PART 1. RAILROAD COMMISSION OF TEXAS
CHAPTER 3. OIL AND GAS DIVISION
The Railroad Commission of Texas (Commission) proposes to amend §3.12, relating to Directional Survey Company Report, to allow the electronic filing with the Commission of directional survey company reports. The Commission proposes the amendments in preparation for implementation of a new completions system. Upon implementation, the Commission will be able to accept electronically filed Forms G-1 (Gas Well Back Pressure Test, Completion or Recompletion Report, and Log) and W-2 (Oil Well Potential Test, Completion or Recompletion Report, and Log), and Directional Survey Reports.
In April 2004, the Commission amended §3.80 of this title (relating to Commission Oil and Gas Forms, Applications, and Filing Requirements) to revise language relating to electronic filing in anticipation of changes and/or new electronic filing opportunities the Commission has, and continues to, develop. The Commission added language to §3.80 to allow an organization to make any required or discretionary filing using either the prescribed paper form or any electronic filing process in accordance with the rule. Section 3.80 states that the Commission may at its discretion accept other documents or data electronically transmitted. Currently, only Production Reports (Form PR), Drilling Permit Applications (Form W-1), and Annual Disposal/Injection Well Monitoring Report (Form H-10) can be filed through the Commission Online System. Additional forms will be added as the Commission develops the online filing capabilities.
In preparation for this rulemaking and in addition to §3.12, the Commission reviewed §3.11 (relating to Inclination and Directional Surveys Required); §3.13 (relating to Casing, Cementing, Drilling, and Completion Requirements); §3.16 (relating to Log and Completion or Plugging Report); §3.28 (relating to Potential and Deliverability of Gas Wells To be Ascertained and Reported); §3.31 (relating to Gas Reservoirs and Gas Well Allowable); §3.40 (relating to Assignment of Acreage to Pooled Development and Proration Units); §3.51 (relating to Oil Potential Test Forms Required); §3.53 (relating to Annual Well Tests and Well Status Reports Required); and §3.58 (relating to Certificate of Compliance and Transportation Authority; Operator Reports), to determine whether those rules contained any language that could present a roadblock to electronic filing of certain forms. The Commission found that, when read with §3.80, the language in those rules presented no such roadblocks, with the exception of §3.12, which currently requires that "(E)ach directional survey . . . shall be mailed by registered, certified, or overnight mail directly to the commission in Austin by the surveying company making the survey."
Therefore, the Commission proposes to amend §3.12 to allow a surveying company to file electronically if the Commission has provided for such filing. Most of the proposed amendments in subsection (a) are non-substantive and are made for clarification. The Commission proposes to amend subsection (a)(6) to add a requirement that the filer include the drilling permit number and the API number in the identification of the well to facilitate coordination of the data from various completion filings for individual wells. The majority of the directional survey reports currently received by the Commission already include the API number. In subsection (b), the Commission proposes to add the following sentence: "The surveying company may file electronically if the commission has provided for such filing."
Leslie Savage, Planning and Administration, Oil and Gas Division, has determined that for each year of the first five years that the amendments will be in effect there will be minimal fiscal implications for state government. The purpose of the proposed amendments is to facilitate electronic filing and processing of directional surveys. The Commission does not anticipate that the amendments will result in either an increase or decrease in the total number of directional surveys filed with the Commission. Online filing capability is being built into programs that the Commission's Information Technology Services Division is already in the process of developing, so there are no additional programming or other IT costs for the Commission. There will be no effect on local government.
The 80th Texas Legislature (2007) adopted House Bill (HB) 3430, which amended Chapter 2006 of the Texas Government Code. As amended, Texas Government Code, §2006.002, relating to Adoption of Rules with Adverse Economic Effect, requires that as part of the rulemaking process, a state agency prepare an Economic Impact Statement that assesses the potential impact of a proposed rule on small businesses and a Regulatory Flexibility Analysis that considers alternative methods of achieving the purpose of the rule if the proposed rule will have an adverse economic effect on small businesses or micro-businesses.
The Commission's proposed amendments to §3.12 would have a potential impact only on those companies that perform directional surveys and that voluntarily choose to use electronic filing. The Texas Comptroller of Public Accounts website entitled "HB 3430 Reporting Requirements - Determining Potential Effects on Small Businesses," lists 2,134 companies that are classified as 213 (support activities for mining) on the North American Industrial Classification System (NAICS). This source further indicates that 1,841 companies (86 percent) are small businesses as defined in Texas Government Code, §2006.002, as amended by HB 3430. The Commission's organizational report records as of May 28, 2008, indicate that 60 companies perform directional survey activity, but provide no further breakdown with respect to relative size of the companies. Staff concludes that approximately 86 percent (or 52) of the 60 companies listed in Commission records would be small businesses or micro-businesses as defined in Texas Government Code, §2006.002, as amended by HB 3430.
The projected economic impact on these small businesses and micro-businesses will be neutral to positive. Because participation in the online filing system is voluntary, there will be no mandatory costs of compliance for those organizations and individuals opting not to make electronic filings with the Commission. If a company that is a small business elects to electronically file directional surveys with the Commission, there will be a nominal one-time cost associated with complying with the Commission's electronic data submission requirements.
The Commission Online System provides electronic filing and processing capability for certain oil and gas forms and other documents and data that have been migrated from the Commission's mainframe system to an open systems environment. Electronic filing options included within this system generally include on-line filing over the Internet using a web browser, and EDI filing by uploading data over the Internet or submitting data on a CD. Use of electronic filing options within this system requires a filing entity to obtain a User ID by filing a Security Administrator Designation (SAD) form and following subsequent instructions for assigning security access. Currently, only Production Reports (Form PR), Drilling Permit Applications (Form W-1), and Annual Disposal/Injection Well Monitoring Reports (Form H-10) can be filed through the Commission Online System. Additional electronic filing capabilities will be added in the near future, including those associated with completion reports and directional surveys. The Commission anticipates that the Commission Online System will have the capability of accepting Directional Survey Reports by mid- to late-2009.
The Commission Online System allows the user to submit reports using one or more of the following methods: (1) Online Filing, where the data are keyed directly into online screens and submitted to the Commission over the Internet; (2) EDI-File Upload, where the data are sent directly from the filer's computer, using the Internet E-File System, to the Commission's computers in the file format prescribed by the Commission; or (3) EDI-Compact Disc, where the data are downloaded in a specified format from the filer's computer onto a CD, which the filer mails to the Commission where the data are then uploaded to the Commission's computer for processing.
To be able to file electronically with the Commission, an operator must complete and submit a Security Administrator Designation (SAD) form. This form establishes a security administrator for a company or individual electing to file reports or applications online and/or through one of the EDI options available through the Commission's Online System. Once the Commission approves the Security Administrator Designation, the Commission notifies the security administrator of the assigned User ID. The Security Administrator may then further distribute security by assigning additional User IDs to employees within the company and designating which forms they are authorized to file electronically with the Commission.
