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A BILL TO BE ENTITLED
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AN ACT
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relating to the transfer of the licensing and regulation of |
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charitable bingo to the Texas Department of Licensing and |
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Regulation and regulation by counties of amusement redemption |
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machine game rooms on bingo premises; requiring an occupational |
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permit; authorizing fees and taxes; creating civil and |
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administrative penalties; increasing a criminal penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. REGULATION OF CHARITABLE BINGO |
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SECTION 1.001. Section 2001.002, Occupations Code, is |
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amended by amending Subdivisions (8), (13), (18), and (25-a) and |
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adding Subdivisions (8-a) and (9-a) to read as follows: |
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(8) "Commission" means the Texas [Lottery] Commission |
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of Licensing and Regulation. |
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(8-a) "Department" means the Texas Department of |
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Licensing and Regulation. |
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(9-a) "Executive director" means the executive |
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director of the department. |
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(13) "Gross gaming revenue [receipts]" means the total |
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amount received from the sale, rental, transfer, or use of bingo |
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cards and entrance fees charged at premises at which bingo is |
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conducted less the amount of cash prizes paid to winners of bingo |
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games. |
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(18) "Net proceeds" means: |
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(A) in relation to the total [gross] receipts |
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from the conduct of bingo during one or more bingo occasions, the |
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amount remaining after deducting the reasonable sums necessarily |
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and actually expended for expenses under Section 2001.458 and the |
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tax [fee] on prizes under Section 2001.502; and |
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(B) in relation to the gross rent or other |
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consideration received by a licensed authorized organization for |
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the use of its premises, fixtures, or equipment by another license |
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holder, the amount remaining after deducting the reasonable sums |
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necessarily and actually expended for any janitorial services and |
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utility supplies directly attributable to the use of the premises, |
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fixtures, or equipment. |
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(25-a) "Regular license" means a license to conduct |
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bingo that is issued by the department [commission] and that |
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expires on the first [or second] anniversary of the date of issuance |
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unless revoked or suspended before that date by the department |
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[commission. The term includes an annual license]. |
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SECTION 1.002. The heading to Subchapter B, Chapter 2001, |
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Occupations Code, is amended to read as follows: |
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SUBCHAPTER B. [COMMISSION] POWERS AND DUTIES |
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SECTION 1.003. The heading to Section 2001.051, Occupations |
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Code, is amended to read as follows: |
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Sec. 2001.051. CONTROL AND SUPERVISION OF BINGO[; BINGO
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DIVISION]. |
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SECTION 1.004. Sections 2001.051(a) and (b), Occupations |
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Code, are amended to read as follows: |
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(a) The department [commission] shall administer this |
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chapter. |
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(b) The commission has broad authority and shall exercise |
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[strict] control and close supervision over all bingo conducted in |
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this state so that bingo is fairly conducted and the proceeds |
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derived from bingo are used for an authorized purpose. |
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SECTION 1.005. Section 2001.053, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.053. OFFICERS AND INVESTIGATORS. The executive |
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director [commission] may employ officers or investigators the |
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executive director [commission] considers necessary to administer |
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this chapter. |
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SECTION 1.006. Sections 2001.056(b), (c), (d), and (e), |
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Occupations Code, are amended to read as follows: |
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(b) A license holder may not use or distribute a bingo card |
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unless the card has been approved by the department [commission]. |
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(c) The executive director or commission may set the price |
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or adopt a schedule of prices for the sale or provision of bingo |
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cards by a licensed authorized organization. |
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(d) A licensed authorized organization may not sell or |
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provide a bingo card at a price other than a price authorized by the |
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executive director or commission or a schedule adopted by the |
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executive director or commission. |
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(e) The commission by rule may require a licensed authorized |
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organization to notify the department [commission] of the price for |
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bingo cards the organization will use for one or more reporting |
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periods. |
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SECTION 1.007. Section 2001.057, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.057. BINGO ADVISORY COMMITTEE AND ADVICE FOR |
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COMMISSION. (a) The commission shall [may] appoint a bingo |
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advisory committee consisting of nine members. The commission |
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shall appoint members representing a balance of interests including |
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representatives of: |
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(1) the public; |
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(2) charities that operate bingo games; [and] |
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(3) commercial and charity lessors that participate in |
