85R22110 GCB-D     By: Thompson of Harris H.B. No. 2578     Substitute the following for H.B. No. 2578:     By:  Guillen C.S.H.B. No. 2578       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 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, Occupations Code, is amended   to read as follows:          Sec. 2001.154.  INELIGIBLE PERSONS. (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;                (4) [(5)]  a person in which a person covered by   Subdivision (1), (2), or (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;                (5) [(6)]  a foreign corporation or other foreign legal   entity;                (6) [(7)]  an individual who is not a resident of this   state;                (7) [(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                (8) [(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.          (b)  Subsection (a)(4) [(a)(5)] does not prevent an   authorized organization or other person that is not organized for   pecuniary profit and no part of the net earnings of which inure to   the benefit of an individual, member, or shareholder from being   licensed as a commercial lessor solely because a public officer or a   person married or related in the first degree by consanguinity or   affinity to a public officer is a member of, active in, or employed   by the authorized organization or other person.          SECTION 5.  Section 2001.158, Occupations Code, is amended   by adding Subsection (e) to read as follows:          (e)  The commission shall deposit a license fee paid under   this section to the credit of the bingo administration account   established under Section 2001.521.          SECTION 6.  Section 2001.205, Occupations Code, is amended   by adding Subsection (c) to read as follows:          (c)  The commission shall deposit a license fee and any other   fee paid under this section to the credit of the bingo   administration account established under Section 2001.521.          SECTION 7.  Section 2001.209, Occupations Code, is amended   by adding Subsection (c) to read as follows:          (c)  The commission shall deposit a license fee and any other   fee paid under this section to the credit of the bingo   administration account established under Section 2001.521.          SECTION 8.  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 9.  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 10.  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 11.  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 12.  Section 2001.507, Occupations Code, is amended   by amending Subsections (a), (c), and (h) and adding Subsection (i)   to read as follows:          (a)  The commission shall deposit the revenue collected from   the fee on prizes imposed by Section 2001.502 to the credit of the   bingo administration account established under Section 2001.521 [a   special account in the general revenue fund].          (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).          (h)  Interest earned on all fees on prizes collected by the   commission under this chapter before distribution to a local   jurisdiction, including interest earned from the suspense accounts   retained under this section, shall be credited to the bingo   administration account established under Section 2001.521 [general   revenue fund].          (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 the bingo   administration account established under Section 2001.521 for that   year.          SECTION 13.  Chapter 2001, Occupations Code, is amended by   adding Subchapter K-1 to read as follows:   SUBCHAPTER K-1.  BINGO ADMINISTRATION ACCOUNT          Sec. 2001.521.  BINGO ADMINISTRATION ACCOUNT. (a)  The   bingo administration account is a special fund in the treasury   outside the general revenue fund.          (b)  The account consists of:                (1)  money paid to the commission as a commercial   lessor license fee and deposited in the account under Section   2001.158;                (2)  money paid to the commission as a manufacturer's   license fee or other fee and deposited in the account under Section   2001.205;                (3)  money paid to the commission as a distributor's   license fee or other fee and deposited in the account under Section   2001.209;                (4)  any other money paid to the commission under this   chapter and any money appropriated by the legislature to the   commission for the administration of bingo under this chapter and   transferred to the account;                (5)  gifts, grants, and donations received by the   commission for the purpose of the administration of bingo under   this chapter; and                (6)  interest earned on money in the account.          Sec. 2001.522.  USE OF MONEY IN ACCOUNT. Money required to   be deposited in the state treasury to the credit of the bingo   administration account may be used by the commission only to   support the commission's administration of bingo under this chapter   and to pay local shares of prize fees under Section 2001.507.          Sec. 2001.523.  APPLICABILITY OF OTHER LAW. Subchapter D,   Chapter 316, Government Code, and Section 403.095, Government Code,   do not apply to the account created under Section 2001.521.          SECTION 14.  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)  Section 2001.507, Occupations Code;                (2-a)  Section 2001.521, Occupations Code;                (3)  Section 403.105(d) of this code;                (4)  Sections 321.501 and 321.504, Tax Code;                (5)  Sections 322.301 and 322.304, Tax Code; and                (6)  Sections 323.501 and 323.504, Tax Code.          SECTION 15.  Sections 2001.104, 2001.313(b-2), 2001.437(e),   and 2001.507(d), Occupations Code, are repealed.          SECTION 16.  (a) The changes in law made by this Act in   amending Sections 2001.158, 2001.205, 2001.209, 2001.503, and   2001.507, Occupations Code, and in adding Subchapter K-1, Chapter   2001, Occupations Code, apply beginning with the state fiscal year   beginning September 1, 2019.          (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 17.  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 18.  This Act takes effect September 1, 2017.