Bill Text: TX HB2197 | 2013-2014 | 83rd Legislature | Enrolled

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Bill Title: Relating to the continuation and functions of the Texas Lottery Commission; providing penalties; imposing and changing fees.

Sponsorship: Bipartisan Bill

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [HB2197 Detail]

Download: Texas-2013-HB2197-Enrolled.html

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H.B. No. 2197

AN ACT
relating to the continuation and functions of the Texas Lottery
Commission; providing penalties; imposing and changing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 466.014, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) A contract between the division and a lottery operator
under Subsection (b) must contain a provision allowing the contract
to be terminated without penalty if the division is abolished.
SECTION 2. Subchapter B, Chapter 466, Government Code, is
amended by adding Section 466.028 to read as follows:
Sec. 466.028. COMPREHENSIVE BUSINESS PLAN. (a) The
commission shall develop a comprehensive business plan to guide the
commission's major initiatives. The plan must at a minimum
include:
(1) specific goals for the agency; and
(2) an evaluation of:
(A) the agency's overall performance;
(B) the effectiveness of specific programs and
initiatives;
(C) the ongoing efficiency of agency operations;
(D) the amount of lottery revenue that is
generated for state purposes other than the payment of prizes; and
(E) the factors affecting the amount of lottery
revenue received and disbursed, including ticket sales and
administrative efficiency.
(b) The commission as frequently as the commission
determines appropriate shall review the comprehensive business
plan and at least annually hold a public meeting to discuss the plan
or updates to the plan.
SECTION 3. Subchapter C, Chapter 466, Government Code, is
amended by adding Section 466.1005 to read as follows:
Sec. 466.1005. PROCUREMENTS. (a) The commission may
purchase or lease facilities, goods, and services and make any
purchases, leases, or contracts necessary for carrying out the
purposes of this chapter.
(b) The commission shall review and must approve all major
procurements as provided by commission rule. The commission by
rule shall establish a procedure to determine what constitutes a
major procurement based on the cumulative value of a contract and
other relevant factors. This subsection does not require a
commission member to sign the contract.
(c) The commission may delegate to the executive director
the authority to approve procurements other than major
procurements.
SECTION 4. Sections 466.101(a) and (b), Government Code,
are amended to read as follows:
(a) The commission and executive director may establish
procedures for the purchase or lease of facilities, goods, and
services and make any purchases, leases, or contracts that are
necessary for carrying out the purposes of this chapter. The
procedures must, as determined feasible and appropriate by the
commission and executive director, promote competition to the
maximum extent possible.
(b) In all procurement decisions, the commission and
executive director shall take into account the particularly
sensitive nature of the lottery and shall act to promote and ensure
integrity, security, honesty, and fairness in the operation and
administration of the lottery and the objective of producing
revenues for the state treasury.
SECTION 5. Section 466.155, Government Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) A hearing under this section must be conducted by the
State Office of Administrative Hearings and is subject to Section
2001.058(e).
SECTION 6. Sections 466.160(b) and (c), Government Code,
are amended to read as follows:
(b) The commission may summarily suspend a sales agent's
license if proceedings for a preliminary hearing before the State
Office of Administrative Hearings [commission or the commission's
representative] are initiated simultaneously with the summary
suspension. The preliminary hearing shall be set for a date not
later than 10 days after the date of the summary suspension, unless
the parties agree to a later date.
(c) At the preliminary hearing, the sales agent must show
cause why the license should not remain suspended pending a final
hearing on suspension or revocation. [Chapter 2001 does not apply
in the administration and enforcement of the summary suspension of
a license under this section.] The rules governing a hearing on any
other license suspension or revocation under this chapter govern a
final administrative hearing under this subsection. A hearing
under this section is subject to Section 2001.058(e).
SECTION 7. Section 466.252, Government Code, is amended by
adding Subsection (c) to read as follows:
(c) The commission by rule shall require that a ticket that
contains a number of words, as determined by commission rule, in a
language other than English must include disclosures in that
language.
