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78S10141 YDB-F
By: Wilson H.B. No. 55
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Lottery
Commission; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 466.014, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) A contract between the division and a lottery operator
under Subsection (b) must contain a provision allowing the contract
to be terminated without penalty if the division is abolished.
SECTION 2. Section 466.022(b), Government Code, is amended
to read as follows:
(b) In addition to commission records excepted from
disclosure under Chapter 552, the following information is
confidential and is exempt from disclosure:
(1) security plans and procedures of the commission
designed to ensure the integrity and security of the operation of
the lottery;
(2) information of a nature that is designed to ensure
the integrity and security of the selection of winning tickets or
numbers in the lottery, other than information describing the
general procedures for selecting winning tickets or numbers; [and]
(3) the street address and telephone number of a prize
winner, if the prize winner has not consented to the release of the
information; and
(4) personal information identifying an individual
collected as part of a player informational database.
SECTION 3. Section 466.024(c)(2), Government Code, is
amended to read as follows:
(2) "Video lottery machine" or "machine" means:
(A) any electronic video game machine that, on
[upon] insertion of cash or credit or for any other consideration,
is available to play or simulate the play of a video facsimile of
[game, including video] poker, keno, [and] blackjack, or slots; or
(B) a video device that uses [using] a video
display and microprocessors and is designed, constructed, adapted,
or maintained to afford a person who pays consideration to play or
use the machine an opportunity to obtain a thing of value based
solely or in substantial part on chance, including [in which the
player may receive free games or credits that can be redeemed for]
cash, coins, merchandise, gift certificates, [or] tokens, and free
games or credits that can be redeemed for [or that directly
dispenses] cash, coins, merchandise, gift certificates, or tokens.
SECTION 4. Subchapter B, Chapter 466, Government Code, is
amended by adding Section 466.027 to read as follows:
Sec. 466.027. COMPREHENSIVE BUSINESS PLAN. (a) The
commission shall develop a comprehensive business plan to guide the
commission's major initiatives. The plan must at a minimum
include:
(1) a description of each commission program and
project;
(2) key management information;
(3) accurate financial data; and
(4) a detailed financial management plan.
(b) The commission shall at least annually review the
comprehensive business plan to assess the overall performance and
value of each program and project.
SECTION 5. Subchapter B, Chapter 466, Government Code, is
amended by adding Section 466.0245 to read as follows:
Sec. 466.0245. PROHIBITED GAMING MACHINES; DUTIES OF
COMPTROLLER. (a) In this section, "prohibited gaming machine"
means a machine that is:
(1) prohibited under this chapter; or
(2) a gambling device, as defined by Section 47.01,
Penal Code, that is possessed, used, exhibited, or displayed in a
manner that violates Chapter 47, Penal Code.
(b) The comptroller or an authorized representative of the
comptroller may seal a prohibited gaming machine in a manner that
prevents the full operation of the machine.
(c) The comptroller may assess a penalty of not less than
$500 and not more than $10,000 against a person who exhibits,
displays, or provides to another a prohibited gaming machine.
(d) Notwithstanding the penalty provided by other law, an
offense under Section 2153.355(a)(5), (6), or (7), Occupations
Code, or under Section 2153.361, Occupations Code, is a Class A
misdemeanor if the offense involves a prohibited gaming machine.
(e) In addition to the amounts allocated under Section
466.355(b), $5 million is allocated from the state lottery account
in each fiscal biennium to the comptroller to enforce this section.
SECTION 6. Subchapter C, Chapter 466, Government Code, is
amended by adding Section 466.1005 to read as follows:
Sec. 466.1005. PROCUREMENTS. (a) The commission may
purchase or lease facilities, goods, and services and make any
purchases, leases, or contracts necessary for carrying out the
purposes of this chapter.
(b) The commission shall review and must approve all major
procurements as provided by commission rule. The commission by
rule shall establish a procedure to determine what constitutes a
major procurement based on the cumulative value of a contract and
other relevant factors.
(c) The commission may delegate to the executive director
the authority to approve procurements other than major
procurements.
SECTION 7. Section 466.101, Government Code, is amended by
amending Subsections (a) and (b) and adding Subsection (f) to read
as follows:
(a) The commission and executive director may establish
procedures for the purchase or lease of facilities, goods, and
services and make any purchases, leases, or contracts that are
necessary for carrying out the purposes of this chapter. The
procedures must, as determined feasible and appropriate by the
commission and executive director, promote competition to the
maximum extent possible.
(b) In all procurement decisions, the commission and
executive director shall take into account the particularly
sensitive nature of the lottery and shall act to promote and ensure
integrity, security, honesty, and fairness in the operation and
administration of the lottery and the objective of producing
revenues for the state treasury.
(f) In awarding a contract under this chapter or evaluating
a bid or proposal relating to a contract, the executive director may
consider a vendor's economic impact to the state or a political
subdivision of the state.
SECTION 8. Subchapter C, Chapter 466, Government Code, is
amended by adding Section 466.111 to read as follows:
Sec. 466.111. SALE OF LOTTERY PROMOTIONAL MERCHANDISE. (a)
The commission may make available for sale to the public lottery
promotional merchandise to market and promote ticket sales.
(b) The executive director shall propose rules to be adopted
by the commission regarding sales of lottery promotional
merchandise, including the method for pricing, advertising,
purchasing, and selling lottery promotional merchandise.
(c) Proceeds from the sale of lottery promotional
merchandise, less the cost of advertising the sale and any related
expenses, shall be deposited to the credit of the general revenue
fund.
SECTION 9. Section 466.151, Government Code, is amended by
amending Subsection (d) and adding Subsection (f) to read as
follows:
(d) The director may license as a sales agent each person
the director believes will best serve the public convenience. The
director may not issue a license to a person to engage in business
exclusively as a sales agent. A license may not be transferred or
assigned to any other person [or location].
(f) On application by a sales agent the director may amend
the sales agent's license to change the location of the sales
agency, if the proposed location complies with this chapter. The
application must be on a form prescribed by the director and be
accompanied by a fee in an amount determined by the director to be
at least sufficient to cover the costs incurred by the division for
processing the license amendment. The sales agent must certify to
the director that the proposed location complies with the Americans
with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.).
SECTION 10. Section 466.155(a), Government Code, is amended
to read as follows:
(a) After a hearing, the director shall deny an application
for a license or the commission shall suspend or revoke a license if
the director or commission, as applicable, finds that the applicant
or sales agent:
(1) is an individual who:
(A) has been convicted of a felony, criminal
fraud, gambling or a gambling-related offense, or a misdemeanor
involving moral turpitude, if less than 10 years has elapsed since
the termination of the sentence, parole, mandatory supervision, or
probation served for the offense;
(B) is or has been a professional gambler;
(C) is married to an individual:
(i) described in Paragraph (A) or (B); or
(ii) who is currently delinquent in the
payment of any state tax;
(D) is an officer or employee of the commission
or a lottery operator; or
(E) is a spouse, child, brother, sister, or
parent residing as a member of the same household in the principal
place of residence of a person described by Paragraph (D);
(2) is not an individual, and an individual described
in Subdivision (1):
(A) is an officer or director of the applicant or
sales agent;
(B) holds more than 10 percent of the stock in the
applicant or sales agent;
(C) holds an equitable interest greater than 10
percent in the applicant or sales agent;
(D) is a creditor of the applicant or sales agent
who holds more than 10 percent of the applicant's or sales agent's
outstanding debt;
(E) is the owner or lessee of a business that the
applicant or sales agent conducts or through which the applicant
will conduct a ticket sales agency;
(F) shares or will share in the profits, other
than stock dividends, of the applicant or sales agent; or
(G) participates in managing the affairs of the
applicant or sales agent;
(3) has been finally determined to be:
(A) delinquent in the payment of a tax or other
money collected by the comptroller, the Texas Workforce Commission,
or the Texas Alcoholic Beverage Commission;
(B) in default on a loan made under Chapter 52,
Education Code; or
(C) in default on a loan guaranteed under Chapter
57, Education Code;
(4) is a person whose location for the sales agency is:
(A) a location licensed for games of bingo under
Chapter 2001, Occupations Code;
(B) on land that is owned by:
(i) this state; or
(ii) a political subdivision of this state
and on which is located a public primary or secondary school, an
institution of higher education, or an agency of the state; [or]
(C) a location for which a person holds a wine and
beer retailer's permit, mixed beverage permit, mixed beverage late
hours permit, private club registration permit, or private club
late hours permit issued under Chapter 25, 28, 29, 32, or 33,
Alcoholic Beverage Code; or
(D) a location:
(i) in a facility that shares a common roof
or common foundation with a location at which a gambling device, as
defined by Section 47.01, Penal Code, is operated or located; or
(ii) within 150 feet of the facility that
shares the common roof or common foundation described by
Subparagraph (i); or
(5) has violated this chapter or a rule adopted under
this chapter.
