1-1  By:  Cain (Senate Sponsor - Harris of Dallas)         H.B. No. 2771
    1-2        (In the Senate - Received from the House April 26, 1993;
    1-3  April 27, 1993, read first time and referred to Committee on State
    1-4  Affairs; May 5, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 12, Nays 0; May 5, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Harris of Dallas   x                               
   1-10        Rosson             x                               
   1-11        Carriker           x                               
   1-12        Henderson          x                               
   1-13        Leedom             x                               
   1-14        Lucio              x                               
   1-15        Luna               x                               
   1-16        Nelson             x                               
   1-17        Patterson          x                               
   1-18        Shelley            x                               
   1-19        Sibley             x                               
   1-20        West               x                               
   1-21        Whitmire                                      x    
   1-22  COMMITTEE SUBSTITUTE FOR H.B. No. 2771        By:  Harris of Dallas
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25  relating to the regulation of bingo; providing penalties; imposing
   1-26  taxes.
   1-27        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-28        SECTION 1.  Sections 2(10), (20), and (22), Bingo Enabling
   1-29  Act (Article 179d, Vernon's Texas Civil Statutes), are amended to
   1-30  read as follows:
   1-31              (10)  "Net proceeds" means:
   1-32                    (A)  in relation to the gross receipts from one
   1-33  or more occasions of bingo, the amount that remains after deducting
   1-34  the reasonable sums necessarily and actually expended for
   1-35  advertising, security, repairs to premises and equipment, bingo
   1-36  supplies and equipment, prizes, stated rental, or mortgage and
   1-37  insurance expenses, if any, bookkeeping, legal, or accounting
   1-38  services, fees for personnel as permitted under Subsection (c) of
   1-39  Section 19 of this Act, janitorial services and utility supplies
   1-40  and services, if any, license fees, and the fee on prizes imposed
   1-41  by Section 19b of this Act <gross receipts tax>; and
   1-42                    (B)  in relation to the gross rent or other
   1-43  consideration received by an organization licensed to conduct bingo
   1-44  for the use of its premises, fixtures, or equipment by another
   1-45  licensee, the amount that remains after deducting the reasonable
   1-46  sums necessarily and actually expended for janitorial services and
   1-47  utility supplies directly attributable to the use of the premises,
   1-48  fixtures, or equipment, if any.
   1-49              (20)  "Commission" means the Texas Lottery <Alcoholic
   1-50  Beverage> Commission.
   1-51              (22)  "Bingo equipment" means equipment actually used,
   1-52  made, or sold for the purpose of use in bingo games and includes
   1-53  machines or other devices from which balls or other items are
   1-54  withdrawn to determine the letters and numbers or other symbols to
   1-55  be called, the balls or items themselves, bingo cards, and any
   1-56  other device commonly used in the direct operation of the game.
   1-57  "Bingo equipment" does not include:
   1-58                    (A)  a bingo game set commonly manufactured and
   1-59  sold as a child's game for a retail price of $20 or less unless the
   1-60  set or a part of the set is actually used in a bingo game subject
   1-61  to regulation under this Act; or
   1-62                    (B)  commonly available component parts of bingo
   1-63  equipment such as light bulbs, fuses, or bingo balls.
   1-64        SECTION 2.  Sections 11(f) and (t), Bingo Enabling Act
   1-65  (Article 179d, Vernon's Texas Civil Statutes), are amended to read
   1-66  as follows:
   1-67        (f)  A series of prizes offered or awarded on any one bingo
   1-68  occasion for bingo games other than instant bingo may not aggregate
    2-1  more than $2,500.  <A series of prizes offered or awarded on any
    2-2  one bingo occasion for games of instant bingo may not aggregate
    2-3  more than $1,500.>
    2-4        (t)  With the prior written consent of the commission, a
    2-5  licensed authorized organization may make an occasional sale of
    2-6  bingo cards or of a used bingo flashboard or blower to another
    2-7  licensed authorized organization.
    2-8        SECTION 3.  Section 12(d), Bingo Enabling Act (Article 179d,
    2-9  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-10        (d)  An authorized organization may receive a temporary
   2-11  license for the conduct of bingo games on filing with the
   2-12  commission an application, on a form prescribed by the commission,
   2-13  accompanied by a $25 license fee.  A temporary license is valid for
   2-14  four hours during any one day.  An organization may receive no more
   2-15  than six temporary licenses in a calendar year.  An organization
   2-16  operating under a temporary license is subject to the taxes and
   2-17  fees <gross receipts tax> authorized or imposed by this Act and the
   2-18  other provisions of this Act to the extent they can be made
   2-19  applicable.
   2-20        SECTION 4.  Section 13(n), Bingo Enabling Act (Article 179d,
   2-21  Vernon's Texas Civil Statutes), is amended to read as follows:
   2-22        (n)  A commercial license to lease bingo premises to a
   2-23  licensed authorized organization may be issued only to:
   2-24              (1)  an authorized organization licensed to conduct
   2-25  bingo that owns or leases premises on which bingo is or will be
   2-26  conducted or an association of authorized organizations licensed to
   2-27  conduct bingo that jointly own premises on which bingo is or will
   2-28  be conducted and that the organization or association leases or
   2-29  offers for lease to one or more other authorized organizations to
   2-30  conduct bingo;
   2-31              (2)  a person who leases premises to a single licensed
   2-32  authorized organization that subleases or will sublease the
   2-33  premises to one or more other licensed authorized organizations to
   2-34  conduct bingo on the premises; or
   2-35              (3)  a person who leases premises for the total control
   2-36  and exclusive use of only one licensed organization as that
   2-37  organization's primary business office.
   2-38        SECTION 5.  Sections 13(c), (f), and (j), Bingo Enabling Act
   2-39  (Article 179d, Vernon's Texas Civil Statutes), are amended to read
   2-40  as follows:
   2-41        (c)  The commission shall issue to an applicant a license for
   2-42  the conduct of bingo, or a license renewal, on payment of a license
   2-43  fee in accordance with Subdivision (1) of Subsection (d) of this
   2-44  section, if the commission determines that:
   2-45              (1)  the member or members of the applicant designated
   2-46  in the application to conduct bingo are active members of the
   2-47  applicant;
   2-48              (2)  no person under whose name the game or games of
   2-49  bingo will be conducted, and no person who will work at the
   2-50  proposed bingo games, has been convicted of a felony, gambling
   2-51  offense, criminal fraud, or a crime of moral turpitude for which
   2-52  less than 10 years have elapsed since termination of any sentence,
   2-53  parole, mandatory supervision, or probation served for the offense;
   2-54              (3)  the games are to be conducted in accordance with
   2-55  this Act;
   2-56              (4)  the proceeds of the games are to be disposed of as
   2-57  provided by this Act;
   2-58              (5)  <no prize will be offered or given in excess of
   2-59  the limits set by Section 11(e) of this Act in any single game and
   2-60  that the aggregate of all prizes offered and given in all of the
   2-61  games conducted on a single occasion under the license will not
   2-62  exceed the limits set by Section 11(f) of this Act;>
   2-63              <(6)>  the applicant has made and can demonstrate
   2-64  significant progress toward the accomplishment of the purposes of
   2-65  the organization during the 12-month period preceding the date of
   2-66  application for a license or license renewal; and
   2-67              (6) <(7)>  all persons who will conduct, promote, or
   2-68  administer the proposed bingo games are active, bona fide members
   2-69  of the applicant organization and all other persons who will assist
   2-70  in conducting, promoting, or administering the proposed bingo games
    3-1  are persons authorized to do so by Section 19 of this Act.