SECTION 8. Section 466.408, Government Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) If a claim is not made for prize money on or before the
180th day after the date on which the winner was selected, the prize
money shall be used in the following order of priority:
(1) subject to legislative appropriation, not more
than $20 million in prize money each year may be deposited to [or
appropriated from] the [Texas] Department of State Health Services
state-owned multicategorical teaching hospital account, which is
an account in the general revenue fund, or appropriated from that
account to provide indigent health care services as specified in
Chapter 61, Health and Safety Code;
(2) not more than $5 million in prize money each year
may be appropriated to the Health and Human Services Commission and
shall be used to support the provision of inpatient hospital
services in hospitals located in the 15 counties that comprise the
Texas-Mexico border area, with payment for those services to be not
less than the amount established under the Tax Equity and Fiscal
Responsibility Act of 1982 (TEFRA) cost reimbursement methodology
for the hospital providing the services;
(3) the remaining amount, not to exceed $5 million in
prize money in each state fiscal year less any amount deposited in
the fund in that year attributable to the lottery game operated
under Section 466.027, shall be deposited to the fund for veterans'
assistance; and
(4) all prize money subject to this section and not
deposited or appropriated in accordance with [from the Texas
Department of Health state-owned multicategorical teaching
hospital account, not appropriated to the Health and Human Services
Commission for the purpose specified in] Subdivision (1), (2), or
[and not deposited under Subdivision] (3)[,] shall be deposited to
the credit of the foundation school [in the general revenue] fund
[and may be appropriated for any purpose as determined by the
legislature, including the provision of indigent health care
services as specified in Chapter 61, Health and Safety Code].
(b-1) Notwithstanding Subsection (b), if the legislature
appropriates money from the general revenue fund to the programs
described by Subsection (b) in an amount equal to the maximum amount
of money that could be appropriated from unclaimed prize money to
those programs under that subsection, all unclaimed prize money
must be deposited to the credit of the foundation school fund.
SECTION 9. Section 467.002, Government Code, is amended to
read as follows:
Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is
subject to Chapter 325 (Texas Sunset Act). Unless continued in
existence as provided by that chapter, the commission is abolished
and this chapter, Chapter 466 of this code, and Chapter 2001,
Occupations Code, expire September 1, 2025 [2013].
SECTION 10. Subchapter A, Chapter 467, Government Code, is
amended by adding Section 467.0021 to read as follows:
Sec. 467.0021. LEGISLATIVE REVIEW. (a) The Legislative
Committee to Review the Texas Lottery and Texas Lottery Commission
is composed of 10 members as follows:
(1) five members of the senate appointed by the
lieutenant governor; and
(2) five members of the house of representatives
appointed by the speaker of the house of representatives.
(b) The lieutenant governor and speaker shall each name a
co-chair of the committee from the members appointed by each
officer.
(c) The committee shall study:
(1) charitable bingo authorized under Chapter 2001,
Occupations Code, and the distribution of charitable bingo revenue,
including:
(A) the portion of the total amount of charitable
bingo revenue collected by a licensed authorized organization that
the organization should be required to use for the charitable
purposes of the organization;
(B) any detrimental impact to the organization,
or other policy considerations, related to the establishment of
mandatory distribution requirements for charitable bingo revenue;
and
(C) market-based approaches to conducting and
administering bingo operations and revenues that maximize the
availability of funds to be used for charitable purposes; and
(2) the elimination of the state lottery, including:
(A) development of a proposed schedule and
process for phasing out the state lottery;
(B) any potential consequences detrimental to
this state of phasing out the state lottery or of the proposed
schedule and process;
(C) the potential impact of eliminating the state
lottery on this state's biennial budget and on any programs funded
by the state lottery; and
(D) any other concerns identified by the
committee related to eliminating the state lottery.
(d) The committee has all the powers provided by resolution
adopted by the 82nd or 83rd Legislature for a joint interim study
committee.