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the bingo industry; |
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(4) distributors; and |
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(5) manufacturers. |
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(c) An advisory [A] committee member serves at the pleasure |
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of the presiding officer of the commission. |
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(d) An advisory [A] committee member is not entitled to |
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receive compensation for serving as a member. A [committee] member |
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is entitled to reimbursement for reasonable expenses incurred in |
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performing duties as a member subject to the availability of funds |
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and applicable limitations of the General Appropriations Act. |
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(e) The advisory committee, executive director, and |
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department may: |
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(1) advise the commission on the needs and problems of |
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the state's bingo industry; |
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(2) comment on rules involving bingo during their |
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development and before final adoption unless an emergency requires |
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immediate action by the commission; and |
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(3) [report annually to the commission on the
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committee's activities; and
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[(4)] perform other duties as determined by the |
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commission or executive director. |
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(f) The advisory committee may meet [quarterly or] at the |
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executive director's or the presiding officer's [commission's] |
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request. |
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[(g)
The commission may adopt rules to govern the operations
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of the committee.] |
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SECTION 1.008. Section 2001.059(f), Occupations Code, is |
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amended to read as follows: |
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(f) The commission may delegate all or part of the authority |
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and procedures for issuing advisory opinions under this section to |
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an employee of the department [commission]. |
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SECTION 1.009. Sections 2001.060(a) and (c), Occupations |
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Code, are amended to read as follows: |
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(a) On or before June 1 of each even-numbered year, the |
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department [commission] shall prepare and deliver to the governor, |
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the lieutenant governor, the speaker of the house of |
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representatives, and the chairs of the standing committees of the |
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senate and house of representatives with primary jurisdiction over |
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charitable bingo a report stating for each of the preceding two |
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calendar years: |
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(1) the total amount of [adjusted] gross gaming |
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revenue [receipts] reported by licensed authorized organizations |
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from their bingo operations; |
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(2) the total amount of net proceeds reported by |
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licensed authorized organizations from their bingo operations; and |
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(3) a comparison of the amounts reported under |
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Subdivisions (1) and (2), including the percentage that the net |
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proceeds represents of the [adjusted] gross gaming revenue |
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[receipts]. |
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(c) For purposes of Subsection (a), the department |
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[commission] shall determine the total amount of net proceeds in a |
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manner that does not reduce gross gaming revenue [receipts] by the |
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amount of rent paid for the rental of bingo premises by a licensed |
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authorized organization to another licensed authorized |
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organization if the other organization pays rent for the premises |
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to a licensed commercial lessor. |
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SECTION 1.010. Section 2001.061, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.061. LICENSE RENEWAL PROCESS. The commission |
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shall adopt rules governing each part of the license renewal |
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process for all licenses issued under this chapter, from |
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application submission to completion of the renewal process. [The
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process must require a license holder renewing a license to submit
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to the commission the information required in the initial license
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application.] |
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SECTION 1.011. Section 2001.101(a), Occupations Code, is |
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amended to read as follows: |
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(a) The department [commission] may license a person who is |
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an authorized organization eligible for a license to conduct bingo |
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if the person is: |
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(1) a religious society that has existed in this state |
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for at least three years; |
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(2) a nonprofit organization: |
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(A) whose predominant activities are for the |
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support of medical research or treatment programs; and |
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(B) that for at least three years: |
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(i) must have had a governing body or |
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officers elected by a vote of members or by a vote of delegates |
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elected by the members; or |
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(ii) must have been affiliated with a state |
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or national organization organized to perform the same purposes as |
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the nonprofit organization; |
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(3) a fraternal organization that has been organized |
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in this state for at least three years; |
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(4) a veterans organization that has existed in this |
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state for at least three years; |
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(5) a volunteer fire department that has existed in |
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this state for at least three years; or |