Staff estimates that the initial cost would be no more than $100 for every entity electing to use electronic filing, regardless of the size of the business. This initial cost would include the completion of the SAD form, copying and mailing the SAD form to the Commission, and assigning user IDs within the company. However, because electronic filing will eliminate the need to send the directional surveys to the Commission via registered, certified, or overnight mail and will, therefore, eliminate the cost of such mail, the Commission finds that a company would likely very quickly recover the initial cost in the savings of mailing costs that would otherwise be incurred. The cost of compliance with the proposed amendments for the small business or micro-business will be offset by the elimination of mailing costs and the increased efficiency that electronic filing affords. Furthermore, when filings are made through the Commission's online system, all Commission offices will have electronic access to the information.
In preparing this amendment, the Commission considered requiring companies to electronically file directional surveys once the Commission has the capability of accepting those filings online. However, because some of the companies performing directional surveys are likely to be small businesses or micro- businesses, the Commission decided to allow the option of electronic or paper filing. The Commission finds that by allowing electronic filing to be optional rather than mandatory and retaining the option of paper filing, and because the nominal initial cost of compliance with the electronic filing requirements will likely be offset by the elimination of mailing costs, there is no adverse economic effect on small businesses or micro-businesses that file directional survey reports with the Commission.
Ms. Savage also has determined that for each year of the first five years that the proposed amendments will be in effect the public benefit will be an easier and more efficient process of filing directional survey company reports and other requests associated with oil and gas exploration and production as the Commission develops the necessary capabilities, and information that is more readily accessible by both the Commission and the public.
Comments on the proposal may be submitted to Rules Coordinator, Office of General Counsel, Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967; online at www.rrc.state.tx.us/rules/commentform.html; or by electronic mail to rulescoordinator@rrc.state.tx.us. Comments should refer to O&G Docket No. 20-0258005, and will be accepted until 5:00 p.m. on Monday, September 15, 2008, which is 31 days after publication in the Texas Register. The Commission finds that this comment period is reasonable because the proposal as well as an online comment form will be available on the Commission's web site several days prior to publication of the proposal, giving interested persons additional time to review, analyze, draft, and submit comments. The Commission encourages all interested persons to submit comments no later than the deadline. The Commission cannot guarantee that comments submitted after the deadline will be considered. For further information, call Ms. Savage at (512) 463-7308. The status of Commission rulemakings in progress is available at www.rrc.state.tx.us/rules/proposed.html.
The Commission proposes the amendments to §3.12 pursuant to Texas Natural Resources Code, §81.051 and §81.052, which provide the Commission with jurisdiction over all persons owning or engaged in drilling or operating oil or gas wells in Texas and the authority to adopt all necessary rules for governing and regulating persons and their operations under the jurisdiction of the Commission.
The Texas Natural Resources Code, §81.051 and §81.052 are affected by the proposed amendments.
Statutory authority: Texas Natural Resources Code, §81.051 and §81.052.
Cross-reference to statutes: Texas Natural Resources Code, §§81.051 and §81.052.
Issued in Austin, Texas on July 29, 2008.
§3.12.Directional Survey Company Report.
(a) For each well drilled for oil, gas, or geothermal
resources for which a directional survey report is required by rule,
regulation, or order, the surveying company shall prepare and
file [there shall be prepared and filed] the following
information. The information shall be certified by the person having
personal knowledge of the facts, by execution and dating of the data
compiled:
(1) the name of the surveying company;
(2) the name of the individual [person
] performing the survey for the surveying company;
(3) the title or position the individual [person
] holds with the surveying company;
(4) the date on which the individual performed
the survey [was performed];
(5) the type of survey conducted and whether the survey was multishot;
(6) a complete identification of the well, including [
so as to include] the name of the operator of the well; the
fee owner; the commission lease number, if assigned; the well number;
the API number, and the drilling permit number, the land survey;
the field name; and the county and state; and
(7) a notation that the survey was conducted from a depth of ____ feet to ____ feet.
(b) Each directional survey, with its accompanying certification and a certified plat on which the bottom hole location is oriented both to the surface location and to the lease lines (or unit lines in case of pooling) shall be mailed by registered, certified, or overnight mail direct to the commission in Austin by the surveying company making the survey. The surveying company may file electronically if the Commission has provided for such filing.
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 July 29, 2008.
TRD-200803942
Mary Ross McDonald
Managing Director
Railroad Commission of Texas
Earliest possible date of adoption: September 14, 2008
For further information, please call: (512) 475-1295
The Texas Alcoholic Beverage Commission (Commission) proposes new §31.10 relating to how to file a complaint with the Commission and new §31.11 relating to resolution and information about complaints that have been filed with the Commission.
Senate Bill 904, §12, 80th Legislature, 2007 amended §5.53 of the Texas Alcoholic Beverage Code (Code) to require the Commission to adopt rules that clearly define the Commission's complaint process from the time the complaint is received until it is resolved. These two new sections are proposed to comply with this requirement.
Proposed new §31.10 provides the public with information on who may file a complaint, against whom a complaint may be filed, where a complaint may be filed, what information to include in a complaint, and how to obtain instructions, assistance, and forms to file a complaint.
Proposed new §31.11 informs the public that all complaints are investigated, how the investigation into complaints are prioritized, what is done following the investigation, the fact that a complainant will be notified of the result of a complaint investigation, how general information about complaints may be obtained, where violation histories of permit and license holders may be accessed, and how to obtain specific information about specific complaints.
Charlie Kerr, Chief Financial Officer, has determined that for each year of the first five years the new sections are in effect, there will be no fiscal implications to the state or local government as a result of enforcing or administering the sections as proposed. There will also be no fiscal implications on small or micro businesses or persons as a result of the adoption of the proposed new sections.
Joel Moreno, Chief of Field Operations, has determined that for the first five years the sections are in effect the public will benefit from the adoption of the proposed new sections because they will have access to information which will assist them in making complaints and will be able to access information about the resolution of complaints.
Comments may be addressed to Joan Bates, Deputy General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711. Comments will be accepted for 30 days following publication of the proposed new rules in the Texas Register.
These new rules are proposed under the authority of §5.31 of the Alcoholic Beverage Code, which gives the Commission the authority to prescribe and publish rules necessary to carry out the provisions of the Texas Alcoholic Beverage Code, and §5.53, which requires the Commission to adopt the rules.
Cross Reference: Sections 5.31 and 5.53 of the Alcoholic Beverage Code are affected by these proposed new sections.
§31.10.Filing a Complaint.
(a) This section relates to §5.53 of the Texas Alcoholic Beverage Code (Code), which requires the Texas Alcoholic Beverage Commission (commission) to adopt a rule to define the agency's complaint process from the time a complaint is received until the complaint is resolved.
(b) The public, consumers, commission and persons and entities regulated by the commission may file a complaint against an individual or entity holding a license, permit or certificate issued by the commission.
(1) A complaint may be submitted anonymously. If the complainant wishes to be informed of the resolution of the complaint the complainant must provide contact information.
(2) A complaint may be submitted: in writing to the Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711-3127; in person at any TABC office; by phone at (512) 206-3333 or the phone number of the nearest TABC office, or by electronic mail at complaints@tabc.state.tx.us.
(c) A written complaint form, instructions on how and where to file a complaint and a list of local TABC offices may be found on the commission's public website at www.tabc.state.tx.us. A complainant can also request that a form and instructions be mailed to a complainant by calling the commission at (512) 206-3333, or a local TABC office. A complainant may also file a complaint on plain paper without using the form by providing the following information:
(1) Complainant name and how the complainant may be contacted if they wish to be notified of the outcome or resolution of the complaint.
