Bill Text: TX HB914 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the regulation of bingo games.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2019-06-14 - See remarks for effective date [HB914 Detail]
Download: Texas-2019-HB914-Introduced.html
Bill Title: Relating to the regulation of bingo games.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2019-06-14 - See remarks for effective date [HB914 Detail]
Download: Texas-2019-HB914-Introduced.html
86R1910 BEE-D | ||
By: Thompson of Harris | H.B. No. 914 |
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relating to the regulation of bingo games. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2001.002(18), Occupations Code, is | ||
amended to read as follows: | ||
(18) "Net proceeds" means: | ||
(A) in relation to the gross receipts from one or | ||
more bingo occasions, the amount remaining after deducting the | ||
reasonable sums necessarily and actually expended for expenses | ||
under Section 2001.458 and the prize tax [ |
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Section 2001.502; and | ||
(B) in relation to the gross rent or other | ||
consideration received by a licensed authorized organization for | ||
the use of its premises, fixtures, or equipment by another license | ||
holder, the amount remaining after deducting the reasonable sums | ||
necessarily and actually expended for any janitorial services and | ||
utility supplies directly attributable to the use of the premises, | ||
fixtures, or equipment. | ||
SECTION 2. Section 2001.003, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 2001.003. REGULATORY FUNDING FROM LICENSE FEES AND | ||
BINGO PRIZE TAXES [ |
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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 [ |
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SECTION 3. Section 2001.060(b), Occupations Code, is | ||
amended to read as follows: | ||
(b) For purposes of Subsection (a), "adjusted gross | ||
receipts" means the amount remaining after deducting prizes paid, | ||
excluding prize taxes [ |
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SECTION 4. Section 2001.103(d), Occupations Code, is | ||
amended to read as follows: | ||
(d) An organization operating under a temporary license is | ||
subject to: | ||
(1) the fees and any prize taxes authorized or imposed | ||
by this chapter; and | ||
(2) the other provisions of this chapter to the extent | ||
they can be made applicable. | ||
SECTION 5. Sections 2001.305(b) and (c), Occupations Code, | ||
are amended to read as follows: | ||
(b) Immediately after issuing [ |
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commission [ |
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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) Not later than the 10th day after the date a license is | ||
issued, the commission [ |
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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 6. The heading to Section 2001.312, Occupations | ||
Code, is amended to read as follows: | ||
Sec. 2001.312. FAILURE TO FILE [ |
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INFORMATION. | ||
SECTION 7. Section 2001.313(h), Occupations Code, is | ||
amended to read as follows: | ||
(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 30 [ |
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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. | ||
SECTION 8. Section 2001.355(b), Occupations Code, is | ||
amended 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 prize tax [ |
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Section 2001.502 to the commission as required by that section. | ||
SECTION 9. Section 2001.419, Occupations Code, is amended | ||
by amending Subsections (c), (d), and (e) and adding Subsections | ||
(c-1) and (f) to read as follows: | ||
(c) Except as provided by Subsection (c-1), no [ |
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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. | ||
(c-1) In addition to the bingo occasions authorized to be | ||
conducted at the same premises during one day under Subsection (c), | ||
on not more than three days of a calendar week, one or two | ||
additional bingo occasions may be held at the same premises at which | ||
bingo occasions are conducted under that subsection under the | ||
annual license of one or more licensed authorized organizations. | ||
(d) If more than one bingo occasion is conducted at the same | ||
premises on the same day: | ||
(1) the bingo occasions must be announced separately; | ||
(2) the licensed times may not overlap; and | ||
(3) notwithstanding Subsection (e), 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. | ||
(e) Bingo cards, pull-tab bingo tickets, and the use of | ||
card-minding devices [ |
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licensed premises at any time beginning one hour before the bingo | ||
occasion and ending at the conclusion of the bingo occasion | ||
[ |
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(f) If pull-tab bingo tickets are sold by one licensed | ||
