SRC-VRA C.S.S.B. 270 78(R)BILL ANALYSIS
Senate Research CenterC.S.S.B. 270
78R13163 YDB-DBy: Jackson
Government Organization
4/24/2003
Committee Report (Substituted)
DIGEST AND PURPOSE
In 1991, Texas voters approved a constitutional amendment authorizing a
state lottery. In 1993, the Texas Legislature created the Texas Lottery
Commission (lottery commission) to assume the administration of the
lottery and also transferred the administration of the Bingo Enabling Act
to the new agency. Today, the lottery commission administers and markets
the state lottery and regulates the charitable bingo industry through
licensing and enforcement. C.S.S.B. 270 continues the Texas Lottery
Commission for the standard 12-year period until September 1, 2015.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Lottery Commission
in SECTION 3 (Section 466.1005, Government Code), SECTION 5 (Section
466.158, Government Code), SECTION 13 (Section 467.112, Government Code),
SECTION 17 (Section 201.0555, Occupations Code), SECTION 20 (Section
2001.101, Occupations Code), SECTION 30 (Section 2001.3015, Occupations
Code), SECTION 32 (Section 2001.314, Occupations Code), SECTION 33
(Section 2001.351, Occupations Code), SECTION 34 (Section 2001.355,
Occupations Code), SECTION 41 (Sections 2001.437 and 2001.439, Occupations
Code), SECTION 42 (Section 2001.451, Occupations Code), and SECTION 48
(Section 2001.6015, Occupations Code).
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 466.014, Government Code, by adding Subsection
(d) to require a contract between the division and a lottery operator
under Subsection (b) to contain a provision allowing the contract to be
terminated without penalty if the division is abolished.
SECTION 2. Amends Subchapter B, Chapter 466, Government Code, by adding
Section 466.026, as follows:
Sec. 466.026. COMPREHENSIVE BUSINESS PLAN. (a) Requires the Texas
Lottery Commission (lottery commission) to develop a comprehensive
business plan to guide its major initiatives. Requires the plan to
include certain information.
(b) Requires lottery to at least annually review the comprehensive
business plan to assess the overall performance and value of each program
and project.
SECTION 3. Amends Subchapter C, Chapter 466, Government Code, by adding
Section 466.1005, as follows:
Sec. 466.1005. PROCUREMENTS. (a) Authorizes the lottery commission to
purchase or lease facilities, goods, and services and to make any
purchases, leases, or contracts, necessary for carrying out the purpose of
this chapter.
(b) Requires the lottery commission to review and to approve all major
procurements as provided by lottery rule. Requires lottery by rule to
establish a procedure to determine what constitutes a major procurement
based on the cumulative value of a contract and other relevant factors.
(c) Authorizes the lottery commission to delegate to the executive
director the authority to approve procurements other than major
procurements.
SECTION 4. Amends Sections 466.101(a) and (b), Government Code, to add
new language to existing text to add the lottery commission to certain
actions and decisions which are currently the sole responsibility of the
executive director.
SECTION 5. Amends Section 466.158, Government Code, by adding Subsections
(d)-(f), as follows:
(d) Requires the lottery commission, in making a determination whether to
renew a license, to consider the compliance history of a license holder.
Requires the lottery commission to adopt rules to govern the specific
areas of compliance history that may be considered in the renewal
determination.
(e) Authorizes the lottery commission, after an opportunity for a
hearing, to 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 in accordance with the rules adopted under
Subsection (d).
(f) Authorizes the lottery commission by rule to adopt a system under
which licenses expire on various dates during the year. Requires the
lottery commission, for the year in which the license expiration date is
changed, to 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. Provides that on
renewal of the license on the new expiration date, the total license
renewal fee is payable.
SECTION 6. Amends Section 467.002, Government Code, to continue the Texas
Lottery Commission for the standard 12-year period until September 1,
2015.
SECTION 7. Amends Sections 467.021(a) and (b), Government Code, as
follows:
(a) Provides that the lottery commission is composed of five, rather
than three, members.
(b) Requires appointments to the lottery commission be made without
regard to certain factors.
SECTION 8. Amends Section 467.022, Government Code, to make a conforming
change.
SECTION 9. Amends Section 467.024, Government Code, by adding Subsections
(c) and (d) as follows:
(c) Provides that a person may not be a lottery 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 certain criteria
are met.
(d) Provides that a person may not act as the general counsel to the
lottery 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 lottery.
