84R25603 YDB-D
 
  By: Thompson of Harris H.B. No. 2642
 
  Substitute the following for H.B. No. 2642:
 
  By:  Geren C.S.H.B. No. 2642
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the transfer of the licensing and regulation of
  charitable bingo to the Texas Department of Licensing and
  Regulation and regulation by counties of amusement redemption
  machine game rooms on bingo premises; requiring an occupational
  permit; authorizing fees and taxes; creating civil and
  administrative penalties; increasing a criminal penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. REGULATION OF CHARITABLE BINGO
         SECTION 1.001.  Section 2001.002, Occupations Code, is
  amended by amending Subdivisions (8), (13), (18), and (25-a) and
  adding Subdivisions (8-a) and (9-a) to read as follows:
               (8)  "Commission" means the Texas [Lottery] Commission
  of Licensing and Regulation.
               (8-a)  "Department" means the Texas Department of
  Licensing and Regulation.
               (9-a)  "Executive director" means the executive
  director of the department.
               (13)  "Gross gaming revenue [receipts]" means the total
  amount received from the sale, rental, transfer, or use of bingo
  cards and entrance fees charged at premises at which bingo is
  conducted less the amount of cash prizes paid to winners of bingo
  games.
               (18)  "Net proceeds" means:
                     (A)  in relation to the total [gross] receipts
  from the conduct of bingo during one or more bingo occasions, the
  amount remaining after deducting the reasonable sums necessarily
  and actually expended for expenses under Section 2001.458 and the
  tax [fee] on prizes under Section 2001.502; and
                     (B)  in relation to the gross rent or other
  consideration received by a licensed authorized organization for
  the use of its premises, fixtures, or equipment by another license
  holder, the amount remaining after deducting the reasonable sums
  necessarily and actually expended for any janitorial services and
  utility supplies directly attributable to the use of the premises,
  fixtures, or equipment.
               (25-a)  "Regular license" means a license to conduct
  bingo that is issued by the department [commission] and that
  expires on the first [or second] anniversary of the date of issuance
  unless revoked or suspended before that date by the department
  [commission.  The term includes an annual license].
         SECTION 1.002.  The heading to Subchapter B, Chapter 2001,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER B. [COMMISSION] POWERS AND DUTIES
         SECTION 1.003.  The heading to Section 2001.051, Occupations
  Code, is amended to read as follows:
         Sec. 2001.051.  CONTROL AND SUPERVISION OF BINGO[; BINGO
  DIVISION].
         SECTION 1.004.  Sections 2001.051(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  The department [commission] shall administer this
  chapter.
         (b)  The commission has broad authority and shall exercise
  [strict] control and close supervision over all bingo conducted in
  this state so that bingo is fairly conducted and the proceeds
  derived from bingo are used for an authorized purpose.
         SECTION 1.005.  Section 2001.053, Occupations Code, is
  amended to read as follows:
         Sec. 2001.053.  OFFICERS AND INVESTIGATORS. The executive
  director [commission] may employ officers or investigators the
  executive director [commission] considers necessary to administer
  this chapter.
         SECTION 1.006.  Sections 2001.056(b), (c), (d), and (e),
  Occupations Code, are amended to read as follows:
         (b)  A license holder may not use or distribute a bingo card
  unless the card has been approved by the department [commission].
         (c)  The executive director or commission may set the price
  or adopt a schedule of prices for the sale or provision of bingo
  cards by a licensed authorized organization.
         (d)  A licensed authorized organization may not sell or
  provide a bingo card at a price other than a price authorized by the
  executive director or commission or a schedule adopted by the
  executive director or commission.
         (e)  The commission by rule may require a licensed authorized
  organization to notify the department [commission] of the price for
  bingo cards the organization will use for one or more reporting
  periods.
         SECTION 1.007.  Section 2001.057, Occupations Code, is
  amended to read as follows:
         Sec. 2001.057.  BINGO ADVISORY COMMITTEE AND ADVICE FOR
  COMMISSION.  (a)  The commission shall [may] appoint a bingo
  advisory committee consisting of nine members. The commission
  shall appoint members representing a balance of interests including
  representatives of:
               (1)  the public;
               (2)  charities that operate bingo games; [and]
               (3)  commercial and charity lessors that participate in
  the bingo industry;
               (4)  distributors; and
               (5)  manufacturers.
         (c)  An advisory [A] committee member serves at the pleasure
  of the presiding officer of the commission.
         (d)  An advisory [A] committee member is not entitled to
  receive compensation for serving as a member. A [committee] member
  is entitled to reimbursement for reasonable expenses incurred in
  performing duties as a member subject to the availability of funds
  and applicable limitations of the General Appropriations Act.
         (e)  The advisory committee, executive director, and
  department may:
               (1)  advise the commission on the needs and problems of
  the state's bingo industry;
               (2)  comment on rules involving bingo during their
  development and before final adoption unless an emergency requires
  immediate action by the commission; and
               (3)  [report annually to the commission on the
  committee's activities; and
               [(4)]  perform other duties as determined by the
  commission or executive director.
         (f)  The advisory committee may meet [quarterly or] at the
  executive director's or the presiding officer's [commission's]
  request.
         [(g)     The commission may adopt rules to govern the operations
  of the committee.]
         SECTION 1.008.  Section 2001.059(f), Occupations Code, is
  amended to read as follows:
         (f)  The commission may delegate all or part of the authority
  and procedures for issuing advisory opinions under this section to
  an employee of the department [commission].
         SECTION 1.009.  Sections 2001.060(a) and (c), Occupations
  Code, are amended to read as follows:
         (a)  On or before June 1 of each even-numbered year, the
  department [commission] shall prepare and deliver to the governor,
  the lieutenant governor, the speaker of the house of
  representatives, and the chairs of the standing committees of the
  senate and house of representatives with primary jurisdiction over
  charitable bingo a report stating for each of the preceding two
  calendar years:
               (1)  the total amount of [adjusted] gross gaming
  revenue [receipts] reported by licensed authorized organizations
  from their bingo operations;
               (2)  the total amount of net proceeds reported by
  licensed authorized organizations from their bingo operations; and
               (3)  a comparison of the amounts reported under
  Subdivisions (1) and (2), including the percentage that the net
  proceeds represents of the [adjusted] gross gaming revenue
  [receipts].
         (c)  For purposes of Subsection (a), the department 
  [commission] shall determine the total amount of net proceeds in a
  manner that does not reduce gross gaming revenue [receipts] by the
  amount of rent paid for the rental of bingo premises by a licensed
  authorized organization to another licensed authorized
  organization if the other organization pays rent for the premises
  to a licensed commercial lessor.
         SECTION 1.010.  Section 2001.061, Occupations Code, is
  amended to read as follows:
         Sec. 2001.061.  LICENSE RENEWAL PROCESS.  The commission
  shall adopt rules governing each part of the license renewal
  process for all licenses issued under this chapter, from
  application submission to completion of the renewal process.  [The
  process must require a license holder renewing a license to submit
  to the commission the information required in the initial license
  application.]
         SECTION 1.011.  Section 2001.101(a), Occupations Code, is
  amended to read as follows:
         (a)  The department [commission] may license a person who is
  an authorized organization eligible for a license to conduct bingo
  if the person is:
               (1)  a religious society that has existed in this state
  for at least three 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)  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)  must have been affiliated with a state
  or national organization organized to perform the same purposes as
  the nonprofit organization;
               (3)  a fraternal organization that has been organized
  in this state for at least three years;
               (4)  a veterans organization that has existed in this
  state for at least three years;
               (5)  a volunteer fire department that has existed in
  this state for at least three years; or
               (6)  a volunteer emergency medical services provider
  that has existed in this state for at least three years.
         SECTION 1.012.  Sections 2001.102(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  An applicant for a license to conduct bingo must file
  with the department [commission] an application on a form
  prescribed by the department [commission].
         (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)  a statement that the net proceeds of bingo will go
  to one or more of the authorized charitable purposes under this
  chapter;
               (6)  a designation of the applicant organization's
  bingo chairperson under whom bingo will be conducted accompanied by
  a statement signed by the chairperson stating that the chairperson
  will be responsible for the conduct of bingo under the terms of the
  license and this chapter;
               (7)  sufficient facts relating to the applicant's
  incorporation and organization to enable the department
  [commission] to determine whether the applicant is an authorized
  organization;
               (8)  [a copy of] the applicant organization's most
  recently filed Internal Revenue Service Form 990, if applicable;
               (9)  a letter of good standing from the applicant
  organization's parent organization, if the organization receives
  an exemption from federal income taxes as a member of a group of
  organizations;
               (10)  [copies of] the applicant organization's
  organizing instruments, including any bylaws, constitution,
  charter, and articles of incorporation;
               (11)  verification of the applicant organization's good
  standing with the secretary of state if the organization is
  organized under the law of this state; and
               (12)  information necessary to conduct criminal
  background checks on the applicant organization's officers and
  directors.
