By: Thompson of Harris H.B. No. 2577       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of bingo games; authorizing fee refunds.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2001.057(a), Occupations Code, is   amended to read as follows:          (a)  The commission shall [may] appoint a bingo advisory   committee consisting of nine members. The commission shall appoint   members representing a balance of interests including   representatives of:                (1)  the public;                (2)  charities that operate bingo games; and                (3)  commercial and charity lessors that participate in   the bingo industry.          SECTION 2.  Subchapter B, Chapter 2001, Occupations Code, is   amended by adding Section 2001.062 to read as follows:          Sec. 2001.062.  COMMISSION DETERMINATION OF ILLEGAL   GAMBLING IN COUNTY. (a) At the request of any person or on its own   motion, the commission may determine that:                (1)  a place of business located anywhere in a county in   which a licensed authorized organization conducts bingo offers   patrons of the business the opportunity to engage in gambling in   violation of a provision of Chapter 47, Penal Code; and                (2)  the conduct described by Subdivision (1) is   detrimental to the conduct of charitable bingo by one or more   licensed authorized organizations.          (b)  If the commission makes the determination authorized   under Subsection (a), the commission shall notify the comptroller,   the county, each licensed authorized organization and unit as   defined by Section 2001.431 that conducts bingo in the county, and   each municipality located in the county that is entitled to a local   share of a prize fee that the state's authority to collect a prize   fee under Section 2001.502, and the entitlement to a local share   under Section 2001.503, is terminated for all charitable bingo   conducted in that county on the 30th day after the date of the   notice.          (c)  A political subdivision that receives notification by   the commission under Subsection (b) may provide evidence that the   commission's determination under Subsection (a) was made in error   because the activity described by Subsection (a)(1) is not   occurring in that county or is not occurring to the detriment of   charitable bingo as provided by Subsection (a)(2). The commission   must receive the evidence from the political subdivision not later   than the 30th day after the date the political subdivision receives   the notice from the commission under Subsection (b). If, based on   evidence provided by a political subdivision, the commission agrees   that the determination was made in error, the commission may not   terminate the prize fee and shall notify the comptroller, the   county, each licensed authorized organization and unit that   conducts bingo in the county, and each municipality located in the   county that is entitled to a local share of a prize fee of the   commission's decision not to terminate the collection of the prize   fee.          (d)  The commission shall determine whether to accept or   reject the evidence presented by a political subdivision under   Subsection (c) not later than the 30th day after the date the   commission receives the evidence. If, after considering the   evidence submitted by a political subdivision under Subsection (c),   the commission determines to terminate the collection of the prize   fee, the commission shall notify each political subdivision that   submitted evidence of the termination.  Any political subdivision   that receives the notice may request an administrative hearing on   the matter before the State Office of Administrative Hearings. A   request for an administrative hearing under this subsection must be   received by the commission not later than the 30th day after the   date a political subdivision receives notification under this   subsection.          (e)  A determination by the commission under Subsection (a)   becomes final on the 30th day after the commission's determination   under that subsection unless the determination is contested as   provided by Subsections (c) and (d). On a final decision under   Subsection (d) by the administrative law judge upholding the   commission's determination to terminate the collection of the prize   fee under this section, the commission shall notify the   comptroller, the county, each licensed authorized organization and   unit that conducts bingo in the county, and each municipality   located in the county that is entitled to a local share of a prize   fee that the state's authority to collect a prize fee under Section   2001.502, and the entitlement to a local share under Section   2001.503, is terminated for all charitable bingo conducted in that   county on the 30th day after the date of the notice or on another   date set by the commission.          (f)  The commission shall adopt rules as necessary to   implement this section.  A rule adopted under this subsection may   delegate to the director of the charitable bingo operations   division the determination authorized by Subsection (a).          SECTION 3.  Section 2001.103, Occupations Code, is amended   by adding Subsection (a-1) to read as follows:          (a-1)  On request, the commission shall refund to an   authorized organization the $25 temporary license fee submitted   under Subsection (a) not later than the 30th day after the date the   commission receives the request for the refund, if:                (1)  the authorized organization does not use the   temporary license to conduct bingo before the first anniversary of   the date of the license's issuance; or                (2)  the authorized organization requests withdrawal   of the application before the temporary license is issued, except   the commission may retain an amount not to exceed 50 percent of the   license fee to defray any administrative cost incurred by the   commission in processing the application.          SECTION 4.  Section 2001.104, Occupations Code, is amended   by adding Subsection (f) to read as follows:          (f)  The commission shall refund the fee for an initial or   renewal license to conduct bingo if the applicant requests   withdrawal of the application before the license is issued or if the   commission denies the application, except the commission may retain   an amount not to exceed the lesser of 50 percent of the license fee   or $150 to defray any administrative cost incurred by the   commission in processing the application. The commission shall   issue the refund not later than the 30th day after the date the   commission receives the withdrawal request or denies the   application.          SECTION 5.  Section 2001.158, Occupations Code, is amended   by adding Subsection (e) to read as follows:          (e)  The commission shall refund the fee for an initial or   renewal commercial lessor license if the applicant requests   withdrawal of the application before the license is issued or if the   commission denies the application, except the commission may retain   an amount not to exceed the lesser of 50 percent of the license fee   or $150 to defray any administrative cost incurred by the   commission in processing the application. The commission shall   issue the refund not later than the 30th day after the date the   commission receives the withdrawal request or denies the   application.          