SECTION 10. Amends Subchapter B, Chapter 467, Government Code, by adding
Section 467.0255, as follows:
Sec. 467.0255. TRAINING. (a) Provides that a person who is appointed
to and qualifies for office as a member of the lottery commission may not
vote, deliberate, or be counted as a member in attendance at a meeting of
the lottery commission until the person completes a training program that
complies with this section.
(b) Requires the training program to provide the person with certain
information.
(c) Provides that a person appointed to the lottery commission is
entitled to reimbursement, as provided by the General Appropriations Act,
for 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 11. Amends Sections 467.026(a) and (c), Government Code, to
provide the grounds for removal of a commission member.
(c) Requires the executive director, if he or she has knowledge that a
potential ground for removal exists, to notify the presiding officer of
the lottery commission of the potential ground. Requires the presiding
officer to then notify the governor and the attorney general that a
potential ground for removal exists. Requires the executive director, if
the potential ground for removal involves the presiding officer, to notify
the next highest ranking officer of the lottery commission, who is
required to then notify the governor and the attorney general that a
potential ground for removal exists.
SECTION 12. Amends Subchapter B, Chapter 467, Government Code, by adding
Sections 467.037-467.040, as follows:
Sec. 467.037. DIVISION OF RESPONSIBILITIES. Requires the lottery
commission to 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 lottery
commission.
Sec. 467.038. EQUAL EMPLOYMENT OPPORTUNITY POLICY; REPORT. (a) Requires
the executive director or the executive director's designee to 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) Requires the policy to include certain information.
(c) Requires the policy statement to be updated annually, be reviewed by
the state Commission on Human Rights for compliance with Subsection
(b)(1), and be filed with the governor's office.
Sec. 467.039. REQUIREMENTS AND STANDARDS OF CONDUCT INFORMATION.
Updates standard Sunset language regarding requirements and standards of
conduct.
Sec. 467.040. STATE EMPLOYEE INCENTIVE PROGRAM INFORMATION. Requires the
executive director or the executive director's designee to provide to
lottery employees information and training on the benefits and methods of
participation in the state employee incentive program.
SECTION 13. Amends Subchapter Chapter 467, Government Code, by adding
Sections 467.109-467.112, as follows:
Sec. 467.109. TECHNOLOGY POLICY. Requires the lottery commission to
develop and implement a policy requiring the executive director and
lottery employees to research and propose appropriate technological
solutions to improve the ability to perform lottery functions. Requires
the technological solutions to ensure that certain services are provided.
Sec. 467.110. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION.
(a) Requires the lottery commission to develop and implement a policy to
encourage the use of certain rulemaking and alternative dispute resolution
procedures.
(b) Requires the lottery commission's procedures relating to alternative
dispute resolution to conform to any model guidelines issued by the State
Office of Administrative Hearings for the use of alternative dispute
resolution by state agencies.
(c) Requires the lottery commission to designate a trained person to
perform certain functions.
Sec. 467.111. PUBLIC PARTICIPATION. Requires the lottery commission to
develop and implement policies that provide the public with a reasonable
opportunity to appear before lottery and to speak on any issue under the
jurisdiction of the commission.
Sec. 467.112. COMPLAINTS. (a) Requires the lottery commission to
maintain a file on each written complaint filed with the commission.
Requires the file to include certain information.
(b) Requires the lottery commission to 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) Requires the lottery commission, at least quarterly until final
disposition of the complaint, to 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) Requires the lottery commission to publish procedures covering the
entire complaint process from submission to disposition.
(e) Requires the lottery commission by rule to require an investigation
related to a complaint to be completed within a reasonable time.
(f) Requires the lottery commission to analyze the complaints filed with
the board to identify any trends or issues related to certain violations.
SECTION 14. Amends Section 2001.051(b), Occupations Code, to provide
that the lottery commission has broad authority and to require the lottery
commission to exercise strict control and close supervision over all bingo
conducted in this state so that bingo is fairly conducted and thre
proceeds derived from bingo are used for an authorized purpose. Provides
that the lottery commission does not have regulatory authority over
certain matters.
SECTION 15. Amends Section 2001.053, Occupations Code, to prohibit an
officer or investigator employed by the lottery commission from carrying a
firearm or badge and wearing a hat, uniform, or other clothing with any
type of insignia indicating the officer's or investigator's official
position, while conducting a routine inspection of bingo premises or a
business office of a licensed authorized organization.
