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H.B. No. 2519
AN ACT
relating to the regulation of bingo.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2001.002, Occupations Code, is amended
by amending Subdivision (5) to read as follows:
(5) "Bingo equipment" means equipment used, made, or
sold for the purpose of use in bingo. The term:
(A) includes:
(i) a machine or other device from which
balls or other items are withdrawn to determine the letters and
numbers or other symbols to be called;
(ii) an electronic or mechanical
cardminding device;
(iii) a pull-tab dispenser;
(iv) a bingo card; [and]
(v) a bingo ball; and
(vi) any other device commonly used in the
direct operation of a bingo game; and
(B) does not include:
(i) a bingo game set commonly manufactured
and sold as a child's game for a retail price of $20 or less unless
the set or a part of the set is used in bingo subject to regulation
under this chapter; or
(ii) a commonly available component part of
bingo equipment such as a light bulb or[,] fuse[, or bingo ball].
SECTION 2. Subchapter B, Chapter 2001, Occupations Code, is
amended by adding Section 2001.059 to read as follows:
Sec. 2001.059. ADVISORY OPINIONS. (a) A person may
request from the commission an advisory opinion regarding
compliance with this chapter and the rules of the commission.
(b) The commission shall respond to a request under
Subsection (a) not later than the 60th day after the date a request
is received, unless the commission determines that the request does
not contain sufficient facts to provide an answer on which the
requestor may rely. In that event, the commission shall request
additional information from the requestor not later than the 10th
day after the date the request is received. If the commission
requests additional information, the commission shall respond to
the request not later than the 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 3. Section 2001.103, Occupations Code, is amended
by adding Subsections (e)-(h) to read as follows:
(e) Notwithstanding Subsection (c), an authorized
organization that holds a regular license to conduct bingo may
receive not more than 12 temporary licenses during the 12-month
period following the issuance or renewal of the license.
(f) An authorized organization that holds a regular license
to conduct bingo may apply for all or any portion of the total
number of temporary licenses to which the organization is entitled
under Subsection (e) in one application without stating the days or
times for which the organization will use the temporary licenses.
(g) An organization that has been issued a temporary license
under Subsection (f) shall notify the commission of the specific
date and time of the bingo occasion for which the temporary license
will be used before using the license. If the commission receives
the notification by noon of the day before the day the temporary
license will be used, the commission shall verify receipt of the
notice before the end of the business day on which the notice is
received. If the commission does not receive the notification by
noon of the day before the day the temporary license will be used,
the commission shall verify receipt of the notice before noon of the
business day that follows the day the commission received the
notice.
(h) A verification under Subsection (g) may be delivered by
facsimile, e-mail, or any other means reasonably contemplated to
arrive before the time the temporary license will be used.
SECTION 4. Section 2001.104, Occupations Code, is amended
by adding Subsection (d) to read as follows:
(d) An applicant shall pay the fees established under
Subsection (a) annually. An applicant for a license or renewal of a
license may 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 5. Section 2001.105, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) Except as provided by Section 2001.104(d), a license
issued under this subchapter is effective for one year.
SECTION 6. Subchapter C, Chapter 2001, Occupations Code, is
amended by adding Section 2001.108 to read as follows:
Sec. 2001.108. LICENSE AMENDMENT FOR CHANGE OF BINGO
PREMISES OR OCCASIONS. (a) A licensed authorized organization and
the licensed commercial lessor at which the organization conducts
or will conduct bingo may file a joint application with the
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. The application
must state whether the other organization has ceased or will cease
conducting bingo at that time and premises because:
(1) the organization has abandoned or will abandon its
licensed time or premises; or
(2) the organization's lease has been or will be
terminated.
(b) If the other organization ceased or will cease
conducting bingo for the reason stated in Subsection (a)(1), the
commission must act on the joint application filed under Subsection
(a) not later than the 10th day after the date the application is
filed with the commission.
(c) If the other organization ceased or will cease
conducting bingo for the reason stated in Subsection (a)(2), the
commission must act on the joint application filed under Subsection
(a) not later than the 10th day after the date the application is
filed with the commission or the date on which the termination takes
effect, whichever is later.
