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�	H.B.�No.�1474

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�	AN ACT
�	relating to the operation and regulation of charitable bingo and
�	the use of bingo proceeds.
�	�������BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
�	�������SECTION�1.��Section 2001.002, Occupations Code, is amended
�	by adding Subdivisions (4-a), (8-a), and (25-a) and amending
�	Subdivision (6) to read as follows:
�	�������������(4-a)��"Bingo chairperson" means an officer or member
�	of the board of directors of a licensed authorized organization who
�	is designated in writing by the organization as responsible for
�	overseeing the organization's bingo activities and reporting to the
�	membership relating to those activities.
�	�������������(6)��"Bingo occasion" means a single gathering or
�	session at which a bingo game or [all activities incident to the
�	conduct of] a series of bingo games, including selling and
�	redeeming pull-tab bingo tickets, are conducted on the day and at
�	the times listed on the license issued to [by] a licensed authorized
�	organization[, including the organization's licensed times and any
�	preparatory or concluding activities incident to the conduct of
�	bingo].
�	�������������(8-a)��"Crime of moral turpitude" means:
�	�������������������(A)��a felony;
�	�������������������(B)��a gambling offense;
�	�������������������(C)��criminal fraud;
�	�������������������(D)��forgery;
�	�������������������(E)��theft;
�	�������������������(F)��an offense that involves filing false
�	information with a governmental agency; or
�	�������������������(G)��any offense that:
�	�������������������������(i)��is classified in this state as a Class A
�	misdemeanor; and
�	�������������������������(ii)��puts the honesty and integrity of the
�	individual who committed the offense in question.
�	�������������(25-a)��"Regular license" means a license to conduct
�	bingo that is issued by the commission and that expires on the first
�	or second anniversary of the date of issuance unless revoked or
�	suspended before that date by the commission. �The term includes an
�	annual license.
�	�������SECTION�2.��Section 2001.059, Occupations Code, is amended
�	by amending Subsection (a) and adding Subsection (g) to read as
�	follows:
�	�������(a)��An officer, bingo chairperson, or authorized
�	representative of a license holder or an attorney, accountant, or
�	bookkeeper employed or retained by a license holder�[A person] may
�	request from the commission an advisory opinion regarding
�	compliance with this chapter and the rules of the commission.
�	�������(g)��The commission may refuse to issue an advisory opinion
�	under this section on a matter that the commission knows to be in
�	active litigation.
�	�������SECTION�3.��Subchapter B, Chapter 2001, Occupations Code, is
�	amended by adding Section 2001.060 to read as follows:
�	�������Sec.�2001.060.��REPORTING. (a) �On or before June 1 of each
�	even-numbered year, the commission shall prepare and deliver to the
�	governor, the lieutenant governor, the speaker of the house of
�	representatives, and the chairs of the standing committees of the
�	senate and house of representatives with primary jurisdiction over
�	charitable bingo a report stating for each of the preceding two
�	calendar years:
�	�������������(1)��the total amount of adjusted gross receipts
�	reported by licensed authorized organizations from their bingo
�	operations;
�	�������������(2)��the total amount of net proceeds reported by
�	licensed authorized organizations from their bingo operations; and
�	�������������(3)��a comparison of the amounts reported under
�	Subdivisions (1) and (2), including the percentage that the net
�	proceeds represents of the adjusted gross receipts.
�	�������(b)��For purposes of Subsection (a), "adjusted gross
�	receipts"�means the amount remaining after deducting prizes paid,
�	excluding prize fees collected from bingo players.
�	�������(c)��For purposes of Subsection (a), the commission shall
�	determine the total amount of net proceeds in a manner that does not
�	reduce gross receipts by the amount of rent paid for the rental of
�	bingo premises by a licensed authorized organization to another
�	licensed authorized organization if the other organization pays
�	rent for the premises to a licensed commercial lessor.
�	�������SECTION�4.��Section 2001.101(a), Occupations Code, is
�	amended to read as follows:
�	�������(a)��The commission may license a person who is an authorized
�	organization eligible for a license to conduct bingo if the person
�	is:
�	�������������(1)��a religious society that has existed in this state
�	for at least three�[eight] years;
�	�������������(2)��a nonprofit organization:
�	�������������������(A)��whose predominant activities are for the
�	support of medical research or treatment programs; and
�	�������������������(B)��that for at least three years:
�	�������������������������(i)��must have had a governing body or
�	officers elected by a vote of members or by a vote of delegates
�	elected by the members; or
�	�������������������������(ii)��must have been affiliated with a state
�	or national organization organized to perform the same purposes as
�	the nonprofit organization;
�	�������������(3)��a fraternal organization;
�	�������������(4)��a veterans organization that has existed in this
�	state for at least three years; [or]
�	�������������(5)��a volunteer fire department that has existed in
�	this state for at least three years; or
�	�������������(6)��a volunteer emergency medical services provider
�	that has existed in this state for at least three years.
�	�������SECTION�5.��Sections 2001.102(a) and (b), Occupations Code,
�	are amended to read as follows:
�	�������(a)��An applicant for a license to conduct bingo must file
�	with the commission an [a written, executed, and verified]
�	application on a form prescribed by the commission.