    3-2        (f)  A person who leases premises on which bingo is conducted
    3-3  is not required to be a licensed commercial lessor unless the
    3-4  person leases directly to a licensed authorized organization <The
    3-5  commission may not issue a license to an applicant seeking to
    3-6  conduct bingo on the premises of a licensed commercial lessor if
    3-7  the premises presently owned or occupied by the applicant are
    3-8  adequate and suitable for conducting bingo games.  The burden is on
    3-9  the applicant to establish by clear and convincing proof that the
   3-10  premises it presently owns or occupies are not adequate and
   3-11  suitable for conducting games.  It is the intent of this subsection
   3-12  to encourage licensed organizations to use their own facilities if
   3-13  possible, to discourage the commercialization of bingo, and to
   3-14  maximize the availability of bingo proceeds for application by an
   3-15  authorized organization to its authorized purposes>.
   3-16        (j)  A license may not be transferred by a licensee, except
   3-17  that, in accordance with commission rules, a licensed commercial
   3-18  lessor who is an individual may transfer the individual's license
   3-19  to a corporation formed by the individual.
   3-20        SECTION 6.  Section 13(o), Bingo Enabling Act (Article 179d,
   3-21  Vernon's Texas Civil Statutes), is amended to read as follows:
   3-22        (o)  Notwithstanding Subsection (n) of this section, a person
   3-23  who was licensed as a commercial lessor on June 10, 1989, whose
   3-24  license has been kept in effect since that date, and who is
   3-25  otherwise eligible for the license may renew the license as a
   3-26  commercial lessor of bingo premises <according to the terms of the
   3-27  license as those terms existed on June 10, 1989>.
   3-28        SECTION 7.  Section 13c, Bingo Enabling Act (Article 179d,
   3-29  Vernon's Texas Civil Statutes), is amended by adding Subsection (k)
   3-30  to read as follows:
   3-31        (k)  The commission shall require the licensee to prominently
   3-32  post the toll-free "800" telephone number established by the Texas
   3-33  Commission on Alcohol and Drug Abuse under Section 461.018, Health
   3-34  and Safety Code, on signs provided by the Texas Council on Problem
   3-35  and Compulsive Gambling near the exit and at other appropriate
   3-36  places on the premises at each bingo occasion.
   3-37        SECTION 8.  The Bingo Enabling Act (Article 179d, Vernon's
   3-38  Texas Civil Statutes) is amended by adding Section 13f to read as
   3-39  follows:
   3-40        Sec. 13f.  ACCESS TO INTERNAL REVENUE SERVICE INFORMATION.
   3-41  (a)  The commission may obtain information relating to a person's
   3-42  qualification for licensing under this Act from the Internal
   3-43  Revenue Service under a contract between the comptroller and the
   3-44  Internal Revenue Service on:
   3-45              (1)  an operator or an applicant to act as an operator
   3-46  of bingo occasions; or
   3-47              (2)  an applicant for a license to act or a person who
   3-48  holds a license to act as a commercial lessor.
   3-49        (b)  All information received by the commission from the
   3-50  Internal Revenue Service is confidential and may only be used as
   3-51  provided by the contract between the comptroller and the Internal
   3-52  Revenue Service under which the information was obtained.
   3-53        (c)  A person commits an offense if the person releases or
   3-54  discloses any information obtained under this section except on
   3-55  court order.  An offense under this subsection is a Class A
   3-56  misdemeanor.
   3-57        (d)  The comptroller shall adopt rules governing the custody
   3-58  and use of information obtained under this section.
   3-59        SECTION 9.  Section 16(e), Bingo Enabling Act (Article 179d,
   3-60  Vernon's Texas Civil Statutes), is amended to read as follows:
   3-61        (e)  After a hearing, the <The> commission may suspend or
   3-62  revoke any license issued under this Act for failure to comply with
   3-63  this Act or a rule adopted by the commission under this Act, or for
   3-64  any reason that would allow or require the commission to refuse to
   3-65  issue or renew a license of the same class.  The commission may
   3-66  summarily suspend a license issued under this Act for failure to
   3-67  comply with this Act or a rule adopted by the commission under this
   3-68  Act if the commission determines that the licensee's continued
   3-69  operation may constitute an immediate threat to the health, safety,
   3-70  morals, or welfare of the public.  The Administrative Procedure and
    4-1  Texas Register Act (Article 6252-13a, Vernon's Texas Civil
    4-2  Statutes) does not apply to the commission in the enforcement and
    4-3  administration of a summary suspension under this section.
    4-4        SECTION 10.  The Bingo Enabling Act (Article 179d, Vernon's
    4-5  Texas Civil Statutes) is amended by adding Sections 16a and 16b to
    4-6  read as follows:
    4-7        Sec. 16a.  ADMINISTRATIVE PENALTIES.  (a)  The commission may
    4-8  assess an administrative penalty against the holder of a license
    4-9  under this Act who violates a provision of this Act or a rule or
   4-10  order adopted by the commission under this Act as provided by this
   4-11  section.
   4-12        (b)  The penalty for each violation may be in an amount not
   4-13  to exceed $1,000.  Each day a violation continues or occurs may be
   4-14  considered a separate violation for purposes of penalty assessment.
   4-15        (c)  In determining the amount of the penalty, the executive
   4-16  director of the commission shall consider:
   4-17              (1)  the seriousness of the violation, including the
   4-18  nature, circumstances, extent, and gravity of the prohibited acts;
   4-19              (2)  the history of previous violations;
   4-20              (3)  the amount necessary to deter future violations;
   4-21              (4)  efforts to correct the violation; and
   4-22              (5)  any other matter that justice may require.
   4-23        (d)  If, after investigation of a possible violation and the
   4-24  facts surrounding that possible violation, the executive director
   4-25  determines that a violation has occurred, the executive director
   4-26  may issue a violation report stating the facts on which the
   4-27  conclusion that a violation occurred is based, recommending that an
   4-28  administrative penalty under this section be imposed on the person
   4-29  charged, and recommending the amount of that proposed penalty.  The
   4-30  executive director shall base the recommended amount of the
   4-31  proposed penalty on the seriousness of the violation determined by
   4-32  consideration of the factors set forth in Subsection (c) of this
   4-33  section.
