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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of charitable bingo and amusement |
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redemption machine game rooms; requiring an occupational permit; |
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authorizing fees; creating civil and administrative penalties. |
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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 1.01. Sections 2001.002(13) and (18), Occupations |
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Code, are amended to read as follows: |
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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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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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SECTION 1.02. Section 2001.057(a), Occupations Code, is |
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amended to read as follows: |
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(a) The commission shall [may] appoint a bingo advisory |
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committee consisting of nine members. The commission shall appoint |
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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; and |
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(4) distributors. |
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SECTION 1.03. 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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commission shall prepare and deliver to the governor, the |
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lieutenant governor, the speaker of the house of representatives, |
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and the chairs of the standing committees of the senate and house of |
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representatives with primary jurisdiction over charitable bingo a |
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report stating for each of the preceding two 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 commission shall |
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determine the total amount of net proceeds in a manner that does not |
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include [reduce gross receipts by] the amount of rent paid for the |
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rental of bingo premises by a licensed authorized organization to |
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another licensed authorized organization if the other organization |
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pays rent for the premises to a licensed commercial lessor. |
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SECTION 1.04. Section 2001.104, Occupations Code, is |
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amended by amending Subsections (a) and (d) and adding Subsection |
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(d-1) to read as follows: |
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(a) The commission shall set the fees for a license to |
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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 administrative costs but not less |
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than the following: |
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(1) Class A (annual [gross] receipts of $25,000 or |
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less)-$100; |
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(2) Class B (annual [gross] receipts of more than |
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$25,000 but not more than $50,000)-$200; |
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(3) Class C (annual [gross] receipts of more than |
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$50,000 but not more than $75,000)-$300; |
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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) Except as provided by Subsection (d-1), an [An] |
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applicant shall pay the fees established under Subsection (a) |
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annually. |
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(d-1) An applicant for a license or renewal of a license may |
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obtain a license that is effective for two years by paying [an
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amount equal to two times the amount of] the annual license fee |
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before the beginning of each year of the two-year license. |
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SECTION 1.05. Section 2001.307, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.307. MAXIMUM LICENSE TERM. A [Except as
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otherwise provided by this chapter, a] license issued under this |
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chapter may not be effective for more than two years [one year]. |
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SECTION 1.06. Section 2001.313, Occupations Code, is |
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amended by amending Subsections (a) and (b-2) and adding |
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Subsections (j) and (k) to read as follows: |
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(a) To minimize duplicate criminal history background |
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checks by the commission and the costs incurred by organizations |
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and individuals, the commission shall maintain a registry of |
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individuals on whom the commission has conducted a criminal history |
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background check, or another person authorized under Subsection (j) |
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has conducted a criminal history background check and has submitted |
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the background check to the commission, and who are approved to be |
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involved in the conduct of bingo or to act as a bingo operator. |
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(b-2) The commission by rule may impose a fee for an initial |
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registration application and renewal application submitted under |
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this section and on an individual for whom the commission conducts a |
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criminal history background check. The commission shall set the |
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fees [fee] in amounts [an amount] sufficient to cover the |
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application processing costs, including the [a] criminal history |
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background check, identification card, and other administrative |
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costs the commission considers appropriate. |
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(j) A person other than an individual whose name is included |
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on an initial or renewal license application under this chapter may |
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obtain a criminal history background check to submit under this |
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section from: |
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(1) the Department of Public Safety, including through |
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the use of the department's online criminal history background |
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check service; |
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(2) a local law enforcement agency, including through |
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the use of the agency's online criminal history background check |
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service; or |
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(3) the commission. |
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(k) A criminal history background check for an individual |
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whose name is included on an initial or renewal license application |
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under this chapter must be performed by the commission. |
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SECTION 1.07. Section 2001.314(b), Occupations Code, is |
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amended to read as follows: |
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(b) The commission may [shall] provide the identification |
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card and [shall provide] a form to be completed by an individual |
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that allows the individual to prepare the identification card. The |
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commission may collect a reasonable charge to cover the cost of |
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providing the card or form. |
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SECTION 1.08. Section 2001.409, Occupations Code, is |
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amended by adding Subsection (b) to read as follows: |
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(b) Nothing in this chapter shall be construed as |
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authorizing any game using a video lottery machine or machines. In |
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this section "video lottery machine" or "machine" means any |
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electronic video game machine that, on insertion of cash, is |
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available to play or simulate the play of a video game, including |
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but not limited to video poker, keno, and blackjack, utilizing a |
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video display and microprocessor in which the player may receive |
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free games or credits that can be redeemed for cash, coins, or |
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tokens or that directly dispenses cash, coins, or tokens. |
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SECTION 1.09. Section 2001.414, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.414. BINGO RECORDS. (a) The commission by rule |
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may provide for different recordkeeping procedures for licensed |
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authorized organizations by class based on the amount of the |
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organization's total [gross] receipts derived from the conduct of |