         SECTION 1.013.  Sections 2001.103(a), (c), (f), and (g),
  Occupations Code, are amended to read as follows:
         (a)  An authorized organization may receive a temporary
  license to conduct bingo by filing with the department [commission]
  an application, on a form and in the manner prescribed by the
  department [commission], accompanied by a $25 license fee.
         (c)  An organization may not receive more than 24 [six]
  temporary licenses in the 12-month period following the issuance or
  renewal of the organization's license to conduct bingo [a calendar
  year].
         (f)  An authorized organization that holds an annual [a
  regular] license to conduct bingo may apply for all or any portion
  of the total number of temporary licenses to which the organization
  is entitled under Subsection (c) [(e)] in one application without
  stating the days or times for which the organization will use the
  temporary licenses.
         (g)  An organization that has been issued a temporary license
  under Subsection (f) shall notify the department [commission] of
  the specific date and time of the bingo occasion for which the
  temporary license will be used before using the license. [If the
  commission receives the notification by noon of the day before the
  day the temporary license will be used, the commission shall verify
  receipt of the notice before the end of the business day on which
  the notice is received. If the commission does not receive the
  notification by noon of the day before the day the temporary license
  will be used, the commission shall verify receipt of the notice
  before noon of the business day that follows the day the commission
  received the notice.]
         SECTION 1.014.  Sections 2001.104(a), (d), and (e),
  Occupations Code, are amended to read as follows:
         (a)  The commission by rule shall set the fees for a license
  to conduct bingo based on the amount of the licensed authorized
  organization's total receipts derived from the conduct of bingo and 
  in an amount reasonable to defray the department's administrative
  costs but not less than the following:
               (1)  Class A (annual [gross] receipts of not more than
  $75,000)-$300 [$25,000 or less)-$100];
               (2)  Class B (annual [gross] receipts of more than
  $75,000 [$25,000] but not more than $200,000)-$900 
  [$50,000)-$200];
               (3)  Class C (annual [gross] receipts of more than
  $200,000 [$50,000] but not more than $400,000)-$2,000 
  [$75,000)-$300]; and
               (4)  Class D (annual [gross] receipts of more than
  [$75,000 but not more than $100,000)-$400;
               [(5)     Class E (annual gross receipts of more than
  $100,000 but not more than $150,000)-$600;
               [(6)     Class F (annual gross receipts of more than
  $150,000 but not more than $200,000)-$900;
               [(7)     Class G (annual gross receipts of more than
  $200,000 but not more than $250,000)-$1,200;
               [(8)     Class H (annual gross receipts of more than
  $250,000 but not more than $300,000)-$1,500;
               [(9)     Class I (annual gross receipts of more than
  $300,000 but not more than $400,000)-$2,000; and
               [(10)  Class J (annual gross receipts of more than]
  $400,000)-$2,500.
         (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.]
         (e)  A licensed authorized organization may pay in advance,
  or establish an escrow account with the department [commission] to
  cover, fees assessed under this chapter for the amendment of a
  license or issuance of a temporary license.
         SECTION 1.015.  Section 2001.105, Occupations Code, is
  amended to read as follows:
         Sec. 2001.105.  LICENSE ISSUANCE OR RENEWAL; DISCIPLINARY
  ACTION FOR CERTAIN CONVICTIONS.  (a)  The department [commission]
  shall issue or renew a license to conduct bingo on payment of the
  license fee provided by Section 2001.104 if the department
  [commission] determines that:
               (1)  the member or members of the applicant designated
  in the application to conduct bingo are active members of the
  applicant;
               (2)  the bingo is to be conducted in accordance with
  this chapter;
               (3)  the proceeds of the bingo are to be disposed in
  accordance with this chapter;
               (4)  the applicant has made and can demonstrate
  significant progress toward the accomplishment of the purposes of
  the organization during the 12 months preceding the date of
  application for a license or license renewal; and
               (5)  all persons who will conduct, promote, or
  administer the proposed bingo are active members of the applicant
  organization and all other persons who will assist in conducting,
  promoting, or administering the proposed bingo games are persons
  authorized [to do so] by the applicant [Section 2001.411; and
               [(6)     no person under whose name bingo will be
  conducted and no person working at the proposed bingo has been
  convicted of a gambling offense or criminal fraud].
         (b)  The department [commission] may not issue a license to
  an authorized organization to conduct bingo if an officer or member
  of the board of directors of the organization, or a person under
  whose name bingo will be conducted, has been convicted of criminal
  fraud or a gambling or gambling-related offense.
         (b-1)  The department may not take disciplinary action
  against a licensed authorized organization that has on file for a
  person described by Subsection (b) or an organization employee a
  criminal history records check, conducted by a local law
  enforcement agency or the Department of Public Safety, that does
  not contain a record of a conviction for an offense described by
  that subsection. If the department conducts a criminal history
  records check on the person or employee that contains a record of a
  conviction for an offense described by that subsection:
               (1)  the department shall immediately notify the
  organization of the conviction; and
               (2)  the organization is prohibited from allowing the
  person or employee to conduct bingo for the organization after
  receipt of the notification.
         (b-2)  The department may take disciplinary action against
  an organization that allows a person described by Subsection (b) or
  organization employee to conduct bingo for the organization after
  the date the organization receives the notification required under
  Subsection (b-1)(1). 
         (c)  A [Except as provided by Section 2001.104(d), a] license
  issued under this subchapter is effective for one year.
         SECTION 1.016.  Sections 2001.107(b) and (c), Occupations
  Code, are amended to read as follows:
         (b)  A training program approved by the department
  [commission] must include training related to:
               (1)  conducting bingo;
               (2)  administering and operating bingo; and
               (3)  promoting bingo.
         (c)  The department [commission by rule] shall establish:
               (1)  the content of the training course;
               (2)  information concerning training to be reported to
  the department [commission]; and
               (3)  other training program requirements that the
  department [commission] determines to be necessary to promote the
  fair conduct of bingo and compliance with this chapter.
         SECTION 1.017.  Section 2001.108, Occupations Code, is
  amended 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
  department [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
  department [commission] must act on the joint application filed
  under Subsection (a) not later than the 14th day after the date the
  application is filed with the department [commission].
         (c)  If the other organization ceased or will cease
  conducting bingo for the reason stated in Subsection (a)(2), the
  department [commission] must act on the joint application filed
  under Subsection (a) not later than the 14th day after the date the
  application is filed with the department [commission] or the date
  on which the termination takes effect, whichever is later.
         (d)  The department [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 department [commission] is not required to act on a
  joint application under Subsection (a) within the time provided by
  this section if the number of additional temporary licenses is
  sufficient to allow the other organizations at the location to
  conduct bingo during the licensed times of the organization that
  has ceased or will cease to conduct bingo.
         SECTION 1.018.  Section 2001.152(a), Occupations Code, is
  amended to read as follows:
         (a)  The department [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 to a single licensed
  authorized organization that subleases or will sublease the
  premises to one or more other licensed authorized organizations for
  the conduct of bingo; or
               (3)  a person who leases premises for the total control
  and exclusive use of only one licensed authorized organization as
  that organization's primary business office.
         SECTION 1.019.  Section 2001.153(a), Occupations Code, is
  amended to read as follows:
         (a)  The department [commission] may not issue a commercial
  lessor license to a person unless the department [commission]
  receives evidence the department [commission] considers adequate
  that funds used by the person seeking the license to obtain the
  premises, provide the premises with furniture, fixtures, or
  equipment, renovate the premises, or provide utilities to the
  premises are:
               (1)  the person's own funds; or
               (2)  the funds of another person, including loan
  proceeds, that:
                     (A)  were obtained in an arms-length transaction
  that was commercially reasonable under the circumstances; and
                     (B)  were not obtained under an expectation or
  obligation that the person from whom the funds were obtained would
  directly participate in, or have a legal interest in, rents
  obtained under the license or revenues or profits from the conduct
  of bingo on the premises.
         SECTION 1.020.  Section 2001.154(a), Occupations Code, is
  amended to read as follows:
         (a)  The department [commission] may not issue a commercial
  lessor license to or renew a commercial lessor license of:
               (1)  a person convicted of criminal fraud or a gambling
  or gambling-related 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; or
               (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[;
               [(6)     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 1.021.  Section 2001.156(a), Occupations Code, is
  amended to read as follows:
         (a)  An applicant for a commercial lessor license must file
  with the department [commission] a written verified application on
  a form prescribed by the department [commission].