�	�������(b)��The application must include:
�	�������������(1)��the name and address of the applicant;
�	�������������(2)��the names and addresses of the applicant's
�	officers and directors;
�	�������������(3)��the address of the premises where and the time when
�	the applicant intends to conduct bingo under the license sought;
�	�������������(4)��the name and address of the licensed commercial
�	lessor of the premises, if the applicant intends to lease premises
�	to conduct bingo from a person other than an authorized
�	organization;
�	�������������(5)��[the capacity or potential capacity for public
�	assembly in any premises owned or occupied by the applicant;
�	�������������[(6) � � the amount of rent to be paid or other
�	consideration to be given, directly or indirectly, for each
�	occasion for use of the premises of another licensed authorized
�	organization or for use of the premises of a licensed commercial
�	lessor;
�	�������������[(7) � � all other items of expense intended to be
�	incurred or paid in connection with conducting, promoting, and
�	administering bingo and the names and addresses of the persons to
�	whom, and the purposes for which, the expenses are to be paid;
�	�������������[(8) � � the specific purposes to and the manner in which
�	the net proceeds of bingo are to be devoted;
�	�������������[(9)]��a statement that the net proceeds of bingo will
�	go to one or more of the authorized charitable purposes under this
�	chapter;
�	�������������(6)�[(10)]��a designation of the applicant
�	organization's bingo chairperson�[one or more active members of the
�	applicant organization] under whom bingo will be conducted
�	accompanied by a statement signed by the chairperson�[each
�	designated member] stating that the chairperson�[member] will be
�	responsible for the conduct of bingo under the terms of the license
�	and this chapter;
�	�������������(7)�[(11) � � a statement that a copy of the application
�	has been sent to the appropriate governing body;
�	�������������[(12) � � the name and address of each person who will work
�	at the proposed bingo occasion, the nature of the work to be
�	performed, and a statement as to whether the person has been
�	convicted of a felony, a gambling offense, criminal fraud, or a
�	crime of moral turpitude; and
�	�������������[(13)]��sufficient facts relating to the applicant's
�	incorporation and organization to enable the commission to
�	determine whether the applicant is an authorized organization;
�	�������������(8)��a copy of the applicant organization's most
�	recently filed Internal Revenue Service Form 990, if applicable;
�	�������������(9)��a letter of good standing from the applicant
�	organization's parent organization, if the organization receives
�	an exemption from federal income taxes as a member of a group of
�	organizations;
�	�������������(10)��copies of the applicant organization's organizing
�	instruments, including any bylaws, constitution, charter, and
�	articles of incorporation;
�	�������������(11)��verification of the applicant organization's good
�	standing with the secretary of state if the organization is
�	organized under the law of this state; and
�	�������������(12)��information necessary to conduct criminal
�	background checks on the applicant organization's officers and
�	directors.
�	�������SECTION�6.��Section 2001.103(e), Occupations Code, is
�	amended to read as follows:
�	�������(e)��Notwithstanding Subsection (c), an authorized
�	organization that holds an annual�[a regular] license to conduct
�	bingo may receive not more than 24 [12] temporary licenses during
�	the 12-month period following the issuance or renewal of the
�	license. �The holder of a license that is effective for two years
�	may receive not more than 24 temporary licenses for each 12-month
�	period that ends on an anniversary of the date the license was
�	issued or renewed.
�	�������SECTION�7.��Section 2001.104, Occupations Code, is amended
�	by amending Subsections (b) and (d) and adding Subsection (e) to
�	read as follows:
�	�������(b)��The commission by rule shall establish procedures to
�	determine if the appropriate license fee [At the end of the license
�	period the license holder and the commission shall compute the
�	amount of gross receipts actually recorded during the license
�	period to determine if the appropriate fee amount] was paid.
�	�������(d)��An applicant shall pay the fees established under
�	Subsection (a) annually. An applicant for a license or renewal of a
�	license may obtain a license that is effective for two years by
�	paying an amount equal to two times the amount of the annual license
�	fee, or by paying the license fee for the first year at the time the
�	applicant submits the application and the fee for the second year
�	not later than the first anniversary of the date the license becomes
�	effective [plus $25].
�	�������(e)��A licensed authorized organization may pay in advance,
�	or establish an escrow account with the commission to cover, fees
�	assessed under this chapter for the amendment of a license or
�	issuance of a temporary license.
�	�������SECTION�8.��Section 2001.105(b), Occupations Code, is
�	amended to read as follows:
�	�������(b)��The commission may not issue a license to an authorized
�	organization to conduct bingo if an officer or member of the board
�	of directors�of the organization has been convicted of a felony,
�	criminal fraud, a gambling or gambling-related offense, or a crime
�	of moral turpitude if less than 10 years has elapsed since the
�	termination of a sentence, parole, mandatory supervision, or
�	community supervision served for the offense.
�	�������SECTION�9.��Section 2001.106, Occupations Code, is amended
�	to read as follows:
�	�������Sec.�2001.106.��FORM AND CONTENTS OF LICENSE. �A license to
�	conduct bingo must include:
�	�������������(1)��the name and address of the license holder;
�	�������������(2)��the name and address of the bingo chairperson�
�	[names and addresses of the member or members] of the license holder
�	under whom the bingo will be conducted; and
�	�������������(3)��the address�[an indication] of the premises where
�	and the time when bingo is to be conducted[;
�	�������������[(4) � � the specific purposes to which the net proceeds
�	of bingo are to be devoted; and
�	�������������[(5) � � a statement of whether a prize is to be offered
�	and the amount of any authorized prize].
�	�������SECTION�10.��Section 2001.107(a), Occupations Code, is
�	amended to read as follows:
�	�������(a)��Unless the organization is a member of a unit that
�	designates a unit manager under Section 2001.437, the bingo
�	chairperson for a licensed authorized organization [The person
�	designated under Section 2001.102(b)(10)] shall complete the�
�	[eight hours of] training required�[as provided] by commission
�	rule. �For a unit operating under Subchapter I-1, the unit manager
�	shall complete the training if the unit designates a unit manager
�	under Section 2001.437.
�	�������SECTION�11.��Sections 2001.108(b) and (c), Occupations Code,
�	are amended to read as follows:
�	�������(b)��If the other organization ceased or will cease
�	conducting bingo for the reason stated in Subsection (a)(1), the
�	commission must act on the joint application filed under Subsection
�	(a) not later than the 14th [10th] day after the date the
�	application is filed with the commission.
�	�������(c)��If the other organization ceased or will cease
�	conducting bingo for the reason stated in Subsection (a)(2), the
�	commission must act on the joint application filed under Subsection
�	(a) not later than the 14th [10th] day after the date the
�	application is filed with the commission or the date on which the
�	termination takes effect, whichever is later.