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bingo [of the organization]. |
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(b) An organization conducting bingo must record on a cash |
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register all transactions for which it receives total [bingo gross] |
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receipts derived from the conduct of bingo in conformance with |
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commission rules relating to transaction recording specifications. |
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SECTION 1.10. Section 2001.420, Occupations Code, is |
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amended by adding Subsections (b-1), (d), (e), (f), and (g) to read |
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as follows: |
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(b-1) For purposes of Subsections (a) and (b), the value of |
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a merchandise bingo prize is the amount paid for the merchandise by |
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the licensed authorized organization. A merchandise bingo prize |
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includes bingo cards, bingo pull-tabs, the use of a card-minder, |
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bingo daubers, and other bingo merchandise awarded as a prize for |
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winning a bingo game. |
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(d) The commission may adopt for a bingo market region in |
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this state rules that affect the percentage of total receipts |
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derived from the conduct of bingo that is paid by licensed |
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authorized organizations within that market region as prizes for |
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bingo games if the commission determines that the percentages of |
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the total receipts paid for the prizes by the organizations within |
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that market region unreasonably reduce the amount of the |
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organizations' net proceeds in that market region. |
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(e) A rule adopted under Subsection (d): |
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(1) may establish a minimum price charged for a bingo |
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card or pull-tab or for use of a card-minding device; |
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(2) must allow flexibility in compliance with the rule |
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by the licensed authorized organizations within the affected bingo |
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market region to allow the organizations to achieve substantial |
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compliance without undue burden on the organizations or their |
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customers; and |
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(3) must apply equally to each licensed authorized |
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organization operating at a bingo premises within the bingo market |
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region. |
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(f) An individual bingo market region set by the commission |
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must include all the territory in a single county and may include |
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part of the territory in an adjacent county as necessary for the |
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commission to define a bingo market region under Subsection (d). |
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(g) The commission shall annually review the impact of a |
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rule adopted under Subsection (d) on the conduct of bingo within the |
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bingo market region and may amend or repeal the rule if the rule |
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does not serve the purposes of Subsection (d). |
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SECTION 1.11. Sections 2001.451(d), (e), and (g), |
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Occupations Code, are amended to read as follows: |
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(d) Except as permitted by Subsection (c), a licensed |
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authorized organization may not commingle [gross] receipts derived |
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from the conduct of bingo with other funds of the organization. |
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(e) Except as permitted by Subsection (c) of this section |
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and by Section 2001.453(2), a licensed authorized organization may |
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not transfer [gross] receipts derived from the conduct of bingo to |
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another account maintained by the organization. |
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(g) The bingo operations of a licensed authorized |
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organization must: |
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(1) result in net proceeds in the amounts provided by |
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Section 2001.460 over the calendar year in which the license is in |
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effect [the organization's license period]; or |
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(2) if the organization has a two-year license, result |
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in net proceeds in the amounts provided by Section 2001.460 over |
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each calendar year in which [12-month period that ends on an
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anniversary of the date] the two-year license is in effect [was
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issued]. |
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SECTION 1.12. Subchapter J, Chapter 2001, Occupations Code, |
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is amended by adding Section 2001.460 to read as follows: |
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Sec. 2001.460. REQUIRED MINIMUM NET PROCEEDS. (a) If the |
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combined gross gaming revenue of the licensed authorized |
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organizations located at a single bingo premises exceeds $500,000 |
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in a calendar year, the combined net proceeds of those |
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organizations for that calendar year may not be less than 10 percent |
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of the combined gross gaming revenue of those organizations. |
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(a-1) Notwithstanding Subsection (a), if the combined gross |
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gaming revenue of the licensed authorized organizations located at |
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a single bingo premises exceeds $500,000 in a calendar year, the |
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combined net proceeds of those organizations may not be: |
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(1) in 2016, less than six percent of the combined |
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gross gaming revenue of those organizations; and |
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(2) in 2017, less than eight percent of the combined |
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gross gaming revenue of those organizations. |
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(b) If the combined gross gaming revenue of the licensed |
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authorized organizations located at a single bingo premises is |
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equal to $500,000 or less in a calendar year, the combined net |
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proceeds of those organizations for that calendar year may not be |
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less than five percent of the combined gross gaming revenue of those |
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organizations. |
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(b-1) Notwithstanding Subsection (b) and subject to |
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Subsection (c), if the combined gross gaming revenue of the |
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licensed authorized organizations located at a single bingo |
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premises is equal to $500,000 or less in a calendar year, the |
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combined net proceeds of those organizations for that calendar year |
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may not be: |
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(1) in 2016, less than three percent of the combined |
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gross gaming revenue of those organizations; and |
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(2) in 2017, less than four percent of the combined |
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gross gaming revenue of those organizations. |
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(c) A licensed authorized organization located at a bingo |
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premises described by Subsection (b) that conducts not more than |
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two bingo occasions during any week during a calendar year is exempt |
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from the requirements of Subsection (b). The commission by rule may |
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impose minimum net proceeds requirements in amounts less than the |
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amounts required under Subsection (b) on the organizations located |
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at a premises to which this subsection applies. |
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(c-1) This subsection applies only to a bingo premises that |
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on January 1, 2015, was operated under an active lessor license and |
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was located in a county any part of which is within 75 miles of a |
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casino that has electronic gaming. Notwithstanding any other |
