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A BILL TO BE ENTITLED
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AN ACT
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relating to the conduct of charitable bingo. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2001.002(19), Occupations Code, is |
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amended to read as follows: |
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(19) "Nonprofit organization" means an unincorporated |
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association or a corporation that is incorporated or holds a |
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certificate of authority under Chapter 22, Business Organizations |
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Code [the Texas Non-Profit Corporation Act (Article 1396-1.01 et |
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seq., Vernon's Texas Civil Statutes)]. The organization: |
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(A) may not distribute any of its income to its |
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members, officers, or governing body, other than as reasonable |
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compensation for services; and |
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(B) must have obtained tax exempt status under |
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Section 501(c), Internal Revenue Code of 1986. |
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SECTION 2. Section 2001.103, Occupations Code, is amended |
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by amending Subsection (e) and adding Subsections (f-1) and (i) to |
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read as follows: |
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(e) Notwithstanding Subsection (c), an authorized |
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organization that holds an annual license to conduct bingo may |
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receive not more than 48 [24] temporary licenses during the |
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12-month period following the issuance or renewal of the license. |
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The holder of a license that is effective for two years may receive |
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not more than 48 [24] temporary licenses for each 12-month period |
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that ends on an anniversary of the date the license was issued or |
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renewed. |
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(f-1) The commission shall provide for the on-demand |
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electronic issuance of a temporary license requested under this |
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section by the holder of a regular license. |
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(i) The notice requirements of Sections 2001.305(b) and (c) |
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do not apply to a temporary license issued to the holder of a |
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regular license. |
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SECTION 3. Sections 2001.305(b) and (c), Occupations Code, |
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are amended to read as follows: |
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(b) Except as provided by Section 2001.103(i), immediately |
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[Immediately] after issuing a license, the commission shall send a |
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copy of the license to the appropriate governing body. The |
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governing body shall file the copy of the license in a central file |
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containing licenses issued under this chapter. |
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(c) Except as provided by Section 2001.103(i), not [Not] |
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later than the 10th day after the date a license is issued, the |
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commission shall give written notice of the issuance of the license |
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to: |
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(1) the police department of the municipality in which |
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bingo will be conducted, if bingo is to be conducted in a |
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municipality; or |
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(2) the sheriff of the county in which bingo will be |
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conducted, if bingo is to be conducted outside a municipality. |
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SECTION 4. Section 2001.413, Occupations Code, is amended |
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to read as follows: |
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Sec. 2001.413. PAYMENT [ADMISSION CHARGE] REQUIRED. Except |
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as provided by Section 2001.4155, a licensed authorized |
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organization may not offer or provide to a person the opportunity to |
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play bingo without payment [charge]. |
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SECTION 5. Section 2001.420(b), Occupations Code, is |
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amended to read as follows: |
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(b) A person may not offer or award on a single bingo |
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occasion prizes with an aggregate value of more than $3,500 |
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[$2,500] for all bingo games other than: |
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(1) pull-tab bingo; or |
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(2) bingo games that award individual prizes of $50 or |
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less. |
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SECTION 6. Section 2001.435(b), Occupations Code, is |
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amended to read as follows: |
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(b) Each member of a unit shall deposit into the unit's |
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bingo account all funds derived from the conduct of bingo, less the |
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amount awarded as cash prizes under Section 2001.420(b) [Sections |
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2001.420(a) and (b)]. The deposit shall be made not later than the |
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third [second] business day after the day of the bingo occasion on |
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which the receipts were obtained. |
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SECTION 7. Sections 2001.451(b), (g), and (i), Occupations |
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Code, are amended to read as follows: |
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(b) Except as provided by Section 2001.502(a), a licensed |
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authorized organization shall deposit in the bingo account all |
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funds derived from the conduct of bingo, less the amount awarded as |
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cash prizes under Section 2001.420(b) [Sections 2001.420(a) and |
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(b)]. Except as provided by Subsection (b-1), a deposit must be |
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made not later than the third business day after the day of the |
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bingo occasion on which the receipts were obtained. |
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(g) The bingo operations of a licensed authorized |
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organization must[: |
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[(1) result in net proceeds over the organization's |
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license period; or |
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[(2) if the organization has a two-year license,] |
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result in net proceeds over each 24-month [12-month] period that |
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ends on the second [an] anniversary of the date the [two-year] |
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license was issued. |
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(i) Prize fees [held in escrow for remittance to the |
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commission] are not included in the calculation of operating |
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capital under Subsection (h) if the prize fees are: |
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(1) held in escrow for remittance to: |
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(A) the commission; or |
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(B) a local government; or |
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(2) retained by a licensed authorized organization. |
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SECTION 8. Sections 2001.502(b) and (c), Occupations Code, |
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are amended to read as follows: |
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(b) Notwithstanding Subsection (a)(2), each quarter, a |
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licensed authorized organization or unit that collects a prize fee |
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under Subsection (a) for a bingo game conducted in a county or |
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municipality that was entitled to receive a portion of a bingo prize |
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fee as of January 1, 2019, shall remit 50 percent of the amount |