SECTION 11. Section 466.158, Government Code, is amended by
adding Subsections (d), (e), and (f) to read as follows:
(d) In making a determination whether to renew a license,
the commission shall consider the compliance history of a license
holder. The commission shall adopt rules to govern the specific
areas of compliance history that may be considered in the renewal
determination.
(e) After an opportunity for a hearing, the commission may
deny an application for renewal of a license if the applicant's
compliance history reveals conduct that is inconsistent with this
chapter or the commission's rules adopted under this chapter in the
specific areas considered by the commission in accordance with the
rules adopted under Subsection (d).
(f) The commission by rule may adopt a system under which
licenses expire on various dates during the year. For the year in
which the license expiration date is changed, the commission shall
prorate license fees on a monthly basis so that each license holder
pays only that portion of the license fee that is allocable to the
number of months during which the license is valid. On renewal of
the license on the new expiration date, the total license renewal
fee is payable.
SECTION 12. Section 466.160(a), Government Code, is amended
to read as follows:
(a) The commission may suspend a sales agent's license
summarily without notice or hearing if the commission finds that
the action is necessary to maintain the integrity, security,
honesty, or fairness of the operation or administration of the
lottery or to prevent financial loss to the state and:
(1) the sales agent fails to deposit money received
from ticket sales under Section 466.351;
(2) an event occurs that would render the sales agent
ineligible for a license under Section 466.155;
(3) the sales agent refuses to permit the executive
director, the director, the commission, or the state auditor to
examine the agent's books, records, papers, or other objects under
Section 466.017(b); [or]
(4) the executive director learns the sales agent has
failed to disclose information that would, if disclosed, render the
sales agent ineligible for a license under Section 466.155; or
(5) the sales agent fails on request to provide a
complete legible set of fingerprints of a person required to be
named in a license application.
SECTION 13. Section 466.202(b), Government Code, is amended
to read as follows:
(b) The [executive] director may deny an application for a
license or the commission may summarily suspend, suspend, or revoke
a license if the applicant or sales agent fails on request to
provide a complete legible set of fingerprints of a person required
to be named in a license application.
SECTION 14. The heading to Subchapter G, Chapter 466,
Government Code, is amended to read as follows:
SUBCHAPTER G. OFFENSES, PENALTIES, AND ENFORCEMENT
SECTION 15. Subchapter G, Chapter 466, Government Code, is
amended by adding Section 466.318 to read as follows:
Sec. 466.318. PROHIBITED VIDEO GAMES. (a) A person commits
an offense if the person violates a rule adopted by the commission
under Section 466.024(b).
(b) An offense under Subsection (a) is a Class B
misdemeanor.
(c) Venue for prosecution of an offense under Subsection
(a), in addition to venue under other law, is in Travis County.
(d) A person who violates a rule adopted by the commission
under Section 466.024(b) is liable to the state for a civil penalty
in an amount not to exceed $1,000 for each violation. Each act of
violation and each day a violation continues is a separate
violation for purposes of this subsection.
(e) A penalty imposed under Subsection (d) may be recovered
by:
(1) the county attorney of the county in which the
violation occurred; or
(2) the attorney general in a suit filed in Travis
County.
(f) A person who resides or owns real property located
within two miles of a place where a violation or threatened
violation of a rule adopted by the commission under Section
466.024(b) occurs may bring an action to enjoin a person from
continuing the violation or threatened violation.
(g) Any person may bring a complaint to the commission, the
attorney general, or a prosecuting attorney of an alleged or
suspected violation of a rule adopted by the commission under
Section 466.024(b).
SECTION 16. Section 466.353, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) The failure of a sales agent to notify the director that
an individual has ceased to be an officer, director, or owner of a
sales agent if that notification is required by Section 466.153
does not relieve the former officer, director, or owner from
liability under Subsection (b), and the individual is liable under
Subsection (b) as if the individual were an officer, director, or
owner of the sales agent for any liability that accrues before the
sales agent notifies the director that the individual is no longer
an officer, director, or owner of the sales agent.
SECTION 17. Section 466.355, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) In addition to the amounts allocated by Subsection (b),
$5 million is allocated from the state lottery account in each
fiscal biennium to the criminal justice division of the governor's
office to provide grants to assist local governments in the
prosecution of offenses involving gambling devices as defined by
Section 47.01, Penal Code.
SECTION 18. Section 466.402, Government Code, is amended by
amending Subsection (d) and adding Subsection (e) to read as
follows:
(d) A person claiming a lottery prize shall disclose to the
commission the person's name and social security number or employer
identification number. If the person claiming the prize is a legal
entity, the person shall disclose all legal and beneficial
interests in the entity to the commission by sworn statement in
accordance with commission rules. The name of any person who claims
a prize or who is identified as having a legal or beneficial
interest in a legal entity that claims a prize is public
information. A person's name is confidential until a ticket is
validated.
(e) The state is discharged of all further liability on the
payment of a prize under Section 466.403, 466.404, 466.406,
466.407, or 466.410 or this section or under any additional
procedures established by rule.
SECTION 19. Section 466.405(e), Government Code, is amended
to read as follows:
(e) In this section:
(1) "Custodian" and[, "adult," "bank," "custodian,"]
"guardian[,]" ["member of a minor's family," and "minor"] have the
meanings assigned by Section 141.002, Property Code.
(2) "Member of a minor's family" means the minor's
parent, stepparent, spouse, grandparent, brother, sister, uncle,
or aunt, whether of whole or half blood or by adoption.
(3) "Minor" means an individual who is younger than 18
years of age.
SECTION 20. (a) Section 467.002, Government Code, as
amended by Section 1.03, H.B. No. 2455, Acts of the 78th
Legislature, Regular Session, 2003, is amended to read as follows:
Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
subject to Chapter 325 (Texas Sunset Act). Unless continued in
existence as provided by that chapter, the commission is abolished
and this chapter, Chapter 466 of this code, and Chapter 2001,
Occupations Code, expire [Act expires] September 1, 2015 [2005. In
the review of the commission by the Sunset Advisory Commission, as
required by this section, the sunset commission shall limit its
review to the appropriateness of recommendations made by the sunset
commission to the 78th Legislature. In the Sunset Advisory
Commission's report to the 79th Legislature, the sunset commission
may include any recommendations it considers appropriate].
(b) Section 466.003(a), Government Code, as amended by
Section 1.03, H.B. No. 2455, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(a) The lottery division is subject to Chapter 325 (Texas
Sunset Act). Unless continued in existence as provided by that
chapter, the division is abolished and this chapter expires
September 1, 2015 [2005. In the review of the lottery division by
the Sunset Advisory Commission, as required by this section, the
sunset commission shall limit its review to the appropriateness of
recommendations made by the sunset commission to the 78th
Legislature. In the Sunset Advisory Commission's report to the
79th Legislature, the sunset commission may include any
recommendations it considers appropriate].
SECTION 21. Section 467.021(b), Government Code, is amended
to read as follows:
(b) Appointments [In making appointments] to the commission
shall be made without[, the governor shall strive to achieve
representation by all the population groups of the state with]
regard to the [economic status, sex,] race, color, disability, sex,
religion, age, or national origin of the appointees [and
ethnicity].
SECTION 22. Section 467.024, Government Code, is amended by
adding Subsections (c) and (d) to read as follows:
(c) A person may not be a commission employee employed in a
"bona fide executive, administrative, or professional capacity,"
as that phrase is used for purposes of establishing an exemption to
the overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), and its subsequent
amendments, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of bingo or
lottery; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of bingo or
lottery.
(d) A person may not act as the general counsel to the
commission if the person is required to register as a lobbyist under
Chapter 305 because of the person's activities for compensation on
behalf of a profession related to the operation of the commission.
SECTION 23. Subchapter B, Chapter 467, Government Code, is
amended by adding Section 467.0255 to read as follows:
Sec. 467.0255. TRAINING. (a) A person who is appointed to
and qualifies for office as a member of the commission may not vote,
deliberate, or be counted as a member in attendance at a meeting of
the commission until the person completes a training program that
complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the commission;
(2) the programs operated by the commission;
(3) the role and functions of the commission;
(4) the rules of the commission, with an emphasis on
the rules that relate to disciplinary and investigatory authority;
(5) the current budget for the commission;
(6) the results of the most recent formal audit of the
commission;
(7) the requirements of:
(A) the open meetings law, Chapter 551;
(B) the public information law, Chapter 552;
(C) the administrative procedure law, Chapter
2001; and
(D) other laws relating to public officials,
including conflict-of-interest laws; and
(8) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
(c) A person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
SECTION 24. Sections 467.026(a) and (c), Government Code,
are amended to read as follows:
(a) It is a ground for removal from the [The governor may
remove a] commission that a member [if the member]:
(1) does not have at the time of taking office
[appointment] the qualifications required by Sections 467.023 and
467.024 [for appointment to the commission];
(2) does not maintain during service on the commission
the qualifications required by Sections 467.023 and 467.024 [for
appointment to the commission];
(3) is ineligible for membership under [violates a
prohibition established by] Section 467.023, 467.024, or 467.025;
(4) cannot discharge the member's duties for a
substantial part of the member's term [for which the member is
appointed] because of illness or disability; or
(5) is absent from more than half of the regularly
scheduled commission meetings that the member is eligible to attend
during a calendar year without an excuse approved [unless the
absence is excused] by majority vote of the commission.
