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.