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subsection of this section, the minimum net proceeds requirement |
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for a single bingo premises described by this subsection during a |
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calendar year is: |
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(1) for a single bingo premises at which the licensed |
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authorized organizations have a combined gross gaming revenue that |
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exceeds $500,000, the lesser of: |
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(A) the amount determined using the percentage |
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required by this section; or |
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(B) $12,000 multiplied by the number of licensed |
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authorized organizations conducting bingo at that premises; and |
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(2) for a single bingo premises at which the licensed |
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authorized organizations have a combined gross gaming revenue equal |
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to $500,000 or less, the lesser of: |
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(A) the amount determined using the percentage |
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required by this section; or |
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(B) $6,000 multiplied by the number of licensed |
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authorized organizations conducting bingo at that premises. |
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(c-2) This subsection and Subsections (a-1), (b-1), and |
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(c-1) expire December 31, 2019. |
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(d) The commission shall waive or reduce the minimum net |
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proceeds required by this section if: |
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(1) bingo has been conducted at the bingo premises for |
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less than 12 months; |
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(2) circumstances beyond the control of the licensed |
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authorized organizations operating at the bingo premises, |
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including force majeure, prevented the organizations from |
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satisfying the minimum net proceeds percentage; |
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(3) the licensed authorized organizations present a |
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business plan that the commission determines reasonably |
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establishes procedures to satisfy the minimum net proceeds |
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percentage in the next calendar year; or |
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(4) legal or illegal gaming in the area of the bingo |
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premises affected the ability of the organizations to satisfy the |
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minimum net proceeds percentage. |
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(e) If the commission waives or reduces the minimum net |
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proceeds percentage required by this section because of illegal |
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gaming, the commission shall notify the county commissioners court |
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of the county in which each affected bingo premises is located and |
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the governing body of any municipality in which the premises is |
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located of the commission's action and the reasons for that action. |
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SECTION 1.13. Section 2001.502, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.502. PRIZE FEE. (a) A licensed authorized |
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organization shall: |
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(1) collect from a person who wins a cash bingo prize |
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of more than $5 a fee in the amount of five percent of the amount [or
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value] of the prize; [and] |
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(2) remit to the comptroller [commission] a fee in the |
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amount of 2.5 [five] percent of the amount collected under this |
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section for distribution as required by Section 2001.503; and |
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(3) deposit the remainder of the fees collected under |
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this section in the general charitable fund of the organization [or
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value of all bingo prizes awarded]. |
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(b) The fee required under Subsection (a) does not apply to |
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a merchandise prize, including bingo cards, bingo pull-tabs, use of |
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a card-minder, bingo daubers, and other bingo merchandise awarded |
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as a prize for winning a bingo game. |
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SECTION 1.14. Section 2001.503, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.503. [LOCAL SHARE OF] PRIZE FEE DISTRIBUTION. |
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(a) Except as provided by Subsection (c), a county that imposed a |
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gross receipts tax on the conduct of bingo as of January 1, 1993, is |
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entitled to [50 percent of] the fee remitted to the comptroller |
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[collected] under Section 2001.502(2) [2001.502 on a prize awarded
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at a game conducted in the county]. |
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(b) Except as provided by Subsection (c), a municipality |
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that imposed a gross receipts tax on the conduct of bingo as of |
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January 1, 1993, is entitled to [50 percent of] the fee remitted to |
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the comptroller [collected] under Section 2001.502(2) [2001.502 on
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a prize awarded at a game conducted in the municipality]. |
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(c) If a county and municipality are both entitled to [a
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share of] the fee remitted to the comptroller under [imposed by] |
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Section 2001.502(2) [2001.502]: |
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(1) the county is entitled to 50 [25] percent of the |
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fee [on a prize awarded at a game conducted in the county]; and |
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(2) the municipality is entitled to 50 [25] percent of |
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the fee [on a prize awarded at a game conducted in the
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municipality]. |
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SECTION 1.15. Section 2001.505(a), Occupations Code, is |
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amended to read as follows: |
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(a) A licensed authorized organization conducting bingo |
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shall submit quarterly to the commission a report under oath |
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stating: |
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(1) the amount of the [gross] receipts derived from |
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the conduct of bingo; |
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(2) each item of expense incurred or paid; |
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(3) each item of expenditure made or to be made, the |
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name and address of each person to whom each item has been paid or is |
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to be paid, and a detailed description of the merchandise purchased |
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or the services rendered; |
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(4) the net proceeds derived from bingo; |
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(5) the use to which the proceeds have been or are to |
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be applied; and |
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(6) a list of prizes offered and given, with their |
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respective values. |
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SECTION 1.16. Section 2001.507, Occupations Code, is |
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amended to read as follows: |
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Sec. 2001.507. COLLECTION AND DISBURSEMENT OF PRIZE FEE. |
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(a) The comptroller [commission] shall deposit the revenue |
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collected from the fee on prizes imposed by Section 2001.502 to the |
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credit of a special account in the general revenue fund. |
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(b) The comptroller [commission] shall determine the total |
|
amount of revenue deposited in the account from prizes awarded at |
|
games in a county or municipality entitled to a fee [share] under |
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Section 2001.503. |
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(c) The comptroller [commission] shall send quarterly to a |
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county or municipality entitled to [a share of] the fee on prizes |
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the amount required [county's or municipality's share as provided] |
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by Section 2001.503. |
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(d) [The commission shall transfer any remaining amounts in
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the account to a nondedicated account in the general revenue fund.