(2) The name or identity of the individual or entity being complained about and how the commission may find or contact the individual or locate the entity. This may include physical, mailing and e-mail address, phone numbers and persons the complainant has contacted or spoken with regarding the complaint.
(3) A brief statement of the nature of the complaint and relevant facts, including the names of persons with knowledge, times, dates and location.
(4) If the complainant has documents or records related to the complaint, a copy of these should be attached to the complaint. Do not send original records with a complaint.
§31.11.Resolution and Information on Complaints.
(a) The commission investigates all complaints. The time and resources allocated to an investigation will be based on facts stated in the complaint. Complaints alleging conduct that presents a serious risk to the public health and safety will be given priority.
(b) If an investigation results in a finding that a provision of the Code or commission rules have been or may have been violated, the commission may proceed with an action to cancel, suspend or refuse to issue a permit or license under Chapters 11 and 61 of the Code, and the complainant will be informed if contact information is provided.
(c) If an investigation results in a finding that no violation of the Code or commission rules has occurred, the complainant will be informed of this result if contact information has been provided.
(d) General information and the nature and disposition of complaints can be accessed on the TABC public website at www.tabc.state.tx.us.
(e) The public can access the violation history of a license or permit issued by the commission on the TABC public website at www.tabc.state.tx.us.
(f) Information about a specific complaint against an individual or entity holding a license, permit or certificate issued by the commission may be obtained by filing a request under the Texas Public Information Act (TPIA). Some information in a complaint or investigation of a complaint may not be subject to disclosure under the TPIA.
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 July 30, 2008.
TRD-200803991
Alan Steen
Administrator
Texas Alcoholic Beverage Commission
Earliest possible date of adoption: September 14, 2008
For further information, please call: (512) 206-3204
CHAPTER 401. ADMINISTRATION OF STATE LOTTERY ACT
SUBCHAPTER E. RETAILER RULES
The Texas Lottery Commission proposes amendments to 16 TAC §401.362, relating to Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Damaged or Rendered Unsaleable, for Winning Lottery Tickets Paid and for Lottery-Related Property. The proposed amendments clarify what charges, if any, would be assessed against a retailer for tickets that are damaged or destroyed.
Specifically, the proposed amendments: (1) at subsection (a)(1), "or by §401.370" has been added; (2) at subsection (a)(2), the language has been rearranged to improve clarity and understanding, and the last sentence has been deleted; (3) at subsection (a)(3), language has been amended to require that the retailer must report damage to or destruction of tickets to the commission’s lottery operations division through the retailer hotline as soon as reasonably practicable under the circumstances and no later than three (3) weeks from the occurrence or event, and also states that a ticket is considered damaged or destroyed if rendered unsaleable through circumstances or events not the fault of the retailer; (4) at subsection (a)(4), a new subparagraph (A), language regarding crediting a retailer’s account when a pack is reported as damaged or destroyed has been added to the rule; (5) at subsection (a)(4), a new subparagraph (B) has been added to the rule and states that the director may not grant credit in connection with more than two separate incidents in a twelve-month period; (6) at subsection (a)(5), language has been added to the rule and sets forth the $25 administrative fee and possible waiver thereof; and (7) a new subsection (d) has been added to the rule and defines the terms "activated" and "unactivated", with regard to packs.
The Office of the Controller has determined that for each of the first five years the amendments would be in effect there would be a negative fiscal impact to the state as a result of administering or enforcing the proposed rule amendments, and for retailers, some of which may be small or micro-businesses, a corresponding positive fiscal impact. The amendments set out very specific circumstances under which a retailer may receive credit for damaged or destroyed tickets. The fiscal impact is not quantifiable because of the many variables that exist within these circumstances, but any credit to retailers under the rule amendments would result in reduced revenue for the Commission. The Office of the Controller has also determined that for each of the first five years the amendments would be in effect there would be no fiscal impact to local government or to local employment.
Ed Rogers, Retailer Services Manager, Lottery Operations Division, has determined that for each of the first five years the proposed amendments would be in effect, the public benefit anticipated as a result of the proposed amendments would be a reduction in the financial burden for retailers that experience business losses from fire and other causes outside of their control. It is anticipated that the implementation of these proposed amendments would have some negative impact on the generation of revenue by the Commission because the financial liability for tickets damaged or destroyed by fire or other causes may, in some circumstances, shift from retailers to the Commission. It is also anticipated, however, that the proposed amendments would, over time, increase overall revenue because the financial risks to the retailers of making a larger number of lottery instant games available for sale would be reduced. Additionally, it is anticipated that the generation of revenue would be enhanced through the retention of licensed retailers who might have otherwise discontinued their participation as retailers or defaulted in payment to the Commission and subsequently lost their licenses because of the financial requirements under the current rule.
The Commission requests comments on the proposed rule amendments from any interested person. Comments on the proposed rule amendments may be submitted to Deanne Rienstra, Assistant General Counsel, by mail to Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email to www.legal.input@lottery.state.tx.us. The Commission will hold a public hearing on this proposal at 10:00 a.m. on Thursday, September 4, 2008, at 611 E. 6th Street, Austin, Texas 78701. Comments must be received within 30 days after publication of this proposal in order to be considered.
The amendments are proposed under Government Code, §466.015, which authorizes the Commission to adopt all rules necessary to administer the State Lottery Act and to adopt rules governing the establishment and operation of the lottery, and under Government Code, §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission’s jurisdiction.
The amendments implement Government Code, Chapter 466.
§401.362.Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Damaged or Rendered Unsaleable, for Winning Lottery Tickets Paid and for Lottery-Related Property.
(a) Responsibility for Lottery Tickets Received.
(1) Except as otherwise expressly provided by this subsection or by §401.370 of this title (relating to Retailer's Financial Responsibility for Lottery Tickets Received and Subsequently Stolen or Lost), each retailer shall bear the risk of loss for all lottery tickets received. Receipt of tickets by a retailer shall constitute a purchase of such tickets, and each retailer shall be liable to the commission for the retail sales price of such tickets, less any applicable commission or credit.
(2) A [Notwithstanding paragraph (1)
of this subsection, a] retailer may return [, and receive
an accounting indicating that the packs have been removed from the
retailer's inventory for,] full and complete packs of unactivated
tickets in original condition and receive an accounting indicating
that the packs have been removed from the retailer's inventory.
Nothing in this subsection waives the requirements of §401.361
of this title (relating to Required Sales of Lottery Tickets). [The
term "unactivated" has the meaning as defined in §401.370 of
this title.]
(3) A retailer must report damage to or destruction
of tickets [Notwithstanding paragraph (1) of this subsection,
and where no winning ticket from such pack has been validated, the
director may charge a retailer an administrative fee of $25 for each
pack of unactivated tickets if damage to the pack has rendered the
tickets unsaleable and the retailer has made a formal report of such
damage] to the commission's lottery operations division through
the retailer hotline as soon as reasonably practicable under
the circumstances, but no later than three (3) weeks from the occurrence
or event. [within 24 hours of discovery of the damage.]
A ticket is considered "damaged" or "destroyed" if rendered unsaleable
through circumstances or events not the fault of the retailer.
