bill moving charitable bingo from the Texas Lottery Commission

The text as introduced · 2,242 words

89R15265 BEE-D

By: Middleton, Hall
S.B. No. 1721

A BILL TO BE ENTITLED

AN ACT

relating to the transfer of the licensing and regulation of

charitable bingo to the Texas Commission of Licensing and

Regulation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 411.093(a), Government Code, is amended

to read as follows:

(a) The Texas Department of Licensing and Regulation is

entitled to obtain criminal history record information as provided

by Subsection (b) that relates to:

(1) an applicant for or the holder of:

(A) a driver education instructor license under

Chapter 1001, Education Code;

(B) a license under Chapter 202, Occupations

Code;

(C) a license under Chapter 401, Occupations

Code;

(D) a license under Chapter 402, Occupations

Code; [ or ]

(E) a license under Chapter 2001, Occupations

Code; or

(F) an instructor license or motorcycle school

license under Chapter 662, Transportation Code;

(2) a person who is:

(A) an applicant for or the holder of a license

under Chapter 91, Labor Code; or

(B) a controlling person, as defined by Chapter

91, Labor Code, of an entity described by Paragraph (A); or

(3) a person who:

(A) is an applicant for or the holder of a license

under Chapter 455, Occupations Code; or

(B) has an interest described under Section

455.1525(e), Occupations Code, in an entity described by Paragraph

(A).

SECTION 2. Section 411.108(a-2), Government Code, is

amended to read as follows:

(a-2) Subject to Sections 411.087, 466.201, and 467.036(b)

[ of this code and Section 2001.3025, Occupations Code, ] and

consistent with the public policy of this state, the Texas Lottery

Commission is entitled to:

(1) obtain through the Federal Bureau of Investigation

criminal history record information maintained or indexed by that

bureau that pertains to a person described by Subsection (a) [ or

(a-1) ]; and

(2) obtain from the department or any other criminal

justice agency in this state criminal history record information

maintained by the department or that criminal justice agency that

relates to a person described by Subsection (a) [ or (a-1) ].

SECTION 3. Sections 466.002(2) and (3), Government Code,

are amended to read as follows:

(2) "Director" means the lottery director [ of the

division ].

(3) "Division" means the commission or a lottery

division established by the commission [ under Chapter 467 ].

SECTION 4. Section 467.002, Government Code, is amended to

read as follows:

Sec. 467.002. APPLICATION OF SUNSET ACT. The commission is

subject to review under Chapter 325 (Texas Sunset Act). Unless

continued in existence as provided by that chapter, the commission

is abolished and this chapter and [ , ] Chapter 466 [ of this code, and

Chapter 2001, Occupations Code, ] expire September 1, 2025.

SECTION 5. Sections 467.024(a) and (c), Government Code,

are amended to read as follows:

(a) An individual is not eligible to be an appointed member

of the commission if the individual:

(1) is registered, certified, or licensed by a

regulatory agency in the field of [ bingo or ] lottery;

(2) owns or controls, directly or indirectly, more

than a 10 percent interest in a business entity or other

organization regulated by the commission or receiving funds from

the commission;

(3) is employed by or participates in the management

of a business entity or other organization regulated by or

receiving funds from the commission;

(4) uses or receives a substantial amount of tangible

goods, services, or funds from the commission, other than

compensation or reimbursement authorized by law for commission

membership, attendance, or expenses;

(5) is an officer, employee, or paid consultant of a

Texas trade association in the field of [ bingo or ] lottery;

(6) is required to register as a lobbyist under

Chapter 305 because of the person's activities for compensation on

behalf of a profession related to the operation of the commission;

(7) is married to an individual described by

Subdivisions (2)-(6);

(8) has been convicted of a felony or of any crime

involving moral turpitude; or

(9) is not a citizen of the United States.

(c) A person may not be a commission employee employed in a

"bona fide executive, administrative, or professional capacity,"

as that phrase is used for purposes of establishing an exemption to

the overtime provisions of the federal Fair Labor Standards Act of

1938 (29 U.S.C. Section 201 et seq.), if:

(1) the person is an officer, employee, or paid

consultant of a Texas trade association in the field of [ bingo or ]

lottery; or

(2) the person's spouse is an officer, manager, or paid

consultant of a Texas trade association in the field of [ bingo or ]

lottery.