(e) The committee shall make any finding and
recommendations the committee determines appropriate and shall
report its finding and recommendations to the legislature. As part
of its findings and recommendations, the committee may recommend
that the commission audit specific licensed authorized
organizations conducting bingo in this state. The committee shall
make its initial report not later than December 1, 2014, and may
make any supplemental reports the committee considers appropriate.
(f) This section expires September 1, 2015.
SECTION 11. Section 467.021(a), Government Code, is amended
to read as follows:
(a) The commission is composed of five [three] members
appointed by the governor with the advice and consent of the senate.
SECTION 12. Section 467.022, Government Code, is amended to
read as follows:
Sec. 467.022. TERM OF OFFICE. Members hold office for
staggered terms of six years, with the terms of either one or two
members [member's term] expiring February 1 of each odd-numbered
year.
SECTION 13. Section 467.024, Government Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
as follows:
(a) An individual is not eligible to be an appointed member
of the commission if the individual:
(1) is registered, certified, or licensed by a
regulatory agency in the field of bingo or lottery;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization regulated by the commission or receiving funds from
the commission;
(3) [(2)] is employed by or participates in the
management of a business entity or other organization regulated by
[the commission] or receiving funds from the commission;
(4) [(3)] uses or receives a substantial amount of
tangible goods, services, or funds from the commission, other than
compensation or reimbursement authorized by law for commission
membership, attendance, or expenses;
(5) [(4)] is an officer, employee, or paid consultant
of a Texas trade association in the field of bingo or lottery;
(6) [(5)] is required to register as a lobbyist under
Chapter 305 because of the person's activities for compensation on
behalf of a profession related to the operation of the commission;
(7) [(6)] is married to an individual described by
Subdivisions (2)-(6) [Subdivision (1)-(5)];
(8) [(7)] has been convicted of a felony or of any
crime involving moral turpitude; or
(9) [(8)] is not a citizen of the United States.
(c) A person may not be a commission employee employed in a
"bona fide executive, administrative, or professional capacity,"
as that phrase is used for purposes of establishing an exemption to
the overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of bingo or
lottery; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of bingo or
lottery.
(d) A person may not act as the general counsel to the
commission if the person is required to register as a lobbyist under
Chapter 305 because of the person's activities for compensation on
behalf of a profession related to the operation of the commission.
SECTION 14. Subchapter B, Chapter 467, Government Code, is
amended by adding Section 467.0255 to read as follows:
Sec. 467.0255. TRAINING. (a) A person who is appointed to
and qualifies for office as a member of the commission may not vote,
deliberate, or be counted as a member in attendance at a meeting of
the commission until the person completes a training program that
complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the commission;
(2) the programs, functions, rules, and budget of the
commission;
(3) the results of the most recent formal audit of the
commission;
(4) the requirements of laws relating to open
meetings, public information, administrative procedure, and
conflicts of interest; and
(5) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
(c) A person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
SECTION 15. Sections 467.026(a) and (c), Government Code,
are amended to read as follows:
(a) It is a ground for removal from the [The governor may
remove a] commission that a member [if the member]:
(1) does not have at the time of taking office
[appointment] the qualifications required by Sections 467.023 and
467.024 [for appointment to the commission];
(2) does not maintain during service on the commission
the qualifications required by Sections 467.023 and 467.024 [for
appointment to the commission];
(3) is ineligible for membership under [violates a
prohibition established by] Section 467.023, 467.024, or 467.025;
(4) cannot discharge the member's duties for a
substantial part of the member's term [for which the member is
appointed] because of illness or disability; or
(5) is absent from more than half of the regularly
scheduled commission meetings that the member is eligible to attend
during a calendar year without an excuse approved [unless the
absence is excused] by majority vote of the commission.
