73R8148 ESH-F
By Cain H.B. No. 2771
Substitute the following for H.B. No. 2771:
By Cain C.S.H.B. No. 2771
A BILL TO BE ENTITLED
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2-7 withdrawn to determine the letters and numbers or other symbols to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), (p), 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 (p) No one other than a licensed authorized organization may
2-26 advertise or promote bingo. <A licensed authorized organization
2-27 may not include in an advertisement or promotion the amount of a
3-1 prize or series of prizes offered at a bingo occasion.>
3-2 (t) With the prior written consent of the commission, a
3-3 licensed authorized organization may make an occasional sale of
3-4 bingo cards or of a used bingo flashboard or blower to another
3-5 licensed authorized organization.
3-6 SECTION 3. Section 12(d), Bingo Enabling Act (Article 179d,
3-7 Vernon's Texas Civil Statutes), is amended to read as follows:
3-8 (d) An authorized organization may receive a temporary
3-9 license for the conduct of bingo games on filing with the
3-10 commission an application, on a form prescribed by the commission,
3-11 accompanied by a $25 license fee. A temporary license is valid for
3-12 four hours during any one day. An organization may receive no more
3-13 than six temporary licenses in a calendar year. An organization
3-14 operating under a temporary license is subject to the taxes and
3-15 fees <gross receipts tax> authorized or imposed by this Act and the
3-16 other provisions of this Act to the extent they can be made
3-17 applicable.
3-18 SECTION 4. Sections 13(c), (f), and (j), Bingo Enabling Act
3-19 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
3-20 as follows:
3-21 (c) The commission shall issue to an applicant a license for
3-22 the conduct of bingo, or a license renewal, on payment of a license
3-23 fee in accordance with Subdivision (1) of Subsection (d) of this
3-24 section, if the commission determines that:
3-25 (1) the member or members of the applicant designated
3-26 in the application to conduct bingo are active members of the
3-27 applicant;
4-1 (2) no person under whose name the game or games of
4-2 bingo will be conducted, and no person who will work at the
4-3 proposed bingo games, has been convicted of a felony, gambling
4-4 offense, criminal fraud, or a crime of moral turpitude for which
4-5 less than 10 years have elapsed since termination of any sentence,
4-6 parole, mandatory supervision, or probation served for the offense;
4-7 (3) the games are to be conducted in accordance with
4-8 this Act;
4-9 (4) the proceeds of the games are to be disposed of as
4-10 provided by this Act;
4-11 (5) <no prize will be offered or given in excess of
4-12 the limits set by Section 11(e) of this Act in any single game and
4-13 that the aggregate of all prizes offered and given in all of the
4-14 games conducted on a single occasion under the license will not
4-15 exceed the limits set by Section 11(f) of this Act;>
4-16 <(6)> the applicant has made and can demonstrate
4-17 significant progress toward the accomplishment of the purposes of
4-18 the organization during the 12-month period preceding the date of
4-19 application for a license or license renewal; and
4-20 (6) <(7)> all persons who will conduct, promote, or
4-21 administer the proposed bingo games are active, bona fide members
4-22 of the applicant organization and all other persons who will assist
4-23 in conducting, promoting, or administering the proposed bingo games
4-24 are persons authorized to do so by Section 19 of this Act.
4-25 (f) A person who leases premises on which bingo is conducted
4-26 is not required to be a licensed commercial lessor unless the
4-27 person leases directly to a licensed authorized organization <The
5-1 commission may not issue a license to an applicant seeking to
5-2 conduct bingo on the premises of a licensed commercial lessor if
5-3 the premises presently owned or occupied by the applicant are
5-4 adequate and suitable for conducting bingo games. The burden is on
5-5 the applicant to establish by clear and convincing proof that the
5-6 premises it presently owns or occupies are not adequate and
5-7 suitable for conducting games. It is the intent of this subsection
5-8 to encourage licensed organizations to use their own facilities if
5-9 possible, to discourage the commercialization of bingo, and to
5-10 maximize the availability of bingo proceeds for application by an
5-11 authorized organization to its authorized purposes>.
5-12 (j) A license may not be transferred by a licensee, except
5-13 that, in accordance with commission rules, a licensed commercial
5-14 lessor who is an individual may transfer the individual's license
5-15 to a corporation formed by the individual if the corporation would
5-16 be eligible for a commercial license to lease bingo premises under
5-17 this section if the corporation were applying for a license.
5-18 SECTION 5. Section 13(o), Bingo Enabling Act (Article 179d,
5-19 Vernon's Texas Civil Statutes), is amended to read as follows:
5-20 (o) Notwithstanding Subsection (n) of this section, a person
5-21 who was licensed as a commercial lessor on June 10, 1989, whose
5-22 license has been kept in effect since that date, and who is
5-23 otherwise eligible for the license may renew the license as a
5-24 commercial lessor of bingo premises <according to the terms of the
5-25 license as those terms existed on June 10, 1989>.
5-26 SECTION 6. The Bingo Enabling Act (Article 179d, Vernon's
5-27 Texas Civil Statutes) is amended by adding Section 13f to read as
6-1 follows:
6-2 Sec. 13f. ACCESS TO INTERNAL REVENUE SERVICE INFORMATION.