   4-34        (e)  Not later than the 14th day after the date on which the
   4-35  report is issued, the executive director shall give written notice
   4-36  of the report to the person charged.  The notice shall include a
   4-37  brief summary of the charges, a statement of the amount of the
   4-38  penalty recommended, and a statement of the right of the person
   4-39  charged to a hearing on the occurrence of the violation or the
   4-40  amount of the penalty, or both the occurrence of the violation and
   4-41  the amount of the penalty.
   4-42        (f)  Not later than the 20th day after the date on which
   4-43  notice is received, the person charged may accept the determination
   4-44  of the executive director made under Subsection (d) of this
   4-45  section, including the recommended penalty, or make a written
   4-46  request for a hearing on the determination.
   4-47        (g)  If the person charged with the violation accepts the
   4-48  determination of the executive director, the executive director
   4-49  shall issue an order approving the determination and ordering the
   4-50  payment of the recommended penalty.
   4-51        (h)  If the person charged requests a hearing or fails to
   4-52  timely respond to the notice, the executive director shall set a
   4-53  hearing and give notice of the hearing.  The hearing examiner shall
   4-54  make findings of fact and conclusions of law and promptly issue to
   4-55  the commission a proposal for decision as to the occurrence of the
   4-56  violation, including a recommendation as to the amount of the
   4-57  proposed penalty if a penalty is warranted.  Based on the findings
   4-58  of fact, conclusions of law, and recommendations of the hearing
   4-59  examiner, the executive director by order may find a violation has
   4-60  occurred and may assess a penalty or may find that no violation has
   4-61  occurred.  All proceedings under this subsection are subject to the
   4-62  Administrative Procedure and Texas Register Act (Article 6252-13a,
   4-63  Vernon's Texas Civil Statutes) and its subsequent amendments.
   4-64        (i)  The executive director shall give notice of the
   4-65  executive director's order to the person charged.  The notice shall
   4-66  include:
   4-67              (1)  the findings of fact and conclusions of law
   4-68  separately stated;
   4-69              (2)  the amount of the penalty ordered, if any;
   4-70              (3)  a statement of the right of the person charged to
    5-1  judicial review of the executive director's order, if any; and
    5-2              (4)  other information required by law.
    5-3        (j)  Not later than the 30th day after the date the executive
    5-4  director's order is final as provided by Section 16(c),
    5-5  Administrative Procedure and Texas Register Act (Article 6252-13a,
    5-6  Vernon's Texas Civil Statutes), the person shall:
    5-7              (1)  pay the amount of the penalty;
    5-8              (2)  pay the amount of the penalty and file a petition
    5-9  for judicial review contesting the occurrence of the violation, the
   5-10  amount of the penalty, or both the occurrence of the violation and
   5-11  the amount of the penalty; or
   5-12              (3)  without paying the amount of the penalty, file a
   5-13  petition for judicial review contesting the occurrence of the
   5-14  violation, the amount of the penalty, or both the occurrence of the
   5-15  violation and the amount of the penalty.
   5-16        (k)  Within the 30-day period, a person who acts under
   5-17  Subsection (j)(3) of this section may:
   5-18              (1)  stay enforcement of the penalty by:
   5-19                    (A)  paying the amount of the penalty to the
   5-20  court for placement in an escrow account; or
   5-21                    (B)  giving to the court a supersedeas bond
   5-22  approved by the court for the amount of the penalty and that is
   5-23  effective until all judicial review of the commission's order is
   5-24  final; or
   5-25              (2)  request the court to stay enforcement of the
   5-26  penalty by:
   5-27                    (A)  filing with the court a sworn affidavit of
   5-28  the person stating that the person is financially unable to pay the
   5-29  amount of the penalty and is financially unable to give the
   5-30  supersedeas bond; and
   5-31                    (B)  giving a copy of the affidavit to the
   5-32  executive director by certified mail.
   5-33        (l)  If the executive director receives a copy of an
   5-34  affidavit under Subsection (k)(2) of this section, the executive
   5-35  director may file with the court not later than the fifth day after
   5-36  the date the copy is received a contest to the affidavit.  The
   5-37  court shall hold a hearing on the facts alleged in the affidavit as
   5-38  soon as practicable and shall stay the enforcement of the penalty
   5-39  on finding that the alleged facts are true.  The person who files
   5-40  an affidavit has the burden of proving that the person is
   5-41  financially unable to pay the amount of the penalty and to give a
   5-42  supersedeas bond.
   5-43        (m)  If the person does not pay the amount of the penalty and
   5-44  the enforcement of the penalty is not stayed, the executive
   5-45  director may refer the matter to the attorney general for
   5-46  collection of the amount of the penalty.
   5-47        (n)  Judicial review of the order of the commission:
   5-48              (1)  is instituted by filing a petition as provided by
   5-49  Section 19, Administrative Procedure and Texas Register Act
   5-50  (Article 6252-13a, Vernon's Texas Civil Statutes), and its
   5-51  subsequent amendments; and
   5-52              (2)  is under the substantial evidence rule.
   5-53        (o)  If the court sustains the occurrence of the violation,
   5-54  the court may uphold or reduce the amount of the penalty and order
   5-55  the person to pay the full or reduced amount of the penalty.  If
   5-56  the court does not sustain the occurrence of the violation, the
   5-57  court shall order that no penalty is owed.
   5-58        (p)  When the judgment of the court becomes final, the court
   5-59  shall proceed under this subsection.  If the person paid the amount
   5-60  of the penalty and if that amount is reduced or is not upheld by
   5-61  the court, the court shall order that the appropriate amount plus
   5-62  accrued interest be remitted to the person.  The rate of the
   5-63  interest is the rate charged on loans to depository institutions by
   5-64  the New York Federal Reserve Bank, and the interest shall be paid
   5-65  for the period beginning on the date the penalty was paid and
   5-66  ending on the date the penalty is remitted.  If the person gave a
   5-67  supersedeas bond and if the amount of the penalty is not upheld by
   5-68  the court, the court shall order the release of the bond.  If the
   5-69  person gave a supersedeas bond and if the amount of the penalty is
   5-70  reduced, the court shall order the release of the bond after the
    6-1  person pays the amount.
    6-2        (q)  A penalty collected under this section shall be remitted
    6-3  to the comptroller for deposit in the general revenue fund.
    6-4        (r)  All proceedings under this section are subject to the
    6-5  Administrative Procedure and Texas Register Act (Article 6252-13a,
    6-6  Vernon's Texas Civil Statutes) and its subsequent amendments.