(c) If the executive director [presiding officer] has
knowledge that a potential ground for removal exists, the executive
director [presiding officer] shall notify the presiding officer of
the commission of the potential ground. The presiding officer
shall then notify the governor and the attorney general that a
potential ground for removal exists. If the potential ground for
removal involves the presiding officer, the executive director
shall notify the next highest ranking officer of the commission,
who shall then notify the governor and the attorney general that a
potential ground for removal exists.
SECTION 16. Subchapter B, Chapter 467, Government Code, is
amended by adding Section 467.037 to read as follows:
Sec. 467.037. DIVISION OF RESPONSIBILITIES. The commission
shall develop and implement policies that clearly separate the
policymaking responsibilities of the commission and the management
responsibilities of the executive director and the staff of the
commission.
SECTION 17. Subchapter C, Chapter 467, Government Code, is
amended by adding Sections 467.109, 467.110, and 467.111 to read as
follows:
Sec. 467.109. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION POLICY. (a) The commission shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008 for the adoption of commission rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009 to assist in the resolution of
internal and external disputes under the commission's
jurisdiction.
(b) The commission's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The commission shall:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) provide training as needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures.
Sec. 467.110. PUBLIC PARTICIPATION. The commission shall
develop and implement policies that provide the public with a
reasonable opportunity to appear before the commission and to speak
on any issue under the jurisdiction of the commission.
Sec. 467.111. COMPLAINTS. (a) The commission shall
maintain a system to promptly and efficiently act on each complaint
filed with the commission. The commission shall maintain
information about parties to the complaint, the subject matter of
the complaint, a summary of the results of the review or
investigation of the complaint, and its disposition.
(b) The commission shall make information available to the
public describing the commission's procedures for complaint
investigation and resolution.
(c) The commission shall periodically notify the complaint
parties of the status of the complaint until final disposition.
(d) The commission by rule shall adopt and publish
procedures governing the entire complaint process from submission
to disposition.
(e) The commission shall analyze the complaints filed with
the commission to identify any trends or issues related to
violations of state laws under the commission's jurisdiction. The
analysis must:
(1) categorize complaints based on the type of
violation alleged;
(2) track each complaint from submission to
disposition;
(3) evaluate the effectiveness of the commission's
enforcement process; and
(4) include any additional information the commission
considers necessary.
(f) The commission shall prepare a report on the trends and
issues identified under Subsection (e) and make the report
available to the public. The commission shall address the
identified trends and issues, including trends and issues related
to the regulation of lottery operations under Chapter 466 and of
bingo under Chapter 2001, Occupations Code.
SECTION 18. Subchapter B, Chapter 2001, Occupations Code,
is amended by adding Section 2001.0541 to read as follows:
Sec. 2001.0541. RULES ON CONSEQUENCES OF CRIMINAL
CONVICTION. The commission shall adopt rules and guidelines as
necessary to comply with Chapter 53 when using criminal history
record information under this chapter to issue or renew a bingo
license or to list or renew the listing of an individual in the
registry of approved bingo workers.
SECTION 19. Subchapter B, Chapter 2001, Occupations Code,
is amended by adding Section 2001.061 to read as follows:
Sec. 2001.061. LICENSE RENEWAL PROCESS. The commission
shall adopt rules governing each part of the license renewal
process for all licenses issued under this chapter, from
application submission to completion of the renewal process. The
process must require a license holder renewing a license to submit
to the commission the information required in the initial license
application.
SECTION 20. Section 2001.104(d), Occupations Code, is
amended to read as follows:
(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].
SECTION 21. Sections 2001.105(a) and (b), Occupations Code,
are 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
felony,] a gambling offense or [,] criminal fraud[, 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].