6-3 (a) The commission may obtain information relating to a person's
6-4 qualification for licensing under this Act from the Internal
6-5 Revenue Service under a contract between the comptroller and the
6-6 Internal Revenue Service on:
6-7 (1) an operator or an applicant to act as an operator
6-8 of bingo occasions; or
6-9 (2) an applicant for a license to act or a person who
6-10 holds a license to act as a commercial lessor.
6-11 (b) All information received by the commission from the
6-12 Internal Revenue Service is confidential and may only be used as
6-13 provided by the contract between the comptroller and the Internal
6-14 Revenue Service under which the information was obtained.
6-15 (c) A person commits an offense if the person releases or
6-16 discloses any information obtained under this section except on
6-17 court order. An offense under this subsection is a Class A
6-18 misdemeanor.
6-19 (d) The comptroller shall adopt rules governing the custody
6-20 and use of information obtained under this section.
6-21 SECTION 7. Section 15(a), Bingo Enabling Act (Article 179d,
6-22 Vernon's Texas Civil Statutes), is amended to read as follows:
6-23 (a) Each license to conduct bingo shall include:
6-24 (1) the name and address of the licensee and the names
6-25 and addresses of the member or members of the licensee under whom
6-26 the games will be conducted; and
6-27 (2) an indication of the place where and the time when
7-1 the games are to be conducted<;>
7-2 <(3) the specific purposes to which the net proceeds
7-3 of the games are to be devoted; and>
7-4 <(4) a statement of whether any prize is to be offered
7-5 and the amount of any authorized prize>.
7-6 SECTION 8. Section 16(e), Bingo Enabling Act (Article 179d,
7-7 Vernon's Texas Civil Statutes), is amended to read as follows:
7-8 (e) After a hearing, the <The> commission may suspend or
7-9 revoke any license issued under this Act for failure to comply with
7-10 this Act or a rule adopted by the commission under this Act, or for
7-11 any reason that would allow or require the commission to refuse to
7-12 issue or renew a license of the same class. An administrative law
7-13 judge of the State Office of Administrative Hearings shall conduct
7-14 the hearing as provided by Chapter 591, Acts of the 72nd
7-15 Legislature, Regular Session, 1991 (Article 6252-13f, Vernon's
7-16 Texas Civil Statutes), and its subsequent amendments. The
7-17 commission may review the decision of an administrative law judge
7-18 as provided by the Administrative Procedure and Texas Register Act
7-19 (Article 6252-13a, Vernon's Texas Civil Statutes) and its
7-20 subsequent amendments. The commission may summarily suspend a
7-21 license issued under this Act for failure to comply with this Act
7-22 or a rule adopted by the commission under this Act if the
7-23 commission determines that the licensee's continued operation may
7-24 constitute an immediate threat to the health, safety, morals, or
7-25 welfare of the public. The Administrative Procedure and Texas
7-26 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
7-27 not apply to the commission in the enforcement and administration
8-1 of a summary suspension under this section.
8-2 SECTION 9. The Bingo Enabling Act (Article 179d, Vernon's
8-3 Texas Civil Statutes) is amended by adding Sections 16a and 16b to
8-4 read as follows:
8-5 Sec. 16a. ADMINISTRATIVE PENALTIES. (a) The commission may
8-6 assess an administrative penalty against the holder of a commercial
8-7 lessor's license under this Act who violates a provision of this
8-8 Act or a rule or order adopted by the commission under this Act as
8-9 provided by this section.
8-10 (b) The penalty for each violation may be in an amount not
8-11 to exceed $5,000. Each day a violation continues or occurs may be
8-12 considered a separate violation for purposes of penalty assessment.
8-13 (c) In determining the amount of the penalty, the executive
8-14 director of the commission shall consider:
8-15 (1) the seriousness of the violation, including the
8-16 nature, circumstances, extent, and gravity of the prohibited acts
8-17 and the hazard or potential hazard posed to the health or safety of
8-18 the public;
8-19 (2) the economic damage to property or the environment
8-20 caused by the violation;
8-21 (3) the history of previous violations;
8-22 (4) the amount necessary to deter future violations;
8-23 (5) efforts to correct the violation; and
8-24 (6) any other matter that justice may require.
8-25 (d) If, after investigation of a possible violation and the
8-26 facts surrounding that possible violation, the executive director
8-27 determines that a violation has occurred, the executive director
9-1 may issue a violation report stating the facts on which the
9-2 conclusion that a violation occurred is based, recommending that an
9-3 administrative penalty under this section be imposed on the person
9-4 charged, and recommending the amount of that proposed penalty. The
9-5 executive director shall base the recommended amount of the
9-6 proposed penalty on the seriousness of the violation determined by
9-7 consideration of the factors set forth in Subsection (c) of this
9-8 section.
9-9 (e) Not later than the 14th day after the date on which the
9-10 report is issued, the executive director shall give written notice
9-11 of the report to the person charged. The notice shall include a
9-12 brief summary of the charges, a statement of the amount of the
9-13 penalty recommended, and a statement of the right of the person
9-14 charged to a hearing on the occurrence of the violation or the
9-15 amount of the penalty, or both the occurrence of the violation and
9-16 the amount of the penalty.
