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Statutes > Texas > Occupations-code > Title-13-sports-amusements-and-entertainment > Chapter-2001-bingo

OCCUPATIONS CODE

TITLE 13. SPORTS, AMUSEMENTS, AND ENTERTAINMENT

SUBTITLE A. GAMING

CHAPTER 2001. BINGO

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2001.001. SHORT TITLE. This chapter may be cited as the

Bingo Enabling Act.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.002. DEFINITIONS. In this chapter:

(1) "Authorized commercial lessor" means a person eligible for a

commercial license to lease bingo premises under Subchapter D.

(2) "Authorized organization" means a person eligible for a

license to conduct bingo.

(3) Repealed by Acts 2009, 81st Leg., R.S., Ch. 636, Sec. 42(1),

eff. October 1, 2009.

(4) "Bingo" or "game" means, except as provided by Section

2001.551, a specific game of chance, commonly known as bingo or

lotto, in which prizes are awarded on the basis of designated

numbers or symbols conforming to randomly selected numbers or

symbols.

(4-a) "Bingo chairperson" means an officer or member of the

board of directors of a licensed authorized organization who is

designated in writing by the organization as responsible for

overseeing the organization's bingo activities and reporting to

the membership relating to those activities.

(5) "Bingo equipment" means equipment used, made, or sold for

the purpose of use in bingo. The term:

(A) includes:

(i) a machine or other device from which balls or other items

are withdrawn to determine the letters and numbers or other

symbols to be called;

(ii) an electronic or mechanical cardminding device;

(iii) a pull-tab dispenser;

(iv) a bingo card;

(v) a bingo ball; and

(vi) any other device commonly used in the direct operation of a

bingo game; and

(B) does not include:

(i) a bingo game set commonly manufactured and sold as a child's

game for a retail price of $20 or less unless the set or a part

of the set is used in bingo subject to regulation under this

chapter; or

(ii) a commonly available component part of bingo equipment such

as a light bulb or fuse.

(6) "Bingo occasion" means a single gathering or session at

which a bingo game or a series of bingo games, including selling

and redeeming pull-tab bingo tickets, are conducted on the day

and at the times listed on the license issued to a licensed

authorized organization.

(7) "Charitable purpose" means a purpose described by Section

2001.454.

(8) "Commission" means the Texas Lottery Commission.

(8-a) "Crime of moral turpitude" means:

(A) a felony;

(B) a gambling offense;

(D) forgery;

(E) theft;

(F) an offense that involves filing false information with a

governmental agency; or

(G) any offense that:

(i) is classified in this state as a Class A misdemeanor; and

(ii) puts the honesty and integrity of the individual who

committed the offense in question.

(9) "Distributor" means a person who obtains, by purchase or

otherwise, bingo equipment or supplies for use in bingo in this

state and sells or furnishes the items to another person for use,

resale, display, or operation.

(10) Repealed by Acts 2009, 81st Leg., R.S., Ch. 636, Sec.

42(1), eff. October 1, 2009.

(11) "Fraternal organization" means:

(A) a nonprofit organization organized to perform and engaged

primarily in performing charitable, benevolent, patriotic,

employment-related, or educational functions that meet the other

requirements of this chapter; or

(B) a nonprofit National Historical District Association

representing the owners and lessees of a majority of the real

property located in a National Historical District designated for

not less than five years by the National Register of Historic

Places, Heritage Conservation and Recreation Service of the

United States Department of the Interior, if the association's

net proceeds are used for restoration, construction, maintenance,

and security in the district. The term "fraternal organization"

does not include an organization whose members are predominantly

veterans or dependents of veterans of the armed services of the

United States.

(12) "Governing body" means the commissioners court with regard

to a county or justice precinct or the city council or other

chief legislative body with regard to a municipality.

(13) "Gross receipts" means the total amount received from the

sale, rental, transfer, or use of bingo cards and entrance fees

charged at premises at which bingo is conducted.

(14) "Licensed authorized organization" means an authorized

organization that holds a license to conduct bingo.

(15) "Licensed commercial lessor" means a person licensed to

lease premises and act as a commercial lessor.

(16) "Manufacturer" means:

(A) a person who assembles from raw materials or subparts a

completed piece of bingo equipment or supplies for use in bingo

games in this state; or

(B) a person who converts, modifies, adds to, or removes parts

from any bingo equipment, item, or assembly to further its

promotion or sale for or use in a bingo game in this state.

(17) "Municipal secretary" means the officer of a municipality

performing the duties of municipal secretary.

(18) "Net proceeds" means:

(A) in relation to the gross receipts from one or more bingo

occasions, the amount remaining after deducting the reasonable

sums necessarily and actually expended for expenses under Section

2001.458 and the fee on prizes under Section 2001.502; and

(B) in relation to the gross rent or other consideration

received by a licensed authorized organization for the use of its

premises, fixtures, or equipment by another license holder, the

amount remaining after deducting the reasonable sums necessarily

and actually expended for any janitorial services and utility

supplies directly attributable to the use of the premises,

fixtures, or equipment.

(19) "Nonprofit organization" means an unincorporated

association or a corporation that is incorporated or holds a

certificate of authority under the Texas Non-Profit Corporation

Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes).

