H.B. No. 2771
1-1 AN ACT
1-2 relating to the regulation of bingo; providing penalties; imposing
1-3 taxes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 2(10), (20), and (22), Bingo Enabling
1-6 Act (Article 179d, Vernon's Texas Civil Statutes), are amended to
1-7 read as follows:
1-8 (10) "Net proceeds" means:
1-9 (A) in relation to the gross receipts from one
1-10 or more occasions of bingo, the amount that remains after deducting
1-11 the reasonable sums necessarily and actually expended for
1-12 advertising, security, repairs to premises and equipment, bingo
1-13 supplies and equipment, prizes, stated rental, or mortgage and
1-14 insurance expenses, if any, bookkeeping, legal, or accounting
1-15 services, fees for personnel as permitted under Subsection (c) of
1-16 Section 19 of this Act, janitorial services and utility supplies
1-17 and services, if any, license fees, and the fee on prizes imposed
1-18 by Section 19b of this Act <gross receipts tax>; and
1-19 (B) in relation to the gross rent or other
1-20 consideration received by an organization licensed to conduct bingo
1-21 for the use of its premises, fixtures, or equipment by another
1-22 licensee, the amount that remains after deducting the reasonable
1-23 sums necessarily and actually expended for janitorial services and
1-24 utility supplies directly attributable to the use of the premises,
2-1 fixtures, or equipment, if any.
2-2 (20) "Commission" means the Texas Lottery <Alcoholic
2-3 Beverage> Commission.
2-4 (22) "Bingo equipment" means equipment actually used,
2-5 made, or sold for the purpose of use in bingo games and includes
2-6 machines or other devices from which balls or other items are
2-7 withdrawn to determine the letters and numbers or other symbols to
2-8 be called, the balls or items themselves, bingo cards, and any
2-9 other device commonly used in the direct operation of the game.
2-10 "Bingo equipment" does not include:
2-11 (A) a bingo game set commonly manufactured and
2-12 sold as a child's game for a retail price of $20 or less unless the
2-13 set or a part of the set is actually used in a bingo game subject
2-14 to regulation under this Act; or
2-15 (B) commonly available component parts of bingo
2-16 equipment such as light bulbs, fuses, or bingo balls.
2-17 SECTION 2. Sections 11(f) and (t), Bingo Enabling Act
2-18 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
2-19 as follows:
2-20 (f) A series of prizes offered or awarded on any one bingo
2-21 occasion for bingo games other than instant bingo may not aggregate
2-22 more than $2,500. <A series of prizes offered or awarded on any
2-23 one bingo occasion for games of instant bingo may not aggregate
2-24 more than $1,500.>
2-25 (t) With the prior written consent of the commission, a
2-26 licensed authorized organization may make an occasional sale of
2-27 bingo cards or of a used bingo flashboard or blower to another
3-1 licensed authorized organization.
3-2 SECTION 3. Section 12(d), Bingo Enabling Act (Article 179d,
3-3 Vernon's Texas Civil Statutes), is amended to read as follows:
3-4 (d) An authorized organization may receive a temporary
3-5 license for the conduct of bingo games on filing with the
3-6 commission an application, on a form prescribed by the commission,
3-7 accompanied by a $25 license fee. A temporary license is valid for
3-8 four hours during any one day. An organization may receive no more
3-9 than six temporary licenses in a calendar year. An organization
3-10 operating under a temporary license is subject to the taxes and
3-11 fees <gross receipts tax> authorized or imposed by this Act and the
3-12 other provisions of this Act to the extent they can be made
3-13 applicable.
3-14 SECTION 4. Section 13(n), Bingo Enabling Act (Article 179d,
3-15 Vernon's Texas Civil Statutes), is amended to read as follows:
3-16 (n) A commercial license to lease bingo premises to a
3-17 licensed authorized organization may be issued only to:
3-18 (1) an authorized organization licensed to conduct
3-19 bingo that owns or leases premises on which bingo is or will be
3-20 conducted or an association of authorized organizations licensed to
3-21 conduct bingo that jointly own or lease premises on which bingo is
3-22 or will be conducted and that the organization or association
3-23 leases or offers for lease to one or more other authorized
3-24 organizations to conduct bingo;
3-25 (2) a person who leases premises to a single licensed
3-26 authorized organization that subleases or will sublease the
3-27 premises to one or more other licensed authorized organizations to
4-1 conduct bingo on the premises; or
4-2 (3) a person who leases premises for the total control
4-3 and exclusive use of only one licensed organization as that
4-4 organization's primary business office.
4-5 SECTION 5. Sections 13(c), (f), and (j), Bingo Enabling Act
4-6 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
4-7 as follows:
4-8 (c) The commission shall issue to an applicant a license for
4-9 the conduct of bingo, or a license renewal, on payment of a license
4-10 fee in accordance with Subdivision (1) of Subsection (d) of this
4-11 section, if the commission determines that:
4-12 (1) the member or members of the applicant designated
4-13 in the application to conduct bingo are active members of the
4-14 applicant;
4-15 (2) no person under whose name the game or games of
4-16 bingo will be conducted, and no person who will work at the
4-17 proposed bingo games, has been convicted of a felony, gambling
4-18 offense, criminal fraud, or a crime of moral turpitude for which
4-19 less than 10 years have elapsed since termination of any sentence,
4-20 parole, mandatory supervision, or probation served for the offense;
4-21 (3) the games are to be conducted in accordance with
4-22 this Act;
4-23 (4) the proceeds of the games are to be disposed of as
4-24 provided by this Act;
4-25 (5) <no prize will be offered or given in excess of
4-26 the limits set by Section 11(e) of this Act in any single game and
4-27 that the aggregate of all prizes offered and given in all of the
5-1 games conducted on a single occasion under the license will not
5-2 exceed the limits set by Section 11(f) of this Act;>
5-3 <(6)> the applicant has made and can demonstrate
5-4 significant progress toward the accomplishment of the purposes of
5-5 the organization during the 12-month period preceding the date of
5-6 application for a license or license renewal; and
5-7 (6) <(7)> all persons who will conduct, promote, or
5-8 administer the proposed bingo games are active, bona fide members
5-9 of the applicant organization and all other persons who will assist
5-10 in conducting, promoting, or administering the proposed bingo games
5-11 are persons authorized to do so by Section 19 of this Act.
