By: Thompson of Harris H.B. No. 2577

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of bingo games; authorizing fee refunds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2001.057(a), Occupations Code, is amended to read as follows:

(a) The commission shall [may] appoint a bingo advisory committee consisting of nine members. The commission shall appoint members representing a balance of interests including representatives of:

(1) the public;

(2) charities that operate bingo games; and

(3) commercial and charity lessors that participate in the bingo industry.

SECTION 2. Subchapter B, Chapter 2001, Occupations Code, is amended by adding Section 2001.062 to read as follows:

Sec. 2001.062. COMMISSION DETERMINATION OF ILLEGAL GAMBLING IN COUNTY. (a) At the request of any person or on its own motion, the commission may determine that:

(1) a place of business located anywhere in a county in which a licensed authorized organization conducts bingo offers patrons of the business the opportunity to engage in gambling in violation of a provision of Chapter 47, Penal Code; and

(2) the conduct described by Subdivision (1) is detrimental to the conduct of charitable bingo by one or more licensed authorized organizations.

(b) If the commission makes the determination authorized under Subsection (a), the commission shall notify the comptroller, the county, each licensed authorized organization and unit as defined by Section 2001.431 that conducts bingo in the county, and each municipality located in the county that is entitled to a local share of a prize fee that the state's authority to collect a prize fee under Section 2001.502, and the entitlement to a local share under Section 2001.503, is terminated for all charitable bingo conducted in that county on the 30th day after the date of the notice.

(c) A political subdivision that receives notification by the commission under Subsection (b) may provide evidence that the commission's determination under Subsection (a) was made in error because the activity described by Subsection (a)(1) is not occurring in that county or is not occurring to the detriment of charitable bingo as provided by Subsection (a)(2). The commission must receive the evidence from the political subdivision not later than the 30th day after the date the political subdivision receives the notice from the commission under Subsection (b). If, based on evidence provided by a political subdivision, the commission agrees that the determination was made in error, the commission may not terminate the prize fee and shall notify the comptroller, the county, each licensed authorized organization and unit that conducts bingo in the county, and each municipality located in the county that is entitled to a local share of a prize fee of the commission's decision not to terminate the collection of the prize fee.

(d) The commission shall determine whether to accept or reject the evidence presented by a political subdivision under Subsection (c) not later than the 30th day after the date the commission receives the evidence. If, after considering the evidence submitted by a political subdivision under Subsection (c), the commission determines to terminate the collection of the prize fee, the commission shall notify each political subdivision that submitted evidence of the termination. Any political subdivision that receives the notice may request an administrative hearing on the matter before the State Office of Administrative Hearings. A request for an administrative hearing under this subsection must be received by the commission not later than the 30th day after the date a political subdivision receives notification under this subsection.

(e) A determination by the commission under Subsection (a) becomes final on the 30th day after the commission's determination under that subsection unless the determination is contested as provided by Subsections (c) and (d). On a final decision under Subsection (d) by the administrative law judge upholding the commission's determination to terminate the collection of the prize fee under this section, the commission shall notify the comptroller, the county, each licensed authorized organization and unit that conducts bingo in the county, and each municipality located in the county that is entitled to a local share of a prize fee that the state's authority to collect a prize fee under Section 2001.502, and the entitlement to a local share under Section 2001.503, is terminated for all charitable bingo conducted in that county on the 30th day after the date of the notice or on another date set by the commission.

(f) The commission shall adopt rules as necessary to implement this section. A rule adopted under this subsection may delegate to the director of the charitable bingo operations division the determination authorized by Subsection (a).

SECTION 3. Section 2001.103, Occupations Code, is amended by adding Subsection (a-1) to read as follows:

(a-1) On request, the commission shall refund to an authorized organization the $25 temporary license fee submitted under Subsection (a) not later than the 30th day after the date the commission receives the request for the refund, if:

(1) the authorized organization does not use the temporary license to conduct bingo before the first anniversary of the date of the license's issuance; or

(2) the authorized organization requests withdrawal of the application before the temporary license is issued, except the commission may retain an amount not to exceed 50 percent of the license fee to defray any administrative cost incurred by the commission in processing the application.

SECTION 4. Section 2001.104, Occupations Code, is amended by adding Subsection (f) to read as follows:

(f) The commission shall refund the fee for an initial or renewal license to conduct bingo if the applicant requests withdrawal of the application before the license is issued or if the commission denies the application, except the commission may retain an amount not to exceed the lesser of 50 percent of the license fee or $150 to defray any administrative cost incurred by the commission in processing the application. The commission shall issue the refund not later than the 30th day after the date the commission receives the withdrawal request or denies the application.

SECTION 5. Section 2001.158, Occupations Code, is amended by adding Subsection (e) to read as follows:

(e) The commission shall refund the fee for an initial or renewal commercial lessor license if the applicant requests withdrawal of the application before the license is issued or if the commission denies the application, except the commission may retain an amount not to exceed the lesser of 50 percent of the license fee or $150 to defray any administrative cost incurred by the commission in processing the application. The commission shall issue the refund not later than the 30th day after the date the commission receives the withdrawal request or denies the application.