�	�������SECTION�12.��Sections 2001.158(b) and (d), Occupations Code,
�	are amended to read as follows:
�	�������(b)��The commission by rule shall establish procedures for
�	determining if the appropriate license fee [At the end of the
�	license period, the license holder and the commission shall compute
�	the amount of the gross rentals actually recorded during the
�	license period to determine if the appropriate fee amount] was
�	paid.
�	�������(d)��An applicant for a commercial lessor license shall pay
�	the fees established under Subsection (a) annually. An applicant
�	for a license or renewal of a license may obtain a license that is
�	effective for two years by paying an amount equal to two times the
�	amount of the annual license fee, or by paying the license fee for
�	the first year at the time the applicant submits the application and
�	the license fee for the second year not later than the first
�	anniversary of the date the license becomes effective [plus $25].
�	�������SECTION�13.��The heading to Section 2001.159, Occupations
�	Code, is amended to read as follows:
�	�������Sec.�2001.159.��LICENSE ISSUANCE OR RENEWAL.
�	�������SECTION�14.��Section 2001.159(a), Occupations Code, is
�	amended to read as follows:
�	�������(a)��The commission shall issue or renew a commercial lessor
�	license if the commission determines that:
�	�������������(1)��the applicant has paid the license fee as provided
�	by Section 2001.158;
�	�������������(2)��the applicant qualifies to be licensed under this
�	chapter;
�	�������������(3)��[the applicant satisfies the requirements for a
�	commercial lessor under this subchapter;
�	�������������[(4)]��the rent to be charged is fair and reasonable
�	[and will be charged and collected in compliance with Section
�	2001.406];
�	�������������(4)�[(5)]��there is no diversion of the funds of the
�	proposed lessee from the lawful purposes under this chapter;
�	�������������(5)�[(6)]��the person whose signature or name appears
�	in the application is in all respects the real party in interest and
�	is not an undisclosed agent or trustee for the real party in
�	interest; and
�	�������������(6)�[(7)]��the applicant will lease the premises for
�	the conduct of bingo in accordance with this chapter.
�	�������SECTION�15.��Section 2001.203, Occupations Code, is amended
�	to read as follows:
�	�������Sec.�2001.203.��MANUFACTURER'S LICENSE APPLICATION. �(a) �An
�	applicant for a manufacturer's license must file with the
�	commission an [a written verified] application on a form prescribed
�	by the commission.
�	�������(b)��The application must include:
�	�������������(1)��the name and address of the applicant and the name
�	and address of each of its locations where bingo supplies or
�	equipment are manufactured;
�	�������������(2)��a full description of each type of bingo supply or
�	equipment that the applicant intends to manufacture or market in
�	this state and the brand name, if any, under which each item will be
�	sold;
�	�������������(3)��[the name and address of the applicant and] if the
�	applicant:
�	�������������������(A)��is not a corporation, the name and home
�	address of each owner; or
�	�������������������(B)��is a corporation, the name and home address
�	of each officer and director and each person owning more than 10
�	percent [or more] of a class of stock in the corporation;
�	�������������(4)��if the applicant is a foreign corporation or other
�	foreign legal entity, the name, business name and address, and
�	[home] address of its registered agent for service in this state;
�	�������������(5)��the name and address of each manufacturer,
�	supplier, and distributor in which the applicant has a financial
�	interest and the details of that financial interest, including any
�	indebtedness between the applicant and the manufacturer, supplier,
�	or distributor of $5,000 [$500] or more;
�	�������������(6)��information regarding whether the applicant or a
�	person required to be named in the application has been convicted in
�	this state or another state of a felony, criminal fraud, a gambling
�	or gambling-related offense, or a crime of moral turpitude;
�	�������������(7)��information regarding whether the applicant or a
�	person required to be named in the application is an owner, officer,
�	director, shareholder, agent, or employee of a licensed commercial
�	lessor or conducts, promotes, administers, or assists in
�	conducting, promoting, or administering bingo for which a license
�	is required by this chapter;
�	�������������(8)��information regarding whether the applicant or a
�	person required to be named in the application is a public officer
�	or public employee in this state;
�	�������������(9)��the name of each state in which the applicant is or
�	has been licensed to manufacture, distribute, or supply bingo
�	equipment or supplies, each license number, the period of time
�	licensed under each license, and whether a license has been
�	revoked, suspended, withdrawn, canceled, or surrendered and, if so,
�	the reasons for the action taken;
�	�������������(10)��information regarding whether the applicant or a
�	person required to be named in the application is or has been a
�	professional gambler or gambling promoter;
�	�������������(11)��the names and addresses of each manufacturer,
�	supplier, or distributor of bingo equipment or supplies in which
�	the applicant or a person required to be named in the application is
�	an owner, officer, shareholder, director, agent, or employee; and
�	�������������(12)��any other information the commission requests.