Creates Subsection (a) from existing text.
SECTION 16. Amends Section 2001.055, Occupation Code, to require the
lottery commission, to the extent consistent with this chapter, to support
the efforts of licensed authorized organizations to develop and offer new
types of bingo games and to apply new technology to bingo games.
Creates Subsection (a) from existing text.
SECTION 17. Amends Subchapter B, Chapter 2001, Occupations Code, by
adding Section 2001.0555, as follows:
Sec. 2001.0555. COMPLIANCE MONITORING. Requires the lottery commission
to adopt rules to govern its monitoring of a license holder to determine
if the license holder is in compliance with this chapter or rules adopted
under this chapter. Requires the rules at a minimum to address audits and
inspections and other compliance and enforcement activities.
SECTION 18. Amends Section 2001.057, Occupations Code, by adding
Subsections (h) and (i), as follows:
(h) Requires the Bingo Advisory Committee (committee) to annually develop
a work plan detailing the committee's objectives and the issues to be
addressed by the committee during the year. Requires the plan to perform
certain tasks.
(i) Requires the committee to perform a review at the end of each year to
perform certain functions.
SECTION 19. Amends Subchapter B, Chapter 2001, Occupations Code, by
adding Section 2001.059, as follows:
Sec. 2001.059. ADVISORY OPINIONS. (a) Authorizes a person to request
from the director of the bingo division an advisory opinion regarding
compliance with this chapter and the rules of the policy board.
(b) Requires the director of the bingo division to respond to a request
under Subsection (a) not later than the 30th day after the date a request
is received, unless the director determines that the request does not
contain sufficient facts to provide an answer on which the requestor may
rely. Requires the director, in that event, to request additional
information from the requestor not later than the 10th day after the dat
the request is received. Requires the director, if the director requests
additional information, to respond to the request not later than the 30th
day after the date additional information is received pursuant to the
request for additional information.
(c) Authorizes a person who requests an advisory opinion under Subsection
(a) to 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.
SECTION 20. Amends Section 2001.101, Occupations Code, to authorize the
lottery commission to license an authorized organization to conduct bingo
if the organization has been in existence for the time required by
commission rule. Deletes provisions requiring various organizations to
have been in existence varying lengths of time.
SECTION 21. Amends Section 2001.103(d), Occupations Code, to provide that
an organization operating under a temporary license is subject to the
standard licensing oversight of the lottery commission, including audits
and inspections.
SECTION 22. Amends Section 2001.104, Occupations Code, by adding
Subsection (d) to require an applicant to pay the fees established under
Subsection (a) annually. Authorizes an applicant for a license or renewal
of a license to obtain a license that is effective for two years by paying
an amount equal to two times the amount of the annual license fee plus
$25.
SECTION 23. Amends Section 2001.105, Occupations Code, by adding
Subsection (c), to provide that except as provided by Section 2001.104(d),
a license issued under this subchapter is effective for one year.
SECTION 24. Amends Subchapter C, Chapter 2001, Occupations Code, by
adding Section 2001.108, as follows:
Sec. 2001.108. LICENSE AMENDMENT FOR CHANGE OF BINGO PREMISES OR
OCCASIONS. (a) Authorizes a licensed authorized organization and the
licensed commercial lessor at which the organization conducts or will
conduct bingo to file a joint application with the lottery commission to
change the premises at which the organization may conduct bingo or the
times of the organization's bingo occasions to allow the organization to
conduct bingo at the same time and premises that another licensed
authorized organization is licensed to conduct bingo, if the other
organization has ceased, or will cease, conducting bingo at that time and
premises. Requires the application to state whether the other
organization has ceased conducting bingo at that time and premises because
of certain conditions.
(b) Requires the lottery commission, of the other organization ceased or
will cease conducting bingo for the reason stated in Subsection (a)(1), to
act on the joint application filed under Subsection (a) not later than the
10th day after the date the application is filed with the lottery
commission.
(c) Requires the lottery commission, if the other organization ceased or
will cease conducting bingo for the reason stated in Subsection (a)(2), to
act on the joint application not later than the 10th day after the date
the application is filed with the lottery commission or the date on which
the termination takes effect, whichever is later.
(d) Authorizes the licensed authorized organization, if the lottery
commission fails to act within the time provided by Subsection (b) or (c),
to act as if the change in premises or bingo occasions has been approved
by the lottery commission and to conduct bingo at the new premises or
during the new bingo occasion until the lottery commission acts on the
application.