SECTION 6. Section 467.025(a), Government Code, is amended

to read as follows:

(a) A commission member may not:

(1) accept any employment or remuneration from[ :

[ (A) ] a person that has a significant financial

interest in the lottery[ ; or

[ (B) a bingo commercial lessor, bingo

distributor, or bingo manufacturer ];

(2) play any lottery [ or bingo ] game conducted in this

state;

(3) accept or be entitled to accept any part of the

winnings to be paid from a lottery [ or bingo ] game conducted in this

state;

(4) use the member's official authority to affect the

result of an election or nomination for public office; or

(5) directly or indirectly coerce, attempt to coerce,

command, or advise a person to pay, lend, or contribute anything of

value to another person for political purposes.

SECTION 7. Section 467.035(a), Government Code, is amended

to read as follows:

(a) The commission may not employ or continue to employ a

person who owns a financial interest in[ :

[ (1) a bingo commercial lessor, bingo distributor, or

bingo manufacturer; or

[ (2) ] a lottery sales agency or a lottery operator.

SECTION 8. Sections 467.101(a) and (c), Government Code,

are amended to read as follows:

(a) The commission has broad authority and shall exercise

strict control and close supervision over all activities authorized

and conducted in this state under[ :

[ (1) Chapter 2001, Occupations Code; and

[ (2) ] Chapter 466 [ of this code ].

(c) The commission also has the powers and duties granted

under[ :

[ (1) Chapter 2001, Occupations Code; and

[ (2) ] Chapter 466 [ of this code ].

SECTION 9. Section 467.111(f), Government Code, is amended

to read as follows:

(f) The commission shall prepare a report on the trends and

issues identified under Subsection (e) and make the report

available to the public. The commission shall address the

identified trends and issues, including trends and issues related

to the regulation of lottery operations under Chapter 466 [ and of

bingo under Chapter 2001, Occupations Code ].

SECTION 10. Section 572.003(b), Government Code, is amended

to read as follows:

(b) The term means:

(1) the banking commissioner of the Texas Banking

Department [ Banking Commissioner of The Banking Department of

Texas ];

(2) the administrative director of the Office of Court

Administration of the Texas Judicial System;

(3) the chief executive of the Office of Public

Utility Counsel;

(4) the executive director of the State Bar of Texas;

(5) the lottery director [ of the lottery division ] of

the Texas Lottery Commission;

(6) the deputy in charge of the department of security

in a [ the ] lottery division of the Texas Lottery Commission;

(7) the director of the bingo division of the Texas

[ Lottery ] Commission of Licensing and Regulation ; or

(8) the secretary of state.

SECTION 11. Section 2001.002, Occupations Code, is amended

by amending Subdivision (8) and adding Subdivision (8-a) to read as

follows:

(8) "Commission" means the Texas [ Lottery ] Commission

of Licensing and Regulation .

(8-a) "Department" means the Texas Department of

Licensing and Regulation.

SECTION 12. Subchapter B, Chapter 2001, Occupations Code,

is amended by adding Section 2001.0501 to read as follows:

Sec. 2001.0501. ALLOCATION OF POWERS AND DUTIES. A power

granted or duty assigned to the commission under this chapter is a

power or duty of the executive director of the department, the

director of bingo operations, the department, or the commission, as

established by commission rule.

SECTION 13. The following provisions of the Government Code

are repealed:

(1) Section 411.108(a-1);

(2) Section 467.021(c);

(3) Section 467.031; and

(4) Section 467.033.

