Bill Text: TX HB2642 | 2015-2016 | 84th Legislature | Comm Sub

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Bill Title: Relating to the transfer of the licensing and regulation of charitable bingo to the Texas Department of Licensing and Regulation and regulation by counties of amusement redemption machine game rooms on bingo premises; requiring an occupational permit; authorizing fees and taxes; creating civil and administrative penalties; increasing a criminal penalty.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-05-12 - Placed on General State Calendar [HB2642 Detail]

Download: Texas-2015-HB2642-Comm_Sub.html

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84R25603 YDB-D
By: Thompson of Harris H.B. No. 2642
Substitute the following for H.B. No. 2642:
By: Geren C.S.H.B. No. 2642

A BILL TO BE ENTITLED
AN ACT
relating to the transfer of the licensing and regulation of
charitable bingo to the Texas Department of Licensing and
Regulation and regulation by counties of amusement redemption
machine game rooms on bingo premises; requiring an occupational
permit; authorizing fees and taxes; creating civil and
administrative penalties; increasing a criminal penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. REGULATION OF CHARITABLE BINGO
SECTION 1.001. Section 2001.002, Occupations Code, is
amended by amending Subdivisions (8), (13), (18), and (25-a) and
adding Subdivisions (8-a) and (9-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.
(9-a) "Executive director" means the executive
director of the department.
(13) "Gross gaming revenue [receipts]" means the total
amount received from the sale, rental, transfer, or use of bingo
cards and entrance fees charged at premises at which bingo is
conducted less the amount of cash prizes paid to winners of bingo
games.
(18) "Net proceeds" means:
(A) in relation to the total [gross] receipts
from the conduct of bingo during one or more bingo occasions, the
amount remaining after deducting the reasonable sums necessarily
and actually expended for expenses under Section 2001.458 and the
tax [fee] on prizes under Section 2001.502; and
(B) in relation to the gross rent or other
consideration received by a licensed authorized organization for
the use of its premises, fixtures, or equipment by another license
holder, the amount remaining after deducting the reasonable sums
necessarily and actually expended for any janitorial services and
utility supplies directly attributable to the use of the premises,
fixtures, or equipment.
(25-a) "Regular license" means a license to conduct
bingo that is issued by the department [commission] and that
expires on the first [or second] anniversary of the date of issuance
unless revoked or suspended before that date by the department
[commission. The term includes an annual license].
SECTION 1.002. The heading to Subchapter B, Chapter 2001,
Occupations Code, is amended to read as follows:
SUBCHAPTER B. [COMMISSION] POWERS AND DUTIES
SECTION 1.003. The heading to Section 2001.051, Occupations
Code, is amended to read as follows:
Sec. 2001.051. CONTROL AND SUPERVISION OF BINGO[; BINGO
DIVISION].
SECTION 1.004. Sections 2001.051(a) and (b), Occupations
Code, are amended to read as follows:
(a) The department [commission] shall administer this
chapter.
(b) The 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.
SECTION 1.005. Section 2001.053, Occupations Code, is
amended to read as follows:
Sec. 2001.053. OFFICERS AND INVESTIGATORS. The executive
director [commission] may employ officers or investigators the
executive director [commission] considers necessary to administer
this chapter.
SECTION 1.006. Sections 2001.056(b), (c), (d), and (e),
Occupations Code, are amended to read as follows:
(b) A license holder may not use or distribute a bingo card
unless the card has been approved by the department [commission].
(c) The executive director or commission may set the price
or adopt a schedule of prices for the sale or provision of bingo
cards by a licensed authorized organization.
(d) A licensed authorized organization may not sell or
provide a bingo card at a price other than a price authorized by the
executive director or commission or a schedule adopted by the
executive director or commission.
(e) The commission by rule may require a licensed authorized
organization to notify the department [commission] of the price for
bingo cards the organization will use for one or more reporting
periods.
SECTION 1.007. Section 2001.057, Occupations Code, is
amended to read as follows:
Sec. 2001.057. BINGO ADVISORY COMMITTEE AND ADVICE FOR
COMMISSION. (a) The commission shall [may] appoint a bingo
advisory committee consisting of nine members. The commission
shall appoint members 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;
(4) distributors; and
(5) manufacturers.
(c) An advisory [A] committee member serves at the pleasure
of the presiding officer of the commission.
(d) An advisory [A] committee member is not entitled to
receive compensation for serving as a member. A [committee] member
is entitled to reimbursement for reasonable expenses incurred in
performing duties as a member subject to the availability of funds
and applicable limitations of the General Appropriations Act.
(e) The advisory committee, executive director, and
department 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; and
(3) [report annually to the commission on the
committee's activities; and
[(4)] perform other duties as determined by the
commission or executive director.
(f) The advisory committee may meet [quarterly or] at the
executive director's or the presiding officer's [commission's]
request.
[(g) The commission may adopt rules to govern the operations
of the committee.]
SECTION 1.008. Section 2001.059(f), Occupations Code, is
amended to read as follows:
(f) The commission may delegate all or part of the authority
and procedures for issuing advisory opinions under this section to
an employee of the department [commission].
