Loading...
HomeMy WebLinkAbout1981 ~ r cS i3 .:1 t , t7 ,q!{~~~'7EP~H yM~dt++~4^sarln+~lu~.r~~tir , Y a, i 'n ~ i' 1 17, BINGO ENABLING ACT I 4 3 6 19 m O 20 22 41 OCTOBER 1981 BOB BULLOCK TEXAS COMPTROLLER OF PUBLIC ACCOUNTS -T- tJ~. (.K 7111 [1~IY I~~C1' 111 I ll~l~li' /1C/`<II111~N V I l /~uKlin,~~e•anrc 78774 ~t2t7s Imlt I. Il .I Sim, l1ff. It,.J,# ,,1• December 16, 1981 The Honorable Richard 0. Stewart Mayor City of Denton 215 East McKinney Street Denton, Texas 76201 Dear Mayor Stewart; Several provisions of Texas' new Bingo Enabling Law will require close coordination between the Comptroller's office and local governing bodies ntw that the new law is in effect. I am enclosing a copy of the new law for your information acid I would like to call your attention to a couph of provisions which will have immediate bearing in many areas. January 16 is the earliest datj a local option bingo election can be held. (This is set out in the election code; the next available date will be April 3). If a local election is successful, the governing body of the area has 10 days from the date of election to notify this office in writing of the date and results and furnish us with a neap of the boundaries of the area in which bingo has been legalized. January 26, therefore, becomes the first date on which a legal bingo game could be conducted--provided the operator or promoter of the game holds a license from the Comptroller's office. It is a third degree felony to conduct, promote or administer A game without a license. Under Section 3 of the new law, the commissioners court or city council may impose a two percent gross receipts tax an games within its jurisdiction anytime after bingo has been legalized by local election. Again, this office must have official notification that the tax has been imposed, along with the effective date. We look forward to working with you. If you need additional information please give our Bingo Regulation Division a call at 1-800-252-5555, extension 169 Si e1y, I !jl tr B0B ULLOCK 0 . 1'~t11 `v Comptroller of Public Accounts BB/ss CIIY 5 OFFICE ~ Enclosure L Coll C OM1''I'ltO1.1,1 11 O 1'1.1131.10 A(X'.OLJN"I'S y r, STSIT ()I-'I'I?XAS tv 5 444 All S"I'IN,7H774 00! MIOCK coinphaw Dear Taxpayer, The Texas Bingo Enabling Act allows qualified organizations to operate legal bingo games to raise money for charitable, educational, rellgious and civic causes. The law also provides for a local tax on the proceeds of these bingo games These taxes are collected by the Comptroller and returned to communities where local voters have legalized bingo and local governments have decided to levy the tax. If you have further questions about the Texas Bingo Enabling Act, please contact your local Comp!roller's office or call the Bingo Regulation Division at 1-800-252- 5555. It's a free call from anywhere In Texas. Sincerely, 66Q BOB BULLOCK Comptroller of Public Accounts TABLE OF CONTENTS BINGO TAX Sec, 1. SHORT TITLE . 1 Sec 2. DEFINITIONS . 1 Sec. 3. AUTHORIZATION GROSS RECEIPTS TAX . . . . 3 Sec. 4. ORDERING ELECTION . . . . . . . . 3 Sec. 5. PETITION 3 Sec 6 VERIFICATION OF PETITION 4 Sec 7. DATE CF ELECTION 4 Sec 8 BALLOT PROPOSITION 4 Sec 9 EFFECT OF ELECTION 4 Sec 10 DETERMINATION OF LOCAL OPI.ON STATUS . , . , , , , . . 5 Sec I I RESTRICTIONS ON BINGO GAMES 5 Sec 12 APPLICATIONS FOR LICENSE 6 Sec 13 INVESTIGATION, MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE, FEES; C UR ATION OF LICENSE Sec 14 HEARING; AMENDMENT OF LICENSE . . 8 Sec 15, FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE 8 Sec 16 CONTROL AND SUPERVISION; SUSPENSION OF LICENSES; INSPECTION OF PF EMISES 9 Sec 11. PARTICIPATION BY PERSONS UNDER 18 9 Sec 18 FREQUENCY AND TIMES OF GAMES 9 Sec. 19. PERSONS OPERATING AND CONDUCTING GAMES; EQUIPMENT; EXPENSES; COM PEN SATION 9 Sec 20 REPORTING AND DUE DATE OF TAXES 10 Sec. 21. $2,500 EXEMPTION 10 Sec. 22. COMPUTATION OF TAX 10 Sec. 23 REPORT OF RECEIPTS; EXPENSES.. , . . . 10 Sec. 24. ADMINISTRATION, COLLECTION, ENFORCEMENT AND OPERATION OF THE TAX 10 Sec. 25. DELIVERY OF RETURN; REMITTANCE . . . . . t0 Sec. 28. TRANSMITTALS, REFUNDS AND COLLECT IONS .......................................10 Sec. 27. EXAMINATION OF RECORDS; DISCLOSURE OF INFORMATION 11 Sec. 28. INFORMATION AVAILABLE FOR PUBLIC INSPECTION 11 Sec. 29. PENALTIES FOR FAILURE TO PAY OR REPORT 12 Sec. 30. RECOMPUTATIONOr TAX 12 See. 31. DETERMINATION IF NO RETURN MADE 12 Sec. 32. JEOPARDY DETERMINATION 12 Sec. 33, APPLICATION OF TAX LAWS 12 Sec. 34. A PFEALS ON DENIAL OF LICENSE . . . 12 Sec. 35. EXEMPTION FROM PROSECUTION 13 Sec. 36 OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY FOR LICENSE 13 Sec. 37. SEIZURE AND SALE 13 Sec, 38 BOND3 OR SECURITIES . . 14 Sec. 39. UNLAWFUL BINGO GAME 15 Sea 40 FRAUDULENT AWARD OF PRIZES 15 Sec 41. APPLICATION OF PENAL CODE 15 Sec. 4?. CIViLREMEDIESAND PENALTIES 15 Sec. 43 GAMBLING 16 Sec 44. BINGO 16 %U 18361986 STATUTBS•BINGO TAX BINGO ENABLING ACT Sec. 1. Short Title. This Act may be cited as the Bingo Enabling Act. Sec. 2. Definitions. In this Act. (1) "Governing body" means the commissloners court with regard to a county or justice precinct or the city council or other cWaf legislative body with regard to an incorporated city or town. t2) "Bingo" or "game" means a specific game of chance, commonly known as bingo or lotto, in which prizes are awarded on tho basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random, (3) "Nonprofit organization'' means an unincorporated association or society or a corporation that is Incorporated or holds a certificate of authority under the Texas Non-Profit Corporation Act, as amendod (Article 1396.1.01 et seq , Vernon's Texas Civil Statutes), that. (A) does not distribute any of its income to its members, officers, or governing body, other than as reasonable compensation for services (B) for at least three years (I) has had a governing body or officers oloctedbyevoteofinembersor by a vole of delegates elocted by the members; x (II) has boon off iliatedwith astale or national orpanizationorganized to perform the same purposer; and (C) has obtained a 501(c) exemption from the Internal Revenue Service. (q) " Frats•nal organization" means a nonprofit organization that Is organized to perform and engages primarily In performing charitable, benevolent, patriotic, employment-related, or educational functions and that. (A) has boon organized for at least three years; (B) has not authorized any person on behalf of Its membership, governing body, or officers to support or oppose a particular candidate for public office by making political speeches, passing out cards or other political literature, writing letters, signing or circulating petitions, making campaign contributions, or sollciling votes; and (C) Is not a veterans organizalWn, (5) "Religious society" means a churO, synagogue, or other ofganizatlon or association that Is organized primarily for religious purposes and that hps been In existence for at least 10 years. (6) "Veterans organization" means a nonprofit organization whose members are veterans or dependents of veterans of the irmod services of the United Slates and 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. (7) "Per;<on" means an Individual, partnership, corporation, or other group, howe%er organized. (S) "Volunteer fire department" means an association that; (A) operates fire-fighting equipment; (8) is organized primarily to provide and actively provides lire-fighting services; and (C) does not pay Its members compensation othe/ than nominal compensation. 