The organization:

(A) may not distribute any of its income to its members,

officers, or governing body, other than as reasonable

compensation for services; and

(B) must have obtained tax exempt status under Section 501(c),

Internal Revenue Code of 1986.

(20) "Person" means an individual, partnership, corporation, or

other group.

(21) "Political subdivision" means a county, justice precinct,

or municipality.

(22) "Premises" means the area subject to the direct control of

and actual use by a licensed authorized organization or group of

licensed authorized organizations to conduct bingo. The term

includes a location or place.

(23) "Primary business office" means the location at which all

records relating to the primary purpose of a licensed authorized

organization are maintained in the ordinary course of business.

(24) "Pull-tab bingo" means a form of bingo played using tickets

with perforated break-open tabs, made of paper or paper products,

the face of which is covered or otherwise hidden from view to

conceal numbers, letters, or symbols, some of which have been

designated in advance as prize winners. The term includes games

commonly known as "instant bingo" and "break-open bingo."

(25) "Pull-tab dispenser" means an electronic or mechanical

device that dispenses a pull-tab bingo ticket after a person

inserts money into the device and includes a device commonly

known as a "ticket dispenser."

(25-a) "Regular license" means a license to conduct bingo that

is issued by the commission and that expires on the first or

second anniversary of the date of issuance unless revoked or

suspended before that date by the commission. The term includes

an annual license.

(26) "Religious society" means a church, synagogue, or other

organization organized primarily for religious purposes.

(27) "Veterans organization" means a nonprofit organization:

(A) whose members are veterans or dependents of veterans of the

armed services of the United States; and

(B) that is chartered by the United States Congress and

organized to advance the interests of veterans or active duty

personnel of the armed forces of the United States and their

dependents.

(28) "Volunteer fire department" means a fire-fighting

organization that:

(A) operates fire-fighting equipment;

(B) is organized primarily to provide fire-fighting service;

(D) does not pay its members compensation other than nominal

compensation.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 1114, Sec. 1, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 1, eff. October 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 42(1), eff. October 1, 2009.

SUBCHAPTER B. COMMISSION POWERS AND DUTIES

Sec. 2001.051. CONTROL AND SUPERVISION OF BINGO; BINGO DIVISION.

(a) The commission shall administer this chapter.

(b) The commission has broad authority and shall exercise strict

control and close supervision over all bingo conducted in this

state so that bingo is fairly conducted and the proceeds derived

from bingo are used for an authorized purpose.

division established by the commission to administer this

chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.052. DIRECTOR OF BINGO OPERATIONS. (a) The

commission shall employ a director of bingo operations.

(b) The director of bingo operations shall administer the bingo

division under the direction of the commission.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.053. OFFICERS AND INVESTIGATORS. The commission may

employ officers or investigators the commission considers

necessary to administer this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.054. RULEMAKING AUTHORITY. The commission may adopt

rules to enforce and administer this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.055. REGULATION OF GAMES. The commission by rule may

establish the number and type of bingo games that may be played

during a bingo occasion.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.056. APPROVAL OF BINGO CARDS. (a) The commission by

rule shall provide procedures for the approval of bingo cards.

(b) A license holder may not use or distribute a bingo card

unless the card has been approved by the commission.

prices for the sale or provision of bingo cards by a licensed

authorized organization.

(d) A licensed authorized organization may not sell or provide a

bingo card at a price other than a price authorized by the

commission or a schedule adopted by the commission.

(e) The commission by rule may require a licensed authorized

organization to notify the commission of the price for bingo

cards the organization will use for one or more reporting

periods.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.057. BINGO ADVISORY COMMITTEE. (a) The commission

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.

(b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 636, Sec. 42(2),

eff. October 1, 2009.

(d) A committee member is not entitled to receive compensation

for serving as a member. A committee member is entitled to

reimbursement for reasonable expenses incurred in performing

duties as a member.

(e) The committee may:

(1) advise the commission on the needs and problems of the

state's bingo industry;

(2) comment on rules involving bingo during their development

and before final adoption unless an emergency requires immediate

action by the commission;

(3) report annually to the commission on the committee's

activities; and

(4) perform other duties as determined by the commission.

(f) The committee may meet quarterly or at the commission's

request.

(g) The commission may adopt rules to govern the operations of

the committee.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 42(2), eff. October 1, 2009.

Sec. 2001.058. PUBLIC INFORMATION. (a) The commission shall

provide to any person on request a printed copy of this chapter

and the rules applicable to the enforcement of this chapter.

(b) The commission may charge a reasonable amount for a copy

provided under this section.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.059. ADVISORY OPINIONS. (a) An officer, bingo

chairperson, or authorized representative of a license holder or

an attorney, accountant, or bookkeeper employed or retained by a

license holder may request from the commission an advisory

opinion regarding compliance with this chapter and the rules of

the commission.

(b) The commission shall respond to a request under Subsection

(a) not later than the 60th day after the date a request is

received, unless the commission determines that the request does

not contain sufficient facts to provide an answer on which the

requestor may rely. In that event, the commission shall request

additional information from the requestor not later than the 10th

day after the date the request is received. If the commission

requests additional information, the commission shall respond to

the request not later than the 60th day after the date additional

information is received pursuant to the request for additional

information.