5-12 (f) A person who leases premises on which bingo is conducted
5-13 is not required to be a licensed commercial lessor unless the
5-14 person leases directly to a licensed authorized organization <The
5-15 commission may not issue a license to an applicant seeking to
5-16 conduct bingo on the premises of a licensed commercial lessor if
5-17 the premises presently owned or occupied by the applicant are
5-18 adequate and suitable for conducting bingo games. The burden is on
5-19 the applicant to establish by clear and convincing proof that the
5-20 premises it presently owns or occupies are not adequate and
5-21 suitable for conducting games. It is the intent of this subsection
5-22 to encourage licensed organizations to use their own facilities if
5-23 possible, to discourage the commercialization of bingo, and to
5-24 maximize the availability of bingo proceeds for application by an
5-25 authorized organization to its authorized purposes>.
5-26 (j) A license may not be transferred by a licensee, except
5-27 that, in accordance with commission rules, a licensed commercial
6-1 lessor who is an individual may transfer the individual's license
6-2 to a corporation formed by the individual.
6-3 SECTION 6. Section 13(o), Bingo Enabling Act (Article 179d,
6-4 Vernon's Texas Civil Statutes), is amended to read as follows:
6-5 (o) Notwithstanding Subsection (n) of this section, a person
6-6 who was licensed as a commercial lessor on June 10, 1989, whose
6-7 license has been kept in effect since that date, and who is
6-8 otherwise eligible for the license may renew the license as a
6-9 commercial lessor of bingo premises <according to the terms of the
6-10 license as those terms existed on June 10, 1989>.
6-11 SECTION 7. Section 13c, Bingo Enabling Act (Article 179d,
6-12 Vernon's Texas Civil Statutes), is amended by adding Subsection (k)
6-13 to read as follows:
6-14 (k) The commission shall require the licensee to prominently
6-15 post the toll-free "800" telephone number established by the Texas
6-16 Commission on Alcohol and Drug Abuse under Section 461.018, Health
6-17 and Safety Code, on signs provided by the Texas Council on Problem
6-18 and Compulsive Gambling near the exit and at other appropriate
6-19 places on the premises at each bingo occasion.
6-20 SECTION 8. The Bingo Enabling Act (Article 179d, Vernon's
6-21 Texas Civil Statutes) is amended by adding Section 13f to read as
6-22 follows:
6-23 Sec. 13f. ACCESS TO INTERNAL REVENUE SERVICE INFORMATION.
6-24 (a) The commission may obtain information relating to a person's
6-25 qualification for licensing under this Act from the Internal
6-26 Revenue Service under a contract between the comptroller and the
6-27 Internal Revenue Service on:
7-1 (1) an operator or an applicant to act as an operator
7-2 of bingo occasions; or
7-3 (2) an applicant for a license to act or a person who
7-4 holds a license to act as a commercial lessor.
7-5 (b) All information received by the commission from the
7-6 Internal Revenue Service is confidential and may only be used as
7-7 provided by the contract between the comptroller and the Internal
7-8 Revenue Service under which the information was obtained.
7-9 (c) A person commits an offense if the person releases or
7-10 discloses any information obtained under this section except on
7-11 court order. An offense under this subsection is a Class A
7-12 misdemeanor.
7-13 (d) The comptroller shall adopt rules governing the custody
7-14 and use of information obtained under this section.
7-15 SECTION 9. Section 16(e), Bingo Enabling Act (Article 179d,
7-16 Vernon's Texas Civil Statutes), is amended to read as follows:
7-17 (e) After a hearing, the <The> commission may suspend or
7-18 revoke any license issued under this Act for failure to comply with
7-19 this Act or a rule adopted by the commission under this Act, or for
7-20 any reason that would allow or require the commission to refuse to
7-21 issue or renew a license of the same class. The commission may
7-22 summarily suspend a license issued under this Act for failure to
7-23 comply with this Act or a rule adopted by the commission under this
7-24 Act if the commission determines that the licensee's continued
7-25 operation may constitute an immediate threat to the health, safety,
7-26 morals, or welfare of the public. The Administrative Procedure and
7-27 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
8-1 Statutes) does not apply to the commission in the enforcement and
8-2 administration of a summary suspension under this section.
8-3 SECTION 10. The Bingo Enabling Act (Article 179d, Vernon's
8-4 Texas Civil Statutes) is amended by adding Sections 16a and 16b to
8-5 read as follows:
8-6 Sec. 16a. ADMINISTRATIVE PENALTIES. (a) The commission may
8-7 assess an administrative penalty against the holder of a license
8-8 under this Act who violates a provision of this Act or a rule or
8-9 order adopted by the commission under this Act as provided by this
8-10 section.
8-11 (b) The penalty for each violation may be in an amount not
8-12 to exceed $1,000. Each day a violation continues or occurs may be
8-13 considered a separate violation for purposes of penalty assessment.
8-14 (c) In determining the amount of the penalty, the executive
8-15 director of the commission shall consider:
8-16 (1) the seriousness of the violation, including the
8-17 nature, circumstances, extent, and gravity of the prohibited acts;
8-18 (2) the history of previous violations;
8-19 (3) the amount necessary to deter future violations;
8-20 (4) efforts to correct the violation; and
8-21 (5) any other matter that justice may require.
8-22 (d) If, after investigation of a possible violation and the
8-23 facts surrounding that possible violation, the executive director
8-24 determines that a violation has occurred, the executive director
8-25 may issue a violation report stating the facts on which the
8-26 conclusion that a violation occurred is based, recommending that an
8-27 administrative penalty under this section be imposed on the person
9-1 charged, and recommending the amount of that proposed penalty. The
9-2 executive director shall base the recommended amount of the
9-3 proposed penalty on the seriousness of the violation determined by
9-4 consideration of the factors set forth in Subsection (c) of this
9-5 section.