�	�������SECTION�16.��Section 2001.208(b), Occupations Code, is
�	amended to read as follows:
�	�������(b)��The application must include:
�	�������������(1)��the full name and address of the applicant;
�	�������������(2)��the name and address of each location operated by
�	the distributor from which bingo supplies or equipment are
�	distributed or at which bingo supplies or equipment are stored;
�	�������������(3)��if a noncorporate distributor, the name and home
�	address of each owner;
�	�������������(4)��if a corporate distributor, the name and home
�	address of each officer or director and of each person owning more
�	than [at least] 10 percent of a class of stock in the corporation;
�	�������������(5)��if a foreign corporation or other foreign legal
�	entity, the name, business name and address, and [home] address of
�	its registered agent for service in this state;
�	�������������(6)��a full description of the type of bingo supply or
�	equipment that the applicant intends to store or distribute in this
�	state and the name of the manufacturer of each item and the brand
�	name, if any, under which the item will be sold or marketed;
�	�������������(7)��the name and address of a manufacturer, supplier,
�	or distributor in which the applicant has a financial interest and
�	the details of that financial interest, including an indebtedness
�	between the applicant and the manufacturer, supplier, or
�	distributor of $5,000 [$500] or more;
�	�������������(8)��information regarding whether the applicant or a
�	person required to be named in the application has been convicted in
�	this state or another state of a felony, criminal fraud, a gambling
�	or gambling-related offense, or a crime of moral turpitude;
�	�������������(9)��information regarding whether the applicant or a
�	person required to be named in the application is an owner, officer,
�	director, shareholder, agent, or employee of a licensed commercial
�	lessor or conducts, promotes, administers, or assists in
�	conducting, promoting, or administering bingo for which a license
�	is required under this chapter;
�	�������������(10)��information regarding whether the applicant or a
�	person required to be named in the application is a public officer
�	or public employee in this state;
�	�������������(11)��the name of each state in which the applicant is
�	or has been licensed to manufacture, distribute, or supply bingo
�	equipment or supplies, each license number, the period of time
�	licensed under each license, and whether a license was revoked,
�	suspended, withdrawn, canceled, or surrendered and, if so, the
�	reasons for the action taken;
�	�������������(12)��information regarding whether the applicant or a
�	person required to be named in the application is or has been a
�	professional gambler or gambling promoter;
�	�������������(13)��the name and address of each manufacturer,
�	supplier, or distributor of bingo equipment or supplies in which
�	the applicant or a person required to be named in the application is
�	an owner, officer, shareholder, director, agent, or employee; and
�	�������������(14)��any other information the commission requests.
�	�������SECTION�17.��Sections 2001.211(b), (c), and (d), Occupations
�	Code, are amended to read as follows:
�	�������(b)��If a change occurs after issuance of a manufacturer's or
�	distributor's license, the license holder shall report the change
�	to the commission not later than the 14th�[10th] day after the date
�	of the change.
�	�������(c)��Not later than the 14th�[10th] day after the date of the
�	change, a license holder shall notify the commission of a change in:
�	�������������(1)��the license holder's organization, structure, or
�	mode of operation;
�	�������������(2)��the identity of persons named or required to be
�	named in the application and the nature or extent of those persons'
�	interest; or
�	�������������(3)��any other facts stated in the application.
�	�������(d)��Failure to give a notice required under this section is
�	cause for:
�	�������������(1)��denial, suspension, or revocation of a license; or
�	�������������(2)��imposition of an administrative penalty or other
�	administrative action.
�	�������SECTION�18.��Subchapter G, Chapter 2001, Occupations Code,
�	is amended by adding Section 2001.3025 to read as follows:
�	�������Sec.�2001.3025.��ACCESS TO CRIMINAL HISTORY RECORD
�	INFORMATION. �The commission is entitled to conduct an
�	investigation of and is entitled to obtain criminal history record
�	information maintained by the Department of Public Safety, the
�	Federal Bureau of Investigation identification division, or
�	another law enforcement agency to assist in the investigation of:
�	�������������(1)��an applicant for or holder of a license issued
�	under this chapter;
�	�������������(2)��a person required to be named in a license
�	application; or
�	�������������(3)��an employee or other person who works or will work
�	for a license holder and who is required by another provision of
�	this chapter to undergo a criminal background check.
�	�������SECTION�19.��Section 2001.306(c), Occupations Code, is
�	amended to read as follows:
�	�������(c)��The holder of a license to conduct bingo may not change
�	the location at which it conducts bingo until it has:
�	�������������(1)��returned�[surrendered] its original license if
�	available, or certified that the license is not available; and
�	�������������(2)��received an amended license for the new location.
�	�������SECTION�20.��Section 2001.313, Occupations Code, is amended
�	by amending Subsections (a), (b), (d), (e), (f), and (g) and adding
�	Subsections (b-1), (h), and (i) to read as follows:
�	�������(a)��To minimize duplicate criminal history background
�	checks by the commission and the costs incurred by organizations
�	and individuals, the commission shall maintain a registry of
�	individuals�[persons] on whom the commission has conducted a
�	criminal history background check and who are approved to be
�	involved in the conduct of bingo or to act as a bingo operator.
�	�������(b)��An individual�[A person] listed in the registry may be
�	involved in the conduct of bingo or act as an operator at any
�	location at which bingo is lawfully conducted.
�	�������(b-1)��An individual's listing on the registry expires on the
�	third anniversary of the date the individual was initially included
�	on the registry. �The individual may renew the listing before the
�	expiration date. �If the individual fails to renew the listing, the
�	commission shall remove the individual's name from the registry. �
�	An individual whose name is removed from the registry may reapply
�	for listing on the registry.
�	�������(d)��An individual�[A person] who is not listed on the
�	registry established by this section may not act, and a licensed
�	authorized organization may not allow the individual to act, as an
�	operator, manager, cashier, usher, caller, bingo chairperson,
�	bookkeeper, or salesperson for the�[a] licensed authorized
�	organization.
�	�������(e)��The commission may refuse to add an individual's�[a
�	person's] name to, or remove an individual's�[a person's] name from,
�	the registry established by this section if, after notice and, if
�	requested by the individual, a hearing, the individual�[person] is
�	finally determined to have:
�	�������������(1)��been convicted of an offense listed under Section
�	2001.105(b);
�	�������������(2)��converted bingo equipment in a premises to an
�	improper use;
�	�������������(3)��converted funds that are in, or that should have
�	been in, the bingo account of any licensed authorized organization;
�	�������������(4)��taken any action, individually or in concert with
�	another person, that affects the integrity of any bingo game to
�	which this chapter applies; [or]
�	�������������(5)��acted as an operator, manager, cashier, usher,
�	caller, bingo chairperson, bookkeeper, or salesperson for a
�	licensed authorized organization without being listed on the
�	registry established under this section;
�	�������������(6)��failed to provide a complete application; or
�	�������������(7)��participated in any violation of this chapter or
�	rules adopted by the commission for the administration of this
�	chapter.