         SECTION 1.022.  Section 2001.158(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission by rule shall set the fees for a
  commercial lessor license in an amount reasonable to defray the
  department's administrative costs but not less than the following:
               (1)  Class A (annual gross rentals from licensed
  organizations of not more than $30,000)-$300 [$12,000)-$100];
               (2)  Class B (annual gross rentals from licensed
  organizations of more than $30,000 [$12,000] but not more than
  $60,000)-$900 [$20,000)-$200];
               (3)  Class C (annual gross rentals from licensed
  organizations of more than $60,000 [$20,000] but not more than
  $90,000)-$2,000 [$30,000)-$300]; and
               (4)  Class D (annual gross rentals from licensed
  organizations of more than [$30,000 but not more than
  $40,000)-$400;
               [(5)     Class E (annual gross rentals from licensed
  organizations of more than $40,000 but not more than $50,000)-$600;
               [(6)     Class F (annual gross rentals from licensed
  organizations of more than $50,000 but not more than $60,000)-$900;
               [(7)     Class G (annual gross rentals from licensed
  organizations of more than $60,000 but not more than
  $70,000)-$1,200;
               [(8)     Class H (annual gross rentals from licensed
  organizations of more than $70,000 but not more than
  $80,000)-$1,500;
               [(9)     Class I (annual gross rentals from licensed
  organizations of more than $80,000 but not more than
  $90,000)-$2,000; and
               [(10)     Class J (annual gross rentals from licensed
  organizations of more than] $90,000)-$2,500.
         SECTION 1.023.  Sections 2001.159(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  The department [commission] shall issue or renew a
  commercial lessor license if the department [commission]
  determines that:
               (1)  the applicant has paid the license fee as provided
  by Section 2001.158;
               (2)  the applicant qualifies to be licensed under this
  chapter;
               (3)  the rent to be charged is fair and reasonable;
               (4)  there is no diversion of the funds of the proposed
  lessee from the lawful purposes under this chapter;
               (5)  the person whose signature or name appears in the
  application is in all respects the real party in interest and is not
  an undisclosed agent or trustee for the real party in interest; and
               (6)  the applicant will lease the premises for the
  conduct of bingo in accordance with this chapter.
         (b)  The department [commission] shall issue a commercial
  lessor license under this section for the period specified in the
  license application or for a shorter period as the department
  [commission] determines.
         SECTION 1.024.  Sections 2001.160(a), (e), (f), and (g),
  Occupations Code, are amended to read as follows:
         (a)  On approval by the department [commission], a licensed
  commercial lessor may transfer a commercial lessor license if the
  person to whom the license will be transferred otherwise meets the
  requirements of this subchapter.
         (e)  Unless the department [commission] revokes or suspends
  the license under this chapter, or an injunction is issued under
  this section, a licensed authorized organization that conducts
  bingo lawfully at premises under a license to which Subsection (d)
  applies may continue conducting bingo at the premises after the
  death or incapacity of the commercial lessor license holder.
         (f)  On the showing by the department [commission] of a cause
  that would be sufficient for the department [commission] to revoke
  or suspend a license under this chapter or an applicable commission
  rule, a district court in Travis County [the county for which a
  commercial lessor license was issued or the commission] by order
  may temporarily or permanently enjoin the conduct of bingo at
  premises under a license to which Subsection (d) applies.
         (g)  The estate or guardian of an individual to whom
  Subsection (d) applies shall notify the department [commission] not
  later than one year after the date the individual dies or is
  determined to be incapacitated by a court of this state. The estate
  or guardian and the heirs or other appropriate person shall
  promptly take all necessary steps to complete a transfer of the
  license to the heirs or other appropriate person.
         SECTION 1.025.  Section 2001.161(c), Occupations Code, is
  amended to read as follows:
         (c)  The department [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 1.026.  Section 2001.201, Occupations Code, is
  amended to read as follows:
         Sec. 2001.201.  MANUFACTURER'S LICENSE REQUIRED. A
  manufacturer may not sell or supply or offer to sell or supply to a
  person in this state or for use in this state bingo cards, boards,
  sheets, pads, or other supplies, or equipment designed to be used in
  playing bingo, or engage in any intrastate activity involving those
  items, unless the manufacturer holds a manufacturer's license under
  this subchapter.
         SECTION 1.027.  Section 2001.203, Occupations Code, is
  amended to read as follows:
         Sec. 2001.203.  MANUFACTURER'S LICENSE APPLICATION. (a) An
  applicant for a manufacturer's license must file with the
  department [commission] an application on a form prescribed by the
  department [commission].
         (b)  The application must include:
               (1)  the name and address of the applicant and the name
  and address of each of its locations where bingo supplies or
  equipment are manufactured;
               (2)  a full description of each type of bingo supply or
  equipment that the applicant intends to manufacture or market in
  this state and the brand name, if any, under which each item will be
  sold;
               (3)  if the applicant:
                     (A)  is not a corporation, the name and home
  address of each owner; or
                     (B)  is a corporation, the name and home address
  of each officer and director and each person owning more than 10
  percent of a class of stock in the corporation;
               (4)  if the applicant is a foreign corporation or other
  foreign legal entity, the name, business name and address, and
  address of its registered agent for service in this state;
               (5)  the name and address of each manufacturer,
  supplier, and distributor in which the applicant has a financial
  interest and the details of that financial interest, including any
  indebtedness between the applicant and the manufacturer, supplier,
  or distributor of $5,000 or more;
               (6)  information regarding whether the applicant or a
  person required to be named in the application has been convicted in
  this state or another state of criminal fraud or a gambling or
  gambling-related offense;
               (7)  information regarding whether the applicant or a
  person required to be named in the application is an owner, officer,
  director, shareholder, agent, or employee of a licensed commercial
  lessor or conducts, promotes, administers, or assists in
  conducting, promoting, or administering bingo for which a license
  is required by this chapter;
               (8)  information regarding whether the applicant or a
  person required to be named in the application is a public officer
  or public employee in this state;
               (9)  the name of each state in which the applicant is or
  has been licensed to manufacture, distribute, or supply bingo
  equipment or supplies, each license number, the period of time
  licensed under each license, and whether a license has been
  revoked, suspended, withdrawn, canceled, or surrendered and, if so,
  the reasons for the action taken;
               (10)  information regarding whether the applicant or a
  person required to be named in the application is or has been a
  professional gambler or gambling promoter;
               (11)  the names and addresses of each manufacturer,
  supplier, or distributor of bingo equipment or supplies in which
  the applicant or a person required to be named in the application is
  an owner, officer, shareholder, director, agent, or employee; and
               (12)  any other information the department
  [commission] requests.
         SECTION 1.028.  Section 2001.204, Occupations Code, is
  amended to read as follows:
         Sec. 2001.204.  MANUFACTURER'S LICENSE BOND.  (a)  An
  applicant for a manufacturer's license must give the department
  [commission] a cash bond or a bond in the amount of $10,000 issued
  by a surety company chartered or authorized to do business in this
  state.
         (b)  The bond must provide for forfeiture to the department 
  [state] on the manufacturer's failure to comply with this chapter
  or a commission rule or on suspension or revocation of the
  manufacturer's license.
         SECTION 1.029.  Section 2001.205(b), Occupations Code, is
  amended to read as follows:
         (b)  In addition to the annual license fee, the department
  [commission] may require an additional fee in an amount necessary
  to defray the cost of a background investigation, including the
  inspection of manufacturing plants and locations. The commission
  by rule may establish the conditions and procedure for payment of
  the additional fee.
         SECTION 1.030.  Section 2001.208, Occupations Code, is
  amended to read as follows:
         Sec. 2001.208.  DISTRIBUTOR'S LICENSE APPLICATION. (a) An
  applicant for a distributor's license must file with the department
  [commission] an executed verified application on a form prescribed
  by the department [commission].
         (b)  The application must include:
               (1)  the full name and address of the applicant;
               (2)  the name and address of each location operated by
  the distributor from which bingo supplies or equipment are
  distributed or at which bingo supplies or equipment are stored;
               (3)  if a noncorporate distributor, the name and home
  address of each owner;
               (4)  if a corporate distributor, the name and home
  address of each officer or director and of each person owning more
  than 10 percent of a class of stock in the corporation;
               (5)  if a foreign corporation or other foreign legal
  entity, the name, business name and address, and address of its
  registered agent for service in this state;
               (6)  a full description of the type of bingo supply or
  equipment that the applicant intends to store or distribute in this
  state and the name of the manufacturer of each item and the brand
  name, if any, under which the item will be sold or marketed;
               (7)  the name and address of a manufacturer, supplier,
  or distributor in which the applicant has a financial interest and
  the details of that financial interest, including an indebtedness
  between the applicant and the manufacturer, supplier, or
  distributor of $5,000 or more;
               (8)  information regarding whether the applicant or a
  person required to be named in the application has been convicted in
  this state or another state of criminal fraud or a gambling or
  gambling-related offense;
               (9)  information regarding whether the applicant or a
  person required to be named in the application is an owner, officer,
  director, shareholder, agent, or employee of a licensed commercial
  lessor or conducts, promotes, administers, or assists in
  conducting, promoting, or administering bingo for which a license
  is required under this chapter;
               (10)  information regarding whether the applicant or a
  person required to be named in the application is a public officer
  or public employee in this state;
               (11)  the name of each state in which the applicant is
  or has been licensed to manufacture, distribute, or supply bingo
  equipment or supplies, each license number, the period of time
  licensed under each license, and whether a license was revoked,
  suspended, withdrawn, canceled, or surrendered and, if so, the
  reasons for the action taken;
               (12)  information regarding whether the applicant or a
  person required to be named in the application is or has been a
  professional gambler or gambling promoter;
               (13)  the name and address of each manufacturer,
  supplier, or distributor of bingo equipment or supplies in which
  the applicant or a person required to be named in the application is
  an owner, officer, shareholder, director, agent, or employee; and
               (14)  any other information the department
  [commission] requests.
