Bill Text: TX HB2578 | 2017-2018 | 85th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the elimination of certain fees for licensure and the disposition of certain fees collected by the Texas Lottery Commission under the Bingo Enabling Act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2017-06-15 - Effective on 9/1/17 [HB2578 Detail]
Download: Texas-2017-HB2578-Comm_Sub.html
Bill Title: Relating to the elimination of certain fees for licensure and the disposition of certain fees collected by the Texas Lottery Commission under the Bingo Enabling Act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2017-06-15 - Effective on 9/1/17 [HB2578 Detail]
Download: Texas-2017-HB2578-Comm_Sub.html
85R22110 GCB-D | |||
By: Thompson of Harris | H.B. No. 2578 | ||
Substitute the following for H.B. No. 2578: | |||
By: Guillen | C.S.H.B. No. 2578 |
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relating to the elimination of certain fees for licensure and the | ||
disposition of certain fees collected by the Texas Lottery | ||
Commission under the Bingo Enabling Act. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter A, Chapter 2001, Occupations Code, is | ||
amended by adding Section 2001.003 to read as follows: | ||
Sec. 2001.003. REGULATORY FUNDING FROM BINGO PRIZE FEES. | ||
It is the intent of the legislature that the funding necessary for | ||
the administration of this chapter by the commission be collected | ||
by the commission from commercial lessor, manufacturer, and | ||
distributor license fees and money paid to the commission by bingo | ||
players as bingo prize fees. | ||
SECTION 2. Section 2001.103(a), Occupations Code, is | ||
amended to read as follows: | ||
(a) An authorized organization may receive a temporary | ||
license to conduct bingo by filing with the commission an | ||
application, on a form prescribed by the commission[ |
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SECTION 3. Section 2001.105(a), Occupations Code, is | ||
amended to read as follows: | ||
(a) The commission shall issue or renew a license to conduct | ||
bingo [ |
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if the commission determines that: | ||
(1) the member or members of the applicant designated | ||
in the application to conduct bingo are active members of the | ||
applicant; | ||
(2) the bingo is to be conducted in accordance with | ||
this chapter; | ||
(3) the proceeds of the bingo are to be disposed in | ||
accordance with this chapter; | ||
(4) the applicant has made and can demonstrate | ||
significant progress toward the accomplishment of the purposes of | ||
the organization during the 12 months preceding the date of | ||
application for a license or license renewal; | ||
(5) all persons who will conduct, promote, or | ||
administer the proposed bingo are active members of the applicant | ||
organization and all other persons who will assist in conducting, | ||
promoting, or administering the proposed bingo games are persons | ||
authorized to do so by Section 2001.411; and | ||
(6) no person under whose name bingo will be conducted | ||
and no person working at the proposed bingo has been convicted of a | ||
gambling offense or criminal fraud. | ||
SECTION 4. Section 2001.154, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 2001.154. INELIGIBLE PERSONS. (a) The commission may | ||
not issue a commercial lessor license to or renew a commercial | ||
lessor license of: | ||
(1) a person convicted of criminal fraud or a gambling | ||
or gambling-related offense; | ||
(2) a public officer who receives any consideration, | ||
direct or indirect, as owner or lessor of premises offered for | ||
conducting bingo; | ||
(3) [ |
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(4) [ |
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Subdivision (1), (2), or (3)[ |
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related in the first degree by consanguinity or affinity, as | ||
determined under Chapter 573, Government Code, to one of those | ||
persons has greater than a 10 percent proprietary, equitable, or | ||
credit interest or in which one of those persons is active or | ||
employed; | ||
(5) [ |
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entity; | ||
(6) [ |
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state; | ||
(7) [ |
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controlled by: | ||
(A) a foreign corporation; or | ||
(B) an individual who is not a resident of this | ||
state; or | ||
(8) [ |
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(A) whose shares are publicly traded; or | ||
(B) owned or controlled by a corporation whose | ||
shares are publicly traded. | ||
(b) Subsection (a)(4) [ |
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authorized organization or other person that is not organized for | ||
pecuniary profit and no part of the net earnings of which inure to | ||
the benefit of an individual, member, or shareholder from being | ||
licensed as a commercial lessor solely because a public officer or a | ||
person married or related in the first degree by consanguinity or | ||