(c) If the executive director [presiding officer] has
knowledge that a potential ground for removal exists, the executive
director [presiding officer] shall notify the presiding officer of
the commission of the potential ground. The presiding officer
shall then notify the governor and the attorney general that a
potential ground for removal exists. If the potential ground for
removal involves the presiding officer, the executive director
shall notify the next highest ranking officer of the commission,
who shall then notify the governor and the attorney general that a
potential ground for removal exists.
SECTION 25. Section 467.032, Government Code, is amended to
read as follows:
Sec. 467.032. EXECUTIVE DIRECTOR AND BINGO OPERATIONS
DIRECTOR. (a) The commission shall employ:
(1) an executive director to administer this chapter
and Chapter 466; and
(2) a director of bingo operations to administer this
chapter with regard to the bingo division and Chapter 2001,
Occupations Code.
(b) The executive director and the bingo operations
director serve [holds office] at the will of the commission and are
[is] specifically exempted from Chapter 654.
(c) The bingo operations director has broad authority and
shall exercise strict control and close supervision over all bingo
games conducted in this state to promote and ensure integrity,
security, honesty, and fairness in the administration and
regulation of bingo [executive director or an acting executive
director shall be appointed by the commission no later than
November 1, 1993].
(d) The bingo operations director may contract with or
employ a person to perform a function, activity, or service in
connection with the administration and regulation of bingo.
SECTION 26. Section 467.033, Government Code, is amended to
read as follows:
Sec. 467.033. DIVISION DIRECTORS. The executive director
shall employ a director to oversee each division other than the
bingo division. A division director employed under this section
serves at the will of the executive director and is specifically
exempted from Chapter 654.
SECTION 27. Section 467.034, Government Code, is amended to
read as follows:
Sec. 467.034. EMPLOYEES. (a) The executive director shall
employ other personnel, other than the bingo division personnel,
necessary to administer the laws under the commission's
jurisdiction. Commission personnel employed under this subsection
[employees] serve at the will of the executive director.
(b) The bingo operations director shall employ personnel to
administer Chapter 2001, Occupations Code. The personnel serve at
the will of the bingo operations director.
(c) The executive director shall employ the personnel that
perform services for both the lottery and bingo divisions. The
personnel serve at the will of the executive director.
SECTION 28. Section 467.035(a), Government Code, is amended
to read as follows:
(a) The commission may not employ or continue to employ a
person who:
(1) owns a financial interest in:
(A) [(1)] a bingo commercial lessor, bingo
distributor, or bingo manufacturer; or
(B) [(2)] a lottery sales agency or a lottery
operator; or
(2) would be denied a license as a sales agent under
Section 466.155.
SECTION 29. Subchapter B, Chapter 467, Government Code, is
amended by adding Sections 467.037-467.040 to read as follows:
Sec. 467.037. DIVISION OF RESPONSIBILITIES. The commission
shall develop and implement policies that clearly separate the
policymaking responsibilities of the commission and the management
responsibilities of the executive director and the staff of the
commission.
Sec. 467.038. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT.
(a) The executive director or the executive director's designee
shall prepare and maintain a written policy statement that
implements a program of equal employment opportunity to ensure that
all personnel decisions are made without regard to race, color,
disability, sex, religion, age, or national origin.
(b) The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the commission to avoid the
unlawful employment practices described by Chapter 21, Labor Code;
and
(2) an analysis of the extent to which the composition
of the commission's personnel is in accordance with state and
federal law and a description of reasonable methods to achieve
compliance with state and federal law.
(c) The policy statement must:
(1) be updated annually;
(2) be reviewed by the state Commission on Human
Rights for compliance with Subsection (b)(1); and
(3) be filed with the governor's office.
Sec. 467.039. REQUIREMENTS AND STANDARDS OF CONDUCT
INFORMATION. The executive director or the executive director's
designee shall provide to members of the commission and to
commission employees, as often as necessary, information regarding
the requirements for office or employment under this chapter,
including information regarding a person's responsibilities under
applicable laws relating to standards of conduct for state officers
or employees.
Sec. 467.040. STATE EMPLOYEE INCENTIVE PROGRAM
INFORMATION. The executive director or the executive director's
designee shall provide to commission employees information and
training on the benefits and methods of participation in the state
employee incentive program.
SECTION 30. Subchapter C, Chapter 467, Government Code, is
amended by adding Section 467.1015 to read as follows:
Sec. 467.1015. COMMISSION EMPLOYEES. The commission or an
individual commissioner may employ other personnel as necessary,
including executive assistants, to perform the duties of the
commission or the duties of the individual commissioner, subject to
Chapter 654.
SECTION 31. The heading to Section 467.103, Government
Code, is amended to read as follows:
Sec. 467.103. DUTIES OF EXECUTIVE DIRECTOR AND BINGO
OPERATIONS DIRECTOR.
SECTION 32. Section 467.103(a), Government Code, is amended
to read as follows:
(a) The executive director and bingo operations director
shall perform all duties required by the commission to administer
this chapter and the laws under the commission's jurisdiction. The
executive director and bingo operations director may not hold other
employment.
SECTION 33. Section 467.104(b), Government Code, is amended
to read as follows:
(b) The executive director shall keep the records of the
commission, except that the bingo operations director shall keep
the records of the bingo division.
SECTION 34. Subchapter C, Chapter 467, Government Code, is
amended by adding Section 467.109 to read as follows:
Sec. 467.109. INTELLECTUAL PROPERTY. (a) The commission
may:
(1) acquire, apply for, register, secure, hold,
protect, and renew under the laws of this state, another state, the
United States or any nation:
(A) a patent for the invention or discovery of:
(i) any new use of a known process, art,
method, machine, manufacture, composition of matter, or material;
or
(ii) any new and useful improvement on a
known process, art, method, machine, manufacture, composition of
matter, or material;
(B) a copyright of an original work of authorship
fixed in any tangible medium of expression, now known or later
developed, from which the work may be perceived, reproduced, or
otherwise communicated, either directly or with the aid of a
machine or device;
(C) a trademark, service mark, collective mark,
or certification mark for a word, name, symbol, device, or slogan
that the commission uses to identify and distinguish the
commission's goods and services from other goods and services; and
(D) other evidence of protection or exclusivity
issued for intellectual property;
(2) contract with a person for the reproduction,
distribution, public performance, display, advertising, marketing,
lease, licensing, sale, use, or other distribution of the
commission's intellectual property;
(3) obtain under a contract described by Subdivision
(2) a royalty, license right, or other appropriate means of
securing reasonable compensation for the exercise of rights with
respect to the commission's intellectual property; and
(4) waive, increase, or reduce the amount of
compensation secured by contract under Subdivision (3) if the
commission determines that the waiver or reduction will:
(A) further a goal or mission of the commission;
and
(B) result in a net benefit to this state.
(b) Intellectual property of the commission is excepted
from required disclosure under Chapter 552:
(1) beginning on the date the commission decides to
seek a patent, copyright, trademark, service mark, collective mark,
certification mark, or other evidence of protection of exclusivity
concerning the intellectual property; and
(2) ending on the date the commission receives a
decision about the commission's application for a patent,
copyright, trademark, service mark, collective mark, certification
mark, or other evidence of protection of exclusivity concerning the
intellectual property.
(c) The commission may not be required to disclose a trade
secret from the time of inception or creation of the trade secret
rights until the trade secret is publicly disclosed by the
commission with the intention of publicly disclosing the trade
secret.
(d) Except as provided by Section 2054.115(c), money paid to
the commission under this section shall be deposited to the credit
of the general revenue fund.
SECTION 35. Subchapter C, Chapter 467, Government Code, is
amended by adding Sections 467.110-467.113 to read as follows:
Sec. 467.110. TECHNOLOGY POLICY. The commission shall
develop and implement a policy requiring the executive director and
commission employees to research and propose appropriate
technological solutions to improve the commission's ability to
perform its functions. The technological solutions must:
(1) ensure that the public is able to easily find
information about the commission on the Internet;
(2) ensure that persons who want to use the
commission's services are able to:
(A) interact with the commission through the
Internet; and
(B) access any service that can be provided
effectively through the Internet; and
(3) be cost-effective and developed through the
commission's planning processes.
Sec. 467.111. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION POLICY. (a) The commission shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008 for the adoption of commission rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009 to assist in the resolution of
internal and external disputes under the commission's
jurisdiction.