    6-7        Sec. 16b.  REMEDIES NOT EXCLUSIVE.  The commission may
    6-8  suspend or revoke a license under Section 16(e) of this Act, impose
    6-9  an administrative penalty under Section 16a of this Act, or both,
   6-10  depending on the severity of the violation.
   6-11        SECTION 11.  Sections 19(c) and (d), Bingo Enabling Act
   6-12  (Article 179d, Vernon's Texas Civil Statutes), are amended to read
   6-13  as follows:
   6-14        (c)  Items of expense may not be incurred or paid in
   6-15  connection with the conduct of any game of bingo under any license
   6-16  issued under this Act except those that are reasonable and are
   6-17  necessarily expended for advertising, security, repairs to premises
   6-18  and equipment, bingo supplies and equipment, prizes, stated rental
   6-19  or mortgage and insurance expenses, if any, bookkeeping, legal, or
   6-20  accounting services related to bingo, fees in amounts authorized by
   6-21  the commission for callers, cashiers, and ushers, janitorial
   6-22  services and utility supplies and services, if any, and license
   6-23  fees.  The value of any health insurance or health benefit provided
   6-24  by a licensed authorized organization to an employee may not be
   6-25  included in the amount of a fee authorized by the commission.
   6-26        (d)  <A person may not be an operator for more than one
   6-27  licensed authorized organization, without regard to the person's
   6-28  membership status in licensed authorized organizations.>  The
   6-29  commission may adopt rules restricting involvement in the conduct,
   6-30  promotion, or administration of bingo by a licensed authorized
   6-31  commercial lessor, by a person having an interest in or who is
   6-32  active in a licensed authorized commercial lessor, or by a person
   6-33  related in the first degree by consanguinity or affinity, as
   6-34  determined under Article 5996h, Revised Statutes, to a person
   6-35  having an interest in or active in a licensed authorized commercial
   6-36  lessor, without regard to a person's membership status in a
   6-37  licensed authorized organization.
   6-38        SECTION 12.  Section 19a(k), Bingo Enabling Act (Article
   6-39  179d, Vernon's Texas Civil Statutes), is amended to read as
   6-40  follows:
   6-41        (k)  Before the end of each quarter, each licensed authorized
   6-42  organization shall disburse for charitable purposes an amount not
   6-43  less than 35 percent of the organization's adjusted gross receipts
   6-44  from the last preceding quarter, less the amount of <any credits
   6-45  allowed by rule for bingo gross receipts taxes and> authorized
   6-46  expenses not to exceed six percent of the gross receipts.  For
   6-47  purposes of this subsection, adjusted gross receipts means gross
   6-48  receipts plus any consideration received from the rental of
   6-49  premises for bingo by the authorized organization, less the amount
   6-50  of prizes paid in the preceding quarter.  If a licensed authorized
   6-51  organization fails to meet the requirements of this subsection for
   6-52  a quarter, the commission in applying appropriate sanctions may
   6-53  consider whether, taking into account the amount required to be
   6-54  distributed during that quarter and the three preceding quarters
   6-55  and the charitable distributions for each of those quarters, the
   6-56  organization has distributed a total amount sufficient to have met
   6-57  the 35 percent requirement for that quarter and the three preceding
   6-58  quarters combined.
   6-59        SECTION 13.  Sections 19b(b) and (c), Bingo Enabling Act
   6-60  (Article 179d, Vernon's Texas Civil Statutes), are amended to read
   6-61  as follows:
   6-62        (b)  The fee imposed by this section is five <three> percent
   6-63  of the amount or value of the prize.
   6-64        (c)  A licensed authorized organization shall report and
   6-65  remit the fee imposed by this section at the same time and in the
   6-66  same manner as the gross rentals <receipts> tax under Section 20 of
   6-67  this Act.
   6-68        SECTION 14.  The Bingo Enabling Act (Article 179d, Vernon's
   6-69  Texas Civil Statutes) is amended by adding Section 19c to read as
   6-70  follows:
    7-1        Sec. 19c.  LOCAL SHARE OF FEE ON PRIZES.  (a)  A county or
    7-2  municipality that imposed a gross receipts tax on the conduct of
    7-3  bingo games as of January 1, 1993, is entitled to a share of the
    7-4  fee imposed by Section 19b of this Act.
    7-5        (b)  Except as provided by Subsection (d) of this section, a
    7-6  county to which this section applies is entitled to 50 percent of
    7-7  the fee collected under Section 19b of this Act on a prize awarded
    7-8  at a bingo game conducted in the county.
    7-9        (c)  Except as provided by Subsection (d) of this section, a
   7-10  municipality to which this section applies is entitled to 50
   7-11  percent of the fee collected under Section 19b of this Act on a
   7-12  prize awarded at a bingo game conducted in the municipality.
   7-13        (d)  If a county and municipality are both entitled to a
   7-14  share of the fee imposed by Section 19b of this Act:
   7-15              (1)  the county is entitled to 25 percent of the fee
   7-16  collected under Section 19b of this Act on a prize awarded at a
   7-17  bingo game conducted in the county; and
   7-18              (2)  the municipality is entitled to 25 percent of the
   7-19  fee collected under Section 19b of this Act on a prize awarded at a
   7-20  bingo game conducted in the municipality.
   7-21        SECTION 15.  Section 20, Bingo Enabling Act (Article 179d,
   7-22  Vernon's Texas Civil Statutes), is amended to read as follows:
   7-23        Sec. 20.  REPORTING AND DUE DATE OF TAXES AND FEES.  The
   7-24  taxes and fees authorized or imposed by this Act are due and
   7-25  payable by the licensee or any person conducting bingo games
   7-26  without a license to the state treasurer quarterly on or before the
   7-27  15th day of the month succeeding each calendar quarter.  The report
   7-28  must be filed under oath on forms prescribed by the commission.
   7-29        SECTION 16.  Section 23, Bingo Enabling Act (Article 179d,
   7-30  Vernon's Texas Civil Statutes), is amended to read as follows:
   7-31        Sec. 23.  Report of Receipts, Expenses.  (a)  Each licensee
   7-32  conducting bingo games shall submit quarterly to the commission and
   7-33  to the comptroller of public accounts a report under oath
   7-34  containing the following information:
   7-35              (1)  the amount of the gross receipts derived from the
   7-36  games;
   7-37              (2)  each item of expense incurred or paid;
   7-38              (3)  each item of expenditure made or to be made, the
   7-39  name and address of each person to whom each item has been paid or
   7-40  is to be paid, with a detailed description of the merchandise
   7-41  purchased or the services rendered;
   7-42              (4)  the net proceeds derived from the games;
   7-43              (5)  the use to which the proceeds have been or are to
   7-44  be applied; and
   7-45              (6)  a list of prizes offered and given, with their
   7-46  respective values.
