78R18200 YDB-D
By: Jackson S.B. No. 270
Substitute the following for S.B. No. 270:
By: Wilson C.S.S.B. No. 270
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Lottery
Commission.
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. Subchapter B, Chapter 466, Government Code, is
amended by adding Section 466.026 to read as follows:
Sec. 466.026. 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 4. 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 5. 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 6. Sections 466.101(a) and (b), Government Code,
are amended 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.
SECTION 7. 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 8. 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 9. 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:
(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 common roof or
common foundation described by Subparagraph (i) [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
(5) has violated this chapter or a rule adopted under
this chapter.
SECTION 10. 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 11. 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 12. 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 13. 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 14. Section 466.355, Government Code, is amended by
adding Subsections (d) and (e) 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.
(e) In addition to the amounts allocated by Subsection (b),
$500,000 is allocated from the state lottery account in each fiscal
biennium to the comptroller to provide grants to residents of this
state to pay the costs of attending a public junior college, public
technical institute, or public state college, as those terms are
defined by Section 61.003, Education Code. The comptroller by rule
shall provide for the administration of the grants as the
comptroller determines appropriate to effectively support
deserving students pursuing a post-secondary education. The rules
must provide for:
(1) eligibility of a person for a grant;
(2) academic performance requirements for continued
eligibility for a grant; and
(3) the amount of a grant.
SECTION 15. 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 16. 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 17. Chapter 466, Government Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. PARTICIPATION IN MULTIJURISDICTION
LOTTERY GAME
Sec. 466.451. MULTIJURISDICTION AGREEMENT AUTHORIZED. The
commission may enter into a written agreement with the appropriate
officials of one or more other states or other jurisdictions,
including foreign countries, to participate in the operation,
marketing, and promotion of a multijurisdiction lottery game or
games. The commission may adopt rules relating to a
multijurisdiction lottery game or games.
Sec. 466.452. REVENUE FROM MULTIJURISDICTION LOTTERY. (a)
Except as provided by this section, revenue received from the sale
of tickets in this state for a multijurisdiction lottery game is
subject to Subchapter H.
(b) The commission may deposit a portion of the revenue
received from the sale of multijurisdiction lottery game tickets in
this state into a fund shared with other parties to an agreement
under this subchapter for the payment of prizes awarded in
multijurisdiction lottery games in which the commission
participates. The commission may retain that revenue in the fund
for as long as necessary to pay prizes claimed during the period
designated for claiming a prize in the multijurisdiction lottery
game.
Sec. 466.453. PAYMENT OF COSTS AUTHORIZED. The commission
may share in the payment of costs associated with participating in
multijurisdiction lottery games.
SECTION 18. Section 467.002, Government Code, 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, and Chapter 2001, Occupations Code,
expire [Act expires] September 1, 2015 [2003].
SECTION 19. 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 20. 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 21. 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 22. 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 23. 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 24. 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 25. 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 26. 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 27. 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 28. Subchapter C, Chapter 467, Government Code, is
amended by adding Section 467.1015 to read as follows:
Sec. 467.1015. COMMISSION EMPLOYEES. The commission may
employ other personnel as necessary, including executive
assistants, to perform the duties of the commission. A commission
employee is exempt from Chapter 654. The commission shall set the
salaries of personnel employed under this section.
SECTION 29. 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 30. 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 31. 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 32. 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 33. 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 34. Sections 2001.002(5) and (6), Occupations Code,
are amended 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) [(v)] 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].
(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].
SECTION 35. 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 and to apply new technology to bingo games.
SECTION 36. 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 37. 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 38. 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 director of bingo operations an advisory opinion regarding
compliance with this chapter and the rules of the commission
relating to the enforcement or administration of this chapter. An
advisory opinion is not subject to the rulemaking provisions of
Chapter 2001, Government Code.
(b) The director of bingo operations shall respond to a
request under Subsection (a) not later than the 30th day after the
date a request is received, unless the director requests an opinion
on the matter from the attorney general or determines the request
does not contain sufficient facts to provide an answer on which the
requestor may rely. In that event, the director shall request
additional information from the requestor not later than the 10th
day after the date the request is received. If the director
requests additional information, the director shall 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) 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.
SECTION 39. 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 40. 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 41. 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 42. 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 43. Section 2001.105, Occupations Code, is amended
by amending Subsection (b) and adding Subsections (c) and (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.