         SECTION 1.031.  Section 2001.209(b), Occupations Code, is
  amended to read as follows:
         (b)  In addition to the annual license fee, the department
  [commission] may require an additional fee in an amount necessary
  to defray the cost of a background investigation of the applicant,
  including the inspection of storage, distribution, or operating
  locations. The commission by rule may establish the conditions and
  procedure for payment of the additional fee.
         SECTION 1.032.  Section 2001.211(a), Occupations Code, is
  amended to read as follows:
         (a)  An applicant for a manufacturer's or distributor's
  license shall, during pendency of the application, notify the
  department [commission] immediately of any change relating to a
  fact stated in the application.
         SECTION 1.033.  Section 2001.212, Occupations Code, is
  amended to read as follows:
         Sec. 2001.212.  DENIAL OF LICENSE. The executive director
  or commission may deny an application for or renewal of a license
  for a cause that would permit or require the suspension or
  revocation of the license.
         SECTION 1.034.  Section 2001.214(a), Occupations Code, is
  amended to read as follows:
         (a)  A [Except as provided by Subsection (b), a]
  manufacturer's or distributor's license is effective for one year
  unless revoked or suspended by the department [commission].
         SECTION 1.035.  Section 2001.216, Occupations Code, is
  amended to read as follows:
         Sec. 2001.216.  EXAMINATION OF RECORDS. (a) The department
  [commission] may examine the books and records of the holder of or
  an applicant for a manufacturer's or distributor's license.
         (b)  The department [commission] may not disclose
  information obtained during the examination except as necessary to
  carry out this chapter.
         SECTION 1.036.  Section 2001.217, Occupations Code, is
  amended to read as follows:
         Sec. 2001.217.  OFFENSE. (a)  A person who does not hold a
  manufacturer's or distributor's license commits an offense if the
  person sells, offers to sell, or attempts to induce the sale of
  bingo equipment or supplies to a licensed authorized organization.
         (b)  A first offense under this section is a state jail
  felony.  A subsequent offense under this section is a felony of the
  third degree.
         SECTION 1.037.  Sections 2001.218(b) and (c), Occupations
  Code, are amended to read as follows:
         (b)  If a payment is not made when due, the seller shall
  immediately notify the department [commission]. The department
  [commission] shall notify all manufacturers and distributors
  licensed in this state of the default.
         (c)  In the event of a default, a person may not sell or
  transfer bingo equipment or supplies to the purchaser in default on
  terms other than immediate payment on delivery until otherwise
  authorized by the department [commission].
         SECTION 1.038.  The heading to Subchapter G, Chapter 2001,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER G.  GENERAL PROVISIONS RELATING TO
  DEPARTMENT [COMMISSION] LICENSES
         SECTION 1.039.  Section 2001.301, Occupations Code, is
  amended to read as follows:
         Sec. 2001.301.  LICENSE INVESTIGATION. Promptly after the
  filing of the application for a license under this chapter, the
  department [commission] shall investigate the qualifications of
  each applicant and the merits of the application.
         SECTION 1.040.  Section 2001.302, Occupations Code, is
  amended to read as follows:
         Sec. 2001.302.  PROVISION OF SUPPLEMENTAL INFORMATION. (a)
  In addition to any required application form, a license applicant
  or license holder shall submit any supplemental information
  requested by the department [commission].
         (b)  The executive director or commission may deny or refuse
  to renew a license application or revoke a license based on a
  failure to submit requested supplemental information when
  required.
         SECTION 1.041.  Section 2001.3025, Occupations Code, is
  amended to read as follows:
         Sec. 2001.3025.  ACCESS TO CRIMINAL HISTORY RECORD
  INFORMATION. The department [commission] is entitled to conduct an
  investigation of and is entitled to obtain criminal history record
  information maintained by the Department of Public Safety, the
  Federal Bureau of Investigation identification division, or
  another law enforcement agency to assist in the investigation of:
               (1)  an applicant for or holder of a license issued
  under this chapter;
               (2)  a person required to be named in a license
  application; or
               (3)  an employee or other person who works or will work
  for a license holder and who is required by another provision of
  this chapter to undergo a criminal background check.
         SECTION 1.042.  Sections 2001.306(a), (a-1), and (d),
  Occupations Code, are amended to read as follows:
         (a)  A license issued under this chapter may be amended on
  application to the department [commission] and on payment of a fee
  in the amount required by the department [commission] if the
  subject matter of the proposed amendment could properly have been
  included in the original license.
         (a-1)  The commission by rule shall establish an amendment
  fee schedule.  The amount of a fee charged by the department
  [commission] may vary based on the complexity of the proposed
  license amendment.
         (d)  The holder of a license to conduct bingo shall notify
  the department [commission] before changing the time or date of a
  game. The license holder may provide notice to the department
  [commission] regarding the change by use of telephone or other
  means acceptable to the department [facsimile].
         SECTION 1.043.  Section 2001.307, Occupations Code, is
  amended to read as follows:
         Sec. 2001.307.  MAXIMUM LICENSE TERM. A [Except as
  otherwise provided by this chapter, a] license issued under this
  chapter may not be effective for more than one year.
         SECTION 1.044.  Section 2001.311, Occupations Code, is
  amended to read as follows:
         Sec. 2001.311.  RIGHTS NOT VESTED. The issuance of a license
  [or temporary authorization] by the department [commission] does
  not grant a vested right in the license[, the temporary
  authorization,] or the privileges conferred.
         SECTION 1.045.  Sections 2001.315(a) and (b), Occupations
  Code, are amended to read as follows:
         (a)  A person who fails to renew the person's license under
  this chapter before the date the license expires may renew the
  license after the expiration date by:
               (1)  filing a license renewal application with the
  department [commission] not later than the 14th day after the date
  the license expires, paying the applicable annual license fee, and
  paying a late license renewal fee equal to 10 percent of the annual
  license fee; or
               (2)  filing a license renewal application with the
  department [commission] not later than the 60th day after the date
  the license expires, paying the applicable annual license fee, and
  paying a late license renewal fee equal to 10 percent of the annual
  license fee for each 14-day period occurring after the date the
  license expires and before the date the renewal application is
  filed with the department [commission].
         (b)  A person who files a renewal application with the
  department [commission] under Subsection (a) may continue to
  perform the bingo activities authorized under the license as if the
  license has not expired until the license is renewed or renewal of
  the license is denied.
         SECTION 1.046.  Section 2001.316, Occupations Code, is
  amended to read as follows:
         Sec. 2001.316.  DELIVERY OF DEPARTMENT [COMMISSION] NOTICE.
  If notice under this chapter is required to be given to an
  authorized organization, the department [commission] shall send
  the notice to the bingo chairperson of the authorized organization
  and to the appropriate commercial lessor, if applicable.
         SECTION 1.047.  The heading to Section 2001.353, Occupations
  Code, is amended to read as follows:
         Sec. 2001.353.  DISCIPLINE OF LICENSE [AND REGISTRATION]
  HOLDERS.
         SECTION 1.048.  Sections 2001.353(a), (b), and (c),
  Occupations Code, are amended to read as follows:
         (a)  After a hearing, the executive director or commission
  may suspend, revoke, or refuse to renew a license [or registration]
  issued under this chapter for:
               (1)  failure to comply with this chapter or a
  commission rule; or
               (2)  a reason that would allow or require the executive
  director or commission to refuse to issue or renew a license [or
  registration] of the same class.
         (b)  The executive director or commission may place on
  probation a person whose license [or registration] is suspended.  
  If a license [or registration] suspension is probated, the
  executive director or commission may require the person:
               (1)  to report regularly to the department [commission]
  on the matters that are the basis of the probation;
               (2)  to limit the person's activities under the license
  [or registration] in the manner prescribed by the executive
  director or commission; or
               (3)  to take any other reasonable action prescribed by
  the executive director or commission to address the matters that
  are the basis of the probation.
         (c)  If the person fails to comply with the conditions of
  probation, the executive director or commission may suspend or
  revoke the person's license [or registration].
         SECTION 1.049.  Section 2001.403(b), Occupations Code, is
  amended to read as follows:
         (b)  This section does not apply if more than one premises
  lawfully exists under a common roof or over a common foundation
  under a license application filed with the Texas Lottery Commission
  [commission] on or before May 23, 1997. The department
  [commission] shall renew a license at the premises that is
  otherwise in compliance with this chapter.
         SECTION 1.050.  Section 2001.407(f), Occupations Code, is
  amended to read as follows:
         (f)  With the prior written consent of the department
  [commission], a licensed authorized organization may make an
  occasional sale of bingo cards or of a used bingo flash board or
  blower to another licensed authorized organization.