1 STATUTES*BINQO TAX (9) "Charitable purposes" means one or more of the following causes, deeds, or activities to which the net proceeds derived from the playing of bingo are dedicatod (A) those that benefit needy or deserving persons In this slate, indofinite In number, by enhancing their opportunity for religious or riducatlonal advancement, by relieving them from disease, suffering, or distros-ii, or by contributing to their physical well-being, by assisting them In establishing themselves In life as worthy and useful :itfzens, or by Increasing their comprehension of and devotion to the principles on which this nation was founded and enhancing their loyalty to their government; (B) those that Initiate, perform, or foster wortny public works In this slate or enable or further the erection or maintenance of public structures in this state; (10) "Not proceeds" means: (A) In relation to the gross rryceipls from one or more occasions of bingo, tho amount that remain; jiftor deducting the reasonable sums necessarily and actually exponde,1 for ad,,ortising, security, repairs to premises and equipment, bingo supplies and equipment, prizes, stated rental, or mortgage and Insurance expenses, If any, bookkeeping or accounting services according to a schedule of compensation authorized by the governing body, fees for personnel as permitted by this Act, food, beverages, Janitorial services and utility supplies and sorvlcas, if any, license fees, gross receipts tax, and the cost of bus transportation, If authorized by ;he governing body; and (8) in relation to the gross rent received by an organizatlon licensed to conduct bingo for the use of its premises by another ficensee, the amount that remains after deducting the reasonable sums necessarily and actually expended for Janitorial services and utility supplies directly attributable to the use of the premises, If any. (11) "Authorized organization" means a religious society, a nonprofit organization (other than an organization whose membership is predominantly veterans or their dependents organized to advance the Interests of votctans, actlve duty personnel, of their dependents) whose predominant activities are for the support of medical research or treatment programs, a fraternal or veterans organization, or a volunteer fire department. (12) "Authorized commercial lessor" means a person, other than a licensee permitted to conduct bingo under this Act, who owns or is a lessee of premises that he offers for leasing to an authorized organization for the purpose of conducting bingo. The term does not Include; (A) a person convicted of a felony, criminal fraud, or a crime of moral turpllude; (B) a public officer who rece'ves any consideration, direct or Indirect, as owner or lessor of premises offered for the purpose of conducting bingo; or (C) a firm orcorporation in which a person covered by Paragraph (A) or (B) of this subdivision or a person married or related In the first degree to such a person has grealor than a 10 percent proprietary, equitable, or credit Interest or in which such a person is active or employed. This subdivision does not prevent any firm or corporation that Is not organized for pecuniary profit and no part of the net earnings of which 2 STATUTB6•BINGO. TAX Inure to the benefit of any Individual, member, or shareholder, from being an authorized commercial lessor solely because a public officer or a person married or related in the first degree to a public officer is a member of, active In, or employed by IN firm or corporation. (13) "Gross receipts" moans the total amuunt received from the sale, rental, transfer, or use of bingo cards, the sale of food and beverages, and entrance foes charged at locations In which bingo Is conducted, (14) "Municipal secretary' means the officer of a municipality who performs the duties of city secretary, regardless of the officer's title. (15) "Municipality" means an incorporated city or town. (16) "Political subdivision" roans a county, justice precinct, or municipality. Sec. 3. Authorizatlon for Gross Receipts Tax. (a) The commissioners court of a county that has voted to legalize bingo or in which a justice precinct has voted to legalize bingo by order may Impose a two percentgross receipts tax on the conduct of bingo games within the county. (b) The governing body of a municipality that has voted to legalize bingo by ordinance may impose a two percent gross receipts tax on the conduct of bingo games within the municipality, (c) Arty municipality within which one or more justice precincts have voted to legalize bingo and which municipality has not voted to prohibit bingo may Impose a two percent gross receipts tax on the conduct of bingo games within the munlrlpality. (d) Any gross recelpts otherwise subject to tax by a county are exempt from the municipal tax if a tax has been imposed on the pros receipts by a county, Sec. 4. Ordering Election. (a) The governing body of a county, justice precinct, or rr unicipality shall order and hold an election under 10s. Act in the appropriate political subdivisia;i If the governing body Is prnsrmt.,d with a petition for an election that IneFAs the requirements of this Act. (b) The governing body of a political -aubo,%9sion rray not order an election under this Act for a political subdivision earlib. Ivan two years after another election on the same ballot proposition was held for the same political subdivision. If a petition for an election is submitted and it is not poc.31ble to order nn election under this Act as requested by the petition without violatins this subsection, the petition has no ieg3l effect. Sec. S. Petition. (a) A petition for a legalization election must have it statement substantially as follows preceding the space reserved for signatures on -lach page; "This petition Is to require that an election be held In (name of Folltlcai subdivision) to legalize bingo games authorized under the Bingo Enabling Act." A petition for a prohibitorv election must have a statement substantially as follows preceding the spate reserved for signatures on e6oh page; "This petition Is to require that art election be held in (name of political subdivision) to prohibit bingo games authorized under the Bingo Enabling Act." (b) A petition is valid gn',t If It Is signed by regis!ered, qualified