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collected as the prize fee to the commission and shall remit or |
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deposit the remainder of the amount collected as the prize fee as |
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follows: |
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(1) if the county [or municipality] in which the bingo |
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game is conducted voted before November 1, 2019, to impose the prize |
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fee and[, remit 50 percent of the amount collected as the prize fee |
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to: |
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[(A) the county that voted to impose the fee by |
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that date, provided] the location at which the bingo game is |
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conducted: |
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(A) is not within the boundaries of a |
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municipality, remit 50 percent of the amount collected as the prize |
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fee to the county [that voted to impose the prize fee by that date]; |
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or |
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(B) is within the boundaries of a [the] |
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municipality that: |
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(i) voted before November 1, 2019, to |
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impose the prize fee, remit 50 percent of the amount collected as |
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the prize fee in equal shares to the county and municipality [by |
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that date, provided the county in which the bingo game is conducted |
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did not vote to impose the fee by that date]; or |
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(ii) did not vote before November 1, 2019, |
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to impose the prize fee, remit 25 percent of the amount collected as |
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the prize fee to the county and deposit the remaining amount in the |
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manner described by Subdivision (3); |
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[(C) in equal shares, the county and the |
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municipality, provided each voted to impose the fee before that |
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date; or] |
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(2) if the county in which the bingo game is conducted |
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did not vote before November 1, 2019, to impose the prize fee and |
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the location at which the bingo game is conducted is within the |
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boundaries of a municipality that voted before November 1, 2019, to |
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impose the prize fee: |
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(A) remit 25 percent of the amount collected as |
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the prize fee to the municipality; and |
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(B) deposit the remaining amount in the manner |
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described by Subdivision (3); and |
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(3) if neither the county or municipality in which the |
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bingo game is conducted voted before November 1, 2019, to impose the |
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prize fee, deposit the remainder of the amount collected as the |
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prize fee in the general charitable fund of the organization or on a |
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pro rata basis to the general funds of the organizations comprising |
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the unit, as applicable, to be used for the charitable purposes of |
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the organization or organizations. |
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(c) The governing body of a county or municipality that |
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voted to impose a prize fee under Subsection (b) [(b)(1)] may at any |
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time vote to discontinue the imposition of the fee. If a county or |
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municipality votes on or after November 1, 2019, to discontinue the |
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fee, the fees to which the county or municipality, as applicable, |
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was entitled before the vote shall be collected by the licensed |
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authorized organization or unit as defined by Section 2001.431 and |
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deposited as provided by Subsection (b)(3) [(b)(2)]. |
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SECTION 9. Section 2001.513(a), Occupations Code, is |
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amended to read as follows: |
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(a) At any time within three years after a person is |
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delinquent in the payment of an amount of the fee on prizes due to |
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the commission, the commission may collect the amount under this |
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section. |
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SECTION 10. Section 2001.514(a), Occupations Code, is |
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amended to read as follows: |
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(a) To secure payment due to the commission of the fee on |
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prizes imposed under this subchapter, each license holder shall |
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furnish to the commission: |
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(1) a cash bond; |
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(2) a bond from a surety company chartered or |
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authorized to do business in this state; |
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(3) certificates of deposit; |
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(4) certificates of savings; |
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(5) United States treasury bonds; |
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(6) subject to the approval of the commission, an |
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assignment of negotiable stocks or bonds; or |
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(7) other security as the commission considers |
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sufficient. |
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SECTION 11. Section 2001.515, Occupations Code, is amended |
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to read as follows: |
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Sec. 2001.515. COMMISSION'S DUTIES. The commission shall |
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perform all functions incident to the administration, collection, |
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enforcement, and operation of the fee on prizes imposed under this |
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subchapter that is due to the commission, including any necessary |
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reconciliation of a prize fee held by the commission that is due to |
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a municipality or county. |
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SECTION 12. Sections 2001.420(a) and 2001.459(b), |
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Occupations Code, are repealed. |
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SECTION 13. Notwithstanding any other law, if an executive |
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order issued by the governor before the effective date of this Act |
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had the effect of prohibiting the conduct of bingo occasions under |
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Chapter 2001, Occupations Code, the payment by a licensed |
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authorized organization to a licensed commercial lessor of rent |
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charges that were incurred and paid during the period in which the |
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conduct of bingo was prohibited are not subject to: |
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(1) the limits on rent charged provided by Section |
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2001.406(a), Occupations Code; or |
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(2) the requirement that an item of expense for the |
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conduct of bingo be reasonable or necessary provided by Section |
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2001.458(a), Occupations Code. |
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SECTION 14. Not later than January 1, 2022, the Texas |
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Lottery Commission shall adopt the rules necessary to implement the |
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changes in law made by this Act to Chapter 2001, Occupations Code. |
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SECTION 15. This Act takes effect September 1, 2021. |
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* * * * * |