(d) If the commission fails to act within the time provided
by Subsection (b) or (c), the licensed authorized organization may
act as if the change in premises or bingo occasions has been
approved by the commission and may conduct bingo at the new premises
or during the new bingo occasion until the commission acts on the
application.
(e) Notwithstanding Subsection (d), the commission may
issue temporary licenses to one or more licensed authorized
organizations that conduct bingo at the same location as an
organization that has ceased 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. The commission is not required to act on a joint
application under Subsection (a) within the time provided by this
section if the number of additional temporary licenses is
sufficient to allow the other organizations at the location to
conduct bingo during the licensed times of the organization that
has ceased or will cease to conduct bingo.
SECTION 7. Section 2001.152, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) Notwithstanding Subsection (a), the commission may
issue a commercial lessor license under Subsection (a)(2) or (3)
only if there is not a licensed commercial lessor whose premises is
located in the county in which an applicant for a license under
Subsection (a)(2) or (3) proposes to locate a bingo premises. This
subsection does not prohibit the renewal of an existing license.
This subsection expires September 1, 2005.
SECTION 8. Section 2001.158, Occupations Code, is amended
by adding Subsection (d) to read as follows:
(d) An applicant for a commercial lessor license shall pay
the fees established under Subsection (a) annually. An applicant
for a license or renewal of a license may 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 9. Section 2001.159(c), Occupations Code, is
amended to read as follows:
(c) Except as provided by Section 2001.158(d), the [The]
period may not exceed one year.
SECTION 10. Section 2001.214, Occupations Code, is amended
to read as follows:
Sec. 2001.214. LICENSE TERM. (a) Except as provided by
Subsection (b), a [A] manufacturer's or distributor's license is
effective for one year unless revoked or suspended by the
commission.
(b) A manufacturer or distributor may 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 11. Section 2001.218(a), Occupations Code, is
amended to read as follows:
(a) Each sale or lease of bingo supplies or equipment to a
license holder under this chapter must be on terms of immediate
payment or on terms requiring payment not later than the 30th day
after the date of actual delivery.
SECTION 12. Section 2001.307, Occupations Code, is amended
to read as follows:
Sec. 2001.307. MAXIMUM LICENSE TERM. Except as otherwise
provided by this chapter, a [A] license issued under this chapter
may not be effective for more than one year.
SECTION 13. Subchapter G, Chapter 2001, Occupations Code,
is amended by adding Sections 2001.313 and 2001.314 to read as
follows:
Sec. 2001.313. REGISTRY OF APPROVED BINGO WORKERS. (a) To
minimize duplicate criminal history background checks by the
commission and the costs incurred by organizations and individuals,
the commission shall maintain a registry of persons on whom the
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) A person listed in the registry may be involved in the
conduct of bingo or act as an operator at any location at which
bingo is lawfully conducted.
(c) The commission shall make the registry information
available to the public by publishing it on the commission's
website and by responding to telephone, e-mail, and facsimile
requests. This subsection does not require the commission to
disclose information that is confidential by law.
(d) A person who is not listed on the registry established
by this section may not act as an operator, manager, cashier, usher,
caller, or salesperson for a licensed authorized organization.
(e) The commission may refuse to add a person's name to, or
remove a person's name from, the registry established by this
section if, after notice and a hearing, the person is finally
determined to have:
(1) been convicted of an offense listed under Section
2001.105(b);
(2) converted bingo equipment in a premises to an
improper use;
(3) converted funds that are in, or that should have
been in, the bingo account of any licensed authorized organization;
(4) taken any action, individually or in concert with
another person, that affects the integrity of any bingo game to
which this chapter applies; or
(5) acted as an operator, manager, cashier, usher,
caller, or salesperson for a licensed authorized organization
without being listed on the registry established under this
section.