9-17 (f) Not later than the 20th day after the date on which
9-18 notice is received, the person charged may accept the determination
9-19 of the executive director made under Subsection (d) of this
9-20 section, including the recommended penalty, or make a written
9-21 request for a hearing on the determination.
9-22 (g) If the person charged with the violation accepts the
9-23 determination of the executive director, the executive director
9-24 shall issue an order approving the determination and ordering the
9-25 payment of the recommended penalty.
9-26 (h) If the person charged requests a hearing or fails to
9-27 timely respond to the notice, the executive director shall set a
10-1 hearing and give notice of the hearing. The hearing shall be held
10-2 by the State Office of Administrative Hearings. The hearing
10-3 examiner shall make findings of fact and conclusions of law and
10-4 promptly issue to the commission a proposal for decision as to the
10-5 occurrence of the violation, including a recommendation as to the
10-6 amount of the proposed penalty if a penalty is warranted. Based on
10-7 the findings of fact, conclusions of law, and recommendations of
10-8 the hearing examiner, the executive director by order may find a
10-9 violation has occurred and may assess a penalty or may find that no
10-10 violation has occurred. All proceedings under this subsection are
10-11 subject to the Administrative Procedure and Texas Register Act
10-12 (Article 6252-13a, Vernon's Texas Civil Statutes) and its
10-13 subsequent amendments.
10-14 (i) The executive director shall give notice of the
10-15 executive director's order to the person charged. The notice shall
10-16 include:
10-17 (1) the findings of fact and conclusions of law
10-18 separately stated;
10-19 (2) the amount of the penalty ordered, if any;
10-20 (3) a statement of the right of the person charged to
10-21 judicial review of the executive director's order, if any; and
10-22 (4) other information required by law.
10-23 (j) Not later than the 30th day after the date the executive
10-24 director's order is final as provided by Section 16(c),
10-25 Administrative Procedure and Texas Register Act (Article 6252-13a,
10-26 Vernon's Texas Civil Statutes), the person shall:
10-27 (1) pay the amount of the penalty;
11-1 (2) pay the amount of the penalty and file a petition
11-2 for judicial review contesting the occurrence of the violation, the
11-3 amount of the penalty, or both the occurrence of the violation and
11-4 the amount of the penalty; or
11-5 (3) without paying the amount of the penalty, file a
11-6 petition for judicial review contesting the occurrence of the
11-7 violation, the amount of the penalty, or both the occurrence of the
11-8 violation and the amount of the penalty.
11-9 (k) Within the 30-day period, a person who acts under
11-10 Subsection (j)(3) of this section may:
11-11 (1) stay enforcement of the penalty by:
11-12 (A) paying the amount of the penalty to the
11-13 court for placement in an escrow account; or
11-14 (B) giving to the court a supersedeas bond
11-15 approved by the court for the amount of the penalty and that is
11-16 effective until all judicial review of the board's order is final;
11-17 or
11-18 (2) request the court to stay enforcement of the
11-19 penalty by:
11-20 (A) filing with the court a sworn affidavit of
11-21 the person stating that the person is financially unable to pay the
11-22 amount of the penalty and is financially unable to give the
11-23 supersedeas bond; and
11-24 (B) giving a copy of the affidavit to the
11-25 executive director by certified mail.
11-26 (l) If the executive director receives a copy of an
11-27 affidavit under Subsection (k)(2) of this section, the executive
12-1 director may file with the court not later than the fifth day after
12-2 the date the copy is received a contest to the affidavit. The
12-3 court shall hold a hearing on the facts alleged in the affidavit as
12-4 soon as practicable and shall stay the enforcement of the penalty
12-5 on finding that the alleged facts are true. The person who files
12-6 an affidavit has the burden of proving that the person is
12-7 financially unable to pay the amount of the penalty and to give a
12-8 supersedeas bond.
12-9 (m) If the person does not pay the amount of the penalty and
12-10 the enforcement of the penalty is not stayed, the executive
12-11 director may refer the matter to the attorney general for
12-12 collection of the amount of the penalty.
12-13 (n) Judicial review of the order of the board:
12-14 (1) is instituted by filing a petition as provided by
12-15 Section 19, Administrative Procedure and Texas Register Act
12-16 (Article 6252-13a, Vernon's Texas Civil Statutes), and its
12-17 subsequent amendments; and
12-18 (2) is under the substantial evidence rule.
12-19 (o) If the court sustains the occurrence of the violation,
12-20 the court may uphold or reduce the amount of the penalty and order
12-21 the person to pay the full or reduced amount of the penalty. If
12-22 the court does not sustain the occurrence of the violation, the
12-23 court shall order that no penalty is owed.
12-24 (p) When the judgment of the court becomes final, the court
12-25 shall proceed under this subsection. If the person paid the amount
12-26 of the penalty and if that amount is reduced or is not upheld by
12-27 the court, the court shall order that the appropriate amount plus
13-1 accrued interest be remitted to the person. The rate of the
13-2 interest is the rate charged on loans to depository institutions by
13-3 the New York Federal Reserve Bank, and the interest shall be paid
13-4 for the period beginning on the date the penalty was paid and
13-5 ending on the date the penalty is remitted. If the person gave a
13-6 supersedeas bond and if the amount of the penalty is not upheld by
13-7 the court, the court shall order the release of the bond. If the
13-8 person gave a supersedeas bond and if the amount of the penalty is
13-9 reduced, the court shall order the release of the bond after the
13-10 person pays the amount.