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[(e)] The comptroller [commission] shall transmit a |
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jurisdiction's [share of the] fee on prizes to the treasurer or the |
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officer of the jurisdiction performing the functions of the |
|
treasurer's office payable to the jurisdiction. The amount |
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transmitted may be used by the jurisdiction for any purpose for |
|
which the general funds of the jurisdiction may be used. |
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(e) [(f)] The comptroller [commission] may retain in a |
|
jurisdiction's suspense account a portion of the jurisdiction's |
|
[share of the] fee on prizes collected under this chapter. The |
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amount retained in the suspense account may not exceed five percent |
|
of the amount remitted to the jurisdiction. The comptroller |
|
[commission] may make refunds from the suspense account of a |
|
jurisdiction for overpayments made to those accounts and may redeem |
|
dishonored checks and drafts deposited to the credit of the |
|
jurisdiction's suspense account. |
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(f) [(g)] If a jurisdiction entitled to a [share of the] fee |
|
on prizes prohibits the conduct of bingo under Sections |
|
2001.651-2001.656, the comptroller [commission] may retain in the |
|
suspense account of the jurisdiction for one year five percent of |
|
the final remittance to that jurisdiction. The amount retained in |
|
the suspense account may be used to cover possible overpayment of |
|
the jurisdiction's portion of the fee and to redeem dishonored |
|
checks and drafts deposited to the credit of the account. One year |
|
after the effective date of the prohibition of bingo in the |
|
jurisdiction, the comptroller [commission] shall remit the balance |
|
in the account to the jurisdiction and close the account. |
|
(g) [(h)] Interest earned on all fees on prizes collected by |
|
the comptroller [commission] under this chapter before |
|
distribution to a local jurisdiction, including interest earned |
|
from the suspense accounts retained under this section, shall be |
|
credited to the general revenue fund. |
|
SECTION 1.17. 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. |
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SECTION 1.18. (a) The following provisions of the |
|
Occupations Code are repealed: |
|
(1) Section 2001.060(b); |
|
(2) Section 2001.305; |
|
(3) Section 2001.436(c); and |
|
(4) Section 2001.459(b). |
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(b) Section 10, Chapter 1057 (H.B. 3021), Acts of the 74th |
|
Legislature, Regular Session, 1995, is repealed. |
|
SECTION 1.19. (a) Not later than December 1, 2015, the Texas |
|
Lottery Commission shall: |
|
(1) adopt the rules necessary to implement the changes |
|
in law made by this Act; and |
|
(2) send to the comptroller a report on the prize fees |
|
collected by the commission under Section 2001.502, Occupations |
|
Code, as that section existed before amendment by this Act, in the |
|
two years preceding the effective date of this Act and specify the |
|
licensed authorized organizations that have paid the fee in a |
|
timely or untimely manner. |
|
(b) A licensed authorized organization that is listed on the |
|
report required under Subsection (a)(2) of this section as paying |
|
timely is exempt from posting any bond required under Section |
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151.254, Tax Code. |
|
(c) Section 2001.451, Occupations Code, as amended by this |
|
Act, applies beginning January 1, 2016. |
|
(d) Section 2001.502, Occupations Code, as amended by this |
|
Act, applies to prize fees collected on and after the effective date |
|
of this Act. Prize fees collected before that date are governed by |
|
the law in effect on the date the fees were collected and that law |
|
continues in effect for that purpose. |
|
ARTICLE 2. REGULATION OF AMUSEMENT REDEMPTION MACHINE GAME ROOMS |
|
SECTION 2.01. Section 234.131, Local Government Code, as |
|
added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, |
|
Regular Session, 2013, is amended by adding Subdivisions (1-a), |
|
(1-b), (1-c), (5), (6), (7), and (8) to read as follows: |
|
(1-a) "Applicant" means a person, owner, corporation, |
|
partnership, or other business entity required to submit a game |
|
room application. |
|
(1-b) "Current fire inspection report" means a fire |
|
inspection report issued by a fire department not earlier than the |
|
60th day immediately preceding the date an application for issuance |
|
or renewal of a game room is filed. |
|
(1-c) "Gambling device" has the meaning assigned by |
|
Section 47.01, Penal Code. |
|
(5) "Peace officer" has the meaning assigned by |
|
Article 2.12, Code of Criminal Procedure. |
|
(6) "Public building" means a building used by |
|
federal, state, or local government that is open to the general |
|
public. |
|
(7) "Regulation" means a regulation adopted by a |
|
county in this state for the operation of a game room. |