9-6 (e) Not later than the 14th day after the date on which the
9-7 report is issued, the executive director shall give written notice
9-8 of the report to the person charged. The notice shall include a
9-9 brief summary of the charges, a statement of the amount of the
9-10 penalty recommended, and a statement of the right of the person
9-11 charged to a hearing on the occurrence of the violation or the
9-12 amount of the penalty, or both the occurrence of the violation and
9-13 the amount of the penalty.
9-14 (f) Not later than the 20th day after the date on which
9-15 notice is received, the person charged may accept the determination
9-16 of the executive director made under Subsection (d) of this
9-17 section, including the recommended penalty, or make a written
9-18 request for a hearing on the determination.
9-19 (g) If the person charged with the violation accepts the
9-20 determination of the executive director, the executive director
9-21 shall issue an order approving the determination and ordering the
9-22 payment of the recommended penalty.
9-23 (h) If the person charged requests a hearing or fails to
9-24 timely respond to the notice, the executive director shall set a
9-25 hearing and give notice of the hearing. The hearing examiner shall
9-26 make findings of fact and conclusions of law and promptly issue to
9-27 the commission a proposal for decision as to the occurrence of the
10-1 violation, including a recommendation as to the amount of the
10-2 proposed penalty if a penalty is warranted. Based on the findings
10-3 of fact, conclusions of law, and recommendations of the hearing
10-4 examiner, the executive director by order may find a violation has
10-5 occurred and may assess a penalty or may find that no violation has
10-6 occurred. All proceedings under this subsection are subject to the
10-7 Administrative Procedure and Texas Register Act (Article 6252-13a,
10-8 Vernon's Texas Civil Statutes) and its subsequent amendments.
10-9 (i) The executive director shall give notice of the
10-10 executive director's order to the person charged. The notice shall
10-11 include:
10-12 (1) the findings of fact and conclusions of law
10-13 separately stated;
10-14 (2) the amount of the penalty ordered, if any;
10-15 (3) a statement of the right of the person charged to
10-16 judicial review of the executive director's order, if any; and
10-17 (4) other information required by law.
10-18 (j) Not later than the 30th day after the date the executive
10-19 director's order is final as provided by Section 16(c),
10-20 Administrative Procedure and Texas Register Act (Article 6252-13a,
10-21 Vernon's Texas Civil Statutes), the person shall:
10-22 (1) pay the amount of the penalty;
10-23 (2) pay the amount of the penalty and file a petition
10-24 for judicial review contesting the occurrence of the violation, the
10-25 amount of the penalty, or both the occurrence of the violation and
10-26 the amount of the penalty; or
10-27 (3) without paying the amount of the penalty, file a
11-1 petition for judicial review contesting the occurrence of the
11-2 violation, the amount of the penalty, or both the occurrence of the
11-3 violation and the amount of the penalty.
11-4 (k) Within the 30-day period, a person who acts under
11-5 Subsection (j)(3) of this section may:
11-6 (1) stay enforcement of the penalty by:
11-7 (A) paying the amount of the penalty to the
11-8 court for placement in an escrow account; or
11-9 (B) giving to the court a supersedeas bond
11-10 approved by the court for the amount of the penalty and that is
11-11 effective until all judicial review of the commission's order is
11-12 final; or
11-13 (2) request the court to stay enforcement of the
11-14 penalty by:
11-15 (A) filing with the court a sworn affidavit of
11-16 the person stating that the person is financially unable to pay the
11-17 amount of the penalty and is financially unable to give the
11-18 supersedeas bond; and
11-19 (B) giving a copy of the affidavit to the
11-20 executive director by certified mail.
11-21 (l) If the executive director receives a copy of an
11-22 affidavit under Subsection (k)(2) of this section, the executive
11-23 director may file with the court not later than the fifth day after
11-24 the date the copy is received a contest to the affidavit. The
11-25 court shall hold a hearing on the facts alleged in the affidavit as
11-26 soon as practicable and shall stay the enforcement of the penalty
11-27 on finding that the alleged facts are true. The person who files
12-1 an affidavit has the burden of proving that the person is
12-2 financially unable to pay the amount of the penalty and to give a
12-3 supersedeas bond.
12-4 (m) If the person does not pay the amount of the penalty and
12-5 the enforcement of the penalty is not stayed, the executive
12-6 director may refer the matter to the attorney general for
12-7 collection of the amount of the penalty.
12-8 (n) Judicial review of the order of the commission:
12-9 (1) is instituted by filing a petition as provided by
12-10 Section 19, Administrative Procedure and Texas Register Act
12-11 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
12-12 subsequent amendments; and
12-13 (2) is under the substantial evidence rule.
12-14 (o) If the court sustains the occurrence of the violation,
12-15 the court may uphold or reduce the amount of the penalty and order
12-16 the person to pay the full or reduced amount of the penalty. If
12-17 the court does not sustain the occurrence of the violation, the
12-18 court shall order that no penalty is owed.
12-19 (p) When the judgment of the court becomes final, the court
12-20 shall proceed under this subsection. If the person paid the amount
12-21 of the penalty and if that amount is reduced or is not upheld by
12-22 the court, the court shall order that the appropriate amount plus
12-23 accrued interest be remitted to the person. The rate of the
12-24 interest is the rate charged on loans to depository institutions by
12-25 the New York Federal Reserve Bank, and the interest shall be paid
12-26 for the period beginning on the date the penalty was paid and
12-27 ending on the date the penalty is remitted. If the person gave a
13-1 supersedeas bond and if the amount of the penalty is not upheld by
13-2 the court, the court shall order the release of the bond. If the
13-3 person gave a supersedeas bond and if the amount of the penalty is
13-4 reduced, the court shall order the release of the bond after the
13-5 person pays the amount.
13-6 (q) A penalty collected under this section shall be remitted
13-7 to the comptroller for deposit in the general revenue fund.
13-8 (r) All proceedings under this section are subject to the
13-9 Administrative Procedure and Texas Register Act (Article 6252-13a,
13-10 Vernon's Texas Civil Statutes) and its subsequent amendments.
13-11 Sec. 16b. REMEDIES NOT EXCLUSIVE. The commission may
13-12 suspend or revoke a license under Section 16(e) of this Act, impose
13-13 an administrative penalty under Section 16a of this Act, or both,
13-14 depending on the severity of the violation.
