audits of the identified
license holders;
(B) procedures to annually update the plan based
on successive risk analyses; and
(C) a completion date for each audit that is not
later than the fifth anniversary of the date the license holder was
identified as a candidate for audit.
(c-2) The department [bingo division] shall provide to the
commission a copy of the auditing plan developed under Subsection
(c-1).
(e) If the department issues a notice of alleged violation
in accordance with Section 51.303 for a violation of [commission
determines that a person is not complying with] this chapter, the
department [commission] shall notify the attorney general and the
governing body of the appropriate political subdivision.
SECTION 75. Section 2001.601, Occupations Code, is amended
to read as follows:
Sec. 2001.601. IMPOSITION OF PENALTY. The commission or
the department may impose an administrative penalty in accordance
with Subchapter F, Chapter 51, against a person who violates this
chapter or a rule adopted or order issued [adopted] by the
commission or the department under this chapter.
SECTION 76. Section 2001.602, Occupations Code, is amended
to read as follows:
Sec. 2001.602. AMOUNT OF PENALTY. [(a)] The amount of the
administrative penalty may not exceed $1,000 for each violation.
Each day a violation continues or occurs may be considered a
separate violation for purposes of imposing a penalty.
[(b) In determining the amount of the penalty, the director
shall consider:
[(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the prohibited acts;
[(2) the history of previous violations;
[(3) the amount necessary to deter future violations;
[(4) efforts to correct the violation; and
[(5) any other matter that justice may require.]
SECTION 77. Section 2001.654(a), Occupations Code, is
amended to read as follows:
(a) If the officer responsible for certifying a petition
determines that a petition is valid, the governing body shall:
(1) order that an election be held in the appropriate
political subdivision on a date not later than the 60th day after
the date of the officer's certification; and
(2) notify the department [commission] by certified
mail, return receipt requested, that an election has been ordered.
SECTION 78. Section 2001.656(d), Occupations Code, is
amended to read as follows:
(d) The governing body of a political subdivision in which a
bingo election has been held shall not later than the 14th day after
the date of the election give written notification to the
department [commission] of the results of the election. If as a
result of the election bingo is legalized in the political
subdivision, the governing body shall furnish the department
[commission] with a map prepared by the governing body indicating
the boundaries of the political subdivision in which bingo may be
conducted.
SECTION 79. The following provisions of the Government Code
are repealed:
(1) Section 411.108(a-1);
(2) Section 467.021(c);
(3) Section 467.031; and
(4) Section 467.033.
SECTION 80. The following provisions of the Occupations
Code are repealed:
(1) Section 2001.052;
(2) Section 2001.053;
(3) Section 2001.0541;
(4) Sections 2001.056(c) and (d);
(5) Section 2001.058;
(6) Section 2001.059;
(7) Section 2001.061;
(8) Section 2001.158(e);
(9) Section 2001.205(c);
(10) Section 2001.209(c);
(11) Section 2001.302;
(12) Section 2001.304;
(13) Section 2001.306(f);
(14) Section 2001.308;
(15) Section 2001.315;
(16) Section 2001.352;
(17) Section 2001.353;
(18) Section 2001.354;
(19) Section 2001.356;
(20) Section 2001.357;
(21) Section 2001.358;
(22) Section 2001.559;
(23) Section 2001.603;
(24) Section 2001.604;
(25) Section 2001.605;
(26) Section 2001.606;
(27) Section 2001.607;
(28) Section 2001.608;
(29) Section 2001.609;
(30) Section 2001.610; and
(31) Section 2001.611.