|
(8) "School" means a facility, including all attached |
|
playgrounds, dormitories, stadiums, and other appurtenances that |
|
are part of the facility, used for the primary purpose of |
|
instruction or education, including primary or secondary schools, |
|
colleges, and universities, both public and private. |
|
SECTION 2.02. Section 234.134, Local Government Code, as |
|
added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, |
|
Regular Session, 2013, is amended to read as follows: |
|
Sec. 234.134. [LICENSES OR] PERMITS. (a) A county may |
|
require that an owner or operator of a game room obtain a [license
|
|
or] permit or renew a [license or] permit on a periodic basis to own |
|
or operate a game room in the county. An application for a [license
|
|
or] permit must be made in accordance with regulations adopted by |
|
the county. |
|
(b) Regulations adopted under this section may provide for |
|
the denial, suspension, or revocation of a [license or] permit. |
|
(c) A district court has jurisdiction of a suit that arises |
|
from the denial, suspension, or revocation of a [license or other] |
|
permit by a county. |
|
SECTION 2.03. Subchapter E, Chapter 234, Local Government |
|
Code, as added by Chapter 1284 (H.B. 2123), Acts of the 83rd |
|
Legislature, Regular Session, 2013, is amended by adding Sections |
|
234.1341 and 234.1342 to read as follows: |
|
Sec. 234.1341. PERMIT APPLICATION. (a) An owner or |
|
operator of a game room may not operate, use, or maintain any game |
|
room in a county that requires an owner or operator to obtain a |
|
permit under Section 234.134 unless the owner or operator holds a |
|
permit issued under this subchapter. |
|
(b) An applicant shall file a completed application with the |
|
county sheriff's office of the county in which the proposed game |
|
room will be located. The application shall be filed on the form |
|
provided by the office or on an accurate and legible copy of that |
|
form. The applicant must apply in person at the office. |
|
(c) The sheriff's office shall post a copy of the |
|
application form and the permit fee amount on the county's Internet |
|
website. The office shall establish the hours for submission of |
|
applications under this section. |
|
(d) The game room administrator of the sheriff's office |
|
shall mail notice of receipt of a completed application or notice of |
|
deficiencies in an application to the applicant not later than the |
|
10th day after the date the application is received by the office. |
|
(e) Each application must be accompanied by: |
|
(1) an annual inspection report that includes |
|
documentation of compliance with any previous correction ordered by |
|
the sheriff's office or a fire safety official; |
|
(2) a copy of the certification of occupancy or |
|
certification of compliance issued by a building official as |
|
appropriate for the proposed game room premises; |
|
(3) a diagram or the game room floor plan prepared by a |
|
licensed architect or engineer that includes the designed occupancy |
|
load and has been reviewed by the county clerk; |
|
(4) for a game room operating under an assumed name, a |
|
copy of the assumed name certificate filed in the county clerk's |
|
office that includes the file mark or stamp evidencing its filing; |
|
(5) a nonrefundable application fee in the amount |
|
established by the county commissioners court; and |
|
(6) a copy of the applicant's government-issued photo |
|
identification. |
|
(f) An applicant's failure to provide the information or |
|
documents required by this section or pay the fee required by |
|
Section 234.135 or a determination by the sheriff's office that |
|
inaccurate, erroneous, or incomplete information has been |
|
submitted is grounds for denial or revocation of the application. |
|
(g) If the sheriff's office denies a game room permit, the |
|
office shall give the applicant written notice of the basis for |
|
denial. |
|
Sec. 234.1342. PERMIT RENEWAL. A permit holder may |
|
annually renew the permit not earlier than 60 days before the date a |
|
permit expires by filing a completed application for the permit |
|
with the game room permit administrator of the sheriff's office and |
|
paying the applicable fee. A renewal application is subject to the |
|
same requirements as a permit application. |
|
SECTION 2.04. Section 234.135, Local Government Code, as |
|
added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, |
|
Regular Session, 2013, is amended to read as follows: |
|
Sec. 234.135. FEES; ISSUANCE OF PERMIT; PREMISES |
|
REQUIREMENTS. (a) A county may impose a fee not to exceed $1,000 on |
|
an applicant for a [license or] permit or for the renewal of the |
|
[license or] permit required under this subchapter. The fee must be |
|
based on the cost of processing the application and investigating |
|
the applicant. |
|
(b) An applicant shall pay the permit fee imposed under this |
|
section to the sheriff's office. On completion of the application |
|
process, the game room administrator of the sheriff's office shall |
|
give the applicant a signed receipt. The receipt constitutes a |
|