13-15 SECTION 11. Sections 19(c) and (d), Bingo Enabling Act
13-16 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
13-17 as follows:
13-18 (c) Items of expense may not be incurred or paid in
13-19 connection with the conduct of any game of bingo under any license
13-20 issued under this Act except those that are reasonable and are
13-21 necessarily expended for advertising, security, repairs to premises
13-22 and equipment, bingo supplies and equipment, prizes, stated rental
13-23 or mortgage and insurance expenses, if any, bookkeeping, legal, or
13-24 accounting services related to bingo, fees in amounts authorized by
13-25 the commission for callers, cashiers, and ushers, janitorial
13-26 services and utility supplies and services, if any, and license
13-27 fees. The value of any health insurance or health benefit provided
14-1 by a licensed authorized organization to an employee may not be
14-2 included in the amount of a fee authorized by the commission.
14-3 (d) <A person may not be an operator for more than one
14-4 licensed authorized organization, without regard to the person's
14-5 membership status in licensed authorized organizations.> The
14-6 commission may adopt rules restricting involvement in the conduct,
14-7 promotion, or administration of bingo by a licensed authorized
14-8 commercial lessor, by a person having an interest in or who is
14-9 active in a licensed authorized commercial lessor, or by a person
14-10 related in the first degree by consanguinity or affinity, as
14-11 determined under Article 5996h, Revised Statutes, to a person
14-12 having an interest in or active in a licensed authorized commercial
14-13 lessor, without regard to a person's membership status in a
14-14 licensed authorized organization.
14-15 SECTION 12. Section 19a(k), Bingo Enabling Act (Article
14-16 179d, Vernon's Texas Civil Statutes), is amended to read as
14-17 follows:
14-18 (k) Before the end of each quarter, each licensed authorized
14-19 organization shall disburse for charitable purposes an amount not
14-20 less than 35 percent of the organization's adjusted gross receipts
14-21 from the last preceding quarter, less the amount of <any credits
14-22 allowed by rule for bingo gross receipts taxes and> authorized
14-23 expenses not to exceed six percent of the gross receipts. For
14-24 purposes of this subsection, adjusted gross receipts means gross
14-25 receipts plus any consideration received from the rental of
14-26 premises for bingo by the authorized organization, less the amount
14-27 of prizes paid in the preceding quarter. If a licensed authorized
15-1 organization fails to meet the requirements of this subsection for
15-2 a quarter, the commission in applying appropriate sanctions may
15-3 consider whether, taking into account the amount required to be
15-4 distributed during that quarter and the three preceding quarters
15-5 and the charitable distributions for each of those quarters, the
15-6 organization has distributed a total amount sufficient to have met
15-7 the 35 percent requirement for that quarter and the three preceding
15-8 quarters combined.
15-9 SECTION 13. Sections 19b(b) and (c), Bingo Enabling Act
15-10 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
15-11 as follows:
15-12 (b) The fee imposed by this section is five <three> percent
15-13 of the amount or value of the prize.
15-14 (c) A licensed authorized organization shall report and
15-15 remit the fee imposed by this section at the same time and in the
15-16 same manner as the gross rentals <receipts> tax under Section 20 of
15-17 this Act.
15-18 SECTION 14. The Bingo Enabling Act (Article 179d, Vernon's
15-19 Texas Civil Statutes) is amended by adding Section 19c to read as
15-20 follows:
15-21 Sec. 19c. LOCAL SHARE OF FEE ON PRIZES. (a) A county or
15-22 municipality that imposed a gross receipts tax on the conduct of
15-23 bingo games as of January 1, 1993, is entitled to a share of the
15-24 fee imposed by Section 19b of this Act.
15-25 (b) Except as provided by Subsection (d) of this section, a
15-26 county to which this section applies is entitled to 50 percent of
15-27 the fee collected under Section 19b of this Act on a prize awarded
16-1 at a bingo game conducted in the county.
16-2 (c) Except as provided by Subsection (d) of this section, a
16-3 municipality to which this section applies is entitled to 50
16-4 percent of the fee collected under Section 19b of this Act on a
16-5 prize awarded at a bingo game conducted in the municipality.
16-6 (d) If a county and municipality are both entitled to a
16-7 share of the fee imposed by Section 19b of this Act:
16-8 (1) the county is entitled to 25 percent of the fee
16-9 collected under Section 19b of this Act on a prize awarded at a
16-10 bingo game conducted in the county; and
16-11 (2) the municipality is entitled to 25 percent of the
16-12 fee collected under Section 19b of this Act on a prize awarded at a
16-13 bingo game conducted in the municipality.
16-14 SECTION 15. Section 20, Bingo Enabling Act (Article 179d,
16-15 Vernon's Texas Civil Statutes), is amended to read as follows:
16-16 Sec. 20. REPORTING AND DUE DATE OF TAXES AND FEES. The
16-17 taxes and fees authorized or imposed by this Act are due and
16-18 payable by the licensee or any person conducting bingo games
16-19 without a license to the state treasurer quarterly on or before the
16-20 15th day of the month succeeding each calendar quarter. The report
16-21 must be filed under oath on forms prescribed by the commission.
16-22 SECTION 16. Section 23, Bingo Enabling Act (Article 179d,
16-23 Vernon's Texas Civil Statutes), is amended to read as follows:
16-24 Sec. 23. Report of Receipts, Expenses. (a) Each licensee
16-25 conducting bingo games shall submit quarterly to the commission and
16-26 to the comptroller of public accounts a report under oath
16-27 containing the following information:
17-1 (1) the amount of the gross receipts derived from the
17-2 games;
17-3 (2) each item of expense incurred or paid;
17-4 (3) each item of expenditure made or to be made, the
17-5 name and address of each person to whom each item has been paid or
17-6 is to be paid, with a detailed description of the merchandise
17-7 purchased or the services rendered;
17-8 (4) the net proceeds derived from the games;
17-9 (5) the use to which the proceeds have been or are to
17-10 be applied; and
17-11 (6) a list of prizes offered and given, with their
17-12 respective values.