         SECTION 1.051.  Section 2001.409, Occupations Code, is
  amended by adding Subsection (b) to read as follows:
         (b)  Nothing in this chapter shall be construed as
  authorizing any game using a video lottery machine or machines. In
  this section "video lottery machine" or "machine" means any
  electronic video game machine that, on insertion of cash, is
  available to play or simulate the play of a video game, including
  but not limited to video poker, keno, and blackjack, utilizing a
  video display and microprocessor in which the player may receive
  free games or credits that can be redeemed for cash, coins, or
  tokens or that directly dispenses cash, coins, or tokens.
         SECTION 1.052.  Section 2001.411(e), Occupations Code, is
  amended to read as follows:
         (e)  The department [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 department
  [commission] employee or bingo player if required by this chapter.
         SECTION 1.053.  Section 2001.414, Occupations Code, is
  amended to read as follows:
         Sec. 2001.414.  BINGO RECORDS. (a) The commission by rule
  may provide for different recordkeeping procedures for licensed
  authorized organizations by class based on the amount of the
  organization's total [gross] receipts derived from the conduct of
  bingo [of the organization].
         (b)  An organization conducting bingo must record on a cash
  register all transactions for which it receives total [bingo gross]
  receipts derived from the conduct of bingo in conformance with
  commission rules relating to transaction recording specifications.
         SECTION 1.054.  Section 2001.415, Occupations Code, is
  amended to read as follows:
         Sec. 2001.415.  ADVERTISEMENTS. (a) A person other than a
  licensed authorized organization or a[,] licensed commercial
  lessor[, or the commission] may not advertise bingo.
         (b)  A licensed authorized organization or[,] 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 1.055.  Section 2001.420, Occupations Code, is
  amended by adding Subsections (b-1), (d), (e), (f), and (g) to read
  as follows:
         (b-1)  For purposes of Subsections (a) and (b), the value of
  a merchandise bingo prize is the amount paid for the merchandise by
  the licensed authorized organization.  A merchandise bingo prize
  includes bingo cards, bingo pull-tabs, the use of a card-minder,
  bingo daubers, and other bingo merchandise awarded as a prize for
  winning a bingo game.
         (d)  The commission may adopt for a bingo market region in
  this state rules that affect the percentage of total receipts
  derived from the conduct of bingo that is paid by licensed
  authorized organizations within that market region as prizes for
  bingo games if the commission determines that the percentages of
  the total receipts paid for the prizes by the organizations within
  that market region unreasonably reduce the amount of the
  organizations' net proceeds in that market region.
         (e)  A rule adopted under Subsection (d): 
               (1)  may establish a minimum price charged for a bingo
  card or pull-tab or for use of a card-minding device;
               (2)  must allow flexibility in compliance with the rule
  by the licensed authorized organizations within the affected bingo
  market region to allow the organizations to achieve substantial
  compliance without undue burden on the organizations or their
  customers; and
               (3)  must apply equally to each licensed authorized
  organization operating at a bingo premises within the bingo market
  region.
         (f)  An individual bingo market region set by the commission
  must include all the territory in a single county and may include
  part of the territory in an adjacent county as necessary for the
  commission to define a bingo market region under Subsection (d).
         (g)  The commission shall annually review the impact of a
  rule adopted under Subsection (d) on the conduct of bingo within the
  bingo market region and may amend or repeal the rule if the rule
  does not serve the purposes of Subsection (d).
         SECTION 1.056.  Sections 2001.437(a), (b), and (d),
  Occupations Code, are amended to read as follows:
         (a)  If the unit accounting agreement of a unit states that a
  unit manager is responsible for compliance with commission rules
  and this chapter, the unit manager is responsible for:
               (1)  the filing of one quarterly report for the unit on
  a form prescribed by the executive director [commission]; and
               (2)  the payment of taxes and fees and the maintenance
  of the bingo inventory and financial records of the unit.
         (b)  A unit with a unit manager shall notify the department
  [commission] of the name of the unit manager and immediately notify
  the department [commission] of any change of unit manager.
         (d)  An applicant for a unit manager license must file with
  the department [commission] a written application on a form
  prescribed by the executive director [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 criminal fraud or a gambling or gambling-related
  offense; and
               (3)  any other information required by commission rule.
         SECTION 1.057.  Sections 2001.438(b) and (d), Occupations
  Code, are amended to read as follows:
         (b)  The unit shall designate with the department
  [commission] an agent who will be responsible for providing the
  department [commission] access to all inventory and financial
  records of the unit on request of the department [commission].
         (d)  The unit shall immediately notify the department
  [commission] of any change in the agent designated under Subsection
  (b).
         SECTION 1.058.  Section 2001.439(c), Occupations Code, is
  amended to read as follows:
         (c)  The department [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 department
  [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 1.059.  Sections 2001.451(b), (c), (d), (e), (g),
  (i), (j), and (k), Occupations Code, are amended to read as follows:
         (b)  Except as provided by Section 2001.502(a), a [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). A [Except as
  provided by Subsection (b-1), a] deposit must be made not later than
  the second business day after the day of the bingo occasion on which
  the receipts were obtained.
         (c)  A licensed authorized organization may transfer money
  from its general fund or other account to the organization's bingo
  account or to the bingo account of a unit of which the organization
  is a member under Subchapter I-1, if applicable, if:
               (1)  the balance in the bingo account to which the funds
  are transferred is less than the maximum amount permitted by this
  section; and
               (2)  the organization notifies the department
  [commission] of the transfer not later than the 14th day after the
  date of the transfer.
         (d)  Except as permitted by Subsection (c), a licensed
  authorized organization may not commingle [gross] receipts derived
  from the conduct of bingo with other funds of the organization.
         (e)  Except as permitted by Subsection (c) of this section
  and by Section 2001.453(2), a licensed authorized organization may
  not transfer [gross] receipts derived from the conduct of bingo to
  another account maintained by the organization.
         (g)  The bingo operations of a licensed authorized
  organization must[:
               [(1)]  result in net proceeds in the amounts provided
  by Section 2001.460 over the calendar year in which the license is
  in effect [the organization's license period; or
               [(2)     if the organization has a two-year license,
  result in net proceeds over each 12-month period that ends on an
  anniversary of the date the two-year license was issued].
         (i)  Prize taxes [fees] held in escrow for remittance as
  provided by this chapter [to the commission] are not included in the
  calculation of operating capital under Subsection (h).
         (j)  The commission shall adopt rules allowing a licensed
  authorized organization to retain a maximum amount of operating
  capital in the bingo account in excess of the amount provided by
  Subsection (h) if the organization:
               (1)  has conducted bingo for less than one year;
               (2)  experiences circumstances beyond the control of
  the organization, including force majeure, that necessitate an
  increase in operating capital; or
               (3)  provides to the department [commission] a credible
  business plan for the conduct of bingo or for the organization's
  existing or planned charitable purposes that an increase in
  operating capital will reasonably further.
         (k)  A licensed authorized organization may apply to the
  department [commission] for a waiver of the requirements of this
  section and Section 2001.457.  The department [commission] may
  grant the waiver on a showing of good cause by the organization that
  compliance with this section and Section 2001.457 is detrimental to
  the organization's existing or planned charitable purposes. An
  organization applying for a waiver establishes good cause by
  providing to the department [commission]:
               (1)  credible evidence of circumstances beyond the
  control of the organization, including force majeure; or
               (2)  a credible business plan for the organization's
  conduct of bingo or the organization's existing or planned
  charitable purposes.
         SECTION 1.060.  Section 2001.457(b), Occupations Code, is
  amended to read as follows:
         (b)  If a licensed authorized organization fails to meet the
  requirements of Subsection (a) for a quarter, the department
  [commission] in applying appropriate sanctions shall consider
  whether, taking into account the amount required to be disbursed
  during that quarter and the three preceding quarters, the
  organization has disbursed a total amount sufficient to have met
  the disbursement requirement for that quarter and the three
  preceding quarters combined.
         SECTION 1.061.  Subchapter J, Chapter 2001, Occupations
  Code, is amended by adding Section 2001.460 to read as follows:
         Sec. 2001.460.  REQUIRED MINIMUM NET PROCEEDS. (a) If the
  combined gross gaming revenue of the licensed authorized
  organizations located at a single bingo premises exceeds $500,000
  in a calendar year, the combined net proceeds of those
  organizations for that calendar year may not be less than 10 percent
  of the combined gross gaming revenue of those organizations. 
         (a-1)  Notwithstanding Subsection (a), if the combined gross
  gaming revenue of the licensed authorized organizations located at
  a single bingo premises exceeds $500,000 in a calendar year, the
  combined net proceeds of those organizations may not be:
               (1)  in 2016, less than six percent of the combined
  gross gaming revenue of those organizations; and
               (2)  in 2017, less than eight percent of the combined
  gross gaming revenue of those organizations.
         (b)  If the combined gross gaming revenue of the licensed
  authorized organizations located at a single bingo premises is
  equal to $500,000 or less in a calendar year, the combined net
  proceeds of those organizations for that calendar year may not be
  less than five percent of the combined gross gaming revenue of those
  organizations.