permit to operate the game room that is valid until the first |
|
anniversary of the date the permit is issued. |
|
(c) A person who holds a permit issued under this section |
|
must meet and comply with all requirements of law applicable to the |
|
game room premises or any activity conducted on the game room |
|
premises. The issuance of a permit under this section does not |
|
excuse or provide a defense to the permit holder, the permit |
|
holder's agents or employees, or any patrons of the game room for a |
|
violation of this subchapter or other law. |
|
SECTION 2.05. Section 234.136, Local Government Code, as |
|
added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, |
|
Regular Session, 2013, is amended to read as follows: |
|
Sec. 234.136. INSPECTION BY LAW ENFORCEMENT OFFICER. |
|
(a) A peace officer or county employee may inspect a business in |
|
the county to determine the number of amusement redemption machines |
|
subject to regulation under this subchapter that are located on the |
|
premises of the business. A peace officer is authorized to inspect |
|
any business for a violation of this subchapter. |
|
(a-1) This section does not authorize a right of entry |
|
otherwise prohibited by law. A peace officer may enter a business |
|
under this section with consent, with a warrant, or under exigent |
|
circumstances. A game room permit granted under this subchapter |
|
gives peace officers implied consent under this section to enter |
|
the premises of the game room. |
|
(a-2) A business for which a game room permit has not been |
|
issued under this subchapter that holds itself out as a game room, |
|
by sign, advertisement, word-of-mouth, offering of memberships, or |
|
any other means, is subject to inspection by a peace officer. |
|
Refusal to allow a peace officer entry to inspect the premises of |
|
the game room may be considered in establishing probable cause for |
|
the issuance of a search warrant to inspect for violations of this |
|
subchapter. |
|
(b) A peace officer or county employee may inspect any |
|
business in which six or more amusement redemption machines are |
|
located to determine whether the business is in compliance with |
|
this subchapter or regulations adopted under this subchapter or to |
|
inspect records required under Section 234.1362. |
|
(c) A person violates this subchapter if the person fails to |
|
allow a peace officer or county employee to conduct an inspection of |
|
a game room, an amusement redemption machine, or records required |
|
under Section 234.1362 or this section. |
|
SECTION 2.06. Subchapter E, Chapter 234, Local Government |
|
Code, as added by Chapter 1284 (H.B. 2123), Acts of the 83rd |
|
Legislature, Regular Session, 2013, is amended by adding Sections |
|
234.1361, 234.1362, 234.1363, 234.1364, 234.1365, and 234.1366 to |
|
read as follows: |
|
Sec. 234.1361. DISPLAY OF GAME ROOM PERMITS. An owner or |
|
operator of a game room shall display the valid game room permit |
|
issued to the owner or operator under this subchapter on the game |
|
room premises. The permit must be displayed in plain sight in a |
|
common area accessible to the public without entrance to a |
|
controlled area of the business. |
|
Sec. 234.1362. RECORDS REQUIRED. (a) An owner or operator |
|
of a game room shall maintain on the premises: |
|
(1) a record for each employee that includes: |
|
(A) the employee's name, address, date of birth, |
|
state identification number or social security number, job |
|
function, and W-2 or W-4 form; |
|
(B) a copy of the employee's application to work |
|
with the game room and a copy of the employee's I-9 filed for |
|
employment eligibility verification with the Department of |
|
Homeland Security; and |
|
(C) a photograph of the employee; |
|
(2) a daily register that includes the name, date of |
|
birth, state identification number or social security number, and |
|
job function of each employee present at the establishment that |
|
day; and |
|
(3) a copy of the county and state tax record forms |
|
required under Chapter 2153, Occupations Code, or other law for |
|
each amusement redemption machine on the premises that includes the |
|
name of the manufacturer, the serial number, the type of machine, |
|
and the serial number of the tax permit for a coin-operated machine |
|
and, if applicable, the serial number for the county tax permit, |
|
with the year of expiration for any tax permit. |
|
(b) An owner or operator who violates Subsection (a) shall |
|
be assessed a civil penalty of not more than $10,000 for each record |
|
required under this section that is missing. |
|
(c) The game room shall preserve the daily register required |
|
by Subsection (a)(2) for at least 90 days after the date the |
|
register was made. An owner or operator who violates this |
|
subsection may be assessed an administrative penalty in the amount |
|
of $500 for each register required to be preserved that is missing. |
|
Sec. 234.1363. PROHIBITED EMPLOYMENT; CIVIL PENALTY. (a) |
|
An owner or operator of a game room may not knowingly employ any |
|
person who has been previously convicted of, or entered a plea of |
|
nolo contendere or guilty or received deferred adjudication for, an |