   7-47        (b)  Each licensee shall maintain records to substantiate the
   7-48  contents of each report.
   7-49        (c)  A copy of each report shall be furnished to the
   7-50  appropriate governing body.
   7-51        (d)  A person is not eligible for a license or a license
   7-52  renewal unless all required reports, tax returns, and requested
   7-53  information have been filed in accordance with this Act.
   7-54        (e)  <The commission by rule may provide for different
   7-55  tax-reporting periods and record-keeping procedures for licensees
   7-56  by class based on the amount of gross receipts received by a
   7-57  licensee.>
   7-58        <(f)>  The commission shall make any required reports
   7-59  available to the comptroller of public accounts as the comptroller
   7-60  may direct.
   7-61        SECTION 17.  Section 26, Bingo Enabling Act (Article 179d,
   7-62  Vernon's Texas Civil Statutes), is amended to read as follows:
   7-63        Sec. 26.  TRANSMITTALS, REFUNDS, AND COLLECTIONS.  (a)  The
   7-64  revenue collected from the fee on prizes imposed by Section 19b of
   7-65  this Act and sent to the state shall be deposited to the credit of
   7-66  a special account in the general revenue fund.
   7-67        (b)  The commission shall determine the total amount of
   7-68  revenue deposited in the account from prizes awarded at bingo games
   7-69  in each county and each municipality entitled to a share under
   7-70  Section 19c of this Act.
    8-1        (c)  Quarterly, the commission shall send to each county and
    8-2  municipality entitled under Section 19c of this Act to a share of
    8-3  the fee on prizes the county's or municipality's share as
    8-4  determined under Sections 19c(b)-(d) of this Act.
    8-5        (d)  The commission shall transfer any remaining amounts in
    8-6  the account to a nondedicated account in the general revenue fund.
    8-7        (e)  Each jurisdiction's share of the fee on prizes <all
    8-8  gross receipts taxes> collected under <Section 3 of> this Act <by
    8-9  the commission> shall be transmitted to the treasurer or the
   8-10  officer of the jurisdiction performing the functions of that office
   8-11  by the commission payable to the jurisdiction <periodically as
   8-12  promptly as feasible.  Transmittals required under this Act shall
   8-13  be made at least twice in each state fiscal year>.  The funds so
   8-14  transmitted may be used by the jurisdiction for any purpose for
   8-15  which the general funds of the jurisdiction may be used.
   8-16        <(b)  Before transmitting funds under Subsection (a) of this
   8-17  section, the commission shall deduct two percent of the sum
   8-18  collected from each jurisdiction during such period and shall
   8-19  deposit the funds in the state treasury to the credit of a special
   8-20  fund to be known as the bingo enforcement fund.  The fund may be
   8-21  used only for the administration and enforcement of this Act.>
   8-22        (f) <(c)>  The commission is authorized to retain in the
   8-23  suspense account of any jurisdiction a portion of the
   8-24  jurisdiction's share of the fee on prizes <tax> collected under
   8-25  this Act.  The balance so retained in the suspense account may not
   8-26  exceed five percent of the amount remitted to the jurisdiction.
   8-27  The commission is authorized to make refunds from the suspense
   8-28  account of any jurisdiction for overpayments made to such accounts
   8-29  and to redeem dishonored checks and drafts deposited to the credit
   8-30  of the suspense account of the jurisdiction.
   8-31        (g) <(d)>  When any jurisdiction entitled to a share of the
   8-32  fee on prizes prohibits the conduct of bingo as provided by
   8-33  Sections 4-9 of this Act <imposes the gross receipts tax and
   8-34  thereafter abolishes the tax>, the commission may retain in the
   8-35  suspense account of the jurisdiction for one year five percent of
   8-36  the final remittance to each such jurisdiction at the time of
   8-37  termination of collection of the tax in the jurisdiction to cover
   8-38  possible refunds for overpayment of the tax and to redeem
   8-39  dishonored checks and drafts deposited to the credit of the
   8-40  account.  After one year has elapsed after the effective date of
   8-41  the prohibition of bingo <abolition of the tax> in the
   8-42  jurisdiction, the commission shall remit the balance in the account
   8-43  to the jurisdiction and close the account.
   8-44        (h) <(e)>  Interest earned on all fees on prizes <taxes>
   8-45  collected by the commission under this Act before distribution to
   8-46  the local jurisdiction, including interest earned from the suspense
   8-47  accounts retained under this section, shall be credited to the
   8-48  General Revenue Fund.
   8-49        SECTION 18.  Sections 31, 32, and 33, Bingo Enabling Act
   8-50  (Article 179d, Vernon's Texas Civil Statutes), are amended to read
   8-51  as follows:
   8-52        Sec. 31.  Determination if no Return Made.  If any licensee
   8-53  fails to make a required return, or if any person conducts bingo
   8-54  without a license, the commission shall make an estimate of the
   8-55  prizes awarded at each occasion of bingo <gross receipts of the
   8-56  licensee or person conducting bingo without a license> or of the
   8-57  gross rentals received by a licensee for the rental of premises on
   8-58  which bingo is conducted.  The estimate shall be made for the
   8-59  period in respect to which the licensee or other person failed to
   8-60  make a return and shall be based on any information covering any
   8-61  period that is in the possession of the commission or may come into
   8-62  the possession of the commission.  On the basis of this estimate,
   8-63  the commission shall compute and determine the amount required to
   8-64  be paid to the state, adding to the sum a penalty of 10 percent of
   8-65  the amount.  One or more determinations may be made for one or more
   8-66  periods.
   8-67        Sec. 32.  Jeopardy Determination.  (a)  If the commission
   8-68  believes that the collection of any gross rental tax or fee on
   8-69  prizes or any amount of tax or fee on prizes required to be
   8-70  remitted to the state or the amount of any determination will be
    9-1  jeopardized by delay, the commission shall make a determination of
    9-2  the tax or fee on prizes or amount of tax or fee on prizes required
    9-3  to be collected, noting that fact upon the determination.  The
    9-4  amount determined is due and payable immediately.
    9-5        (b)  If the amount specified in the determination is not paid
    9-6  within 20 days after service of notice thereof on the licensee
    9-7  against whom the determination is made, the amount becomes final at
    9-8  the expiration of the 20 days unless a petition for redetermination
    9-9  is filed within the 20 days.  A delinquency penalty of 10 percent
   9-10  of the tax or fee on prizes  or amount of the tax or fee on prizes
   9-11  and interest at the rate of 10 percent a year shall attach to the
   9-12  amount of the tax or fee on prizes or the amount of the tax or fee
   9-13  on prizes required to be collected.