(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 or[,] 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 22. Section 2001.154(a), Occupations Code, is
amended to read as follows:
(a) The commission may not issue a commercial lessor license
to or renew a commercial lessor license of:
(1) a person convicted of [a felony,] criminal fraud
or[,] a gambling or gambling-related offense[, or a crime of moral
turpitude if less than 10 years has elapsed since termination of a
sentence, parole, mandatory supervision, or community supervision
served for the 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;
(5) a person in which a person covered by Subdivision
(1), (2), (3), or (4) or a person married or related in the first
degree by consanguinity or affinity, as determined under Chapter
573, Government Code, to one of those persons has greater than a 10
percent proprietary, equitable, or credit interest or in which one
of those persons is active or employed;
(6) a foreign corporation or other foreign legal
entity;
(7) an individual who is not a resident of this state;
(8) a corporation or other legal entity owned or
controlled by:
(A) a foreign corporation; or
(B) an individual who is not a resident of this
state; or
(9) a corporation or other legal entity:
(A) whose shares are publicly traded; or
(B) owned or controlled by a corporation whose
shares are publicly traded.
SECTION 23. Section 2001.158(d), Occupations Code, is
amended to read as follows:
(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].
SECTION 24. Section 2001.202, Occupations Code, is amended
to read as follows:
Sec. 2001.202. ELIGIBILITY FOR MANUFACTURER'S LICENSE. The
following persons are not eligible for a manufacturer's license:
(1) a person convicted of [a felony,] criminal fraud
or[,] 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];
(2) a person who is or has been a professional gambler
or gambling promoter;
(3) an elected or appointed public officer or a public
employee;
(4) an owner, officer, director, shareholder, agent,
or employee of a licensed commercial lessor;
(5) a person who conducts, promotes, or administers,
or assists in conducting, promoting, or administering, bingo for
which a license is required by this chapter;
(6) a distributor required to be licensed under this
chapter;
(7) a person who has had a license to manufacture,
distribute, or supply bingo equipment or supplies revoked within
the preceding year by another state;
(8) an owner, officer, director, or shareholder of, or
a person holding an equitable or credit interest in, another
manufacturer or distributor licensed or required to be licensed
under this chapter; or
(9) a person:
(A) in which a person described by Subdivision
(1), (2), (3), (4), (5), (6), (7), or (8) or in which a person
married or related in the first degree by consanguinity or affinity
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; or
(B) in whose application for a manufacturer's
license a person described by Subdivision (1), (2), (3), (4), (5),
(6), (7), or (8) is required to be named.
SECTION 25. Section 2001.203(b), Occupations Code, is
amended to read as follows:
(b) The application must include:
(1) the name and address of the applicant and the name
and address of each of its locations where bingo supplies or
equipment are manufactured;
(2) a full description of each type of bingo supply or
equipment that the applicant intends to manufacture or market in
this state and the brand name, if any, under which each item will be
sold;
(3) if the applicant:
(A) is not a corporation, the name and home
address of each owner; or
(B) is a corporation, the name and home address
of each officer and director and each person owning more than 10
percent of a class of stock in the corporation;
(4) if the applicant is a foreign corporation or other
foreign legal entity, the name, business name and address, and
address of its registered agent for service in this state;
(5) the name and address of each manufacturer,
supplier, and distributor in which the applicant has a financial
interest and the details of that financial interest, including any
indebtedness between the applicant and the manufacturer, supplier,
or distributor of $5,000 or more;
(6) information regarding whether the applicant or a
person required to be named in the application has been convicted in
this state or another state of [a felony,] criminal fraud or [,] 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 26. Section 2001.205(a), Occupations Code, is
amended to read as follows:
(a) The commission by rule shall set the annual
manufacturer's license fee in an amount reasonable to defray
administrative costs [is $3,000].