17-13 (b) Each licensee shall maintain records to substantiate the
17-14 contents of each report.
17-15 (c) A copy of each report shall be furnished to the
17-16 appropriate governing body.
17-17 (d) A person is not eligible for a license or a license
17-18 renewal unless all required reports, tax returns, and requested
17-19 information have been filed in accordance with this Act.
17-20 (e) <The commission by rule may provide for different
17-21 tax-reporting periods and record-keeping procedures for licensees
17-22 by class based on the amount of gross receipts received by a
17-23 licensee.>
17-24 <(f)> The commission shall make any required reports
17-25 available to the comptroller of public accounts as the comptroller
17-26 may direct.
17-27 SECTION 17. Section 26, Bingo Enabling Act (Article 179d,
18-1 Vernon's Texas Civil Statutes), is amended to read as follows:
18-2 Sec. 26. TRANSMITTALS, REFUNDS, AND COLLECTIONS. (a) The
18-3 revenue collected from the fee on prizes imposed by Section 19b of
18-4 this Act and sent to the state shall be deposited to the credit of
18-5 a special account in the general revenue fund.
18-6 (b) The commission shall determine the total amount of
18-7 revenue deposited in the account from prizes awarded at bingo games
18-8 in each county and each municipality entitled to a share under
18-9 Section 19c of this Act.
18-10 (c) Quarterly, the commission shall send to each county and
18-11 municipality entitled under Section 19c of this Act to a share of
18-12 the fee on prizes the county's or municipality's share as
18-13 determined under Sections 19c(b)-(d) of this Act.
18-14 (d) The commission shall transfer any remaining amounts in
18-15 the account to a nondedicated account in the general revenue fund.
18-16 (e) Each jurisdiction's share of the fee on prizes <all
18-17 gross receipts taxes> collected under <Section 3 of> this Act <by
18-18 the commission> shall be transmitted to the treasurer or the
18-19 officer of the jurisdiction performing the functions of that office
18-20 by the commission payable to the jurisdiction <periodically as
18-21 promptly as feasible. Transmittals required under this Act shall
18-22 be made at least twice in each state fiscal year>. The funds so
18-23 transmitted may be used by the jurisdiction for any purpose for
18-24 which the general funds of the jurisdiction may be used.
18-25 <(b) Before transmitting funds under Subsection (a) of this
18-26 section, the commission shall deduct two percent of the sum
18-27 collected from each jurisdiction during such period and shall
19-1 deposit the funds in the state treasury to the credit of a special
19-2 fund to be known as the bingo enforcement fund. The fund may be
19-3 used only for the administration and enforcement of this Act.>
19-4 (f) <(c)> The commission is authorized to retain in the
19-5 suspense account of any jurisdiction a portion of the
19-6 jurisdiction's share of the fee on prizes <tax> collected under
19-7 this Act. The balance so retained in the suspense account may not
19-8 exceed five percent of the amount remitted to the jurisdiction.
19-9 The commission is authorized to make refunds from the suspense
19-10 account of any jurisdiction for overpayments made to such accounts
19-11 and to redeem dishonored checks and drafts deposited to the credit
19-12 of the suspense account of the jurisdiction.
19-13 (g) <(d)> When any jurisdiction entitled to a share of the
19-14 fee on prizes prohibits the conduct of bingo as provided by
19-15 Sections 4-9 of this Act <imposes the gross receipts tax and
19-16 thereafter abolishes the tax>, the commission may retain in the
19-17 suspense account of the jurisdiction for one year five percent of
19-18 the final remittance to each such jurisdiction at the time of
19-19 termination of collection of the tax in the jurisdiction to cover
19-20 possible refunds for overpayment of the tax and to redeem
19-21 dishonored checks and drafts deposited to the credit of the
19-22 account. After one year has elapsed after the effective date of
19-23 the prohibition of bingo <abolition of the tax> in the
19-24 jurisdiction, the commission shall remit the balance in the account
19-25 to the jurisdiction and close the account.
19-26 (h) <(e)> Interest earned on all fees on prizes <taxes>
19-27 collected by the commission under this Act before distribution to
20-1 the local jurisdiction, including interest earned from the suspense
20-2 accounts retained under this section, shall be credited to the
20-3 General Revenue Fund.
20-4 SECTION 18. Sections 31, 32, and 33, Bingo Enabling Act
20-5 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
20-6 as follows:
20-7 Sec. 31. Determination if no Return Made. If any licensee
20-8 fails to make a required return, or if any person conducts bingo
20-9 without a license, the commission shall make an estimate of the
20-10 prizes awarded at each occasion of bingo <gross receipts of the
20-11 licensee or person conducting bingo without a license> or of the
20-12 gross rentals received by a licensee for the rental of premises on
20-13 which bingo is conducted. The estimate shall be made for the
20-14 period in respect to which the licensee or other person failed to
20-15 make a return and shall be based on any information covering any
20-16 period that is in the possession of the commission or may come into
20-17 the possession of the commission. On the basis of this estimate,
20-18 the commission shall compute and determine the amount required to
20-19 be paid to the state, adding to the sum a penalty of 10 percent of
20-20 the amount. One or more determinations may be made for one or more
20-21 periods.
20-22 Sec. 32. Jeopardy Determination. (a) If the commission
20-23 believes that the collection of any gross rental tax or fee on
20-24 prizes or any amount of tax or fee on prizes required to be
20-25 remitted to the state or the amount of any determination will be
20-26 jeopardized by delay, the commission shall make a determination of
20-27 the tax or fee on prizes or amount of tax or fee on prizes required
21-1 to be collected, noting that fact upon the determination. The
21-2 amount determined is due and payable immediately.
21-3 (b) If the amount specified in the determination is not paid
21-4 within 20 days after service of notice thereof on the licensee
21-5 against whom the determination is made, the amount becomes final at
21-6 the expiration of the 20 days unless a petition for redetermination
21-7 is filed within the 20 days. A delinquency penalty of 10 percent
21-8 of the tax or fee on prizes or amount of the tax or fee on prizes
21-9 and interest at the rate of 10 percent a year shall attach to the
21-10 amount of the tax or fee on prizes or the amount of the tax or fee
21-11 on prizes required to be collected.