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(6) a volunteer emergency medical services provider |
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that has existed in this state for at least three years. |
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SECTION 1.012. Sections 2001.102(a) and (b), Occupations |
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Code, are amended to read as follows: |
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(a) An applicant for a license to conduct bingo must file |
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with the department [commission] an application on a form |
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prescribed by the department [commission]. |
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(b) The application must include: |
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(1) the name and address of the applicant; |
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(2) the names and addresses of the applicant's |
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officers and directors; |
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(3) the address of the premises where and the time when |
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the applicant intends to conduct bingo under the license sought; |
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(4) the name and address of the licensed commercial |
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lessor of the premises, if the applicant intends to lease premises |
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to conduct bingo from a person other than an authorized |
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organization; |
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(5) a statement that the net proceeds of bingo will go |
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to one or more of the authorized charitable purposes under this |
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chapter; |
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(6) a designation of the applicant organization's |
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bingo chairperson under whom bingo will be conducted accompanied by |
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a statement signed by the chairperson stating that the chairperson |
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will be responsible for the conduct of bingo under the terms of the |
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license and this chapter; |
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(7) sufficient facts relating to the applicant's |
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incorporation and organization to enable the department |
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[commission] to determine whether the applicant is an authorized |
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organization; |
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(8) [a copy of] the applicant organization's most |
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recently filed Internal Revenue Service Form 990, if applicable; |
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(9) a letter of good standing from the applicant |
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organization's parent organization, if the organization receives |
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an exemption from federal income taxes as a member of a group of |
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organizations; |
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(10) [copies of] the applicant organization's |
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organizing instruments, including any bylaws, constitution, |
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charter, and articles of incorporation; |
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(11) verification of the applicant organization's good |
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standing with the secretary of state if the organization is |
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organized under the law of this state; and |
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(12) information necessary to conduct criminal |
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background checks on the applicant organization's officers and |
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directors. |
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SECTION 1.013. Sections 2001.103(a), (c), (f), and (g), |
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Occupations Code, are amended to read as follows: |
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(a) An authorized organization may receive a temporary |
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license to conduct bingo by filing with the department [commission] |
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an application, on a form and in the manner prescribed by the |
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department [commission], accompanied by a $25 license fee. |
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(c) An organization may not receive more than 24 [six] |
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temporary licenses in the 12-month period following the issuance or |
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renewal of the organization's license to conduct bingo [a calendar
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year]. |
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(f) An authorized organization that holds an annual [a
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regular] license to conduct bingo may apply for all or any portion |
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of the total number of temporary licenses to which the organization |
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is entitled under Subsection (c) [(e)] in one application without |
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stating the days or times for which the organization will use the |
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temporary licenses. |
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(g) An organization that has been issued a temporary license |
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under Subsection (f) shall notify the department [commission] of |
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the specific date and time of the bingo occasion for which the |
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temporary license will be used before using the license. [If the
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commission receives the notification by noon of the day before the
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day the temporary license will be used, the commission shall verify
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receipt of the notice before the end of the business day on which
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the notice is received. If the commission does not receive the
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notification by noon of the day before the day the temporary license
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will be used, the commission shall verify receipt of the notice
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before noon of the business day that follows the day the commission
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received the notice.] |
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SECTION 1.014. Sections 2001.104(a), (d), and (e), |
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Occupations Code, are amended to read as follows: |
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(a) The commission by rule shall set the fees for a license |
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to conduct bingo based on the amount of the licensed authorized |
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organization's total receipts derived from the conduct of bingo and |
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in an amount reasonable to defray the department's administrative |
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costs but not less than the following: |
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(1) Class A (annual [gross] receipts of not more than |
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$75,000)-$300 [$25,000 or less)-$100]; |
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(2) Class B (annual [gross] receipts of more than |
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$75,000 [$25,000] but not more than $200,000)-$900 |