|
offense involving any conduct involving gambling violations |
|
prohibited under Chapter 47, Penal Code. |
|
(b) An owner or operator of a game room shall conduct a |
|
criminal background check on each potential employee. |
|
(c) Failure to comply with this section is a violation and |
|
punishable by a civil penalty assessed against an owner or operator |
|
not to exceed $10,000 per prohibited employee working at the game |
|
room and per employee working at the game room without being |
|
subjected to a criminal background check. |
|
(d) Each day a violation of this section continues or occurs |
|
constitutes a separate violation for purposes of imposing a penalty |
|
under Section 234.137. |
|
Sec. 234.1364. AMUSEMENT REDEMPTION MACHINES; PERMITS AND |
|
VIOLATIONS. (a) An owner or operator of a game room shall obtain |
|
from the county a permit for each amusement redemption machine on |
|
the game room premises in accordance with Chapter 2153, Occupations |
|
Code. |
|
(b) The owner or operator of a game room shall pay an annual |
|
fee in an amount equal to 25 percent of the state's annual fee per |
|
machine. |
|
(c) Each amusement redemption machine permit application |
|
shall specify on the application the physical location of the |
|
amusement redemption machine. |
|
(d) If a permit is not obtained for an amusement redemption |
|
machine, the county tax assessor-collector's office shall lock the |
|
machine, and it may not be used until the owner purchases a permit |
|
for the machine by paying a $100 permit fee and a $5 release fee per |
|
machine. |
|
(e) If a county compliance officer is not allowed entrance |
|
to a game room during business hours, a civil penalty not to exceed |
|
$10,000 for each date of denial shall be assessed on the owner or |
|
operator of the game room. |
|
(f) A county may assess a civil penalty under Section |
|
234.137 on the owner or operator of a game room for each machine: |
|
(1) that is not registered with a valid current year |
|
video tax stamp decal prominently displayed on the machine; and |
|
(2) used for illegal gambling. |
|
(g) If a law enforcement agency determines through |
|
investigation that a game room is operating in violation of Chapter |
|
47, Penal Code, each amusement redemption machine or gambling |
|
device in the game room is considered in violation. A civil penalty |
|
not to exceed $10,000 per machine or device may be assessed on the |
|
owner or operator of the game room. |
|
(h) It is not a defense to prosecution under this section |
|
that the owner is not doing business in the owner's name, is not |
|
leasing property in the owner's name, or only has an ownership |
|
interest in the business. |
|
Sec. 234.1365. GROUNDS FOR DENIAL, REVOCATION, OR |
|
SUSPENSION OF PERMIT. (a) Any violation of this subchapter or |
|
regulations adopted under this subchapter or failure to meet the |
|
requirements of this subchapter and regulations adopted under this |
|
subchapter is grounds for denial, revocation, or suspension of a |
|
permit to operate a game room. If a game room's permit has been |
|
revoked, denied, or suspended, the game room may not be operated |
|
during the pendency of any appeal from the revocation, denial, or |
|
suspension. |
|
(b) The sheriff shall deny a game room permit on a finding by |
|
the sheriff that the applicant: |
|
(1) has been previously convicted of any of the |
|
following offenses: |
|
(A) gambling, gambling promotion, keeping a |
|
gambling place, communicating gambling information, possession of |
|
gambling devices or equipment, or possession of gambling |
|
paraphernalia under Chapter 47, Penal Code; |
|
(B) forgery, credit card abuse, or commercial |
|
bribery under Chapter 32, Penal Code; |
|
(C) any criminal offense under Chapter 34, Penal |
|
Code; |
|
(D) criminal attempt, conspiracy, or |
|
solicitation to commit any of the offenses listed in Paragraphs |
|
(A)-(C) or any other offense under the laws of another state or of |
|
the United States that, if committed in this state, would have been |
|
punishable as one or more of the offenses; or |
|
(E) a criminal offense under Subchapter B, |
|
Chapter 352, if: |
|
(i) less than two years have elapsed since |
|
the later of the date of conviction or the date of release from |
|
confinement imposed for the conviction of a misdemeanor offense; or |
|
(ii) less than five years have elapsed |
|
since the later of the date of conviction or the date of release |
|
from confinement for the conviction of a felony offense; |
|
(2) makes a misleading statement in the application |
|
for the game room permit; |
|
(3) is younger than 18 years of age; |
|
(4) has had a game room permit revoked within the |
|
180-day period immediately preceding the date the application was |
|
filed; |
|
(5) is delinquent in the payment to the county of |
|
taxes, fees, fines, or penalties assessed or imposed regarding the |
|
operation of a game room; |
|
(6) failed to pay the application or renewal fee |
|
required by this subchapter; or |
|
(7) has not had the required fire and life safety |
|
inspection by a fire safety official within 60 days immediately |
|