SECTION 6.  Section 2001.205, Occupations Code, is amended   by adding Subsection (c) to read as follows:          (c)  The commission shall refund the fee for an initial or   renewal manufacturer's license if the applicant requests   withdrawal of the application before the license is issued or if the   commission denies the application, except the commission may retain   a reasonable amount set by the commission to defray any   administrative cost incurred by the commission in processing the   application. The commission shall issue the refund not later than   the 30th day after the date the commission receives the withdrawal   request or denies the application.          SECTION 7.  Section 2001.209, Occupations Code, is amended   by adding Subsection (c) to read as follows:          (c)  The commission shall refund the fee for an initial or   renewal distributor's license if the applicant requests withdrawal   of the application before the license is issued or if the commission   denies the application, except the commission may retain a   reasonable amount set by the commission to defray any   administrative cost incurred by the commission in processing the   application. The commission shall issue the refund not later than   the 30th day after the date the commission receives the withdrawal   request or denies the application.          SECTION 8.  Section 2001.306, Occupations Code, is amended   by adding Subsection (f) to read as follows:          (f)  The commission shall refund the fee for amending a   license issued under this chapter if the applicant requests   withdrawal of the amendment application before the amended license   is issued or if the commission denies the amendment application,   except the commission may retain an amount not to exceed 50 percent   of the amendment fee to defray any administrative cost incurred by   the commission in processing the amendment application. The   commission shall issue the refund not later than the 30th day after   the date the commission receives the withdrawal request or denies   the application.          SECTION 9.  Section 2001.313, Occupations Code, is amended   by adding Subsection (b-3) and amending Subsection (h) to read as   follows:          (b-3)  The commission shall refund the fee submitted under   Subsection (b-2) for an initial or renewal registration application   if the applicant requests withdrawal of the application before the   applicant is listed on the registry or if the commission denies the   registration and listing, except the commission may retain an   amount not to exceed 50 percent of the registration fee to defray   any administrative cost incurred by the commission in processing   the application. The commission shall issue the refund not later   than the 30th day after the date the commission receives the   withdrawal request or denies the application.          (h)  A licensed authorized organization may employ an   individual who is not on the registry established by this section as   an operator, manager, cashier, usher, caller, or salesperson on a   provisional basis if the individual is awaiting the results of a   background check by the commission:                (1)  for a period not to exceed 14 days, beginning on   the date the commission receives the application for the employee   to be placed on the registry, if the individual is a resident of   this state; or                (2)  for a period to be established by commission rule   if the individual is not a resident of this state.          SECTION 10.  Section 2001.419, Occupations Code, is amended   by adding Subsection (f) to read as follows:          (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 11.  Section 2001.437, Occupations Code, is amended   by adding Subsection (i) to read as follows:          (i)  The commission shall refund the fee for an initial or   renewal unit manager license if the applicant requests withdrawal   of the application before the license is issued or if the commission   denies the application, except the commission may retain an amount   not to exceed the lesser of 50 percent of the license fee or $150 to   defray any administrative cost incurred by the commission in   processing the application. The commission shall issue the refund   not later than the 30th day after the date the commission receives   the withdrawal request or denies the application.          SECTION 12.  Section 2001.502, Occupations Code, is amended   to read as follows:          Sec. 2001.502.  PRIZE FEE. (a) Except as provided by   Subsection (b), a [A] licensed authorized organization shall:                (1)  collect from a person who wins a bingo prize of   more than $5 a fee in the amount of five percent of the amount or   value of the prize; and                (2)  remit to the commission a fee in the amount of five   percent of the amount or value of all bingo prizes of more than $5    awarded.          (b)  A licensed authorized organization or unit that is   notified by the commission under Section 2001.062 that the state's   authority to collect a prize fee under this section is terminated as   provided by that section shall continue to collect the prize fee.     Each prize fee 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.          SECTION 13.  Section 2001.503, Occupations Code, is amended   by amending Subsections (a) and (b) and adding Subsection (d) to   read as follows:          (a)  Except as provided by Subsection (c) or (d), a county   that imposed a gross receipts tax on the conduct of bingo as of   January 1, 1993, is entitled to 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) or (d), a   municipality that imposed a gross receipts tax on the conduct of   bingo as of January 1, 1993, is entitled to 50 percent of the fee   collected under Section 2001.502 on a prize awarded at a game   conducted in the municipality.          (d)  A county or municipality to which this section applies   is not entitled to a local share of a prize fee after the   entitlement to the local share has been terminated by the   commission under Section 2001.062.                    SECTION 14.  (a)  Chapter 2001, Occupations Code, as amended   by this Act, applies only to an application and fee submitted under   that chapter on or after the effective date of this Act. An   application and fee submitted before the effective date of this Act   are governed by the law in effect on the date the application and   fee are submitted, and the former law is continued in effect for   that purpose.          (b)  Notwithstanding the effective date of this Act, the   change in law made to Section 2001.502, Occupations Code, applies   to the collection or remittance of a bingo prize fee for a bingo   prize awarded on or after October 1, 2017. The collection or   remittance of a bingo prize fee for a bingo prize awarded before   October 1, 2017, 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 15.  This Act takes effect September 1, 2017.