21-12 Sec. 33. Application of Tax Laws. Subtitle B, Title 2, Tax
21-13 Code, applies to the administration, collection, and enforcement of
21-14 the gross rentals tax <taxes authorized or> imposed under Section
21-15 2B of this Act and the fee on prizes imposed under Section 19b of
21-16 this Act except as modified by this Act. In applying the
21-17 provisions <For purposes of the application> of that subtitle to
21-18 the gross rentals tax <taxes authorized or> imposed under Section
21-19 2B of this Act and the fee on prizes imposed under Section 19b of
21-20 this Act only, the fee on prizes is treated as if it were a tax and
21-21 the powers and duties assigned to the comptroller under that
21-22 subtitle are assigned to the commission.
21-23 SECTION 19. Section 35(a), Bingo Enabling Act (Article 179d,
21-24 Vernon's Texas Civil Statutes), is amended to read as follows:
21-25 (a) A person lawfully conducting or participating in the
21-26 conduct of bingo or permitting the conduct on any premises owned or
21-27 leased by him or it under any license lawfully issued under this
22-1 Act is not liable to prosecution or conviction for violation of any
22-2 provision of the Penal Code, as amended, or any other law or
22-3 ordinance to the extent that such conduct is specifically
22-4 authorized by this Act. The immunity does not extend to any person
22-5 knowingly conducting or participating in the conduct of bingo under
22-6 any license obtained by any false pretense, <or by any> false
22-7 statement, or material omission made in any application for license
22-8 or otherwise or permitting the conduct on any premises owned or
22-9 leased by him or it of any game of bingo conducted under any
22-10 license known to him or it to have been obtained by any false
22-11 pretense or statement.
22-12 SECTION 20. Section 36, Bingo Enabling Act (Article 179d,
22-13 Vernon's Texas Civil Statutes), is amended to read as follows:
22-14 Sec. 36. OFFENSES; REVOCATION <FORFEITURE> OF LICENSE;
22-15 INELIGIBILITY TO APPLY FOR LICENSE. (a) A person commits an
22-16 offense and the <forfeits a> license is subject to revocation
22-17 <issued> under this Act if the person:
22-18 (1) makes a false statement or material omission in an
22-19 application for a license authorized to be issued under this Act;
22-20 (2) fails to maintain records that fully and truly
22-21 record all transactions connected with the conducting of bingo, the
22-22 leasing of premises to be used for the conduct of bingo, or the
22-23 manufacture, sale, or distribution of bingo supplies, devices, or
22-24 equipment;
22-25 (3) falsifies or makes any false entry in any books or
22-26 records so far as they relate to the conduct of bingo, to the
22-27 disposition of bingo proceeds, to the application of rent received
23-1 by any authorized organization, or to the gross receipts realized
23-2 from the manufacture, sale, or distribution of bingo supplies,
23-3 devices, or equipment;
23-4 (4) diverts or pays any portion of the net proceeds of
23-5 any game of bingo to any person except in furtherance of one or
23-6 more of the lawful purposes prescribed by this Act; or
23-7 (5) violates this Act or a term of a license issued
23-8 under this Act.
23-9 (b) An offense under Subsection (a)(2), (3), or (5) of this
23-10 section is a Class C misdemeanor, unless it is shown on the trial
23-11 of the offense that the person has been convicted previously under
23-12 this section, in which event it is a Class B misdemeanor. An
23-13 offense under Subsection (a)(1) or (a)(4) of this section is a
23-14 Class A misdemeanor. This subsection does not apply to an offense
23-15 committed under Section 39(b) or Section 40 of this Act.
23-16 (c) A person whose license is revoked <forfeited> under this
23-17 section may not apply for another license under this Act until one
23-18 year has elapsed from the date of revocation <forfeiture>.
23-19 SECTION 21. Sections 37(a), (b), and (c), Bingo Enabling Act
23-20 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
23-21 as follows:
23-22 (a) At any time within three years after a person is
23-23 delinquent in the payment of any amount of required gross rentals
23-24 tax or fee on prizes due, the commission may collect the amount as
23-25 provided by this section.
23-26 (b) The commission shall seize any property, real or
23-27 personal, of the person and sell the property, or a sufficient part
24-1 of it, at public auction to pay the amount due with any interest or
24-2 penalties on account of the seizure and sale. Any seizure made to
24-3 collect the gross rentals <a> tax or the fee on prizes due shall be
24-4 only of property of the licensee not exempt from execution under
24-5 the laws of this state.
24-6 (c) Notice of the sale and the time and place of the sale
24-7 shall be given to the delinquent person in writing at least 20 days
24-8 before the date set for the sale as provided by this subsection.
24-9 The notice shall be enclosed in an envelope addressed to the
24-10 person<, in case of a sale for limited sales tax due,> at his last
24-11 known address or place of business<, and in case of a sale for use
24-12 taxes due, at his last known residence or place of business in this
24-13 state>. It shall be deposited in the United States mail, postage
24-14 prepaid. The notice shall also be published for at least 10 days
24-15 before the date set for the sale in a newspaper of general
24-16 circulation published in the county in which the property seized is
24-17 to be sold. If there is no newspaper of general circulation in the
24-18 county, notice shall be posted in three public places in the county
24-19 at least 20 days before the date set for the sale. The notice
24-20 shall contain a description of the property to be sold, a statement
24-21 of the amount due, including interest, penalties, and costs, the
24-22 name of the delinquent, and the further statement that unless the
24-23 amount due, interest, penalties, and costs are paid on or before
24-24 the time fixed in the notice for the sale, the property, or so much
24-25 of it as may be necessary, will be sold in accordance with the law
24-26 and the notice.
24-27 SECTION 22. Section 38, Bingo Enabling Act (Article 179d,
25-1 Vernon's Texas Civil Statutes), is amended to read as follows:
25-2 Sec. 38. Bonds or Securities. (a) Each licensee under this
25-3 Act shall furnish to the commission a cash bond, a bond from a
25-4 surety company chartered or authorized to do business in this
25-5 state, certificates of deposit, certificates of savings or U.S.