(a) may act in reliance on the opinion in the conduct of any

activity under any license issued under this chapter if the

conduct is substantially consistent with the opinion and the

facts stated in the request.

(d) An advisory opinion issued under this section is not a rule

under Subchapter B, Chapter 2001, Government Code, and the

rulemaking requirements of that subchapter do not apply to a

request for an advisory opinion or any advisory opinion issued by

the commission.

(e) Nothing in this section precludes the commission from

requesting an attorney general opinion under Section 402.042,

Government Code. In the event the commission requests an attorney

general opinion on a matter that is the subject of an advisory

opinion request under this section, the deadlines established

under Subsection (b) are tolled until 30 days following the

issuance of the attorney general opinion.

(f) The commission may delegate all or part of the authority and

procedures for issuing advisory opinions under this section to an

employee of the commission.

(g) The commission may refuse to issue an advisory opinion under

this section on a matter that the commission knows to be in

active litigation.

Added by Acts 2003, 78th Leg., ch. 1114, Sec. 2, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 2, eff. October 1, 2009.

Sec. 2001.060. REPORTING. (a) On or before June 1 of each

even-numbered year, the commission shall prepare and deliver to

the governor, the lieutenant governor, the speaker of the house

of representatives, and the chairs of the standing committees of

the senate and house of representatives with primary jurisdiction

over charitable bingo a report stating for each of the preceding

two calendar years:

(1) the total amount of adjusted gross receipts reported by

licensed authorized organizations from their bingo operations;

(2) the total amount of net proceeds reported by licensed

authorized organizations from their bingo operations; and

(3) a comparison of the amounts reported under Subdivisions (1)

and (2), including the percentage that the net proceeds

represents of the adjusted gross receipts.

(b) For purposes of Subsection (a), "adjusted gross receipts"

means the amount remaining after deducting prizes paid, excluding

prize fees collected from bingo players.

determine the total amount of net proceeds in a manner that does

not reduce gross receipts by the amount of rent paid for the

rental of bingo premises by a licensed authorized organization to

another licensed authorized organization if the other

organization pays rent for the premises to a licensed commercial

lessor.

Added by Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 3, eff. October 1, 2009.

SUBCHAPTER C. LICENSE TO CONDUCT BINGO

Sec. 2001.101. AUTHORIZED ORGANIZATION. (a) The commission may

license a person who is an authorized organization eligible for a

license to conduct bingo if the person is:

(1) a religious society that has existed in this state for at

least three years;

(2) a nonprofit organization:

(A) whose predominant activities are for the support of medical

research or treatment programs; and

(B) that for at least three years:

(i) must have had a governing body or officers elected by a vote

of members or by a vote of delegates elected by the members; or

(ii) must have been affiliated with a state or national

organization organized to perform the same purposes as the

nonprofit organization;

(3) a fraternal organization;

(4) a veterans organization that has existed in this state for

at least three years;

(5) a volunteer fire department that has existed in this state

for at least three years; or

(6) a volunteer emergency medical services provider that has

existed in this state for at least three years.

(b) A fraternal organization:

(1) must have been organized in this state for at least three

years;

(2) must have had during the three-year period a bona fide

membership actively and continuously engaged as an organization

in furthering its authorized purposes; and

(3) may not have authorized a person on behalf of its

membership, governing body, or officers to support or oppose a

particular candidate for public office by:

(A) making political speeches;

(B) passing out cards or other political literature;

(D) signing or circulating petitions;

(E) making campaign contributions; or

(F) soliciting votes.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 4, eff. October 1, 2009.

Sec. 2001.102. LICENSE APPLICATION. (a) An applicant for a

license to conduct bingo must file with the commission an

application on a form prescribed by the commission.

(b) The application must include:

(1) the name and address of the applicant;

(2) the names and addresses of the applicant's officers and

directors;

(3) the address of the premises where and the time when the

applicant intends to conduct bingo under the license sought;

(4) the name and address of the licensed commercial lessor of

the premises, if the applicant intends to lease premises to

conduct bingo from a person other than an authorized

organization;

(5) a statement that the net proceeds of bingo will go to one

or more of the authorized charitable purposes under this chapter;

(6) a designation of the applicant organization's bingo

chairperson under whom bingo will be conducted accompanied by a

statement signed by the chairperson stating that the chairperson

will be responsible for the conduct of bingo under the terms of

the license and this chapter;

(7) sufficient facts relating to the applicant's incorporation

and organization to enable the commission to determine whether

the applicant is an authorized organization;

(8) a copy of the applicant organization's most recently filed

Internal Revenue Service Form 990, if applicable;

(9) a letter of good standing from the applicant organization's

parent organization, if the organization receives an exemption

from federal income taxes as a member of a group of

organizations;

(10) copies of the applicant organization's organizing

instruments, including any bylaws, constitution, charter, and

articles of incorporation;

(11) verification of the applicant organization's good standing

with the secretary of state if the organization is organized

under the law of this state; and

(12) information necessary to conduct criminal background checks

on the applicant organization's officers and directors.

an applicant's exemption from taxation under Section 501(c),

Internal Revenue Code of 1986, is adequate evidence of the

person's tax-exempt status. A letter of good standing from a

parent organization that holds an exemption from taxation under

Section 501(c), Internal Revenue Code of 1986, for both the

parent organization and its affiliate is adequate evidence of the

affiliate organization's tax-exempt status.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 5, eff. October 1, 2009.