13-11 (q) A penalty collected under this section shall be remitted
13-12 to the comptroller for deposit in the general revenue fund.
13-13 (r) All proceedings under this section are subject to the
13-14 Administrative Procedure and Texas Register Act (Article 6252-13a,
13-15 Vernon's Texas Civil Statutes) and its subsequent amendments.
13-16 Sec. 16b. REMEDIES NOT EXCLUSIVE. The commission may
13-17 suspend or revoke a commercial lessor's license under Section 16(e)
13-18 of this Act, impose an administrative penalty under Section 16a of
13-19 this Act, or both, depending on the severity of the violation.
13-20 SECTION 10. Sections 19(c) and (d), Bingo Enabling Act
13-21 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
13-22 as follows:
13-23 (c) Items of expense may not be incurred or paid in
13-24 connection with the conduct of any game of bingo under any license
13-25 issued under this Act except those that are reasonable and are
13-26 necessarily expended for advertising, security, repairs to premises
13-27 and equipment, bingo supplies and equipment, prizes, stated rental
14-1 or mortgage and insurance expenses, if any, bookkeeping, legal, or
14-2 accounting services related to bingo, fees in amounts authorized by
14-3 the commission for callers, cashiers, and ushers, janitorial
14-4 services and utility supplies and services, if any, and license
14-5 fees. The value of any health insurance or health benefit provided
14-6 by a licensed authorized organization to an employee may not be
14-7 included in the amount of a fee authorized by the commission.
14-8 (d) <A person may not be an operator for more than one
14-9 licensed authorized organization, without regard to the person's
14-10 membership status in licensed authorized organizations.> The
14-11 commission may adopt rules restricting involvement in the conduct,
14-12 promotion, or administration of bingo by a licensed authorized
14-13 commercial lessor, by a person having an interest in or who is
14-14 active in a licensed authorized commercial lessor, or by a person
14-15 related in the first degree by consanguinity or affinity, as
14-16 determined under Article 5996h, Revised Statutes, to a person
14-17 having an interest in or active in a licensed authorized commercial
14-18 lessor, without regard to a person's membership status in a
14-19 licensed authorized organization.
14-20 SECTION 11. Sections 19b(b) and (c), Bingo Enabling Act
14-21 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
14-22 as follows:
14-23 (b) The fee imposed by this section is six <three> percent
14-24 of the amount or value of the prize.
14-25 (c) A licensed authorized organization shall report and
14-26 remit the fee imposed by this section at the same time and in the
14-27 same manner as the gross rentals <receipts> tax under Section 20 of
15-1 this Act.
15-2 SECTION 12. The Bingo Enabling Act (Article 179d, Vernon's
15-3 Texas Civil Statutes) is amended by adding Section 19c to read as
15-4 follows:
15-5 Sec. 19c. LOCAL SHARE OF FEE ON PRIZES. (a) A county or
15-6 municipality that imposed a gross receipts tax on the conduct of
15-7 bingo games as of January 1, 1993, is entitled to a share of the
15-8 fee imposed by Section 19b of this Act.
15-9 (b) Except as provided by Subsection (d) of this section, a
15-10 county to which this section applies is entitled to 50 percent of
15-11 the fee collected under Section 19b of this Act on a prize awarded
15-12 at a bingo game conducted in the county.
15-13 (c) Except as provided by Subsection (d) of this section, a
15-14 municipality to which this section applies is entitled to 50
15-15 percent of the fee collected under Section 19b of this Act on a
15-16 prize awarded at a bingo game conducted in the municipality.
15-17 (d) If a county and municipality are both entitled to a
15-18 share of the fee imposed by Section 19b of this Act:
15-19 (1) the county is entitled to 25 percent of the fee
15-20 collected under Section 19b of this Act on a prize awarded at a
15-21 bingo game conducted in the county; and
15-22 (2) the municipality is entitled to 25 percent of the
15-23 fee collected under Section 19b of this Act on a prize awarded at a
15-24 bingo game conducted in the municipality.
15-25 (e) The local share of the fee on prizes provided by this
15-26 section is limited to a share of collections attributable to the
15-27 first five percent levied on the amount or value of prizes.
16-1 SECTION 13. Section 20, Bingo Enabling Act (Article 179d,
16-2 Vernon's Texas Civil Statutes), is amended to read as follows:
16-3 Sec. 20. REPORTING AND DUE DATE OF TAXES AND FEES. The
16-4 taxes and fees authorized or imposed by this Act are due and
16-5 payable by the licensee or any person conducting bingo games
16-6 without a license to the state treasurer quarterly on or before the
16-7 15th day of the month succeeding each calendar quarter. The report
16-8 must be filed under oath on forms prescribed by the commission.