authorized organization that conducts consecutive bingo occasions | ||
during one day, the organization may account for and report all of | ||
the pull-tab bingo ticket sales for the occasions as sales for the | ||
final occasion. | ||
SECTION 10. Section 2001.437(a), Occupations Code, is | ||
amended to read as follows: | ||
(a) If the unit accounting agreement of a unit states that a | ||
unit manager is responsible for compliance with commission rules | ||
and this chapter, the unit manager is responsible for: | ||
(1) the filing of one quarterly report for the unit on | ||
a form prescribed by the commission; and | ||
(2) the payment of fees and any taxes and the | ||
maintenance of the bingo inventory and financial records of the | ||
unit. | ||
SECTION 11. Section 2001.451, Occupations Code, is amended | ||
by amending Subsections (b), (g), and (i) and adding Subsection | ||
(g-1) to read as follows: | ||
(b) Except as provided by Section 2001.502(a), a [ |
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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 [ |
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on which the receipts were obtained. | ||
(g) Except as provided by Subsection (g-1), the [ |
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operations of a licensed authorized organization must[ |
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result in net proceeds for the organization's bingo operations over | ||
each 24-month [ |
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issued to the organization. | ||
(g-1) The bingo operations of a unit as defined by Section | ||
2001.431 must result in net proceeds for the unit's bingo | ||
operations over each 24-month period beginning on the first | ||
anniversary of the date the unit is formed. | ||
(i) Prize taxes [ |
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commission are not included in the calculation of operating capital | ||
under Subsection (h). | ||
SECTION 12. The heading to Subchapter K, Chapter 2001, | ||
Occupations Code, is amended to read as follows: | ||
SUBCHAPTER K. PRIZE TAX [ |
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SECTION 13. Section 2001.502, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 2001.502. PRIZE TAX [ |
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organization or unit as defined by Section 2001.431 shall[ |
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[ |
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of more than $5 a tax [ |
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amount [ |
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authorized organization or unit shall remit 50 percent of the | ||
amount collected as the prize tax to the commission and: | ||
(1) if a county or municipality in which the bingo game | ||
is conducted voted before November 1, 2019, to impose the prize tax, | ||
50[ |
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[ |
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(A) the county in which the bingo game is | ||
conducted, if the county voted to impose the tax by that date and | ||
the location at which bingo is conducted is not within the | ||
boundaries of a municipality; | ||
(B) the municipality in which the bingo game is | ||
conducted, if the municipality voted to impose the tax by that date | ||
and the county in which the bingo game is conducted did not vote to | ||
impose the tax by that date; or | ||
(C) in equal shares, the county and the | ||
municipality in which the bingo game is conducted, if the county and | ||
municipality each voted to impose the tax before that date; or | ||
(2) if a county or municipality is not entitled to a | ||
percentage of the amount of taxes collected under Subdivision (1), | ||
deposit 50 percent of the amount collected as the prize tax in the | ||
general charitable fund of the organization or unit to be used for | ||
the charitable purposes of the organization or organizations [ |
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(b) The governing body of a county or municipality that | ||
voted to impose a prize tax under Subsection (a) may at any time | ||
vote to discontinue the imposition of the tax. If a county or | ||
municipality votes after November 1, 2019, to discontinue the tax, | ||
the taxes shall be collected by the licensed authorized | ||
organization or unit as defined by Section 2001.431 and deposited | ||
as provided by Subsection (a)(2). | ||
(c) A licensed authorized organization or unit as defined by | ||
Section 2001.431 that receives notice from the commission under | ||
Subchapter K-1 of the termination of an entitlement of this state | ||
and any county or municipality to a share of a prize tax shall | ||
continue to collect the prize tax. A prize tax collected under this | ||
subsection shall be deposited into the general fund of the licensed | ||
authorized organization or unit to be used for the charitable | ||
purposes of the organization or organizations. | ||
(d) A tax collected under Subsection (a) does not apply to: | ||
(1) a merchandise prize awarded as a prize for winning | ||
a bingo game, including a bingo card, a pull-tab bingo ticket, a | ||