Sec. 2001.103. TEMPORARY LICENSE. (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.

(b) A temporary license is valid for four hours during any one

day.

licenses in a calendar year.

(d) An organization operating under a temporary license is

subject to:

(1) the taxes and fees authorized or imposed by this chapter;

and

(2) the other provisions of this chapter to the extent they can

be made applicable.

(e) Notwithstanding Subsection (c), an authorized organization

that holds an annual license to conduct bingo may receive not

more than 24 temporary licenses during the 12-month period

following the issuance or renewal of the license. The holder of

a license that is effective for two years may receive not more

than 24 temporary licenses for each 12-month period that ends on

an anniversary of the date the license was issued or renewed.

(f) An authorized organization that holds a regular license to

conduct bingo may apply for all or any portion of the total

number of temporary licenses to which the organization is

entitled under Subsection (e) in one application without stating

the days or times for which the organization will use the

temporary licenses.

(g) An organization that has been issued a temporary license

under Subsection (f) shall notify the commission of the specific

date and time of the bingo occasion for which the temporary

license will be used before using the license. If the commission

receives the notification by noon of the day before the day the

temporary license will be used, the commission shall verify

receipt of the notice before the end of the business day on which

the notice is received. If the commission does not receive the

notification by noon of the day before the day the temporary

license will be used, the commission shall verify receipt of the

notice before noon of the business day that follows the day the

commission received the notice.

(h) A verification under Subsection (g) may be delivered by

facsimile, e-mail, or any other means reasonably contemplated to

arrive before the time the temporary license will be used.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 1114, Sec. 3, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 6, eff. October 1, 2009.

Sec. 2001.104. LICENSE FEES. (a) The commission shall set the

fees for a license to conduct bingo in an amount reasonable to

defray administrative costs but not less than the following:

(1) Class A (annual gross receipts of $25,000 or less)-$100;

(2) Class B (annual gross receipts of more than $25,000 but not

more than $50,000)-$200;

(3) Class C (annual gross receipts of more than $50,000 but not

more than $75,000)-$300;

(4) Class D (annual gross receipts of more than $75,000 but not

more than $100,000)-$400;

(5) Class E (annual gross receipts of more than $100,000 but not

more than $150,000)-$600;

(6) Class F (annual gross receipts of more than $150,000 but not

more than $200,000)-$900;

(7) Class G (annual gross receipts of more than $200,000 but not

more than $250,000)-$1,200;

(8) Class H (annual gross receipts of more than $250,000 but not

more than $300,000)-$1,500;

(9) Class I (annual gross receipts of more than $300,000 but not

more than $400,000)-$2,000; and

(10) Class J (annual gross receipts of more than

$400,000)-$2,500.

(b) The commission by rule shall establish procedures to

determine if the appropriate license fee was paid.

(1) the payment of any additional fee amount determined to be

due under Subsection (b); and

(2) credit to be given to the license holder for any excess fee

amount determined under Subsection (b) to have been paid by the

license holder.

(d) An applicant shall pay the fees established under Subsection

(a) annually. An applicant for a license or renewal of a license

may obtain a license that is effective for two years by paying an

amount equal to two times the amount of the annual license fee,

or by paying the license fee for the first year at the time the

applicant submits the application and the fee for the second year

not later than the first anniversary of the date the license

becomes effective.

(e) A licensed authorized organization may pay in advance, or

establish an escrow account with the commission to cover, fees

assessed under this chapter for the amendment of a license or

issuance of a temporary license.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 1114, Sec. 4, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 7, eff. October 1, 2009.

Sec. 2001.105. LICENSE ISSUANCE OR RENEWAL. (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

felony, a gambling offense, criminal fraud, or a crime of moral

turpitude if less than 10 years has elapsed since the termination

of a sentence, parole, mandatory supervision, or community

supervision served for the offense.

(b) The commission may not issue a license to an authorized

organization to conduct bingo if an officer or member of the

board of directors of the organization has been convicted of a

felony, criminal fraud, a gambling or gambling-related offense,

or a crime of moral turpitude if less than 10 years has elapsed

since the termination of a sentence, parole, mandatory

supervision, or community supervision served for the offense.

under this subchapter is effective for one year.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 1114, Sec. 5, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 8, eff. October 1, 2009.

Sec. 2001.106. FORM AND CONTENTS OF LICENSE. A license to

conduct bingo must include:

(1) the name and address of the license holder;

(2) the name and address of the bingo chairperson of the license

holder under whom the bingo will be conducted; and

(3) the address of the premises where and the time when bingo is

to be conducted.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 9, eff. October 1, 2009.

Sec. 2001.107. TRAINING PROGRAM. (a) Unless the organization

is a member of a unit that designates a unit manager under

Section 2001.437, the bingo chairperson for a licensed authorized

organization shall complete the training required by commission

rule. For a unit operating under Subchapter I-1, the unit

manager shall complete the training if the unit designates a unit

manager under Section 2001.437.