(f) A licensed authorized organization shall report to the
commission or its designee the discovery of any conduct on the part
of a person registered or required to be registered under this
section where there is substantial basis for believing that the
conduct would constitute grounds for removal of the person's name
from, or refusal to add the person's name to, the registry
established by this section. A statement made in good faith to the
commission or to an adjudicative body in connection with any such
report may not be the basis for an action for defamation of
character.
(g) A person who has been finally determined to have taken
action prohibited by Subsection (e)(2), (3), (4), or (5) cannot be
listed on the registry of approved bingo workers and cannot work as
a bingo worker for one year from the date of such determination.
Upon expiration of the one-year period, the person is eligible for
listing on the registry provided a licensee subject to this chapter
makes application to list the person. In such event, the commission
shall take into consideration the facts and circumstances that
occurred that led to the applicable action under Subsections
(e)(2)-(5) in deciding whether to list the person on the registry.
Sec. 2001.314. IDENTIFICATION CARD FOR APPROVED BINGO
WORKER. (a) The commission may 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 commission staff while the person is on duty
during the conduct of bingo. The commission by rule shall prescribe
the form and content of the card.
(b) The commission shall provide the identification card
and shall provide a form to be completed by a person that allows the
person to prepare the identification card. The commission shall
collect a reasonable charge to cover the cost of providing the card
or form.
(c) An identification card required by the commission under
this section to be worn by a person while on duty during the conduct
of bingo must be in substantial compliance with the form and content
requirements prescribed by the commission under this section.
(d) The commission may not require 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 14. Section 2001.411, Occupations Code, is amended
by adding Subsection (e) to read as follows:
(e) The commission may not prohibit an operator responsible
for conducting, promoting, or administering bingo from acting as a
bingo caller for a licensed authorized organization during a bingo
occasion. This subsection does not relieve the operator of the duty
to be available to a commission employee or bingo player if required
by this chapter.
SECTION 15. Subchapter I, Chapter 2001, Occupations Code,
is amended by adding Section 2001.4115 to read as follows:
Sec. 2001.4115. JOINT EMPLOYMENT OF BINGO EMPLOYEES. Two
or more licensed authorized organizations conducting bingo at the
same premises may jointly hire bingo employees. One organization
may act as the employee's employer and the other organization may
reimburse the employing organization for the other organization's
share of the employee's compensation and other employment-related
costs. A reimbursement under this section is an authorized expense
and must be made from the bingo account of the reimbursing
organization.
SECTION 16. Section 2001.413, Occupations Code, is amended
to read as follows:
Sec. 2001.413. ADMISSION CHARGE REQUIRED. Except as
provided by Section 2001.4155, a [A] licensed authorized
organization may not offer or provide to a person the opportunity to
play bingo without charge.
SECTION 17. Section 2001.415, Occupations Code, is amended
to read as follows:
Sec. 2001.415. ADVERTISEMENTS. (a) A person other than a
licensed authorized organization, licensed commercial lessor, or
the commission may not advertise bingo.
(b) A licensed authorized organization, licensed commercial
lessor, or the commission may include in an advertisement or
promotion the amount of a prize or series of prizes offered at a
bingo occasion.
SECTION 18. Subchapter I, Chapter 2001, Occupations Code,
is amended by adding Section 2001.4155 to read as follows:
Sec. 2001.4155. GIFT CERTIFICATES. (a) Nothing in this
chapter prohibits a licensed authorized organization from selling
or redeeming a gift certificate that entitles the bearer of the
certificate to play a bingo game, including instant bingo.
(b) A licensed authorized organization that sells or
redeems a gift certificate must keep adequate records relating to
the gift certificate as provided by commission rule.
SECTION 19. Chapter 2001, Occupations Code, is amended by
adding Subchapter I-1 to read as follows:
SUBCHAPTER I-1. UNIT ACCOUNTING
Sec. 2001.431. DEFINITIONS. In this subchapter:
(1) "Unit" means two or more licensed authorized
organizations that conduct bingo at the same location joining
together to share revenues, authorized expenses, and inventory
related to bingo operations.
(2) "Unit accounting" means a method by which licensed
authorized organizations that are members of a unit account for the
sharing of revenues, authorized expenses, and inventory related to
bingo operations.