SECTION 27. Section 2001.207, Occupations Code, is amended
to read as follows:
Sec. 2001.207. ELIGIBILITY FOR DISTRIBUTOR'S LICENSE. The
following persons are not eligible for a distributor's license:
(1) a person convicted of [a felony,] criminal fraud
or[,] 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, community supervision, or mandatory
supervision served for the offense];
(2) a person who is or has been a professional gambler
or gambling promoter;
(3) an elected or appointed public officer or a public
employee;
(4) an owner, officer, director, shareholder, agent,
or employee of a licensed commercial lessor;
(5) a person who conducts, promotes, or administers,
or assists in conducting, promoting, or administering bingo for
which a license is required by this chapter;
(6) a manufacturer required to be licensed under this
chapter;
(7) a person who has had a license to manufacture,
distribute, or supply bingo equipment or supplies revoked within
the preceding year by another state;
(8) an owner, officer, director, or shareholder of, or
a person having an equitable or credit interest in, another
manufacturer or distributor licensed or required to be licensed
under this chapter; or
(9) a person:
(A) in which a person described by Subdivision
(1), (2), (3), (4), (5), (6), (7), or (8) or in which a person
married or related in the first degree by consanguinity or
affinity, as determined under Subchapter B, 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; or
(B) in whose application a person described by
Subdivision (1), (2), (3), (4), (5), (6), (7), or (8) is required to
be named.
SECTION 28. 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 10 percent of a class of stock in the corporation;
(5) if a foreign corporation or other foreign legal
entity, the name, business name and address, and address of its
registered agent for service in this state;
(6) a full description of the type of bingo supply or
equipment that the applicant intends to store or distribute in this
state and the name of the manufacturer of each item and the brand
name, if any, under which the item will be sold or marketed;
(7) the name and address of a manufacturer, supplier,
or distributor in which the applicant has a financial interest and
the details of that financial interest, including an indebtedness
between the applicant and the manufacturer, supplier, or
distributor of $5,000 or more;
(8) information regarding whether the applicant or a
person required to be named in the application has been convicted in
this state or another state of [a felony,] criminal fraud or [,] 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 29. Section 2001.209(a), Occupations Code, is
amended to read as follows:
(a) The commission by rule shall set the annual
distributor's license fee in an amount reasonable to defray
administrative costs [is $1,000].
SECTION 30. Section 2001.214(b), Occupations Code, is
amended to read as follows:
(b) A manufacturer or distributor 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 [plus $1,000].
SECTION 31. Section 2001.306, Occupations Code, is amended
by amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A license issued under this chapter may be amended on
application to the commission and on payment of a [$10] fee in the
amount required by the commission if the subject matter of the
proposed amendment could properly have been included in the
original license.
(a-1) The commission by rule shall establish an amendment
fee schedule. The amount of a fee charged by the commission may
vary based on the complexity of the proposed license amendment.
SECTION 32. Section 2001.313, Occupations Code, is amended
by adding Subsection (b-2) to read as follows:
(b-2) The commission by rule may impose a fee for an initial
registration application and renewal application submitted under
this section. The commission shall set the fee in an amount
sufficient to cover the application processing costs, including a
criminal history background check, identification card, and other
administrative costs the commission considers appropriate.
SECTION 33. Section 2001.352, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) A hearing under this section must be conducted by the
State Office of Administrative Hearings and is subject to Section
2001.058(e), Government Code.
SECTION 34. Section 2001.353, Occupations Code, is amended
to read as follows:
Sec. 2001.353. DISCIPLINE [SUSPENSION OR REVOCATION] OF
LICENSE AND REGISTRATION HOLDERS. (a) After a hearing, the
commission may suspend, [or] revoke, or refuse to renew a license or
registration issued under this chapter for:
(1) failure to comply with this chapter or a
commission rule; or
(2) a reason that would allow or require the
commission to refuse to issue or renew a license or registration of
the same class.
(b) The commission may place on probation a person whose
license or registration is suspended. If a license or registration
suspension is probated, the commission may require the person:
(1) to report regularly to the commission on the
matters that are the basis of the probation;
(2) to limit the person's activities under the license
or registration in the manner prescribed by the commission; or
(3) to take any other reasonable action prescribed by
the commission to address the matters that are the basis of the
probation.
(c) If the person fails to comply with the conditions of
probation, the commission may suspend or revoke the person's
license or registration.
(d) The commission by rule shall:
(1) adopt written guidelines to ensure that probation
is administered consistently; and
(2) develop a system to track compliance with
probation requirements.