(b) A training program approved by the commission must include

training related to:

(1) conducting bingo;

(2) administering and operating bingo; and

(3) promoting bingo.

(1) the content of the training course;

(2) information concerning training to be reported to the

commission; and

(3) other training program requirements that the commission

determines to be necessary to promote the fair conduct of bingo

and compliance with this chapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 10, eff. October 1, 2009.

Sec. 2001.108. LICENSE AMENDMENT FOR CHANGE OF BINGO PREMISES OR

OCCASIONS. (a) A licensed authorized organization and the

licensed commercial lessor at which the organization conducts or

will conduct bingo may file a joint application with the

commission to change the premises at which the organization may

conduct bingo or the times of the organization's bingo occasions

to allow the organization to conduct bingo at the same time and

premises that another licensed authorized organization is

licensed to conduct bingo if the other organization has ceased,

or will cease, conducting bingo at that time and premises. The

application must state whether the other organization has ceased

or will cease conducting bingo at that time and premises because:

(1) the organization has abandoned or will abandon its licensed

time or premises; or

(2) the organization's lease has been or will be terminated.

(b) If the other organization ceased or will cease conducting

bingo for the reason stated in Subsection (a)(1), the commission

must act on the joint application filed under Subsection (a) not

later than the 14th day after the date the application is filed

with the commission.

bingo for the reason stated in Subsection (a)(2), the commission

must act on the joint application filed under Subsection (a) not

later than the 14th day after the date the application is filed

with the commission or the date on which the termination takes

effect, whichever is later.

(d) If the commission fails to act within the time provided by

Subsection (b) or (c), the licensed authorized organization may

act as if the change in premises or bingo occasions has been

approved by the commission and may conduct bingo at the new

premises or during the new bingo occasion until the commission

acts on the application.

(e) Notwithstanding Subsection (d), the commission may issue

temporary licenses to one or more licensed authorized

organizations that conduct bingo at the same location as an

organization that has ceased or will cease to conduct bingo,

which are in addition to the number of temporary licenses each

organization is entitled to under another provision of this

chapter. The commission is not required to act on a joint

application under Subsection (a) within the time provided by this

section if the number of additional temporary licenses is

sufficient to allow the other organizations at the location to

conduct bingo during the licensed times of the organization that

has ceased or will cease to conduct bingo.

Added by Acts 2003, 78th Leg., ch. 1114, Sec. 6, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 11, eff. October 1, 2009.

SUBCHAPTER D. COMMERCIAL LESSOR LICENSE

Sec. 2001.151. LICENSE REQUIRED. A person who leases premises

on which bingo is conducted directly to a licensed authorized

organization must be a licensed commercial lessor.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.152. ELIGIBILITY. (a) The commission may issue a

commercial lessor license only to:

(1) a licensed authorized organization that owns or leases a

premises where bingo is or will be conducted or an association of

licensed authorized organizations that jointly own or lease

premises where bingo is or will be conducted and that the

organization or association leases or offers for lease to one or

more other authorized organizations for the conduct of bingo;

(2) a person who leases premises to a single licensed authorized

organization that subleases or will sublease the premises to one

or more other licensed authorized organizations for the conduct

of bingo; or

(3) a person who leases premises for the total control and

exclusive use of only one licensed authorized organization as

that organization's primary business office.

(b) Notwithstanding Subsection (a), a person who was a licensed

commercial lessor on June 10, 1989, whose license has been in

effect continuously since that date, and who is otherwise

eligible for the license may renew the license.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 1114, Sec. 7, eff. Sept. 1,

2003.

Sec. 2001.153. RESTRICTIONS ON SOURCE OF FUNDS. (a) The

commission may not issue a commercial lessor license to a person

unless the commission receives evidence the commission considers

adequate that funds used by the person seeking the license to

obtain the premises, provide the premises with furniture,

fixtures, or equipment, renovate the premises, or provide

utilities to the premises are:

(1) the person's own funds; or

(2) the funds of another person, including loan proceeds, that:

(A) were obtained in an arms-length transaction that was

commercially reasonable under the circumstances; and

(B) were not obtained under an expectation or obligation that

the person from whom the funds were obtained would directly

participate in, or have a legal interest in, rents obtained under

the license or revenues or profits from the conduct of bingo on

the premises.

(b) Subsection (a) does not prohibit a group of licensed

authorized organizations from combining the organizations' funds

or combining or jointly obtaining funds described by Subsection

(a)(2).

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

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 a felony, criminal fraud, a gambling

or gambling-related offense, or a crime of moral turpitude if

less than 10 years has elapsed since termination of a sentence,

parole, mandatory supervision, or community supervision served

for the 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.

(b) Subsection (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.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.156. LICENSE APPLICATION. (a) An applicant for a

commercial lessor license must file with the commission a written

verified application on a form prescribed by the commission.