(3) "Unit accounting agreement" means a written
agreement by all the licensed authorized organizations that are
members of a unit that contains, at a minimum:
(A) the taxpayer name and number of each licensed
authorized organization that is a member of the unit;
(B) the method by which the net proceeds of the
bingo operations of the unit will be apportioned among the members
of the unit;
(C) the name of the unit manager or designated
agent of the unit; and
(D) the methods by which the unit may be
dissolved and by which one or more members of the unit may withdraw
from participation in the unit, including the distribution of
funds, records, and inventory and the allocation of authorized
expenses and liabilities on dissolution or withdrawal of one or
more members of the unit.
(4) "Unit manager" means an individual licensed under
this subchapter to be responsible for the revenues, authorized
expenses, and inventory of a unit.
Sec. 2001.432. FORMING ACCOUNTING UNIT. (a) Two or more
licensed authorized organizations may form and operate a unit as
provided by this subchapter by:
(1) executing a unit accounting agreement; and
(2) stating in the unit accounting agreement whether
the unit will use:
(A) a unit manager; or
(B) a designated agent.
(b) More than one unit may be formed at a single location. A
licensed authorized organization may not be a member of more than
one unit.
(c) This subchapter does not require a licensed authorized
organization to join a unit. Except as provided by Subsection (d),
whether to join or withdraw from a unit is at the discretion of each
licensed authorized organization.
(d) The members of a unit may determine whether to allow
another licensed authorized organization to join the unit. The
terms of the withdrawal of a member from the unit are governed by
the unit accounting agreement.
Sec. 2001.433. APPLICABILITY OF CHAPTER. 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) Each licensed
authorized organization that is a member of a unit shall conduct its
bingo games separately from the bingo games of the other members of
the unit.
(b) A unit may purchase or lease bingo supplies and
equipment in the same manner as a licensed authorized organization.
(c) A licensed distributor may 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) A unit:
(1) shall establish and maintain one checking account
designated as the unit's bingo account;
(2) shall maintain one inventory of bingo supplies and
equipment for use in the bingo operations of members of the unit;
and
(3) may maintain an interest-bearing savings account
designated as the unit's bingo savings account.
(b) Each member of a unit shall 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).
The deposit shall be made not later than the next business day after
the day of the bingo occasion on which the receipts were obtained.
(c) All authorized expenses and distributions of the unit
and its members shall be paid from the unit's bingo checking
account.
Sec. 2001.436. DISBURSEMENT OF FUNDS BY DISSOLVED UNIT.
(a) Sections 2001.457(a) and (b) apply to a unit formed under this
subchapter. For purposes of this subchapter, the requirements of
Sections 2001.457(a) and (b) that are applicable to a licensed
authorized organization shall be applied to a unit.
(b) A unit that has dissolved for any reason and has
unexpended bingo funds shall 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) For purposes of the application of Sections 2001.457(a)
and (b) to a unit under this section:
(1) "Adjusted gross receipts" means gross receipts
less the amount of cost of goods purchased by a unit and prizes paid
in the preceding quarter; and
(2) "Cost of goods purchased by a unit" means the cost
of bingo paper and pull-tab bingo tickets purchased by the unit and
payments to distributors for electronic cardminding devices.
Sec. 2001.437. UNIT MANAGER; LICENSE. (a) If the unit
accounting agreement of a unit states that a unit manager is
responsible for compliance with commission rules and this chapter,
the unit manager is responsible for:
(1) the filing of one quarterly report for the unit on
a form prescribed by the commission; and
(2) the payment of taxes and fees and the maintenance
of the bingo inventory and financial records of the unit.
(b) A unit with a unit manager shall notify the commission
of the name of the unit manager and immediately notify the
commission of any change of unit manager.
(c) A person may not provide services as a unit manager to
licensed authorized organizations that form a unit unless the
person holds a unit manager license under this subchapter. 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) An applicant for a unit manager license must file with
the commission a written application on a form prescribed by the
commission that includes:
(1) the name and address of the applicant;
(2) information regarding whether the applicant, or
any officer, director, or employee of the applicant, has been
convicted of a felony, criminal fraud, gambling or gambling-related
offense, or crime of moral turpitude; and
(3) any other information required by commission rule.