16-9 SECTION 14. Section 26, Bingo Enabling Act (Article 179d,
16-10 Vernon's Texas Civil Statutes), is amended to read as follows:
16-11 Sec. 26. TRANSMITTALS, REFUNDS, AND COLLECTIONS. (a) The
16-12 revenue collected from the fee on prizes imposed by Section 19b of
16-13 this Act and sent to the state shall be deposited to the credit of
16-14 a special account in the general revenue fund.
16-15 (b) The commission shall determine the total amount of
16-16 revenue deposited in the account from prizes awarded at bingo games
16-17 in each county and each municipality entitled to a share under
16-18 Section 19c of this Act.
16-19 (c) Quarterly, the commission shall send to each county and
16-20 municipality entitled under Section 19c of this Act to a share of
16-21 the fee on prizes the county's or municipality's share as
16-22 determined under Sections 19c(b)-(d) of this Act.
16-23 (d) The commission shall transfer any remaining amounts in
16-24 the account to a nondedicated account in the general revenue fund.
16-25 (e) Each jurisdiction's share of the fee on prizes <all
16-26 gross receipts taxes> collected under <Section 3 of> this Act <by
16-27 the commission> shall be transmitted to the treasurer or the
17-1 officer of the jurisdiction performing the functions of that office
17-2 by the commission payable to the jurisdiction <periodically as
17-3 promptly as feasible. Transmittals required under this Act shall
17-4 be made at least twice in each state fiscal year>. The funds so
17-5 transmitted may be used by the jurisdiction for any purpose for
17-6 which the general funds of the jurisdiction may be used.
17-7 <(b) Before transmitting funds under Subsection (a) of this
17-8 section, the commission shall deduct two percent of the sum
17-9 collected from each jurisdiction during such period and shall
17-10 deposit the funds in the state treasury to the credit of a special
17-11 fund to be known as the bingo enforcement fund. The fund may be
17-12 used only for the administration and enforcement of this Act.>
17-13 (f) <(c)> The commission is authorized to retain in the
17-14 suspense account of any jurisdiction a portion of the
17-15 jurisdiction's share of the fee on prizes <tax> collected under
17-16 this Act. The balance so retained in the suspense account may not
17-17 exceed five percent of the amount remitted to the jurisdiction.
17-18 The commission is authorized to make refunds from the suspense
17-19 account of any jurisdiction for overpayments made to such accounts
17-20 and to redeem dishonored checks and drafts deposited to the credit
17-21 of the suspense account of the jurisdiction.
17-22 (g) <(d)> When any jurisdiction entitled to a share of the
17-23 fee on prizes prohibits the conduct of bingo as provided by
17-24 Sections 4-9 of this Act <imposes the gross receipts tax and
17-25 thereafter abolishes the tax>, the commission may retain in the
17-26 suspense account of the jurisdiction for one year five percent of
17-27 the final remittance to each such jurisdiction at the time of
18-1 termination of collection of the tax in the jurisdiction to cover
18-2 possible refunds for overpayment of the tax and to redeem
18-3 dishonored checks and drafts deposited to the credit of the
18-4 account. After one year has elapsed after the effective date of
18-5 the prohibition of bingo <abolition of the tax> in the
18-6 jurisdiction, the commission shall remit the balance in the account
18-7 to the jurisdiction and close the account.
18-8 (h) <(e)> Interest earned on all fees on prizes <taxes>
18-9 collected by the commission under this Act before distribution to
18-10 the local jurisdiction, including interest earned from the suspense
18-11 accounts retained under this section, shall be credited to the
18-12 General Revenue Fund.
18-13 SECTION 15. Sections 31, 32, and 33, Bingo Enabling Act
18-14 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
18-15 as follows:
18-16 Sec. 31. Determination if no Return Made. If any licensee
18-17 fails to make a required return, or if any person conducts bingo
18-18 without a license, the commission shall make an estimate of the
18-19 prizes awarded at each occasion of bingo <gross receipts of the
18-20 licensee or person conducting bingo without a license> or of the
18-21 gross rentals received by a licensee for the rental of premises on
18-22 which bingo is conducted. The estimate shall be made for the
18-23 period in respect to which the licensee or other person failed to
18-24 make a return and shall be based on any information covering any
18-25 period that is in the possession of the commission or may come into
18-26 the possession of the commission. On the basis of this estimate,
18-27 the commission shall compute and determine the amount required to
19-1 be paid to the state, adding to the sum a penalty of 10 percent of
19-2 the amount. One or more determinations may be made for one or more
19-3 periods.
19-4 Sec. 32. Jeopardy Determination. (a) If the commission
19-5 believes that the collection of any gross rental tax or fee on
19-6 prizes or any amount of tax or fee on prizes required to be
19-7 remitted to the state or the amount of any determination will be
19-8 jeopardized by delay, the commission shall make a determination of
19-9 the tax or fee on prizes or amount of tax or fee on prizes required
19-10 to be collected, noting that fact upon the determination. The
19-11 amount determined is due and payable immediately.