   9-14        Sec. 33.  Application of Tax Laws.  Subtitle B, Title 2, Tax
   9-15  Code, applies to the administration, collection, and enforcement of
   9-16  the gross rentals tax <taxes authorized or> imposed under Section
   9-17  2B of this Act and the fee on prizes imposed under Section 19b of
   9-18  this Act except as modified by this Act.  In applying the
   9-19  provisions <For purposes of the application> of that subtitle to
   9-20  the gross rentals tax <taxes authorized or> imposed under Section
   9-21  2B of this Act and the fee on prizes imposed under Section 19b of
   9-22  this Act only, the fee on prizes is treated as if it were a tax and
   9-23  the powers and duties assigned to the comptroller under that
   9-24  subtitle are assigned to the commission.
   9-25        SECTION 19.  Section 35(a), Bingo Enabling Act (Article 179d,
   9-26  Vernon's Texas Civil Statutes), is amended to read as follows:
   9-27        (a)  A person lawfully conducting or participating in the
   9-28  conduct of bingo or permitting the conduct on any premises owned or
   9-29  leased by him or it under any license lawfully issued under this
   9-30  Act is not liable to prosecution or conviction for violation of any
   9-31  provision of the Penal Code, as amended, or any other law or
   9-32  ordinance to the extent that such conduct is specifically
   9-33  authorized by this Act.  The immunity does not extend to any person
   9-34  knowingly conducting or participating in the conduct of bingo under
   9-35  any license obtained by any false pretense, <or by any> false
   9-36  statement, or material omission made in any application for license
   9-37  or otherwise or permitting the conduct on any premises owned or
   9-38  leased by him or it of any game of bingo conducted under any
   9-39  license known to him or it to have been obtained by any false
   9-40  pretense or statement.
   9-41        SECTION 20.  Section 36, Bingo Enabling Act (Article 179d,
   9-42  Vernon's Texas Civil Statutes), is amended to read as follows:
   9-43        Sec. 36.  OFFENSES; REVOCATION <FORFEITURE> OF LICENSE;
   9-44  INELIGIBILITY TO APPLY FOR LICENSE.  (a)  A person commits an
   9-45  offense and the <forfeits a> license is subject to revocation
   9-46  <issued> under this Act if the person:
   9-47              (1)  makes a false statement or material omission in an
   9-48  application for a license authorized to be issued under this Act;
   9-49              (2)  fails to maintain records that fully and truly
   9-50  record all transactions connected with the conducting of bingo, the
   9-51  leasing of premises to be used for the conduct of bingo, or the
   9-52  manufacture, sale, or distribution of bingo supplies, devices, or
   9-53  equipment;
   9-54              (3)  falsifies or makes any false entry in any books or
   9-55  records so far as they relate to the conduct of bingo, to the
   9-56  disposition of bingo proceeds, to the application of rent received
   9-57  by any authorized organization, or to the gross receipts realized
   9-58  from the manufacture, sale, or distribution of bingo supplies,
   9-59  devices, or equipment;
   9-60              (4)  diverts or pays any portion of the net proceeds of
   9-61  any game of bingo to any person except in furtherance of one or
   9-62  more of the lawful purposes prescribed by this Act; or
   9-63              (5)  violates this Act or a term of a license issued
   9-64  under this Act.
   9-65        (b)  An offense under Subsection (a)(2), (3), or (5) of this
   9-66  section is a Class C misdemeanor, unless it is shown on the trial
   9-67  of the offense that the person has been convicted previously under
   9-68  this section, in which event it is a Class B misdemeanor.  An
   9-69  offense under Subsection (a)(1) or (a)(4) of this section is a
   9-70  Class A misdemeanor.  This subsection does not apply to an offense
   10-1  committed under Section 39(b) or Section 40 of this Act.
   10-2        (c)  A person whose license is revoked <forfeited> under this
   10-3  section may not apply for another license under this Act until one
   10-4  year has elapsed from the date of revocation <forfeiture>.
   10-5        SECTION 21.  Sections 37(a), (b), and (c), Bingo Enabling Act
   10-6  (Article 179d, Vernon's Texas Civil Statutes), are amended to read
   10-7  as follows:
   10-8        (a)  At any time within three years after a person is
   10-9  delinquent in the payment of any amount of required gross rentals
  10-10  tax or fee on prizes due, the commission may collect the amount as
  10-11  provided by this section.
  10-12        (b)  The commission shall seize any property, real or
  10-13  personal, of the person and sell the property, or a sufficient part
  10-14  of it, at public auction to pay the amount due with any interest or
  10-15  penalties on account of the seizure and sale.  Any seizure made to
  10-16  collect the gross rentals <a> tax or the fee on prizes due shall be
  10-17  only of property of the licensee not exempt from execution under
  10-18  the laws of this state.
  10-19        (c)  Notice of the sale and the time and place of the sale
  10-20  shall be given to the delinquent person in writing at least 20 days
  10-21  before the date set for the sale as provided by this subsection.
  10-22  The notice shall be enclosed in an envelope addressed to the
  10-23  person<, in case of a sale for limited sales tax due,> at his last
  10-24  known address or place of business<, and in case of a sale for use
  10-25  taxes due, at his last known residence or place of business in this
  10-26  state>.  It shall be deposited in the United States mail, postage
  10-27  prepaid.  The notice shall also be published for at least 10 days
  10-28  before the date set for the sale in a newspaper of general
  10-29  circulation published in the county in which the property seized is
  10-30  to be sold.  If there is no newspaper of general circulation in the
  10-31  county, notice shall be posted in three public places in the county
  10-32  at least 20 days before the date set for the sale.  The notice
  10-33  shall contain a description of the property to be sold, a statement
  10-34  of the amount due, including interest, penalties, and costs, the
  10-35  name of the delinquent, and the further statement that unless the
  10-36  amount due, interest, penalties, and costs are paid on or before
  10-37  the time fixed in the notice for the sale, the property, or so much
  10-38  of it as may be necessary, will be sold in accordance with the law
  10-39  and the notice.
  10-40        SECTION 22.  Section 38, Bingo Enabling Act (Article 179d,
  10-41  Vernon's Texas Civil Statutes), is amended to read as follows:
  10-42        Sec. 38.  Bonds or Securities.  (a)  Each licensee under this
  10-43  Act shall furnish to the commission a cash bond, a bond from a
  10-44  surety company chartered or authorized to do business in this
  10-45  state, certificates of deposit, certificates of savings or U.S.
  10-46  treasury bonds or, subject to the discretion and approval of the
  10-47  commission, an assignment of negotiable stocks or bonds, or such
  10-48  other security as the commission may deem sufficient to secure the
  10-49  payment of required tax on gross rentals or fee on prizes <taxes>
  10-50  under this Act.  The commission shall fix the amount of the bond or
  10-51  security in each case, taking into consideration the amount of
  10-52  money that has or is expected to become due from the licensee under
  10-53  this Act.  The amount of the bond or security required by the
  10-54  commission may not exceed three times the amount of the licensee's
  10-55  average quarterly reports.