(b) The license application must include:

(1) the name and address of the applicant and each other person

who has a financial interest in or who is in any capacity a real

party in interest in the applicant's business as it pertains to

this chapter;

(2) a designation and address of the premises intended to be

covered by the license;

(3) the lawful capacity of the premises for public assembly

purposes;

(4) a statement that a copy of the application has been sent to

the appropriate governing body; and

(5) a statement that the applicant complies with the conditions

for eligibility for the license.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.157. SUPPLEMENTAL INFORMATION. At any time the

commission, the appropriate governing body, or the attorney

general may make a written request of a commercial lessor to

disclose:

(1) the cost of the premises and appraised value for property

tax purposes or annual net lease rent, whichever is applicable;

(2) gross rentals received and itemized expenses for the

preceding calendar or fiscal year, if any;

(3) gross rentals, if any, derived from bingo during the

preceding calendar or fiscal year;

(4) the computation by which the proposed rental schedule was

determined;

(5) the number of occasions on which the lessor anticipates

receiving rent for bingo during the next year or shorter period

if applicable and the proposed rent for each of those occasions;

(6) estimated gross rental income from all other sources during

the next year; and

(7) estimated expenses itemized for the current year and the

amount of each item allocated to bingo rentals.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.158. LICENSE FEES. (a) The commission shall set the

fees for a commercial lessor license in an amount reasonable to

defray administrative costs but not less than the following:

(1) Class A (annual gross rentals from licensed organizations of

not more than $12,000)-$100;

(2) Class B (annual gross rentals from licensed organizations of

more than $12,000 but not more than $20,000)-$200;

(3) Class C (annual gross rentals from licensed organizations of

more than $20,000 but not more than $30,000)-$300;

(4) Class D (annual gross rentals from licensed organizations of

more than $30,000 but not more than $40,000)-$400;

(5) Class E (annual gross rentals from licensed organizations of

more than $40,000 but not more than $50,000)-$600;

(6) Class F (annual gross rentals from licensed organizations of

more than $50,000 but not more than $60,000)-$900;

(7) Class G (annual gross rentals from licensed organizations of

more than $60,000 but not more than $70,000)-$1,200;

(8) Class H (annual gross rentals from licensed organizations of

more than $70,000 but not more than $80,000)-$1,500;

(9) Class I (annual gross rentals from licensed organizations of

more than $80,000 but not more than $90,000)-$2,000; and

(10) Class J (annual gross rentals from licensed organizations

of more than $90,000)-$2,500.

(b) The commission by rule shall establish procedures for

determining if the appropriate license fee was paid.

(1) the payment of any additional fee amount determined to be

due not paid under Subsection (b); and

(2) credit to be given to the license holder for any excess fee

amount determined under Subsection (b) to have been paid by the

license holder.

(d) An applicant for a commercial lessor license shall pay the

fees established under Subsection (a) annually. An applicant for

a license or renewal of a license may obtain a license that is

effective for two years by paying an amount equal to two times

the amount of the annual license fee, or by paying the license

fee for the first year at the time the applicant submits the

application and the license fee for the second year not later

than the first anniversary of the date the license becomes

effective.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 1114, Sec. 8, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 12, eff. October 1, 2009.

Sec. 2001.159. LICENSE ISSUANCE OR RENEWAL. (a) The commission

shall issue or renew a commercial lessor license if the

commission determines that:

(1) the applicant has paid the license fee as provided by

Section 2001.158;

(2) the applicant qualifies to be licensed under this chapter;

(3) the rent to be charged is fair and reasonable;

(4) there is no diversion of the funds of the proposed lessee

from the lawful purposes under this chapter;

(5) the person whose signature or name appears in the

application is in all respects the real party in interest and is

not an undisclosed agent or trustee for the real party in

interest; and

(6) the applicant will lease the premises for the conduct of

bingo in accordance with this chapter.

(b) The commission shall issue a commercial lessor license under

this section for the period specified in the license application

or for a shorter period as the commission determines.

not exceed one year.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2003, 78th Leg., ch. 1114, Sec. 9, eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 13, eff. October 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 14, eff. October 1, 2009.

Sec. 2001.160. TRANSFER OF LICENSE. (a) A licensed commercial

lessor may not transfer a commercial lessor license except as

provided by this section.

(b) A transfer of a commercial lessor license under this section

may be made only with the prior approval of the commission. The

commission shall approve the transfer under this section if the

person to whom the license will be transferred otherwise meets

the requirements of this section.

eff. October 1, 2009.

(d) Subject to Subsections (e) and (f), if an individual who

holds a commercial lessor license dies or becomes incapacitated

as determined by a court of this state, the individual's license

is part of the individual's estate and is subject to the

applicable laws governing the disposition and control of the

person's property. The license is not considered to have been

transferred, subject to compliance with Subsection (g). The

individual's estate may take any action with respect to the

individual's license that the individual could have taken while

the individual was alive or had capacity.

(e) Unless an injunction is issued under this section, a

licensed authorized organization that conducts bingo lawfully at

premises under a license to which Subsection (d) applies may

continue conducting bingo at the premises after the death or

incapacity of the commercial lessor license holder.

(f) On the showing by the commission of a cause that would be

sufficient for the commission to obtain a license suspension

under Section 2001.355, a district court in the county for which

a commercial lessor license was issued may temporarily or

permanently enjoin the conduct of bingo at premises under a

license to which Subsection (d) applies.

(g) The estate or guardian of an individual to whom Subsection

(d) applies shall notify the commission not later than one year

after the date the individual dies or is determined to be

incapacitated by a court of this state. The estate or guardian

and the heirs or other appropriate person shall promptly take all

necessary steps to complete a transfer of the license to the

heirs or other appropriate person.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 42(3), eff. October 1, 2009.