(b) The commission's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The commission shall designate a trained person to:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) serve as a resource for any training needed to
implement the procedures for negotiated rulemaking or alternative
dispute resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the commission.
Sec. 467.112. PUBLIC PARTICIPATION. The commission shall
develop and implement policies that provide the public with a
reasonable opportunity to appear before the commission and to speak
on any issue under the jurisdiction of the commission.
Sec. 467.113. COMPLAINTS. (a) The commission shall
maintain a file on each written complaint filed with the commission
or a division of the commission. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the
commission or a division of the commission;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the commission closed the file without taking action other than
to investigate the complaint.
(b) The commission shall provide to the person filing the
complaint and to each person who is a subject of the complaint a
copy of the commission's policies and procedures relating to
complaint investigation and resolution.
(c) The commission, at least quarterly until final
disposition of the complaint, shall notify the person filing the
complaint and each person who is a subject of the complaint of the
status of the investigation unless the notice would jeopardize an
undercover investigation.
(d) The commission shall publish procedures covering the
entire complaint process from submission to disposition.
(e) The commission by rule shall require an investigation
related to a complaint filed with the commission or a division of
the commission to be completed within a reasonable time.
(f) The commission shall analyze the complaints filed with
the board to identify any trends or issues related to certain
violations.
SECTION 36. Section 2001.002, Occupations Code, is amended
by amending Subdivision (6) and adding Subdivision (9-a) to read as
follows:
(6) "Bingo occasion" means [all activities incident to
the conduct of a series of bingo games by a licensed authorized
organization, including] the organization's licensed times [and
any preparatory or concluding activities incident to the conduct of
bingo].
(9-a) "Electronic pull-tab bingo" means an electronic
version of pull-tab bingo that is displayed on a card-minding
device in which a person purchases from a point of sale station an
electronic ticket face, instead of a ticket made of paper or paper
products, that is issued from a finite deal of tickets in which some
of the tickets have been designated in advance as winning tickets.
The display on the card-minding device may not include images or
sounds that resemble spinning wheels or otherwise resemble the
display of a slot machine.
SECTION 37. Section 2001.054, Occupations Code, is amended
to read as follows:
Sec. 2001.054. RULEMAKING AUTHORITY. (a) The commission
may adopt rules to enforce and administer this chapter.
(b) The commission has broad authority to adopt rules and
shall exercise strict control to administer and ensure compliance
with Sections 2001.409(b) and 2001.4095.
SECTION 38. Section 2001.055, Occupations Code, is amended
to read as follows:
Sec. 2001.055. REGULATION OF GAMES. (a) The commission by
rule may establish the number and type of bingo games that may be
played during a bingo occasion.
(b) The commission, to the extent consistent with this
chapter, shall reasonably support the efforts of licensed
authorized organizations to develop and offer new types of bingo
games.
SECTION 39. Subchapter B, Chapter 2001, Occupations Code,
is amended by adding Section 2001.0555 to read as follows:
Sec. 2001.0555. COMPLIANCE MONITORING. The commission
shall adopt rules to govern the commission's monitoring of a
license holder to determine if the license holder is in compliance
with this chapter or rules adopted under this chapter. The rules
must at a minimum address audits and inspections and other
compliance and enforcement activities.
SECTION 40. Section 2001.057, Occupations Code, is amended
by adding Subsections (h) and (i) to read as follows:
(h) The committee shall annually develop a work plan
detailing the committee's objectives and the issues to be addressed
by the committee during the year. The plan must:
(1) assess trends in the charitable bingo industry;
(2) review bingo rules to determine whether changes,
additions, or deletions are needed; and
(3) address other issues as determined by the
commission.
(i) The committee shall perform a review at the end of each
year to:
(1) assess the committee's accomplishments during the
year;
(2) identify opportunities for improving the
commission's regulation of bingo; and
(3) develop specific recommendations for commission
action.
SECTION 41. Section 2001.059, Occupations Code, as added by
Section 2, H.B. No. 2519, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
Sec. 2001.059. ADVISORY OPINIONS. (a) A person may
request from the director of bingo operations [commission] an
advisory opinion regarding compliance with this chapter and the
rules of the commission relating to the enforcement or
administration of this chapter.
(b) The director of bingo operations [commission] shall
respond to a request under Subsection (a) not later than the 30th
[60th] day after the date a request is received, unless the director
requests an opinion on the matter from the attorney general or
[commission] determines that the request does not contain
sufficient facts to provide an answer on which the requestor may
rely. In that event, the director [commission] shall request
additional information from the requestor not later than the 10th
day after the date the request is received. If the director
[commission] requests additional information, the director
[commission] shall respond to the request not later than the 30th
[60th] day after the date additional information is received
pursuant to the request for additional information.
(c) A person who requests an advisory opinion under
Subsection (a) may act in reliance on the opinion in the conduct of
any activity under any license issued under this chapter if the
conduct is substantially consistent with the opinion and the facts
stated in the request.
(d) An advisory opinion issued under this section is not a
rule under Subchapter B, Chapter 2001, Government Code, and the
rulemaking requirements of that subchapter do not apply to a
request for an advisory opinion or any advisory opinion issued by
the commission.
[(e) Nothing in this section precludes the commission from
requesting an attorney general opinion under Section 402.042,
Government Code. In the event the commission requests an attorney
general opinion on a matter that is the subject of an advisory
opinion request under this section, the deadlines established under
Subsection (b) are tolled until 30 days following the issuance of
the attorney general opinion.
[(f) The commission may delegate all or part of the
authority and procedures for issuing advisory opinions under this
section to an employee of the commission.]
SECTION 42. Section 2001.101, Occupations Code, is amended
to read as follows:
Sec. 2001.101. AUTHORIZED ORGANIZATION. (a) The
commission may license a person who is an authorized organization
eligible for a license to conduct bingo if the person has been in
existence for the time required by commission rule to ensure the
continuity and bona fide nature of the organization and is:
(1) a religious society [that has existed in this
state for at least eight years];
(2) a nonprofit organization:
(A) whose predominant activities are for the
support of medical research or treatment programs; and
(B) that [for at least three years]:
(i) has [must have had] a governing body or
officers elected by a vote of members or by a vote of delegates
elected by the members; or
(ii) is [must have been] affiliated with a
state or national organization organized to perform the same
purposes as the nonprofit organization;
(3) a fraternal organization;
(4) a veterans organization; or
(5) a volunteer fire department.
(b) A fraternal organization:
(1) [must have been organized in this state for at
least three years;
[(2)] must have [had during the three-year period] a
bona fide membership actively and continuously engaged as an
organization in furthering its authorized purposes; and
(2) [(3)] may not have authorized a person on behalf
of its membership, governing body, or officers to support or oppose
a particular candidate for public office by:
(A) making political speeches;
(B) passing out cards or other political
literature;
(C) writing letters;
(D) signing or circulating petitions;
(E) making campaign contributions; or
(F) soliciting votes.
SECTION 43. Section 2001.102(b), Occupations Code, is
amended to read as follows:
(b) The application must include:
(1) the name and address of the applicant;
(2) the names and addresses of the applicant's
officers and directors;
(3) the address of the premises where and the time when
the applicant intends to conduct bingo under the license sought;
(4) the name and address of the licensed commercial
lessor of the premises, if the applicant intends to lease premises
to conduct bingo from a person other than an authorized
organization;
(5) the capacity or potential capacity for public
assembly in any premises owned or occupied by the applicant;
(6) the amount of rent to be paid or other
consideration to be given, directly or indirectly, for each
occasion for use of the premises of another licensed authorized
organization or for use of the premises of a licensed commercial
lessor;
(7) all other items of expense intended to be incurred
or paid in connection with conducting, promoting, and administering
bingo and the names and addresses of the persons to whom, and the
purposes for which, the expenses are to be paid;
(8) the specific purposes to and the manner in which
the net proceeds of bingo are to be devoted;
(9) a statement that the net proceeds of bingo will go
to one or more of the authorized charitable purposes under this
chapter;
(10) a designation of one or more active members of the
applicant organization under whom bingo will be conducted
accompanied by a statement signed by each designated member stating
that the member will be responsible for the conduct of bingo under
the terms of the license and this chapter;
(11) [a statement that a copy of the application has
been sent to the appropriate governing body;
[(12)] the name and address of each person who will
work at the proposed bingo occasion, the nature of the work to be
performed, and a statement as to whether the person has been
convicted of a felony, a gambling offense, criminal fraud, or a
crime of moral turpitude; and
(12) [(13)] sufficient facts relating to the
applicant's incorporation and organization to enable the
commission to determine whether the applicant is an authorized
organization.
SECTION 44. Section 2001.103(d), Occupations Code, is
amended to read as follows:
(d) An organization operating under a temporary license is
subject to:
(1) the taxes and fees authorized or imposed by this
chapter; [and]
(2) the standard licensing oversight of the
commission, including audits and inspections; and
(3) the other provisions of this chapter to the extent
they can be made applicable.