SECTION 1.009. 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 gaming
revenue [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 gaming revenue
[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 gaming revenue [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 1.010. Section 2001.061, Occupations Code, is
amended to read as follows:
Sec. 2001.061. LICENSE RENEWAL PROCESS. The commission
shall adopt rules governing each part of the license renewal
process for all licenses issued under this chapter, from
application submission to completion of the renewal process. [The
process must require a license holder renewing a license to submit
to the commission the information required in the initial license
application.]
SECTION 1.011. 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 that has been organized
in this state for at least three years;
(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 1.012. 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 1.013. Sections 2001.103(a), (c), (f), 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 and in the manner prescribed by the
department [commission], accompanied by a $25 license fee.
(c) An organization may not receive more than 24 [six]
temporary licenses in the 12-month period following the issuance or
renewal of the organization's license to conduct bingo [a calendar
year].
(f) An authorized organization that holds an annual [a
regular] license to conduct bingo may apply for all or any portion
of the total number of temporary licenses to which the organization
is entitled under Subsection (c) [(e)] in one application without
stating the days or times for which the organization will use the
temporary licenses.
(g) An organization that has been issued a temporary license
under Subsection (f) shall notify the department [commission] of
the specific date and time of the bingo occasion for which the
temporary license will be used before using the license. [If the
commission receives the notification by noon of the day before the
day the temporary license will be used, the commission shall verify
receipt of the notice before the end of the business day on which
the notice is received. If the commission does not receive the
notification by noon of the day before the day the temporary license
will be used, the commission shall verify receipt of the notice
before noon of the business day that follows the day the commission
received the notice.]
SECTION 1.014. Sections 2001.104(a), (d), and (e),
Occupations Code, are amended to read as follows:
(a) The commission by rule shall set the fees for a license
to conduct bingo based on the amount of the licensed authorized
organization's total receipts derived from the conduct of bingo and
in an amount reasonable to defray the department's administrative
costs but not less than the following:
(1) Class A (annual [gross] receipts of not more than
$75,000)-$300 [$25,000 or less)-$100];
(2) Class B (annual [gross] receipts of more than
$75,000 [$25,000] but not more than $200,000)-$900
[$50,000)-$200];
(3) Class C (annual [gross] receipts of more than
$200,000 [$50,000] but not more than $400,000)-$2,000
[$75,000)-$300]; and
(4) Class D (annual [gross] receipts of more than
[$75,000 but not more than $100,000)-$400;
[(5) Class E (annual gross receipts of more than
$100,000 but not more than $150,000)-$600;
[(6) Class F (annual gross receipts of more than
$150,000 but not more than $200,000)-$900;
[(7) Class G (annual gross receipts of more than
$200,000 but not more than $250,000)-$1,200;
[(8) Class H (annual gross receipts of more than
$250,000 but not more than $300,000)-$1,500;
[(9) Class I (annual gross receipts of more than
$300,000 but not more than $400,000)-$2,000; and
[(10) Class J (annual gross receipts of more than]
$400,000)-$2,500.
(d) An applicant shall pay the fees established under
Subsection (a) annually. [An applicant for a license or renewal of
a license may obtain a license that is effective for two years by
paying an amount equal to two times the amount of the annual license
fee.]
(e) A licensed authorized organization may pay in advance,
or establish an escrow account with the department [commission] to
cover, fees assessed under this chapter for the amendment of a
license or issuance of a temporary license.
SECTION 1.015. Section 2001.105, Occupations Code, is
amended to read as follows:
Sec. 2001.105. LICENSE ISSUANCE OR RENEWAL; DISCIPLINARY
ACTION FOR CERTAIN CONVICTIONS. (a) The department [commission]
shall issue or renew a license to conduct bingo on payment of the
license fee provided by Section 2001.104 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 12 months preceding the date of
application for a license or license renewal; and
(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 the applicant [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, or a person under
whose name bingo will be conducted, has been convicted of criminal
fraud or a gambling or gambling-related offense.
(b-1) The department may not take disciplinary action
against a licensed authorized organization that has on file for a
person described by Subsection (b) or an organization employee a
criminal history records check, conducted by a local law
enforcement agency or the Department of Public Safety, that does
not contain a record of a conviction for an offense described by
that subsection. If the department conducts a criminal history
records check on the person or employee that contains a record of a
conviction for an offense described by that subsection:
(1) the department shall immediately notify the
organization of the conviction; and
(2) the organization is prohibited from allowing the
person or employee to conduct bingo for the organization after
receipt of the notification.
(b-2) The department may take disciplinary action against
an organization that allows a person described by Subsection (b) or
organization employee to conduct bingo for the organization after
the date the organization receives the notification required under
Subsection (b-1)(1).
(c) A [Except as provided by Section 2001.104(d), a] license
issued under this subchapter is effective for one year.
SECTION 1.016. Sections 2001.107(b) and (c), Occupations
Code, are 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.
(c) The department [commission by rule] shall establish:
(1) the content of the training course;
(2) information concerning training to be reported to
the department [commission]; and
(3) other training program requirements that the
department [commission] determines to be necessary to promote the
fair conduct of bingo and compliance with this chapter.