SECTION 35. Section 2001.354, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) A hearing under this section must be conducted by the
State Office of Administrative Hearings and is subject to Section
2001.058(e), Government Code.
SECTION 36. Section 2001.355, Occupations Code, is amended
by amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) Before temporarily suspending a license, the director
of bingo operations must follow any prehearing rules adopted by the
commission to determine if the license holder's continued operation
may constitute:
(1) an immediate threat to the health, safety, morals,
or welfare of the public; or
(2) a financial loss to this state, which includes a
license holder's failure to remit taxes under Section 2001.501 or
prize fee payments under Section 2001.502 to the commission as
required by those sections.
(d) The commission shall adopt rules to govern the temporary
suspension of a license under this section.
SECTION 37. Subchapter H, Chapter 2001, Occupations Code,
is amended by adding Section 2001.358 to read as follows:
Sec. 2001.358. SCHEDULE OF SANCTIONS. (a) The commission
by rule shall adopt a schedule of sanctions that defines and
summarizes violations of this chapter or commission rules adopted
under this chapter to ensure that the sanctions imposed are
appropriate to the violation.
(b) The schedule must:
(1) allow deviations from the schedule for mitigating
circumstances clearly established by the commission;
(2) include a list of the most common violations and
the sanctions assessed for those violations, including revocation,
suspension, and denial of license or registration renewal; and
(3) establish the sanctions in accordance with the
seriousness or frequency of each type of violation.
SECTION 38. Sections 2001.437(d) and (g), Occupations Code,
are amended to read as follows:
(d) An applicant for a unit manager license must file with
the commission a written application on a form prescribed by the
commission that includes:
(1) the name and address of the applicant;
(2) information regarding whether the applicant, or
any officer, director, or employee of the applicant, has been
convicted of [a felony,] criminal fraud or a[,] gambling or
gambling-related offense[, or crime of moral turpitude]; and
(3) any other information required by commission rule.
(g) A person is not eligible for a unit manager license
under this subchapter if the person, or any officer, director, or
employee of the person:
(1) has been convicted of [a felony,] criminal fraud
or [,] a gambling or gambling-related offense[, or crime of moral
turpitude, if less than 10 years has elapsed since the termination
of a sentence, parole, or community supervision served for the
offense];
(2) is an owner, officer, or director of a licensed
commercial lessor, is employed by a licensed commercial lessor, or
is related to a licensed commercial lessor within the second degree
by consanguinity or affinity, unless the holder of the license is a
licensed authorized organization or an association of licensed
authorized organizations; or
(3) holds or is listed on another license under this
chapter, unless the holder of the license is a licensed authorized
organization or an association of licensed authorized
organizations.
SECTION 39. Section 2001.557, Occupations Code, is amended
to read as follows:
Sec. 2001.557. INSPECTION OF PREMISES. (a) The
commission, its officers or agents, or a state, municipal, or
county peace officer may enter and inspect the contents of premises
where:
(1) bingo is being conducted or intended to be
conducted; or
(2) equipment used or intended for use in bingo is
found.
(b) The commission by rule shall develop and implement
policies and procedures to:
(1) prioritize the inspection of premises where bingo
is being conducted or is intended to be conducted in accordance with
the risk factors the commission considers important, including:
(A) the amount of money derived from the conduct
of bingo at the premises;
(B) the compliance history of the premises; and
(C) the amount of time that has elapsed since the
date of the immediately preceding commission inspection of the
premises; and
(2) inspect premises where bingo is being conducted or
is intended to be conducted in accordance with the priorities
established under Subdivision (1).
SECTION 40. Section 2001.560, Occupations Code, is amended
by adding Subsections (c-1) and (c-2) to read as follows:
(c-1) The commission by rule shall develop a policy for
auditing license holders. The bingo division shall use audit risk
analysis procedures established by the commission to:
(1) annually identify which license holders are most
at risk of violating this chapter or rules adopted under this
chapter; and
(2) develop a plan for auditing the identified license
holders that includes:
(A) a schedule for the audits of the identified
license holders;
(B) procedures to annually update the plan based
on successive risk analyses; and
(C) a completion date for each audit that is not
later than the fifth anniversary of the date the license holder was
identified as a candidate for audit.