SECTION 45. Section 2001.105, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) The commission may not issue a license to an authorized
organization to conduct bingo if an officer or director of the
organization has been convicted of a felony, criminal fraud, a
gambling or gambling-related offense, or a crime of moral turpitude
if less than 10 years has elapsed since the termination of a
sentence, parole, mandatory supervision, or community supervision
served for the offense.
(d) The commission may not issue a license to an authorized
organization to conduct bingo if the location of the premises at
which the authorized organization would conduct bingo is:
(1) in a facility that shares a common roof or common
foundation with a location at which a gambling device, as defined by
Section 47.01, Penal Code, is operated or located; or
(2) within 150 feet of the common roof or common
foundation described by Subdivision (1).
SECTION 46. Chapter 2001, Occupations Code, is amended by
adding Subchapter C-1 to read as follows:
SUBCHAPTER C-1. AUTHORIZED ORGANIZATION EMPLOYEE LICENSE
Sec. 2001.121. LICENSE REQUIRED. An individual may not in
any capacity participate or assist in the conduct, promotion, or
administration of bingo unless the individual holds an authorized
organization employee license issued by the commission.
Sec. 2001.122. APPLICATION; ISSUANCE OF LICENSE. The
commission shall issue an authorized organization employee license
to an eligible individual who applies using an application form
prescribed by the commission and pays the applicable license fee.
Sec. 2001.123. FEES. The commission by rule shall
prescribe a fee schedule for licenses issued under this subchapter.
In setting fees under the fee schedule, the commission shall
include the cost of a criminal background check.
Sec. 2001.124. RENEWAL OF LICENSE. (a) A license issued
under this subchapter is valid for a period set by the commission
not to exceed 36 months following the date of issuance.
(b) A license is renewable on application and payment of the
fee in accordance with commission rules.
(c) The commission by rule may adopt a system under which
licenses expire on various dates during the year. For the year in
which the license expiration date is changed, license fees shall be
prorated on a monthly basis so that each license holder pays only
that portion of the license fee that is allocable to the number of
months during which the license is valid. On renewal of the license
on the new expiration date, the total license renewal fee is
payable.
Sec. 2001.125. DENIAL, SUSPENSION, OR REVOCATION OF
LICENSE. After a hearing, the director of bingo operations shall
deny an application for a license under this subchapter or the
commission shall revoke or suspend the license if the director or
commission, as applicable, determines that the applicant or license
holder:
(1) has violated this chapter or a rule adopted by the
commission;
(2) has been convicted of a felony or of a crime
involving moral turpitude;
(3) failed to answer or has falsely or incorrectly
answered a question in an application for a license under this
chapter;
(4) is indebted to this state for any fees or for the
payment of a penalty imposed by this chapter or commission rule;
(5) is not of good moral character;
(6) resides in the same household with a person whose
license has been revoked for cause within the 12 months immediately
preceding the date of submission of the applicant's or license
holder's most recent license application;
(7) has failed or refused to furnish a true copy of the
application to the commission; or
(8) is engaged or has engaged in activities or
practices that are detrimental to the best interests of the public.
Sec. 2001.126. LICENSE NUMBER AND IDENTIFICATION CARD. (a)
The commission shall issue to each individual who holds an
authorized organization employee license a license number and
identification card that includes the individual's photograph.
(b) Each license holder must wear the identification card
provided by the commission at all times while participating or
assisting in the conduct, promotion, or administration of bingo.
(c) A license issued under this subchapter is valid at any
licensed bingo occasion conducted in this state.
Sec. 2001.127. TEMPORARY LICENSE. (a) Pending an
investigation of an applicant's eligibility for a license,
including renewal of a license, the commission may issue a
temporary authorized organization employee license to an applicant
whose application appears to comply with this chapter and
commission rules and who has paid the necessary fee.
(b) A temporary license issued under this section is valid
for a period not to exceed 120 days from the date of issuance.
Sec. 2001.128. LICENSED AUTHORIZED ORGANIZATION: RECORDS
AND PENALTY. (a) A licensed authorized organization shall
maintain a record, for each bingo occasion of each individual who
participated or assisted in the conduct, promotion, or
administration of bingo, that includes:
(1) the individual's license number; and
(2) the fees or other compensation paid to the
individual for services related to the occasion.
(b) A licensed authorized organization annually shall
submit to the commission, on a form prescribed by the commission, a
compensation report that details for the year reported:
(1) each job category related to the conduct of bingo
for which the organization pays compensation;
(2) each compensation rate paid in each job category;
and
(3) the number of employees paid each compensation
rate.
(c) The commission shall revoke the license to conduct bingo
of a licensed authorized organization that employs or otherwise
uses an unlicensed individual in an activity for which a license is
required by this subchapter.
SECTION 47. Section 2001.152(a), Occupations Code, is
amended to read as follows:
[(a)] The commission may issue a commercial lessor license
[only] to[:
[(1) a licensed authorized organization that owns or
leases a premises where bingo is or will be conducted or an
association of licensed authorized organizations that jointly own
or lease premises where bingo is or will be conducted and that the
organization or association leases or offers for lease to one or
more other authorized organizations for the conduct of bingo;
[(2)] a person who leases premises on which bingo is
conducted to not more than seven [a single] licensed authorized
organizations [organization that subleases or will sublease the
premises to one or more other licensed authorized organizations for
the conduct of bingo; or
[(3) a person who leases premises for the total
control and exclusive use of only one licensed authorized
organization as that organization's primary business office].
SECTION 48. Section 2001.154(a), Occupations Code, is
amended to read as follows:
(a) The commission may not issue a commercial lessor license
to or renew a commercial lessor license of:
(1) a person convicted of a felony, criminal fraud, a
gambling or gambling-related offense, or a crime of moral turpitude
if less than 10 years has elapsed since termination of a sentence,
parole, mandatory supervision, or community supervision served for
the offense;
(2) a public officer who receives any consideration,
direct or indirect, as owner or lessor of premises offered for
conducting bingo;
(3) a person who extends credit to, loans money to, or
pays or provides for the payment of license fees for an authorized
organization;
(4) a distributor or manufacturer;
(5) a person in which a person covered by Subdivision
(1), (2), (3), or (4) or a person married or related in the first
degree by consanguinity or affinity, as determined under Chapter
573, Government Code, to one of those persons has greater than a 10
percent proprietary, equitable, or credit interest or in which one
of those persons is active or employed; or
(6) a person whose location for a bingo premises is:
(A) in a facility that shares a common roof or
common foundation with a location at which a gambling device, as
defined by Section 47.01, Penal Code, is operated or located; or
(B) within 150 feet of the common roof or common
foundation described by Paragraph (A) [a foreign corporation or
other foreign legal entity;
[(7) an individual who is not a resident of this state;
[(8) a corporation or other legal entity owned or
controlled by:
[(A) a foreign corporation; or
[(B) an individual who is not a resident of this
state; or
[(9) a corporation or other legal entity:
[(A) whose shares are publicly traded; or
[(B) owned or controlled by a corporation whose
shares are publicly traded].
SECTION 49. Section 2001.161, Occupations Code, is amended
to read as follows:
Sec. 2001.161. LICENSED AUTHORIZED ORGANIZATION AS
COMMERCIAL LESSOR. (a) An authorized organization that holds a
commercial lessor license to lease a premises on which bingo is
conducted may also [must] hold a license to conduct bingo at the
same premises.
(b) A licensed authorized organization may obtain only one
commercial lessor license. The commercial lessor license may be
issued only for the same premises where the organization is
licensed to conduct bingo.
[(c) The commission may issue a commercial lessor license to
a licensed authorized organization only for the same premises where
the organization is licensed to conduct bingo.]
SECTION 50. Subchapter G, Chapter 2001, Occupations Code,
is amended by adding Section 2001.3015 to read as follows:
Sec. 2001.3015. LICENSING RULES. The commission by rule
shall:
(1) establish comprehensive qualifications for a
person to be licensed or the person's license to be renewed under
this chapter;
(2) develop a standard license renewal process, from
submission to completion, for each license issued under this
chapter to ensure that a license holder continues to meet the
eligibility requirements provided by this chapter and commission
rule; and
(3) establish standards of conduct for a person
licensed under this chapter.
SECTION 51. Section 2001.351, Occupations Code, is amended
to read as follows:
Sec. 2001.351. DENIAL OF LICENSE. (a) The commission may
deny an application for a license or renewal of a license issued
under this chapter for a cause that would permit or require the
suspension or revocation of a license issued under this chapter.
(b) In making a determination whether to renew a license,
the commission shall consider the compliance history of a license
holder. The commission shall adopt rules to govern the specific
areas of compliance history that may be considered in the renewal
determination.