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[$50,000)-$200]; |
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(3) Class C (annual [gross] receipts of more than |
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$200,000 [$50,000] but not more than $400,000)-$2,000 |
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[$75,000)-$300]; and |
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(4) Class D (annual [gross] receipts of more than |
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[$75,000 but not more than $100,000)-$400;
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[(5)
Class E (annual gross receipts of more than
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$100,000 but not more than $150,000)-$600;
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[(6)
Class F (annual gross receipts of more than
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$150,000 but not more than $200,000)-$900;
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[(7)
Class G (annual gross receipts of more than
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$200,000 but not more than $250,000)-$1,200;
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[(8)
Class H (annual gross receipts of more than
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$250,000 but not more than $300,000)-$1,500;
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[(9)
Class I (annual gross receipts of more than
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$300,000 but not more than $400,000)-$2,000; and
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[(10) Class J (annual gross receipts of more than] |
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$400,000)-$2,500. |
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(d) An applicant shall pay the fees established under |
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Subsection (a) annually. [An applicant for a license or renewal of
|
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a license may obtain a license that is effective for two years by
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paying an amount equal to two times the amount of the annual license
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fee.] |
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(e) A licensed authorized organization may pay in advance, |
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or establish an escrow account with the department [commission] to |
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cover, fees assessed under this chapter for the amendment of a |
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license or issuance of a temporary license. |
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SECTION 1.015. Section 2001.105, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.105. LICENSE ISSUANCE OR RENEWAL; DISCIPLINARY |
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ACTION FOR CERTAIN CONVICTIONS. (a) The department [commission] |
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shall issue or renew a license to conduct bingo on payment of the |
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license fee provided by Section 2001.104 if the department |
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[commission] determines that: |
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(1) the member or members of the applicant designated |
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in the application to conduct bingo are active members of the |
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applicant; |
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(2) the bingo is to be conducted in accordance with |
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this chapter; |
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(3) the proceeds of the bingo are to be disposed in |
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accordance with this chapter; |
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(4) the applicant has made and can demonstrate |
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significant progress toward the accomplishment of the purposes of |
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the organization during the 12 months preceding the date of |
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application for a license or license renewal; and |
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(5) all persons who will conduct, promote, or |
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administer the proposed bingo are active members of the applicant |
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organization and all other persons who will assist in conducting, |
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promoting, or administering the proposed bingo games are persons |
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authorized [to do so] by the applicant [Section 2001.411; and
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[(6)
no person under whose name bingo will be
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conducted and no person working at the proposed bingo has been
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convicted of a gambling offense or criminal fraud]. |
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(b) The department [commission] may not issue a license to |
|
an authorized organization to conduct bingo if an officer or member |
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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. |
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(b-1) The department may not take disciplinary action |
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against a licensed authorized organization that has on file for a |
|
person described by Subsection (b) or an organization employee a |
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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: |
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(1) the department shall immediately notify the |
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organization of the conviction; and |
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(2) the organization is prohibited from allowing the |
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person or employee to conduct bingo for the organization after |
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receipt of the notification. |
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(b-2) The department may take disciplinary action against |
|
an organization that allows a person described by Subsection (b) or |
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organization employee to conduct bingo for the organization after |
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the date the organization receives the notification required under |
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Subsection (b-1)(1). |
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(c) A [Except as provided by Section 2001.104(d), a] license |
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issued under this subchapter is effective for one year. |
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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; |
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(2) administering and operating bingo; and |
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(3) promoting bingo. |
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(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 |
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department [commission] determines to be necessary to promote the |
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fair conduct of bingo and compliance with this chapter. |
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SECTION 1.017. Section 2001.108, Occupations Code, is |
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amended to read as follows: |
|
Sec. 2001.108. LICENSE AMENDMENT FOR CHANGE OF BINGO |
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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 |
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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
|
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the time provided by Subsection (b) or (c), the licensed authorized
|
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organization may act as if the change in premises or bingo occasions
|
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has been approved by the commission and may conduct bingo at the new
|
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premises or during the new bingo occasion until the commission acts
|
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on the application.