19-12 (b) If the amount specified in the determination is not paid
19-13 within 20 days after service of notice thereof on the licensee
19-14 against whom the determination is made, the amount becomes final at
19-15 the expiration of the 20 days unless a petition for redetermination
19-16 is filed within the 20 days. A delinquency penalty of 10 percent
19-17 of the tax or fee on prizes or amount of the tax or fee on prizes
19-18 and interest at the rate of 10 percent a year shall attach to the
19-19 amount of the tax or fee on prizes or the amount of the tax or fee
19-20 on prizes required to be collected.
19-21 Sec. 33. Application of Tax Laws. Subtitle B, Title 2, Tax
19-22 Code, applies to the administration, collection, and enforcement of
19-23 the gross rentals tax <taxes authorized or> imposed under Section
19-24 2B of this Act and the fee on prizes imposed under Section 19b of
19-25 this Act except as modified by this Act. In applying the
19-26 provisions <For purposes of the application> of that subtitle to
19-27 the gross rentals tax <taxes authorized or> imposed under Section
20-1 2B of this Act and the fee on prizes imposed under Section 19b of
20-2 this Act only, the fee on prizes is treated as if it were a tax and
20-3 the powers and duties assigned to the comptroller under that
20-4 subtitle are assigned to the commission.
20-5 SECTION 16. Sections 37(a), (b), and (c), Bingo Enabling Act
20-6 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
20-7 as follows:
20-8 (a) At any time within three years after a person is
20-9 delinquent in the payment of any amount of required gross rentals
20-10 tax or fee on prizes due, the commission may collect the amount as
20-11 provided by this section.
20-12 (b) The commission shall seize any property, real or
20-13 personal, of the person and sell the property, or a sufficient part
20-14 of it, at public auction to pay the amount due with any interest or
20-15 penalties on account of the seizure and sale. Any seizure made to
20-16 collect the gross rentals <a> tax or the fee on prizes due shall be
20-17 only of property of the licensee not exempt from execution under
20-18 the laws of this state.
20-19 (c) Notice of the sale and the time and place of the sale
20-20 shall be given to the delinquent person in writing at least 20 days
20-21 before the date set for the sale as provided by this subsection.
20-22 The notice shall be enclosed in an envelope addressed to the
20-23 person<, in case of a sale for limited sales tax due,> at his last
20-24 known address or place of business<, and in case of a sale for use
20-25 taxes due, at his last known residence or place of business in this
20-26 state>. It shall be deposited in the United States mail, postage
20-27 prepaid. The notice shall also be published for at least 10 days
21-1 before the date set for the sale in a newspaper of general
21-2 circulation published in the county in which the property seized is
21-3 to be sold. If there is no newspaper of general circulation in the
21-4 county, notice shall be posted in three public places in the county
21-5 at least 20 days before the date set for the sale. The notice
21-6 shall contain a description of the property to be sold, a statement
21-7 of the amount due, including interest, penalties, and costs, the
21-8 name of the delinquent, and the further statement that unless the
21-9 amount due, interest, penalties, and costs are paid on or before
21-10 the time fixed in the notice for the sale, the property, or so much
21-11 of it as may be necessary, will be sold in accordance with the law
21-12 and the notice.
21-13 SECTION 17. Section 38, Bingo Enabling Act (Article 179d,
21-14 Vernon's Texas Civil Statutes), is amended to read as follows:
21-15 Sec. 38. Bonds or Securities. (a) Each licensee under this
21-16 Act shall furnish to the commission a cash bond, a bond from a
21-17 surety company chartered or authorized to do business in this
21-18 state, certificates of deposit, certificates of savings or U.S.
21-19 treasury bonds or, subject to the discretion and approval of the
21-20 commission, an assignment of negotiable stocks or bonds, or such
21-21 other security as the commission may deem sufficient to secure the
21-22 payment of required tax on gross rentals or fee on prizes <taxes>
21-23 under this Act. The commission shall fix the amount of the bond or
21-24 security in each case, taking into consideration the amount of
21-25 money that has or is expected to become due from the licensee under
21-26 this Act. The amount of the bond or security required by the
21-27 commission may not exceed three times the amount of the licensee's
22-1 average quarterly reports.
22-2 (b) On failure to pay the gross rentals tax or the fee on
22-3 prizes <taxes> imposed under this Act, the commission may notify
22-4 both the licensee and any surety of the delinquency by jeopardy or
22-5 deficiency determination. If payment is not made when due, the
22-6 commission may forfeit the bond or security or any part thereof.
22-7 (c) If the licensee ceases to conduct bingo games and
22-8 relinquishes his license, the commission shall authorize the
22-9 release of all bonds and security on a determination that no
22-10 amounts of gross rentals tax or fee on prizes remain due and
22-11 payable under this Act.