(4) Under the circumstances set out in this paragraph,
the director may credit a retailer for activated tickets that are
damaged or destroyed. [Notwithstanding paragraph (1) of
this subsection, the director may waive the administrative fee of
$25 for each unactivated pack of tickets that are damaged to the extent
the tickets are unsaleable due to an Act of God provided the retailer
within 24 hours of the discovery of the damage has made a formal report
of such damage to the commission's lottery operations division through
the retailer hotline.]
(A) The director may credit a retailer's account for a range of activated tickets in a pack reported as damaged or destroyed providing:
(i) no validations have occurred on tickets in the range reported as damaged or destroyed;
(ii) the retailer has complied with paragraph (3) of this subsection;
(iii) if the tickets were damaged or destroyed by fire, the retailer made a formal report of the fire to appropriate fire department authorities within 24 hours of the discovery of the fire, and has provided to the commission’s lottery operations division a copy of a report by a Fire Marshall that identifies the location and the cause of the fire; or
(iv) if the tickets were damaged or destroyed other than by fire, the retailer has provided to the commission’s lottery operation division a copy of an insurance claim or a receipt for repairs that identifies damage at the retail location that is related to the damaged or destroyed tickets.
(B) The director may not grant credit under subparagraph (A) of this paragraph in connection with more than two separate incidents in a twelve-month period.
(5) There is an administrative fee of $25 for a pack of unactivated tickets that is unsaleable. The director may waive the administrative fee of $25 if the tickets are unsaleable because of damage or destruction caused by an overwhelming, unpreventable event caused exclusively by forces of nature and the retailer complied with the reporting requirements under paragraph (4)(A) of this subsection, as applicable.
[(5) A retailer shall report each
damaged pack of tickets to the commission's lottery operations division
through the retailer hotline within 24 hours of the discovery of the
damage.]
(b) Responsibility for Winning Lottery Tickets Paid. After a retailer has paid a prize on a winning ticket, that retailer shall completely deface such ticket and render it physically incapable of being subsequently presented as a winning ticket. A retailer who has failed to deface such a winning ticket and render it physically incapable of being subsequently presented as a winning ticket shall pay to the commission the full amount of each subsequent prize that is paid on such ticket.
(c) Responsibility for Lottery-Related Property. Each retailer shall be financially responsible to the commission for all lottery-related property placed at the retailer's location.
(d) An "activated" pack of tickets is a pack of tickets that has been delivered to a retailer and that is shown as "active" in the lottery management system. An "unactivated" pack of tickets is a pack of tickets in "Available," "Issued" or "Confirmed" status in the lottery management system.
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 August 1, 2008.
TRD-200804017
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: September 14, 2008
For further information, please call: (512) 344-5012
SUBCHAPTER B. CONDUCT OF BINGO
The Texas Lottery Commission (Commission) proposes amendments to 16 TAC §402.200 (relating to General Restrictions on the Conduct of Bingo).
The purpose of the amendments is to set out the requirements for organizations to follow in order to ensure the fair conduct of a bingo game. Specifically, at subsection (a), the amendments provide that a fairly conducted bingo occasion is one that is impartial, honest and free from prejudice or favoritism, one that is free of corrupt and criminal influences, and follows applicable provisions of the Bingo Enabling Act and Charitable Bingo Administrative Rules. The amendments at subsection (b) change the advertising provision language from identifying the bingo conductor to identifying the licensed authorized organization. In subsection (c)(2) - (6), the amendments add language regarding inspection and use of bingo equipment, including that the organization must establish and adhere to written procedures addressing bingo equipment malfunctions or problems, as well as any improper bingo ball calls or placements, during a bingo occasion. In subsection (d)(2) language has been added to clarify that a bingo occasion may be conducted only on premises which are owned by a governmental agency when there is no charge to the licensed authorized organization for use of the premises. At new subsections (e) and (f), language has been added regarding conducting bingo games and awarding of prizes within days and times specified on the bingo license and stating that pull-tab bingo event tickets may not be sold after the occurrence of the event unless the licensed authorized organization's house rules address the sale of pull-tab event tickets after the event occurred. The words "or other non-cash prize" have been added to the first sentence of subsection (g) to clarify that items other than what is normally considered as merchandise may be awarded as a bingo prize. New language regarding prize fees is added to the end of subsection (g). Existing subsection (h) has been deleted, and new subsection (h) has been added regarding donation of bingo prizes. New subsection (i) has been added and sets forth the minimum requirements that licensed authorized organizations must follow to ensure fair conduct of bingo, and includes requirements regarding information that must be displayed during bingo occasions. Existing subsection (f) has been deleted. New subsection (k) sets forth bingo worker requirements. New subsection (l) sets forth bingo caller requirements. Additional language regarding verification requirements has been added to what is now subsection (m). Finally, new subsection (n) requires each licensed authorized organization to establish and adhere to written procedures that address disputes and availability of those procedures to the players.
Kathy Pyka, Controller, has determined that for each year of the first five years the amendments would be in effect, enforcing or administering the rule does not have foreseeable implications related to cost or revenues of the state or local governments. Ms. Pyka has also determined that there will be no adverse economic effect on small businesses, micro businesses, or local or state employment. Furthermore, an Economic Impact Statement and Regulatory Flexibility Analysis is not required because the proposed amendments will not have an economic effect on small businesses as defined in Tex. Govt. Code §2006.001(2). All entities subject to the proposed amendments are non-profit organizations.
Philip D. Sanderson, Director of the Charitable Bingo Operations Division, has determined that for each year of the first five years the proposed amendments would be in effect, the public benefit expected from the adoption of the proposed amendments is providing interested parties with information about the conduct of a bingo game in a manner that is fair. Mr. Sanderson has also determined there will be no additional economic cost to persons required to comply with the amendments as proposed. The Commission requests comments on the proposed amendments from any interested person. Comments may be submitted to Sandra Joseph, Special Counsel, by mail at Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email at www.legal.input@lottery.state.tx.us. The Commission will hold a public hearing on this proposal at 10:00 a.m. on Tuesday, September 9, 2008, at 611 E. 6th Street, Austin, Texas 78701. Comments must be received within 30 days after publication of this proposal in order to be considered.
The amendments are proposed under the Texas Occupations Code §2001.054 which authorizes the Commission to adopt rules to enforce and administer the Bingo Enabling Act. The amendments are also proposed under Texas Government Code, §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.
The amendments implement the Texas Occupations Code, Chapter 2001.
§402.200.General Restrictions on the Conduct of Bingo.
(a) A bingo occasion that is fairly conducted by a licensed authorized organization is one that is impartial, honest, and free from prejudice or favoritism. It is also conducted competitively, free of corrupt and criminal influences, and follows applicable provisions of the Bingo Enabling Act and Charitable Bingo Administrative Rules.
(b) [(a)] Advertising. Any advertising
or promotion of a bingo occasion shall [clearly] identify
the licensed authorized organization(s) by name. [conductor,
by name as shown exactly as it is shown on the license.]
(c) [(b)] Inspection and use of equipment[
, tampering prohibited].
(1) All bingo equipment is subject to inspection at any time by any representative of the Commission. No licensee or worker of a licensed authorized organization may tamper with or modify or allow others to tamper with or modify any bingo equipment in any manner which would affect the randomness of numbers chosen or which changes the numbers or symbols appearing on the face of a bingo card. A licensed authorized organization has a continuing responsibility to ensure that all bingo equipment used by it is in proper working condition.
