| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to the conduct of charitable bingo. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 2001.002(19), Occupations Code, is |
|
|
amended to read as follows: |
|
|
(19) "Nonprofit organization" means an unincorporated |
|
|
association or a corporation that is incorporated or holds a |
|
|
certificate of authority under Chapter 22, Business Organizations |
|
|
Code [the Texas Non-Profit Corporation Act (Article 1396-1.01 et |
|
|
seq., Vernon's Texas Civil Statutes)]. The organization: |
|
|
(A) may not distribute any of its income to its |
|
|
members, officers, or governing body, other than as reasonable |
|
|
compensation for services; and |
|
|
(B) must have obtained tax exempt status under |
|
|
Section 501(c), Internal Revenue Code of 1986. |
|
|
SECTION 2. Section 2001.103, Occupations Code, is amended |
|
|
by amending Subsection (e) and adding Subsections (f-1) and (i) to |
|
|
read as follows: |
|
|
(e) Notwithstanding Subsection (c), an authorized |
|
|
organization that holds a regular [an annual] license to conduct |
|
|
bingo that is effective for one year may receive not more than 48 |
|
|
[24] temporary licenses during the 12-month period following the |
|
|
issuance or renewal of the license. The holder of a regular license |
|
|
that is effective for two years may receive not more than 48 [24] |
|
|
temporary licenses for each 12-month period that ends on an |
|
|
anniversary of the date the license was issued or renewed. |
|
|
(f-1) The commission shall provide for the on-demand |
|
|
electronic issuance of a temporary license requested under this |
|
|
section by the holder of a regular license. |
|
|
(i) The notice requirements of Sections 2001.305(b) and (c) |
|
|
do not apply to a temporary license issued to the holder of a |
|
|
regular license. |
|
|
SECTION 3. Sections 2001.305(b) and (c), Occupations Code, |
|
|
are amended to read as follows: |
|
|
(b) Except as provided by Section 2001.103(i), immediately |
|
|
[Immediately] after issuing a license, the commission shall send a |
|
|
copy of the license to the appropriate governing body. The |
|
|
governing body shall file the copy of the license in a central file |
|
|
containing licenses issued under this chapter. |
|
|
(c) Except as provided by Section 2001.103(i), not [Not] |
|
|
later than the 10th day after the date a license is issued, the |
|
|
commission shall give written notice of the issuance of the license |
|
|
to: |
|
|
(1) the police department of the municipality in which |
|
|
bingo will be conducted, if bingo is to be conducted in a |
|
|
municipality; or |
|
|
(2) the sheriff of the county in which bingo will be |
|
|
conducted, if bingo is to be conducted outside a municipality. |
|
|
SECTION 4. Section 2001.413, Occupations Code, is amended |
|
|
to read as follows: |
|
|
Sec. 2001.413. PAYMENT [ADMISSION CHARGE] REQUIRED. Except |
|
|
as provided by Section 2001.4155, a licensed authorized |
|
|
organization may not offer or provide to a person the opportunity to |
|
|
play bingo without payment [charge]. |
|
|
SECTION 5. Section 2001.420(b), Occupations Code, is |
|
|
amended to read as follows: |
|
|
(b) A person may not offer or award on a single bingo |
|
|
occasion prizes with an aggregate value of more than $5,000 |
|
|
[$2,500] for all bingo games other than: |
|
|
(1) pull-tab bingo; or |
|
|
(2) bingo games that award individual prizes of $50 or |
|
|
less. |
|
|
SECTION 6. Section 2001.435(b), Occupations Code, is |
|
|
amended to read as follows: |
|
|
(b) Each member of a unit shall deposit into the unit's |
|
|
bingo account all funds derived from the conduct of bingo, less the |
|
|
amount awarded as cash prizes [under Sections 2001.420(a) and (b)]. |
|
|
The deposit shall be made not later than the third [second] business |
|
|
day after the day of the bingo occasion on which the receipts were |
|
|
obtained. |
|
|
SECTION 7. Sections 2001.451(b), (g), and (i), Occupations |
|
|
Code, are amended to read as follows: |
|
|
(b) Except as provided by Section 2001.502(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)]. Except as |
|
|
provided by Subsection (b-1), a deposit must be made not later than |
|
|
the third business day after the day of the bingo occasion on which |
|
|
the receipts were obtained. |
|
|
(g) The bingo operations of a licensed authorized |
|
|
organization must[: |
|
|
[(1) result in net proceeds over the organization's |
|
|
license period; or |
|
|
[(2) if the organization has a two-year license,] |
|
|
result in net proceeds over each 24-month [12-month] period that |
|
|
ends on the second [an] anniversary of the date the [two-year] |
|
|
license was issued. |
|
|
(i) Prize fees [held in escrow for remittance to the |
|
|
commission] are not included in the calculation of operating |
|
|
capital under Subsection (h) if the prize fees are: |
|
|
(1) held in escrow for remittance to: |
|
|
(A) the commission; or |
|
|
(B) a county or municipality; or |
|
|
(2) retained by a licensed authorized organization. |
|
|
SECTION 8. Sections 2001.502(b) and (c), Occupations Code, |
|
|
are amended to read as follows: |
|
|
(b) Notwithstanding Subsection (a)(2), each quarter, a |
|
|
licensed authorized organization or unit that collects a prize fee |
|
|
under Subsection (a) for a bingo game conducted in a county or |
|
|
municipality that was entitled to receive a portion of a bingo prize |
|
|
fee as of January 1, 2019, shall remit 50 percent of the amount |
|
|
