|
House Bill 1474 |
House Author: Geren |
|
Effective: 10-1-09 |
Senate Sponsor: Harris |
House Bill 1474 amends provisions of the Occupations Code relating to the operation and regulation of charitable bingo. The bill modifies provisions authorizing a request for an advisory opinion from the Texas Lottery Commission regarding compliance with state laws and commission rules relating to charitable bingo and requires the commission to meet certain reporting requirements relating to the adjusted gross receipts and net proceeds from bingo operations as reported by authorized organizations that are licensed to conduct bingo. The bill amends the requirements for an authorized organization to obtain such a license and the instructions for filing a license application, increases from 12 to 24 the maximum number of temporary licenses an authorized organization with an annual license may receive, and sets the same annual limit for the holder of a two-year license.
For a bingo license and a commercial lessor's license, House Bill 1474 requires the commission by rule to establish procedures to determine if the appropriate license fee was paid, removes a requirement relating to the computation of the recorded gross receipts to make that determination, provides additional options for the payment of license application or renewal fees, and removes the additional fee assessed for obtaining a two-year license by paying twice the amount of the annual license fee. The bill applies to a member of the board of directors of an authorized organization the prohibition against the commission issuing a license to such an organization if any of its officers have been convicted of certain offenses and meet other criteria. The bill amends the information that must be included on a license to conduct bingo, modifies the training requirements for personnel of a licensed authorized organization, and extends the deadlines for the commission to act on certain joint applications filed to change the premises or time for conducting bingo. The bill makes provisions relating to the issuance of a commercial lessor's license applicable to its renewal and removes language specifying the maximum rent that may be charged to the lessor for each bingo occasion conducted on the lessor's premises. The bill amends the requirements for submitting an application for a manufacturer's or distributor's license, extends the deadline for the holder of such a license to notify the commission of a change relating to a fact stated in the application, and includes as a sanction for failing to give the required notice the imposition of an administrative penalty or other administrative action.
House Bill 1474 entitles the commission to conduct an investigation of an applicant for or holder of a license to conduct bingo and other specified persons and to obtain criminal history record information maintained by the Department of Public Safety and certain other law enforcement agencies to assist in the investigation and makes a conforming change to the Government Code. The bill amends the actions the holder of a license to conduct bingo must take before changing the location at which it conducts bingo, clarifies that the requirement for receiving an amended license refers to an amended license for the new location, and amends various provisions relating to the commission's registry of approved bingo workers and the requirements for providing an identification card to such a worker. The bill specifies the actions a person may take to renew a license after its expiration date and the fees for a late license renewal, authorizes a person who files an application for such a renewal to continue to perform authorized bingo activities until the license is renewed or its renewal is denied, and establishes the renewal deadline and other requirements. The bill requires the commission, if notice under these provisions is required to be given to an authorized organization, to send the notice to the organization's bingo chairperson and to the appropriate commercial lessor, and changes the deadlines for notifying a license holder of a hearing for temporary license suspension and for the license holder to show cause why the license should not be temporarily suspended. The bill expands the criteria for determining the principal location for which a licensed authorized organization may conduct bingo, authorizes such an organization or unit to pay certain facility costs as a separate expense, removes an exemption relating to a system service provider's purchase of goods or services from a licensed manufacturer, provides for an organization's designation of certain individuals as bona fide members of the organization, and amends provisions relating to the conduct of a bingo occasion.
House Bill 1474 exempts a bingo unit from the franchise tax, changes the deadline for depositing bingo proceeds into the bingo account of a licensed authorized organization or unit, and requires such an account that bears interest to be maintained as a separate account. The bill revises provisions on the authorized transfer and commingling of money among and in the organization's accounts, and establishes requirements relating to an organization's net proceeds from bingo operations, the amount of operating capital a licensed authorized organization or unit is authorized to maintain in its bingo account, and the calculation of the operating capital. The bill requires the commission to adopt rules that allow a licensed authorized organization to retain a maximum amount of operating capital in the bingo account in excess of the prescribed amount under certain conditions, authorizes an organization to apply for a waiver of that requirement and of requirements relating to the disbursement of the organization's proceeds to charity, and authorizes the commission to grant the waiver under specified circumstances. The bill adds the option of an electronic funds transfer for the withdrawal of funds from the bingo account and requires that certain information relating to such a transfer be recorded in accordance with rules adopted by the commission. The bill amends provisions relating to the authorized uses of a bingo account, required disbursements to charity, expenses authorized to be incurred or paid in connection with the conduct of bingo, the prize fee a licensed authorized organization is required to collect from a winner of a bingo prize, and the reporting of expenses by such an organization.
House Bill 1474 extends the deadline by which the director of bingo operations is required to notify a person alleged to have committed a violation of provisions regulating the conduct of bingo and, after an election to legalize bingo in a political subdivision, extends the beginning date for which bingo is legalized or prohibited throughout the political subdivision and the date by which the political subdivision's governing body is required to notify the commission of the election results. The bill repeals provisions relating to the licensing of a system service provider, the transfer of a commercial lessor's license, and the requirement that an authorized organization holding such a license for a premises on which bingo is conducted to hold a license to conduct bingo at the same premises. The bill also repeals provisions relating to a manufacturer's license bond, the access to and confidentiality of certain information the commission is authorized to obtain from the Internal Revenue Service relating to a person's qualification for a license under these provisions, the notice to local authorities by an applicant for an authorized organization license or a commercial lessor license, a prohibition against the commission licensing more than two affiliated organizations to conduct bingo on the same premises, the rent charged by a licensed commercial lessor to a licensed authorized organization to conduct bingo, the use of a pull-tab dispenser in the operation of bingo, and the display on certain devices of a toll-free hotline for problem gamblers.
House Bill 1474 requires the commission to adopt the rules required by its provisions not later than April 1, 2010. The bill creates a temporary provision, set to expire January 1, 2013, that requires a licensed authorized organization with a balance in its bingo account of more than the maximum amount of operating capital allowed by these provisions to distribute the excess funds within a specified period, depending on the amount held, and authorizes the commission to waive these requirements on application and a showing of good cause by the organization.