89R15265 BEE-D     By: Middleton, Hall S.B. No. 1721       A BILL TO BE ENTITLED   AN ACT   relating to the transfer of the licensing and regulation of   charitable bingo to the Texas Commission of Licensing and   Regulation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 411.093(a), Government Code, is amended   to read as follows:          (a)  The Texas Department of Licensing and Regulation is   entitled to obtain criminal history record information as provided   by Subsection (b) that relates to:                (1)  an applicant for or the holder of:                      (A)  a driver education instructor license under   Chapter 1001, Education Code;                      (B)  a license under Chapter 202, Occupations   Code;                      (C)  a license under Chapter 401, Occupations   Code;                      (D)  a license under Chapter 402, Occupations   Code; [or]                      (E)  a license under Chapter 2001, Occupations   Code; or                      (F)  an instructor license or motorcycle school   license under Chapter 662, Transportation Code;                (2)  a person who is:                      (A)  an applicant for or the holder of a license   under Chapter 91, Labor Code; or                      (B)  a controlling person, as defined by Chapter   91, Labor Code, of an entity described by Paragraph (A); or                (3)  a person who:                      (A)  is an applicant for or the holder of a license   under Chapter 455, Occupations Code; or                      (B)  has an interest described under Section   455.1525(e), Occupations Code, in an entity described by Paragraph   (A).          SECTION 2.  Section 411.108(a-2), Government Code, is   amended to read as follows:          (a-2)  Subject to Sections 411.087, 466.201, and 467.036(b)   [of this code and Section 2001.3025, Occupations Code,] and   consistent with the public policy of this state, the Texas Lottery   Commission is entitled to:                (1)  obtain through the Federal Bureau of Investigation   criminal history record information maintained or indexed by that   bureau that pertains to a person described by Subsection (a) [or   (a-1)]; and                (2)  obtain from the department or any other criminal   justice agency in this state criminal history record information   maintained by the department or that criminal justice agency that   relates to a person described by Subsection (a) [or (a-1)].          SECTION 3.  Sections 466.002(2) and (3), Government Code,   are amended to read as follows:                (2)  "Director" means the lottery director [of the   division].                (3)  "Division" means the commission or a lottery   division established by the commission [under Chapter 467].          SECTION 4.  Section 467.002, Government Code, is amended to   read as follows:          Sec. 467.002.  APPLICATION OF SUNSET ACT. The commission is   subject to review under Chapter 325 (Texas Sunset Act). Unless   continued in existence as provided by that chapter, the commission   is abolished and this chapter and[,] Chapter 466 [of this code, and   Chapter 2001, Occupations Code,] expire September 1, 2025.          SECTION 5.  Sections 467.024(a) and (c), Government Code,   are amended to read as follows:          (a)  An individual is not eligible to be an appointed member   of the commission if the individual:                (1)  is registered, certified, or licensed by a   regulatory agency in the field of [bingo or] lottery;                (2)  owns or controls, directly or indirectly, more   than a 10 percent interest in a business entity or other   organization regulated by the commission or receiving funds from   the commission;                (3)  is employed by or participates in the management   of a business entity or other organization regulated by or   receiving funds from the commission;                (4)  uses or receives a substantial amount of tangible   goods, services, or funds from the commission, other than   compensation or reimbursement authorized by law for commission   membership, attendance, or expenses;                (5)  is an officer, employee, or paid consultant of a   Texas trade association in the field of [bingo or] lottery;                (6)  is required to register as a lobbyist under   Chapter 305 because of the person's activities for compensation on   behalf of a profession related to the operation of the commission;                (7)  is married to an individual described by   Subdivisions (2)-(6);                (8)  has been convicted of a felony or of any crime   involving moral turpitude; or                (9)  is not a citizen of the United States.          (c)  A person may not be a commission employee employed in a   "bona fide executive, administrative, or professional capacity,"   as that phrase is used for purposes of establishing an exemption to   the overtime provisions of the federal Fair Labor Standards Act of   1938 (29 U.S.C. Section 201 et seq.), if:                (1)  the person is an officer, employee, or paid   consultant of a Texas trade association in the field of [bingo or]   lottery; or                (2)  the person's spouse is an officer, manager, or paid   consultant of a Texas trade association in the field of [bingo or]   lottery.          