bingo dauber, or other bingo merchandise; or | ||
(2) the use of a card-minding device awarded as a prize | ||
for winning a bingo game. | ||
SECTION 14. Section 2001.504, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 2001.504. PAYMENT AND REPORTING OF PRIZE TAX [ |
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(a) A prize tax [ |
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subchapter is due and is payable by the license holder or a person | ||
conducting bingo without a license to the commission and county or | ||
municipality, as applicable, quarterly on or before the 25th day of | ||
the month succeeding each calendar quarter. | ||
(b) The prize tax report [ |
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under oath on forms prescribed by the commission. | ||
(c) The commission shall adopt rules for the payment of the | ||
prize tax [ |
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(d) A license holder required to file a prize tax report [ |
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amount of the fee due to the commission. | ||
SECTION 15. The heading to Section 2001.507, Occupations | ||
Code, is amended to read as follows: | ||
Sec. 2001.507. COLLECTION AND DEPOSIT [ |
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PRIZE TAX [ |
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SECTION 16. Section 2001.507(a), Occupations Code, is | ||
amended to read as follows: | ||
(a) The commission shall deposit the revenue collected from | ||
the prize tax [ |
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credit of [ |
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SECTION 17. Section 2001.508, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 2001.508. PENALTIES FOR FAILURE TO PAY OR REPORT PRIZE | ||
TAX. (a) If a person fails to file a report of the prize tax [ |
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commission the prize tax [ |
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when the report or payment is due, the person forfeits five percent | ||
of the amount due as a penalty, and after the first 30 days, the | ||
person forfeits an additional five percent. | ||
(b) A delinquent payment of the prize tax [ |
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accrues interest at the rate provided by Section 111.060, Tax Code, | ||
beginning on the 60th day after the due date. | ||
SECTION 18. Section 2001.509, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 2001.509. RECOMPUTATION OF PRIZE TAX [ |
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commission is not satisfied with a report of the prize tax [ |
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be remitted under this chapter to the state by a person, the | ||
commission may compute and determine the amount required to be paid | ||
on the basis of: | ||
(1) the facts contained in the report of the prize tax | ||
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(2) any information possessed by the commission or | ||
that may come into the possession of the commission, without regard | ||
to the period covered by the information. | ||
SECTION 19. Sections 2001.510(a) and (c), Occupations Code, | ||
are amended to read as follows: | ||
(a) If a license holder fails to make a required report of | ||
the prize tax [ |
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a license, the commission shall make an estimate of the prizes | ||
awarded at a bingo occasion. The commission shall make the estimate | ||
for the period in respect to which the license holder or other | ||
person failed to make a report. | ||
(c) On the basis of the commission's estimate, the | ||
commission shall compute and determine the amount of the prize tax | ||
[ |
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that amount a penalty of 10 percent of the amount. | ||
SECTION 20. Sections 2001.511(a) and (c), Occupations Code, | ||
are amended to read as follows: | ||
(a) If the commission believes that the collection of the | ||
prize tax [ |
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determination will be jeopardized by delay, the commission shall | ||
make a determination of the prize tax [ |
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the prize tax [ |
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jeopardy on the determination. The determined amount is due and | ||
payable immediately. | ||
(c) A delinquency penalty of 10 percent of the prize tax | ||
[ |
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interest at the rate of 10 percent a year attaches to the amount of | ||
the prize tax [ |
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SECTION 21. Section 2001.512, Occupations Code, is amended | ||
to read as follows: | ||
Sec. 2001.512. APPLICATION OF TAX LAWS. (a) Subtitle B, | ||
Title 2, Tax Code, applies to the administration, collection, and | ||
enforcement of the prize tax [ |
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2001.502 except as modified by this chapter. | ||
(b) In applying the provisions of Subtitle B, Title 2, Tax | ||
Code, to the prize tax [ |