affinity to a public officer is a member of, active in, or employed | ||
by the authorized organization or other person. | ||
SECTION 5. Section 2001.158, Occupations Code, is amended | ||
by adding Subsection (e) to read as follows: | ||
(e) The commission shall deposit a license fee paid under | ||
this section to the credit of the bingo administration account | ||
established under Section 2001.521. | ||
SECTION 6. Section 2001.205, Occupations Code, is amended | ||
by adding Subsection (c) to read as follows: | ||
(c) The commission shall deposit a license fee and any other | ||
fee paid under this section to the credit of the bingo | ||
administration account established under Section 2001.521. | ||
SECTION 7. Section 2001.209, Occupations Code, is amended | ||
by adding Subsection (c) to read as follows: | ||
(c) The commission shall deposit a license fee and any other | ||
fee paid under this section to the credit of the bingo | ||
administration account established under Section 2001.521. | ||
SECTION 8. Section 2001.438(f), Occupations Code, is | ||
amended to read as follows: | ||
(f) Each licensed authorized organization that is a member | ||
of the unit shall be jointly and severally liable for: | ||
(1) compliance with the requirements of this | ||
subchapter and the rules of the commission relating to the filing of | ||
required reports; | ||
(2) the maintenance of bingo inventory and financial | ||
records; and | ||
(3) the payment of [ |
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for a violation of this subchapter or commission rules related to | ||
the operations of the unit. | ||
SECTION 9. Section 2001.458(a), Occupations Code, is | ||
amended to read as follows: | ||
(a) An item of expense may not be incurred or paid in | ||
connection with the conduct of bingo except an expense that is | ||
reasonable or necessary to conduct bingo, including an expense for: | ||
(1) advertising, including the cost of printing bingo | ||
gift certificates; | ||
(2) security; | ||
(3) repairs to premises and equipment; | ||
(4) bingo supplies and equipment; | ||
(5) prizes; | ||
(6) stated rental or mortgage and insurance expenses; | ||
(7) bookkeeping, legal, or accounting services | ||
related to bingo; | ||
(8) fees for bingo chairpersons, operators, managers, | ||
salespersons, callers, cashiers, ushers, janitorial services, and | ||
utility supplies and services; | ||
(9) health insurance or health insurance benefits for | ||
bingo chairpersons, operators, managers, salespersons, callers, | ||
cashiers, and ushers, as provided by Subsection (b); | ||
(10) [ |
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required under Section 2001.107; and | ||
(11) [ |
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electronic funds transfer fees. | ||
SECTION 10. Section 2001.459(a), Occupations Code, is | ||
amended to read as follows: | ||
(a) The following items of expense incurred or paid in | ||
connection with the conduct of bingo must be paid from an | ||
organization's bingo account: | ||
(1) advertising, including the cost of printing bingo | ||
gift certificates; | ||
(2) security during a bingo occasion; | ||
(3) the purchase or repair of bingo supplies and | ||
equipment; | ||
(4) prizes, other than authorized cash prizes; | ||
(5) stated rental expenses; | ||
(6) bookkeeping, legal, or accounting services; | ||
(7) fees for callers, cashiers, and ushers; and | ||
(8) janitorial services[ |
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SECTION 11. Section 2001.503, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 2001.503. LOCAL SHARE OF PRIZE FEE. (a) Except as | ||
provided by Subsection (c), a county that imposed a gross receipts | ||
tax on the conduct of bingo as of January 1, 1993, is entitled to, | ||
subject to Section 2001.507(i), 50 percent of the fee collected | ||
under Section 2001.502 on a prize awarded at a game conducted in the | ||
county. | ||
(b) Except as provided by Subsection (c), a municipality | ||
that imposed a gross receipts tax on the conduct of bingo as of | ||
January 1, 1993, is entitled to, subject to Section 2001.507(i), 50 | ||
percent of the fee collected under Section 2001.502 on a prize | ||
awarded at a game conducted in the municipality. | ||
(c) If a county and municipality are both entitled to a | ||
share of the fee imposed by Section 2001.502: | ||
(1) the county is entitled to, subject to Section | ||
2001.507(i), 25 percent of the fee on a prize awarded at a game | ||
conducted in the county; and | ||
(2) the municipality is entitled to, subject to | ||
Section 2001.507(i), 25 percent of the fee on a prize awarded at a | ||
game conducted in the municipality. | ||
SECTION 12. Section 2001.507, Occupations Code, is amended | ||
by amending Subsections (a), (c), and (h) and adding Subsection (i) | ||
to read as follows: | ||
(a) The commission shall deposit the revenue collected from | ||
the fee on prizes imposed by Section 2001.502 to the credit of the | ||
bingo administration account established under Section 2001.521 [ |