(e) The commission by rule shall 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) A person who holds a unit manager license shall post a
bond or other security pursuant to Section 2001.514.
(g) 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:
(1) has been convicted of a felony, criminal fraud, a
gambling or gambling-related offense, or crime of moral turpitude,
if less than 10 years has elapsed since the termination of a
sentence, parole, or community supervision served for the offense;
(2) is an owner, officer, or director of a licensed
commercial lessor, is employed by a licensed commercial lessor, or
is related to a licensed commercial lessor within the second degree
by consanguinity or affinity, unless the holder of the license is a
licensed authorized organization or an association of licensed
authorized organizations; or
(3) holds or is listed on another license under this
chapter, unless the holder of the license is a licensed authorized
organization or an association of licensed authorized
organizations.
(h) A unit manager must complete the training required by
Section 2001.107.
Sec. 2001.438. AGREEMENT WITHOUT UNIT MANAGER. (a) This
section applies to a unit if the unit accounting agreement for the
unit:
(1) does not state that a unit manager will be
responsible for compliance with the rules of the commission and
this chapter; or
(2) states that the unit will use a designated agent.
(b) The unit shall designate with the commission an agent
who will be responsible for providing the commission access to all
inventory and financial records of the unit on request of the
commission.
(c) The agent designated under Subsection (b) may not:
(1) hold or be listed on another license issued under
this chapter, unless the holder of the license is a licensed
authorized organization or an association of licensed authorized
organizations; or
(2) be an owner, officer, or director of a licensed
commercial lessor, be employed by a licensed commercial lessor, or
be related to a licensed commercial lessor within the second degree
by consanguinity or affinity, unless the holder of the license is a
licensed authorized organization or an association of licensed
authorized organizations.
(d) The unit shall immediately notify the commission of any
change in the agent designated under Subsection (b).
(e) The designated agent must complete the training
required by Section 2001.107.
(f) Each licensed authorized organization that is a member
of the unit shall be jointly and severally liable for:
(1) compliance with the requirements of this
subchapter and the rules of the commission relating to the filing of
required reports;
(2) the maintenance of bingo inventory and financial
records; and
(3) the payment of taxes, fees, and any penalties
imposed for a violation of this subchapter or commission rules
related to the operations of the unit.
(g) Each licensed authorized organization that is a member
of the unit may be made a party to any administrative or judicial
action relating to the enforcement of this subchapter or the rules
of the commission pertaining to the operation of the unit.
Sec. 2001.439. TRUST AGREEMENT. (a) Notwithstanding any
other provision of this subchapter, a unit may be formed pursuant to
a trust agreement between two or more licensed authorized
organizations that conduct bingo at the same location. The
agreement must:
(1) designate one of the organizations as the trustee;
(2) designate a person who will carry out the duties
described by Section 2001.438(b);
(3) specify the method by which the unit will comply
with the requirements of Section 2001.436(a); and
(4) state that the trustee is responsible for
compliance with the rules of the commission and this chapter.
(b) The commission by rule may 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) The commission may prohibit a person who serves as a
designated agent that is listed on a license under this chapter,
including having been approved by the 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 20. Section 2001.451, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) A licensed authorized organization shall deposit in the
bingo account all funds derived from the conduct of bingo, less the
amount awarded as cash prizes under Sections 2001.420(a) and (b).
Except as provided by Subsection (b-1), a [A] deposit must be made
not later than the next business day after the day of the bingo
occasion on which the receipts were obtained.
(b-1) A licensed authorized organization may 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.
SECTION 21. Section 2001.454, Occupations Code, is amended
to read as follows:
Sec. 2001.454. USE OF NET PROCEEDS FOR CHARITABLE PURPOSES.
(a) A licensed authorized organization shall devote to the [a]
charitable purposes of the organization [purpose] its net proceeds
of bingo and any rental of premises.