         (b-1)  Notwithstanding Subsection (b) and subject to
  Subsection (c), if the combined gross gaming revenue of the
  licensed authorized organizations located at a single bingo
  premises is equal to $500,000 or less in a calendar year, the
  combined net proceeds of those organizations for that calendar year
  may not be:
               (1)  in 2016, less than three percent of the combined
  gross gaming revenue of those organizations; and
               (2)  in 2017, less than four percent of the combined
  gross gaming revenue of those organizations.
         (c)  A licensed authorized organization located at a bingo
  premises described by Subsection (b) that conducts not more than
  two bingo occasions during any week during a calendar year is exempt
  from the requirements of Subsection (b). The commission by rule may
  impose minimum net proceeds requirements in amounts less than the
  amounts required under Subsection (b) on the organizations located
  at a premises to which this subsection applies.
         (c-1)  This subsection applies only to a bingo premises that
  on January 1, 2015, was operated under an active lessor license and
  was located in a county any part of which is within 75 miles of a
  casino that has electronic gaming. Notwithstanding any other
  subsection of this section, the minimum net proceeds requirement
  for a single bingo premises described by this subsection during a
  calendar year is:
               (1)  for a single bingo premises at which the licensed
  authorized organizations have a combined gross gaming revenue that
  exceeds $500,000, the lesser of:
                     (A)  the amount determined using the percentage
  required by this section; or 
                     (B)  $12,000 multiplied by the number of licensed
  authorized organizations conducting bingo at that premises; and
               (2)  for a single bingo premises at which the licensed
  authorized organizations have a combined gross gaming revenue equal
  to $500,000 or less, the lesser of:
                     (A)  the amount determined using the percentage
  required by this section; or 
                     (B)  $6,000 multiplied by the number of licensed
  authorized organizations conducting bingo at that premises.
         (c-2)  This subsection and Subsections (a-1), (b-1), and
  (c-1) expire December 31, 2019.
         (d)  The department shall waive or reduce the minimum net
  proceeds required by this section if:
               (1)  bingo has been conducted at the bingo premises for
  less than 12 months;
               (2)  circumstances beyond the control of the licensed
  authorized organizations operating at the bingo premises,
  including force majeure, prevented the organizations from
  satisfying the minimum net proceeds percentage;
               (3)  the licensed authorized organizations present a
  business plan that the department determines reasonably
  establishes procedures to satisfy the minimum net proceeds
  percentage in the next calendar year; or
               (4)  based on an annual department survey of one or more
  bingo markets, the department determines that legal or illegal
  gaming in the area of the bingo premises affected the ability of the
  organizations conducting bingo at that bingo premises to satisfy
  the minimum net proceeds percentage. 
         (e)  If the department waives or reduces the minimum net
  proceeds percentage required by this section because of illegal
  gaming, the department shall notify the county commissioners court
  of the county in which each affected bingo premises is located and
  the governing body of any municipality in which the premises is
  located of the department's action and the reasons for that action.
         SECTION 1.062.  The heading to Subchapter K, Chapter 2001,
  Occupations Code, is amended to read as follows:
  SUBCHAPTER K.  TAXES [AND PRIZE FEES]
         SECTION 1.063.  Section 2001.502, Occupations Code, is
  amended to read as follows:
         Sec. 2001.502.  PRIZE TAX [FEE]. (a) A licensed authorized
  organization shall[:
               [(1)]  collect from a person who wins a cash bingo prize
  of more than $5 a tax [fee] in the amount of five percent of the
  amount [or value] of the prize. Each quarter, the licensed
  authorized organization shall:
               (1)  if a county or municipality in which the bingo game
  is conducted voted to impose the prize tax before November 1, 2015:
  [; and]
                     (A) [(2)]  remit a tax [to the commission a fee]
  in the amount of 50 [five] percent of the amount collected as the
  prize tax under this subsection to:
                           (i)  the county in which the bingo game is
  conducted, if the county voted to impose the tax by that date and
  the location at which bingo is conducted is not within the limits of
  a municipality;
                           (ii)  the municipality in which the bingo
  game is conducted, if the municipality voted to impose the tax by
  that date and the county in which the bingo game is conducted did
  not vote to impose the tax by that date; or
                           (iii)  in equal shares, the county and the
  municipality in which the bingo game is conducted, if the county and
  municipality each voted to impose the tax before that date; and
                     (B)  deposit the remainder of the taxes collected
  under this subsection in the general charitable fund of the
  organization; or
               (2)  if a county or municipality is not entitled to a
  percentage of the amount of taxes collected under this subsection,
  deposit the taxes collected in the general charitable fund of the
  organization [or value of all bingo prizes awarded].
         (b)  The governing body of a county or municipality that
  voted to impose a prize tax under Subsection (a) may at any time
  vote to discontinue the imposition of the tax.
         (c)  The tax required under Subsection (a) does not apply to
  a merchandise prize, including bingo cards, bingo pull-tabs, use of
  a card-minder, bingo daubers, and other bingo merchandise awarded
  as a prize for winning a bingo game.
         SECTION 1.064.  The heading to Section 2001.504, Occupations
  Code, is amended to read as follows:
         Sec. 2001.504.  PAYMENT AND REPORTING OF TAX [OR FEE].
         SECTION 1.065.  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 day of the month succeeding each calendar
  quarter.
         SECTION 1.066.  Section 2001.551(f), Occupations Code, is
  amended to read as follows:
         (f)  A game exempted under Subsection (b)(4) is subject to
  the following restrictions:
               (1)  a person licensed or required to be licensed under
  this chapter or having an interest in a license under this chapter
  may not be involved, directly or indirectly, in bingo, except that a
  licensed manufacturer or licensed distributor may sell or otherwise
  furnish bingo equipment or supplies for use in a game;
               (2)  a person conducting bingo may purchase or
  otherwise obtain bingo equipment or supplies through a newspaper, a
  radio or television station, or an advertising agency and, unless
  otherwise authorized by the department [commission], only from a
  licensed manufacturer or licensed distributor;
               (3)  a licensed manufacturer or licensed distributor
  may sell or otherwise furnish bingo equipment or supplies for use in
  a game only to or through a newspaper or a radio or television
  station or through an advertising agency acting on behalf of a
  person authorized to conduct the game; and
               (4)  the commission by rule may require a person
  conducting or involved in conducting the game to:
                     (A)  notify the department [commission] of:
                           (i)  the persons involved in conducting the
  game;
                           (ii)  the manner in which the game is to be
  conducted; and
                           (iii)  any other information required by the
  department [commission]; and
                     (B)  keep records of all transactions connected
  with the game available for department [commission] inspection.
         SECTION 1.067.  Section 2001.554(a), Occupations Code, is
  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 gaming revenue [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)  violates this chapter or a term of a license issued
  under this chapter.
         SECTION 1.068.  Section 2001.555(b), Occupations Code, is
  amended to read as follows:
         (b)  The immunity granted under this section does not extend
  to a person:
               (1)  [knowingly] conducting or participating in bingo
  under a license obtained by a false pretense, false statement, or
  material omission made in an application for license or otherwise;
  or
               (2)  [knowingly] permitting the conduct of bingo on
  premises owned or leased by the person under a license known to the
  person to have been obtained by a false pretense or statement.
         SECTION 1.069.  Section 2001.557, Occupations Code, is
  amended to read as follows:
         Sec. 2001.557.  INSPECTION OF PREMISES. (a) The department
  [commission], its officers or agents, or a state, municipal, or
  county peace officer may enter and inspect the contents of premises
  where:
               (1)  bingo is being conducted or intended to be
  conducted; or
               (2)  equipment used or intended for use in bingo is
  found.
         (b)  The commission by rule shall develop and implement
  policies and procedures to:
               (1)  prioritize the inspection of premises where bingo
  is being conducted or is intended to be conducted in accordance with
  the risk factors the department [commission] considers important,
  including:
                     (A)  the amount of money derived from the conduct
  of bingo at the premises;
                     (B)  the compliance history of the premises; and
                     (C)  the amount of time that has elapsed since the
  date of the immediately preceding department [commission]
  inspection of the premises; and
               (2)  inspect premises where bingo is being conducted or
  is intended to be conducted in accordance with the priorities
  established under Subdivision (1).
         SECTION 1.070.  Sections 2001.558(a) and (d), Occupations
  Code, are amended to read as follows:
         (a)  If the department [commission], the appropriate
  governing body, or the attorney general has reason to believe that
  this chapter has been or is about to be violated, the executive
  director [commission], the governing body, or the attorney general
  may petition a court for injunctive relief to restrain the
  violation.
         (d)  If the court finds that this chapter has been
  [knowingly] violated, the court shall order all proceeds from the
  illegal bingo to be forfeited to the appropriate governing body as a
  civil penalty.
         SECTION 1.071.  Section 2001.559, Occupations Code, is
  amended to read as follows:
         Sec. 2001.559.  REMEDIES NOT EXCLUSIVE. The executive
  director or commission may suspend or revoke a license under
  Section 2001.353 [2001.355], impose an administrative penalty
  under Subchapter M, or both, depending on the severity of the
  violation.