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2001.502 only, the prize tax [ |
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under that subtitle are assigned to the commission. | ||
SECTION 22. 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 prize tax [ |
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SECTION 23. Sections 2001.514(a), (c), and (d), Occupations | ||
Code, are amended to read as follows: | ||
(a) To secure payment of the prize tax [ |
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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. | ||
(c) On a license holder's failure to pay the prize tax [ |
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the license holder and any surety of the delinquency by jeopardy or | ||
deficiency determination. If payment is not made when due, the | ||
commission may forfeit all or part of the bond or security. | ||
(d) If the license holder ceases to conduct bingo and | ||
relinquishes the license holder's license, the commission shall | ||
authorize the release of all bonds and other security on a | ||
determination that no amounts of the prize tax [ |
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remain due and payable under this subchapter. | ||
SECTION 24. 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 prize tax [ |
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under this subchapter. | ||
SECTION 25. Chapter 2001, Occupations Code, is amended by | ||
adding Subchapter K-1 to read as follows: | ||
SUBCHAPTER K-1. TERMINATION OF ENTITLEMENT TO PRIZE TAX SHARE | ||
Sec. 2001.521. COMMISSION DETERMINATION; TERMINATION. (a) | ||
At the request of any person or on its own motion, the commission | ||
may determine for a county in which a licensed authorized | ||
organization conducts bingo that: | ||
(1) a place of business in the county offers patrons of | ||
the business the opportunity to engage in gambling in violation of | ||
Chapter 47, Penal Code; and | ||
(2) the conduct described by Subdivision (1) is | ||
detrimental to the conduct of bingo by one or more licensed | ||
authorized organizations in the county. | ||
(b) Subject to Subsection (c), on a determination described | ||
by Subsection (a), the entitlement of this state, a county, or a | ||
municipality to a share of a prize tax collected under Section | ||
2001.502 terminates. | ||
(c) Subject to this subchapter, the termination described | ||
by Subsection (b) is effective on the 30th day after the date the | ||
commission issues a determination under Subsection (a). | ||
Sec. 2001.522. NOTICE BY COMMISSION. The commission shall | ||
provide notice of a determination and termination under Section | ||
2001.521, including the effective date of the termination, to: | ||
(1) the comptroller; | ||
(2) the county; | ||
(3) each licensed authorized organization and unit as | ||
defined by Section 2001.431 that conducts bingo in the county; and | ||
(4) each municipality in the county that is entitled | ||
to a local share of a prize tax. | ||
Sec. 2001.523. CHALLENGE BY COUNTY OR MUNICIPALITY. (a) A | ||
county or municipality entitled to notice under Section 2001.522 | ||
may challenge a determination under Section 2001.521 by submitting | ||
to the commission evidence that: | ||
(1) the conduct described by Section 2001.521(a)(1) is | ||
not occurring in the county; or | ||
(2) the conduct described by Section 2001.521(a)(1) is | ||
not detrimental to the conduct of bingo by one or more licensed | ||
authorized organizations. | ||
(b) A county or municipality must submit the evidence to the | ||
commission not later than the 30th day after the date the county or | ||
municipality receives notice under Section 2001.522. | ||
Sec. 2001.524. COMMISSION RESPONSE TO CHALLENGE BY COUNTY | ||
OR MUNICIPALITY. (a) Not later than the 30th day after the date the | ||
commission receives evidence submitted under Section 2001.523, the | ||
commission shall affirm or reverse the determination under Section | ||
2001.521. | ||
(b) If the commission reverses the determination under | ||
Section 2001.521, the commission shall provide notice to an entity | ||
entitled to notice under Section 2001.522 that: | ||
(1) the determination is reversed; and | ||
(2) the entitlement of this state and any county or | ||
municipality to a share of a prize tax is not terminated as | ||
described by Section 2001.521(b). | ||
(c) If the determination under Section 2001.521 is | ||
affirmed, the commission shall provide notice to any county or | ||
municipality that submitted evidence under Section 2001.523 that: | ||
(1) the determination is affirmed; and | ||
(2) the county or municipality may request a hearing | ||
on the matter before the State Office of Administrative Hearings. | ||
Sec. 2001.525. HEARING. (a) A county or municipality that | ||
receives notice under Section 2001.524(c) may request an | ||
administrative hearing. A request for a hearing under this section | ||
must be received by the commission not later than the 30th day after | ||
the date the county or municipality receives notice under Section | ||
2001.524(c). | ||
(b) The hearings examiner shall make findings of fact and | ||