|
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[(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 |
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to read as follows: |
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Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is |
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subject to Chapter 325 (Texas Sunset Act). Unless continued in |
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existence as provided by that chapter, the commission is abolished |
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and this chapter and [,] Chapter 466 [of this code, and Chapter
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2001, Occupations Code,] expire September 1, 2025. |
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SECTION 1.078. Sections 467.024(a) and (c), Government |
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Code, are amended to read as follows: |
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(a) An individual is not eligible to be an appointed member |
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of the commission if the individual: |
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(1) is registered, certified, or licensed by a |
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regulatory agency in the field of [bingo or] lottery; |
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(2) owns or controls, directly or indirectly, more |
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than a 10 percent interest in a business entity or other |
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organization regulated by the commission or receiving funds from |
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the commission; |
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(3) is employed by or participates in the management |
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of a business entity or other organization regulated by or |
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receiving funds from the commission; |
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(4) uses or receives a substantial amount of tangible |
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goods, services, or funds from the commission, other than |
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compensation or reimbursement authorized by law for commission |
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membership, attendance, or expenses; |
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(5) is an officer, employee, or paid consultant of a |
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Texas trade association in the field of [bingo or] lottery; |
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(6) is required to register as a lobbyist under |
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Chapter 305 because of the person's activities for compensation on |
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behalf of a profession related to the operation of the commission; |
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(7) is married to an individual described by |
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Subdivisions (2)-(6); |
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(8) has been convicted of a felony or of any crime |
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involving moral turpitude; or |
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(9) is not a citizen of the United States. |
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(c) A person may not be a commission employee employed in a |
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"bona fide executive, administrative, or professional capacity," |
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as that phrase is used for purposes of establishing an exemption to |
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the overtime provisions of the federal Fair Labor Standards Act of |
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1938 (29 U.S.C. Section 201 et seq.), if: |
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(1) the person is an officer, employee, or paid |
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consultant of a Texas trade association in the field of [bingo or] |
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lottery; or |
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(2) the person's spouse is an officer, manager, or paid |
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consultant of a Texas trade association in the field of [bingo or] |
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lottery. |
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SECTION 1.079. Section 467.025(a), Government Code, is |
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amended to read as follows: |
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(a) A commission member may not: |
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(1) accept any employment or remuneration from[:
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[(A)] a person that has a significant financial |
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interest in the lottery[; or
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[(B)
a bingo commercial lessor, bingo
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distributor, or bingo manufacturer]; |
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(2) play any lottery [or bingo] game conducted in this |
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state; |
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(3) accept or be entitled to accept any part of the |
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winnings to be paid from a lottery [or bingo] game conducted in this |
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state; |
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(4) use the member's official authority to affect the |
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result of an election or nomination for public office; or |
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(5) directly or indirectly coerce, attempt to coerce, |
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command, or advise a person to pay, lend, or contribute anything of |
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value to another person for political purposes. |
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SECTION 1.080. Section 467.033, Government Code, is amended |
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to read as follows: |
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Sec. 467.033. DIRECTOR OF LOTTERY OPERATIONS [DIVISION
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DIRECTORS]. The executive director shall employ a director of |
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lottery operations who [to oversee each division. A division
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director] serves at the will of the executive director and is |
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specifically exempted from Chapter 654. |
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SECTION 1.081. Section 467.035(a), Government Code, is |
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amended to read as follows: |
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(a) The commission may not employ or continue to employ a |
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person who owns a financial interest in[:
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[(1)
a bingo commercial lessor, bingo distributor, or
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bingo manufacturer; or
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[(2)] a lottery sales agency or a lottery operator. |
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SECTION 1.082. Sections 467.101(a) and (c), Government |
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Code, are amended to read as follows: |
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(a) The commission has broad authority and shall exercise |
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strict control and close supervision over all activities authorized |
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and conducted in this state under[:
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[(1) Chapter 2001, Occupations Code; and