(2) A registered bingo worker must inspect the bingo balls prior to the first game of each bingo occasion, making sure all of the balls are present and not damaged or otherwise compromised.
(3) Bingo balls that are missing, damaged, or otherwise compromised shall be replaced in complete sets or individually if the bingo balls are of the same type and design. The replacement of the set or individual bingo ball(s) must be documented on the bingo ball inspection log.
(4) A registered bingo worker must inspect the bingo console and flashboard to ensure proper working order prior to the first game of each bingo occasion.
(5) The organization must maintain a log of each bingo ball, bingo console and flashboard inspection signed by the registered worker conducting the inspection.
(6) The organization must establish and adhere to a written procedure that addresses problems during a bingo occasion concerning:
(A) bingo equipment malfunctions; and
(B) improper bingo ball calls or placements.
(d) [(c)] Location of bingo occasion.
A bingo occasion may be conducted only on premises which are:
(1) owned by a licensed authorized organization [
the conductor];
(2) owned by a governmental agency when there is no charge to the licensed authorized organization for use of the premises;
(3) leased, or used only by the holder of a temporary license; or
(4) owned or leased by a licensed commercial lessor.
(e) All bingo games must be conducted and prizes awarded on the days and within the times specified on the license to conduct bingo.
(f) Pull-tab bingo event tickets may not be sold after the occurrence of the event unless the organization has a policy and procedure in their house rules addressing the sale and redemption of pull-tab bingo event tickets after the event has taken place.
(g) [(d)]Merchandise prizes.
Any merchandise or other non-cash prize awarded as a
bingo prize [in a bingo occasion
] shall be valued at its current retail price.
Prize fees must be collected on merchandise and non-cash prizes. [
If a merchandise prize is donated
to a licensed organization, it may not be reported as an expenditure
for any purpose.]
(h) Donated Bingo Prizes. Only licensed authorized organizations holding a non-annual temporary license may accept and/or award donated bingo prizes.
(i) The licensed authorized organization is responsible for ensuring the following minimum requirements are met to conduct a bingo occasion in a manner that is fair:
[(e) Notice of law and regulation.]
(1) Each licensed authorized organization [conductor
] shall obtain, maintain, keep current and make available
for review to any person upon request a copy of the Bingo Enabling
Act and the Charitable Bingo Administrative Rules.
(2) The licensed authorized organization must make the following information available to players prior to the play of a pull-tab bingo event ticket game:
(A) how the game will be played; and
(B) how the winner(s) will be determined.
(3) Each licensed authorized organization shall conspicuously display during all bingo occasions a sign indicating the name of the licensed authorized organization and the operator in charge of the occasion.
(A) The letters on the sign shall be no less than one inch tall.
(B) The sign shall inform the players that they should direct any questions or complaints regarding the conduct of the bingo occasion to the operator or licensed authorized organization listed on the sign.
(C) The sign should further state that if the player is not satisfied with the response given by the operator or the licensed authorized organization that the player has the right to contact the Commission and file a formal complaint.
(4) The following information shall be available to all patrons:
(A) the games to be played;
(B) the order in which the games will be played;
(C) the patterns needed to win;
(D) the prize(s) to be paid for each game;
(E) whether the prize payout is based on sales or attendance;
(F) the entrance fee and the number of cards associated with the entrance fee, if any; and
(G) the price of each type of bingo card offered for sale.
(5) The operator shall announce to players any change to information required by paragraph (4) of this subsection.
[(f) Notification of name
of operator. Each conductor shall conspicuously display during all
bingo occasions a sign indicating the name of the operator in charge
of the occasion. The letters on the sign shall be no less than one
inch tall. The sign shall inform the players at that location that
they should direct any questions or complaints regarding the conduct
of the bingo occasion to the operator listed on the sign. The sign
should further state that if the player is not satisfied with the
response given by the operator that the player has the right to contact
the Commission and file a formal complaint.]
(j) [(g)] Reservation of bingo
cards. Except where otherwise expressly permitted by this chapter,
no licensed authorized organization [conductor]
may reserve, or allow to be reserved, any bingo card or cards for
use by a bingo player.
(k) Bingo worker requirements.
(1) Bingo staff and employees may not play bingo during an occasion in which the bingo staff or employees are conducting or assisting in the conduct of the bingo occasion.
(2) A bingo worker shall not:
(A) communicate verbally, or in any other manner, to the caller the number(s) or symbol(s) needed by any player to win a bingo game;
(B) require anything of value from players, other than payment, for bingo cards, electronic card minding devices, pull-tab bingo tickets, and supplies; or
(C) deduct any cash or portion of a winning prize other than the prize fee without the player's permission.
[(h) Workers and employees
prohibited from playing. No bingo occasion shall be continued if,
during such occasion, any worker or employee who is conducting or
assisting in the conduct of the occasion participates as a player,
either directly or by surrogate.]
(l) Caller requirements--The caller shall:
(1) be located so that one or more players can:
(A) observe the drawing of the ball from the bingo receptacle; and
(B) gain the attention of the caller when the players bingo.
(2) be the only person to handle the bingo balls during each bingo game;
(3) call all numbers and make all announcements in a manner clear and audible to all of the playing areas of the bingo premises;
(4) announce:
(A) the amount of the prize prior to the end of the game if the prize amount is based on sales or attendance;
(B) that the game, or a specific part of a multiple-part game, is closed after asking at least two (2) times whether there are any other bingos and pausing to permit additional winners to identify themselves;
(C) whether the bingo is valid and if not, that there is no valid bingo and the game shall resume. The caller shall repeat the last number called before calling any more numbers; and
(D) the number of winners and the total amount of money or prizes awarded for the game.
(5) return the bingo balls to the bingo receptacle only upon the conclusion of the game; and
(6) not use cell phones, personal digital assistants (PDAs), computers, or other personal electronic devices to communicate with anyone during the bingo occasion, except for emergency situations.
(m) [(i)] Verification.
(1) [Verification of] Winning cards. The
numbers appearing on the winning card must be verified at the time
the winner is determined and prior to prize(s) being awarded in order
to insure that the numbers on the card in fact have been drawn from
the receptacle.
(A) This verification shall be done either in the immediate presence of one or more players at a table or location other than the winners, or displayed on a TV monitor visible by all of the players or by an electronic verifier system visible by all the players.
(B) After the caller closes the game, a [Each
] winning disposable paper card or an electronic
representation of the card for each game shall also be
posted on the licensed premises where it may be viewed in detail by
the players until at least 30 minutes after the completion of the
last bingo game of that organization's occasion.
(2) [Verification of ] Numbers drawn. Any
player may request a verification of the numbers drawn at the time
a winner is determined and a verification of the balls remaining in
the receptacle and not drawn.
(A) Verification shall take place in the immediate presence of the operator, one or more players other than the winner, and player requesting the verification.
(B) Availability of this additional verification, done as a request from players, shall be made known either verbally prior to the bingo occasion, printed on the playing schedule, or included with the bingo house rules.
(n) Each licensed authorized organization must establish and adhere to written procedures that address disputes. Those procedures shall be made available to the players upon request.