25-6 treasury bonds or, subject to the discretion and approval of the
25-7 commission, an assignment of negotiable stocks or bonds, or such
25-8 other security as the commission may deem sufficient to secure the
25-9 payment of required tax on gross rentals or fee on prizes <taxes>
25-10 under this Act. The commission shall fix the amount of the bond or
25-11 security in each case, taking into consideration the amount of
25-12 money that has or is expected to become due from the licensee under
25-13 this Act. The amount of the bond or security required by the
25-14 commission may not exceed three times the amount of the licensee's
25-15 average quarterly reports.
25-16 (b) On failure to pay the gross rentals tax or the fee on
25-17 prizes <taxes> imposed under this Act, the commission may notify
25-18 both the licensee and any surety of the delinquency by jeopardy or
25-19 deficiency determination. If payment is not made when due, the
25-20 commission may forfeit the bond or security or any part thereof.
25-21 (c) If the licensee ceases to conduct bingo games and
25-22 relinquishes his license, the commission shall authorize the
25-23 release of all bonds and security on a determination that no
25-24 amounts of gross rentals tax or fee on prizes remain due and
25-25 payable under this Act.
25-26 SECTION 23. Section 39(b), Bingo Enabling Act (Article 179d,
25-27 Vernon's Texas Civil Statutes), is amended to read as follows:
26-1 (b) Any person conducting, promoting, or administering a
26-2 game commits a felony of the third degree unless the person is
26-3 conducting, promoting, or administering a game:
26-4 (1) in accordance with a valid license issued under
26-5 this Act;
26-6 (2) within the confines of a home for purposes of
26-7 amusement or recreation when:
26-8 (A) no player or other person furnishes anything
26-9 of more than nominal value for the opportunity to participate;
26-10 (B) participation in the game does not exceed 15
26-11 players; and
26-12 (C) the prizes awarded or to be awarded are
26-13 nominal;
26-14 (3) on behalf of an organization of persons 60 years
26-15 of age or over, a senior citizens' association, a senior citizens'
26-16 community center program operated or funded by a governmental
26-17 entity, or the patients in a hospital or nursing home or residents
26-18 of a retirement home solely for the purpose of amusement and
26-19 recreation of its members, residents, or patients, when:
26-20 (A) no player or other person furnishes anything
26-21 of more than nominal value for the opportunity to participate; and
26-22 (B) the prizes awarded or to be awarded are
26-23 nominal; or
26-24 (4) on behalf of a business conducting the game for
26-25 promotional or advertising purposes if:
26-26 (A) the game is conducted by or through a
26-27 newspaper or a radio or television station;
27-1 (B) participation in the game is open to the
27-2 general public and is not limited to customers of the business;
27-3 (C) playing materials are furnished without
27-4 charge to any person on request; and
27-5 (D) no player is required to furnish anything of
27-6 value for the opportunity to participate.
27-7 SECTION 24. The Bingo Enabling Act (Article 179d, Vernon's
27-8 Texas Civil Statutes) is amended by adding Section 43 to read as
27-9 follows:
27-10 Sec. 43. BINGO ADVISORY COMMITTEE. (a) The commission may
27-11 appoint a bingo advisory committee consisting of nine members. The
27-12 committee members shall be appointed to represent a balance of
27-13 interests including representatives of:
27-14 (1) the general public;
27-15 (2) charities that operate bingo games; and
27-16 (3) commercial and charity lessors that participate in
27-17 the bingo industry.
27-18 (b) A bingo advisory committee member serves at the pleasure
27-19 of the commission. A member of the committee is not entitled to
27-20 receive compensation for serving as a member. A member is entitled
27-21 to reimbursement for reasonable expenses incurred in performing
27-22 duties as a member of the committee.
27-23 (c) The bingo advisory committee may:
27-24 (1) advise the commission on the needs and problems of
27-25 the state's bingo industry;
27-26 (2) comment on rules involving bingo during their
27-27 development and before their final adoption unless an emergency
28-1 requires immediate action by the commission;
28-2 (3) report annually to the commission on the
28-3 committee's activities; and
28-4 (4) perform other duties as determined by the
28-5 commission.
28-6 (d) The bingo advisory committee may meet quarterly or as
28-7 requested by the commission.
28-8 (e) The commission may adopt rules to govern the operations
28-9 of the bingo advisory committee.
28-10 SECTION 25. Section 112.058, Tax Code, is amended by adding
28-11 Subsection (f) to read as follows:
28-12 (f) All protest payments of taxes imposed by and collected
28-13 for the state under the Bingo Enabling Act (Article 179d, Vernon's
28-14 Texas Civil Statutes) that become due on or after September 1,
28-15 1993, are governed by Subchapter J, Chapter 403, Government Code.
28-16 SECTION 26. Sections 2A, 3, 4(b), 13(p), 13c(j), 16(c), 21,
28-17 and 22, Bingo Enabling Act (Article 179d, Vernon's Texas Civil
28-18 Statutes), are repealed.
28-19 SECTION 27. This Act takes effect September 1, 1993, except
28-20 that Section 16 of this Act takes effect October 1, 1993, but only
28-21 if H.B. No. 1587, 73rd Legislature, Regular Session, 1993, or S.B.
28-22 No. 550, 73rd Legislature, Regular Session, 1993, is enacted and
28-23 becomes law. If neither H.B. No. 1587, 73rd Legislature, Regular
28-24 Session, 1993, nor S.B. No. 550, 73rd Legislature, Regular Session,
28-25 1993, is enacted and becomes law, this Act has no effect.
28-26 SECTION 28. (a) As soon as practicable after the commission
28-27 appoints an executive director or acting executive director, but
29-1 not later than April 1, 1994:
29-2 (1) all powers, duties, rights, and obligations of the
29-3 Texas Alcoholic Beverage Commission relating to the administration
29-4 and regulation of bingo are transferred to the Texas Lottery
29-5 Commission;
29-6 (2) except as provided by Subsections (b) and (c) of
29-7 this section, all assets, liabilities, personnel, equipment, data,
29-8 documents, facilities, and other items of the Texas Alcoholic
29-9 Beverage Commission relating to the administration and regulation
29-10 of bingo are transferred to the Texas Lottery Commission; and
29-11 (3) any appropriation to the Texas Alcoholic Beverage
29-12 Commission relating to the administration and regulation of bingo
29-13 is transferred to the Texas Lottery Commission.