(e) Authorizes the lottery commission, notwithstanding Subsection (d), to
issue temporary licenses to one or more licensed authorized organizations
that conduct bingo at the same location as an organization that has or
will cease to conduct bingo, which are in addition to the number of
temporary licenses each organization is entitled to under another
provision of this chapter. Provides that the lottery commission is not
required to act on a joint application under Subsection (a) within the
time provided by this section for the additional temporary licenses if the
number of additional temporary licenses is sufficient to allow the other
organization to conduct bingo during the licensed times of the
organization that has or will cease to conduct bingo.
SECTION 25. Amends Section 2001.152(a), Occupations Code, to authorize
the lottery commission to issue a commercial lessor license to certain
individuals. Deletes Subdivision (2).
SECTION 26. Amends Section 2001.158, Occupations Code, by adding
Subsection (d) to require an applicant for a commercial lessor license to
pay the fees established under Subsection (a) annually. Authorizes an
applicant for a license or renewal of a license to obtain a license that
is effective for two years by paying an amount equal to two times the
amount of the annual license fees plus $25.
SECTION 27. Amends Section 2001.159(c), Occupations Code, to prohibit the
commercial lessor license period, except as provided by Section
2001.158(d), from exceeding one year.
SECTION 28. Amends Section 2001.214, Occupations Code, as follows:
(a) Makes a conforming change.
(b) Authorizes a manufacturer or distributor to obtain a license that is
effective for two years by paying an amount equal to two times the amount
of the annual license fee plus $1,000.
SECTION 29. Amends Section 2001.218(a), Occupations Code, to add "or
lease" to existing text relating to a sale of bingo supplies or equipment.
SECTION 30. Amends Subchapter G, Chapter 2001, Occupations Code, by
adding Section 2001.3015, as follows:
Sec. 2001.3015. LICENSING RULES. Requires the lottery commission by
rule to perform certain tasks.
SECTION 31. Amends Section 2001.307, Occupations Code, to make a
conforming change.
SECTION 32. Amends Subchapter G, Chapter 2001, Occupations Code, by
adding Sections 2001.313 and 2001.314, as follows:
Sec. 2001.313. REGISTRY OF APPROVED BINGO WORKERS. (a) Requires the
lottery commission, to minimize duplicate criminal history background
checks by the lottery commission and the costs incurred by organizations
and individuals, to maintain a registry of persons on whom the lottery
commission has conducted a criminal history background check and who are
approved to be involved in the conduct of bingo or to act as a bingo
operator.
(b) Authorizes a person listed in the registry to be involved in the
conduct of bingo or act as an operator at any location at which bingo is
lawfully conducted.
(c) Requires the lottery commission to make the registry information
available to the public by publishing it on the lottery commission's
website and by responding to telephone, e-mail, and facsimile requests.
Provides that this subsection does not require the lottery commission to
disclose information that is confidential by law.
Sec. 2001.314. IDENTIFICATION CARD FOR APPROVED BINGO WORKER. (a)
Authorizes the lottery commission to require a person listed in the
registry maintained under Section 2001.313 to wear an identification card
to identify the person to license holders, bingo players, and lottery
commission staff while the person is on duty during the conduct of bingo.
Requires the lottery commission by rule to prescribe the form and content
of the card.
(b) Authorizes the lottery commission to provide the identification card
or to provide a form to be completed by a person that allows the person to
prepare the identification card. Authorizes the lottery commission to
collect a reasonable charge to cover the cost of providing the card or
form.
(c) Provides that a person is not required to obtain the identification
card or form from the lottery commission, but is authorized to obtain a
substantially identical card or form from another source.
(d) Requires an identification card required by the lottery commission
under this section to be worn by a person while on duty during the conduct
of bingo to be in substantial compliance with the form and content
requirements prescribed by the lottery commission under this section.
(e) Prohibits the lottery commission from requiring any other person
licensed under this chapter, or a person acting on the license holder's
behalf, to wear an identification card, whether or not the person is
present or performing the person's duties during the conduct of bingo.
SECTION 33. Amends Section 2001.351, Occupations Code, as follows:
(b) Requires the lottery commission, in making a determination whether to
renew a license, to consider the compliance history of a license holder.
