Texas 2025 - 89th Regular

Texas Senate Bill SB2218 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R6128 PRL-F
2	2	By: Zaffirini S.B. No. 2218
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to regulating charitable bingo and authorizing the
10	10	establishment of a nonprofit corporation to advertise and promote
11	11	charitable bingo.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 2001.407, Occupations Code, is amended
14	14	by amending Subsection (c) and adding Subsections (c-1), (c-2), and
15	15	(c-3) to read as follows:
16	16	(c) Except as provided by Subsection (c-1), a [A] licensed
17	17	distributor may not receive by purchase or otherwise bingo
18	18	equipment or supplies from a person other than a licensed
19	19	manufacturer or another licensed distributor.
20	20	(c-1) A licensed distributor may receive bingo equipment or
21	21	supplies from a licensed authorized organization if:
22	22	(1) the distributor delivered the equipment or
23	23	supplies to the organization; and
24	24	(2) the equipment or supplies were:
25	25	(A) defective;
26	26	(B) not ordered by the organization; or
27	27	(C) delivered in a quantity that exceeds the
28	28	quantity the organization ordered.
29	29	(c-2) A licensed authorized organization that returns bingo
30	30	equipment or supplies to the licensed distributor as provided by
31	31	Subsection (c-1) shall:
32	32	(1) maintain a record specifying for each returned
33	33	equipment or supply:
34	34	(A) a reason for the return from the reasons
35	35	listed in Subsection (c-1)(2); and
36	36	(B) the quantity returned; and
37	37	(2) provide a copy of the record to the distributor.
38	38	(c-3) A licensed distributor that receives returned
39	39	equipment or supplies from a licensed authorized organization as
40	40	provided by Subsection (c-1) shall:
41	41	(1) maintain a record showing receipt of the returned
42	42	equipment or supplies; and
43	43	(2) provide a copy of the record to the organization.
44	44	SECTION 2. Section 2001.415, Occupations Code, is amended
45	45	to read as follows:
46	46	Sec. 2001.415. ADVERTISEMENTS. (a) A person other than a
47	47	licensed authorized organization, licensed commercial lessor,
48	48	nonprofit corporation formed under Section 2001.4151, or the
49	49	commission may not advertise bingo.
50	50	(b) A licensed authorized organization, licensed commercial
51	51	lessor, nonprofit corporation formed under Section 2001.4151, or
52	52	the commission may include in an advertisement or promotion:
53	53	(1) the total amount of bingo prizes offered
54	54	statewide; or
55	55	(2) the amount of a prize or series of prizes offered
56	56	at a bingo occasion.
57	57	SECTION 3. Subchapter I, Chapter 2001, Occupations Code, is
58	58	amended by adding Section 2001.4151 to read as follows:
59	59	Sec. 2001.4151. ESTABLISHMENT OF NONPROFIT CORPORATION.
60	60	(a) A statewide organization in existence before January 1, 2024,
61	61	that as of that date has as its principal purpose assisting licensed
62	62	authorized organizations, units as defined by Subchapter I-1,
63	63	licensed commercial lessors, and licensed bingo distributors and
64	64	licensed bingo manufacturers in furthering the interests of
65	65	charitable bingo may form a nonprofit corporation governed by
66	66	Chapter 22, Business Organizations Code, to carry out the purposes
67	67	described in this section. For purposes of this subsection, an
68	68	organization is a statewide organization if the organization's
69	69	membership includes multiple licensed authorized organizations
70	70	that collectively have primary business offices in at least 15
71	71	counties in this state.
72	72	(b) A nonprofit corporation formed under this section may
73	73	accept money remitted to the corporation by a licensed authorized
74	74	organization under Section 2001.502(b-1).
