85R10990 GCB-D     By: Lucio III H.B. No. 3611       A BILL TO BE ENTITLED   AN ACT   relating to the suspension of the entitlement of a county and   certain municipalities to a local share of a bingo prize fee 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) An authorized organization that holds a   license to conduct bingo may provide evidence to the commission to   establish that:                (1)  a place of business located in the county in which   the authorized organization conducts bingo offers patrons of the   business the opportunity to place bets through a gambling device,   as defined by Section 47.01(4), Penal Code, in violation of Chapter   47 of that code; and                (2)  the conduct described by Subdivision (1) causes a   substantial detriment to charitable bingo conducted in the county.          (b)  If the commission determines based on evidence   submitted under Subsection (a) that illegal gambling is occurring   in a county and is causing a substantial detriment to charitable   bingo conducted in that county, the commission shall notify the   comptroller, the county, each authorized organization 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 are   suspended.          (c)  A county whose entitlement to a local share of a prize   fee is suspended under this section may provide evidence to the   commission to establish that the commission's determination under   Subsection (b) of detrimental illegal gambling in the county was   made in error. If, based on evidence provided by the county, the   commission agrees the determination was made in error, the   commission shall remove the suspension and notify the comptroller,   the county, each authorized organization 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 suspension's   removal.          (d)  If the commission does not remove a suspension under   Subsection (c), the county may request an administrative hearing on   the matter before the State Office of Administrative Hearings.          (e)  A suspension of the state's authority to collect a prize   fee and the entitlement to a local share of a prize fee continues   until removed by the commission based on evidence provided by the   county under Subsection (c), or until removed by order of an   administrative law judge employed by the State Office of   Administrative Hearings or of a court of competent jurisdiction.          (f)  The commission shall adopt rules as necessary to   implement this section.          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 that is notified by   the commission under Section 2001.062 that the state's authority to   collect a prize fee under this section is suspended shall include   any prize fee collected under this section in its net proceeds for   purposes of Section 2001.454 until the date the commission notifies   the organization that the suspension is removed.          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 at any time when the   entitlement to the local share is suspended 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.