(c) After an opportunity for a hearing, the commission may
deny an application for renewal of a license if the applicant's
compliance history reveals conduct that is inconsistent with this
chapter or the commission's rules adopted under this chapter in the
specific areas considered by the commission in accordance with the
rules adopted under Subsection (b).
SECTION 52. Subchapter H, Chapter 2001, Occupations Code,
is amended by adding Section 2001.358 to read as follows:
Sec. 2001.358. SUMMARY SUSPENSION. (a) The commission,
through the director of bingo operations, may summarily suspend,
without notice or a hearing, a license issued under this chapter if
the director finds the action is necessary to prevent financial
loss to the state and the license holder has failed to file a report
or return or to make a fee or tax payment required by this chapter.
(b) To summarily suspend a license under this section, the
commission through the director of bingo operations must institute
proceedings for a preliminary hearing before the commission or the
commission's representative simultaneously with the summary
suspension. The preliminary hearing shall be set for a date not
later than the 10th day after the date of the summary suspension,
unless the parties agree to a later date.
(c) At the preliminary hearing, the license holder must show
cause why the license should not remain suspended pending a final
hearing on suspension or revocation.
(d) Chapter 2001, Government Code, does not apply to a
summary suspension under this section.
(e) To initiate a proceeding to summarily suspend a license,
the commission, through the director of bingo operations, must
serve notice to the license holder informing the license holder of
the right to a preliminary hearing and of the time and place of the
preliminary hearing. The notice must:
(1) be personally served on the license holder or an
officer, employee, or agent of the license holder or be sent by
certified or registered mail, return receipt requested, to the
license holder's mailing address as it appears in the commission's
records; and
(2) state the alleged violations that constitute
grounds for summary suspension.
(f) If notice required under Subsection (e) is served in
person, the license holder shall immediately surrender the license
to the commission. If notice is served by mail, the license holder
shall immediately return the license to the commission.
(g) A suspension under this section takes effect on the
third day after the date the notice of suspension is given.
(h) The commission shall terminate a suspension made under
this section when the license holder files all required reports and
returns and makes all required tax and fee payments, including
payments of interest and penalties that are due.
SECTION 53. Section 2001.406(a), Occupations Code, is
amended to read as follows:
(a) The rent charged by a licensed commercial lessor to a
licensed authorized organization to conduct bingo may not exceed
$600 for each bingo occasion conducted on the lessor's premises
[unless the organization subleases the premises to one or more
other licensed authorized organizations to conduct bingo, in which
event the rent charged by the licensed commercial lessor may not
exceed $600 for each day].
SECTION 54. Section 2001.408, Occupations Code, is amended
to read as follows:
Sec. 2001.408. OTHER METHODS FOR PLAYING BINGO. Subject to
the commission's rules, bingo may be played using a pull-tab bingo
ticket or an electronic pull-tab bingo ticket.
SECTION 55. Section 2001.409, Occupations Code, is amended
to read as follows:
Sec. 2001.409. CARD-MINDING DEVICES. (a) A person may not
use a card-minding device:
(1) to generate [or determine] the random letters,
numbers, or other symbols used in playing the bingo card played with
the device's assistance;
(2) as a receptacle for the deposit of tokens or money
in payment for playing the bingo card played with the device's
assistance; or
(3) as a dispenser for the payment of a bingo prize,
including coins, paper currency, or a thing of value for the bingo
card played with the device's assistance.
(b) A person may use a card-minding device to:
(1) account for and track electronic credits purchased
at a point of sale station or won by playing bingo or electronic
pull-tab bingo; and
(2) exchange electronic credits described by
Subdivision (1) through an electronic communication with a point of
sale station for electronic bingo card faces or electronic pull-tab
bingo tickets that may be played by the person during a bingo
occasion.
SECTION 56. Subchapter I, Chapter 2001, Occupations Code,
is amended by adding Section 2001.4095 to read as follows:
Sec. 2001.4095. CARD-MINDING DEVICE FOR DISPLAY OF
ELECTRONIC PULL-TAB BINGO TICKET FACE. (a) A card-minding device
used to display an electronic pull-tab bingo ticket face must be
manufactured in accordance with the specifications provided by
commission rule and is subject to testing by the commission.
(b) The commission may audit sales records relating to the
sale of electronic pull-tab bingo ticket faces. The commission may
investigate a violation or alleged violation of this section.
(c) The commission at any time may inspect a card-minding
device used to display an electronic pull-tab bingo ticket face.
(d) The manufacturer of a card-minding device used to
display an electronic pull-tab bingo ticket face shall maintain a
central communications system or facility to provide the commission
with the ability to review and audit electronic pull-tab bingo
sales records.
SECTION 57. Sections 2001.416(c) and (d), Occupations Code,
are amended to read as follows:
(c) The commission has oversight, including the authority
to conduct audits, inspections, and investigations, of a game of
chance that is conducted, or a machine or device for conducting a
game of chance that is located:
(1) on a bingo premises;
(2) at a location that shares a common roof or common
foundation with a bingo premises; or
(3) within 150 feet of the common roof or common
foundation described by Subdivision (2).
(d) The commission may [shall] adopt rules for the
implementation of this section.
[(d) This section does not prohibit the exhibition and play
of an amusement machine that is not a gambling device as defined by
Section 47.01, Penal Code.]
SECTION 58. Section 2001.419, Occupations Code, is amended
to read as follows:
Sec. 2001.419. BINGO OCCASIONS. (a) [A bingo occasion
begins when the premises are opened to the public.
[(b)] A licensed authorized organization may not conduct
more than three [a] bingo occasions [occasion more often than three
days] during a calendar week and each occasion may not [to] exceed
[more than] four hours [during a 24-hour period].
(b) [(c)] A licensed authorized organization may conduct
two bingo occasions during a 24-hour period under the
organization's annual license. No more than two bingo occasions
may be conducted at the same premises during one day except that a
third bingo occasion may be conducted under a temporary license
held by a licensed authorized organization that also conducts
licensed occasions under the organization's annual license at that
premises.
(c) [(d) No more than two licensed authorized organizations
may conduct bingo at the same premises during a 24-hour period. If
two organizations conduct bingo at the same premises during a
24-hour period, the bingo occasions must be announced separately,
and an intermission of at least 10 minutes must occur between the
bingo occasions.
[(e)] If two licensed authorized organizations are
authorized to conduct bingo at the same premises on the same day,
the end time of the bingo occasion of one organization may not
overlap with the start time of the bingo occasion of the other
organization[, but their games must be separated by the
intermission required under Subsection (d). In that event, the
intermission is considered part of each organization's bingo
occasion].
SECTION 59. Section 2001.420(b), Occupations Code, is
amended to read as follows:
(b) For bingo games other than pull-tab bingo and electronic
pull-tab bingo, a person may not offer or award on a single bingo
occasion prizes with an aggregate value of more than $2,500.
SECTION 60. Subchapter I, Chapter 2001, Occupations Code,
is amended by adding Section 2001.421 to read as follows:
Sec. 2001.421. PRIZE PAYOUT PERCENTAGE. The prize payout
percentage for an electronic pull-tab bingo game may not be less
than the prize payout percentage established for a paper pull-tab
bingo game.
SECTION 61. Section 2001.451, Occupations Code, is amended
by adding Subsections (g) and (h) to read as follows:
(g) The commission shall adopt rules to allow a licensed
authorized organization to retain a maximum amount of net proceeds
as operating capital in the organization's bingo account. The net
proceeds retained may not exceed an amount established by
commission rule.
(h) The commission by rule shall require a licensed
authorized organization to maintain a positive cash flow in the
organization's bingo account. The commission shall sanction an
organization that fails to comply with the rule.
SECTION 62. Sections 2001.457(a), (b), and (d), Occupations
Code, are amended to read as follows:
(a) Before the end of each quarter, a licensed authorized
organization shall disburse for charitable purposes all [an amount
not less than 35 percent] of the organization's adjusted gross
receipts from the preceding quarter, except for the amount that may
be retained as provided by Section 2001.451(g) [, less the amount of
authorized expenses not to exceed six percent of the gross
receipts].
(b) The commission shall sanction [If] a licensed
authorized organization that fails to make [meet] the disbursement
required by Subsection (a) or to make any disbursement for
charitable purposes [requirements of this section] for a quarter.
The [, the] commission in applying appropriate sanctions may
consider whether, taking into account the amount required to be
distributed during that quarter and the three preceding quarters
and the charitable distributions for each of those quarters, the
organization has distributed a total amount sufficient to have met
the disbursement requirements [35 percent requirement] for that
quarter and the three preceding quarters combined.
(d) In this section, "adjusted [:
[(1) "Adjusted] gross receipts" means gross receipts
less the total [amount of cost of goods purchased by an organization
and] prizes paid in the preceding quarter [;] and the licensed
authorized organization's reasonable and necessary expenses as
provided by Sections 2001.458 and 2001.459 and by commission rule.