29-14 (b) The Texas Alcoholic Beverage Commission may decide
29-15 whether to transfer to the Texas Lottery Commission:
29-16 (1) personnel who perform both duties that relate to
29-17 bingo regulation and duties that do not relate to bingo regulation;
29-18 and
29-19 (2) assets used both in bingo regulation and
29-20 activities other than bingo regulation.
29-21 (c) The Texas Lottery Commission may decide whether to
29-22 accept personnel from the Texas Alcoholic Beverage Commission.
29-23 (d) The officers and employees of the Texas Alcoholic
29-24 Beverage Commission shall cooperate fully with the reorganization.
29-25 (e) A transfer of functions under Subsection (a) of this
29-26 section shall occur on the date specified in an interagency
29-27 contract between the Texas Lottery Commission and the Texas
30-1 Alcoholic Beverage Commission.
30-2 (f) Notwithstanding the changes made by this Act to the
30-3 Bingo Enabling Act (Article 179d, Vernon's Texas Civil Statutes),
30-4 the Texas Alcoholic Beverage Commission retains all powers and
30-5 duties relating to the regulation of bingo until the effective date
30-6 of the transfer under Subsection (a) of this section, and:
30-7 (1) a reference in the Bingo Enabling Act (Article
30-8 179d, Vernon's Texas Civil Statutes) to the Texas Lottery
30-9 Commission is considered to be a reference to the Texas Alcoholic
30-10 Beverage Commission until that date; and
30-11 (2) a reference in the Bingo Enabling Act (Article
30-12 179d, Vernon's Texas Civil Statutes) to the executive director of
30-13 the Texas Lottery Commission is considered to be a reference to the
30-14 administrator of the Texas Alcoholic Beverage Commission until that
30-15 date.
30-16 SECTION 29. (a) A change in law made by this Act does not
30-17 affect:
30-18 (1) the validity of any action taken by the Texas
30-19 Alcoholic Beverage Commission under the Bingo Enabling Act (Article
30-20 179d, Vernon's Texas Civil Statutes) before the effective date of
30-21 the change in law; or
30-22 (2) a civil, criminal, or administrative proceeding
30-23 completed before the effective date of this Act.
30-24 (b) A change in law made by this Act does not affect the
30-25 validity of a civil, criminal, or administrative proceeding,
30-26 including licensing or rulemaking, in progress on the effective
30-27 date of the change in law. A civil, criminal, or administrative
31-1 proceeding under the Bingo Enabling Act (Article 179d, Vernon's
31-2 Texas Civil Statutes) that is in progress on the effective date of
31-3 a transfer of functions under Section 28 of this Act continues as
31-4 if it had been initiated by the Texas Lottery Commission under the
31-5 law in effect on the effective date of the transfer.
31-6 (c) All forms, rules, and procedures adopted by the Texas
31-7 Alcoholic Beverage Commission for the administration and
31-8 enforcement of the Bingo Enabling Act (Article 179d, Vernon's Texas
31-9 Civil Statutes) and in effect on the effective date of a transfer
31-10 of functions under Section 28 of this Act remain in effect on or
31-11 after that date as if adopted by the Texas Lottery Commission until
31-12 the earlier of:
31-13 (1) the date the form, rule, or procedure is amended,
31-14 repealed, withdrawn, or otherwise superseded by the Texas Lottery
31-15 Commission; or
31-16 (2) the first anniversary of the effective date of a
31-17 transfer of functions under Section 28 of this Act.
31-18 (d) Before the first anniversary of the effective date of a
31-19 transfer of functions under Section 28 of this Act, the Texas
31-20 Lottery Commission shall review each form, rule, and procedure
31-21 adopted by the Texas Alcoholic Beverage Commission under the Bingo
31-22 Enabling Act (Article 179d, Vernon's Texas Civil Statutes) and may
31-23 specifically adopt any form, rule, or procedure. A form, rule, or
31-24 procedure that is not specifically adopted expires as provided by
31-25 Subsection (c) of this section.
31-26 (e) A license issued under the Bingo Enabling Act (Article
31-27 179d, Vernon's Texas Civil Statutes) and in effect on the effective
32-1 date of a transfer of functions under Section 28 of this Act
32-2 remains in effect according to its terms as if issued by the Texas
32-3 Lottery Commission until the license expires or is revoked or
32-4 surrendered.
32-5 (f) The change in law made by this Act does not affect taxes
32-6 imposed under the Bingo Enabling Act (Article 179d, Vernon's Texas
32-7 Civil Statutes) before the effective date of this Act, and the law
32-8 in effect before the effective date of this Act is continued in
32-9 effect for purposes of the liability for and collection and
32-10 allocation of those taxes. The Texas Alcoholic Beverage
32-11 Commission, until the transfer of functions under Section 28 of
32-12 this Act, and the Texas Lottery Commission on and after the
32-13 transfer, may maintain a suspense account for any county or
32-14 municipality that imposed a tax under Section 3, Bingo Enabling
32-15 Act, before the effective date of this Act for not more than one
32-16 year after the effective date of this Act to cover tax refunds and
32-17 to redeem dishonored checks and drafts deposited in connection with
32-18 the taxes imposed by the county or municipality.
32-19 (g) A change in law made by this Act applies only to an
32-20 offense committed on or after September 1, 1993. For the purposes
32-21 of this subsection, an offense is committed before September 1,
32-22 1993, if any element of the offense occurs before that date.
32-23 (h) An offense committed before September 1, 1993, is
32-24 covered by the law in effect when the offense was committed, and
32-25 the former law is continued in effect for that purpose.
32-26 SECTION 30. The importance of this legislation and the
32-27 crowded condition of the calendars in both houses create an
33-1 emergency and an imperative public necessity that the
33-2 constitutional rule requiring bills to be read on three several
33-3 days in each house be suspended, and this rule is hereby suspended.