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TITLE 16ECONOMIC REGULATION
PART 9TEXAS LOTTERY COMMISSION
CHAPTER 402CHARITABLE BINGO OPERATIONS DIVISION
SUBCHAPTER DLICENSING REQUIREMENTS
RULE §402.400General Licensing Provisions

(a) Any person who wants to engage in a bingo related activity shall apply to the Commission for a license. The application must be on a form prescribed by the Commission and all required information must be legible, correct and complete. The initial submittal of an application is incomplete if the following information is not provided:

  (1) All information requested on the application form and supplemental forms;

  (2) All supplemental information requested during the pre-licensing investigation period;

  (3) The applicable license fee for a lessor, distributor, or manufacturer; and

  (4) Authorized signatures as required by the Commission.

(b) Information submitted by an applicant on an applicable form shall be considered to be part of the application. Supplemental information should be submitted on a form prescribed by the Commission and all information required must be correct and complete.

(c) Information submitted by an applicant in a format other than an applicable form must be legible and must include the following:

  (1) the name and address of the organization as it appears on the application;

  (2) the Texas taxpayer identification number; or, if sole owner, the individual's social security number;

  (3) a statement identifying the information submitted;

  (4) the signature, printed name and telephone number of the person authorized to submit the information; and

  (5) all supplemental information requested during the pre-licensing investigation period.

(d) Within 21 calendar days after the Commission has received an original application, the Commission will review the application and notify the applicant if additional information is required.

(e) If an application is incomplete, the Commission will notify the applicant. The applicant must provide the requested information within 21 calendar days of such notification. Failure to provide the requested information within the 21 calendar day time line or providing incomplete information may result in the denial of the license application.

(f) For an application to conduct bingo, an organization may choose to submit the application form without including a bond or other security; information regarding previously held licenses; justice precinct, city or county certification; and information on intended playing location, days, times, and starting date.

  (1) All other information requested on the application and the accompanying supplements must be complete and in compliance with all other requirements of the Bingo Enabling Act and the Charitable Bingo Administrative Rules.

  (2) Within a number of calendar days required by the Commission on the applicable forms, the organization must remit the required bond or other security to the Commission and inform the Commission on the applicable supplemental forms of the intended playing location, days, times, and starting date of the occasions. If the organization fails to provide the required bond or other security as well as complete and accurate supplement forms within the required timeframe, the Commission will deny the application.

  (3) An organization that has submitted the appropriate bond or other security and a complete application, including all applicable supplemental forms, must also submit updated, certified meeting minutes, current as of the submission of the applicable supplemental information, stating that the organization voted to conduct bingo at the licensed location.

(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 will comply with the provisions of the Bingo Enabling Act and the Charitable Bingo Administrative Rules.

(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.

(i) Each licensed authorized organization issued a temporary authorization is required to file timely and complete required reports, as applicable to the type of licensing activity requested.

(j) A license applicant may withdraw an application at any time prior to the approval or denial of the application. Once the written request for withdrawal is received by the Commission, all processing of the application will cease and the withdrawal is considered final. License application fees for withdrawn license applications will be refunded, as provided for in the Bingo Enabling Act. If the organization wants to reapply for a license, a complete new application and new license fee, if applicable, are required.

(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.

  (2) If surrendering a license to conduct bingo, the prescribed form must be signed by the bingo chairperson.

  (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.

(l) Administrative Hold. A licensed authorized organization or commercial lessor, other than an association of licensed authorized organizations, may request to place its regular license in administrative hold, but only at the time of license renewal, as provided in §402.411 of this Chapter.

  (1) The placement of a license in administrative hold shall be effective on the first day of the license period for which the administrative hold is requested.

  (2) The licensee shall submit the license in administrative hold, or a certified statement that the license is not available, to the Commission no later than seven (7) calendar days after 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. A licensed authorized organization with its regular license in administrative hold may not conduct bingo under a temporary license.

  (4) Notwithstanding placement of the license in administrative hold, the licensee must file with the Commission:

    (A) all applicable reports, returns and remittances required by law; and

    (B) a timely and complete application for renewal of the license each time the license is ripe for renewal.

  (5) If at the time of license renewal a licensed authorized organization does not have a designated playing location, that license will be placed in administrative hold.

  (6) Except for licensed commercial lessors subject to §2001.152(b) of the Occupation Code, a license may not be in administrative hold for more than twelve (12) consecutive quarters.

  (7) The fee for a license in administrative hold is set in §402.404(d)(3) of this Chapter.

  (8) A license may be removed from administrative hold at any time during a license period. To remove a license from administrative hold, the licensee must file a license amendment application as provided in §2001.306 of the Occupations Code and §402.410 of this Chapter.

(m) 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 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.

(n) 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 Authorization of Representation for Bingo Licenses form. 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 on the Authorization of Representation for Bingo Licenses form that is on file with the Commission. Only those persons specifically named on a form prescribed by the Commission or on the Authorization of Representation for Bingo Licenses form 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.


Source Note: The provisions of this §402.400 adopted to be effective March 21, 2005, 30 TexReg 1630; amended to be effective March 15, 2007, 32 TexReg 1300; amended to be effective November 19, 2008, 33 TexReg 9225; amended to be effective May 2, 2010, 35 TexReg 3251; amended to be effective January 1, 2014, 38 TexReg 9535; amended to be effective February 25, 2015, 40 TexReg 815; amended to be effective August 1, 2016, 41 TexReg 5505; amended to be effective December 31, 2017, 42 TexReg 7392

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