75	75	(c) Subject to Subsection (d), a nonprofit corporation
76	76	formed under this section may spend money accepted under Subsection
77	77	(b) for purposes that include:
78	78	(1) advertising and promotional activities to inform
79	79	the public about charitable bingo, including:
80	80	(A) the purposes for which charitable bingo is
81	81	conducted;
82	82	(B) the types of charities benefiting from
83	83	charitable bingo;
84	84	(C) the locations where and times when charitable
85	85	bingo is conducted;
86	86	(D) the types of games conducted at charitable
87	87	bingo locations; and
88	88	(E) the amount of a prize or series of prizes that
89	89	may be offered at a bingo occasion;
90	90	(2) legal and accounting services;
91	91	(3) labor;
92	92	(4) utilities;
93	93	(5) office space; and
94	94	(6) other necessary expenses related to the purposes
95	95	of this section.
96	96	(d) A nonprofit corporation formed under this section:
97	97	(1) may only spend money under this section in
98	98	accordance with the plan adopted by the board of the corporation
99	99	under Subsection (e); and
100	100	(2) may not spend any money until the date the
101	101	corporation provides the notice required by Subsection (j).
102	102	(e) At least annually, the board of a nonprofit corporation
103	103	formed under this section shall adopt a plan for the corporation to
104	104	spend money.
105	105	(f) A nonprofit corporation established under this section
106	106	is exempt from taxation under:
107	107	(1) Chapter 151, Tax Code; and
108	108	(2) Chapter 171, Tax Code.
109	109	(g) A nonprofit corporation formed under this section may
110	110	not use money accepted under Subsection (b) to make:
111	111	(1) a campaign contribution, as defined by Section
112	112	251.001, Election Code;
113	113	(2) a direct campaign expenditure, as defined by
114	114	Section 251.001, Election Code;
115	115	(3) a political expenditure, as defined by Section
116	116	251.001, Election Code;
117	117	(4) an expenditure for political advertising, as
118	118	defined by Section 251.001, Election Code; or
119	119	(5) an expenditure to influence legislative subject
120	120	matter or administrative action as described in Chapter 305,
121	121	Government Code, including:
122	122	(A) to compensate or reimburse a person required
123	123	to register under Section 305.003, Government Code; or
124	124	(B) for legislative advertising, as defined by
125	125	Section 305.027, Government Code.
126	126	(h) Nothing in this section prohibits a nonprofit
127	127	corporation formed under this section from accepting and spending
128	128	money from sources other than bingo prize fees.
129	129	(i) A nonprofit corporation formed under this section shall
130	130	maintain books and records as required by state and federal law.
131	131	(j) A nonprofit corporation formed under this section
132	132	commences business on the date the corporation's board adopts an
133	133	initial annual plan under Subsection (e). On that date, the
134	134	corporation shall provide notification of the corporation's
135	135	commencement of business to:
136	136	(1) the commission; and
137	137	(2) each licensed authorized organization that
138	138	remitted money to a county or municipality under Section
139	139	2001.502(b) in 2023.
140	140	(k) A nonprofit corporation formed under this section may
141	141	not be licensed:
142	142	(1) to conduct bingo; or
143	143	(2) as a commercial lessor, bingo distributor, or
144	144	bingo manufacturer.
145	145	SECTION 4. Section 2001.451(h), Occupations Code, is
146	146	amended to read as follows:
147	147	(h) Except as provided by Subsection (j), a licensed
148	148	authorized organization or a unit of licensed authorized
149	149	organizations may retain operating capital in the organization's or
150	150	unit's bingo account in an amount that:
151	151	(1) is equal to the organization's or unit's actual
152	152	average bingo expenses per quarter based on the preceding license
153	153	period, excluding prizes paid; and
154	154	(2) does not exceed a total of $75,000 [$50,000] for a
155	155	single organization or $75,000 [$50,000] for each member of a unit
156	156	unless:
157	157	(A) the commission by rule establishes a higher
158	158	amount for all organizations or units or one or more classes of
159	159	organizations or units; or
160	160	(B) the bingo operations director, on request,
161	161	raises the operating capital limit for one organization or unit as
162	162	necessary to facilitate the operation of the organization or unit.