  10-56        (b)  On failure to pay the gross rentals tax or the fee on
  10-57  prizes <taxes> imposed under this Act, the commission may notify
  10-58  both the licensee and any surety of the delinquency by jeopardy or
  10-59  deficiency determination.  If payment is not made when due, the
  10-60  commission may forfeit the bond or security or any part thereof.
  10-61        (c)  If the licensee ceases to conduct bingo games and
  10-62  relinquishes his license, the commission shall authorize the
  10-63  release of all bonds and security on a determination that no
  10-64  amounts of gross rentals tax or fee on prizes remain due and
  10-65  payable under this Act.
  10-66        SECTION 23.  Section 39(b), Bingo Enabling Act (Article 179d,
  10-67  Vernon's Texas Civil Statutes), is amended to read as follows:
  10-68        (b)  Any person conducting, promoting, or administering a
  10-69  game commits a felony of the third degree unless the person is
  10-70  conducting, promoting, or administering a game:
   11-1              (1)  in accordance with a valid license issued under
   11-2  this Act;
   11-3              (2)  within the confines of a home for purposes of
   11-4  amusement or recreation when:
   11-5                    (A)  no player or other person furnishes anything
   11-6  of more than nominal value for the opportunity to participate;
   11-7                    (B)  participation in the game does not exceed 15
   11-8  players; and
   11-9                    (C)  the prizes awarded or to be awarded are
  11-10  nominal;
  11-11              (3)  on behalf of an organization of persons 60 years
  11-12  of age or over, a senior citizens' association, a senior citizens'
  11-13  community center program operated or funded by a governmental
  11-14  entity, or the patients in a hospital or nursing home or residents
  11-15  of a retirement home solely for the purpose of amusement and
  11-16  recreation of its members, residents, or patients, when:
  11-17                    (A)  no player or other person furnishes anything
  11-18  of more than nominal value for the opportunity to participate; and
  11-19                    (B)  the prizes awarded or to be awarded are
  11-20  nominal; or
  11-21              (4)  on behalf of a business conducting the game for
  11-22  promotional or advertising purposes if:
  11-23                    (A)  the game is conducted by or through a
  11-24  newspaper or a radio or television station;
  11-25                    (B)  participation in the game is open to the
  11-26  general public and is not limited to customers of the business;
  11-27                    (C)  playing materials are furnished without
  11-28  charge to any person on request; and
  11-29                    (D)  no player is required to furnish anything of
  11-30  value for the opportunity to participate.
  11-31        SECTION 24.  The Bingo Enabling Act (Article 179d, Vernon's
  11-32  Texas Civil Statutes) is amended by adding Section 43 to read as
  11-33  follows:
  11-34        Sec. 43.  BINGO ADVISORY COMMITTEE.  (a)  The commission
  11-35  shall appoint a bingo advisory committee consisting of nine
  11-36  members.  The committee members shall be appointed to represent a
  11-37  balance of interests including representatives of:
  11-38              (1)  the general public;
  11-39              (2)  charities that operate bingo games; and
  11-40              (3)  commercial and charity lessors that participate in
  11-41  the bingo industry.
  11-42        (b)  A bingo advisory committee member serves at the pleasure
  11-43  of the commission.  A member of the committee is not entitled to
  11-44  receive compensation for serving as a member.  A member is entitled
  11-45  to reimbursement for reasonable expenses incurred in performing
  11-46  duties as a member of the committee.
  11-47        (c)  The bingo advisory committee shall:
  11-48              (1)  advise the commission on the needs and problems of
  11-49  the state's bingo industry;
  11-50              (2)  comment on rules involving bingo during their
  11-51  development and before their final adoption unless an emergency
  11-52  requires immediate action by the commission;
  11-53              (3)  report annually to the commission on the
  11-54  committee's activities; and
  11-55              (4)  perform other duties as determined by the
  11-56  commission.
  11-57        (d)  The bingo advisory committee shall meet quarterly or as
  11-58  requested by the commission.
  11-59        (e)  The commission may adopt rules to govern the operations
  11-60  of the bingo advisory committee.
  11-61        SECTION 25.  Section 112.058, Tax Code, is amended by adding
  11-62  Subsection (f) to read as follows:
  11-63        (f)  All protest payments of taxes imposed by and collected
  11-64  for the state under the Bingo Enabling Act (Article 179d, Vernon's
  11-65  Texas Civil Statutes) that become due on or after September 1,
  11-66  1993, are governed by Subchapter J, Chapter 403, Government Code.
  11-67        SECTION 26.  Sections 2A, 3, 4(b), 13(p), 13c(j), 16(c), 21,
  11-68  and 22, Bingo Enabling Act (Article 179d, Vernon's Texas Civil
  11-69  Statutes), are repealed.
  11-70        SECTION 27.  This Act takes effect September 1, 1993, except
   12-1  that Section 16 of this Act takes effect October 1, 1993, but only
   12-2  if H.B. No. 1587, 73rd Legislature, Regular Session, 1993, or S.B.
   12-3  No. 550, 73rd Legislature, Regular Session, 1993, is enacted and
   12-4  becomes law.  If neither H.B. No. 1587, 73rd Legislature, Regular
   12-5  Session, 1993, nor S.B. No. 550, 73rd Legislature, Regular Session,
   12-6  1993, is enacted and becomes law, this Act has no effect.
   12-7        SECTION 28.  (a)  As soon as practicable, but not later than
   12-8  January 1, 1994:
   12-9              (1)  all powers, duties, rights, and obligations of the
  12-10  Texas Alcoholic Beverage Commission relating to the administration
  12-11  and regulation of bingo are transferred to the Texas Lottery
  12-12  Commission;
  12-13              (2)  except as provided by Subsections (b) and (c) of
  12-14  this section, all assets, liabilities, personnel, equipment, data,
  12-15  documents, facilities, and other items of the Texas Alcoholic
  12-16  Beverage Commission relating to the administration and regulation
  12-17  of bingo are transferred to the Texas Lottery Commission; and
  12-18              (3)  any appropriation to the Texas Alcoholic Beverage
  12-19  Commission relating to the administration and regulation of bingo
  12-20  is transferred to the Texas Lottery Commission.
  12-21        (b)  The Texas Alcoholic Beverage Commission may decide
  12-22  whether to transfer to the Texas Lottery Commission:
  12-23              (1)  personnel who perform both duties that relate to
  12-24  bingo regulation and duties that do not relate to bingo regulation;
  12-25  and
  12-26              (2)  assets used both in bingo regulation and
  12-27  activities other than bingo regulation.
  12-28        (c)  The Texas Lottery Commission may decide whether to
  12-29  accept personnel from the Texas Alcoholic Beverage Commission.