         SECTION 1.072.  Sections 2001.560(c), (c-1), (c-2), (d), and
  (e), Occupations Code, are amended to read as follows:
         (c)  The department [commission] or a person authorized in
  writing by the department [commission] may examine the books,
  papers, records, equipment, and place of business of a license
  holder and may investigate the character of the license holder's
  business to verify the accuracy of a return, statement, or report
  made, or, if no return is made by the license holder, to ascertain
  and determine the amount required to be paid.
         (c-1)  The commission by rule shall develop a policy for
  auditing license holders.  The department [bingo division] shall
  use audit risk analysis procedures established by the department
  [commission] to:
               (1)  annually identify which license holders are most
  at risk of violating this chapter or rules adopted under this
  chapter; and
               (2)  develop a plan for auditing the identified license
  holders that includes:
                     (A)  a schedule for the audits of the identified
  license holders;
                     (B)  procedures to annually update the plan based
  on successive risk analyses; and
                     (C)  a completion date for each audit that is not
  later than the fifth anniversary of the date the license holder was
  identified as a candidate for audit.
         (c-2)  The department [bingo division] shall provide to the
  commission a copy of the auditing plan developed under Subsection
  (c-1).
         (d)  The commission may set and the department may charge to
  the license holder a fee in an amount reasonably necessary to
  recover the cost of an authorized investigation or audit authorized
  under this chapter.
         (e)  If the department [commission] determines that a person
  is not complying with this chapter, the department [commission]
  shall notify the attorney general and the governing body of the
  appropriate political subdivision.
         SECTION 1.073.  Section 2001.601, Occupations Code, is
  amended to read as follows:
         Sec. 2001.601.  IMPOSITION OF PENALTY. The executive
  director or commission may impose an administrative penalty against
  a person who violates this chapter or a rule or order adopted by the
  executive director or commission under this chapter.
         SECTION 1.074.  Section 2001.654(a), Occupations Code, is
  amended to read as follows:
         (a)  If the officer responsible for certifying a petition
  determines that a petition is valid, the governing body shall:
               (1)  order that an election be held in the appropriate
  political subdivision on a date not later than the 60th day after
  the date of the officer's certification; and
               (2)  notify the department [commission] by certified
  mail, return receipt requested, that an election has been ordered.
         SECTION 1.075.  Section 2001.656(d), Occupations Code, is
  amended to read as follows:
         (d)  The governing body of a political subdivision in which a
  bingo election has been held shall not later than the 14th day after
  the date of the election give written notification to the
  department [commission] of the results of the election.  If as a
  result of the election bingo is legalized in the political
  subdivision, the governing body shall furnish the department
  [commission] with a map prepared by the governing body indicating
  the boundaries of the political subdivision in which bingo may be
  conducted.
         SECTION 1.076.  Section 404.073(c), Government Code, is
  amended to read as follows:
         (c)  Interest that has been and that will be accrued or
  earned from deposits made under a law to which this subsection
  applies is state funds not subject to allocation or distribution to
  taxing units, cities, or transportation authorities under that law.
  This subsection applies to:
               (1)  Section 205.02, Alcoholic Beverage Code;
               (2)  [Section 2001.507, Occupations Code;
               [(3)]  Section 403.105(d) of this code;
               (3) [(4)]  Sections 321.501 and 321.504, Tax Code;
               (4) [(5)]  Sections 322.301 and 322.304, Tax Code; and
               (5) [(6)]  Sections 323.501 and 323.504, Tax Code.
         SECTION 1.077.  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 and [,] Chapter 466 [of this code, and Chapter
  2001, Occupations Code,] expire September 1, 2025.
         SECTION 1.078.  Sections 467.024(a) and (c), Government
  Code, are amended to read as follows:
         (a)  An individual is not eligible to be an appointed member
  of the commission if the individual:
               (1)  is registered, certified, or licensed by a
  regulatory agency in the field of [bingo or] lottery;
               (2)  owns or controls, directly or indirectly, more
  than a 10 percent interest in a business entity or other
  organization regulated by the commission or receiving funds from
  the commission;
               (3)  is employed by or participates in the management
  of a business entity or other organization regulated by or
  receiving funds from the commission;
               (4)  uses or receives a substantial amount of tangible
  goods, services, or funds from the commission, other than
  compensation or reimbursement authorized by law for commission
  membership, attendance, or expenses;
               (5)  is an officer, employee, or paid consultant of a
  Texas trade association in the field of [bingo or] lottery;
               (6)  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;
               (7)  is married to an individual described by
  Subdivisions (2)-(6);
               (8)  has been convicted of a felony or of any crime
  involving moral turpitude; or
               (9)  is not a citizen of the United States.
         (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.), 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.
         SECTION 1.079.  Section 467.025(a), Government Code, is
  amended to read as follows:
         (a)  A commission member may not:
               (1)  accept any employment or remuneration from[:
                     [(A)]  a person that has a significant financial
  interest in the lottery[; or
                     [(B)     a bingo commercial lessor, bingo
  distributor, or bingo manufacturer];
               (2)  play any lottery [or bingo] game conducted in this
  state;
               (3)  accept or be entitled to accept any part of the
  winnings to be paid from a lottery [or bingo] game conducted in this
  state;
               (4)  use the member's official authority to affect the
  result of an election or nomination for public office; or
               (5)  directly or indirectly coerce, attempt to coerce,
  command, or advise a person to pay, lend, or contribute anything of
  value to another person for political purposes.
         SECTION 1.080.  Section 467.033, Government Code, is amended
  to read as follows:
         Sec. 467.033.  DIRECTOR OF LOTTERY OPERATIONS [DIVISION
  DIRECTORS]. The executive director shall employ a director of
  lottery operations who [to oversee each division. A division
  director] serves at the will of the executive director and is
  specifically exempted from Chapter 654.
         SECTION 1.081.  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 owns a financial interest in[:
               [(1)     a bingo commercial lessor, bingo distributor, or
  bingo manufacturer; or
               [(2)]  a lottery sales agency or a lottery operator.
         SECTION 1.082.  Sections 467.101(a) and (c), Government
  Code, are amended to read as follows:
         (a)  The commission has broad authority and shall exercise
  strict control and close supervision over all activities authorized
  and conducted in this state under[:
               [(1)  Chapter 2001, Occupations Code; and
               [(2)]  Chapter 466 [of this code].
         (c)  The commission also has the powers and duties granted
  under[:
               [(1)  Chapter 2001, Occupations Code; and
               [(2)]  Chapter 466 [of this code].
         SECTION 1.083.  Section 467.111(f), Government Code, is
  amended to read as follows:
         (f)  The commission shall prepare a report on the trends and
  issues identified under Subsection (e) and make the report
  available to the public.  The commission shall address the
  identified trends and issues, including trends and issues related
  to the regulation of lottery operations under Chapter 466 [and of
  bingo under Chapter 2001, Occupations Code].
         SECTION 1.084.  (a) Sections 467.021(c) and 467.031,
  Government Code, are repealed.
         (b)  The following provisions of the Occupations Code are
  repealed:
               (1)  Section 2001.051(c);
               (2)  Section 2001.052;
               (3)  Section 2001.0541;
               (4)  Section 2001.058;
               (5)  Section 2001.060(b);
               (6)  Section 2001.101(b);
               (7)  Sections 2001.103(e) and (h);
               (8)  Section 2001.157;
               (9)  Section 2001.158(d);
               (10)  Section 2001.159(c);
               (11)  Sections 2001.211(b), (c), and (d);
               (12)  Section 2001.213;
               (13)  Section 2001.214(b);
               (14)  Section 2001.304;
               (15)  Section 2001.305;
               (16)  Section 2001.308;
               (17)  Section 2001.313;
               (18)  Section 2001.314;
               (19)  Section 2001.351;
               (20)  Section 2001.352;
               (21)  Section 2001.353(d);
               (22)  Section 2001.354;
               (23)  Section 2001.355;
               (24)  Section 2001.356;
               (25)  Section 2001.357;
               (26)  Section 2001.358;
               (27)  Section 2001.436(c);
               (28)  Section 2001.437(f);
               (29)  Section 2001.451(b-1);
               (30)  Section 2001.459(b);
               (31)  Section 2001.501;
               (32)  Section 2001.503;
               (33)  Sections 2001.504(b), (c), (d), and (e);
               (34)  Section 2001.507;
               (35)  Section 2001.508;
               (36)  Section 2001.509;
               (37)  Section 2001.510;
               (38)  Section 2001.511;
               (39)  Section 2001.512;
               (40)  Section 2001.513;
               (41)  Section 2001.514;
               (42)  Section 2001.515;
               (43)  Section 2001.553;
               (44)  Section 2001.602;
               (45)  Section 2001.603;
               (46)  Section 2001.604;
               (47)  Section 2001.605;
               (48)  Section 2001.606;
               (49)  Section 2001.607;
               (50)  Section 2001.608;
               (51)  Section 2001.609;
               (52)  Section 2001.610; and
               (53)  Section 2001.611.