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 August 1, 2008.
TRD-200804013
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: September 14, 2008
For further information, please call: (512) 344-5012
The Texas Lottery Commission proposes a new rule at 16 TAC §402.205 (relating to Unit Agreements). The purpose of the proposed new rule is to clarify what is required in a unit accounting agreement or a trust agreement forming a unit and how to notify the Commission of any changes to those agreements.
Kathy Pyka, Controller, has determined that for each year of the first five years the proposed new rule would be in effect, there are no foreseeable implications related to cost or revenues of the state or local governments expected as a result of enforcing or administering the rule. Ms. Pyka has also determined that there would be no adverse economic effect on small businesses, micro businesses, or local or state employment. Furthermore, an Economic Impact Statement and Regulatory Flexibility Analysis is not required because the proposed new rule will not have an economic effect on small businesses as defined in Tex. Govt. Code §2006.001(2). The entities subject to the proposed new rule are non-profit organizations.
Philip D. Sanderson, Director of the Charitable Bingo Operations Division, has determined that for each year of the first five years the proposed new rule would be in effect, the public benefit anticipated is providing to licensees, specifically, what minimum information is required to be contained in a unit agreement and the specific timelines for notifying the Commission of amendments to existing unit agreements or new unit agreements. Mr. Sanderson has also determined that there would be no probable economic cost to persons required to comply with the rule.
The Commission requests comments on the proposed new rule from any interested person. Comments on the proposed new rule may be submitted to Sandra Joseph, Special Counsel, by mail to Texas Lottery, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email to www.legal.input@lottery.state.tx.us. The Commission will hold a public hearing on this proposal at 10:00 a.m. on Tuesday, September 9, 2008, at 611 E. 6th Street, Austin, Texas 78701. Comments must be received within 30 days after publication of this proposal in order to be considered.
The new rule is proposed under the Texas Occupations Code §2001.054 which authorizes the Commission to adopt rules to enforce and administer the Bingo Enabling Act. The new rule is also proposed under Texas Government Code, §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.
The new rule implements the Texas Occupations Code, Chapter 2001.
§402.205.Unit Agreements.
(a) Definitions. The following terms, when used in this section, shall have the following meanings:
(1) Unit Agreement--a unit accounting agreement or a trust agreement forming a unit.
(2) Act--Texas Occupations Code, Chapter 2001, entitled the Bingo Enabling Act.
(3) Rules--the Charitable Bingo Administrative Rules in effect at the time the unit agreement is submitted.
(b) A trust agreement forming a unit must contain all required elements of a unit accounting agreement as specified under §2001.431(3) of the Act.
(c) A unit must notify the Commission on a Commission-prescribed form and submit a copy of the executed unit agreement to the Commission prior to operating as a unit.
(d) A unit may apportion its net proceeds by sharing equally among the members or based on a set percentage or the number of occasions each member conducts in the given time period.
(e) A unit may appoint a designated agent who must be a natural person.
(1) A designated agent for a unit must complete training required under §2001.107 of the Act every two years on behalf of either the unit or a licensed authorized organization.
(A) If a new designated agent has not completed required training in the past two years, the designated agent must complete a training class within 45 days of when the unit agreement or amendment to a unit agreement naming the designated agent was signed.
(B) If the designated agent has not completed required training at the time of a unit's notification of a new designated agent, the designated agent must provide written notice to the Commission upon completion of the training.
(2) A bookkeeper may be a business contact for a commercial lessor and/or a designated agent for an accounting unit provided that the bookkeeper is not compensated or employed by the commercial lessor.
(3) A designated agent must provide personal information requested by the Commission on a Commission-prescribed form so that the Commission may conduct a background investigation to determine if the designated agent is an owner, officer or director of a licensed commercial lessor, employed by a commercial lessor or related to a licensed commercial lessor within the second degree by consanguinity or affinity.
(f) The unit member's taxpayer name and number on the unit agreement must match:
(1) the name on the organization's organizing instrument or the name of the organization as stated on its license to conduct bingo; and
(2) the eleven-digit taxpayer number on file with the Commission.
(g) If the unit agreement specifies that a member withdrawing from the unit is entitled to a share of the inventory or that the unit has the option to provide either payment for the member's share of the inventory or a share of the existing inventory, the unit must notify the Commission within fifteen business days of distribution of the method of distribution and/or provide a complete inventory list showing what was transferred to the withdrawing member.
(h) A unit agreement must specify the street address where the records of a dissolved unit will be maintained for the required four year retention period unless the unit agreement specifies that each unit member will receive a copy of the unit records.
(i) For a dissolved unit, the last trustee or member of a unit at the time of dissolution must notify the Commission within fifteen work days of any change in the street address of the unit's records during the required four year retention period.
(j) A unit agreement must be signed by the unit member organization's bingo chairperson or other officer or director.
(k) An organization may sign a unit agreement prior to the effective date of its license to conduct bingo but only after the license has been issued. The effective date the organization joins the unit must be on or after the effective date of the organization's license to conduct bingo.
(l) The method a unit uses to apportion net proceeds of the bingo operations among the members of the unit must be consistent with the method a unit uses to ensure compliance with the required disbursements to charity.
(m) A unit agreement must indicate the length of time allowed for the distribution of funds, records, and inventory and allocation of authorized expenses and liabilities on dissolution or withdrawal of one or more members of the unit. In accordance with Tex. Occ. Code §2001.436(b), unexpended bingo funds must be disbursed to the bingo account of each unit member before the end of the next calendar quarter after the calendar quarter in which the unit dissolved.
(n) Prior to joining a unit, a licensed authorized organization must provide written notice to the Commission stating whether it will be transferring inventory to the unit.
(o) An organization joining a unit must provide to the Commission a complete list of the inventory it has transferred to the unit within ten business days of joining the unit. It is the responsibility of the organization to ensure that the Commission timely receives the inventory list.
(p) A written inventory of bingo equipment and supplies must include the following:
(q) Any amendment to any of the contents of a unit agreement requires the unit to submit a form prescribed by the Commission and a copy of the executed amendment to the unit agreement within fifteen business days of the effective date of the change.
(r) Notification of an amendment to a unit agreement must contain:
(1) name of the unit;
(2) effective date of the change;
(3) specific section of the unit agreement being changed;
(4) new terms of the agreement which are in compliance with the Act and the Rules;
(5) signature of the bingo chairperson or other officer or director for each of the current unit members; and
(6) statement which binds the amendment to the original unit agreement creating one document unless the entire unit agreement is re-stated.
(s) A unit must submit to the Commission an amended unit agreement within twenty-five business days of the effective date of any change to the Act or the Rules which would affect the agreement's compliance with the new Act or Rules.
(t) A unit is considered dissolved if the unit members do not have a playing location for more than sixty consecutive calendar days.
(u) A unit must operate by the terms of the unit agreement until the agreement is amended or the unit is dissolved.
(v) If a unit agreement or an amendment to a unit agreement is found to not be in compliance with the Act or the Rules, the unit will have fifteen business days after being notified by the Commission to provide a revised compliant unit agreement or compliant amendment to a unit agreement.
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 August 1, 2008.