SECTION 81. (a) On September 1, 2026:
(1) all functions and activities performed by the
Texas Lottery Commission relating to the regulation of bingo
operations under Chapter 2001, Occupations Code, immediately
before that date are transferred to the Texas Department of
Licensing and Regulation;
(2) a rule, policy, procedure, decision, or form
adopted by the Texas Lottery Commission relating to Chapter 2001,
Occupations Code, is a rule, policy, procedure, decision, or form
of the Texas Commission of Licensing and Regulation or the Texas
Department of Licensing and Regulation, as applicable, and remains
in effect until amended or replaced by that commission or
department unless the rule, policy, procedure, decision, or form
conflicts with the changes in law made by this Act;
(3) unless the context clearly indicates otherwise, a
reference to the Texas Lottery Commission in a law or
administrative rule that relates to Chapter 2001, Occupations Code,
means the Texas Commission of Licensing and Regulation or the Texas
Department of Licensing and Regulation, as applicable;
(4) a complaint, investigation, or other proceeding
before the Texas Lottery Commission that is related to Chapter
2001, Occupations Code, is transferred without change in status to
the Texas Department of Licensing and Regulation, and the Texas
Department of Licensing and Regulation assumes, as appropriate and
without a change in status, the position of the Texas Lottery
Commission in an action or proceeding to which the Texas Lottery
Commission is a party;
(5) a license, permit, certification, or registration
in effect that was issued by the Texas Lottery Commission under
Chapter 2001, Occupations Code, is continued in effect as a
license, permit, certification, or registration of the Texas
Department of Licensing and Regulation;
(6) all money, contracts, leases, property, and
obligations of the Texas Lottery Commission relating to Chapter
2001, Occupations Code, are transferred to the Texas Department of
Licensing and Regulation; and
(7) the unexpended and unobligated balance of any
money appropriated by the legislature for the Texas Lottery
Commission related to Chapter 2001, Occupations Code, is
transferred to the Texas Department of Licensing and Regulation.
(b) On September 1, 2026, all full-time equivalent employee
positions at the Texas Lottery Commission that primarily concern
the administration, auditing, accounting, enforcement, or other
direct and indirect support of Chapter 2001, Occupations Code,
become positions at the Texas Department of Licensing and
Regulation. When filling the positions, the Texas Department of
Licensing and Regulation shall give first consideration to an
applicant who, as of August 31, 2025, was an employee at the Texas
Lottery Commission primarily involved in administering or
enforcing Chapter 2001, Occupations Code.
(c) Not later than June 1, 2026, the Texas Lottery
Commission shall grant the Texas Department of Licensing and
Regulation inquiry-only security access to:
(1) all licensing, enforcement, and examination
software or computer systems used by the Texas Lottery Commission
in administering or enforcing Chapter 2001, Occupations Code; and
(2) the uniform statewide accounting system, the state
property accounting system, the uniform statewide payroll system,
and the human resources information system for the Texas Lottery
Commission.
(d) Before September 1, 2026, the Texas Lottery Commission
may agree with the Texas Department of Licensing and Regulation to
transfer any property of the Texas Lottery Commission to the Texas
Department of Licensing and Regulation to implement the transfers
required by this Act.
(e) The Texas Department of Licensing and Regulation and the
Texas Lottery Commission shall coordinate implementation of this
section. The Texas Lottery Commission shall cooperate with the
Texas Department of Licensing and Regulation in transferring all
data and records necessary to implement the transfers required by
this Act.
(f) Before July 15, 2026, the Texas Lottery Commission and
the Texas Department of Licensing and Regulation shall develop and
enter into a memorandum of understanding regarding the transfers
required by this Act. The memorandum must include a transition plan
with a timetable and specific steps and deadlines required to
complete the transfer.
(g) Not later than December 1, 2026, a manufacturer of bingo
equipment or supplies that submitted to the Texas Lottery
Commission a bond as required under Section 2001.204, Occupations
Code, before September 1, 2026, that is in effect on the effective
date of this Act must amend the bond to name the Texas Department of
Licensing and Regulation as the payee for the bond.
SECTION 82. Not later than December 1, 2028, the Sunset
Advisory Commission shall submit to the governor, the lieutenant
governor, the speaker of the house of representatives, and each
standing committee of the legislature with primary jurisdiction
over the regulation of charitable bingo in this state a report on
the transfer under this Act of the regulation of charitable bingo
from the Texas Lottery Commission to the Texas Commission of
Licensing and Regulation.
SECTION 83. The changes in law made by this Act to Chapter
2001, Occupations Code, apply only to a tax or fee charged or
penalty imposed on or after September 1, 2026. A tax or fee charged
or penalty imposed before September 1, 2026, is governed by the law
in effect immediately before that date, and the former law is
continued in effect for that purpose.
SECTION 84. Not later than March 1, 2027, the Texas
Commission of Licensing and Regulation shall adopt the rules
necessary to implement the changes in law made by this Act.
SECTION 85. (a) Except as provided by Subsection (b) of
this section, this Act takes effect immediately if it receives a
vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
(b) Sections 1 through 80 of this Act take effect September
1, 2026.