SECTION 1.017. 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) The department [If the 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 commission and may conduct bingo at the new
premises or during the new bingo occasion until the commission acts
on the application.
[(e) Notwithstanding Subsection (d), the 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 1.018. 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 1.019. 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 1.020. 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 extends credit to, loans money to, or
pays or provides for the payment of license fees for an authorized
organization;
(4) a distributor or manufacturer; or
(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 1.021. 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 [commission] a written verified application on
a form prescribed by the department [commission].
SECTION 1.022. Section 2001.158(a), Occupations Code, is
amended to read as follows:
(a) The commission by rule shall set the fees for a
commercial lessor license in an amount reasonable to defray the
department's administrative costs but not less than the following:
(1) Class A (annual gross rentals from licensed
organizations of not more than $30,000)-$300 [$12,000)-$100];
(2) Class B (annual gross rentals from licensed
organizations of more than $30,000 [$12,000] but not more than
$60,000)-$900 [$20,000)-$200];
(3) Class C (annual gross rentals from licensed
organizations of more than $60,000 [$20,000] but not more than
$90,000)-$2,000 [$30,000)-$300]; and
(4) Class D (annual gross rentals from licensed
organizations of more than [$30,000 but not more than
$40,000)-$400;
[(5) Class E (annual gross rentals from licensed
organizations of more than $40,000 but not more than $50,000)-$600;
[(6) Class F (annual gross rentals from licensed
organizations of more than $50,000 but not more than $60,000)-$900;
[(7) Class G (annual gross rentals from licensed
organizations of more than $60,000 but not more than
$70,000)-$1,200;
[(8) Class H (annual gross rentals from licensed
organizations of more than $70,000 but not more than
$80,000)-$1,500;
[(9) Class I (annual gross rentals from licensed
organizations of more than $80,000 but not more than
$90,000)-$2,000; and
[(10) Class J (annual gross rentals from licensed
organizations of more than] $90,000)-$2,500.
SECTION 1.023. 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 department
[commission] determines.
SECTION 1.024. 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 department [commission] to revoke
or suspend a license under this chapter or an applicable commission
rule, a district court in Travis County [the county for which a
commercial lessor license was issued or the 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 1.025. 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 1.026. Section 2001.201, Occupations Code, is
amended to read as follows:
Sec. 2001.201. MANUFACTURER'S LICENSE REQUIRED. A
manufacturer may not sell or supply or offer to sell or supply to a
person in this state or for use in this state bingo cards, boards,
sheets, pads, or other supplies, or equipment designed to be used in
playing bingo, or engage in any intrastate activity involving those
items, unless the manufacturer holds a manufacturer's license under
this subchapter.
SECTION 1.027. 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 1.028. Section 2001.204, Occupations Code, is
amended to read as follows:
Sec. 2001.204. MANUFACTURER'S LICENSE BOND. (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.
(b) The bond must provide for forfeiture to the department
[state] on the manufacturer's failure to comply with this chapter
or a commission rule or on suspension or revocation of the
manufacturer's license.
SECTION 1.029. Section 2001.205(b), Occupations Code, is
amended to read as follows:
(b) In addition to the annual license fee, the department
[commission] may require an additional fee in an amount necessary
to defray the cost of a background investigation, including the
inspection of manufacturing plants and locations. The commission
by rule may establish the conditions and procedure for payment of
the additional fee.
SECTION 1.030. 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 1.031. Section 2001.209(b), Occupations Code, is
amended to read as follows:
(b) In addition to the annual license fee, the department
[commission] may require an additional fee in an amount necessary
to defray the cost of a background investigation of the applicant,
including the inspection of storage, distribution, or operating
locations. The commission by rule may establish the conditions and
procedure for payment of the additional fee.
SECTION 1.032. Section 2001.211(a), Occupations Code, is
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.
SECTION 1.033. Section 2001.212, Occupations Code, is
amended to read as follows:
Sec. 2001.212. DENIAL OF LICENSE. The executive director
or commission 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 1.034. Section 2001.214(a), Occupations Code, is
amended to read as follows:
(a) 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 department [commission].
SECTION 1.035. 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 1.036. Section 2001.217, Occupations Code, is
amended to read as follows:
Sec. 2001.217. OFFENSE. (a) A person who does not hold a
manufacturer's or distributor's license commits an offense if the
person sells, offers to sell, or attempts to induce the sale of
bingo equipment or supplies to a licensed authorized organization.
(b) A first offense under this section is a state jail
felony. A subsequent offense under this section is a felony of the
third degree.
SECTION 1.037. 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 1.038. The heading to Subchapter G, Chapter 2001,
Occupations Code, is amended to read as follows:
SUBCHAPTER G. GENERAL PROVISIONS RELATING TO
DEPARTMENT [COMMISSION] LICENSES
SECTION 1.039. Section 2001.301, Occupations Code, is
amended to read as follows:
Sec. 2001.301. LICENSE INVESTIGATION. Promptly after the
filing of the application for a license under this chapter, the
department [commission] shall investigate the qualifications of
each applicant and the merits of the application.