TRD-200804014
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: September 14, 2008
For further information, please call: (512) 344-5012
The Texas Lottery Commission (Commission) proposes amendments to 16 TAC §402.400 (relating to General Licensing Provisions). The purpose of the proposed amendments is to clearly set forth for organizations certain requirements and timelines for the application process.
Kathy Pyka, Controller, has determined that for each year of the first five years the proposed amendments will be in effect, there will be no significant fiscal impact for state or local governments as a result of the proposed amendments. There will be no adverse effect on small businesses, micro businesses, or local or state employment. There will be no additional economic cost to persons required to comply with the amendments as proposed. Furthermore, an Economic Impact Statement and Regulatory Flexibility Analysis is not required because the proposed amendments will not have an economic effect on small businesses as defined in Tex. Govt. Code §2006.001(2).
Philip D. Sanderson, Director of the Charitable Bingo Operations Division, has determined that for each year of the first five years the proposed amendments will be in effect, the public benefit anticipated is a more understandable rule that will provide organizations with information about the application process and related requirements.
The Commission requests comments on the proposed amendments from any interested person. Comments on the proposed rule may be submitted to Sandra Joseph, Special Counsel, by mail at Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email at www.legal.input@lottery.state.tx.us. The Commission will hold a public hearing on this proposal at 10:00 a.m. on Tuesday, September 9, 2008, at 611 E. 6th Street, Austin, Texas 78701. Comments must be received within 30 days after publication of this proposal 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, and under Government Code §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of this chapter and the laws under the Commission's jurisdiction.
The proposed amendments implement Texas Occupations Code, Chapter 2001.
§402.400.General Licensing Provisions.
(a) - (c) (No change.)
(d) Within 15 business [14] days
after the Commission has received an original [the]
application, the Commission will review the application and[;]
[(1)] notify the applicant if additional
information is required. [;]
[(2) notify the applicant
in writing why the application is being denied; or]
[(3) issue the license.]
(e) If an application is incomplete, the Commission
will notify the applicant. The applicant must provide the requested
information within 15 business [14] days of
such notification. Failure to provide the requested information within
the 15 business [14] day time line may
[will] result in the denial of the license application.
[(f) Notwithstanding the
provisions of subsection (e) of this section, failure to submit all
required information within 45 days from the date the application
is received by the Commission will result in the denial of the application.]
(f) [(g)] Prior to the issuance
of a license, the Commission may require an applicant to attend a
pre-licensing interview. The Commission will identify the person or
persons for the applicant who must attend the pre-licensing interview.
The pre-licensing interview will consist of, at a minimum, the following:
(1) review of the Bingo Enabling Act;
(2) review of the Charitable Bingo Administrative Rules;
(3) licensee responsibilities;
(4) process pertaining to the different types of license application;
(5) bookkeeping and record keeping requirements as it involves bingo; and
(6) a statement from the person or persons attending
the pre-licensing interview that they are aware of and [
understand and the licensee] will comply with the provisions of the Bingo
Enabling Act and Charitable Bingo Administrative Rules.
(g) [(h)] The Commission may
deny an application based on information obtained that indicates non-compliance
with the provisions of the Bingo Enabling Act and/or the Charitable
Bingo Administrative Rules in connection with a pre-licensing interview
and/or location inspection.
(h) [(i)] Each licensed authorized
organization and organization issued a temporary authorization
is required to file timely and complete required reports, as applicable
to the type of current license held.
(i) [(j)] An organization may
withdraw an application at any time. Once the written request for
withdrawal is received by the Commission, all processing of the application
will cease and the withdrawal is considered final. If the organization
wants to reapply for a license, a complete new application is required.
(j) [(k)] Voluntary surrender of a license.
(1) A licensee may surrender its license
for cancellation provided it has completed and submitted to the Commission
the prescribed form. ["Notice of Surrender of Bingo
License".]
(2) If surrendering a license to conduct bingo, the prescribed form must be signed by the primary operator and an officer of the organization.
(3) If surrendering any other type of license, the prescribed form must be signed by the sole owner, or by two officers, directors, limited liability corporation members, or partners of the organization.
(4) The cancellation of the license shall be final and effective upon receipt by the Charitable Bingo Operations Division of a copy of the resolution, or other authoritative statement of the licensee, requesting cancellation of the license and providing a requested effective date.
(A) The cancellation is effective as of the date identified in the letter provided that the date has not passed.
(B) If no date is identified in the letter, or the date has passed, the effective date shall be the date the Commission receives the letter.
(5) Notwithstanding cancellation of the license, the licensee must file all reports, returns and remittances required by law.
(6) The licensee shall surrender the license to the Commission on the effective date of the surrender.
(7) The Commission will send the licensee a letter confirming the surrender and resulting cancellation of the license.
(k) [(l)] Administrative Hold. A
licensed authorized organization or licensed commercial lessor
that is not an association of licensed authorized organizations that
jointly own or lease premises where bingo is conducted [
licensee] may place its license in administrative hold.
(1) The placement of a license in administrative hold shall be effective upon receipt by the Commission of a copy of the resolution, or other authoritative statement of the licensee, requesting administrative hold and citing a requested effective date.
(2) The licensee shall submit the license, or a certified statement that the license is not available, to the Commission on the effective date of the placement of the license in administrative hold.
(3) Once the license has been placed in administrative hold, all bingo activity (i.e. leasing, conducting bingo) must cease until the licensee files an amendment and the amended license is issued by the Commission and received by the licensee.
(4) [(m)] Notwithstanding placement
of the license in administrative hold, the licensee must file all
reports, returns and remittances required by law. The licensee must
also file a timely and complete application for renewal of the license
each time the license is ripe for renewal.
(l) [(n)] Each person required
to be named in an application for license under the Bingo Enabling
Act other than a temporary license will have a criminal
record history inquiry at state and/or national level conducted. Such
inquiry may require submission of fingerprint card(s). FBI fingerprint
cards are required for an individual listed in an application for
a distributor, system service provider, or manufacturer's license
and for an individual listed on an application who is not a Texas
resident. A criminal record history inquiry at the state and/or
national level may be conducted on the operator and officer or director
required to be named in an application for a non-annual temporary
license under the Bingo Enabling Act.
(m) [(o)] Timely Renewal of License.
(1) An annual bingo license expires one calendar year from date of issuance.
(2) Each licensee is solely responsible for the timely renewal of its annual license.
(3) Failure of the licensee to receive the renewal notice(s) mailed by the Commission is not a mitigating circumstance in timely renewal. The renewal notice is merely a reminder and not a prerequisite to a licensee's ability to submit a renewal application.
(4) A licensee that has not submitted a renewal application timely must cease all bingo activity until properly licensed.
(5) Notwithstanding any other provision in the Charitable
Bingo Administrative Rules, to be considered timely, the renewal application
must be filed with the Commission no later than the license expiration
date. [A licensee may mail the renewal application but the postmark
must clearly show a date that is no later than the license expiration
date.] To be timely filed, the application's [
Commission
must receive the mailed application within seven days of the postmarked
date of the mailed application and the] postmarked date must
clearly show a date that is no later than the license expiration date.
[Additionally, if the Commission does not receive the renewal
application within seven days of the postmarked date of the mailed
application, the renewal application is not timely filed.] In
computing the period of time for filing renewal applications, the
last day of the period so computed is to be included, unless it is
a Saturday, Sunday, or legal holiday, in which event the period runs
until the end of the next day which is not a Saturday, Sunday, or
legal holiday.