(c) 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).
(d) Except as provided by Section 2001.104(d), a license
issued under this subchapter is effective for one year.
SECTION 44. 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 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 ceased or will cease to conduct bingo.
SECTION 45. 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 46. Section 2001.152, Occupations Code, is amended
to read as follows:
Sec. 2001.152. ELIGIBILITY. [(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].
[(b) Notwithstanding Subsection (a), a person who was a
licensed commercial lessor on June 10, 1989, whose license has been
in effect continuously since that date, and who is otherwise
eligible for the license may renew the license.]
SECTION 47. 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 48. 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 49. 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 50. 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 51. 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 52. 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 53. 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 54. 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 55. 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 56. 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 57. 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 58. 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 59. 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 60. 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 61. 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 62. 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 63. 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 and that join
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 card-minding devices.
Sec. 2001.437. UNIT MANAGER; LICENSE. (a) If a unit
accounting agreement for a unit states a unit manager is
responsible for compliance with commission rules and this chapter,
the unit manager is responsible for:
(1) filing with the commission a quarterly report for
the unit on a form prescribed by the commission; and
(2) paying taxes and fees and maintaining the bingo
inventory and financial records for 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 by 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:
(1) designate an individual as its agent, who will be
responsible for providing the commission access to all inventory
and financial records of the unit on request of the commission; and
(2) notify the commission of the name of the
individual designated under Subdivision (1).
(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 64. Section 2001.451, Occupations Code, is amended
by amending Subsection (b) and adding Subsections (b-1), (g), and
(h) 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 must 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) 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 65. 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 provided by Section
501(c), Internal Revenue Code of 1986, under which the organization
qualifies as a nonprofit organization as defined by Section
2001.002 or, for a licensed authorized organization other than a
nonprofit organization, is consistent with the federal tax
exemption provided by Section 501, Internal Revenue Code of 1986,
under which the organization is exempt from federal income taxes
and with the purposes and objectives for which the organization
qualifies as an authorized organization[:
[(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].
SECTION 66. 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 67. Section 2001.458, Occupations Code, is amended
by amending Subsection (a) and adding Subsection (c) 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) repair or maintenance of [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
licensed callers, licensed cashiers, licensed ushers, sales
personnel, janitorial services, and utility supplies and services;
[and]
(9) license fees;
(10) attending a bingo seminar or convention required
under Section 2001.107;
(11) debit card transaction fees; and
(12) a salary for a manager to act as the operator
responsible for conducting, promoting, or administering bingo.
(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 68. 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 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 69. 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 70. 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 71. 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 72. 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 73. 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 74. 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 75. Section 466.003, Government Code, and Sections
2001.057(b), 2001.305, 2001.355, 2001.356, 2001.409(b), and
2001.416(d), Occupations Code, are repealed.
SECTION 76. (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 Subchapters C-1 and I-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 466.026, 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.
SECTION 77. (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
September 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 September 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 September 1, 2003. A complaint filed with the
commission or a division of the commission before September 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 78. (a) As soon as practicable after the effective
date of this Act, the Texas Lottery Commission shall adopt the rules
necessary to implement multijurisdiction lottery games in
accordance with Subchapter J, Chapter 466, Government Code, as
added by this Act.
(b) The Texas Lottery Commission may adopt an emergency rule
under Subsection (a) of this section without prior notice or
hearing, or with any abbreviated notice and hearing as the
commission finds practicable, for the implementation of the change
in law made by Subchapter J, for multijurisdiction lottery games,
Chapter 466, Government Code. Section 2001.034, Government Code,
does not apply to an emergency rule adopted under this section.
(c) Notwithstanding any law to the contrary, including any
law enacted during the 78th Legislature, Regular Session, 2003, to
promptly implement Subchapter J, Chapter 466, Government Code, as
added by this Act, a contract for the acquisition or provision of
facilities, supplies, equipment, materials, or services related to
the initial operation of multijurisdiction lottery games under
these subchapters is not subject to:
(1) Subtitle D, Title 10, Government Code;
(2) Section 466.101, Government Code;
(3) Chapter 2161, Government Code; or
(4) any competitive bidding requirements or contract
requirements provided by any other law or by rules of the Texas
Lottery Commission.
SECTION 79. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.