85R24938 E     By: Lucio III H.B. No. 3611     Substitute the following for H.B. No. 3611:     By:  Kuempel C.S.H.B. No. 3611       A BILL TO BE ENTITLED   AN ACT   relating to the termination of the entitlement of the state, a   county, and certain municipalities to a share of a bingo prize fee   collected in counties where certain illegal gambling occurs to the   detriment of charitable bingo.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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 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, will be   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 no 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 shall 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 of receipt   by the commission of 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, and any political subdivision that receives   such 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 no 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, will be 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 2.  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 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 3.  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 4.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.