22-12 SECTION 18. Section 39(b), Bingo Enabling Act (Article 179d,
22-13 Vernon's Texas Civil Statutes), is amended to read as follows:
22-14 (b) Any person conducting, promoting, or administering a
22-15 game commits a felony of the third degree unless the person is
22-16 conducting, promoting, or administering a game:
22-17 (1) in accordance with a valid license issued under
22-18 this Act;
22-19 (2) within the confines of a home for purposes of
22-20 amusement or recreation when:
22-21 (A) no player or other person furnishes anything
22-22 of more than nominal value for the opportunity to participate;
22-23 (B) participation in the game does not exceed 15
22-24 players; and
22-25 (C) the prizes awarded or to be awarded are
22-26 nominal;
22-27 (3) on behalf of an organization of persons 60 years
23-1 of age or over, a senior citizens' association, a senior citizens'
23-2 community center program operated or funded by a governmental
23-3 entity, or the patients in a hospital or nursing home or residents
23-4 of a retirement home solely for the purpose of amusement and
23-5 recreation of its members, residents, or patients, when:
23-6 (A) no player or other person furnishes anything
23-7 of more than nominal value for the opportunity to participate; and
23-8 (B) the prizes awarded or to be awarded are
23-9 nominal; or
23-10 (4) on behalf of a business conducting the game for
23-11 promotional or advertising purposes if:
23-12 (A) the game is conducted by or through a
23-13 newspaper or a radio or television station;
23-14 (B) participation in the game is open to the
23-15 general public and is not limited to customers of the business;
23-16 (C) playing materials are furnished without
23-17 charge to any person on request; and
23-18 (D) no player is required to furnish anything of
23-19 value for the opportunity to participate.
23-20 SECTION 19. The Bingo Enabling Act (Article 179d, Vernon's
23-21 Texas Civil Statutes) is amended by adding Section 43 to read as
23-22 follows:
23-23 Sec. 43. BINGO ADVISORY COMMITTEE. (a) The commission
23-24 shall appoint a bingo advisory committee consisting of nine
23-25 members. The committee members shall be appointed to represent a
23-26 balance of interests including representatives of:
23-27 (1) the general public;
24-1 (2) charities that operate bingo games; and
24-2 (3) commercial and charity lessors that participate in
24-3 the bingo industry.
24-4 (b) A bingo advisory committee member serves at the pleasure
24-5 of the commission. A member of the committee is not entitled to
24-6 receive compensation for serving as a member. A member is entitled
24-7 to reimbursement for reasonable expenses incurred in performing
24-8 duties as a member of the committee.
24-9 (c) The bingo advisory committee shall:
24-10 (1) advise the commission on the needs and problems of
24-11 the state's bingo industry;
24-12 (2) comment on rules involving bingo during their
24-13 development and before their final adoption unless an emergency
24-14 requires immediate action by the commission;
24-15 (3) report annually to the commission on the
24-16 committee's activities; and
24-17 (4) perform other duties as determined by the
24-18 commission.
24-19 (d) The bingo advisory committee shall meet quarterly or as
24-20 requested by the commission.
24-21 (e) The commission may adopt rules to govern the operations
24-22 of the bingo advisory committee.
24-23 SECTION 20. Section 112.058, Tax Code, is amended by adding
24-24 Subsection (f) to read as follows:
24-25 (f) All protest payments of taxes imposed by and collected
24-26 for the state under the Bingo Enabling Act (Article 179d, Vernon's
24-27 Texas Civil Statutes) that become due on or after September 1,
25-1 1993, are governed by Subchapter J, Chapter 403, Government Code.
25-2 SECTION 21. Sections 2A, 3, 4(b), 13(p), 19a(k), 21, and 22,
25-3 Bingo Enabling Act (Article 179d, Vernon's Texas Civil Statutes),
25-4 are repealed.
25-5 SECTION 22. This Act takes effect September 1, 1993, but
25-6 only if H.B. No. 1587, 73rd Legislature, Regular Session, 1993, or
25-7 S.B. No. 550, 73rd Legislature, Regular Session, 1993, is enacted
25-8 and becomes law. If neither H.B. No. 1587, 73rd Legislature,
25-9 Regular Session, 1993, nor S.B. No. 550, 73rd Legislature, Regular
25-10 Session, 1993, is enacted and becomes law, this Act has no effect.
25-11 SECTION 23. (a) As soon as practicable, but not later than
25-12 January 1, 1994:
25-13 (1) all powers, duties, rights, and obligations of the
25-14 Texas Alcoholic Beverage Commission relating to the administration
25-15 and regulation of bingo are transferred to the Texas Lottery
25-16 Commission;
25-17 (2) except as provided by Subsections (b) and (c) of
25-18 this section, all assets, liabilities, personnel, equipment, data,
25-19 documents, facilities, and other items of the Texas Alcoholic
25-20 Beverage Commission relating to the administration and regulation
25-21 of bingo are transferred to the Texas Lottery Commission; and
25-22 (3) any appropriation to the Texas Alcoholic Beverage
25-23 Commission relating to the administration and regulation of bingo
25-24 is transferred to the Texas Lottery Commission.
25-25 (b) The Texas Alcoholic Beverage Commission may decide
25-26 whether to transfer to the Texas Lottery Commission:
25-27 (1) personnel who perform both duties that relate to
26-1 bingo regulation and duties that do not relate to bingo regulation;
26-2 and
26-3 (2) assets used both in bingo regulation and
26-4 activities other than bingo regulation.
26-5 (c) The Texas Lottery Commission may decide whether to
26-6 accept personnel from the Texas Alcoholic Beverage Commission.
26-7 (d) The officers and employees of the Texas Alcoholic
26-8 Beverage Commission shall cooperate fully with the reorganization.