SECTION 1.040. Section 2001.302, Occupations Code, is
amended to read as follows:
Sec. 2001.302. PROVISION OF SUPPLEMENTAL INFORMATION. (a)
In addition to any required application form, a license applicant
or license holder shall submit any supplemental information
requested by the department [commission].
(b) The executive director or commission may deny or refuse
to renew a license application or revoke a license based on a
failure to submit requested supplemental information when
required.
SECTION 1.041. Section 2001.3025, Occupations Code, is
amended to read as follows:
Sec. 2001.3025. ACCESS TO CRIMINAL HISTORY RECORD
INFORMATION. The department [commission] is entitled to conduct an
investigation of and is entitled to obtain criminal history record
information maintained by the Department of Public Safety, 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.
SECTION 1.042. Sections 2001.306(a), (a-1), 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 department [commission] if the
subject matter of the proposed amendment could properly have been
included in the original license.
(a-1) The commission by rule shall establish an amendment
fee schedule. The amount of a fee charged by the department
[commission] may vary based on the complexity of the proposed
license amendment.
(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 other
means acceptable to the department [facsimile].
SECTION 1.043. Section 2001.307, Occupations Code, is
amended to read as follows:
Sec. 2001.307. MAXIMUM LICENSE TERM. A [Except as
otherwise provided by this chapter, a] license issued under this
chapter may not be effective for more than one year.
SECTION 1.044. 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 1.045. Sections 2001.315(a) and (b), Occupations
Code, are amended to read as follows:
(a) A person who fails to renew the person's license under
this chapter before the date the license expires may renew the
license after the expiration date by:
(1) filing a license renewal application with the
department [commission] not later than the 14th day after the date
the license expires, paying the applicable annual license fee, and
paying a late license renewal fee equal to 10 percent of the annual
license fee; or
(2) filing a license renewal application with the
department [commission] not later than the 60th day after the date
the license expires, paying the applicable annual license fee, and
paying a late license renewal fee equal to 10 percent of the annual
license fee for each 14-day period occurring after the date the
license expires and before the date the renewal application is
filed with the department [commission].
(b) A person who files a renewal application with the
department [commission] under Subsection (a) may continue to
perform the bingo activities authorized under the license as if the
license has not expired until the license is renewed or renewal of
the license is denied.
SECTION 1.046. 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 1.047. The heading to Section 2001.353, Occupations
Code, is amended to read as follows:
Sec. 2001.353. DISCIPLINE OF LICENSE [AND REGISTRATION]
HOLDERS.
SECTION 1.048. Sections 2001.353(a), (b), and (c),
Occupations Code, are amended to read as follows:
(a) After a hearing, the executive director or commission
may suspend, revoke, or refuse to renew a license [or registration]
issued under this chapter for:
(1) failure to comply with this chapter or a
commission rule; or
(2) a reason that would allow or require the executive
director or commission to refuse to issue or renew a license [or
registration] of the same class.
(b) The executive director or commission may place on
probation a person whose license [or registration] is suspended.
If a license [or registration] suspension is probated, the
executive director or commission may require the person:
(1) to report regularly to the department [commission]
on the matters that are the basis of the probation;
(2) to limit the person's activities under the license
[or registration] in the manner prescribed by the executive
director or commission; or
(3) to take any other reasonable action prescribed by
the executive director or commission to address the matters that
are the basis of the probation.
(c) If the person fails to comply with the conditions of
probation, the executive director or commission may suspend or
revoke the person's license [or registration].
SECTION 1.049. 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 Texas Lottery Commission
[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 1.050. 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 1.051. Section 2001.409, Occupations Code, is
amended by adding Subsection (b) to read as follows:
(b) Nothing in this chapter shall be construed as
authorizing any game using a video lottery machine or machines. In
this section "video lottery machine" or "machine" means any
electronic video game machine that, on insertion of cash, is
available to play or simulate the play of a video game, including
but not limited to video poker, keno, and blackjack, utilizing a
video display and microprocessor in which the player may receive
free games or credits that can be redeemed for cash, coins, or
tokens or that directly dispenses cash, coins, or tokens.
SECTION 1.052. Section 2001.411(e), Occupations Code, is
amended to read as follows:
(e) The department [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 1.053. Section 2001.414, Occupations Code, is
amended to read as follows:
Sec. 2001.414. BINGO RECORDS. (a) The commission by rule
may provide for different recordkeeping procedures for licensed
authorized organizations by class based on the amount of the
organization's total [gross] receipts derived from the conduct of
bingo [of the organization].
(b) An organization conducting bingo must record on a cash
register all transactions for which it receives total [bingo gross]
receipts derived from the conduct of bingo in conformance with
commission rules relating to transaction recording specifications.
SECTION 1.054. Section 2001.415, Occupations Code, is
amended to read as follows:
Sec. 2001.415. ADVERTISEMENTS. (a) A person other than a
licensed authorized organization or a[,] licensed commercial
lessor[, or the commission] may not advertise bingo.
(b) A licensed authorized organization or[,] licensed
commercial lessor[, or the commission] may include in an
advertisement or promotion the amount of a prize or series of prizes
offered at a bingo occasion.