Sec. 2001.161. LICENSED AUTHORIZED ORGANIZATION AS COMMERCIAL

LESSOR. (a) Repealed by Acts 2009, 81st Leg., R.S., Ch. 636,

Sec. 42(4), eff. October 1, 2009.

(b) A licensed authorized organization may obtain only one

commercial lessor license.

licensed authorized organization only for the same premises where

the organization is licensed to conduct bingo.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 42(4), eff. October 1, 2009.

SUBCHAPTER E. MANUFACTURER'S AND DISTRIBUTOR'S LICENSES

Sec. 2001.201. MANUFACTURER'S LICENSE REQUIRED. A manufacturer

may not sell or supply to a person in this state or for use in

this state bingo cards, boards, sheets, pads, or other supplies,

or equipment designed to be used in playing bingo, or engage in

any intrastate activity involving those items, unless the

manufacturer holds a manufacturer's license under this

subchapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.202. ELIGIBILITY FOR MANUFACTURER'S LICENSE. The

following persons are not eligible for a manufacturer's license:

(1) a person convicted of a felony, criminal fraud, a gambling

or gambling-related offense, or a crime of moral turpitude if

less than 10 years has elapsed since the termination of a

sentence, parole, mandatory supervision, or community supervision

served for the offense;

(2) a person who is or has been a professional gambler or

gambling promoter;

(3) an elected or appointed public officer or a public employee;

(4) an owner, officer, director, shareholder, agent, or employee

of a licensed commercial lessor;

(5) a person who conducts, promotes, or administers, or assists

in conducting, promoting, or administering, bingo for which a

license is required by this chapter;

(6) a distributor required to be licensed under this chapter;

(7) a person who has had a license to manufacture, distribute,

or supply bingo equipment or supplies revoked within the

preceding year by another state;

(8) an owner, officer, director, or shareholder of, or a person

holding an equitable or credit interest in, another manufacturer

or distributor licensed or required to be licensed under this

chapter; or

(9) a person:

(A) in which a person described by Subdivision (1), (2), (3),

(4), (5), (6), (7), or (8) or in which a person married or

related in the first degree by consanguinity or affinity 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; or

(B) in whose application for a manufacturer's license a person

described by Subdivision (1), (2), (3), (4), (5), (6), (7), or

(8) is required to be named.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.203. MANUFACTURER'S LICENSE APPLICATION. (a) An

applicant for a manufacturer's license must file with the

commission an application on a form prescribed by the commission.

(b) The application must include:

(1) the name and address of the applicant and the name and

address of each of its locations where bingo supplies or

equipment are manufactured;

(2) a full description of each type of bingo supply or equipment

that the applicant intends to manufacture or market in this state

and the brand name, if any, under which each item will be sold;

(3) if the applicant:

(A) is not a corporation, the name and home address of each

owner; or

(B) is a corporation, the name and home address of each officer

and director and each person owning more than 10 percent of a

class of stock in the corporation;

(4) if the applicant is a foreign corporation or other foreign

legal entity, the name, business name and address, and address of

its registered agent for service in this state;

(5) the name and address of each manufacturer, supplier, and

distributor in which the applicant has a financial interest and

the details of that financial interest, including any

indebtedness between the applicant and the manufacturer,

supplier, or distributor of $5,000 or more;

(6) information regarding whether the applicant or a person

required to be named in the application has been convicted in

this state or another state of a felony, criminal fraud, a

gambling or gambling-related offense, or a crime of moral

turpitude;

(7) information regarding whether the applicant or a person

required to be named in the application is an owner, officer,

director, shareholder, agent, or employee of a licensed

commercial lessor or conducts, promotes, administers, or assists

in conducting, promoting, or administering bingo for which a

license is required by this chapter;

(8) information regarding whether the applicant or a person

required to be named in the application is a public officer or

public employee in this state;

(9) the name of each state in which the applicant is or has been

licensed to manufacture, distribute, or supply bingo equipment or

supplies, each license number, the period of time licensed under

each license, and whether a license has been revoked, suspended,

withdrawn, canceled, or surrendered and, if so, the reasons for

the action taken;

(10) information regarding whether the applicant or a person

required to be named in the application is or has been a

professional gambler or gambling promoter;

(11) the names and addresses of each manufacturer, supplier, or

distributor of bingo equipment or supplies in which the applicant

or a person required to be named in the application is an owner,

officer, shareholder, director, agent, or employee; and

(12) any other information the commission requests.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 15, eff. October 1, 2009.

Sec. 2001.204. MANUFACTURER'S LICENSE BOND. (a) An applicant

for a manufacturer's license must give the commission a cash bond

or a bond in the amount of $10,000 issued by a surety company

chartered or authorized to do business in this state.

(b) The bond must provide for forfeiture to the state on the

manufacturer's failure to comply with this chapter or a

commission rule or on suspension or revocation of the

manufacturer's license.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.205. MANUFACTURER'S LICENSE FEE. (a) The annual

manufacturer's license fee is $3,000.

