85R22110 GCB-D
 
  By: Thompson of Harris H.B. No. 2578
 
  Substitute the following for H.B. No. 2578:
 
  By:  Guillen C.S.H.B. No. 2578
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the elimination of certain fees for licensure and the
  disposition of certain fees collected by the Texas Lottery
  Commission under the Bingo Enabling Act.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 2001, Occupations Code, is
  amended by adding Section 2001.003 to read as follows:
         Sec. 2001.003.  REGULATORY FUNDING FROM BINGO PRIZE FEES.
  It is the intent of the legislature that the funding necessary for
  the administration of this chapter by the commission be collected
  by the commission from commercial lessor, manufacturer, and
  distributor license fees and money paid to the commission by bingo
  players as bingo prize fees.
         SECTION 2.  Section 2001.103(a), Occupations Code, is
  amended to read as follows:
         (a)  An authorized organization may receive a temporary
  license to conduct bingo by filing with the commission an
  application, on a form prescribed by the commission[, accompanied
  by a $25 license fee].
         SECTION 3.  Section 2001.105(a), Occupations Code, is
  amended to read as follows:
         (a)  The commission shall issue or renew a license to conduct
  bingo [on payment of the license fee provided by Section 2001.104]
  if the commission determines that:
               (1)  the member or members of the applicant designated
  in the application to conduct bingo are active members of the
  applicant;
               (2)  the bingo is to be conducted in accordance with
  this chapter;
               (3)  the proceeds of the bingo are to be disposed in
  accordance with this chapter;
               (4)  the applicant has made and can demonstrate
  significant progress toward the accomplishment of the purposes of
  the organization during the 12 months preceding the date of
  application for a license or license renewal;
               (5)  all persons who will conduct, promote, or
  administer the proposed bingo are active members of the applicant
  organization and all other persons who will assist in conducting,
  promoting, or administering the proposed bingo games are persons
  authorized to do so by Section 2001.411; and
               (6)  no person under whose name bingo will be conducted
  and no person working at the proposed bingo has been convicted of a
  gambling offense or criminal fraud.
         SECTION 4.  Section 2001.154, Occupations Code, is amended
  to read as follows:
         Sec. 2001.154.  INELIGIBLE PERSONS. (a) The 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;
               (4) [(5)]  a person in which a person covered by
  Subdivision (1), (2), or (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;
               (5) [(6)]  a foreign corporation or other foreign legal
  entity;
               (6) [(7)]  an individual who is not a resident of this
  state;
               (7) [(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
               (8) [(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.
         (b)  Subsection (a)(4) [(a)(5)] does not prevent an
  authorized organization or other person that is not organized for
  pecuniary profit and no part of the net earnings of which inure to
  the benefit of an individual, member, or shareholder from being
  licensed as a commercial lessor solely because a public officer or a
  person married or related in the first degree by consanguinity or
  affinity to a public officer is a member of, active in, or employed
  by the authorized organization or other person.
         SECTION 5.  Section 2001.158, Occupations Code, is amended
  by adding Subsection (e) to read as follows:
         (e)  The commission shall deposit a license fee paid under
  this section to the credit of the bingo administration account
  established under Section 2001.521.
         SECTION 6.  Section 2001.205, Occupations Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  The commission shall deposit a license fee and any other
  fee paid under this section to the credit of the bingo
  administration account established under Section 2001.521.
         SECTION 7.  Section 2001.209, Occupations Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  The commission shall deposit a license fee and any other
  fee paid under this section to the credit of the bingo
  administration account established under Section 2001.521.
         SECTION 8.  Section 2001.438(f), Occupations Code, is
  amended to read as follows:
         (f)  Each licensed authorized organization that is a member
  of the unit shall be jointly and severally liable for:
               (1)  compliance with the requirements of this
  subchapter and the rules of the commission relating to the filing of
  required reports;
               (2)  the maintenance of bingo inventory and financial
  records; and
               (3)  the payment of [fees and] any penalties imposed
  for a violation of this subchapter or commission rules related to
  the operations of the unit.
         SECTION 9.  Section 2001.458(a), Occupations Code, is
  amended to read as follows:
         (a)  An item of expense may not be incurred or paid in
  connection with the conduct of bingo except an expense that is
  reasonable or necessary to conduct bingo, including an expense for:
               (1)  advertising, including the cost of printing bingo
  gift certificates;
               (2)  security;
               (3)  repairs to premises and equipment;
               (4)  bingo supplies and equipment;
               (5)  prizes;
               (6)  stated rental or mortgage and insurance expenses;
               (7)  bookkeeping, legal, or accounting services
  related to bingo;
               (8)  fees for bingo chairpersons, operators, managers,
  salespersons, callers, cashiers, ushers, janitorial services, and
  utility supplies and services;
               (9)  health insurance or health insurance benefits for
  bingo chairpersons, operators, managers, salespersons, callers,
  cashiers, and ushers, as provided by Subsection (b);
               (10)  [license fees;
               [(11)]  attending a bingo seminar or convention
  required under Section 2001.107; and
               (11) [(12)]  debit card transaction fees and
  electronic funds transfer fees.
         SECTION 10.  Section 2001.459(a), Occupations Code, is
  amended to read as follows:
         (a)  The following items of expense incurred or paid in
  connection with the conduct of bingo must be paid from an