SECTION 1.055. Section 2001.420, Occupations Code, is
amended by adding Subsections (b-1), (d), (e), (f), and (g) to read
as follows:
(b-1) For purposes of Subsections (a) and (b), the value of
a merchandise bingo prize is the amount paid for the merchandise by
the licensed authorized organization. A merchandise bingo prize
includes bingo cards, bingo pull-tabs, the use of a card-minder,
bingo daubers, and other bingo merchandise awarded as a prize for
winning a bingo game.
(d) The commission may adopt for a bingo market region in
this state rules that affect the percentage of total receipts
derived from the conduct of bingo that is paid by licensed
authorized organizations within that market region as prizes for
bingo games if the commission determines that the percentages of
the total receipts paid for the prizes by the organizations within
that market region unreasonably reduce the amount of the
organizations' net proceeds in that market region.
(e) A rule adopted under Subsection (d):
(1) may establish a minimum price charged for a bingo
card or pull-tab or for use of a card-minding device;
(2) must allow flexibility in compliance with the rule
by the licensed authorized organizations within the affected bingo
market region to allow the organizations to achieve substantial
compliance without undue burden on the organizations or their
customers; and
(3) must apply equally to each licensed authorized
organization operating at a bingo premises within the bingo market
region.
(f) An individual bingo market region set by the commission
must include all the territory in a single county and may include
part of the territory in an adjacent county as necessary for the
commission to define a bingo market region under Subsection (d).
(g) The commission shall annually review the impact of a
rule adopted under Subsection (d) on the conduct of bingo within the
bingo market region and may amend or repeal the rule if the rule
does not serve the purposes of Subsection (d).
SECTION 1.056. Sections 2001.437(a), (b), and (d),
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 executive director [commission]; and
(2) the payment of taxes and 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.
(d) An applicant for a unit manager license must file with
the department [commission] a written application on a form
prescribed by the executive director [commission] that includes:
(1) the name and address of the applicant;
(2) information regarding whether the applicant, or
any officer, director, or employee of the applicant, has been
convicted of criminal fraud or a gambling or gambling-related
offense; and
(3) any other information required by commission rule.
SECTION 1.057. 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 1.058. Section 2001.439(c), Occupations Code, is
amended to read as follows:
(c) The department [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 1.059. Sections 2001.451(b), (c), (d), (e), (g),
(i), (j), and (k), Occupations Code, are amended to read as follows:
(b) Except as provided by Section 2001.502(a), a [A]
licensed authorized organization shall deposit in the bingo account
all funds derived from the conduct of bingo, less the amount awarded
as cash prizes under Sections 2001.420(a) and (b). A [Except as
provided by Subsection (b-1), a] deposit must be made not later than
the second business day after the day of the bingo occasion on which
the receipts were obtained.
(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.
(d) Except as permitted by Subsection (c), a licensed
authorized organization may not commingle [gross] receipts derived
from the conduct of bingo with other funds of the organization.
(e) Except as permitted by Subsection (c) of this section
and by Section 2001.453(2), a licensed authorized organization may
not transfer [gross] receipts derived from the conduct of bingo to
another account maintained by the organization.
(g) The bingo operations of a licensed authorized
organization must[:
[(1)] result in net proceeds in the amounts provided
by Section 2001.460 over the calendar year in which the license is
in effect [the organization's license period; or
[(2) if the organization has a two-year license,
result in net proceeds over each 12-month period that ends on an
anniversary of the date the two-year license was issued].
(i) Prize taxes [fees] held in escrow for remittance as
provided by this chapter [to the commission] are not included in the
calculation of operating capital under Subsection (h).
(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 1.060. 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 1.061. Subchapter J, Chapter 2001, Occupations
Code, is amended by adding Section 2001.460 to read as follows:
Sec. 2001.460. REQUIRED MINIMUM NET PROCEEDS. (a) If the
combined gross gaming revenue of the licensed authorized
organizations located at a single bingo premises exceeds $500,000
in a calendar year, the combined net proceeds of those
organizations for that calendar year may not be less than 10 percent
of the combined gross gaming revenue of those organizations.
(a-1) Notwithstanding Subsection (a), if the combined gross
gaming revenue of the licensed authorized organizations located at
a single bingo premises exceeds $500,000 in a calendar year, the
combined net proceeds of those organizations may not be:
(1) in 2016, less than six percent of the combined
gross gaming revenue of those organizations; and
(2) in 2017, less than eight percent of the combined
gross gaming revenue of those organizations.
(b) If the combined gross gaming revenue of the licensed
authorized organizations located at a single bingo premises is
equal to $500,000 or less in a calendar year, the combined net
proceeds of those organizations for that calendar year may not be
less than five percent of the combined gross gaming revenue of those
organizations.
(b-1) Notwithstanding Subsection (b) and subject to
Subsection (c), if the combined gross gaming revenue of the
licensed authorized organizations located at a single bingo
premises is equal to $500,000 or less in a calendar year, the
combined net proceeds of those organizations for that calendar year
may not be:
(1) in 2016, less than three percent of the combined
gross gaming revenue of those organizations; and
(2) in 2017, less than four percent of the combined
gross gaming revenue of those organizations.