SECTION 6.  Section 467.025(a), Government Code, is amended   to read as follows:          (a)  A commission member may not:                (1)  accept any employment or remuneration from[:                      [(A)]  a person that has a significant financial   interest in the lottery[; or                      [(B)  a bingo commercial lessor, bingo   distributor, or bingo manufacturer];                (2)  play any lottery [or bingo] game conducted in this   state;                (3)  accept or be entitled to accept any part of the   winnings to be paid from a lottery [or bingo] game conducted in this   state;                (4)  use the member's official authority to affect the   result of an election or nomination for public office; or                (5)  directly or indirectly coerce, attempt to coerce,   command, or advise a person to pay, lend, or contribute anything of   value to another person for political purposes.          SECTION 7.  Section 467.035(a), Government Code, is amended   to read as follows:          (a)  The commission may not employ or continue to employ a   person who owns a financial interest in[:                [(1)  a bingo commercial lessor, bingo distributor, or   bingo manufacturer; or                [(2)]  a lottery sales agency or a lottery operator.          SECTION 8.  Sections 467.101(a) and (c), Government Code,   are amended to read as follows:          (a)  The commission has broad authority and shall exercise   strict control and close supervision over all activities authorized   and conducted in this state under[:                [(1)  Chapter 2001, Occupations Code; and                [(2)]  Chapter 466 [of this code].          (c)  The commission also has the powers and duties granted   under[:                [(1)  Chapter 2001, Occupations Code; and                [(2)]  Chapter 466 [of this code].          SECTION 9.  Section 467.111(f), Government Code, is amended   to read as follows:          (f)  The commission shall prepare a report on the trends and   issues identified under Subsection (e) and make the report   available to the public.  The commission shall address the   identified trends and issues, including trends and issues related   to the regulation of lottery operations under Chapter 466 [and of   bingo under Chapter 2001, Occupations Code].          SECTION 10.  Section 572.003(b), Government Code, is amended   to read as follows:          (b)  The term means:                (1)  the banking commissioner of the Texas Banking   Department [Banking Commissioner of The Banking Department of   Texas];                (2)  the administrative director of the Office of Court   Administration of the Texas Judicial System;                (3)  the chief executive of the Office of Public   Utility Counsel;                (4)  the executive director of the State Bar of Texas;                (5)  the lottery director [of the lottery division] of   the Texas Lottery Commission;                (6)  the deputy in charge of the department of security   in a [the] lottery division of the Texas Lottery Commission;                (7)  the director of the bingo division of the Texas   [Lottery] Commission of Licensing and Regulation; or                (8)  the secretary of state.          SECTION 11.  Section 2001.002, Occupations Code, is amended   by amending Subdivision (8) and adding Subdivision (8-a) to read as   follows:                (8)  "Commission" means the Texas [Lottery] Commission   of Licensing and Regulation.                (8-a) "Department" means the Texas Department of   Licensing and Regulation.          SECTION 12.  Subchapter B, Chapter 2001, Occupations Code,   is amended by adding Section 2001.0501 to read as follows:          Sec. 2001.0501.  ALLOCATION OF POWERS AND DUTIES. A power   granted or duty assigned to the commission under this chapter is a   power or duty of the executive director of the department, the   director of bingo operations, the department, or the commission, as   established by commission rule.          SECTION 13.  The following provisions of the Government Code   are repealed:                (1)  Section 411.108(a-1);                (2)  Section 467.021(c);                (3)  Section 467.031; and                (4)  Section 467.033.          SECTION 14.  (a)  On September 1, 2025:                (1)  all functions and activities performed by the   Texas Lottery Commission relating to the regulation of bingo   operations under Chapter 2001, Occupations Code, immediately   before that date are transferred to the Texas Department of   Licensing and Regulation;                (2)  a rule, policy, procedure, decision, or form   adopted by the Texas Lottery Commission relating to Chapter 2001,   Occupations Code, is a rule, policy, procedure, decision, or form   of the Texas Commission of Licensing and Regulation or the Texas   Department of Licensing and Regulation, as applicable, and remains   in effect until amended or replaced by that commission or   department unless the rule, policy, procedure, decision, or form   conflicts with the changes in law made by this Act;                (3)  unless the context clearly indicates otherwise, a   reference to the Texas Lottery Commission in a law or   administrative rule that relates to Chapter 2001, Occupations Code,   means the Texas Commission of Licensing and Regulation or the Texas   Department of Licensing and Regulation, as applicable;                (4)  a complaint, investigation, or other proceeding   before the Texas Lottery Commission that is related to Chapter   2001, Occupations Code, is transferred without change in status to   the Texas Department of Licensing and Regulation, and the Texas   Department of Licensing and Regulation assumes, as appropriate and   without a change in status, the position of the Texas Lottery   Commission in an action or proceeding to which the Texas Lottery   Commission is a party;                (5)  a license, permit, certification, or registration   in effect that was issued by the Texas Lottery Commission under   Chapter 2001, Occupations Code, is continued in effect as a   license, permit, certification, or registration of the Texas   Department of Licensing and Regulation;                (6)  all money, contracts, leases, property, and   obligations of the Texas Lottery Commission relating to Chapter   2001, Occupations Code, are transferred to the Texas Department of   Licensing and Regulation; and                (7)  the unexpended and unobligated balance of any   money appropriated by the legislature for the Texas Lottery   Commission related to Chapter 2001, Occupations Code, is   transferred to the Texas Department of Licensing and Regulation.          (b)  On September 1, 2025, all full-time equivalent employee   positions at the Texas Lottery Commission that primarily concern   the administration, auditing, accounting, enforcement, or other   direct and indirect support of Chapter 2001, Occupations Code,   become positions at the Texas Department of Licensing and   Regulation.  When filling the positions, the Texas Department of   Licensing and Regulation shall give first consideration to an   applicant who, as of August 31, 2025, was an employee at the Texas   Lottery Commission primarily involved in administering or   enforcing Chapter 2001, Occupations Code.          (c)  Not later than June 1, 2025, the Texas Lottery   Commission shall grant the Texas Department of Licensing and   Regulation inquiry-only security access to:                (1)  all licensing, enforcement, and examination   software or computer systems used by the Texas Lottery Commission   in administering or enforcing Chapter 2001, Occupations Code; and                (2)  the uniform statewide accounting system, the state   property accounting system, the uniform statewide payroll system,   and the human resources information system for the Texas Lottery   Commission.          (d)  Before September 1, 2025, the Texas Lottery Commission   may agree with the Texas Department of Licensing and Regulation to   transfer any property of the Texas Lottery Commission to the Texas   Department of Licensing and Regulation to implement the transfers   required by this Act.          (e)  The Texas Department of Licensing and Regulation and the   Texas Lottery Commission shall coordinate implementation of this   section.  The Texas Lottery Commission shall cooperate with the   Texas Department of Licensing and Regulation in transferring all   data and records necessary to implement the transfers required by   this Act.          (f)  Before July 15, 2025, the Texas Lottery Commission and   the Texas Department of Licensing and Regulation shall develop and   enter into a memorandum of understanding regarding the transfers   required by this Act.  The memorandum must include a transition   plan with a timetable and specific steps and deadlines required to   complete the transfer.          (g)  Not later than December 1, 2025, a manufacturer of bingo   equipment or supplies that submitted to the Texas Lottery   Commission a bond as required under Section 2001.204, Occupations   Code, before September 1, 2025, that is in effect on the effective   date of this Act must amend the bond to name the Texas Department of   Licensing and Regulation as the payee for the bond.          SECTION 15.  The changes in law made by this Act to Chapter   2001, Occupations Code, apply only to a tax or fee charged on or   after September 1, 2025.  A tax or fee charged before September 1,   2025, is governed by the law in effect immediately before that date,   and the former law is continued in effect for that purpose.          SECTION 16.  Not later than March 1, 2026, the Texas   Commission of Licensing and Regulation shall adopt the rules   necessary to implement the changes in law made by this Act.          SECTION 17.  This Act takes effect immediately if it   receives a vote of two-thirds of all the members elected to each   house, as provided by Section 39, Article III, Texas Constitution.     If this Act does not receive the vote necessary for immediate   effect, this Act takes effect September 1, 2025.