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[(2)] Chapter 466 [of this code]. |
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(c) The commission also has the powers and duties granted |
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under[:
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[(1) Chapter 2001, Occupations Code; and
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[(2)] Chapter 466 [of this code]. |
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SECTION 1.083. Section 467.111(f), Government Code, is |
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amended to read as follows: |
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(f) The commission shall prepare a report on the trends and |
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issues identified under Subsection (e) and make the report |
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available to the public. The commission shall address the |
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identified trends and issues, including trends and issues related |
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to the regulation of lottery operations under Chapter 466 [and of
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bingo under Chapter 2001, Occupations Code]. |
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SECTION 1.084. (a) Sections 467.021(c) and 467.031, |
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Government Code, are repealed. |
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(b) The following provisions of the Occupations Code are |
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repealed: |
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(1) Section 2001.051(c); |
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(2) Section 2001.052; |
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(3) Section 2001.0541; |
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(4) Section 2001.058; |
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(5) Section 2001.060(b); |
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(6) Section 2001.101(b); |
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(7) Sections 2001.103(e) and (h); |
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(8) Section 2001.157; |
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(9) Section 2001.158(d); |
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(10) Section 2001.159(c); |
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(11) Sections 2001.211(b), (c), and (d); |
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(12) Section 2001.213; |
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(13) Section 2001.214(b); |
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(14) Section 2001.304; |
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(15) Section 2001.305; |
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(16) Section 2001.308; |
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(17) Section 2001.313; |
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(18) Section 2001.314; |
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(19) Section 2001.351; |
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(20) Section 2001.352; |
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(21) Section 2001.353(d); |
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(22) Section 2001.354; |
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(23) Section 2001.355; |
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(24) Section 2001.356; |
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(25) Section 2001.357; |
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(26) Section 2001.358; |
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(27) Section 2001.436(c); |
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(28) Section 2001.437(f); |
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(29) Section 2001.451(b-1); |
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(30) Section 2001.459(b); |
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(31) Section 2001.501; |
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(32) Section 2001.503; |
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(33) Sections 2001.504(b), (c), (d), and (e); |
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(34) Section 2001.507; |
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(35) Section 2001.508; |
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(36) Section 2001.509; |
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(37) Section 2001.510; |
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(38) Section 2001.511; |
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(39) Section 2001.512; |
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(40) Section 2001.513; |
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(41) Section 2001.514; |
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(42) Section 2001.515; |
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(43) Section 2001.553; |
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(44) Section 2001.602; |
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(45) Section 2001.603; |
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(46) Section 2001.604; |
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(47) Section 2001.605; |
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(48) Section 2001.606; |
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(49) Section 2001.607; |
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(50) Section 2001.608; |
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(51) Section 2001.609; |
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(52) Section 2001.610; and |
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(53) Section 2001.611. |
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(c) Section 10, Chapter 1057 (H.B. 3021), Acts of the 74th |
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Legislature, Regular Session, 1995, is repealed. |
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SECTION 1.085. (a) On September 1, 2015: |
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(1) all functions and activities performed by the |
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Texas Lottery Commission relating to the regulation of bingo |
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operations under Chapter 2001, Occupations Code, immediately |
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before that date are transferred to the Texas Department of |
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Licensing and Regulation; |
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(2) a rule, policy, procedure, decision, or form |
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adopted by the Texas Lottery Commission relating to Chapter 2001, |
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Occupations Code, is a rule, policy, procedure, decision, or form |
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of the Texas Commission of Licensing and Regulation or the Texas |
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Department of Licensing and Regulation, as applicable, and remains |
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in effect until amended or replaced by that commission or |
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department unless the rule, policy, procedure, decision, or form |
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conflicts with the changes in law made by this Act; |
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(3) unless the context clearly indicates otherwise, a |
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reference to the Texas Lottery Commission in a law or |
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administrative rule that relates to Chapter 2001, Occupations Code, |
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means the Texas Commission of Licensing and Regulation or the Texas |
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Department of Licensing and Regulation, as applicable; |
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(4) a complaint, investigation, or other proceeding |
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before the Texas Lottery Commission that is related to Chapter |