(c) A licensed authorized organization located at a bingo
premises described by Subsection (b) that conducts not more than
two bingo occasions during any week during a calendar year is exempt
from the requirements of Subsection (b). The commission by rule may
impose minimum net proceeds requirements in amounts less than the
amounts required under Subsection (b) on the organizations located
at a premises to which this subsection applies.
(c-1) This subsection applies only to a bingo premises that
on January 1, 2015, was operated under an active lessor license and
was located in a county any part of which is within 75 miles of a
casino that has electronic gaming. Notwithstanding any other
subsection of this section, the minimum net proceeds requirement
for a single bingo premises described by this subsection during a
calendar year is:
(1) for a single bingo premises at which the licensed
authorized organizations have a combined gross gaming revenue that
exceeds $500,000, the lesser of:
(A) the amount determined using the percentage
required by this section; or
(B) $12,000 multiplied by the number of licensed
authorized organizations conducting bingo at that premises; and
(2) for a single bingo premises at which the licensed
authorized organizations have a combined gross gaming revenue equal
to $500,000 or less, the lesser of:
(A) the amount determined using the percentage
required by this section; or
(B) $6,000 multiplied by the number of licensed
authorized organizations conducting bingo at that premises.
(c-2) This subsection and Subsections (a-1), (b-1), and
(c-1) expire December 31, 2019.
(d) The department shall waive or reduce the minimum net
proceeds required by this section if:
(1) bingo has been conducted at the bingo premises for
less than 12 months;
(2) circumstances beyond the control of the licensed
authorized organizations operating at the bingo premises,
including force majeure, prevented the organizations from
satisfying the minimum net proceeds percentage;
(3) the licensed authorized organizations present a
business plan that the department determines reasonably
establishes procedures to satisfy the minimum net proceeds
percentage in the next calendar year; or
(4) based on an annual department survey of one or more
bingo markets, the department determines that legal or illegal
gaming in the area of the bingo premises affected the ability of the
organizations conducting bingo at that bingo premises to satisfy
the minimum net proceeds percentage.
(e) If the department waives or reduces the minimum net
proceeds percentage required by this section because of illegal
gaming, the department shall notify the county commissioners court
of the county in which each affected bingo premises is located and
the governing body of any municipality in which the premises is
located of the department's action and the reasons for that action.
SECTION 1.062. The heading to Subchapter K, Chapter 2001,
Occupations Code, is amended to read as follows:
SUBCHAPTER K. TAXES [AND PRIZE FEES]
SECTION 1.063. Section 2001.502, Occupations Code, is
amended to read as follows:
Sec. 2001.502. PRIZE TAX [FEE]. (a) A licensed authorized
organization shall[:
[(1)] collect from a person who wins a cash bingo prize
of more than $5 a tax [fee] in the amount of five percent of the
amount [or value] of the prize. Each quarter, the licensed
authorized organization shall:
(1) if a county or municipality in which the bingo game
is conducted voted to impose the prize tax before November 1, 2015:
[; and]
(A) [(2)] remit a tax [to the commission a fee]
in the amount of 50 [five] percent of the amount collected as the
prize tax under this subsection to:
(i) the county in which the bingo game is
conducted, if the county voted to impose the tax by that date and
the location at which bingo is conducted is not within the limits of
a municipality;
(ii) the municipality in which the bingo
game is conducted, if the municipality voted to impose the tax by
that date and the county in which the bingo game is conducted did
not vote to impose the tax by that date; or
(iii) in equal shares, the county and the
municipality in which the bingo game is conducted, if the county and
municipality each voted to impose the tax before that date; and
(B) deposit the remainder of the taxes collected
under this subsection in the general charitable fund of the
organization; or
(2) if a county or municipality is not entitled to a
percentage of the amount of taxes collected under this subsection,
deposit the taxes collected in the general charitable fund of the
organization [or value of all bingo prizes awarded].
(b) The governing body of a county or municipality that
voted to impose a prize tax under Subsection (a) may at any time
vote to discontinue the imposition of the tax.
(c) The tax required under Subsection (a) does not apply to
a merchandise prize, including bingo cards, bingo pull-tabs, use of
a card-minder, bingo daubers, and other bingo merchandise awarded
as a prize for winning a bingo game.
SECTION 1.064. The heading to Section 2001.504, Occupations
Code, is amended to read as follows:
Sec. 2001.504. PAYMENT AND REPORTING OF TAX [OR FEE].
SECTION 1.065. Section 2001.504(a), Occupations Code, is
amended to read as follows:
(a) A tax [or fee 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 commission] quarterly on
or before the 25th day of the month succeeding each calendar
quarter.
SECTION 1.066. 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 department [commission], 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
department [commission]; and
(B) keep records of all transactions connected
with the game available for department [commission] inspection.
SECTION 1.067. Section 2001.554(a), Occupations Code, is
amended to read as follows:
(a) A person commits an offense and the person's license is
subject to revocation under this chapter if the person:
(1) makes a false statement or material omission in an
application for a license under this chapter;
(2) fails to maintain records that fully and
accurately record each transaction connected with the conducting of
bingo, the leasing of premises to be used for bingo, or the
manufacture, sale, or distribution of bingo supplies or equipment;
(3) falsifies or makes a false entry in a book or
record if the entry relates to bingo, the disposition of bingo
proceeds, the application of rent received by a licensed authorized
organization, or the gross gaming revenue [receipts] from the
manufacture, sale, or distribution of bingo supplies or equipment;
(4) diverts or pays a portion of the net proceeds of
bingo to a person except in furtherance of one or more of the lawful
purposes provided by this chapter; or
(5) violates this chapter or a term of a license issued
under this chapter.