SECTION 6. Section 2001.205, Occupations Code, is amended by adding Subsection (c) to read as follows:

(c) The commission shall refund the fee for an initial or renewal manufacturer's license if the applicant requests withdrawal of the application before the license is issued or if the commission denies the application, except the commission may retain a reasonable amount set by the commission to defray any administrative cost incurred by the commission in processing the application. The commission shall issue the refund not later than the 30th day after the date the commission receives the withdrawal request or denies the application.

SECTION 7. Section 2001.209, Occupations Code, is amended by adding Subsection (c) to read as follows:

(c) The commission shall refund the fee for an initial or renewal distributor's license if the applicant requests withdrawal of the application before the license is issued or if the commission denies the application, except the commission may retain a reasonable amount set by the commission to defray any administrative cost incurred by the commission in processing the application. The commission shall issue the refund not later than the 30th day after the date the commission receives the withdrawal request or denies the application.

SECTION 8. Section 2001.306, Occupations Code, is amended by adding Subsection (f) to read as follows:

(f) The commission shall refund the fee for amending a license issued under this chapter if the applicant requests withdrawal of the amendment application before the amended license is issued or if the commission denies the amendment application, except the commission may retain an amount not to exceed 50 percent of the amendment fee to defray any administrative cost incurred by the commission in processing the amendment application. The commission shall issue the refund not later than the 30th day after the date the commission receives the withdrawal request or denies the application.

SECTION 9. Section 2001.313, Occupations Code, is amended by adding Subsection (b-3) and amending Subsection (h) to read as follows:

(b-3) The commission shall refund the fee submitted under Subsection (b-2) for an initial or renewal registration application if the applicant requests withdrawal of the application before the applicant is listed on the registry or if the commission denies the registration and listing, except the commission may retain an amount not to exceed 50 percent of the registration fee to defray any administrative cost incurred by the commission in processing the application. The commission shall issue the refund not later than the 30th day after the date the commission receives the withdrawal request or denies the application.

(h) A licensed authorized organization may employ an individual who is not on the registry established by this section as an operator, manager, cashier, usher, caller, or salesperson on a provisional basis if the individual is awaiting the results of a background check by the commission:

(1) for a period not to exceed 14 days, beginning on the date the commission receives the application for the employee to be placed on the registry, if the individual is a resident of this state; or

(2) for a period to be established by commission rule if the individual is not a resident of this state.

SECTION 10. Section 2001.419, Occupations Code, is amended by adding Subsection (f) to read as follows:

(f) If pull-tab bingo tickets are sold by one licensed authorized organization that conducts consecutive bingo occasions during one day, the organization may account for and report all of the pull-tab bingo ticket sales for the occasions as sales for the final occasion.

SECTION 11. Section 2001.437, Occupations Code, is amended by adding Subsection (i) to read as follows:

(i) The commission shall refund the fee for an initial or renewal unit manager license if the applicant requests withdrawal of the application before the license is issued or if the commission denies the application, except the commission may retain an amount not to exceed the lesser of 50 percent of the license fee or $150 to defray any administrative cost incurred by the commission in processing the application. The commission shall issue the refund not later than the 30th day after the date the commission receives the withdrawal request or denies the application.

SECTION 12. Section 2001.502, Occupations Code, is amended to read as follows:

Sec. 2001.502. PRIZE FEE. (a) Except as provided by Subsection (b), a [A] licensed authorized organization shall:

(1) collect from a person who wins a bingo prize of more than $5 a fee in the amount of five percent of the amount or value of the prize; and

(2) remit to the commission a fee in the amount of five percent of the amount or value of all bingo prizes of more than $5 awarded.

(b) A licensed authorized organization or unit that is notified by the commission under Section 2001.062 that the state's authority to collect a prize fee under this section is terminated as provided by that section shall continue to collect the prize fee. Each prize fee collected under this subsection shall be deposited into the general fund of the licensed authorized organization or unit to be used for the charitable purposes of the organization.

SECTION 13. Section 2001.503, Occupations Code, is amended by amending Subsections (a) and (b) and adding Subsection (d) to read as follows:

(a) Except as provided by Subsection (c) or (d), a county that imposed a gross receipts tax on the conduct of bingo as of January 1, 1993, is entitled to 50 percent of the fee collected under Section 2001.502 on a prize awarded at a game conducted in the county.

(b) Except as provided by Subsection (c) or (d), a municipality that imposed a gross receipts tax on the conduct of bingo as of January 1, 1993, is entitled to 50 percent of the fee collected under Section 2001.502 on a prize awarded at a game conducted in the municipality.

(d) A county or municipality to which this section applies is not entitled to a local share of a prize fee after the entitlement to the local share has been terminated by the commission under Section 2001.062.

SECTION 14. (a) Chapter 2001, Occupations Code, as amended by this Act, applies only to an application and fee submitted under that chapter on or after the effective date of this Act. An application and fee submitted before the effective date of this Act are governed by the law in effect on the date the application and fee are submitted, and the former law is continued in effect for that purpose.

(b) Notwithstanding the effective date of this Act, the change in law made to Section 2001.502, Occupations Code, applies to the collection or remittance of a bingo prize fee for a bingo prize awarded on or after October 1, 2017. The collection or remittance of a bingo prize fee for a bingo prize awarded before October 1, 2017, is governed by the law in effect on the date the prize is awarded, and the former law is continued in effect for that purpose.

SECTION 15. This Act takes effect September 1, 2017.