conclusions of law and promptly issue to the commission a proposal | ||
for decision as to the affirmation or reversal of a determination | ||
under Section 2001.521. | ||
(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. | ||
Sec. 2001.526. FINAL DECISION BY COMMISSION. (a) Based on | ||
the findings of fact and conclusions of law and the recommendations | ||
of the hearings examiner, the commission by order may: | ||
(1) reverse the determination under Section 2001.521; | ||
or | ||
(2) affirm the determination under Section 2001.521. | ||
(b) If the commission reverses the determination under | ||
Section 2001.521, the commission shall provide notice to an entity | ||
entitled to notice under Section 2001.522 that: | ||
(1) the determination is reversed; and | ||
(2) the entitlement of this state and any county or | ||
municipality to a share of a prize tax is not terminated as | ||
described by Section 2001.521(b). | ||
(c) If the commission affirms the determination under | ||
Section 2001.521, the commission shall provide notice to an entity | ||
entitled to notice under Section 2001.522 that: | ||
(1) the determination is affirmed; and | ||
(2) the entitlement of this state and any county or | ||
municipality to a share of a prize tax is terminated as described by | ||
Section 2001.521(b) effective: | ||
(A) on the 30th day after the date of the notice | ||
under this subsection; or | ||
(B) on a later date set by the commission. | ||
Sec. 2001.527. RULES; DELEGATION OF DETERMINATION | ||
AUTHORITY. (a) The commission shall adopt the rules necessary to | ||
implement this subchapter. | ||
(b) The commission by rule may delegate to the director of | ||
bingo operations the authority to make a determination under | ||
Section 2001.521(a). | ||
SECTION 26. 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) [ |
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(3) [ |
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(4) [ |
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(5) [ |
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SECTION 27. Section 112.058(f), Tax Code, is amended to | ||
read as follows: | ||
(f) All protest payments of taxes, including prize taxes, | ||
[ |
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Chapter 2001, Occupations Code, that become due on or after | ||
September 1, 1993, are governed by Subchapter J, Chapter 403, | ||
Government Code. | ||
SECTION 28. The following sections of the Occupations Code | ||
are repealed: | ||
(1) Section 2001.103(a-1); | ||
(2) Section 2001.104; | ||
(3) Section 2001.313(b-3); | ||
(4) Section 2001.437(i); | ||
(5) Section 2001.503; and | ||
(6) Sections 2001.507(b), (c), (d), (e), (f), (g), | ||
(h), and (i). | ||
SECTION 29. (a) A county or municipality that was entitled | ||
to receive a portion of a bingo prize fee before the effective date | ||
of this Act may only continue to receive a portion of the prize tax | ||
collected under Section 2001.502, Occupations Code, as amended by | ||
this Act, after the effective date of this Act if the governing body | ||
of the county or municipality: | ||
(1) by majority vote of the members of the governing | ||
body approves the continued receipt of funds under that section and | ||
notifies the Texas Lottery Commission of that decision not later | ||
than November 1, 2021; and | ||
(2) notifies each licensed authorized organization | ||
within the county's or municipality's jurisdiction, as applicable, | ||
of the continued imposition of the tax. | ||
(b) Not later than October 1, 2021, the Texas Lottery | ||
Commission shall notify the governing body of a county or | ||
municipality that was entitled to receive a portion of the prize fee | ||
collected under Section 2001.502, Occupations Code, as that section | ||
existed immediately before the effective date of this Act, of the | ||
requirements for continued receipt of the prize tax under that | ||
section as provided in Subsection (a) of this section. | ||
SECTION 30. Section 2001.305, Occupations Code, as amended | ||
by this Act, applies only to an authorized organization license or a | ||
commercial lessor license that is issued under Chapter 2001, | ||
Occupations Code, on or after the effective date of this Act. An | ||
authorized organization license or a commercial lessor license | ||
issued before the effective date of this Act 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 31. The changes in law made by Subchapter K-1, | ||
Chapter 2001, Occupations Code, as added by this Act, apply only to | ||
a tax on a bingo prize that is awarded on or after the effective date | ||
of this Act. A tax on a bingo prize that is awarded before the | ||
effective date of this Act is governed by the law in effect on the | ||
date the prize is awarded, and the former law is continued in effect | ||
for that purpose. | ||
SECTION 32. (a) Except as otherwise provided by Subsection | ||
(b) of this section, this Act takes effect September 1, 2019. | ||
(b) Section 2001.502(c) and Subchapter K-1, Chapter 2001, | ||
Occupations Code, as added by this Act, take effect September 1, | ||
2020. |