�	�������(f)��A licensed authorized organization shall report to the
�	commission or its designee the discovery of any conduct on the part
�	of an individual�[a person] registered or required to be registered
�	under this section where there is substantial basis for believing
�	that the conduct would constitute grounds for removal of the
�	individual's�[person's] name from, or refusal to add the
�	individual's�[person's] name to, the registry established by this
�	section. A statement made in good faith to the commission or to an
�	adjudicative body in connection with any such report may not be the
�	basis for an action for defamation of character.
�	�������(g)��An individual�[A person] who has been finally determined
�	to have taken action prohibited by Subsection (e)(2), (3), (4),
�	[or] (5), (6), or (7) cannot be listed on the registry of approved
�	bingo workers and cannot work as a bingo worker for one year from
�	the date of such determination. Upon expiration of the one-year
�	period, the individual�[person] is eligible for listing on the
�	registry provided a licensee subject to this chapter makes
�	application to list the individual�[person]. In such event, the
�	commission shall take into consideration the facts and
�	circumstances that occurred that led to the applicable action under
�	Subsections (e)(2)-(7) [(e)(2)-(5)] in deciding whether to list the
�	individual�[person] on the registry.
�	�������(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 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.
�	�������(i)��An individual who has been removed from the registry
�	under Subsection (e) and has not subsequently been listed on the
�	registry under Subsection (g) may not be employed under Subsection
�	(h).
�	�������SECTION�21.��Section 2001.314, Occupations Code, is amended
�	to read as follows:
�	�������Sec.�2001.314.��IDENTIFICATION CARD FOR APPROVED BINGO
�	WORKER. �(a) �The commission may require an individual [a person]
�	listed in the registry maintained under Section 2001.313 to wear an
�	identification card to identify the individual [person] to license
�	holders, bingo players, and commission staff while the individual
�	[person] is on duty during the conduct of bingo. The commission by
�	rule shall prescribe the form and content of the card.
�	�������(b)��The commission shall provide the identification card
�	and shall provide a form to be completed by an individual [a person]
�	that allows the individual [person] to prepare the identification
�	card. The commission may�[shall] collect a reasonable charge to
�	cover the cost of providing the card or form.
�	�������(c)��An identification card required by the commission under
�	this section to be worn by an individual [a person] while on duty
�	during the conduct of bingo must be in substantial compliance with
�	the form and content requirements prescribed by the commission
�	under this section.
�	�������(d)��The commission may not require any other individual
�	[person] licensed under this chapter, or an individual [a person]
�	acting on the license holder's behalf, to wear an identification
�	card, whether or not the individual [person] is present or
�	performing the individual's [person's] duties during the conduct of
�	bingo.
�	�������SECTION�22.��Subchapter G, Occupations Code, is amended by
�	adding Sections 2001.315 and 2001.316 to read as follows:
�	�������Sec.�2001.315.��LATE LICENSE RENEWAL. (a) �A person who
�	fails to renew the person's license under this chapter before the
�	date the license expires may renew the license after the expiration
�	date by:
�	�������������(1)��filing a license renewal application with the
�	commission not later than the 14th day after the date the license
�	expires, paying the applicable annual license fee, and paying a
�	late license renewal fee equal to 10 percent of the annual license
�	fee; or
�	�������������(2)��filing a license renewal application with the
�	commission not later than the 60th day after the date the license
�	expires, paying the applicable annual license fee, and paying a
�	late license renewal fee equal to 10 percent of the annual license
�	fee for each 14-day period occurring after the date the license
�	expires and before the date the renewal application is filed with
�	the commission.
�	�������(b)��A person who files a renewal application with the
�	commission under Subsection (a) may continue to perform the bingo
�	activities authorized under the license as if the license has not
�	expired until the license is renewed or renewal of the license is
�	denied.
�	�������(c)��To renew a license after the 60th day after the date the
�	license expires, the person must file an application for an
�	original license and cease all bingo activities for which the
�	license is required as of the 61st day after the date the license
�	expires until a new license is issued.
�	�������Sec.�2001.316.��DELIVERY OF COMMISSION NOTICE. �If notice
�	under this chapter is required to be given to an authorized
�	organization, the commission shall send the notice to the bingo
�	chairperson of the authorized organization and to the appropriate
�	commercial lessor, if applicable.
�	�������SECTION�23.��Section 2001.356(c), Occupations Code, is
�	amended to read as follows:
�	�������(c)��If a notice of temporary suspension is served on a
�	license holder, the director of bingo operations shall
�	simultaneously serve notice of a hearing, to be held not later than
�	the 14th�[10th] day after the date the notice is served, at which
�	the license holder must show cause why the license should not be
�	temporarily suspended on the 14th [10th] day after the date the
�	notice is served. If the license holder does not show cause, the
�	license is suspended.
�	�������SECTION�24.��Section 2001.404, Occupations Code, is amended
�	to read as follows:
�	�������Sec.�2001.404.��PRINCIPAL LOCATION. �A licensed authorized
�	organization may conduct bingo only in:
�	�������������(1)��the county where the organization has its primary
�	business office or another county contiguous to that county; or
�	�������������(2)��if the organization does not have a�[has no]
�	business office, in the county of the principal residence of its
�	chief executive officer, or a contiguous county of this state.
�	�������SECTION�25.��Section 2001.406(b), Occupations Code, is
�	amended to read as follows:
�	�������(b)��Rent for premises used for the conduct of bingo must be
�	paid in a lump sum. �Except as otherwise provided by this section,
�	the [The] lump sum must include all expenses authorized by Section
�	2001.458 that are paid by the licensed authorized organization to
�	the lessor in connection with the use of the premises. A licensed
�	authorized organization or unit may pay as a separate expense,
�	based on the percentage of the total area of the lessor's facility
�	that the organization or unit uses as the bingo premises for the
�	conduct of bingo, the organization's or unit's pro rata share of:
�	�������������(1)��property taxes on the facility that are paid by the
�	lessor, excluding any penalties and interest on the taxes;
�	�������������(2)��water, electric, and gas utility expenses for the
�	facility that are paid by the lessor, excluding any late fees or
�	other penalties; and
�	�������������(3)��property and casualty insurance premiums for the
�	facility that are paid by the lessor, excluding any late fees or
�	other penalties.
