Bill Text: TX SB643 | 2023-2024 | 88th Legislature | Enrolled


Bill Title: Relating to the conduct of charitable bingo.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2023-06-18 - Effective on 9/1/23 [SB643 Detail]

Download: Texas-2023-SB643-Enrolled.html
 
 
  S.B. No. 643
 
 
 
 
AN ACT
  relating to the conduct of charitable bingo.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 2001.002(19) and (25-a), Occupations
  Code, are amended to read as follows:
               (19)  "Nonprofit organization" means an unincorporated
  association or a corporation that is incorporated or holds a
  certificate of authority under Chapter 22, Business Organizations
  Code [the Texas Non-Profit Corporation Act (Article 1396-1.01 et
  seq., Vernon's Texas Civil Statutes)]. The organization:
                     (A)  may not distribute any of its income to its
  members, officers, or governing body, other than as reasonable
  compensation for services; and
                     (B)  must have obtained tax exempt status under
  Section 501(c), Internal Revenue Code of 1986.
               (25-a)  "Regular license" means a license to conduct
  bingo [that is] issued by the commission under Subchapter C that is
  not a temporary license [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 2001.103, Occupations Code, is amended
  by amending Subsections (e) and (g) and adding Subsection (i) to
  read as follows:
         (e)  Notwithstanding any other provision of this subchapter
  [Subsection (c)], the commission shall issue to an authorized
  organization that holds a regular [an annual] license to conduct
  bingo 48 [may receive not more than 24 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 regular license was issued or
  renewed. Each unused temporary license issued to the license holder
  expires on the anniversary of the date the temporary license was
  issued.
         (g)  Before using [An organization that has been issued] a
  temporary license issued under Subsection (e), the license holder
  [(f)] shall notify the commission in the manner the commission
  prescribes of the specific date, [and] time, and location of the
  bingo occasion for which the temporary license will be used [before
  using the license]. The [If the commission receives the
  notification by noon of the day before the day the temporary license
  will be used, the] commission shall provide to the license holder
  verification of the commission's [verify] receipt of the
  notification [notice before the end of the business day on which the
  notice is received. If the commission does not receive the
  notification by noon of the day before the day the temporary license
  will be used, the commission shall verify receipt of the notice
  before noon of the business day that follows the day the commission
  received the notice]. The license holder shall maintain the
  verification in the records of the authorized organization.
         (i)  The notice requirements of Sections 2001.305(b) and (c)
  do not apply to a temporary license issued to the holder of a
  regular license.
         SECTION 3.  Sections 2001.105(a) and (c), Occupations Code,
  are amended to read as follows:
         (a)  The commission shall issue a temporary or regular
  license or renew a regular license to conduct bingo 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 24 [12] months preceding the date of
  application for a license or regular 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.
         (c)  A regular [Except as provided by Section 2001.104(d), a]
  license to conduct bingo issued under this subchapter expires on
  the second anniversary of the date of issuance unless the
  commission revokes or suspends the license before that date [is
  effective for one year].
         SECTION 4.  Sections 2001.305(b) and (c), Occupations Code,
  are amended to read as follows:
         (b)  Except as provided by Section 2001.103(i), immediately
  [Immediately] after issuing a license, the commission shall send a
  copy of the license to the appropriate governing body. The
  governing body shall file the copy of the license in a central file
  containing licenses issued under this chapter.
         (c)  Except as provided by Section 2001.103(i), not [Not]
  later than the 10th day after the date a license is issued, the
  commission shall give written notice of the issuance of the license
  to:
               (1)  the police department of the municipality in which
  bingo will be conducted, if bingo is to be conducted in a
  municipality; or
               (2)  the sheriff of the county in which bingo will be
  conducted, if bingo is to be conducted outside a municipality.
         SECTION 5.  Section 2001.315(a), Occupations Code, is
  amended to read as follows:
         (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.
         SECTION 6.  Section 2001.401, Occupations Code, is amended
  to read as follows:
         Sec. 2001.401.  RESTRICTIONS ON PREMISES PROVIDERS. A