(b) Except as otherwise provided by law, the [The] net
proceeds derived from bingo and any rental of premises are
dedicated to the [a] charitable purposes of the organization
[purpose] only if directed to a cause, deed, or activity that is
consistent with the federal tax exemption the organization obtained
under 26 U.S.C. Section 501 and under which the organization
qualifies as a nonprofit organization as defined by Section
2001.002[:
[(1) benefits an indefinite number of needy or
deserving persons in this state by:
[(A) enhancing their opportunity for religious
or educational advancement;
[(B) relieving them from disease, suffering, or
distress;
[(C) contributing to their physical well-being;
[(D) assisting them in establishing themselves
in life as worthy and useful citizens; or
[(E) increasing their comprehension of and
devotion to the principles on which this nation was founded and
enhancing their loyalty to their government; or
[(2) initiates, performs, or fosters worthy public
works in this state or enables or furthers the erection or
maintenance of public structures in this state]. If the
organization is not required to obtain a federal tax exemption
under 26 U.S.C. Section 501, the organization's net proceeds are
dedicated to the charitable purposes of the organization only if
directed to a cause, deed, or activity that is consistent with the
purposes and objectives for which the organization qualifies as an
authorized organization under Section 2001.002.
SECTION 22. Section 2001.458(a), Occupations Code, is
amended to read as follows:
(a) An item of expense may not be incurred or paid in
connection with the conduct of bingo except an expense that is
[those expenses that are] reasonable or necessary to conduct bingo,
including an expense [and necessarily expended] for:
(1) advertising, including the cost of printing bingo
gift certificates;
(2) security;
(3) repairs to premises and equipment;
(4) bingo supplies and equipment;
(5) prizes;
(6) stated rental or mortgage and insurance expenses;
(7) bookkeeping, legal, or accounting services
related to bingo;
(8) fees [in amounts authorized by the commission] for
callers, cashiers, ushers, janitorial services, and utility
supplies and services; [and]
(9) license fees;
(10) attending a bingo seminar or convention required
under Section 2001.107; and
(11) debit card transaction fees.
SECTION 23. Section 2001.459(a), Occupations Code, 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 callers, cashiers, and ushers;
(8) janitorial services;
(9) license fees; and
(10) payment for services provided by a system service
provider.
SECTION 24. Section 2001.504(a), Occupations Code, is
amended to read as follows:
(a) 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 commission quarterly on or before the
25th [15th] day of the month succeeding each calendar quarter.
SECTION 25. Section 2001.602(b), Occupations Code, is
amended to read as follows:
(b) In determining the amount of the penalty, the
[executive] director shall consider:
(1) the seriousness of the violation, including the
nature, circumstances, extent, and gravity of the prohibited acts;
(2) the history of previous violations;
(3) the amount necessary to deter future violations;
(4) efforts to correct the violation; and
(5) any other matter that justice may require.
SECTION 26. Sections 2001.603(a) and (b), Occupations Code,
are amended to read as follows:
(a) If, after investigating a possible violation and the
facts surrounding that possible violation, the [executive]
director determines that a violation has occurred, the [executive]
director may issue a violation report stating the facts on which the
conclusion that a violation occurred is based, recommending that an
administrative penalty be imposed on the person alleged to have
committed the violation, and recommending the amount of the
proposed penalty. The [executive] director shall base the
recommended amount of the proposed penalty on the seriousness of
the violation determined by consideration of the factors set out in
Section 2001.602(b).
(b) Not later than the 14th day after the date on which the
report is issued, the [executive] director shall give written
notice of the report to the person alleged to have committed the
violation.
SECTION 27. Section 2001.604, Occupations Code, is amended
to read as follows:
Sec. 2001.604. PENALTY TO BE PAID OR HEARING REQUESTED.
(a) Not later than the 20th day after the date the person receives
the notice, the person may:
(1) accept the recommendation of the [executive]
director, including the recommended administrative penalty; or
(2) make a written request for a hearing on the
determination.
(b) If the person accepts the [executive] director's
determination, the [executive] director by order shall approve the
determination and impose the proposed penalty.
