SB2218 - Relating to regulating charitable bingo and authorizing the establishment of a nonprofit corporation to advertise and promote charitable bingo.

  89R6128 PRL-F     By: Zaffirini S.B. No. 2218       A BILL TO BE ENTITLED   AN ACT   relating to regulating charitable bingo and authorizing the   establishment of a nonprofit corporation to advertise and promote   charitable bingo.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2001.407, Occupations Code, is amended   by amending Subsection (c) and adding Subsections (c-1), (c-2), and   (c-3) to read as follows:          (c)   Except as provided by Subsection (c-1), a  [ A ] licensed   distributor may not receive by purchase or otherwise bingo   equipment or supplies from a person other than a licensed   manufacturer or another licensed distributor.           (c-1)     A licensed distributor may receive bingo equipment or   supplies from a licensed authorized organization if:                 (1)     the distributor delivered the equipment or   supplies to the organization; and                 (2)  the equipment or supplies were:                       (A)  defective;                       (B)  not ordered by the organization; or                       (C)     delivered in a quantity that exceeds the   quantity the organization ordered.           (c-2)     A licensed authorized organization that returns bingo   equipment or supplies to the licensed distributor as provided by   Subsection (c-1) shall:                 (1)     maintain a record specifying for each returned   equipment or supply:                       (A)     a reason for the return from the reasons   listed in Subsection (c-1)(2); and                       (B)  the quantity returned; and                 (2)  provide a copy of the record to the distributor.           (c-3)     A licensed distributor that receives returned   equipment or supplies from a licensed authorized organization as   provided by Subsection (c-1) shall:                 (1)     maintain a record showing receipt of the returned   equipment or supplies; and                 (2)  provide a copy of the record to the organization.          SECTION 2.  Section 2001.415, Occupations Code, is amended   to read as follows:          Sec. 2001.415.  ADVERTISEMENTS. (a)  A person other than a   licensed authorized organization, licensed commercial lessor,   nonprofit corporation formed under Section 2001.4151, or the   commission may not advertise bingo.          (b)  A licensed authorized organization, licensed commercial   lessor, nonprofit corporation formed under Section 2001.4151, or   the commission may include in an advertisement or promotion :                 (1)     the total amount of bingo prizes offered   statewide; or                 (2)   the amount of a prize or series of prizes offered   at a bingo occasion.          SECTION 3.  Subchapter I, Chapter 2001, Occupations Code, is   amended by adding Section 2001.4151 to read as follows:           Sec.   2001.4151.     ESTABLISHMENT OF NONPROFIT CORPORATION.   (a)   A statewide organization in existence before January 1, 2024,   that as of that date has as its principal purpose assisting licensed   authorized organizations, units as defined by Subchapter I-1,   licensed commercial lessors, and licensed bingo distributors and   licensed bingo manufacturers in furthering the interests of   charitable bingo may form a nonprofit corporation governed by   Chapter 22, Business Organizations Code, to carry out the purposes   described in this section. For purposes of this subsection, an   organization is a statewide organization if the organization's   membership includes multiple licensed authorized organizations   that collectively have primary business offices in at least 15   counties in this state.           (b)     A nonprofit corporation formed under this section may   accept money remitted to the corporation by a licensed authorized   organization under Section 2001.502(b-1).           (c)     Subject to Subsection (d), a nonprofit corporation   formed under this section may spend money accepted under Subsection   (b) for purposes that include:                 (1)     advertising and promotional activities to inform   the public about charitable bingo, including:                       (A)     the purposes for which charitable bingo is   conducted;                       (B)     the types of charities benefiting from   charitable bingo;                       (C)     the locations where and times when charitable   bingo is conducted;                       (D)     the types of games conducted at charitable   bingo locations; and                       (E)     the amount of a prize or series of prizes that   may be offered at a bingo occasion;                 (2)  legal and accounting services;                 (3)  labor;                 (4)  utilities;                 (5)  office space; and                 (6)     other necessary expenses related to the purposes   of this section.           (d)  A nonprofit corporation formed under this section:                 (1)     may only spend money under this section in   accordance with the plan adopted by the board of the corporation   under Subsection (e); and                 (2)     may not spend any money until the date the   corporation provides the notice required by Subsection (j).           (e)     At least annually, the board of a nonprofit corporation   formed under this section shall adopt a plan for the corporation to   spend money.           (f)     A nonprofit corporation established under this section   is exempt from taxation under:                 (1)  Chapter 151, Tax Code; and                 (2)  Chapter 171, Tax Code.           (g)     A nonprofit corporation formed under this section may   not use money accepted under Subsection (b) to make:                 (1)     a campaign contribution, as defined by Section   251.001, Election Code;                 (2)     a direct campaign expenditure, as defined by   Section 251.001, Election Code;                 (3)     a political expenditure, as defined by Section   251.001, Election Code;                 (4)     an expenditure for political advertising, as   defined by Section 251.001, Election Code; or                 (5)     an expenditure to influence legislative subject   matter or administrative action as described in Chapter 305,   Government Code, including:                       (A)     to compensate or reimburse a person required   to register under Section 305.003, Government Code; or                       (B)     for legislative advertising, as defined by   Section 305.027, Government Code.           (h)     Nothing in this section prohibits a nonprofit   corporation formed under this section from accepting and spending   money from sources other than bingo prize fees.           (i)     A nonprofit corporation formed under this section shall   maintain books and records as required by state and federal law.           (j)     A nonprofit corporation formed under this section   commences business on the date the corporation's board adopts an   initial annual plan under Subsection (e). On that date, the   corporation shall provide notification of the corporation's   commencement of business to:                 (1)  the commission; and                 (2)     each licensed authorized organization that   remitted money to a county or municipality under Section   2001.502(b) in 2023.           (k)     A nonprofit corporation formed under this section may   not be licensed:                 (1)  to conduct bingo; or                 (2)     as a commercial lessor, bingo distributor, or   bingo manufacturer.          SECTION 4.  Section 2001.451(h), Occupations Code, is   amended to read as follows:          (h)  Except as provided by Subsection (j), a licensed   authorized organization or a unit of licensed authorized   organizations may retain operating capital in the organization's or   unit's bingo account in an amount that:                (1)  is equal to the organization's or unit's actual   average bingo expenses per quarter based on the preceding license   period, excluding prizes paid; and                (2)  does not exceed a total of $75,000 [ $50,000 ] for a   single organization or $75,000 [ $50,000 ] for each member of a unit   unless:                      (A)  the commission by rule establishes a higher   amount for all organizations or units or one or more classes of   organizations or units; or                      (B)  the bingo operations director, on request,   raises the operating capital limit for one organization or unit as   necessary to facilitate the operation of the organization or unit.          SECTION 5.  Section 2001.502, Occupations Code, is amended   by amending Subsections (a) and (b) and adding Subsection (b-1) to   read as follows:          (a)  A licensed authorized organization or unit as defined by   Section 2001.431 shall:                (1)  collect from a person who wins a cash bingo prize   of more than $100 [ $5 ] a fee in the amount of five percent of the   amount of the prize; and                (2)  except as otherwise provided by this section,   remit to the commission the amount of the fee collected under   S [Text truncated for display. 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