26-9 (e) A transfer of functions under Subsection (a) of this
26-10 section shall occur on the date specified in an interagency
26-11 contract between the Texas Lottery Commission and the Texas
26-12 Alcoholic Beverage Commission.
26-13 (f) Notwithstanding the changes made by this Act to the
26-14 Bingo Enabling Act (Article 179d, Vernon's Texas Civil Statutes),
26-15 the Texas Alcoholic Beverage Commission retains all powers and
26-16 duties relating to the regulation of bingo until the effective date
26-17 of the transfer under Subsection (a) of this section, and:
26-18 (1) a reference in the Bingo Enabling Act (Article
26-19 179d, Vernon's Texas Civil Statutes) to the Texas Lottery
26-20 Commission is considered to be a reference to the Texas Alcoholic
26-21 Beverage Commission until that date; and
26-22 (2) a reference in the Bingo Enabling Act (Article
26-23 179d, Vernon's Texas Civil Statutes) to the executive director of
26-24 the Texas Lottery Commission is considered to be a reference to the
26-25 administrator of the Texas Alcoholic Beverage Commission until that
26-26 date.
26-27 SECTION 24. (a) A change in law made by this Act does not
27-1 affect:
27-2 (1) the validity of any action taken by the Texas
27-3 Alcoholic Beverage Commission under the Bingo Enabling Act (Article
27-4 179d, Vernon's Texas Civil Statutes) before the effective date of
27-5 the change in law; or
27-6 (2) a civil, criminal, or administrative proceeding
27-7 completed before the effective date of this Act.
27-8 (b) A change in law made by this Act does not affect the
27-9 validity of a civil, criminal, or administrative proceeding,
27-10 including licensing or rulemaking, in progress on the effective
27-11 date of the change in law. A civil, criminal, or administrative
27-12 proceeding under the Bingo Enabling Act (Article 179d, Vernon's
27-13 Texas Civil Statutes) that is in progress on the effective date of
27-14 a transfer of functions under Section 23 of this Act continues as
27-15 if it had been initiated by the Texas Lottery Commission under the
27-16 law in effect on the effective date of the transfer.
27-17 (c) All forms, rules, and procedures adopted by the Texas
27-18 Alcoholic Beverage Commission for the administration and
27-19 enforcement of the Bingo Enabling Act (Article 179d, Vernon's Texas
27-20 Civil Statutes) and in effect on the effective date of a transfer
27-21 of functions under Section 23 of this Act remain in effect on or
27-22 after that date as if adopted by the Texas Lottery Commission until
27-23 the earlier of:
27-24 (1) the date the form, rule, or procedure is amended,
27-25 repealed, withdrawn, or otherwise superseded by the Texas Lottery
27-26 Commission; or
27-27 (2) the first anniversary of the effective date of a
28-1 transfer of functions under Section 23 of this Act.
28-2 (d) Before the first anniversary of the effective date of a
28-3 transfer of functions under Section 23 of this Act, the Texas
28-4 Lottery Commission shall review each form, rule, and procedure
28-5 adopted by the Texas Alcoholic Beverage Commission under the Bingo
28-6 Enabling Act (Article 179d, Vernon's Texas Civil Statutes) and may
28-7 specifically adopt any form, rule, or procedure. A form, rule, or
28-8 procedure that is not specifically adopted expires as provided by
28-9 Subsection (c) of this section.
28-10 (e) A license issued under the Bingo Enabling Act (Article
28-11 179d, Vernon's Texas Civil Statutes) and in effect on the effective
28-12 date of a transfer of functions under Section 23 of this Act
28-13 remains in effect according to its terms as if issued by the Texas
28-14 Lottery Commission until the license expires or is revoked or
28-15 surrendered.
28-16 (f) The change in law made by this Act does not affect taxes
28-17 imposed under the Bingo Enabling Act (Article 179d, Vernon's Texas
28-18 Civil Statutes) before the effective date of this Act, and the law
28-19 in effect before the effective date of this Act is continued in
28-20 effect for purposes of the liability for and collection and
28-21 allocation of those taxes. The Alcoholic Beverage Commission,
28-22 until the transfer of functions under Section 23 of this Act, and
28-23 the Texas Lottery Commission on and after the transfer, may
28-24 maintain a suspense account for any county or municipality that
28-25 imposed a tax under Section 3, Bingo Enabling Act, before the
28-26 effective date of this Act for not more than one year after the
28-27 effective date of this Act to cover tax refunds and to redeem
29-1 dishonored checks and drafts deposited in connection with the taxes
29-2 imposed by the county or municipality.
29-3 (g) A change in law made by this Act applies only to an
29-4 offense committed on or after September 1, 1993. For the purposes
29-5 of this subsection, an offense is committed before September 1,
29-6 1993, if any element of the offense occurs before that date.
29-7 (h) An offense committed before September 1, 1993, is
29-8 covered by the law in effect when the offense was committed, and
29-9 the former law is continued in effect for that purpose.
29-10 SECTION 25. The importance of this legislation and the
29-11 crowded condition of the calendars in both houses create an
29-12 emergency and an imperative public necessity that the
29-13 constitutional rule requiring bills to be read on three several
29-14 days in each house be suspended, and this rule is hereby suspended.