163	163	SECTION 5. Section 2001.502, Occupations Code, is amended
164	164	by amending Subsections (a) and (b) and adding Subsection (b-1) to
165	165	read as follows:
166	166	(a) A licensed authorized organization or unit as defined by
167	167	Section 2001.431 shall:
168	168	(1) collect from a person who wins a cash bingo prize
169	169	of more than $100 [$5] a fee in the amount of five percent of the
170	170	amount of the prize; and
171	171	(2) except as otherwise provided by this section,
172	172	remit to the commission the amount of the fee collected under
173	173	Subdivision (1).
174	174	(b) Notwithstanding Subsection (a)(2) and subject to
175	175	Subsection (b-1), each quarter, a licensed authorized organization
176	176	or unit that collects a prize fee under Subsection (a) for a bingo
177	177	game conducted in a county or municipality that was entitled to
178	178	receive a portion of a bingo prize fee as of January 1, 2019, shall
179	179	remit 50 percent of the amount collected as the prize fee to the
180	180	commission and shall remit or deposit the remainder of the amount
181	181	collected as the prize fee as follows:
182	182	(1) if the county in which the bingo game is conducted
183	183	voted before November 1, 2019, to impose the prize fee and the
184	184	location at which the bingo game is conducted:
185	185	(A) is not within the boundaries of a
186	186	municipality, remit 50 percent of the amount collected as the prize
187	187	fee to the county; or
188	188	(B) is within the boundaries of a municipality
189	189	that:
190	190	(i) voted before November 1, 2019, to
191	191	impose the prize fee, remit 50 percent of the amount collected as
192	192	the prize fee in equal shares to the county and municipality; or
193	193	(ii) did not vote before November 1, 2019,
194	194	to impose the prize fee, remit 25 percent of the amount collected as
195	195	the prize fee to the county and deposit the remaining amount in the
196	196	manner described by Subdivision (3);
197	197	(2) if the county in which the bingo game is conducted
198	198	did not vote before November 1, 2019, to impose the prize fee and
199	199	the location at which the bingo game is conducted is within the
200	200	boundaries of a municipality that voted before November 1, 2019, to
201	201	impose the prize fee:
202	202	(A) remit 25 percent of the amount collected as
203	203	the prize fee to the municipality; and
204	204	(B) deposit the remaining amount in the manner
205	205	described by Subdivision (3); and
206	206	(3) if neither the county or municipality in which the
207	207	bingo game is conducted voted before November 1, 2019, to impose the
208	208	prize fee, deposit the remainder of the amount collected as the
209	209	prize fee in the general charitable fund of the organization or on a
210	210	pro rata basis to the general funds of the organizations comprising
211	211	the unit, as applicable, to be used for the charitable purposes of
212	212	the organization or organizations.
213	213	(b-1) A licensed authorized organization or unit that
214	214	collects a prize fee under Subsection (a) for a bingo game conducted
215	215	in a county or municipality entitled to receive a portion of a bingo
216	216	prize fee as of January 1, 2019, may reduce the amount remitted
217	217	under Subsection (b)(1) or (2) by an amount not to exceed 15 percent
218	218	of the total amount remitted to the applicable county or
219	219	municipality by the licensed authorized organization or unit in
220	220	2023. The licensed authorized organization or unit shall remit the
221	221	amount remaining after the remittance to the applicable county or
222	222	municipality to, and the amount remaining may be accepted by, a
223	223	nonprofit corporation formed under Section 2001.4151. If the
224	224	nonprofit corporation does not accept the amount remitted under
225	225	this subsection, the licensed authorized organization or unit shall
226	226	remit the amount in the manner provided by Subsection (b).
227	227	SECTION 6. (a) Except as provided by Subsection (b), this
228	228	Act takes effect September 1, 2025.
229	229	(b) Section 5 of this Act takes effect October 1, 2025.