SECTION 1.068. Section 2001.555(b), Occupations Code, is
amended to read as follows:
(b) The immunity granted under this section does not extend
to a person:
(1) [knowingly] conducting or participating in bingo
under a license obtained by a false pretense, false statement, or
material omission made in an application for license or otherwise;
or
(2) [knowingly] permitting the conduct of bingo on
premises owned or leased by the person under a license known to the
person to have been obtained by a false pretense or statement.
SECTION 1.069. 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 commission by rule shall 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 the department [commission] considers important,
including:
(A) the amount of money derived from the conduct
of bingo at the premises;
(B) the compliance history of the premises; and
(C) the amount of time that has elapsed since the
date of the immediately preceding department [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 1.070. Sections 2001.558(a) and (d), Occupations
Code, are 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 executive
director [commission], the governing body, or the attorney general
may petition a court for injunctive relief to restrain the
violation.
(d) If the court finds that this chapter has been
[knowingly] violated, the court shall order all proceeds from the
illegal bingo to be forfeited to the appropriate governing body as a
civil penalty.
SECTION 1.071. Section 2001.559, Occupations Code, is
amended to read as follows:
Sec. 2001.559. REMEDIES NOT EXCLUSIVE. The executive
director or commission may suspend or revoke a license under
Section 2001.353 [2001.355], impose an administrative penalty
under Subchapter M, or both, depending on the severity of the
violation.
SECTION 1.072. Sections 2001.560(c), (c-1), (c-2), (d), 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 department
[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).
(d) The commission may set and the department may charge to
the license holder a fee in an amount reasonably necessary to
recover the cost of an authorized investigation or audit authorized
under this chapter.
(e) If the department [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 1.073. Section 2001.601, Occupations Code, is
amended to read as follows:
Sec. 2001.601. IMPOSITION OF PENALTY. The executive
director or commission may impose an administrative penalty against
a person who violates this chapter or a rule or order adopted by the
executive director or commission under this chapter.
SECTION 1.074. 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 1.075. 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 1.076. Section 404.073(c), Government Code, is
amended to read as follows:
(c) Interest that has been and that will be accrued or
earned from deposits made under a law to which this subsection
applies is state funds not subject to allocation or distribution to
taxing units, cities, or transportation authorities under that law.
This subsection applies to:
(1) Section 205.02, Alcoholic Beverage Code;
(2) [Section 2001.507, Occupations Code;
[(3)] Section 403.105(d) of this code;
(3) [(4)] Sections 321.501 and 321.504, Tax Code;
(4) [(5)] Sections 322.301 and 322.304, Tax Code; and
(5) [(6)] Sections 323.501 and 323.504, Tax Code.
SECTION 1.077. Section 467.002, Government Code, is amended
to read as follows:
Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
subject to 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 1.078. 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 1.079. 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 1.080. Section 467.033, Government Code, is amended
to read as follows:
Sec. 467.033. DIRECTOR OF LOTTERY OPERATIONS [DIVISION
DIRECTORS]. The executive director shall employ a director of
lottery operations who [to oversee each division. A division
director] serves at the will of the executive director and is
specifically exempted from Chapter 654.
SECTION 1.081. 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 1.082. 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 1.083. 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 1.084. (a) Sections 467.021(c) and 467.031,
Government Code, are repealed.
(b) The following provisions of the Occupations Code are
repealed:
(1) Section 2001.051(c);
(2) Section 2001.052;
(3) Section 2001.0541;
(4) Section 2001.058;
(5) Section 2001.060(b);
(6) Section 2001.101(b);
(7) Sections 2001.103(e) and (h);
(8) Section 2001.157;
(9) Section 2001.158(d);
(10) Section 2001.159(c);
(11) Sections 2001.211(b), (c), and (d);
(12) Section 2001.213;
(13) Section 2001.214(b);
(14) Section 2001.304;
(15) Section 2001.305;
(16) Section 2001.308;
(17) Section 2001.313;
(18) Section 2001.314;
(19) Section 2001.351;
(20) Section 2001.352;
(21) Section 2001.353(d);
(22) Section 2001.354;
(23) Section 2001.355;
(24) Section 2001.356;
(25) Section 2001.357;
(26) Section 2001.358;
(27) Section 2001.436(c);
(28) Section 2001.437(f);
(29) Section 2001.451(b-1);
(30) Section 2001.459(b);
(31) Section 2001.501;
(32) Section 2001.503;
(33) Sections 2001.504(b), (c), (d), and (e);
(34) Section 2001.507;
(35) Section 2001.508;
(36) Section 2001.509;
(37) Section 2001.510;
(38) Section 2001.511;
(39) Section 2001.512;
(40) Section 2001.513;
(41) Section 2001.514;
(42) Section 2001.515;
(43) Section 2001.553;
(44) Section 2001.602;
(45) Section 2001.603;
(46) Section 2001.604;
(47) Section 2001.605;
(48) Section 2001.606;
(49) Section 2001.607;
(50) Section 2001.608;
(51) Section 2001.609;
(52) Section 2001.610; and
(53) Section 2001.611.