�	�������SECTION�26.��Section 2001.407(a), Occupations Code, is
�	amended to read as follows:
�	�������(a)��A licensed manufacturer may furnish, by sale or
�	otherwise, bingo equipment or supplies to a licensed distributor.
�	A [Except as provided by Section 2001.257(b), a] licensed
�	manufacturer may not furnish, by sale or otherwise, bingo equipment
�	or supplies to a person other than a licensed distributor.
�	�������SECTION�27.��Section 2001.411, Occupations Code, is amended
�	by adding Subsection (c-1) to read as follows:
�	�������(c-1)��An organization may designate as members of the
�	organization one or more individuals who elect to become members,
�	including all of the organization's directors, and the designated
�	members are bona fide members of the organization for purposes of
�	this section and other law.
�	�������SECTION�28.��Section 2001.419, Occupations Code, is amended
�	to read as follows:
�	�������Sec.�2001.419.��BINGO OCCASIONS. �(a) �[A bingo occasion
�	begins when the premises are opened to the public.
�	�������[(b)]��A licensed authorized organization may not conduct
�	more than three [a] bingo occasions [occasion more often than three
�	days] during a calendar week under an annual license [and not to
�	exceed more than four hours during a 24-hour period].
�	�������(b)��A bingo occasion may not exceed four hours.
�	�������(c)��[A licensed authorized organization may conduct two
�	bingo occasions during a 24-hour period.] No more than two bingo
�	occasions may be conducted at the same premises during one day
�	except that a third bingo occasion may be conducted under a
�	temporary license held by a licensed authorized organization at
�	that premises.
�	�������(d)��[No more than two licensed authorized organizations may
�	conduct bingo at the same premises during a 24-hour period.] If
�	more than one bingo occasion is conducted [two organizations
�	conduct bingo] at the same premises on the same day:
�	�������������(1)��[during a 24-hour period,] the bingo occasions
�	must be announced separately;
�	�������������(2)��the licensed times may not overlap; and
�	�������������(3)��bingo cards may be sold during a bingo occasion�for
�	play during a subsequent bingo occasion that is scheduled to begin
�	at the same premises in not more than eight hours after the sale of
�	cards for the subsequent occasion begins [, and an intermission of
�	at least 10 minutes must occur between the bingo occasions].
�	�������(e)��Bingo paper for a bingo occasion may be sold at the
�	licensed premises before the bingo occasion begins.��[If two
�	licensed authorized organizations are authorized to conduct bingo
�	at the same premises on the same day, the bingo occasion of one
�	organization may overlap with the bingo occasion of the other
�	organization, but their games must be separated by the intermission
�	required under Subsection (d). In that event, the intermission is
�	considered part of each organization's bingo occasion.]
�	�������SECTION�29.��Subchapter I-1, Chapter 2001, Occupations Code,
�	is amended by adding Section 2001.4335 to read as follows:
�	�������Sec.�2001.4335.��EXEMPTION FROM FRANCHISE TAX. �A unit
�	formed under this subchapter is exempt from the tax imposed under
�	Chapter 171, Tax Code.
�	�������SECTION�30.��Section 2001.435(b), Occupations Code, is
�	amended to read as follows:
�	�������(b)��Each member of a unit shall deposit into the unit's
�	bingo account all funds derived from the conduct of bingo, less the
�	amount awarded as cash prizes under Sections 2001.420(a) and (b).
�	The deposit shall be made not later than the second [next] business
�	day after the day of the bingo occasion on which the receipts were
�	obtained.
�	�������SECTION�31.��Section 2001.451, Occupations Code, is amended
�	by amending Subsections (a), (b), (c), (d), and (e) and adding
�	Subsections (g), (h), (i), (j), and (k) to read as follows:
�	�������(a)��A licensed authorized organization shall establish and
�	maintain one regular checking account designated as the
�	organization's "bingo account." The organization may [also]
�	maintain a separate�[an] interest-bearing savings account
�	designated as the "bingo savings account."
�	�������(b)��A licensed authorized organization shall deposit in the
�	bingo account all funds derived from the conduct of bingo, less the
�	amount awarded as cash prizes under Sections 2001.420(a) and (b).
�	Except as provided by Subsection (b-1), a deposit must be made not
�	later than the second [next] business day after the day of the bingo
�	occasion on which the receipts were obtained.
�	�������(c)��A licensed authorized organization may transfer [lend]
�	money from its general fund or other account to the organization's�
�	[its] bingo account or to the bingo account of a unit of which the
�	organization is a member under Subchapter I-1, if applicable, if:
�	�������������(1)��the balance in the bingo account to which the funds
�	are transferred is less than the maximum amount permitted by this
�	section; and
�	�������������(2)��the organization notifies [requests and receives
�	the prior approval of] the commission of the transfer not later than
�	the 14th day after the date of the transfer. [Except as provided by
�	this section, no other funds may be deposited in the bingo account.]
�	�������(d)��Except as permitted by Subsection (c), a [A] licensed
�	authorized organization may not commingle gross receipts derived
�	from the conduct of bingo with other funds of the organization.
�	�������(e)��Except as permitted by Subsection (c) of this section
�	and by Section 2001.453(2), a�[Sections 2001.453(a)(2) and (3),
�	the] licensed authorized organization may not transfer gross
�	receipts derived from the conduct of bingo to another account
�	maintained by the organization.
�	�������(g)��The bingo operations of a licensed authorized
�	organization must:
�	�������������(1)��result in net proceeds over the organization's
�	license period; or
�	�������������(2)��if the organization has a two-year license, result
�	in net proceeds over each 12-month period that ends on an
�	anniversary of the date the two-year license was issued.