voters of the political subdivlslon In a number e0 ual to or greater than 10 percent of the number of votes cast for governor by quallfhod voters of the political subdivision In the most recent general election at which that office was filled, or the amount specified In the 3 Gears STATUTES-69INQO TAX document yuverniog the administration of the political subdivision, whichbver is less. If boundaries of the political subdivision do not coincide exactly with boundaries of election precincts In effect for the election, the officer verifying the petilicn may use any reasonable method t) estimate the number of votes for governor cast by qualified voters W the political subdivision, (o) Each signer must enter bosldo his signature the date Pgns the petition. A signature may not be counted if the signor fails to do so or it the date of signing is earlier than the 90th day before the date the petition is submitted to the governing body. (d) In addition to the signature and date of each qualified voter, the following Information must also be provided; current voter registration number, printed name, and residence address including zip code. Sec. S. Verification of Petition, (a) Not later than the fifth day after the date a petition for election Is received ir; the olfice of the governing body, the governing body shall submit the petition for verification to the county clerk It the petition Is applicable to a county or justice precinct or to the municipal secretary if the petition Is applicable to a municipality. (b) The olficer to whom the potihc:i is submitted for verification shall determine whether the petition is signed by the required number of registered voters of the political subdivision for which the election Is requested Not later than the 301h day after tha date the petition Is submitted to the officer for verification, the officer shall cattily In writing to the governing body whether the petition is valid or Invalid. tf the officer determines that the petition Is Invalid, he shall stale all reasons for that determination. Sec. 1. Date of Election. (a) If the ufllcer responsible for certifying a petition certifies that a petition IsvaUd, the governing body shall order that an election be hod to the appropriate political dubdivislon on a date not later than the 60th day after the date of the officer's certification. (b) If no uniform election day As specified In Section 9b, Texas Election Code (Article 2.01 b, Vernon's Texas Efeet on Code), occurs within the 60-dayperiod, the election shall be held on the next date specified within that section. Sec. S. Ballot Proposition. (a) In an election to legalize bingo games covered by this Act in a political subdivision, the ballot shall be prepared to provide for voting for or against the proposition: "Legalizing bingo games for charitable purposes as authorized by the Bingo Enabling Act In (name of political subdivision)." (b) In an election to prohibit bingo games covered by this Act in a political subdivision, the ballot shall be prepared to provide for voting for or against the proposition "Prohibiting bingo games for charitable purposes as authorized by the bingo Enabling Act In (name of politiclal subdivision)." Sec. 9. Effect of Election. (a) In a legalization election, if a majority of the qualified voters voting on the question vote In favor of legalization, the holding of bingo games as authorizod by this Act Is legalized throughout the political subdivision effective the 10th day after the dale the result of the election Is officially declared, except that the legalization does not STATUTESMNQO TAX apply to any part of tho politIce I subdivislon for which Section 10ol this Act requires a contrary status. (b) In a prohibitory election, if a majority of the qualif led voters voting on She question vote In favor of prohibition, the holding of bingo games as authorized by this Act is prohibited throughout the political subdivision effective the 10th day after the date the result of the election Is ollicially declared, except that the prohibition does not :.pply to any earl of the political subdivision for which Section 10of this Act requires a contrary status. (c) if a majority of the qualified voters voting on the question In a legalization election do not favor legalization, or its majority of thequalified votersvoting on the question in a prohibitory election do not favor prohibition, the elections has no effect on the i status under this Act of the political subdivision in which the election is held. (d) 11 a majority of the qualified voters vote to legalize bingo in the political subdivision, the governing body of the political subdivision shalt within 10 days of the election notify in writing the comptroller of public accounts and the attorney general of the date and results of the election and shall furnish with the notico a map prepared by the governing body Indicating the boundaries of the political subdivision in which the playing of bingo may be conducted. Sec. 10. Determination of Local Option Status, (a) I n cletermin Ing whether bingo games authorized by this Act are permMed in an area, the rules prescribed by this section apply. (b) The games are permitted In an area only as the result of a successful legalization election held under this Act. (c) To the extent that the results of local option elections hold by Offerent types of political subdivisions conflict with regard to the same territory, the relative dates of the elections are of no consequence and the following rules apply; (1) the status of an area as determined by a municipal election prevails over a contrary status as determined by a justice precinct or county election; and (2) the status of an area as determined by a justice precinct election prevails over the status of an area as determined by a county election. (d) Tu the extent that two or more loce I option elections hold at thejustIce precinct level apply to the same territory, the most recent election prevails. (e) If a municipality has established a status under this Act by a municipal election, territory annexed to the municipality after that status Is estatllshed assumes the status under this Act of the rest of the municipality. Territory detached from such a municipality assumes the status the territory would have had if it had never been a part of the municipality. It the detached territory Is added to another municipality that has established a status by a municipal election, the territory assumes the status of the municipality to which It Is added. (f) The addition of territory to or detachment of territory from a justice precinct does not affect the status under this Act of the added or detached territory. The abotillon of a justice precinct does not affect the status under this Act of the territory formerly within the justice precinct. Sec, 11. Restrictions on Bingo Games. (a) The conduct of bingo games authorized under this Act is