(c-2) The bingo division shall provide to the commission a
copy of the auditing plan developed under Subsection (c-1).
SECTION 41. Section 2001.605, Occupations Code, is amended
by adding Subsection (c) to read as follows:
(c) A hearing under this section must be conducted by the
State Office of Administrative Hearings and is subject to Section
2001.058(e), Government Code.
SECTION 42. The following provisions are repealed:
(1) Sections 466.003 and 466.025, Government Code; and
(2) Section 2001.002(8-a), Occupations Code.
SECTION 43. Section 466.252(c), Government Code, as added
by this Act, applies only to a lottery game ticket that is initially
offered on or after January 1, 2014.
SECTION 44. Section 466.408(b), Government Code, as amended
by this Act, applies only to a prize for which the winner is
selected on or after September 1, 2013. A prize for which the winner
was selected before September 1, 2013, is governed by the law as it
existed immediately before the effective date of this Act, and that
law is continued in effect for that purpose.
SECTION 45. (a) Not later than January 1, 2014, the Texas
Lottery Commission shall adopt all rules, policies, and procedures
required by the changes in law made by this Act.
(b) Not later than September 1, 2014, the Texas Lottery
Commission shall adopt the comprehensive business plan required by
Section 466.028, Government Code, as added by this Act.
SECTION 46. (a) The changes in law made by this Act in the
prohibitions or qualifications applying to a member of the Texas
Lottery Commission do not affect the entitlement of a member
serving on the Texas Lottery Commission immediately before
September 1, 2013, to continue to serve and function as a member of
the Texas Lottery Commission for the remainder of the member's
term. Those changes in law apply only to a member appointed on or
after September 1, 2013.
(b) As soon as practicable after the effective date of this
Act, the governor shall appoint two additional members to the Texas
Lottery Commission. In appointing those members, the governor
shall appoint one person to a term expiring February 1, 2017, and
one to a term expiring February 1, 2019.
(c) The change in law made by this Act to Chapter 467,
Government Code, relating to the investigation of a complaint
applies only to a complaint filed with the Texas Lottery Commission
on or after September 1, 2013. A complaint filed with the
commission or a division of the commission before September 1,
2013, is governed by the law as it existed immediately before that
date, and the former law is continued in effect for that purpose.
(d) The change in law made by this Act requiring the Texas
Lottery Commission to approve a procurement applies only to a
procurement or a contract for a procurement made on or after the
effective date of this Act. A procurement or procurement contract
made before the effective date of this Act is governed by the law in
effect when the procurement or contract was made, and the former law
is continued in effect for that purpose.
(e) The changes in law made by this Act governing
eligibility of a person for a license apply only to the issuance or
renewal of a license by the Texas Lottery Commission under Chapter
466, Government Code, as amended by this Act, or Chapter 2001,
Occupations Code, as amended by this Act, on or after the effective
date of this Act. A license issued by the Texas Lottery Commission
under either of those laws before the effective date of this Act is
governed by the applicable licensing requirements in effect when
the license was last issued or renewed until the license expires or
is renewed as provided by Chapter 466, Government Code, as amended
by this Act, or Chapter 2001, Occupations Code, as amended by this
Act.
SECTION 47. The Texas Lottery Commission shall, to the
extent practicable and as authorized by law, make every effort to
implement the findings and recommendations of the Legislative
Committee to Review the Texas Lottery and Texas Lottery Commission.
SECTION 48. This Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2197 was passed by the House on April
24, 2013, by the following vote: Yeas 88, Nays 54, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2197 on May 23, 2013, by the following vote: Yeas 87, Nays 58,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2197 was passed by the Senate, with
amendments, on May 17, 2013, by the following vote: Yeas 29, Nays
2.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor