TITLE 16.ECONOMIC REGULATION

Part 9. TEXAS LOTTERY COMMISSION

Chapter 402. CHARITABLE BINGO ADMINISTRATIVE RULES

Subchapter F. PAYMENT OF TAXES, PRIZE FEES AND BONDS

16 TAC §402.600

The Texas Lottery Commission proposes amendments to 16 TAC §402.600, relating to Bingo Reports. The proposed amendments include less restrictive language with regard to the payment of prize fees or rental tax due, and add reporting requirements for certain licensees.

Kathy Pyka, Controller, has determined for each year of the first five years the proposed amendments are in effect there will be no fiscal implications to state or local government. There will be no impact on small or micro businesses, individuals, or local or state employment as a result of implementing the amended section.

William L. Atkins, Charitable Bingo Operations Director, Charitable Bingo Operations Division, has determined that for each of the first five years the amendments as proposed are in effect, the public benefit anticipated as a result of the proposed amendments is less stringent requirements for certain licensees with regard to payment of prize fees or tax due, and the addition of reporting requirements for certain licensees.

Written comments on the proposed amendments may be submitted to Sandra Joseph, Assistant General Counsel, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630, by facsimile, or via the agency's website online public comment form. The Commission will hold a public hearing on this proposal at 11:00 a.m. on February 8, 2006, at 611 E. 6th Street, Austin, Texas. Comments must be received within 30 days after publication of the proposed amendments in the Texas Register in order to be considered.

The amendments are proposed under Texas Occupations Code, §2001.054 which authorizes the Commission to adopt rules to enforce and administer the Bingo Enabling Act.

The amendments implement Texas Occupations Code, Chapter 2001.

§402.600.Bingo Reports.

(a) - (d) (No change.)

(e) Quarterly report for information relating to a manufacturer or distributor license.

(1) - (3) (No change.)

(4) The Commission will deny a renewal application or revoke a license of a manufacturer or distributor where the licensee has failed to timely file with the Commission the required reports three times within four consecutive quarters.

(f) (No change.)

(g) Quarterly report for information relating to a system service provider license.

(1) - (3) (No change.)

(4) The Commission will deny a renewal application or revoke a license of a system service provider where the licensee has failed to timely file with the Commission the required reports three times within four consecutive quarters.

(h) - (k) (No change.)

(l) The Commission will deny a renewal application for a license to conduct bingo or a license to lease bingo premises or revoke a license to conduct bingo or a license to lease bingo premises if the licensee has failed to pay timely the prize fee or rental tax due three times within four consecutive quarters and a final jeopardy determination has been made by the commission for three of the four consecutive quarters in accordance with Texas Government Code §2001.510 and §2001.511 [ a 12 month period ].

(m) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 18, 2006.

TRD-200600270

Kimberly L. Kiplin

General Counsel

Texas Lottery Commission

Earliest possible date of adoption: March 5, 2006

For further information, please call: (512) 344-5113