subject to the restrictions prescribed by this section regardless of whether the restrictions are contained In a local ordinance, (b) A person, other than a licensee under thle Act, may not lease or othenorise make 5 8TATUTBB*BINQ4 TAX available for conducting bingo a hall or other premises for anyconsideratloll, direct or indirect. (c) A bingo game may not be conducted on or within any leased promises If rental unciv the lease Is to be paid, in whole or part, on the basis of a percentage of the receipts or net proceeds derived from the operation of the game. (d) The net proceeds of any game of bingo and of any rental of promises for bingo shall be exclusively devoted to the charitable purposes of the organlzation permitted to conduct the game, The proceeds of any game of bingo or of any rental may not be used to support or opposo a particular candidate or a slate of candidates for public office or In favor of or in opposition to any measure submitted to a vote of the people. (o) A prize may not exceed the sum or vaiue of $500 In any ample game of bingo. (f) A series of prizes on any one bingo occasion may not aggregate more than $2,500. (g) A person other than a member of a licensed authorized organization may not conduct, promote, or administer a bingo game. (h) A person may not be denied admission to a game or the opportunltyto participate in a game because of race, color, crood, religion, national origin, sex, or handicap. (i) Bingo games may not be conducted at more than one locationonpropertyownedor leased by a licensed authorized organization. Sec, 12, Application for license. (a) To conduct bingo, an applicant for a license must file with the comptrollf r of public accounts a written application in a form prescribed by the compfrolter, duly executed and verified. which must Include: (1) The name and address of the applicant and suffic(ent facts relating to its Incorporation and organization to enable the comptroller of public accounts to determine whether it is an authorized organization; (2) the names and addresses of its officers and the place where and the time when the applicant intends to conduct bingo under the license applied for; (3) in case the applicant in fends to lease premises for this purpose from other than an authorized organization, the name and address of the licensed commercial lessor of such premises, and the capacity or potential capacity for public assembly purposes of space In any premises presently owned or occupied by the applicant; (4) the amount of rent to be paid or other consideration to be given directly or indirectly for each occasion for use of the premises of another authorized organization licensed under this Act to conduct bingo or for use of the premises of a licensed commercial lessor; (5) all other items of expense Intended to be Incurred or paid In connection with the conducting, promoting, and administering of games of bingo and the narnas and addresses of the persons to whom, and the purposes for which, they are to be paid; (6) the specific purposes to which the not proceeds of the games are lobe devoted and In what manner and a statement that the net proceeds wiH go to one or more of the authorized charitable purposes under this Act; (7) a designation of an active member or members of the applicant organization under whom the game or games of bing4 will be conducted, accompanied by a statement executed by the member or nmembers 56 designated that he 6r they will be responsible for the conduct of bingo gamer in accordance with the terms 61 the license and this Act; and (8) a statement that a copy of the application has been sent to the ar proprlate governing body and the attorney general. 8 STATUTEMINGO TAX (b) An applicant for a license to act as an authorized commercial lessor must file with the comptroller of public accounts a verified written application on a form prescribed by the comptroller, which must Include; (1) the name and address of the applicant; (2) a designation and address of the premises intended to be covered by the license soL,ghl; (3) the lawful capacity for public assembly purposes; (4) a statement that a copy of the application has boon sent to the appropriate governing body and the attorney general; and (5) a statement that the applicant complies with the specifications prescribed by Section 2(12) of this Act. (n) At any time the comptroller of public accounts, the governing body, or the attorney general may make a written request of a commercial lessor to disclose any of the following Information: (1) the cost of the premises and appraised vatuo for properly tax purposes or annual net lease rent, whichever Is applicable; (2) gross rentals received and Itemized expenses for the immediately preceding calendar or fiscal year, if any; (3) gross rentals, if any, derived from bingo during the bast preceding calendar or fiscal year; (4) the computation by which the proposed rental schedule was determined; (5) the number of occasions on which the applicant anticipates receiving rent for bingo during the ensuing year or shorter period if applicable and proposed rent for each such occasion: (d) estimated gross rental income frcm all other sources during the ensuing year; and (7) estimated expenses itemized for the ensuing year and the smoun;of each Item allocated to bingo rentals. (d) An authorized organization may receive a temporary license for the conduct of bingo games on filing with the comptroller of public accounts an application, on a form prescribed by the comptroller, accompanied by a $5 license fee, A temporary license is valid for one week, An organization may receive no more than three temporary licenses In a calendar year, An organization operating undera temporary ,icense is not subject to the gross receipts tax authorized by this Act but is subject to the other provisions of this Act to the extent thq can be made appfable.'• (e) rk copy of each application under this Act shall be sent to the appropriate governing body and the ati,;muy general before a Ilconse Is Issued. Sec. 13. Investigation; Matters to be Determined; Issuance of Liceristr Fees; Duration of Llanse. (a) The comptroller of public accounts shall Investigate the qualifications of each applicant and the merits of each application promptly after the filing of the application. (b) The complroCer of public accounts !hall Irsuo to an ripplie aW a license for the conduct of bingo, on payment of a $50 license fee, if the comptroller determines that: (1) the member or members of the applicant deslgnalpd in the application to conduct bingo are Active members of the applic•tni 1 r STATUTIM BINGO TAX E (2) the person or persons under whose name the ganio or games of bingo wit l be conducted have never been convicted of a felony, criminal fraud, or a crime of moral turpitude; (3) the games are to be conducted In accordan;.o with this Act; (4) the proceeds of the gamas are to be disposed of as provided by this Act; and (5) no prize will be offereid or given in excess of the sum or value of $1,000 In any single game and that the aggregate of all prizes offered and given in all of the games conducted on a single occasion under the license will not exceed the sum or value of $5,000. (c) The comptroller of public accounts may not issue a license to an applicant seeking to conduct bingo on the premises of a licensed commercial Is,ssor If the comptroller determines that the premises presently ownod or occupied by the applicant are in every respect adequate and suitable for conducting bingo games. (d) The comptroller of public accounts shall Issue a license permitting a commercial lessor applicant to leas9 premises for the conduct of bingo to an authorized organization or organizations specified in tho opplication during the period therein specified or such shorter period as the comptroller determines, but not to exceed one year, on payment of a $10 license fee if the comptroller determ;rp~ that: (1) the applicant seeking to lease a hall or premises for the conduct of bingo to an authorized organization is qualified to be licensed under this Act; (2) the applicant sallsf lea the requl rements for an authorized commercial lessoralt prescribed by Section 2(12) of this Act; (3) the font to be charged Is lair and reasonable; (4) there Is no diversion of the funds of the proposed lelsoe from the lawful purposes as prescribed by this Act; and (5) the leasing of a hall or premises for the conductef bingo Isto be In accordance with this Act. (e) A license Issued under this Act may not be effective for more than one year (f) When a license is issued by the comptrolle+ otpubilo accounts, s eopyol the license shall Immediately be sent by the licensee to the appropriate governing body and the attorney general for filing In a central file Containing each license Issued under this Act, (g) A license may not be transferred by a licensee. Sec. 14. Hearing; Amendment of License. (a) An application for a license may not be den!rd by the comptroller of public accounts until a hearing Is held after due notice to the applicant, At the hearing, the applicant is entitled to be heard on the qualifications of the applicant and the merits of the aoplication, (b) Any license issued undor this Act may be amended on application to the comptroller of public accounts if the subject matter of the proposed e,mendmentcould lawfully and properly have been Included In the original license, eeo. 15. Forth and Contents of Monte; Display of License. (a) Each license to conduct bingo shall Include: (1) the name and address of the licensee and the names and addresses of the member or members of the licensee under whom tho games will be conducted; (2) an Indication of the place where and the time vvh9n the games are to be conducted; (3) the specific purposes to which the net proceeds of the games art. to be devoted; and B STATUTES:BINGO TAX (4) a statement of whether any prize Is to be offered and the amount of any authorized prize. (b) Earth license Issued for the conductof any game shall be conspicuously displayed at the place where the game is conducted at all times during the conduct of the game. (c) Each license to lease premises for conducting bingo shall contain a statement of the name and address of the licensee and the address of the premises, and each license shall be consplcuously displayed on the premises at all times during the conduct of bingo. (d) Each location must be separately licensed. Sec, 16. Control and Supervision; Suspension of Licenses; Inspection of Premises. (a) The comptroller of public accounts shall have and exercise strict control and close supervision over all games of bingo conducted under this Act to the end that the games are fairly conducted in accordance with the license and this Act (b) The comptroller may suspend or revoke any license Issued under this Act for failing to comply with this Act, (c) The comptroller and city or county peace officers may enter, through their respective officers and agents, at all times any premises where any game of bingos being conducted or where It Is intended that any game Is to be conducted or Ahere any equipment being used or Intended to be used In the conductof a game Is found, for th9 purpose of inspecting the prem!r-os. Sec. 17. Participation by Persons Under 16. (e) any Aperson Issued under this eAct unless tacplay any ame of bingo onucted compan d by his pacenlof guatrditln. license under (b) person ngo conducted under any license conduct Issued u der this Act, conduct of any game of bingo Sec.16. Frequency and Times of Games. A game of bingo may not be conducted under any 11;ense Issued under this Act more often than three days pereaiendar week, not to exceed four hours per 24-hour period. See. 19. Penons Operating and Conducting Games; Equipment; Expenses; Compensation. (a) A person may not conduct, promote, or administer any game of bingo under any license issued under this Art except an active member ul the authorized organization to which the license is Imued. A person may not assist in the conducting, promoting, or adm n!t;tering of any game of bingo under a license except such an active member or a member of an organiiation oraswelation thatis an auxiliaryto the licensee, a member of an organization or association of which the licensee is an auxiliary, or a member of an organization or associatlon that is affiliated with the licensee by being, with it, auxiliary to another organization or association, and except bookkeepers, accountants, cashiers, ushers, or callers as provided by this Act, (b) A game of bingo may not be conducted with any equipment except that owned by the licensed authorized organization or used without payment of any compensation therefor by the licensee. (c) Items of expense may not be Incurred or paid In connection with the r onduct of any game of bingo u repelrsto reasonable ndareenecessarily i,expended uforadvertsng, except security,; a premises and equipment, bingo supplies and equipment, prizes, stated rental or 9 STATUTES40INGO TAX mortgage and insurance expenses, it any, bookkeeping or accounting services, fees for personnel permitted under this Act, food, beverages, Janitorial services and utility supplies and services, If any, license fees, and the cost of bus transportation, If authorized by the comptroller of publlc accounts. (d) A person may not receive compensation for conducting, promoting, or administering a game or for assisting in conducting, promoting, or administering a game, Sec. 20. Reporting and Due Date of Taxes. The gross receipts taxes authorized to be Imposed by a political subdivision under this Act are due and payable by the licensee conducting bingo games to the comptroller of public accounts monthly on or before the 15th bay of the month succeeding each monthly reporting porlod. The report shall be filed under oath on forms prescribed by the comptroller. Sec. 21, $2,500 Exemption. The first $2.500 of gross receipts from the conduct of bingo within each reporting period is exempted from the tax authorized by this Act. Sec. 22. Computation of Tax. Each licensee required to report gross receipts taxes to the comptroller of public accounts under this Act shat I compute the taxes by multiplying the gross receipts from the conduct of bingo n ,mes by two percent, but may exclude $2,500 from the gross receipts of bingo games conducted during the reporting period. Sec. 23. Report of Receipts, Expenses. (a) Each licensee conducting bingo games shall submit quarterly to file comptroller of public accounts a report under oath containing the following Information: (1) the amount of the gross receipts derived from the games; (2) each item of expense Incurred or paid; (3) each item of expenditure made or to be made, the name and address of each person to whom each Item has been paid or is to be paid, with a detailed description of the merchandise purchased or the services rendered; (4) the net proceeds derived from the games; (5) the use to which the proceeds have been or are to be applied; and (6) a I'M of prizes offered and given, with their respective vilues. (b) Each licensee shall malntaln records to substantiate the contents of each report. (c) A ropy of each reportshalt be furnished to the appropriate governing body and the attorney general. ,Sec. 24. Administration, Collection, Enforcement, and Operation of the Tax. The comptroller of public accounts shall perform all functions Incident to the adminlstratlon, collection, enforcement, and operation of any tax imposed under this Act. Sec, 25. Delivery of Return; Remittance. A licensee required to fits a tax return shall deliver the monthly return with a remittance of the net amount of the tax due I) the office of the comptroller of public accounts, Sec. 20. Transmltlsls, Refunds, and Collections. (a) Each jurisdiction's share of all gross receipts taxes collected under this Act by the comptroller of public accounts shall be transmitted to the treasurer or the officar of the jurisdiction parforming the functions of that office by the comptroller of public accounts payable to the jurisdiction periodically as promptly as feasible. to STATUTHSiBING O TAX Transmittals required under this Act shall be made at least twice in each slate fiscal year. 'The funds so transmitted may be used by the jurisdiction for any purpose for which the general funds of the jurisdiction may be used. (b) Before transmitting funds under Subsection (a) of this section, the comptroller shall deduct two percent of the sum collected from each jurisdiction during such period and shall deposit the funds in the state treasury to the credit of a special fund to be known as the bingo enforcement fund. The fund may be used only for the administration and enforcement of this Act. (c) The comptroller of public accounts is authorized to retain in the suspense account of any jurisdiction a portion of the jurisdiction's share of the tax collected under this Act. The balance so retained in the suspense account may notexceed five percent of the amount remitted to the jurisdiction. The comptroller is authorized to make refunds from the suspense account of any jurisdiction for overpayments made to such accounts and to redeem dishonored checks and drafts deposited to the credit of the suspense account of the jurisdiction. (d) When any jurisdiction imposes the gross receipts tax and thereafter abolishes the tax, the comptroller of public accou its may retain in the suspense account of the jurisdiction for one year five percent of the final remittance to each such jurisdiction at the time of termination of collection of the tax in the jurisdiction to cover possible refunds for overpayment of the tax and to redeem dishonored checks and drafts deposited to the credit of the account, After one year has elapsed after the effective date of abolition of the tax in the jurisdiction, the comptroller shall remit the balance in the account to the jurisdiction and close the account. Sac. 27. Examination of Records; Disclosure of Information. (a) The governing body and the attorney v ierolmayexamineorcausetobeexamined the records of: (1) any authorized organl.ation that Is or has been licensed to conduct bingo, so far as the organization's activities may relate to bingo, Including the maintenance, control, and disposition of net proceeds derived from bingo or from the use of Its premises for bingo, and may examine any manager, officer, director, agent, member, or employee thereof under oath In relation to the conduct of anygame underany license, the use of its premises for bingo, or the disposition of proceeds derived from bingo; and (2) any licensed authorized commercial lessor so far as the activities of the lessor may relate to leasing premises for bingo and may examine the lessor or any manager, officer, director, agent, or employee thereof underoalh in relation to such leasing. (b) The compirollerof public accounts, or any person authorized In writing by him, may examine the books, papers, records, equipment, and place of business of any licensee under this Art and may Investigate the character of We business of the person In order to verify tha accuracy of any return, statement, or report made, or, if no return is made by the person, to ascertain and determine the amount required to be paid. (c) If the comptroller of public accounts determines that this Act Is not being compiled with, he shall notify the attorney general and the governing body of the appropriate political subdivision. Sac. 26. Information Available for Public Inspection. All applications, returns, reports, statements, and audits submitted to or conducted by the co,r ptroller of public accounts and the governing body are available for public Inspection. 11 STATUTES48INGO TAX Sec. 29 Penalties for Failure to Pay or Report. (a) 11 any licensee fails to file a return as required by this Act or falls to pay to the comptroller of public accounts taxes Imposed under this Act when the return or payment is due, the licensee shall forfeit five percent of the amount due as a penalty, and after the first 30 days, he shall forfeit an additional five percent. (b) Delinquent tax shall draw Interest at the rate of 10 percent a year, beg Inning 60 days from the duo date. Sec. 30, necomputatlon of Tex. If the comptroller of public accounts Is not satisfied with the return or returns of the tax or the amount of tax required to be remitted to the state by any ticensee, he may compute and determine the amount required to be paid on the basis of the facts contained In the return or returns or reportof receipts and expenses or on the basis of any Information within his possesAon or which may come into his possession. Sec. 31. Determination If no Return Made. If any licensee falls to makes required return, the comptroller of public accounts shall make an estimate of the gross recol pis of the licensee. The estimate shall be made for the period In respect to which the licensee failed to make a return and sheil be based on any Information within his possession or which may come Into his possession. On the basis of this estimate, the comptroller shall compute and determine the amount required to be paid to the state, adding to the surn thus arrived at a penalty equal to 10 percent thereof, One or more determinations maybe made for one or for more than one period. Sec. 32. Jeopardy Determination. (a) If the comptroller of public accounts believes that the collection of any tax or any amount of tax required to be remitted to the elate or the amount of anydetermination will be jeopardized by delay, he shall make a determination of the tax or amount of tax required to be collected, noting that fact upon the determination. The amount determin rd Is due and payable immediately, (b) If the amount specified Inthe determination is not paid within 20 days alter service of notice thereof on the licensee against whom the determination is made, the amount becomes final at the expiration of the 20 days unless a petition for redetermination Is filed within the 20 days. A delinquency penallyof 10 percent of the tax oramount of the tax and interest at the rate of 10 percent a year shall attach to the amount of the tax or the amount of the tax required to be collected. Sec. 33. Apptleallon of Tax Laws. Chapter 1, Title 122A, Taxation--General, Revised Civil Statutes of Texas, as amended, applies to the administration, collection, and enforcement of the tax Imposed under this Act except as modified by this Act. Sec. 34. Appeals on Denial of License. (a) Any applicant for, or holder of, any license Issued or to be issued under this Act aggrieved by any action of the comptroller of public accounts relating to licensing under this Act may appeal to a district court of Travis County from the determination of the comptroller by filing with the comptroller, the governing body, and the attorney general a written notice of appeal within 30 days after the delelmination or action appealed from, and on the hearing of the appeal, the evidence, If any, taken before the comptroller of public accounts and any additional evidence may be produced and shall be considered In arriving at a determination of the matters In issue. 12 8TATUTHt OIN G0 TAX (b) The district court may order the comptroller of public accounts to is-sue a license to an applicant or reform a license issued to an applicant or order that the application be reconsidered by the comptro"er if the court finds that the co ,iptre ter abused his discretion In his decision on the application. Sec. 35. Exemption from Prosecution. (a) A person lawfully conducting or participating In the conctuct or bingo or permitting the conduct on any premises owned or teased by him or It under any license lawfully issued under this Act Is not liable to prosecution or convirAlon for violation of any provision of the Penal Code, as amended, orany other law orordinance to the extent that such conduct is specifically authorized by this Act. The Immunity does not extend to any person knowingly conducting or participating in the conduct of bingo under any license obtained by any false pretense or by any false statement mude in any application for license or otherwise or permitting the conduct on any premises owned or leased by him or it of any game of bingo conducted under any license known to him or It to have been obtained by any false pretense or statement. (b) A licensee under this Act may poss.~ss paraphernalia, devices, or equipment that la required to conduct bingo games. (c) This Act does not apply to a bingo game or any conduct related to bingo under circumstances that would not constitute an offense under Chap!er 47 of the Penal Code if this Act were not In effect, Sec. 38. Offenses; Forfeiture of License; Ineligibility to Apply for License. (a) A person commits an offense arid forfeits a license issued under this Act if the person: (1) makes a false statement in an application for a license authorized to be Issued under this Act; (2) fails to maintain records that fully and truly record all transactions connected with the conducting of bingo or the leasing of premises to be used for the conduct of bingo; (3) falsifies or makes any false entry in any books or records to far as they relate in any manner to the conduct of bingo, to the disposition of the proceeds thereof, or to the application of rent received by any authorized organizatlon; (4) diverts or pays any portion of the net proceeds of any game of bingo to any person except In furtherance of one or more of the lawful purposes prescribed by this Act; or (5) violates this Act or a term of a license issued under this Act. (b) An offense under this section Isa Class C misdemeanor, unless the person has been convicted previously under this section, In which event it Is a Class B misdemeanor, (c) A person whose license is forfeited under this section may not apply for another license under this Act until one year has elapsed from the date of forfeiture, Sec. 37. Seizure,sAd' 4816. (a) At Any time wlthirr three years after a person Is delinquent in the payment of any amount of required tax due, the comptroller of public accounts may collect the amount as provided by this section. (b) The 'cbrnpfroller of public accounts shall seize any property,, real of personal, of the person'and ae11 the property, or a sufficient part of it, at Qpubllc auction to pay the amount due with any Interest or penalties on account of the seizure and sate. Any seizure made to collect a tax due shall be only of property of the licensee not exempt from execution under the laws of this state. 13 STATUTES' BINGO TAX (c) Notice of the sale and the time and place of the sale shall be given to the delinquent ?-arson in writing at leas! 20 days before the date set for the sale as provided by this subsection. The notice shall bo enclosed in an envelope addressed tothe person, in case of asale for limitedsafestaxdue, at his last known address or place of business, and in case of a sale for use taxes due, at his last known residence or place of business In this state. It shall be deposilcd ;n the Untied States mail, postage prepiLid. The notice shal I also bo publ ished fear at least 10 days before the date set for the sale in a newspaper of general cir"llati )n published in the county in which the property seized is to be sold. If there Is oo newspaper of general circulation in the county, notice shall be posted In thr a public places in the county at least 20 days before the dale set for We sale. The noticr±shall contain a description of the property h) be sold, ti statement of the amouri due, Including interest, penalties, and costs, the narne of the delinquent, and the further statement that unless the amount due, interest,punaitles and