By Goolsby                                            H.B. No. 3361
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of the Texas Lottery Commission to
 1-3     summarily suspend licenses issued under the Bingo Enabling Act.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter H, Chapter 2001, Occupations Code, is
 1-6     amended by adding Sections 2001.358 to read as follows:
 1-7           Section 2001.358.  Summary Suspension. (a)  The commission,
 1-8     through its Charitable Bingo Director, may summarily suspend,
 1-9     without notice or a hearing, the license of a person if the
1-10     Charitable Bingo Director finds that the action is necessary to
1-11     prevent financial loss to the state and the licensee fails to file
1-12     a report or return or make a fee or tax payment required by this
1-13     chapter.
1-14           (b)  The commission, through its Charitable Bingo Director,
1-15     may summarily suspend a license if proceedings for a preliminary
1-16     hearing before the commission or the commission's representative
1-17     are initiated simultaneously with the summary suspension.  The
1-18     preliminary hearing shall be set for a date not later than 10 days
1-19     after the date of the summary suspension, unless the parties agree
1-20     to a later date.
1-21           (c)  At the preliminary hearing, the licensee must show cause
1-22     why the license should not remain suspended pending a final hearing
1-23     on suspension or revocation.  Chapter 2001, Government Code, does
 2-1     not apply to a summary suspension under this section.
 2-2           (d)  To initiate a proceeding to summarily suspend a license,
 2-3     the commission, through its Charitable Bingo Director, must serve
 2-4     notice to the licensee informing the licensee of the right to a
 2-5     preliminary hearing and of the time and place of the preliminary
 2-6     hearing.  The notice must be personally served on the licensee or
 2-7     an officer, employee, agent of the licensee or sent by certified or
 2-8     registered mail, return receipt requested, to the licensee's
 2-9     mailing address as it appears on the commission's records.  The
2-10     notice must state the alleged violations that constitute grounds
2-11     for summary suspension.  If notice is served in person, the
2-12     licensee shall immediately surrender the license to the commission.
2-13     If notice is served by mail, the licensee shall immediately return
2-14     the license to the commission.
2-15           (e)  A suspension under this section takes effect on the
2-16     third day after the date the notice of suspension is given.
2-17           (f)  The commission shall terminate a suspension made under
2-18     this section when the licensee files all required reports and
2-19     returns and makes all required tax and fee payments, including
2-20     payments of interest and penalties that are due.
2-21           SECTION 2.  Sections 2001.355 and 2001.356, Occupations Code,
2-22     are repealed.
2-23           SECTION 3.  This Act takes effect October 1, 2001.