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2001, Occupations Code, is transferred without change in status to |
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the Texas Department of Licensing and Regulation, and the Texas |
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Department of Licensing and Regulation assumes, as appropriate and |
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without a change in status, the position of the Texas Lottery |
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Commission in an action or proceeding to which the Texas Lottery |
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Commission is a party; |
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(5) a license, permit, certification, or registration |
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in effect that was issued by the Texas Lottery Commission under |
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Chapter 2001, Occupations Code, is continued in effect as a |
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license, permit, certification, or registration of the Texas |
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Department of Licensing and Regulation; |
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(6) all money, contracts, leases, property, and |
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obligations of the Texas Lottery Commission relating to Chapter |
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2001, Occupations Code, are transferred to the Texas Department of |
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Licensing and Regulation; and |
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(7) the unexpended and unobligated balance of any |
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money appropriated by the legislature for the Texas Lottery |
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Commission related to Chapter 2001, Occupations Code, is |
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transferred to the Texas Department of Licensing and Regulation. |
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(b) On September 1, 2015, all full time equivalent employee |
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positions at the Texas Lottery Commission that primarily concern |
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the administration, auditing, accounting, enforcement, or other |
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direct and indirect support of Chapter 2001, Occupations Code, |
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become positions at the Texas Department of Licensing and |
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Regulation. When filling the positions, the Texas Department of |
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Licensing and Regulation shall give first consideration to an |
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applicant who, as of August 31, 2015, was an employee at the Texas |
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Lottery Commission primarily involved in administering or |
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enforcing Chapter 2001, Occupations Code. |
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(c) Not later than June 1, 2015, the Texas Lottery |
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Commission shall grant the Texas Department of Licensing and |
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Regulation inquiry-only security access to: |
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(1) all licensing, enforcement, and examination |
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software or computer systems used by the Texas Lottery Commission |
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in administering or enforcing Chapter 2001, Occupations Code; and |
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(2) the uniform statewide accounting system, the state |
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property accounting system, the uniform statewide payroll system, |
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and the human resources information system for the Texas Lottery |
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Commission. |
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(d) Before September 1, 2015, the Texas Lottery Commission |
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may agree with the Texas Department of Licensing and Regulation to |
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transfer any property of the Texas Lottery Commission to the Texas |
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Department of Licensing and Regulation to implement the transfers |
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required by this Act. |
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(e) The Texas Department of Licensing and Regulation and the |
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Texas Lottery Commission shall coordinate implementation of this |
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section. The Texas Lottery Commission shall cooperate with the |
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Texas Department of Licensing and Regulation in transferring all |
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data and records necessary to implement the transfers required by |
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this Act. |
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(f) Before July 15, 2015, the Texas Lottery Commission and |
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the Texas Department of Licensing and Regulation shall develop and |
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enter into a memorandum of understanding regarding the transfers |
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required by this Act. The memorandum must include a transition plan |
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with a timetable and specific steps and deadlines required to |
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complete the transfer. |
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(g) Not later than December 1, 2015, a manufacturer of bingo |
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equipment or supplies that submitted to the Texas Lottery |
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Commission a bond as required under Section 2001.204, Occupations |
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Code, before September 1, 2015, that is in effect on the effective |
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date of this Act must amend the bond to name the Texas Department of |
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Licensing and Regulation as the payee for the bond. |
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(h) A bond given by an applicant for a manufacturer's |
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license as required by Section 2001.204, Occupations Code, as |
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amended by this Act, on or after the effective date of this Act must |
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comply with Subchapter E, Chapter 2001, Occupations Code, as |
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amended by this Act. |
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SECTION 1.086. (a) The repeal by this Act of Section |
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2001.553, Occupations Code, does not apply to an offense committed |
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under that section before September 1, 2015. For purposes of this |
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section, an offense is committed before September 1, 2015, if any |
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element of the offense occurs before that date. |
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(b) An offense committed before September 1, 2015, is |
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covered by that section as it existed when the offense was |
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committed, and the former law is continued in effect for that |
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purpose. |
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SECTION 1.087. The changes in law made by this Act to |