�	�������(h)��Except as provided by Subsection (j), a licensed
�	authorized organization or a unit of licensed authorized
�	organizations may retain operating capital in the organization's or
�	unit's bingo account in an amount that:
�	�������������(1)��is equal to the organization's or unit's actual
�	average bingo expenses per quarter based on the preceding license
�	period, excluding prizes paid; and
�	�������������(2)��does not exceed a total of $50,000 for a single
�	organization or $50,000 for each member of a unit unless:
�	�������������������(A)��the commission by rule establishes a higher
�	amount for all organizations or units or one or more classes of
�	organizations or units; or
�	�������������������(B)��the bingo operations director, on request,
�	raises the operating capital limit for one organization or unit as
�	necessary to facilitate the operation of the organization or unit.
�	�������(i)��Prize fees held in escrow for remittance to the
�	commission are not included in the calculation of operating capital
�	under Subsection (h).
�	�������(j)��The commission shall adopt rules allowing a licensed
�	authorized organization to retain a maximum amount of operating
�	capital in the bingo account in excess of the amount provided by
�	Subsection (h) if the organization:
�	�������������(1)��has conducted bingo for less than one year;
�	�������������(2)��experiences circumstances beyond the control of
�	the organization, including force majeure, that necessitate an
�	increase in operating capital; or
�	�������������(3)��provides to the commission a credible business
�	plan for the conduct of bingo or for the organization's existing or
�	planned charitable purposes that an increase in operating capital
�	will reasonably further.
�	�������(k)��A licensed authorized organization may apply to the
�	commission for a waiver of the requirements of this section and
�	Section 2001.457. The commission may grant the waiver on a showing
�	of good cause by the organization that compliance with this section
�	and Section 2001.457 is detrimental to the organization's existing
�	or planned charitable purposes. An organization applying for a
�	waiver establishes good cause by providing to the commission:
�	�������������(1)��credible evidence of circumstances beyond the
�	control of the organization, including force majeure; or
�	�������������(2)��a credible business plan for the organization's
�	conduct of bingo or the organization's existing or planned
�	charitable purposes.
�	�������SECTION�32.��Sections 2001.452(a) and (c), Occupations Code,
�	are amended to read as follows:
�	�������(a)��Funds from the bingo account must be withdrawn by
�	electronic funds transfer or by�preprinted, consecutively numbered
�	checks or withdrawal slips, signed by an authorized representative
�	of the licensed authorized organization and made payable to a
�	person. A check or withdrawal slip may not be made payable to
�	"cash," "bearer," or a fictitious payee. The nature of the payment
�	made must also be noted on the face of the check or withdrawal slip. �
�	The purpose, amount, and payee for each electronic funds transfer
�	must be recorded in accordance with rules adopted by the
�	commission.
�	�������(c)��A licensed authorized organization shall [keep and]
�	account for all checks and withdrawal slips, including voided
�	checks and withdrawal slips.
�	�������SECTION�33.��Section 2001.453, Occupations Code, is amended
�	to read as follows:
�	�������Sec.�2001.453.��AUTHORIZED USES OF BINGO ACCOUNT. �[(a)] �A
�	licensed authorized organization may withdraw funds from�[draw a
�	check on] its bingo account only for:
�	�������������(1)��the payment of necessary or�[and] reasonable bona
�	fide expenses, including compensation of personnel, as permitted
�	under Section 2001.458 incurred and paid in connection with the
�	conduct of bingo; or
�	�������������(2)��the disbursement of net proceeds derived from the
�	conduct of bingo as provided by this subchapter [to charitable
�	purposes; or
�	�������������[(3) � � the transfer of net proceeds derived from the
�	conduct of bingo to the organization's bingo savings account
�	pending a disbursement to a charitable purpose.
�	�������[(b) � � A licensed authorized organization must make the
�	disbursement of net proceeds on deposit in the bingo savings
�	account to a charitable purpose by transferring the intended
�	disbursement back into the organization's bingo account and then
�	withdrawing an amount by a check drawn on the bingo account].
�	�������SECTION�34.��Sections 2001.457(a), (b), and (c), Occupations
�	Code, are amended to read as follows:
�	�������(a)��Before the end of each quarter, a licensed authorized
�	organization shall disburse all [for charitable purposes an amount
�	not less than 35 percent] of the organization's net proceeds
�	[adjusted gross receipts] from the preceding quarter, other than
�	amounts retained under Section 2001.451, as provided by this
�	subchapter [less the amount of authorized expenses not to exceed
�	six percent of the gross receipts].
�	�������(b)��If a licensed authorized organization fails to meet the
�	requirements of Subsection (a) [this section] for a quarter, the
�	commission in applying appropriate sanctions shall [may] consider
�	whether, taking into account the amount required to be disbursed
�	[distributed] during that quarter and the three preceding quarters
�	[and the charitable distributions for each of those quarters], the
�	organization has disbursed [distributed] a total amount sufficient
�	to have met the disbursement [35 percent] requirement for that
�	quarter and the three preceding quarters combined.
�	�������(c)��A licensed authorized organization that has ceased to
�	conduct bingo for any reason and that has unexpended bingo funds
�	shall disburse those funds as provided by this subchapter [to
�	charitable purposes] before the end of the next calendar quarter
�	after the calendar quarter in which the organization ceases to
�	conduct bingo.
�	�������SECTION�35.��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 callers, cashiers, ushers, janitorial
�	services, and utility supplies and services;
�	�������������(9)��license fees;
�	�������������(10)��attending a bingo seminar or convention required
�	under Section 2001.107; and
�	�������������(11)��debit card transaction fees and electronic funds
�	transfer fees.
�	�������SECTION�36.��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;
�	�������������(8)��janitorial services; and
�	�������������(9)��license fees[; and
�	�������������[(10) � � payment for services provided by a system
�	service provider].