Requires the lottery commission to adopt rules to govern the specific
areas of compliance history that may be considered in the renewal
determination.
(c) Authorizes the lottery commission, after an opportunity for a
hearing, to 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 in accordance with the rules adopted under Subsection (b).
SECTION 34. Amends Section 2001.355, Occupations Code, by amending
Subsection (b) and adding Subsection (d), as follows:
(b) Adds new language to existing text regarding the temporary
suspension of a license.
(d) Requires the lottery to adopt rules to govern the temporary
suspension of a license under this section.
SECTION 35. Amends Section 2001.406(a), Occupations Code, to delete
current language from existing text related to the rent charged by a
licensed commercial lessor.
SECTION 36. Amends Section 2001.411, Occupations Code, by adding
Subsection (e) to prohibit the lottery commission from prohibiting an
operator responsible for conducting, promoting, or administering bingo
from acting as a bingo caller for a licensed authorized organization
during a bingo occasion. Provides that this subsection does not relieve
the operator of the duty to be available to a lottery commission employee
or bingo player if required by this chapter.
SECTION 37. Amends Subchapter I, Chapter 2001, Occupations Code, by
adding Section 2001.4115, as follows:
Sec. 2001.4115. JOINT EMPLOYMENT OF BINGO EMPLOYEES. Authorizes two or
more licensed authorized organizations conducting bingo at the same
premises to jointly hire bingo employees. Authorizes one organization to
act as the employee's employer and the other organization to reimburse the
employing organization for the other organization's share of the
employee's compensation and other employment-related costs. Provides that
a reimbursement under this section is an authorized expense and must be
made from the bingo account of the reimbursing organization.
SECTION 38. Amends Section 2001.413, Occupations Code, to make a
conforming change.
SECTION 39. Amends Section 2001.415, Occupations Code, to add a licensed
commercial lessor to existing text relating to bingo advertisements.
SECTION 40. Amends Subchapter I, Chapter 2001, Occupations Code, by
adding Section 2001.4155, as follows:
Sec. 2001.4155. GIFT CERTIFICATES. (a) Provides that nothing in this
chapter prohibits a licensed authorized organization or licensed
commercial lessor from distributing or accepting a gift certificate that
entitles the bearer of the certificate to enter bingo premises or to play
a bingo game, including instant bingo.
(b) Requires a licensed authorized organization or licensed commercial
lessor that distributes or accepts a gift certificate to keep adequate
records relating to the gift certificate as provided by lottery commission
rule.
SECTION 41. Amends Chapter 2001, Occupations Code, by adding Subchapter
I-1, as follows:
SUBCHAPTER I-1. UNIT ACCOUNTING
Sec. 2001.431. DEFINITIONS. Defines "unit," "unit accounting," "unit
accounting agreement," and "unit manager."
Sec. 2001.432. FORMING ACCOUNTING UNIT. (a) Authorizes two or more
licensed authorized organizations to form and operate a unit as provided
by this subchapter by meeting certain conditions.
(b) Authorizes more than one unit to be formed at a single location.
Prohibits a licensed authorized organization from being a member of more
than one unit.
(c) Provides that this subchapter does not require a licensed authorized
organization to join a unit. Provides that except as provide by
Subsection (d), whether to join or withdraw from a unit is at the
discretion of each licensed authorized organization.
(d) Authorizes the members of a unit to determine whether to allow
another licensed authorized organization to join the unit. Provides that
the terms of the withdrawal of a member from the unit are governed by the
unit agreement.
Sec. 2001.433. APPLICABILITY OF CHAPTER. Provides that a licensed
authorized organization that uses unit accounting is subject to the other
provisions of this chapter to the extent the provisions are applicable and
are not inconsistent with this subchapter.
Sec. 2001.434. CONDUCT OF BINGO. (a) Requires each licensed authorized
organization that is a member of a unit to conduct its bingo games
separately from the bingo games of the other members of the unit.
(b) Authorizes a unit to purchase or lease bingo supplies and equipment
in the same manner as a licensed authorized organization.
(c) Authorizes a licensed distributor to sell or lease bingo supplies or
equipment to a unit in the same manner as the distributor sells or leases
bingo supplies and equipment to a licensed authorized organization.
Sec. 2001.435. UNIT ACCOUNTING. (a) Requires and authorizes a unit to
perform certain tasks.