         (c)  Section 10, Chapter 1057 (H.B. 3021), Acts of the 74th
  Legislature, Regular Session, 1995, is repealed.
         SECTION 1.085.  (a) On September 1, 2015:
               (1)  all functions and activities performed by the
  Texas Lottery Commission relating to the regulation of bingo
  operations under Chapter 2001, Occupations Code, immediately
  before that date are transferred to the Texas Department of
  Licensing and Regulation;
               (2)  a rule, policy, procedure, decision, or form
  adopted by the Texas Lottery Commission relating to Chapter 2001,
  Occupations Code, is a rule, policy, procedure, decision, or form
  of the Texas Commission of Licensing and Regulation or the Texas
  Department of Licensing and Regulation, as applicable, and remains
  in effect until amended or replaced by that commission or
  department unless the rule, policy, procedure, decision, or form
  conflicts with the changes in law made by this Act;
               (3)  unless the context clearly indicates otherwise, a
  reference to the Texas Lottery Commission in a law or
  administrative rule that relates to Chapter 2001, Occupations Code,
  means the Texas Commission of Licensing and Regulation or the Texas
  Department of Licensing and Regulation, as applicable;
               (4)  a complaint, investigation, or other proceeding
  before the Texas Lottery Commission that is related to Chapter
  2001, Occupations Code, is transferred without change in status to
  the Texas Department of Licensing and Regulation, and the Texas
  Department of Licensing and Regulation assumes, as appropriate and
  without a change in status, the position of the Texas Lottery
  Commission in an action or proceeding to which the Texas Lottery
  Commission is a party;
               (5)  a license, permit, certification, or registration
  in effect that was issued by the Texas Lottery Commission under
  Chapter 2001, Occupations Code, is continued in effect as a
  license, permit, certification, or registration of the Texas
  Department of Licensing and Regulation;
               (6)  all money, contracts, leases, property, and
  obligations of the Texas Lottery Commission relating to Chapter
  2001, Occupations Code, are transferred to the Texas Department of
  Licensing and Regulation; and
               (7)  the unexpended and unobligated balance of any
  money appropriated by the legislature for the Texas Lottery
  Commission related to Chapter 2001, Occupations Code, is
  transferred to the Texas Department of Licensing and Regulation.
         (b)  On September 1, 2015, all full time equivalent employee
  positions at the Texas Lottery Commission that primarily concern
  the administration, auditing, accounting, enforcement, or other
  direct and indirect support of Chapter 2001, Occupations Code,
  become positions at the Texas Department of Licensing and
  Regulation. When filling the positions, the Texas Department of
  Licensing and Regulation shall give first consideration to an
  applicant who, as of August 31, 2015, was an employee at the Texas
  Lottery Commission primarily involved in administering or
  enforcing Chapter 2001, Occupations Code.
         (c)  Not later than June 1, 2015, the Texas Lottery
  Commission shall grant the Texas Department of Licensing and
  Regulation inquiry-only security access to:
               (1)  all licensing, enforcement, and examination
  software or computer systems used by the Texas Lottery Commission
  in administering or enforcing Chapter 2001, Occupations Code; and
               (2)  the uniform statewide accounting system, the state
  property accounting system, the uniform statewide payroll system,
  and the human resources information system for the Texas Lottery
  Commission.
         (d)  Before September 1, 2015, the Texas Lottery Commission
  may agree with the Texas Department of Licensing and Regulation to
  transfer any property of the Texas Lottery Commission to the Texas
  Department of Licensing and Regulation to implement the transfers
  required by this Act.
         (e)  The Texas Department of Licensing and Regulation and the
  Texas Lottery Commission shall coordinate implementation of this
  section. The Texas Lottery Commission shall cooperate with the
  Texas Department of Licensing and Regulation in transferring all
  data and records necessary to implement the transfers required by
  this Act.
         (f)  Before July 15, 2015, the Texas Lottery Commission and
  the Texas Department of Licensing and Regulation shall develop and
  enter into a memorandum of understanding regarding the transfers
  required by this Act. The memorandum must include a transition plan
  with a timetable and specific steps and deadlines required to
  complete the transfer.
         (g)  Not later than December 1, 2015, a manufacturer of bingo
  equipment or supplies that submitted to the Texas Lottery
  Commission a bond as required under Section 2001.204, Occupations
  Code, before September 1, 2015, that is in effect on the effective
  date of this Act must amend the bond to name the Texas Department of
  Licensing and Regulation as the payee for the bond.
         (h)  A bond given by an applicant for a manufacturer's
  license as required by Section 2001.204, Occupations Code, as
  amended by this Act, on or after the effective date of this Act must
  comply with Subchapter E, Chapter 2001, Occupations Code, as
  amended by this Act.
         SECTION 1.086.  (a)  The repeal by this Act of Section
  2001.553, Occupations Code, does not apply to an offense committed
  under that section before September 1, 2015. For purposes of this
  section, an offense is committed before September 1, 2015, if any
  element of the offense occurs before that date.
         (b)  An offense committed before September 1, 2015, is
  covered by that section as it existed when the offense was
  committed, and the former law is continued in effect for that
  purpose.
         SECTION 1.087.  The changes in law made by this Act to
  Chapter 2001, Occupations Code, apply only to a tax or fee charged
  on or after September 1, 2015. A tax or fee charged before
  September 1, 2015, is governed by the law in effect immediately
  before that date, and the former law is continued in effect for that
  purpose.
         SECTION 1.088.  (a)  The governing body of a county or
  municipality that was entitled to receive a portion of the prize fee
  collected under former Section 2001.503, Occupations Code, as that
  section existed immediately before the effective date of this Act,
  may only continue receiving a portion of the prize tax collected
  under Section 2001.502, Occupations Code, as amended by this Act,
  after the effective date of this Act if the governing body:
               (1)  by majority vote of the members of the governing
  body approves the continued receipt of funds under that section and
  notifies the Texas Department of Licensing and Regulation of that
  decision not later than November 1, 2015; and
               (2)  notifies each licensed authorized organization
  within the county's or municipality's jurisdiction, as applicable,
  of the continued quarterly imposition of the tax and the payment
  information for the tax, including the name to which a check for the
  tax payment is made and the mailing address to which the tax payment
  must be sent.
         (b)  Not later than October 1, 2015, the Texas Department of
  Licensing and Regulation shall notify the governing body of a
  county or municipality that was entitled to receive a portion of the
  prize fee collected under former Section 2001.503, Occupations
  Code, as that section existed immediately before the effective date
  of this Act, of the requirements for continued receipt of the prize
  tax under that section as provided in Subsection (a) of this
  section.
         SECTION 1.089.  (a)  Not later than March 1, 2016, the Texas
  Commission of Licensing and Regulation shall adopt the rules
  necessary to implement the changes in law made by this Act.
         (b)  Section 2001.451, Occupations Code, as amended by this
  Act, applies beginning January 1, 2016.
         (c)  Section 2001.502, Occupations Code, as amended by this
  Act, applies to prize taxes collected on and after January 1, 2016.
  Prize taxes collected before that date are governed by the law in
  effect immediately before the effective date of this Act, and that
  law continues in effect for that purpose.
  ARTICLE 2. REGULATION OF AMUSEMENT REDEMPTION MACHINE GAME ROOMS
  ON LICENSED BINGO PREMISES
         SECTION 2.01.  Subchapter E, Chapter 234, Local Government
  Code, as added by Chapter 1377 (H.B. 1127), Acts of the 83rd
  Legislature, Regular Session, 2013, is amended by adding Section
  234.1331 to read as follows:
         Sec. 234.1331.  LICENSED BINGO PREMISES. (a)  Except as
  otherwise provided by this section, regulations adopted by the
  commissioners court of a county as authorized by Section 234.133
  apply to a location at which bingo is conducted under Chapter 2001,
  Occupations Code, in the same manner as the regulations apply to
  other premises subject to the regulations.
         (b)  This subsection applies only to a location at which
  bingo was conducted on or before January 1, 2015, under a license
  issued under Chapter 2001, Occupations Code. The regulations
  authorized by Section 234.133 may not:
               (1)  restrict or prohibit the location of a game room at
  a location to which this subsection applies; 
               (2)  require signage or place regulations on the
  windows or doors of a location to which this subsection applies;
               (3)  restrict the hours of operation of a game room at a
  location to which this subsection applies; or
               (4)  apply to a location to which this subsection
  applies in a manner that is different from a location that derives
  more than 50 percent of its sales from the sale of food or
  beverages, including alcohol and liquor sales.
         SECTION 2.02.  The following provisions are repealed:
               (1)  Section 234.132, Local Government Code, as added
  by Chapter 1377 (H.B. 1127), Acts of the 83rd Legislature, Regular
  Session, 2013; and
               (2)  Subchapter E, Chapter 234, Local Government Code,
  as added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature,
  Regular Session, 2013.
  ARTICLE 3.  EFFECTIVE DATE
         SECTION 3.01.  (a) Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2015.
         (b)  Section 1.085 of this Act takes effect immediately if
  this Act 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, that section takes effect September 1, 2015.