costs arepaldonorbefore thetimofixed Inthenotice lor the sale, tho property, or so much of it as may be necessary, will be sold in accordance with the law and the notice. (d) At the sale, the comptroller of pubic accounts shall sell the property in accordance with law and the notice and shall deliver to the purchaser a bill of sale for the personal property and a deod for any real property sold. The bill of sale ordeed vests the Interest or title of the person liable far the amount in the purchaser. The unsold portion of any property seized maybe left al the place of sale at the rlsk of the person liable for the amount. (e) 11 on the sale the money received exceeds the total of all amounts, Including Interest, penalties, and costs due the stale, the comptroller of public accounts shall return the excess to the person liable for the amounts and obtain his receipt. If any person having an interest in or lien on the property fileswith the comptroller before the safe notice of his Interest or lien, the comptroller shall withhold any excess pending a determination of the rights of the respective partles thereto by it court of competent jurisdiction. It for any reason the receipt of the Gerson liable for the amount Is not available, the comptroller shall deposit the excess money with the state treasurer, as trustee for the owner, subject to the order of the person liable for the amount, his heirs, successors, or assigns, 84c. 2,8, Bonds or 8ecurittes. a) Each licensee under this Act shall furnish to the comptroller of public accounts a cash bond, a bond from a surety company chartered orauthorized to do business In this state, certificates of deposit, certificates of savings or U.S. treasury bonds or, subject to the discretion and approval of the comptroller, an assignment of negotiable stocks or bonds, or such other security as the comptroller may deem sufficlent to secure the payment of required taxes under this Act. The comptrollerof public accounts shall fix the amount of the bond orsecurity In each cas9,110ing Into consideration the amount of money that has or Is expected to become due from the licensee under this Act. The amount of the bond or security required by ;he comptroller may not exceed three times the amount of the licensee's averaSio monthly reports. (b) On failure to pay taxes imposed under this Act, the comptroller of public accounts may notify both the licensee and any tirety of the delinquency by jeopardy or deficiency determinatlon, If payment Is not made when due, the comptroller may forfeit the bond or security or any part thereof. 14 "~'!+!Rw~aa~ e~~lwc:w STATUTES-BINGO TAX (c) If the licensee ceases to conduct bingo game:i ar" relinquishes his Ilcfns% the comptroller of public arrounts shall authorize the Wease of all bonds and security on his determination that no amounts of tax remain due and payable underthisAct. Sec. 39. Unlawful Bingo or Game. (a) For the purposes of this section, "bingo" or 'game" means a specific game of chance, commonly known as bingo or lotto, in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random, whether or not a person who participates as a player furnishes something of value for the opportunity to participate. (b) Any person conducting, promoting, or administering a game commits a felony of the third degree unless the person is conducting, promoting, or administering a game; (1) in accordance with a valid license issued under this Act; (2) within the confines of a home for purposes of amusement or recreation when: (A) no player or other person furnishes anything of value for the opportunity to participate; (B) participation in the game does not exceed 15 players; and (C) the prizes awarded or to be awarded are nominal; or (3) on behalf ofEinorganizatlonof persons 60 years of age or over or the patients in a hospital or nursing home or residents of a retirement home solely for the purpose of amusement and recreation of its members, residents, or patients, when: (A) no player or other person furnishes anything of value for the opportunity to participate; and (B) the prizes awarded or to be awarded are nominal. (c) This section applies to all political subdivisions regardless of local option status. Sec. 40. Fraudulent Award of Prizes. (a) A person commits Fin offense If the person participates In the award of a prize to a ;Mayer In a bingo game knowing that the award of the prize is made in a manner that disregards, to any oxtent, the random selection of numbers or symbols. (b) An offense under this section is a felony of the third degree. (c) It is a defense to prosecution under this section that no Farticlpant In the game furnished anything of value for the opportunity to participate in the game. Sec. 41, Application of Penal Code. Section 47.09, Penal Code. aoplig.%8 to any prosecution for a violation of this Act. Sec. 42. Civil Nmedles and Penalties. (a) If the comptroller of public accounts, the governing body, or the attorney general has reason to believe that this Act has been or is about to be violated, the comptroller of public accounts, the governing body, or the attorney general may petition the court for Injunctive relief to restrain any such violations. Venue for the Injunctive relief Is In the district courts of Travis County, Texas. (b) If the court finds that this Act has been violated by any person, the courtshall Issue a temporary restraining order, and after due notice and hearing a temporary Injunction and after a final trial a permvnent Injunction to restrain such violations. (c) If the court llnds that this Act has been knowingly violated, the court shall order all proceeds from the illegal bingo game or games to be forfeited to the appropriate governing body as a civil penalty. 16 STATUTSSiBINGO TAX Soc. 43. Gambling. (Section 47.02 of the Penal Code) (a) A person commits an offense if he: (1) makes a bet on the partial or final result of a game (;r =t st or on the performance of a participant In a game or contest; (2) makes a bet on the result of any political nomination, ahpawiment, or election or on the degree of success of any nominee, appointee, or candidate; or (3) plays and bets for money or nther thing ofvalue atany garno played with cards, dice, or balls. (b) It is a defense to prosecution under this section that: (1) the actor engaged in gambling In a private place; (2) no person received any economic benefit other than personal winnings; and (3) except for the advantage of skill or luck, the risks of losing and the chances of winning were the same for a?' participants. (c) It is a defense to prosecution under this section that the actor reasonably believed that the conduct was permitted under the Bingo Enabling Act. (d) An offense under this section Is a Class C misdemeanor. Sec. 44. Bingo. it is a dehmse to prosecution for an offense under this chapter I Chapter 47 of the Penal Code) that the conduct was authorizc 1 under the Bingo Enabling Act. 16