(b) Requires each member of a unit to deposit into the unit's bingo
account all funds derived from the conduct of bingo, less the amount
awarded as cash prizes under Sections 2001.420(a) and (b). Requires the
deposit to be made not later than the next business day after the day of
the bingo occasion on which the receipts were obtained.
(c) Requires all authorized expenses and distributions of the unit and
its members to be paid from the unit's bingo checking account.
Sec. 2001.436. DISBURSEMENT OF FUNDS BY DISSOLVED UNIT. (a) Provides
that Sections 2001.457(a) and (b) apply to a unit formed under this
subchapter. Requires the requirements of Sections 2001.457(a) and (b)
that are applicable to a licensed authorized organization, for purposes of
this subchapter, to be applied to a unit.
(b) Requires a unit that has dissolved for any reason and has unexpended
bingo funds to disburse those funds to the bingo account of each member of
the unit before the end of the next calendar quarter after the calendar
quarter in which the unit dissolves.
(c) Defines "adjusted gross receipts" and "cost of goods purchased by a
unit" for the purposes of the application of Sections 2001.457(a) and (b)
to a unit under this section.
Sec. 2001.437. UNIT MANAGER; LICENSE. (a) Provides that the unit
manger is responsible for certain tasks, if the unit accounting agreement
of a unit states that a unit manager is responsible for compliance with
lottery commission rules and this chapter.
(b) Requires a unit with a unit manager to notify the lottery commission
of the name of the unit manager and immediately notify the lottery
commission of any change of unit manager.
(c) Prohibits a person from providing services as a unit manager to
licensed authorized organizations that form a unit unless the person holds
a unit manger license under this subchapter. Provides that a person
designated as an agent under Section 2001.438(b) is not a unit manager on
account of that designation for purposes of this section.
(d) Requires an applicant for a unit manager license to file with the
lottery commission a written application on a form prescribed by the
lottery commission that includes certain information.
(e) Requires the lottery commission by rule to establish an annual
license fee for a unit manager license in an amount reasonable to defray
administrative costs plus any costs incurred to conduct a criminal
background check.
(f) Requires a person who holds a unit manager license to post a bond or
other security pursuant to Section 2001.514.
(g) Provides that a person is not eligible for a unit manager license
under this subchapter if the person, or any officer, director, or employee
of the person meets certain criteria.
(h) Requires a unit manager to complete the training required by Section
2001.107.
Sec. 2001.438. AGREEMENT WITHOUT UNIT MANAGER. (a) Provides that this
section applies to a unit if the unit accounting agreement for the unit
meets certain criteria.
(b) Requires the unit to designate with the lottery commission an agent
who will be responsible for providing the lottery commission access to all
inventory and financial records of the unit on request of the lottery
commission.
(c) Prohibits the agent designated under Subsection (b) from certain
factors.
(d) Requires the agent to immediately notify the lottery commission of
any change in the agent designated under Subsection (b).
(e) Requires the designated agent to complete the training required by
Section 2001.107.
(f) Requires each licensed authorized organization that is a member of
the unit to be jointly and severally liable for certain factors.
(g) Authorizes each licensed authorized organization that is a member of
the unit to be made a party to any administrative or judicial action
relating to the enforcement of this subchapter or lottery commission rules
related to the operations of the unit.
Sec. 2001.439. TRUST AGREEMENT. (a) Authorizes a unit, notwithstanding
any other provision of this subchapter, to be formed pursuant to a trust
agreement between two or more licensed authorized organizations that
conduct bingo at the same location. Requires the agreement to meet certain
standards.
(b) Authorizes the lottery commission by rule to prohibit a person from
serving as a unit manager or as a designated agent for a unit that does
not use a unit manager if the person has failed to comply with the duties
required of the person as a unit manager or designated agent.
(c) Authorizes the lottery commission to prohibit a person who serves as
a designated agent that is listed on a license under this chapter,
including having been approved by the lottery commission to work in the
bingo operations of a licensed authorized organization or as an operator,
from holding or being listed on any license or from being approved to work
in the bingo operations of any licensed authorized organization or to
serve as an operator if the person has failed to comply with the duties
required of the person as a unit manager or designated agent.
SECTION 42. Amends Section 2001.451, Occupations Code, by amending
Subsection (b) and adding Subsections (b-1) and (g)-(k), as follows:
(b) Makes a conforming change.
(b-1) Authorizes a licensed authorized organization to deposit funds
derived from the conduct of bingo that are paid through a debit card
transaction in the bingo fund not later than 72 hours after the
transaction.