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Chapter 2001, Occupations Code, apply only to a tax or fee charged |
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on or after September 1, 2015. A tax or fee charged before |
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September 1, 2015, is governed by the law in effect immediately |
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before that date, and the former law is continued in effect for that |
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purpose. |
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SECTION 1.088. (a) The governing body of a county or |
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municipality that was entitled to receive a portion of the prize fee |
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collected under former Section 2001.503, Occupations Code, as that |
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section existed immediately before the effective date of this Act, |
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may only continue receiving a portion of the prize tax collected |
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under Section 2001.502, Occupations Code, as amended by this Act, |
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after the effective date of this Act if the governing body: |
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(1) by majority vote of the members of the governing |
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body approves the continued receipt of funds under that section and |
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notifies the Texas Department of Licensing and Regulation of that |
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decision not later than November 1, 2015; and |
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(2) notifies each licensed authorized organization |
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within the county's or municipality's jurisdiction, as applicable, |
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of the continued quarterly imposition of the tax and the payment |
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information for the tax, including the name to which a check for the |
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tax payment is made and the mailing address to which the tax payment |
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must be sent. |
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(b) Not later than October 1, 2015, the Texas Department of |
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Licensing and Regulation shall notify the governing body of a |
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county or municipality that was entitled to receive a portion of the |
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prize fee collected under former Section 2001.503, Occupations |
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Code, as that section existed immediately before the effective date |
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of this Act, of the requirements for continued receipt of the prize |
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tax under that section as provided in Subsection (a) of this |
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section. |
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SECTION 1.089. (a) Not later than March 1, 2016, the Texas |
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Commission of Licensing and Regulation shall adopt the rules |
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necessary to implement the changes in law made by this Act. |
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(b) Section 2001.451, Occupations Code, as amended by this |
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Act, applies beginning January 1, 2016. |
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(c) Section 2001.502, Occupations Code, as amended by this |
|
Act, applies to prize taxes collected on and after January 1, 2016. |
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Prize taxes collected before that date are governed by the law in |
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effect immediately before the effective date of this Act, and that |
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law continues in effect for that purpose. |
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ARTICLE 2. REGULATION OF AMUSEMENT REDEMPTION MACHINE GAME ROOMS |
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ON LICENSED BINGO PREMISES |
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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 |
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234.1331 to read as follows: |
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Sec. 234.1331. LICENSED BINGO PREMISES. (a) Except as |
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otherwise provided by this section, regulations adopted by the |
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commissioners court of a county as authorized by Section 234.133 |
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apply to a location at which bingo is conducted under Chapter 2001, |
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Occupations Code, in the same manner as the regulations apply to |
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other premises subject to the regulations. |
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(b) This subsection applies only to a location at which |
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bingo was conducted on or before January 1, 2015, under a license |
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issued under Chapter 2001, Occupations Code. The regulations |
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authorized by Section 234.133 may not: |
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(1) restrict or prohibit the location of a game room at |
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a location to which this subsection applies; |
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(2) require signage or place regulations on the |
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windows or doors of a location to which this subsection applies; |
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(3) restrict the hours of operation of a game room at a |
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location to which this subsection applies; or |
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(4) apply to a location to which this subsection |
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applies in a manner that is different from a location that derives |
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more than 50 percent of its sales from the sale of food or |
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beverages, including alcohol and liquor sales. |
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SECTION 2.02. The following provisions are repealed: |
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(1) Section 234.132, Local Government Code, as added |
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by Chapter 1377 (H.B. 1127), Acts of the 83rd Legislature, Regular |
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Session, 2013; and |
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(2) Subchapter E, Chapter 234, Local Government Code, |
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as added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, |
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Regular Session, 2013. |
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ARTICLE 3. EFFECTIVE DATE |
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SECTION 3.01. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect September 1, 2015. |
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(b) Section 1.085 of this Act takes effect immediately if |
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this Act receives a vote of two-thirds of all the members elected to |
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each house, as provided by Section 39, Article III, Texas |
|
Constitution. If this Act does not receive the vote necessary for |
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immediate effect, that section takes effect September 1, 2015. |