  12-30        (d)  The officers and employees of the Texas Alcoholic
  12-31  Beverage Commission  shall cooperate fully with the reorganization.
  12-32        (e)  A transfer of functions under Subsection (a) of this
  12-33  section shall occur on the date specified in an interagency
  12-34  contract between the Texas Lottery Commission and the Texas
  12-35  Alcoholic Beverage Commission.
  12-36        (f)  Notwithstanding the changes made by this Act to the
  12-37  Bingo Enabling Act (Article 179d, Vernon's Texas Civil Statutes),
  12-38  the Texas Alcoholic Beverage Commission retains all powers and
  12-39  duties relating to the regulation of bingo until the effective date
  12-40  of the transfer under Subsection (a) of this section, and:
  12-41              (1)  a reference in the Bingo Enabling Act (Article
  12-42  179d, Vernon's Texas Civil Statutes) to the Texas Lottery
  12-43  Commission is considered to be a reference to the Texas Alcoholic
  12-44  Beverage Commission until that date; and
  12-45              (2)  a reference in the Bingo Enabling Act (Article
  12-46  179d, Vernon's Texas Civil Statutes) to the executive director of
  12-47  the Texas Lottery Commission is considered to be a reference to the
  12-48  administrator of the Texas Alcoholic Beverage Commission until that
  12-49  date.
  12-50        SECTION 29.  (a)  A change in law made by this Act does not
  12-51  affect:
  12-52              (1)  the validity of any action taken by the Texas
  12-53  Alcoholic Beverage Commission under the Bingo Enabling Act (Article
  12-54  179d, Vernon's Texas Civil Statutes) before the effective date of
  12-55  the change in law; or
  12-56              (2)  a civil, criminal, or administrative proceeding
  12-57  completed before the effective date of this Act.
  12-58        (b)  A change in law made by this Act does not affect the
  12-59  validity of a civil, criminal, or administrative proceeding,
  12-60  including licensing or rulemaking, in progress on the effective
  12-61  date of the change in law.  A civil, criminal, or administrative
  12-62  proceeding under the Bingo Enabling Act (Article 179d, Vernon's
  12-63  Texas Civil Statutes) that is in progress on the effective date of
  12-64  a transfer of functions under Section 28 of this Act continues as
  12-65  if it had been initiated by the Texas Lottery Commission under the
  12-66  law in effect on the effective date of the transfer.
  12-67        (c)  All forms, rules, and procedures adopted by the Texas
  12-68  Alcoholic Beverage Commission for the administration and
  12-69  enforcement of the Bingo Enabling Act (Article 179d, Vernon's Texas
  12-70  Civil Statutes) and in effect on the effective date of a transfer
   13-1  of functions under Section 28 of this Act remain in effect on or
   13-2  after that date as if adopted by the Texas Lottery Commission until
   13-3  the earlier of:
   13-4              (1)  the date the form, rule, or procedure is amended,
   13-5  repealed, withdrawn, or otherwise superseded by the Texas Lottery
   13-6  Commission; or
   13-7              (2)  the first anniversary of the effective date of a
   13-8  transfer of functions under Section 28 of this Act.
   13-9        (d)  Before the first anniversary of the effective date of a
  13-10  transfer of functions under Section 28 of this Act, the Texas
  13-11  Lottery Commission shall review each form, rule, and procedure
  13-12  adopted by the Texas Alcoholic Beverage Commission under the Bingo
  13-13  Enabling Act (Article 179d, Vernon's Texas Civil Statutes) and may
  13-14  specifically adopt any form, rule, or procedure.  A form, rule, or
  13-15  procedure that is not specifically adopted expires as provided by
  13-16  Subsection (c) of this section.
  13-17        (e)  A license issued under the Bingo Enabling Act (Article
  13-18  179d, Vernon's Texas Civil Statutes) and in effect on the effective
  13-19  date of a transfer of functions under Section 28 of this Act
  13-20  remains in effect according to its terms as if issued by the Texas
  13-21  Lottery Commission until the license expires or is revoked or
  13-22  surrendered.
  13-23        (f)  The change in law made by this Act does not affect taxes
  13-24  imposed under the Bingo Enabling Act (Article 179d, Vernon's Texas
  13-25  Civil Statutes) before the effective date of this Act, and the law
  13-26  in effect before the effective date of this Act is continued in
  13-27  effect for purposes of the liability for and collection and
  13-28  allocation of those taxes.  The Texas Alcoholic Beverage
  13-29  Commission, until the transfer of functions under Section 28 of
  13-30  this Act, and the Texas Lottery Commission on and after the
  13-31  transfer, may maintain a suspense account for any county or
  13-32  municipality that imposed a tax under Section 3, Bingo Enabling
  13-33  Act, before the effective date of this Act for not more than one
  13-34  year after the effective date of this Act to cover tax refunds and
  13-35  to redeem dishonored checks and drafts deposited in connection with
  13-36  the taxes imposed by the county or municipality.
  13-37        (g)  A change in law made by this Act applies only to an
  13-38  offense committed on or after September 1, 1993.  For the purposes
  13-39  of this subsection, an offense is committed before September 1,
  13-40  1993, if any element of the offense occurs before that date.
  13-41        (h)  An offense committed before September 1, 1993, is
  13-42  covered by the law in effect when the offense was committed, and
  13-43  the former law is continued in effect for that purpose.
  13-44        SECTION 30.  The importance of this legislation and the
  13-45  crowded condition of the calendars in both houses create an
  13-46  emergency and an imperative public necessity that the
  13-47  constitutional rule requiring bills to be read on three several
  13-48  days in each house be suspended, and this rule is hereby suspended.
  13-49                               * * * * *
  13-50                                                         Austin,
  13-51  Texas
  13-52                                                         May 5, 1993
  13-53  Hon. Bob Bullock
  13-54  President of the Senate
  13-55  Sir:
  13-56  We, your Committee on State Affairs to which was referred H.B. No.
  13-57  2771, have had the same under consideration, and I am instructed to
  13-58  report it back to the Senate with the recommendation that it do not
  13-59  pass, but that the Committee Substitute adopted in lieu thereof do
  13-60  pass and be printed.
  13-61                                                         Harris of
  13-62  Dallas, Chairman
  13-63                               * * * * *
  13-64                               WITNESSES
  13-65                                                  FOR   AGAINST  ON
  13-66  ___________________________________________________________________
  13-67  Name:  L. Dewitt Hale                            x
  13-68  Representing:  Prairie Entertain Corp
  13-69  City:  Austin
  13-70  -------------------------------------------------------------------
   14-1  Name:  Deborah Tucker                            x
   14-2  Representing:  Bingo Is Good For Nonprofit
   14-3  City:  Austin
   14-4  -------------------------------------------------------------------