(b) In addition to the annual license fee, the commission may

require an additional fee in an amount necessary to defray the

cost of a background investigation, including the inspection of

manufacturing plants and locations. The commission by rule may

establish the conditions and procedure for payment of the

additional fee.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.206. DISTRIBUTOR'S LICENSE REQUIRED. A distributor

may not sell, distribute, or supply bingo equipment or supplies

for use in bingo in this state unless the distributor holds a

distributor's license under this subchapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.207. ELIGIBILITY FOR DISTRIBUTOR'S LICENSE. The

following persons are not eligible for a distributor's license:

(1) a person convicted of a felony, criminal fraud, a gambling

or gambling-related offense, or a crime of moral turpitude if

less than 10 years has elapsed since the termination of a

sentence, parole, community supervision, or mandatory supervision

served for the offense;

(2) a person who is or has been a professional gambler or

gambling promoter;

(3) an elected or appointed public officer or a public employee;

(4) an owner, officer, director, shareholder, agent, or employee

of a licensed commercial lessor;

(5) a person who conducts, promotes, or administers, or assists

in conducting, promoting, or administering bingo for which a

license is required by this chapter;

(6) a manufacturer required to be licensed under this chapter;

(7) a person who has had a license to manufacture, distribute,

or supply bingo equipment or supplies revoked within the

preceding year by another state;

(8) an owner, officer, director, or shareholder of, or a person

having an equitable or credit interest in, another manufacturer

or distributor licensed or required to be licensed under this

chapter; or

(9) a person:

(A) in which a person described by Subdivision (1), (2), (3),

(4), (5), (6), (7), or (8) or in which a person married or

related in the first degree by consanguinity or affinity, as

determined under Subchapter B, 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; or

(B) in whose application a person described by Subdivision (1),

(2), (3), (4), (5), (6), (7), or (8) is required to be named.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.208. DISTRIBUTOR'S LICENSE APPLICATION. (a) An

applicant for a distributor's license must file with the

commission an executed verified application on a form prescribed

by the commission.

(b) The application must include:

(1) the full name and address of the applicant;

(2) the name and address of each location operated by the

distributor from which bingo supplies or equipment are

distributed or at which bingo supplies or equipment are stored;

(3) if a noncorporate distributor, the name and home address of

each owner;

(4) if a corporate distributor, the name and home address of

each officer or director and of each person owning more than 10

percent of a class of stock in the corporation;

(5) if a foreign corporation or other foreign legal entity, the

name, business name and address, and address of its registered

agent for service in this state;

(6) a full description of the type of bingo supply or equipment

that the applicant intends to store or distribute in this state

and the name of the manufacturer of each item and the brand name,

if any, under which the item will be sold or marketed;

(7) the name and address of a manufacturer, supplier, or

distributor in which the applicant has a financial interest and

the details of that financial interest, including an indebtedness

between the applicant and the manufacturer, supplier, or

distributor of $5,000 or more;

(8) information regarding whether the applicant or a person

required to be named in the application has been convicted in

this state or another state of a felony, criminal fraud, a

gambling or gambling-related offense, or a crime of moral

turpitude;

(9) information regarding whether the applicant or a person

required to be named in the application is an owner, officer,

director, shareholder, agent, or employee of a licensed

commercial lessor or conducts, promotes, administers, or assists

in conducting, promoting, or administering bingo for which a

license is required under this chapter;

(10) information regarding whether the applicant or a person

required to be named in the application is a public officer or

public employee in this state;

(11) the name of each state in which the applicant is or has

been licensed to manufacture, distribute, or supply bingo

equipment or supplies, each license number, the period of time

licensed under each license, and whether a license was revoked,

suspended, withdrawn, canceled, or surrendered and, if so, the

reasons for the action taken;

(12) information regarding whether the applicant or a person

required to be named in the application is or has been a

professional gambler or gambling promoter;

(13) the name and address of each manufacturer, supplier, or

distributor of bingo equipment or supplies in which the applicant

or a person required to be named in the application is an owner,

officer, shareholder, director, agent, or employee; and

(14) any other information the commission requests.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

636, Sec. 16, eff. October 1, 2009.

Sec. 2001.209. DISTRIBUTOR'S LICENSE FEE. (a) The annual

distributor's license fee is $1,000.

(b) In addition to the annual license fee, the commission may

require an additional fee in an amount necessary to defray the

cost of a background investigation of the applicant, including

the inspection of storage, distribution, or operating locations.

The commission by rule may establish the conditions and procedure

for payment of the additional fee.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.210. GENERAL PROVISIONS. A license issued under this

subchapter is subject to the restrictions under this subchapter.

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.

Sec. 2001.211. AMENDMENT OF APPLICATION. (a) An applicant for

a manufacturer's or distributor's license shall, during pendency

of the application, notify the commission immediately of any

change relating to a fact stated in the application.

(b) If a change occurs after issuance of a manufacturer's or

distributor's license, the license holder shall report the change

to the commission not later than the 14th day after the date of

the change.

license holder shall notify the commission of a change in:

(1) the license holder's organization, structure, or mode of

operation;

(2) the identity of persons named or required to be named in the

application and the nature or extent of those persons' interest;

(3) any other facts stated in the application.

(d) Failure to give a notice required under this section is

cause for:

(1) denial, suspension, or revocation of