collected as the prize fee to the commission and shall remit or |
|
|
deposit the remainder of the amount collected as the prize fee as |
|
|
follows: |
|
|
(1) if the county [or municipality] in which the bingo |
|
|
game is conducted voted before November 1, 2019, to impose the prize |
|
|
fee and[, remit 50 percent of the amount collected as the prize fee |
|
|
to: |
|
|
[(A) the county that voted to impose the fee by |
|
|
that date, provided] the location at which the bingo game is |
|
|
conducted: |
|
|
(A) is not within the boundaries of a |
|
|
municipality, remit 50 percent of the amount collected as the prize |
|
|
fee to the county [that voted to impose the prize fee by that date]; |
|
|
or |
|
|
(B) is within the boundaries of a [the] |
|
|
municipality that: |
|
|
(i) voted before November 1, 2019, to |
|
|
impose the prize fee, remit 50 percent of the amount collected as |
|
|
the prize fee in equal shares to the county and municipality [by |
|
|
that date, provided the county in which the bingo game is conducted |
|
|
did not vote to impose the fee by that date]; or |
|
|
(ii) did not vote before November 1, 2019, |
|
|
to impose the prize fee, remit 25 percent of the amount collected as |
|
|
the prize fee to the county and deposit the remaining amount in the |
|
|
manner described by Subdivision (3); |
|
|
[(C) in equal shares, the county and the |
|
|
municipality, provided each voted to impose the fee before that |
|
|
date; or] |
|
|
(2) if the county in which the bingo game is conducted |
|
|
did not vote before November 1, 2019, to impose the prize fee and |
|
|
the location at which the bingo game is conducted is within the |
|
|
boundaries of a municipality that voted before November 1, 2019, to |
|
|
impose the prize fee: |
|
|
(A) remit 25 percent of the amount collected as |
|
|
the prize fee to the municipality; and |
|
|
(B) deposit the remaining amount in the manner |
|
|
described by Subdivision (3); and |
|
|
(3) if neither the county or municipality in which the |
|
|
bingo game is conducted voted before November 1, 2019, to impose the |
|
|
prize fee, deposit the remainder of the amount collected as the |
|
|
prize fee in the general charitable fund of the organization or on a |
|
|
pro rata basis to the general funds of the organizations comprising |
|
|
the unit, as applicable, to be used for the charitable purposes of |
|
|
the organization or organizations. |
|
|
(c) The governing body of a county or municipality that |
|
|
voted to impose a prize fee under Subsection (b) [(b)(1)] may at any |
|
|
time vote to discontinue the imposition of the fee. If a county or |
|
|
municipality votes on or after November 1, 2019, to discontinue the |
|
|
fee, the fees to which the county or municipality, as applicable, |
|
|
was entitled before the vote shall be collected by the licensed |
|
|
authorized organization or unit as defined by Section 2001.431 and |
|
|
deposited as provided by Subsection (b)(3) [(b)(2)]. |
|
|
SECTION 9. Section 2001.513(a), Occupations Code, is |
|
|
amended to read as follows: |
|
|
(a) At any time within three years after a person is |
|
|
delinquent in the payment of an amount of the fee on prizes due to |
|
|
the commission, the commission may collect the amount under this |
|
|
section. |
|
|
SECTION 10. Section 2001.514(a), Occupations Code, is |
|
|
amended to read as follows: |
|
|
(a) To secure payment due to the commission of the fee on |
|
|
prizes imposed under this subchapter, each license holder shall |
|
|
furnish to the commission: |
|
|
(1) a cash bond; |
|
|
(2) a bond from a surety company chartered or |
|
|
authorized to do business in this state; |
|
|
(3) certificates of deposit; |
|
|
(4) certificates of savings; |
|
|
(5) United States treasury bonds; |
|
|
(6) subject to the approval of the commission, an |
|
|
assignment of negotiable stocks or bonds; or |
|
|
(7) other security as the commission considers |
|
|
sufficient. |
|
|
SECTION 11. Section 2001.515, Occupations Code, is amended |
|
|
to read as follows: |
|
|
Sec. 2001.515. COMMISSION'S DUTIES. The commission shall |
|
|
perform all functions incident to the administration, collection, |
|
|
enforcement, and operation of the fee on prizes imposed under this |
|
|
subchapter for amounts due to the commission, including any |
|
|
necessary reconciliation of a prize fee held by the commission that |
|
|
is due to a county or municipality. |
|
|
SECTION 12. Sections 2001.420(a) and 2001.459(b), |
|
|
Occupations Code, are repealed. |
|
|
SECTION 13. Notwithstanding any other law, if an executive |
|
|
order issued by the governor before the effective date of this Act |
|
|
had the effect of prohibiting the conduct of bingo occasions under |
|
|
Chapter 2001, Occupations Code, the payment by a licensed |
|
|
authorized organization to a licensed commercial lessor of rent |
|
|
charges that were incurred and paid during the period in which the |
|
|
conduct of bingo was prohibited are not subject to: |
|
|
(1) the limits on rent charged provided by Section |
|
|
2001.406(a), Occupations Code; or |
|
|
(2) the requirement that an item of expense for the |
|
|
conduct of bingo be reasonable or necessary provided by Section |
|
|
2001.458(a), Occupations Code. |
|
|
SECTION 14. Not later than January 1, 2024, the Texas |
|
|
Lottery Commission shall adopt the rules necessary to implement the |
|
|
changes in law made by this Act to Chapter 2001, Occupations Code. |
|
|
SECTION 15. This Act takes effect September 1, 2023. |
|
|
|
|
|
* * * * * |