| (a) The provisions of this rule relate only to the
accounting, reporting and operation of units in accordance with the
Bingo Enabling Act and this chapter. Nothing in this rule shall be
construed as a grant of authority or waiver of responsibility under
federal law, including tax law, and other state law.
(b) Definitions. In addition to the definitions provided
in §402.100 of this chapter, and unless the context in this section
otherwise requires, the following definitions apply:
(1) Default--The term used to describe the status of
a licensed authorized organization that does not timely pay for the
sale or lease of bingo supplies or equipment as provided in Occupations
Code, §2001.218.
(2) Net proceeds--The unit's gross receipts from bingo
and gross rental income, if applicable, less prizes awarded and authorized
expenses.
(c) Each unit will be assigned an identification number
by the Commission.
(d) If a unit dissolves and starts another unit with
the same organizations, for all intent and purposes, it is the same
unit and is responsible for all liabilities and distributions owed
by the prior unit.
(e) Unit Representation.
(1) All units, with the exception of a unit with a
Unit Manager, must name a designated agent who is responsible for
providing the Commission access to all inventory and financial records
of the unit on request by the Commission.
(2) It is the responsibility of the unit's designated
agent to provide information to the Commission on:
(A) the unit agreement or trust agreement;
(B) submission of all required forms;
(C) unit Quarterly Report; and
(D) unit's bingo records.
(3) The designated agent will make available all unit
accounting records to any member of a licensed authorized organization
whose organization is a member of the accounting unit within thirty
(30) calendar days of the request.
(4) The designated agent will provide a copy of all
unit accounting records to the bingo chairperson of a licensed authorized
organization whose organization was a member of the accounting unit
within thirty (30) calendar days of the date of separation.
(f) Unit's Use of Proceeds.
(1) All distributions of net proceeds of the unit shall
be paid from the unit's bingo account to the account designated by
the unit member. Each unit member is required to maintain adequate
records establishing that the use of such net proceeds is in accordance
with Occupations Code §2001.454.
(2) All prize fees collected in accordance with Occupation
Code, §2001.502 must be deposited in the unit's bingo account
and paid from the unit's bingo account.
(g) Unit Transactions.
(1) Upon prior written consent by the Commission:
(A) a licensed authorized organization may make a sale
of bingo cards, pull-tab bingo tickets, or a used bingo flash board
or blower to a unit;
(B) a unit may make a sale of bingo cards, pull-tab
bingo tickets, or a used bingo flash board or blower to a licensed
authorized organization; or
(C) a unit may make a sale of bingo cards, pull-tab
bingo tickets, or a used bingo flash board or blower to another unit.
(D) Within thirty (30) calendar days of initially joining
a unit, the licensed authorized organization shall notify the Commission
of the bingo cards and pull-tab bingo tickets transferred to the unit.
(2) If a member of a unit is in default, a person may
not sell or transfer bingo equipment or supplies to the unit on terms
other than immediate payment on delivery.
(h) Unit Recordkeeping.
(1) Each unit must file a quarterly report and any
required supplements on forms prescribed by the Commission and maintain
records to substantiate the contents of the reports.
(2) The unit must adhere to all applicable recordkeeping
requirements in the Bingo Enabling Act and Charitable Bingo Administrative
Rules.
(3) A member of a unit which is also licensed as a
commercial lessor must report its rental income on the unit quarterly
report.
(4) Each unit must maintain a log for each bingo occasion
indicating the following:
(A) date of the occasion;
(B) licensed authorized organization conducting the
bingo occasion; and
(C) operator on duty.
(i) Unit Bingo Account.
(1) The unit must establish and maintain one checking
account designated as the "bingo account." The unit must maintain
the "bingo account" in compliance with the same provisions of the
Bingo Enabling Act and Charitable Bingo Administrative Rules applicable
to a licensed authorized organization.
(2) The face of the checks must list the name of the
unit, the words "Bingo Account", and the unit's identification number.
(3) Only the following may be deposited into the unit's
bingo account:
(A) proceeds from the conduct of bingo;
(B) rent payments received by a unit member that is
also a licensed commercial lessor; and
(C) funds transferred by new members or funds transferred
in accordance with §402.202 of this subchapter (relating to Transfer
of Funds).
(4) A separate deposit must be made for each bingo
occasion conducted. Additionally, all sales and prizes must be recorded
in accordance with the rules.
(5) All prize fees must be paid from the unit bingo
account.
(j) Transfer of Funds to the Unit Account by new Members.
(1) A licensed authorized organization joining a unit
may transfer funds from its previous bingo account into the unit bingo
account at the time:
(A) the unit is formed;
(B) within 60 days of joining an existing unit;
(2) Any additional funds transferred to the unit bingo
account must comply with §402.202 of this subchapter.
(3) Funds previously reported on a bingo quarterly
report as charitable distributions may not be transferred to the unit
bingo account.
(4) All net proceeds remaining in the organization's
former bingo account at the time it joins a unit must:
(A) be disbursed by the last day of the quarter following
the date the organization joined the unit; or
(B) transferred to the unit bingo account in accordance
with paragraph (1) of this subsection.
(5) At the time an organization joins a unit, all of
its bingo expenses must be paid from the unit bingo account including
outstanding bingo expenses and subsequent expenses. The total amount
of outstanding bingo expenses should be included in the amount of
funds transferred at the time the unit is formed or at the time of
joining an existing unit.
(6) If a unit member does not have sufficient funds
to cover outstanding bingo expenses or the amount required to join
the unit, the unit member's portion of the charitable distribution
may be reduced until these obligations have been satisfied. This business
practice may be used provided that:
(A) the exact terms are reflected in the unit agreement;
(B) a copy of the unit agreement is provided to the
Commission; and
(C) the unit meets the charitable distribution requirement.
(7) If the organization transferred funds from its
previous bingo account into the unit bingo account, the funds must
be reported on the unit's "Texas Bingo Quarterly Report" for the quarter
they were transferred and on the last "Texas Bingo Quarterly Report"
the organization filed as a non-unit member.
(8) An organization that is required to file a Texas
Bingo Quarterly Report for a period prior to joining a unit must file
a Final Disposition of Bingo Proceeds in Bank Account reporting the
final disposition of all proceeds in its bingo account. The form must
be submitted with the unit's "Texas Bingo Quarterly Report" for that
quarter and would be subject to all "Texas Bingo Quarterly Report"
filing deadlines, requirements and penalties.
(k) Distribution of Funds Upon Withdrawal or Dissolution.
(1) An organization receiving a distribution of funds
from the unit's bingo account upon leaving the unit, must classify
the distribution as a charitable distribution on the unit's "Texas
Bingo Quarterly Report".
(2) Funds distributed as a charitable distribution
must be used for the charitable purpose of the organization in accordance
with the Bingo Enabling Act and Charitable Bingo Administrative Rules
and may not be used to join another unit.
Cont'd... |