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(c) At the end of each state fiscal year, the [ |
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commission shall send [ |
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entitled to a share of the fee on prizes the county's or | ||
municipality's share, as provided by Section 2001.503 and | ||
Subsection (i). | ||
(h) Interest earned on all fees on prizes collected by the | ||
commission under this chapter before distribution to a local | ||
jurisdiction, including interest earned from the suspense accounts | ||
retained under this section, shall be credited to the bingo | ||
administration account established under Section 2001.521 [ |
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(i) The commission shall reduce the amount of each local | ||
share of a fee to each county or municipality entitled to a share of | ||
the fee under Section 2001.503 on a pro rata basis as necessary to | ||
retain the amount necessary for the administration of bingo under | ||
this chapter for the state fiscal year less the amount estimated by | ||
the commission as license fees expected to be deposited in the bingo | ||
administration account established under Section 2001.521 for that | ||
year. | ||
SECTION 13. Chapter 2001, Occupations Code, is amended by | ||
adding Subchapter K-1 to read as follows: | ||
SUBCHAPTER K-1. BINGO ADMINISTRATION ACCOUNT | ||
Sec. 2001.521. BINGO ADMINISTRATION ACCOUNT. (a) The | ||
bingo administration account is a special fund in the treasury | ||
outside the general revenue fund. | ||
(b) The account consists of: | ||
(1) money paid to the commission as a commercial | ||
lessor license fee and deposited in the account under Section | ||
2001.158; | ||
(2) money paid to the commission as a manufacturer's | ||
license fee or other fee and deposited in the account under Section | ||
2001.205; | ||
(3) money paid to the commission as a distributor's | ||
license fee or other fee and deposited in the account under Section | ||
2001.209; | ||
(4) any other money paid to the commission under this | ||
chapter and any money appropriated by the legislature to the | ||
commission for the administration of bingo under this chapter and | ||
transferred to the account; | ||
(5) gifts, grants, and donations received by the | ||
commission for the purpose of the administration of bingo under | ||
this chapter; and | ||
(6) interest earned on money in the account. | ||
Sec. 2001.522. USE OF MONEY IN ACCOUNT. Money required to | ||
be deposited in the state treasury to the credit of the bingo | ||
administration account may be used by the commission only to | ||
support the commission's administration of bingo under this chapter | ||
and to pay local shares of prize fees under Section 2001.507. | ||
Sec. 2001.523. APPLICABILITY OF OTHER LAW. Subchapter D, | ||
Chapter 316, Government Code, and Section 403.095, Government Code, | ||
do not apply to the account created under Section 2001.521. | ||
SECTION 14. Section 404.073(c), Government Code, is amended | ||
to read as follows: | ||
(c) Interest that has been and that will be accrued or | ||
earned from deposits made under a law to which this subsection | ||
applies is state funds not subject to allocation or distribution to | ||
taxing units, cities, or transportation authorities under that law. | ||
This subsection applies to: | ||
(1) Section 205.02, Alcoholic Beverage Code; | ||
(2) Section 2001.507, Occupations Code; | ||
(2-a) Section 2001.521, Occupations Code; | ||
(3) Section 403.105(d) of this code; | ||
(4) Sections 321.501 and 321.504, Tax Code; | ||
(5) Sections 322.301 and 322.304, Tax Code; and | ||
(6) Sections 323.501 and 323.504, Tax Code. | ||
SECTION 15. Sections 2001.104, 2001.313(b-2), 2001.437(e), | ||
and 2001.507(d), Occupations Code, are repealed. | ||
SECTION 16. (a) The changes in law made by this Act in | ||
amending Sections 2001.158, 2001.205, 2001.209, 2001.503, and | ||
2001.507, Occupations Code, and in adding Subchapter K-1, Chapter | ||
2001, Occupations Code, apply beginning with the state fiscal year | ||
beginning September 1, 2019. | ||
(b) The changes in law made by this Act to Sections | ||
2001.103, 2001.105, and 2001.154, Occupations Code, apply to the | ||
issuance of a license under Chapter 2001, Occupations Code, that | ||
occurs on or after the effective date of this Act. The issuance of a | ||
license that occurs before the effective date of this Act is | ||
governed by the law in effect on the date the license is issued, and | ||
the former law is continued in effect for that purpose. | ||
SECTION 17. Not later than January 1, 2018, the Texas | ||
Lottery Commission shall return to each license holder who in the | ||
year preceding the effective date of this Act paid a license fee | ||
under Section 2001.104 or 2001.437, Occupations Code, as those | ||
sections existed before the effective date of this Act, any portion | ||
of the fee attributable to the license holder's period of licensure | ||
occurring on or after the effective date of this Act. | ||
SECTION 18. This Act takes effect September 1, 2017. |