(g) Requires the lottery commission to adopt rules to allow a licensed
authorized organization to retain a maximum amount, which must be at least
equal to the organization's average daily bingo expenses over the
preceding four quarters multiplied by 180 but not more than $50,000, as
operating capital in the organization's bingo account.
(h) Requires a licensed authorized organization's bingo operations to
result in net proceeds being earned by the organization over the
organization's licensing period.
(i) Provides that notwithstanding Subsection (g) certain conditions
apply.
(j) Authorizes a licensed authorized organization to apply for and the
lottery commission to grant approval of a waiver of the requirements of
Subsection (i)(1) or Section 2001.457 if the organization establishes good
cause why complying with the requirements will work to the detriment of
the existing or planned charitable purposes of the organization.
(k) Provides that this subsection and Subsections (i) and (j) expire
September 1, 2006.
SECTION 43. Amends Section 2001.454, Occupations Code, as follows:
(a) Requires a licensed authorized organization to devote to the
charitable purpose of the organization its net proceeds of bingo and any
rental of premises.
(b) Provides that except as otherwise provided by law, the net proceeds
derived from bingo and any rental of premises are dedicated to the
charitable purposes of the organization only if directed to a cause, deed,
or activity that is consistent with the federal tax exemption under which
the organization qualifies as a nonprofit organization as defined by
Section 2001.002.
SECTION 44. Amends Sections 2001.457(a), (b), and (d), Occupations Code,
as follows:
(a) Requires a licensed authorized organization, before the end of each
quarter, to disburse for charitable purposes all 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).
(b) Requires the lottery commission to sanction a licensed authorized
organization that fails to make the disbursement required by Subsection
(a) or to make any disbursement for charitable purposes for a quarter.
Makes conforming changes.
(d) Redefines "adjusted gross receipts." Deletes the definition of "cost
of goods purchased by an organization."
SECTION 45. Amends Section 2001.458(a), Occupations Code, to prohibit an
item of expense from being incurred or paid in connection with the conduct
of bingo except an expense that is reasonable or necessary to conduct
bingo, including an expense for certain factors.
SECTION 46. Amends Section 2001.459(a), Occupations Code, to require that
certain items of expense incurred or paid in connection with the conduct
of bingo be paid from an organization's bingo account.
SECTION 47. Amends Section 2001.504(a), Occupations Code, to provide that
a tax or fee authorized or imposed under this subchapter is due and is
payable by the license holder or a person conducting bingo without a
license to the lottery commission quarterly on or before the 25th, rather
than 15th, day of the month succeeding each calendar year.
SECTION 48. Amends Subchapter M, Chapter 2001, Occupations Code, by
adding Section 2001.6015, as follows:
Sec. 2001.6015. ADMINISTRATIVE PENALTY SCHEDULE; TIMELINE. (a) Requires
the lottery commission by rule to 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) Requires the administrative penalties to allow certain deviations and
provide certain information.
(c) Requires the lottery commission by rule to establish a timeline for
the resolution of a violation of this chapter or commission rules adopted
under this chapter. Requires the rules to meet certain requirements.
SECTION 49. Repealer: Section 466.003, Government Code (Application of
Sunset Act), Section 2001.057 (b), Occupations Code (Bingo Advisory
Committee), Section 2001.409(b), Occupations Code (Card-Minding Devices),
and Section 2001.410(c), Occupations Code (PullTab Dispenser).
SECTION 50. Makes application of the change in law made by this Act
relating to a license issued under Chapter 2001, Occupations Code,
prospective.
SECTION 51. (a) Requires the Texas Lottery Commission, not later than
January 1, 2004, to adopt rules and procedures prescribed in this Act.
(b) Requires the Texas Lottery Commission, not later than January 1,
2004, to adopt a comprehensive business plan, rules and an administrative
penalty schedule and timeline.
SECTION 52. (a) Makes application of the changes in law made by this Act
in the prohibitions or qualifications applying to a member of the Texas
Lottery Commission, prospective.
(b) Requires the governor, promptly after this Act takes effect, to
appoint two additional members to the Texas Lottery Commission. Requires
the governor, in appointing those members, to appoint one person to a term
expiring February 1, 2007, and one to a term expiring February 1, 2009.
(c)-(e) Make application of this Act prospective.
(f) Provides that 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. Provides that 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 53. Effective date: September 1, 2003.