SECTION 14. (a) On September 1, 2025:

(1) all functions and activities performed by the

Texas Lottery Commission relating to the regulation of bingo

operations under Chapter 2001, Occupations Code, immediately

before that date are transferred to the Texas Department of

Licensing and Regulation;

(2) a rule, policy, procedure, decision, or form

adopted by the Texas Lottery Commission relating to Chapter 2001,

Occupations Code, is a rule, policy, procedure, decision, or form

of the Texas Commission of Licensing and Regulation or the Texas

Department of Licensing and Regulation, as applicable, and remains

in effect until amended or replaced by that commission or

department unless the rule, policy, procedure, decision, or form

conflicts with the changes in law made by this Act;

(3) unless the context clearly indicates otherwise, a

reference to the Texas Lottery Commission in a law or

administrative rule that relates to Chapter 2001, Occupations Code,

means the Texas Commission of Licensing and Regulation or the Texas

Department of Licensing and Regulation, as applicable;

(4) a complaint, investigation, or other proceeding

before the Texas Lottery Commission that is related to Chapter

2001, Occupations Code, is transferred without change in status to

the Texas Department of Licensing and Regulation, and the Texas

Department of Licensing and Regulation assumes, as appropriate and

without a change in status, the position of the Texas Lottery

Commission in an action or proceeding to which the Texas Lottery

Commission is a party;

(5) a license, permit, certification, or registration

in effect that was issued by the Texas Lottery Commission under

Chapter 2001, Occupations Code, is continued in effect as a

license, permit, certification, or registration of the Texas

Department of Licensing and Regulation;

(6) all money, contracts, leases, property, and

obligations of the Texas Lottery Commission relating to Chapter

2001, Occupations Code, are transferred to the Texas Department of

Licensing and Regulation; and

(7) the unexpended and unobligated balance of any

money appropriated by the legislature for the Texas Lottery

Commission related to Chapter 2001, Occupations Code, is

transferred to the Texas Department of Licensing and Regulation.

(b) On September 1, 2025, all full-time equivalent employee

positions at the Texas Lottery Commission that primarily concern

the administration, auditing, accounting, enforcement, or other

direct and indirect support of Chapter 2001, Occupations Code,

become positions at the Texas Department of Licensing and

Regulation. When filling the positions, the Texas Department of

Licensing and Regulation shall give first consideration to an

applicant who, as of August 31, 2025, was an employee at the Texas

Lottery Commission primarily involved in administering or

enforcing Chapter 2001, Occupations Code.

(c) Not later than June 1, 2025, the Texas Lottery

Commission shall grant the Texas Department of Licensing and

Regulation inquiry-only security access to:

(1) all licensing, enforcement, and examination

software or computer systems used by the Texas Lottery Commission

in administering or enforcing Chapter 2001, Occupations Code; and

(2) the uniform statewide accounting system, the state

property accounting system, the uniform statewide payroll system,

and the human resources information system for the Texas Lottery

Commission.

(d) Before September 1, 2025, the Texas Lottery Commission

may agree with the Texas Department of Licensing and Regulation to

transfer any property of the Texas Lottery Commission to the Texas

Department of Licensing and Regulation to implement the transfers

required by this Act.

(e) The Texas Department of Licensing and Regulation and the

Texas Lottery Commission shall coordinate implementation of this

section. The Texas Lottery Commission shall cooperate with the

Texas Department of Licensing and Regulation in transferring all

data and records necessary to implement the transfers required by

this Act.

(f) Before July 15, 2025, the Texas Lottery Commission and

the Texas Department of Licensing and Regulation shall develop and

enter into a memorandum of understanding regarding the transfers

required by this Act. The memorandum must include a transition

plan with a timetable and specific steps and deadlines required to

complete the transfer.

(g) Not later than December 1, 2025, a manufacturer of bingo

equipment or supplies that submitted to the Texas Lottery

Commission a bond as required under Section 2001.204, Occupations

Code, before September 1, 2025, that is in effect on the effective

date of this Act must amend the bond to name the Texas Department of

Licensing and Regulation as the payee for the bond.

SECTION 15. The changes in law made by this Act to Chapter

2001, Occupations Code, apply only to a tax or fee charged on or

after September 1, 2025. A tax or fee charged before September 1,

2025, is governed by the law in effect immediately before that date,

and the former law is continued in effect for that purpose.

SECTION 16. Not later than March 1, 2026, the Texas

Commission of Licensing and Regulation shall adopt the rules

necessary to implement the changes in law made by this Act.

SECTION 17. 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, 2025.