[(p) Notification of changes.
Each licensee must promptly notify the Commission in writing within
ten working days of any change to information contained in a filed
application regardless of whether the cause of the change is because
information filed with the Commission has become inaccurate, or additions
or deletions are necessary to reflect changes in the circumstances
of the licensee. Examples of such changes may include the names of
the organizational officers, the amount of rent charged for leased
premises, the name of a member responsible for the conduct of games,
or the name of an individual connected with a commercial lessor that
would affect its eligibility to hold a license and, in the case of
lessors, the name of a new authorized organization that intends to
lease premises from it for the purpose of conducting bingo.]
(n) [(q)] Representation; personal
receipt of documents. For purposes of this subsection, an individual
shall be recognized by the Commission as an applicant or licensee's
authorized representative only if the applicant or licensee has filed
with the Commission a form prescribed by the Commission identifying
the individuals currently listed as directors, officers, or operators,
or if they are identified on the completed form "Schedule E Authorization
of Representation". A person is not an authorized representative of
the applicant or licensee unless specifically named on a form prescribed
by the Commission as part of the application, or in the "Schedule
E Authorization of Representation" that is on file with the Commission.
Only those persons specifically named on a form prescribed by the
Commission or in the "Schedule E Authorization of Representation"
as an authorized representative shall be recognized by the Commission
concerning any matter relating to the licensing process or license.
Only the applicant or licensee or its authorized representative may
receive from the Commission documents relating to the application
or license without being required to submit a request under the Public
Information Act.
(o) [(r)] Eligibility determination
pending identification of playing location, days, times, and starting date.
(1) An organization may submit an original application for a license to conduct bingo without including information on intended playing location, days, times, and starting date if requesting a determination of eligibility status.
(2) All other information requested on the application and the accompanying schedules, except Schedule F-Bingo Financial Summary, must be complete and in compliance with all other requirements of the Act and Rules before the Commission determines eligibility status.
(3) An organization requesting a determination of eligibility status must submit with its application $100 to be applied towards the organization's license fee.
(4) Upon a determination that the requirements in paragraph (2) and (3) of this subsection have been met, the Commission will provide to the authorized organization written notice of the eligibility status of the applicant.
(5) Within 180 days of the date the Commission provides notice of the eligibility status of an applicant, the authorized organization must inform the Commission on a form prescribed by the Commission of the intended playing location, days, times, and starting date of the occasions. If the authorized organization fails to provide the information to the Commission within 180 days, the Commission will proceed with denial of the application.
(6) After review of the applicant's submitted intended playing location, days, times, starting date, and Schedule F-Bingo Financial Summary, and upon request by the applicant, the Commission may issue temporary authorization to conduct bingo for a period of 60 days if the Commission determines that the intended playing location, days, times, and starting date comply with the Bingo Enabling Act.
(7) In order to receive a regular license to conduct bingo, an authorized organization that has received an eligibility determination and informed the Commission of its intended playing location, days, times, and starting date of the occasions must also submit the required bond or security, any remainder of the appropriate license fee, a Texas Request for Licensure for Eligible Organization form, Schedule B3-Registered Workers for License to Conduct Bingo, certified meeting minutes stating that the organization voted to conduct bingo at the licensed location, and confirmation of the accuracy of information provided on the application to conduct bingo. The Commission will notify the applicant of the required license fee and bond amounts within 14 calendar days of receipt of the organization's intended playing location, days, times, and starting date.
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 August 1, 2008.
TRD-200804015
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: September 14, 2008
For further information, please call: (512) 344-5012
The Texas Lottery Commission (Commission) proposes a new rule at 16 TAC §402.442 (relating to Amendment to a Commercial Lessor License). The purpose of the new rule is to clarify what is required of a licensed commercial lessor in order to amend information contained in their application on file with the commission.
Kathy Pyka, Controller, has determined that for each year of the first five years the new rule will be in effect, there will be no significant fiscal impact for state or local governments as a result of the proposed new rule. There will be no adverse effect on small businesses, micro businesses, or local or state employment. There will be no additional economic cost to persons required to comply with the new rule as proposed. Furthermore, an Economic Impact Statement and Regulatory Flexibility Analysis is not required because the proposed new rule will not have an economic effect on small businesses as defined in Tex. Govt. Code §2006.001(2).
Philip D. Sanderson, Director of the Charitable Bingo Operations Division, has determined that for each year of the first five years the proposed new rule would be in effect, the public benefit expected from the adoption of the new rule is providing to licensees specific information about what minimum documentation the organization is required to provide when amending their commercial lessor license.
The Commission requests comments on the proposed new rule from any interested person. Comments may be submitted to Sandra Joseph, Special Counsel, by mail at Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630; by facsimile at (512) 344-5189; or by email at www.legal.input@lottery.state.tx.us. The Commission will hold a public hearing on this proposal at 10:00 a.m. on Tuesday, September 9, 2008, at 611 E. 6th Street, Austin, Texas 78701. Comments must be received within 30 days after publication of this proposal in order to be considered.
The new rule is proposed under the Texas Occupations Code §2001.054 which authorizes the Commission to adopt rules to enforce and administer the Bingo Enabling Act. The new rule is also proposed under Texas Government Code, §467.102, which authorizes the Commission to adopt rules for the enforcement and administration of the laws under the Commission's jurisdiction.
The new rule implements the Texas Occupations Code, Chapter 2001.
§402.442.Amendment to a Commercial Lessor License.
(a) During the license term, a commercial lessor may apply to amend its licensed location or organization name.
(b) To amend its license, a commercial lessor shall submit to the Commission the following:
(1) completed application form prescribed by the Commission;
(2) $10 amendment application fee;
(3) original, current license except when the Commission is maintaining the license in administrative hold. A commercial lessor shall display a copy of its license at its licensed location if it has submitted the original license with an amendment application;
(4) When amending organization name, additional documents if applicable as follows:
(A) a copy of relevant amended organizing instruments reflecting the change in organization name;
(B) if commercial lessor is also licensed to conduct bingo, an association of licensed authorized organizations that jointly own or lease premises, a corporation, or a limited liability company, a signed copy of the meeting minutes when the organization voted to change its name.
(5) When amending location, additional forms as follows:
(c) The Commission may inspect the proposed location prior to approving an amendment application.
(d) The Commission will not approve an application for an amendment to change location by a commercial lessor who also holds a license to conduct bingo unless its license to conduct bingo is approved for the same location.
(e) All licensed authorized organizations that will be leasing from the commercial lessor at the new location must notify the Commission of the change in commercial lessor and the lease amount to be paid before the commercial lessor license may be amended. Notification may include:
(1) an annual license or amendment application filed with the Commission;
(2) licensed Conductor Notification Form prescribed by the Commission; or
(3) written statement of the change.
(f) If the playing location is not presently licensed, the license will not be issued until at least one authorized organization that will be leasing from the commercial lessor meets all licensing requirements to conduct bingo.
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 August 1, 2008.
TRD-200804016
Kimberly L. Kiplin
General Counsel
Texas Lottery Commission
Earliest possible date of adoption: September 14, 2008
For further information, please call: (512) 344-5012