[(2) "Cost of goods purchased by an organization"
means the cost of bingo paper or pull tab bingo tickets purchased by
the organization.]
SECTION 63. Section 2001.458, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) In accordance with this section and Section 2001.459,
the commission by rule shall define a licensed authorized
organization's reasonable and necessary expenses under this
chapter.
SECTION 64. Section 2001.459(a), Occupations Code, as
amended by Section 23, H.B. No. 2519, Acts of the 78th Legislature,
Regular Session, 2003, is amended to read as follows:
(a) The following items of expense incurred or paid in
connection with the conduct of bingo must be paid from an
organization's bingo account:
(1) advertising, including the cost of printing bingo
gift certificates;
(2) security during a bingo occasion;
(3) the purchase or repair of bingo supplies and
equipment;
(4) prizes, other than authorized cash prizes;
(5) stated rental expenses;
(6) bookkeeping, legal, or accounting services;
(7) fees for licensed callers, licensed cashiers, and
licensed ushers;
(8) janitorial services;
(9) license fees; and
(10) payment for services provided by a system service
provider.
SECTION 65. Subchapter K, Chapter 2001, Occupations Code,
is amended by adding Section 2001.5015 to read as follows:
Sec. 2001.5015. ELECTRONIC PULL-TAB BINGO TAX. (a) A tax
is imposed on a manufacturer for each electronic pull-tab bingo
ticket provided by the manufacturer to a distributor.
(b) The tax rate is one-quarter of one cent for each
electronic pull-tab bingo ticket provided.
SECTION 66. Section 2001.510(a), Occupations Code, is
amended to read as follows:
(a) If a license holder fails to make a required return, or
if a person conducts bingo without a license, the commission shall
make an estimate of the prizes awarded at a bingo occasion, [or of]
the gross rentals received by a license holder for the rental of
premises, or the number of electronic pull-tab bingo tickets sold.
The commission shall make the estimate for the period in respect to
which the license holder or other person failed to make a return.
SECTION 67. Section 2001.511(a), Occupations Code, is
amended to read as follows:
(a) If the commission believes that the collection of a
gross rental tax, tax on electronic pull-tab bingo tickets, or fee
on prizes, an amount of the tax or fee on prizes required to be
remitted to the state, or the amount of a determination will be
jeopardized by delay, the commission shall make a determination of
the tax or fee on prizes or amount of the tax or fee required to be
collected, noting the finding of jeopardy on the determination.
The determined amount is due and payable immediately.
SECTION 68. Section 2001.512, Occupations Code, is amended
to read as follows:
Sec. 2001.512. APPLICATION OF TAX LAWS. (a) Subtitle B,
Title 2, Tax Code, applies to the administration, collection, and
enforcement of the gross rentals tax imposed under Section
2001.501, the tax on electronic pull-tab bingo tickets imposed
under Section 2001.5015, and the fee on prizes imposed under
Section 2001.502 except as modified by this chapter.
(b) In applying the provisions of Subtitle B, Title 2, Tax
Code, to the gross rentals tax imposed under Section 2001.501, the
tax on electronic pull-tab bingo tickets imposed under Section
2001.5015, and the fee on prizes imposed under Section 2001.502
only, the fee on prizes is treated as if it were a tax and the powers
and duties assigned to the comptroller under that subtitle are
assigned to the commission.
SECTION 69. Section 2001.513(a), Occupations Code, is
amended to read as follows:
(a) At any time within three years after a person is
delinquent in the payment of an amount of gross rentals tax, tax on
electronic pull-tab bingo tickets, or fee on prizes, the commission
may collect the amount under this section.
SECTION 70. Section 2001.514(a), Occupations Code, is
amended to read as follows:
(a) To secure payment of the tax on gross rentals, the tax on
electronic pull-tab bingo tickets, or the fee on prizes imposed
under this subchapter, each license holder shall furnish to the
commission:
(1) a cash bond;
(2) a bond from a surety company chartered or
authorized to do business in this state;
(3) certificates of deposit;
(4) certificates of savings;
(5) United States treasury bonds;
(6) subject to the approval of the commission, an
assignment of negotiable stocks or bonds; or
(7) other security as the commission considers
sufficient.
SECTION 71. Section 2001.551, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (g) to read as
follows:
(b) A person conducting, promoting, or administering bingo
commits an offense if the person conducts, promotes, or administers
bingo other than:
(1) under a license issued under this chapter;
(2) within the confines of a home for purposes of
amusement or recreation when:
(A) no player or other person furnishes anything
of more than nominal value for the opportunity to participate;
(B) participation in the game does not exceed 15
players; and
(C) the prizes awarded or to be awarded are
nominal;
(3) on behalf of an organization of individuals 60
years of age or over, a senior citizens' association, a senior
citizens' community center program operated or funded by a
governmental entity, the patients in a hospital or nursing home,
residents of a retirement home, or the patients in a Veteran's
Administration medical center or a military hospital, solely for
the purpose of amusement and recreation of its members, residents,
or patients, when:
(A) no player or other person furnishes anything
of more than nominal value for the opportunity to participate; and
(B) the prizes awarded or to be awarded are
nominal; [or]
(4) on behalf of a business conducting the game for
promotional or advertising purposes if:
(A) the game is conducted by or through a
newspaper or a radio or television station;
(B) participation in the game is open to the
general public and is not limited to customers of the business;
(C) playing materials are furnished without
charge to a person on request; and
(D) no player is required to furnish anything of
value for the opportunity to participate; or
(5) for business entity employee picnics,
organizational quarterly or annual meetings, family reunions, or
other defined group occasional gatherings if:
(A) participation is not open to the public;
(B) prizes are of nominal value;
(C) there is no cost to participate;
(D) the purpose of the game is for amusement,
recreation, employee morale, or safety awareness;
(E) the game is not used to raise money for any
purpose other than to award nominal prizes; and
(F) a person is not paid solely to administer the
game.
(g) The commission by rule may set the nominal value of the
prizes that may be awarded in a bingo game described by Subsection
(b)(2), (3), or (5).
SECTION 72. Sections 2001.554(a) and (b), Occupations Code,
are amended to read as follows:
(a) A person commits an offense and the person's license is
subject to revocation under this chapter if the person:
(1) makes a false statement or material omission in an
application for a license under this chapter;
(2) fails to maintain records that fully and
accurately record each transaction connected with the conducting of
bingo, the leasing of premises to be used for bingo, or the
manufacture, sale, or distribution of bingo supplies or equipment;
(3) falsifies or makes a false entry in a book or
record if the entry relates to bingo, the disposition of bingo
proceeds, the application of rent received by a licensed authorized
organization, or the gross receipts from the manufacture, sale, or
distribution of bingo supplies or equipment;
(4) diverts or pays a portion of the net proceeds of
bingo to a person except in furtherance of one or more of the lawful
purposes provided by this chapter; [or]
(5) knowingly participates or assists in the conduct,
promotion, or administration of bingo without holding a license
required under this chapter; or
(6) violates this chapter or a term of a license issued
under this chapter.
(b) An offense under Subsection (a)(1), [(a)](2), (3), or
(6) [(5)] is a Class A [C] misdemeanor[, unless it is shown on the
trial of the offense that the person has been convicted previously
under this section, in which event the offense is a Class B
misdemeanor]. An offense under Subsection (a)(4) or (5) [(a)(1) or
(4)] is a felony of the third degree [Class A misdemeanor]. This
subsection does not apply to an offense committed under Section
2001.551(b) or Section 2001.552.
SECTION 73. Subchapter L, Chapter 2001, Occupations Code,
is amended by adding Section 2001.562 to read as follows:
Sec. 2001.562. VENUE. The following offenses may be
prosecuted in Travis County in addition to any county in which the
offense may be prosecuted under Chapter 13, Code of Criminal
Procedure, or other law:
(1) an offense under this chapter;
(2) an offense under the Penal Code, if the accused:
(A) is an individual licensed under Subchapter
C-1; and
(B) is alleged to have committed the offense
while participating or assisting in the conduct, promotion, or
administration of bingo; and
(3) an offense under Title 7 or 11, Penal Code, that
involves property consisting of bingo equipment.
SECTION 74. Subchapter M, Chapter 2001, Occupations Code,
is amended by adding Section 2001.6015 to read as follows:
Sec. 2001.6015. ADMINISTRATIVE PENALTY SCHEDULE; TIMELINE.
(a) The commission by rule shall adopt an administrative penalty
schedule to define and summarize violations of this chapter or
commission rules adopted under this chapter to ensure the amounts
of penalties imposed are appropriate to the violation.
(b) The administrative penalty schedule must:
(1) allow deviations from the schedule for mitigating
circumstances clearly established by the commission;
(2) include a list of the most common violations and
the penalty amounts assessed for those violations; and
(3) provide the penalty amount in accordance with the
seriousness or frequency of each type of violation.