�	�������SECTION�37.��Section 2001.502, Occupations Code, is amended
�	to read as follows:
�	�������Sec.�2001.502.��PRIZE FEE. �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 awarded.
�	�������SECTION�38.��Sections 2001.505(a) and (b), Occupations Code,
�	are amended to read as follows:
�	�������(a)��A licensed authorized organization conducting bingo
�	shall submit quarterly to the commission [and to the comptroller] a
�	report under oath stating:
�	�������������(1)��the amount of the gross receipts derived from
�	bingo;
�	�������������(2)��each item of expense incurred or paid;
�	�������������(3)��each item of expenditure made or to be made, the
�	name and address of each person to whom each item has been paid or is
�	to be paid, and a detailed description of the merchandise purchased
�	or the services rendered;
�	�������������(4)��the net proceeds derived from bingo;
�	�������������(5)��the use to which the proceeds have been or are to
�	be applied; and
�	�������������(6)��a list of prizes offered and given, with their
�	respective values.
�	�������(b)��A license holder shall[:
�	�������������[(1)]��maintain records to substantiate the contents of
�	each report[; and
�	�������������[(2) � � furnish a copy of each report to the appropriate
�	governing body].
�	�������SECTION�39.��Section 2001.603(b), Occupations Code, is
�	amended to read as follows:
�	�������(b)��Not later than the 21st [14th] day after the date on
�	which the report is issued, the director shall give written notice
�	of the report to the person alleged to have committed the violation.
�	�������SECTION�40.��Sections 2001.656(a), (b), and (d), Occupations
�	Code, are amended to read as follows:
�	�������(a)��If a majority of the qualified voters voting on the
�	question in a legalization election vote in favor of legalization,
�	bingo is legalized throughout the political subdivision beginning
�	on the 14th [10th] day after the date the result of the election is
�	officially declared, except as otherwise provided as to a part of
�	the political subdivision for which Section 2001.657 requires a
�	contrary status.
�	�������(b)��If a majority of the qualified voters voting on the
�	question in a prohibitory election vote in favor of prohibition,
�	bingo is prohibited throughout the political subdivision beginning
�	on the 14th [10th] day after the date the result of the election is
�	officially declared, except as otherwise provided as to a part of
�	the political subdivision for which Section 2001.657 requires a
�	contrary status.
�	�������(d)��The governing body of a political subdivision in which a
�	bingo election has been held shall not later than the 14th [10th]
�	day after the date of the election give written notification to the
�	commission of the results of the election. If as a result of the
�	election bingo is legalized in the political subdivision, the
�	governing body shall furnish the commission with a map prepared by
�	the governing body indicating the boundaries of the political
�	subdivision in which bingo may be conducted.
�	�������SECTION�41.��Section 411.108, Government Code, is amended by
�	adding Subsection (a-1) and amending Subsection (b) to read as
�	follows:
�	�������(a-1)��The Texas Lottery Commission is entitled to obtain
�	from the department criminal history record information maintained
�	by the department that relates to a person licensed under Chapter
�	2001, Occupations Code, or described by Section 2001.3025,
�	Occupations Code.
�	�������(b)��Criminal history record information obtained by the
�	commission under Subsection (a) or (a-1) may not be released or
�	disclosed to any person except on court order or as provided by
�	Subsection (c).
�	�������SECTION�42.��The following provisions of the Occupations
�	Code are repealed:
�	�������������(1)��Sections 2001.002(3) and (10);
�	�������������(2)��Section 2001.057(b);
�	�������������(3)��Section 2001.160(c);
�	�������������(4)��Section 2001.161(a);
�	�������������(5)��Section 2001.303;
�	�������������(6)��Section 2001.402(b);
�	�������������(7)��Section 2001.406(c);
�	�������������(8)��Section 2001.417;
�	�������������(9)��Section 2001.457(d);
�	�������������(10)��Section 2001.505(c);
�	�������������(11)��Section 2001.553(b); and
�	�������������(12)��Subchapter F, Chapter 2001.
�	�������SECTION�43.��The Texas Lottery Commission shall adopt the
�	rules required by Chapter 2001, Occupations Code, as amended by
�	this Act, not later than April 1, 2010.
�	�������SECTION�44.��(a) If on or after the effective date of this
�	Act a licensed authorized organization has a balance in its bingo
�	account of more than the maximum amount of operating capital
�	allowed by Chapter 2001, Occupations Code, as amended by this Act,
�	the organization shall distribute the funds in excess of the
�	organization's maximum operating capital allowed by Chapter 2001,
�	Occupations Code, as amended by this Act, not later than:
�	�������������(1)��the first anniversary of the effective date of
�	this Act if the excess amount is less than 200 percent of the
�	maximum amount of operating capital;
�	�������������(2)��the second anniversary of the effective date of
�	this Act if the excess amount is 200 percent or more but less than
�	300 percent of the maximum amount of operating capital; or
�	�������������(3)��the third anniversary of the effective date of
�	this Act if the excess amount is 300 percent or more of the maximum
�	amount of operating capital.
�	�������(b)��The Texas Lottery Commission may waive the requirements
�	of Subsection (a) of this section on application and a showing of
�	good cause by a licensed authorized organization.
�	�������(c)��This section expires January 1, 2013.
�	�������SECTION�45.��This Act takes effect October 1, 2009.
�
�
�	______________________________	______________________________
�	���President of the Senate	Speaker of the House�����
�
�
�	�������I certify that H.B. No. 1474 was passed by the House on May 1,
�	2009, by the following vote:��Yeas 125, Nays 16, 1 present, not
�	voting.
�
�	______________________________
�	Chief Clerk of the House���
�
�
�	�������I certify that H.B. No. 1474 was passed by the Senate on May
�	26, 2009, by the following vote:��Yeas 30, Nays 1.
�
�	______________________________
�	Secretary of the Senate����
�	APPROVED:��_____________________
�	�������������������Date����������
�	�
�	����������_____________________
�	�����������������Governor�������