  person may not, for direct or indirect consideration, lease or
  otherwise make a premises available for conducting bingo unless the
  person is:
               (1)  a licensed commercial lessor; or
               (2)  a person who leases or otherwise makes available
  premises to an organization that:
                     (A)  has been issued a temporary license; and
                     (B)  does not hold a regular license.
         SECTION 7.  Section 2001.413, Occupations Code, is amended
  to read as follows:
         Sec. 2001.413.  PAYMENT [ADMISSION CHARGE] REQUIRED. Except
  as provided by Section 2001.4155, a licensed authorized
  organization may not offer or provide to a person the opportunity to
  play bingo without payment [charge].
         SECTION 8.  Section 2001.419(a), Occupations Code, is
  amended to read as follows:
         (a)  A licensed authorized organization may not conduct more
  than three bingo occasions during a calendar week under a regular
  [an annual] license.
         SECTION 9.  Section 2001.420(b), Occupations Code, is
  amended to read as follows:
         (b)  A person may not offer or award on a single bingo
  occasion prizes with an aggregate value of more than $5,000
  [$2,500] for all bingo games other than:
               (1)  pull-tab bingo; or
               (2)  bingo games that award individual prizes of $50 or
  less.
         SECTION 10.  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 third [second] business
  day after the day of the bingo occasion on which the receipts were
  obtained.
         SECTION 11.  Section 2001.438, Occupations Code, is amended
  by amending Subsection (f) and adding Subsection (f-1) 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)  except as provided by Subsection (f-1), the
  payment of any penalties imposed for a violation of this subchapter
  or commission rules related to the operations of the unit.
         (f-1)  If a unit demonstrates that a violation of this
  subchapter or commission rules is wholly attributable to a specific
  licensed authorized organization member or members of the unit:
               (1)  a penalty for the violation may not be imposed on a
  unit member to which the violation is not attributable; and
               (2)  the penalty imposed on a unit member to which the
  violation is attributable may not be in an amount greater than the
  amount initially assessed against each unit member.
         SECTION 12.  Sections 2001.451(b), (g), and (i), Occupations
  Code, are amended to read as follows:
         (b)  Except as provided by Section 2001.502(a), 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 third business day after the day of the bingo occasion on which
  the receipts were obtained.
         (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 24-month [12-month] period that
  ends on the second [an] anniversary of the date the [two-year]
  license was issued.
         (i)  Prize fees [held in escrow for remittance to the
  commission] are not included in the calculation of operating
  capital under Subsection (h) if the prize fees are:
               (1)  held in escrow for remittance to:
                     (A)  the commission; or
                     (B)  a county or municipality; or
               (2)  retained by a licensed authorized organization.
         SECTION 13.  Sections 2001.502(b) and (c), Occupations Code,
  are amended to read as follows:
         (b)  Notwithstanding Subsection (a)(2), each quarter, a
  licensed authorized organization or unit that collects a prize fee
  under Subsection (a) for a bingo game conducted in a county or
  municipality that was entitled to receive a portion of a bingo prize
  fee as of January 1, 2019, shall remit 50 percent of the amount
  collected as the prize fee to the commission and shall remit or
  deposit the remainder of the amount collected as the prize fee as
  follows:
               (1)  if the county [or municipality] in which the bingo
  game is conducted voted before November 1, 2019, to impose the prize
  fee and[, remit 50 percent of the amount collected as the prize fee
  to:
                     [(A)  the county that voted to impose the fee by
  that date, provided] the location at which the bingo game is
  conducted:
                     (A)  is not within the boundaries of a
  municipality, remit 50 percent of the amount collected as the prize
  fee to the county [that voted to impose the prize fee by that date];
  or
                     (B)  is within the boundaries of a [the]
  municipality that:
                           (i)  voted before November 1, 2019, to
  impose the prize fee, remit 50 percent of the amount collected as
  the prize fee in equal shares to the county and municipality [by
  that date, provided the county in which the bingo game is conducted
  did not vote to impose the fee by that date]; or
                           (ii)  did not vote before November 1, 2019,