  organization's bingo account:
               (1)  advertising, including the cost of printing bingo
  gift certificates;
               (2)  security during a bingo occasion;
               (3)  the purchase or repair of bingo supplies and
  equipment;
               (4)  prizes, other than authorized cash prizes;
               (5)  stated rental expenses;
               (6)  bookkeeping, legal, or accounting services;
               (7)  fees for callers, cashiers, and ushers; and
               (8)  janitorial services[; and
               [(9)  license fees].
         SECTION 11.  Section 2001.503, Occupations Code, is amended
  to read as follows:
         Sec. 2001.503.  LOCAL SHARE OF PRIZE FEE. (a) Except as
  provided by Subsection (c), a county that imposed a gross receipts
  tax on the conduct of bingo as of January 1, 1993, is entitled to,
  subject to Section 2001.507(i), 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), a municipality
  that imposed a gross receipts tax on the conduct of bingo as of
  January 1, 1993, is entitled to, subject to Section 2001.507(i), 50
  percent of the fee collected under Section 2001.502 on a prize
  awarded at a game conducted in the municipality.
         (c)  If a county and municipality are both entitled to a
  share of the fee imposed by Section 2001.502:
               (1)  the county is entitled to, subject to Section
  2001.507(i), 25 percent of the fee on a prize awarded at a game
  conducted in the county; and
               (2)  the municipality is entitled to, subject to
  Section 2001.507(i), 25 percent of the fee on a prize awarded at a
  game conducted in the municipality.
         SECTION 12.  Section 2001.507, Occupations Code, is amended
  by amending Subsections (a), (c), and (h) and adding Subsection (i)
  to read as follows:
         (a)  The commission shall deposit the revenue collected from
  the fee on prizes imposed by Section 2001.502 to the credit of the
  bingo administration account established under Section 2001.521 [a
  special account in the general revenue fund].
         (c)  At the end of each state fiscal year, the [The]
  commission shall send [quarterly] to a county or municipality
  entitled to a share of the fee on prizes the county's or
  municipality's share, as provided by Section 2001.503 and
  Subsection (i).
         (h)  Interest earned on all fees on prizes collected by the
  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 bingo
  administration account established under Section 2001.521 [general
  revenue fund].
         (i)  The commission shall reduce the amount of each local
  share of a fee to each county or municipality entitled to a share of
  the fee under Section 2001.503 on a pro rata basis as necessary to
  retain the amount necessary for the administration of bingo under
  this chapter for the state fiscal year less the amount estimated by
  the commission as license fees expected to be deposited in the bingo
  administration account established under Section 2001.521 for that
  year.
         SECTION 13.  Chapter 2001, Occupations Code, is amended by
  adding Subchapter K-1 to read as follows:
  SUBCHAPTER K-1.  BINGO ADMINISTRATION ACCOUNT
         Sec. 2001.521.  BINGO ADMINISTRATION ACCOUNT. (a)  The
  bingo administration account is a special fund in the treasury
  outside the general revenue fund.
         (b)  The account consists of:
               (1)  money paid to the commission as a commercial
  lessor license fee and deposited in the account under Section
  2001.158;
               (2)  money paid to the commission as a manufacturer's
  license fee or other fee and deposited in the account under Section
  2001.205;
               (3)  money paid to the commission as a distributor's
  license fee or other fee and deposited in the account under Section
  2001.209;
               (4)  any other money paid to the commission under this
  chapter and any money appropriated by the legislature to the
  commission for the administration of bingo under this chapter and
  transferred to the account;
               (5)  gifts, grants, and donations received by the
  commission for the purpose of the administration of bingo under
  this chapter; and
               (6)  interest earned on money in the account.
         Sec. 2001.522.  USE OF MONEY IN ACCOUNT. Money required to
  be deposited in the state treasury to the credit of the bingo
  administration account may be used by the commission only to
  support the commission's administration of bingo under this chapter
  and to pay local shares of prize fees under Section 2001.507.
         Sec. 2001.523.  APPLICABILITY OF OTHER LAW. Subchapter D,
  Chapter 316, Government Code, and Section 403.095, Government Code,
  do not apply to the account created under Section 2001.521.
         SECTION 14.  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;
               (2-a)  Section 2001.521, Occupations Code;
               (3)  Section 403.105(d) of this code;
               (4)  Sections 321.501 and 321.504, Tax Code;
               (5)  Sections 322.301 and 322.304, Tax Code; and
               (6)  Sections 323.501 and 323.504, Tax Code.
         SECTION 15.  Sections 2001.104, 2001.313(b-2), 2001.437(e),
  and 2001.507(d), Occupations Code, are repealed.
         SECTION 16.  (a) The changes in law made by this Act in
  amending Sections 2001.158, 2001.205, 2001.209, 2001.503, and
  2001.507, Occupations Code, and in adding Subchapter K-1, Chapter
  2001, Occupations Code, apply beginning with the state fiscal year
  beginning September 1, 2019.
         (b)  The changes in law made by this Act to Sections
  2001.103, 2001.105, and 2001.154, Occupations Code, apply to the
  issuance of a license under Chapter 2001, Occupations Code, that
  occurs on or after the effective date of this Act. The issuance of a
  license that occurs before the effective date of this Act is
  governed by the law in effect on the date the license is issued, and
  the former law is continued in effect for that purpose.
         SECTION 17.  Not later than January 1, 2018, the Texas
  Lottery Commission shall return to each license holder who in the
  year preceding the effective date of this Act paid a license fee
  under Section 2001.104 or 2001.437, Occupations Code, as those
  sections existed before the effective date of this Act, any portion
  of the fee attributable to the license holder's period of licensure
  occurring on or after the effective date of this Act.
         SECTION 18.  This Act takes effect September 1, 2017.