(c) Section 10, Chapter 1057 (H.B. 3021), Acts of the 74th
Legislature, Regular Session, 1995, is repealed.
SECTION 1.085. (a) On September 1, 2015:
(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, 2015, 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, 2015, was an employee at the Texas
Lottery Commission primarily involved in administering or
enforcing Chapter 2001, Occupations Code.
(c) Not later than June 1, 2015, 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, 2015, 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, 2015, 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, 2015, 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, 2015, 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.
(h) A bond given by an applicant for a manufacturer's
license as required by Section 2001.204, Occupations Code, as
amended by this Act, on or after the effective date of this Act must
comply with Subchapter E, Chapter 2001, Occupations Code, as
amended by this Act.
SECTION 1.086. (a) The repeal by this Act of Section
2001.553, Occupations Code, does not apply to an offense committed
under that section before September 1, 2015. For purposes of this
section, an offense is committed before September 1, 2015, if any
element of the offense occurs before that date.
(b) An offense committed before September 1, 2015, is
covered by that section as it existed when the offense was
committed, and the former law is continued in effect for that
purpose.
SECTION 1.087. The changes in law made by this Act to
Chapter 2001, Occupations Code, apply only to a tax or fee charged
on or after September 1, 2015. A tax or fee charged before
September 1, 2015, is governed by the law in effect immediately
before that date, and the former law is continued in effect for that
purpose.
SECTION 1.088. (a) The governing body of a county or
municipality that was entitled to receive a portion of the prize fee
collected under former Section 2001.503, Occupations Code, as that
section existed immediately before the effective date of this Act,
may only continue receiving a portion of the prize tax collected
under Section 2001.502, Occupations Code, as amended by this Act,
after the effective date of this Act if the governing body:
(1) by majority vote of the members of the governing
body approves the continued receipt of funds under that section and
notifies the Texas Department of Licensing and Regulation of that
decision not later than November 1, 2015; and
(2) notifies each licensed authorized organization
within the county's or municipality's jurisdiction, as applicable,
of the continued quarterly imposition of the tax and the payment
information for the tax, including the name to which a check for the
tax payment is made and the mailing address to which the tax payment
must be sent.
(b) Not later than October 1, 2015, the Texas Department of
Licensing and Regulation shall notify the governing body of a
county or municipality that was entitled to receive a portion of the
prize fee collected under former Section 2001.503, Occupations
Code, as that section existed immediately before the effective date
of this Act, of the requirements for continued receipt of the prize
tax under that section as provided in Subsection (a) of this
section.
SECTION 1.089. (a) Not later than March 1, 2016, the Texas
Commission of Licensing and Regulation shall adopt the rules
necessary to implement the changes in law made by this Act.
(b) Section 2001.451, Occupations Code, as amended by this
Act, applies beginning January 1, 2016.
(c) Section 2001.502, Occupations Code, as amended by this
Act, applies to prize taxes collected on and after January 1, 2016.
Prize taxes collected before that date are governed by the law in
effect immediately before the effective date of this Act, and that
law continues in effect for that purpose.
ARTICLE 2. REGULATION OF AMUSEMENT REDEMPTION MACHINE GAME ROOMS
ON LICENSED BINGO PREMISES
SECTION 2.01. Subchapter E, Chapter 234, Local Government
Code, as added by Chapter 1377 (H.B. 1127), Acts of the 83rd
Legislature, Regular Session, 2013, is amended by adding Section
234.1331 to read as follows:
Sec. 234.1331. LICENSED BINGO PREMISES. (a) Except as
otherwise provided by this section, regulations adopted by the
commissioners court of a county as authorized by Section 234.133
apply to a location at which bingo is conducted under Chapter 2001,
Occupations Code, in the same manner as the regulations apply to
other premises subject to the regulations.
(b) This subsection applies only to a location at which
bingo was conducted on or before January 1, 2015, under a license
issued under Chapter 2001, Occupations Code. The regulations
authorized by Section 234.133 may not:
(1) restrict or prohibit the location of a game room at
a location to which this subsection applies;
(2) require signage or place regulations on the
windows or doors of a location to which this subsection applies;
(3) restrict the hours of operation of a game room at a
location to which this subsection applies; or
(4) apply to a location to which this subsection
applies in a manner that is different from a location that derives
more than 50 percent of its sales from the sale of food or
beverages, including alcohol and liquor sales.
SECTION 2.02. The following provisions are repealed:
(1) Section 234.132, Local Government Code, as added
by Chapter 1377 (H.B. 1127), Acts of the 83rd Legislature, Regular
Session, 2013; and
(2) Subchapter E, Chapter 234, Local Government Code,
as added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature,
Regular Session, 2013.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2015.
(b) Section 1.085 of this Act takes effect immediately if
this Act 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, that section takes effect September 1, 2015.