(c) The commission by rule shall establish a timeline for
the resolution of a violation of this chapter or a commission rule
adopted under this chapter. The rules must include:
(1) a designated period for a person licensed under
this chapter to provide proof of corrective measures taken as
required by the commission for a violation of this chapter or a
commission rule; and
(2) an approach and a designated period for the
commission to subsequently monitor a person determined to have
committed a significant violation of this chapter or a commission
rule.
SECTION 75. Chapter 2001, Occupations Code, is amended by
adding Subchapter O to read as follows:
SUBCHAPTER O. SUBPOENAS AND RELATED PROCEDURES
Sec. 2001.701. SUBPOENA. (a) In an investigation of any
matter under this chapter, the commission may issue a subpoena to
compel the attendance and testimony of a relevant witness or the
production of relevant evidence located in this state for
inspection or copying by the commission.
(b) A subpoena may be served personally or by certified
mail.
(c) A subpoena may require a person to appear as a witness or
to produce evidence at the commission's offices in Austin, Texas,
or at another place designated by the commission.
(d) The commission may issue a subpoena that requires an
immediate production of evidence only if:
(1) the subpoena states that the evidence is necessary
and must be produced immediately due to exigent and extraordinary
circumstances; and
(2) the subpoena is signed and issued by a member of
the commission and an agent of the commission.
(e) The commission shall adopt rules to avoid imposing an
undue burden or expense on a person for whom a subpoena is issued.
(f) The commission by rule may delegate the authority
granted under Subsection (a) to an agent of the commission.
(g) The fee charged by a sheriff or constable for serving a
commission subpoena may not exceed the fee for serving similar
subpoenas.
(h) In the issuance of a subpoena under this section for the
records of a religious society, the commission may subpoena only
the portion of the records related to bingo.
Sec. 2001.702. FAILURE TO COMPLY WITH SUBPOENA. (a) If a
person fails to comply with a subpoena issued by the commission, the
commission, acting through the attorney general, may file suit
against the person to enforce the subpoena in a district court in
Travis County.
(b) On finding that good cause exists for issuing the
subpoena, the court shall order the person to comply with the
subpoena and pay reasonable attorney's fees. The court may punish a
person who fails to obey the court order for contempt of court.
Sec. 2001.703. REIMBURSEMENT FOR SUBPOENA COMPLIANCE. A
person required by a subpoena to attend a proceeding before the
commission or its agent is entitled to:
(1) reimbursement for mileage in the same amount for
each mile as the mileage travel allowance for a state employee for
the person's travel to or from the place where the person's
attendance is required, if the place is more than 25 miles from the
person's place of residence; and
(2) a fee for each day or part of a day the person is
required to be present as a witness that is equal to the greater of:
(A) $10; or
(B) the general per diem travel allowance for a
state employee traveling within this state.
Sec. 2001.704. OUT-OF-STATE EVIDENCE. (a) A person in
possession or control of evidence located outside this state on
request of the commission may make the evidence available for
examination at the place where the evidence is located. The
commission may designate a representative, including an official of
the state in which the evidence is located, to examine the evidence
for the commission.
(b) The commission on request of an official of another
state or of the United States may examine evidence located in this
state for that official in circumstances similar to those described
by Subsection (a).
Sec. 2001.705. ACCESS TO EVIDENCE. (a) Evidence acquired
under a commission subpoena is not a public record for the period
the commission or its agent determines is reasonably necessary to:
(1) complete an investigation;
(2) protect the person being investigated from
unwarranted injury; or
(3) serve the public interest.
(b) The evidence is not subject to a subpoena, other than a
grand jury subpoena, until:
(1) the evidence is released by the commission for
public inspection; or
(2) after notice and a hearing, a district court
determines that complying with the subpoena would not jeopardize
the public interest or any investigation by the commission.
(c) Except for good cause, a district court order under
Subsection (b)(2) does not apply to:
(1) any communication received by the commission from
a law enforcement agency or another regulatory agency; or
(2) any internal commission communication made in
connection with a matter that the commission has the authority to
consider.
Sec. 2001.706. PRIVILEGED AND CONFIDENTIAL INFORMATION.
(a) Any information or evidence produced under a commission
subpoena that is otherwise privileged or confidential by law
remains privileged or confidential until admitted into evidence in
an administrative hearing or a court.
(b) The commission may issue a protective order relating to
the confidentiality or privilege of information or evidence
described by Subsection (a) to restrict the use or distribution of
the information or evidence:
(1) by any person; or
(2) in a proceeding other than a proceeding before the
commission.
Sec. 2001.707. COOPERATION WITH LAW ENFORCEMENT. On
request, the commission may furnish evidence obtained under a
commission subpoena to:
(1) a law enforcement agency of this state, another
state, or the United States; or
(2) a prosecuting attorney of a municipality, county,
or judicial district of this state, another state, or the United
States.
Sec. 2001.708. SUBPOENAS ISSUED TO FINANCIAL INSTITUTIONS.
A subpoena issued to a financial institution as part of a criminal
investigation is not subject to Section 30.007, Civil Practice and
Remedies Code.
Sec. 2001.709. EFFECT ON CONTESTED CASE. Sections
2001.701, 2001.704, 2001.705, 2001.707, and 2001.708 do not affect
the conduct of a contested case under Chapter 2001, Government
Code.
SECTION 76. Section 466.003, Government Code, and Sections
2001.057(b), 2001.152(b) and (c), 2001.305, 2001.313, 2001.314,
2001.355, and 2001.356, Occupations Code, are repealed.
SECTION 77. The TexasOnline Authority and the Texas Lottery
Commission shall study the fiscal and administrative impact of
offering lottery retail sales via Internet-based PIN debit
transaction. The study findings shall be reported to the
legislature not later than December 15, 2003.
SECTION 78. (a) Not later than September 1, 2004, the
Texas Lottery Commission shall:
(1) adopt the rules and procedures required by Section
466.1005, Government Code, and Subchapter C-1, Chapter 2001,
Occupations Code, as added by this Act; and
(2) adopt the rules required by:
(A) Section 466.158(d), Government Code, as
added by this Act;
(B) Section 2001.3015, Occupations Code, as
added by this Act; and
(C) Sections 2001.101, 2001.451, and 2001.458,
Occupations Code, as amended by this Act.
(b) Not later than September 1, 2004, the Texas Lottery
Commission shall:
(1) adopt the comprehensive business plan required by
Section 466.027, Government Code, as added by this Act;
(2) adopt the rules required by Section 2001.0555,
Occupations Code, as added by this Act; and
(3) adopt the administrative penalty schedule and
timeline required by Section 2001.6015, Occupations Code, as added
by this Act.
(c) The Texas Lottery Commission shall adopt rules to
administer electronic pull-tab bingo and regulate electronic
pull-tab card-minding devices under Chapter 2001, Occupations
Code, as amended by this Act, not later than December 1, 2003, and
may adopt the initial rules in the manner provided by law for
emergency rules.
SECTION 79. (a) The changes in law made by this Act in the
prohibitions or qualifications applying to a member of the Texas
Lottery Commission do not affect the entitlement of a member
serving on the Texas Lottery Commission immediately before November
1, 2003, to continue to serve and function as a member of the Texas
Lottery Commission for the remainder of the member's term. Those
changes in law apply only to a member appointed on or after November
1, 2003.
(b) The change in law made by this Act to Chapter 467,
Government Code, relating to the investigation of a complaint
applies only to a complaint filed with the Texas Lottery Commission
on or after November 1, 2003. A complaint filed with the commission
or a division of the commission before November 1, 2003, is governed
by the law as it existed immediately before that date, and the
former law is continued in effect for that purpose.
(c) The change in law made by this Act requiring the Texas
Lottery Commission to approve a procurement applies only to a
procurement or contract made on or after the effective date of this
Act. A procurement or contract made before the effective date of
this Act is governed by the law in effect when the procurement or
contract was made, and the former law is continued in effect for
that purpose.
(d) The changes in law made by this Act governing
eligibility of a person for a license apply only to the issuance or
renewal of a license by the Texas Lottery Commission under Chapter
466, Government Code, as amended by this Act, or Chapter 2001,
Occupations Code, as amended by this Act, on or after the effective
date of this Act. A license issued by the Texas Lottery Commission
under either of those laws before the effective date of this Act is
governed by the applicable licensing requirements in effect when
the license was last issued or renewed until the license expires or
is renewed as provided by Chapter 466, Government Code, as amended
by this Act, or Chapter 2001, Occupations Code, as amended by this
Act.
(e) The change in law made by this Act to Section 2001.457,
Occupations Code, applies to the charitable disbursements made by a
licensed authorized organization beginning with disbursements for
the second quarter of 2004. A charitable disbursement made by a
licensed authorized organization for a quarter before the second
quarter of 2004 is governed by the law in effect immediately before
the effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 80. This Act takes effect November 1, 2003.