SECTION 28. Section 2001.605(a), Occupations Code, is
amended to read as follows:
(a) If the person timely requests a hearing or does not
respond to the notice in the time provided by Section 2001.604(a),
the [executive] director shall set a hearing and give notice of the
hearing to the person.
SECTION 29. Section 2001.606, Occupations Code, is amended
to read as follows:
Sec. 2001.606. DECISION BY [EXECUTIVE] DIRECTOR. (a)
Based on the findings of fact and conclusions of law and the
recommendations of the hearings examiner, the [executive] director
by order:
(1) may find that a violation has occurred and may
impose an administrative penalty; or
(2) may find that a violation has not occurred.
(b) The [executive] director shall give notice of the order
to the person. The notice must include:
(1) separate statements of the findings of fact and
conclusions of law;
(2) the amount of any penalty imposed;
(3) a statement of the right of the person to judicial
review of the order; and
(4) other information required by law.
SECTION 30. Sections 2001.607(b) and (c), Occupations Code,
are amended to read as follows:
(b) Within the 30-day period, a person who acts under
Subsection (a)(3) may:
(1) stay enforcement of the penalty by:
(A) paying the penalty to the court for placement
in an escrow account; or
(B) giving to the court a supersedeas bond
approved by the court for the amount of the penalty that is
effective until all judicial review of the order is final; or
(2) request the court to stay enforcement of the
penalty by:
(A) filing with the court a sworn affidavit of
the person stating that the person is financially unable to pay the
penalty and is financially unable to give the supersedeas bond; and
(B) giving a copy of the affidavit to the
[executive] director by certified mail.
(c) On receipt of a copy of the affidavit as provided by
Subsection (b)(2), the [executive] director may file with the
court, not later than the fifth day after the date the copy is
received, a contest to the affidavit. The court shall hold a
hearing on the facts alleged in the affidavit as soon as practicable
and shall stay the enforcement of the penalty on finding that the
alleged facts are true. The person who files an affidavit has the
burden of proving that the person is financially unable to pay the
penalty and to give a supersedeas bond.
SECTION 31. Section 2001.608, Occupations Code, is amended
to read as follows:
Sec. 2001.608. COLLECTION OF PENALTY. If the person does
not pay the administrative penalty and the enforcement of the
penalty is not stayed, the [executive] director may refer the
matter to the attorney general for collection of the penalty.
SECTION 32. Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3105 to read as follows:
Sec. 151.3105. BINGO EQUIPMENT PURCHASED BY CERTAIN
ORGANIZATIONS. Bingo equipment, as defined by Section 2001.002,
Occupations Code, is exempted from the taxes imposed by this
chapter if the bingo equipment is:
(1) purchased by an organization licensed to conduct
bingo under Chapter 2001, Occupations Code, that is exempt from the
payment of federal income taxes under Section 501(a), Internal
Revenue Code of 1986, as amended, by being listed as an exempt
organization under Section 501(c)(3), (4), (8), (10), or (19),
Internal Revenue Code of 1986, as amended; and
(2) used exclusively to conduct bingo authorized under
Chapter 2001, Occupations Code.
SECTION 33. Section 2001.409(b), Occupations Code, is
repealed.
SECTION 34. (a) 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 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 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 2001, Occupations
Code, as amended by this Act.
(b) 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.
(c) An authorized organization licensed to conduct bingo
before the effective date of this Act may renew its license,
notwithstanding that the organization has not been in existence for
the time required under a rule of the Texas Lottery Commission
adopted under Section 2001.101, Occupations Code, if the
organization meets all other requirements for the renewal of the
license.
SECTION 35. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2003.
(b) Section 151.3105, Tax Code, as added by this Act, takes
effect January 1, 2004.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2519 was passed by the House on May 8,
2003, by a non-record vote; and that the House concurred in Senate
amendments to H.B. No. 2519 on May 30, 2003, by a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2519 was passed by the Senate, with
amendments, on May 28, 2003, by the following vote: Yeas 30, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor