By: Thompson of Harris (Senate Sponsor - Zaffirini) H.B. No. 2578          (In the Senate - Received from the House May 5, 2017;   May 12, 2017, read first time and referred to Committee on State   Affairs; May 18, 2017, reported favorably by the following vote:     Yeas 9, Nays 0; May 18, 2017, sent to printer.)Click here to see the committee vote    A BILL TO BE ENTITLED   AN ACT     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 LICENSE FEES AND   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[, accompanied   by a $25 license fee].          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 [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   gambling offense or criminal fraud.          SECTION 4.  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 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)  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 5.  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 [fees and] any penalties imposed   for a violation of this subchapter or commission rules related to   the operations of the unit.          SECTION 6.  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)  [license fees;                [(11)]  attending a bingo seminar or convention   required under Section 2001.107; and                (11) [(12)]  debit card transaction fees and   electronic funds transfer fees.          SECTION 7.  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[; and                [(9)  license fees].          SECTION 8.  Section 2001.502, Occupations Code, is amended   to read as follows:          Sec. 2001.502.  PRIZE FEE. 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.          SECTION 9.  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 10.  Section 2001.507, Occupations Code, is amended   by amending Subsection (c) and adding Subsection (i) to read as   follows:          (c)  At the end of each state fiscal year, the [The]   commission shall send [quarterly] to a county or municipality   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).          (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 a special   account in the general revenue fund for that year.  The amount the   commission retains under this subsection:                (1)  must, in each state fiscal year, be the amount   necessary to ensure that the ratio of the amount retained under this   subsection to the amount paid to the commission as license fees   during that fiscal year is the same as the ratio of the amount   appropriated to the commission to enforce bingo laws under Chapter   1281 (H.B. 1), Acts of the 84th Legislature, Regular Session, 2015,   to the amount paid to the commission as license fees during the   state fiscal year ending August 31, 2017; and                (2)  is considered miscellaneous revenue for purposes   of appropriations made to the commission under the General   Appropriations Act for the administration of this chapter.          SECTION 11.  Sections 2001.104, 2001.313(b-2), and   2001.437(e), Occupations Code, are repealed.          SECTION 12.  (a) The changes in law made by this Act in   amending Sections 2001.503 and 2001.507, Occupations Code, apply   beginning with the state fiscal year beginning September 1, 2017.          (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 13.  (a)  As soon as practicable after the effective   date of this Act but not later than January 1, 2018, the Texas   Lottery Commission shall adopt rules necessary to implement this   Act.          (b)  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 14.  This Act takes effect September 1, 2017.     * * * * *