preceding the date the application was filed. |
|
(c) The sheriff may initiate a proceeding to revoke or |
|
suspend a game room permit if: |
|
(1) any person commits on the premises of the game room |
|
an offense listed in Subsection (b)(1); |
|
(2) the applicant provides false, fraudulent, or |
|
untruthful information on the original or renewal application; |
|
(3) the game room permit should not have been issued |
|
under the requirements of this subchapter or regulations adopted |
|
under this subchapter; |
|
(4) the owner or operator of the game room fails to |
|
comply with corrections ordered by a fire safety official with |
|
authority to conduct fire and life safety inspections in the county |
|
in which the game room is located; or |
|
(5) the owner is convicted of an offense listed in |
|
Subsection (b)(1). |
|
(d) The sheriff may not issue a game room permit or |
|
temporary game room permit until final disposition of any case |
|
involving an offense listed in Subsection (b)(1) that is pending or |
|
arises during the application process. |
|
Sec. 234.1366. DENIAL, REVOCATION, OR SUSPENSION OF PERMIT; |
|
HEARING; APPEAL. (a) If an event providing a basis for denial, |
|
revocation, or suspension of a game room permit under this |
|
subchapter occurs, the sheriff shall send to the game room permit |
|
holder or the holder's designated agent a written notice of denial, |
|
revocation, or suspension. The notice must set out the reasons for |
|
the action. The revocation or suspension is final on the fifth day |
|
after the date notice is issued. |
|
(b) The game room permit holder or the holder's designated |
|
agent is entitled to appear before a hearing examiner appointed by |
|
the commissioners court of the county in which the game room is |
|
located on written request submitted to the sheriff not less than |
|
the 10th business day after the date the notice is delivered. The |
|
written request for a hearing stays the revocation or suspension |
|
until the hearing is concluded. |
|
(c) The hearing examiner may not have participated in any |
|
investigation of the alleged grounds for the denial, revocation, or |
|
suspension. The hearing must be held not later than the 14th |
|
business day after the date the request for hearing is submitted. |
|
(d) The game room permit holder and the sheriff are entitled |
|
to present evidence, cross-examine witnesses, and be represented by |
|
legal counsel. The rules of evidence for a civil, nonjury trial |
|
apply to the hearing. |
|
(e) If the facts presented at the hearing support a finding |
|
that grounds exist for revoking or suspending a game room permit, |
|
the hearing examiner may request that the parties present relevant |
|
evidence to show whether suspension or revocation of the game room |
|
permit is more appropriate. Reasonable conditions may be attached |
|
to a game room permit by the hearing examiner based on the evidence |
|
presented at the hearing. |
|
(f) If the hearing examiner determines that a game room |
|
permit should be revoked, the hearing examiner shall issue a |
|
written order revoking the game room permit that is effective |
|
immediately. |
|
(g) If the hearing examiner determines based on the nature |
|
of the violations that a suspension instead of a revocation is |
|
appropriate, operation of the game room permit may be suspended for |
|
a period not to exceed six months. The hearing examiner shall issue |
|
a written order suspending the game room permit and attaching any |
|
applicable conditions that is effective on the date the owner |
|
receives notice. |
|
(h) On a finding that Section 234.1365(c)(3), (4), or (5) |
|
has been violated, the hearing examiner shall revoke the game room |
|
permit. |
|
(i) Revocation takes effect immediately on notice by the |
|
sheriff, subject to reinstatement following an appeal, if: |
|
(1) immediate action is required to protect the public |
|
from injury or imminent danger; or |
|
(2) a game room permit was issued based on a |
|
misrepresentation in the application, and the game room permit |
|
would not have been issued otherwise. |
|
(j) The decision of the hearing examiner is final. The |
|
losing party may appeal the decision by filing a petition in a |
|
district court in the county not later than the 30th day after the |
|
date of the decision. Judicial review is under the substantial |
|
evidence rule, and the judgment of the district court may be |
|
appealed, as in other civil cases. |
|
(k) An applicant whose permit has been denied, revoked, or |
|
suspended may reapply for a game room permit if the applicant makes |
|
the changes necessary for the proposed game room to be in compliance |
|
with this subchapter and regulations adopted under this subchapter. |
|
SECTION 2.07. Section 234.132, Local Government Code, as |
|
added by Chapter 1284 (H.B. 2123), Acts of the 83rd Legislature, |
|
Regular Session, 2013, is repealed. |
|
SECTION 2.08. Subchapter E, Chapter 234, Local Government |
|
Code, as added by Chapter 1377 (H.B. 1127), Acts of the 83rd |
|
Legislature, Regular Session, 2013, is repealed. |
|
ARTICLE 3. EFFECTIVE DATE |
|
SECTION 3.01. This Act takes effect September 1, 2015. |