  to impose the prize fee, remit 25 percent of the amount collected as
  the prize fee to the county and deposit the remaining amount in the
  manner described by Subdivision (3);
                     [(C)  in equal shares, the county and the
  municipality, provided each voted to impose the fee before that
  date; or]
               (2)  if the county in which the bingo game is conducted
  did not vote before November 1, 2019, to impose the prize fee and
  the location at which the bingo game is conducted is within the
  boundaries of a municipality that voted before November 1, 2019, to
  impose the prize fee:
                     (A)  remit 25 percent of the amount collected as
  the prize fee to the municipality; and
                     (B)  deposit the remaining amount in the manner
  described by Subdivision (3); and
               (3)  if neither the county or municipality in which the
  bingo game is conducted voted before November 1, 2019, to impose the
  prize fee, deposit the remainder of the amount collected as the
  prize fee in the general charitable fund of the organization or on a
  pro rata basis to the general funds of the organizations comprising
  the unit, as applicable, to be used for the charitable purposes of
  the organization or organizations.
         (c)  The governing body of a county or municipality that
  voted to impose a prize fee under Subsection (b) [(b)(1)] may at any
  time vote to discontinue the imposition of the fee. If a county or
  municipality votes on or after November 1, 2019, to discontinue the
  fee, the fees to which the county or municipality, as applicable,
  was entitled before the vote shall be collected by the licensed
  authorized organization or unit as defined by Section 2001.431 and
  deposited as provided by Subsection (b)(3) [(b)(2)].
         SECTION 14.  Section 2001.513(a), Occupations Code, is
  amended to read as follows:
         (a)  At any time within three years after a person is
  delinquent in the payment of an amount of the fee on prizes due to
  the commission, the commission may collect the amount under this
  section.
         SECTION 15.  Section 2001.514(a), Occupations Code, is
  amended to read as follows:
         (a)  To secure payment due to the commission of the fee on
  prizes imposed under this subchapter, each license holder shall
  furnish to the commission:
               (1)  a cash bond;
               (2)  a bond from a surety company chartered or
  authorized to do business in this state;
               (3)  certificates of deposit;
               (4)  certificates of savings;
               (5)  United States treasury bonds;
               (6)  subject to the approval of the commission, an
  assignment of negotiable stocks or bonds; or
               (7)  other security as the commission considers
  sufficient.
         SECTION 16.  Section 2001.515, Occupations Code, is amended
  to read as follows:
         Sec. 2001.515.  COMMISSION'S DUTIES. The commission shall
  perform all functions incident to the administration, collection,
  enforcement, and operation of the fee on prizes imposed under this
  subchapter for amounts due to the commission, including any
  necessary reconciliation of a prize fee held by the commission that
  is due to a county or municipality.
         SECTION 17.  The following provisions of the Occupations
  Code are repealed:
               (1)  Section 2001.103(f);
               (2)  Section 2001.420(a); and
               (3)  Section 2001.459(b).
         SECTION 18.  Not later than January 1, 2024, the Texas
  Lottery Commission shall adopt the rules necessary to implement the
  changes in law made by this Act to Chapter 2001, Occupations Code.
         SECTION 19.  (a)  Section 2001.103(g), Occupations Code, as
  amended by this Act, applies to a notification of the Texas Lottery
  Commission by a license holder on or after the effective date of
  this Act. A notification before the effective date of this Act is
  governed by the law in effect on the date of the notification, and
  the former law is continued in effect for that purpose.
         (b)  Section 2001.438, Occupations Code, as amended by this
  Act, applies only to a penalty imposed on or after the effective
  date of this Act.  A penalty imposed before the effective date of
  this Act is governed by the law in effect on the date the penalty was
  imposed, and the former law is continued in effect for that purpose.
         SECTION 20.  This Act takes effect September 1, 2023.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 643 passed the Senate on
  March 16, 2023, by the following vote: Yeas 29, Nays 1; and that
  the Senate concurred in House amendments on May 25, 2023, by the
  following vote: Yeas 29, Nays 2.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 643 passed the House, with
  amendments, on May 23, 2023, by the following vote: Yeas 96,
  Nays 41, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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