| (a) Definitions.
(1) License period--For purposes of Texas Occupations
Code §2001.104 and §2001.158, the term "license period"
means the four full calendar quarters immediately preceding the license
end date.
(2) Regular License Classes and Applicable Fee Amount:
(A) There is no annual fee for a license to conduct
bingo. The license-class-related amount used solely by the Commission
to estimate the pro rata local share of prize fees related to licenses
to conduct bingo shall be as follows:
(i) Class A (annual gross receipts of $25,000 or less)
- $132;
(ii) Class B (annual gross receipts of more than $25,000
but not more than $50,000) - $264;
(iii) Class C (annual gross receipts of more than $50,000
but not more than $75,000) - $396;
(iv) Class D (annual gross receipts of more than $75,000
but not more than $100,000) - $528;
(v) Class E (annual gross receipts of more than $100,000
but not more than $150,000) - $792;
(vi) Class F (annual gross receipts of more than $150,000
but not more than $200,000) - $1,188;
(vii) Class G (annual gross receipts of more than $200,000
but not more than $250,000) - $1,584;
(viii) Class H (annual gross receipts of more than
$250,000 but not more than $300,000) - $1,980;
(ix) Class I (annual gross receipts of more than $300,000
but not more than $400,000) - $2,640;
(x) Class J (annual gross receipts of more than $400,000)
- $3,300.
(B) The annual fee for a commercial lessor license
shall be as follows:
(i) Class A (annual gross rentals from licensed organizations
of not more than $12,000) - $132;
(ii) Class B (annual gross rentals from licensed organizations
of more than $12,000 but not more than $20,000) - $264;
(iii) Class C (annual gross rentals from licensed organizations
of more than $20,000 but not more than $30,000) - $396;
(iv) Class D (annual gross rentals from licensed organizations
of more than $30,000 but not more than $40,000) - $528;
(v) Class E (annual gross rentals from licensed organizations
of more than $40,000 but not more than $50,000) - $792;
(vi) Class F (annual gross rentals from licensed organizations
of more than $50,000 but not more than $60,000) - $1,188;
(vii) Class G (annual gross rentals from licensed organizations
of more than $60,000 but not more than $70,000) - $1,584;
(viii) Class H (annual gross rentals from licensed
organizations of more than $70,000 but not more than $80,000) - $1,980;
(ix) Class I (annual gross rentals from licensed organizations
of more than $80,000 but not more than $90,000) - $2,640;
(x) Class J (annual gross rentals from licensed organizations
of more than $90,000) - $3,300.
(C) Manufacturer's License. The annual fee for a manufacturer's
license shall be $3,000.
(D) Distributor's License. The annual fee for a distributor's
license shall be $1,000.
(b) Original License Application.
(1) Commercial License to Lease Bingo Premises.
(A) License fees for an original license to lease bingo
premises submitted by an authorized organization licensed to conduct
bingo must be paid from the organization's bingo bank account.
(B) An applicant may be required to submit additional
license fees if the estimated gross rental income used to calculate
the license fee is not reasonable when compared to the gross rental
income at similarly situated bingo premises. These comparative amounts
are used to establish the gross rental income amount upon which the
applicant's license fee is based and must be submitted.
(2) Understating the anticipated gross receipts or
rental income from a licensed activity for any purpose by an applicant
or licensed entity may be grounds for administrative disciplinary
action against the licensee.
(c) An organization shall re-estimate its annual gross
rental income and submit any balance due in license fee amount if
there is an increase within six months of the issuance of the original
lessor license in:
(1) the number of organizations conducting bingo at
a licensed location; and
(2) the number of bingo occasions conducted at the
licensed location.
(d) License Renewal Fee.
(1) The amount of license fee to be paid upon renewal
of a license to lease bingo premises is the recalculated license fee
amount calculated for the preceding license period.
(2) If the recalculation of the license fee amount
for the previous license period reflects an underpayment of the license
fee amount for that license period, the incremental difference must
be submitted by the organization within 30 days of the license expiration
date and before the license may be renewed.
(3) Upon written request by an organization to renew
its license to lease bingo premises that is in or going in administrative
hold, the organization shall pay a Class A license renewal fee, plus
any amount due under paragraph (2) of this subsection, in lieu of
the recalculated fee amount from the preceding license period. There
is no renewal license fee for an organization renewing its license
to conduct bingo that is in or going in administrative hold, but the
license-class-related amount used solely by the Commission to estimate
the pro rata local share of prize fees related to a license to conduct
bingo for such an organization is a Class A fee amount.
(4) The Commission may require an amount of license
fee in addition to the recalculated fee at renewal if there is a change
in:
(A) playing location; or
(B) rental amount per occasion.
(5) If a commercial lessor or a licensed authorized
organization which leases bingo premises requests its license be placed
in administrative hold upon the renewal of its lessor license and
submits the requisite fee as set in paragraph (3) of this subsection,
the Commission may require the commercial lessor to submit an additional
license fee when it files the application to amend a commercial license
to lease bingo premises, if the commercial lessor amends its license
to begin leasing bingo premises within the first six months of the
license term.
(e) Two-Year License Fee Payments. An applicant for
a commercial lessor license that is effective for two years must pay
an amount equal to two times the amount of the annual license fee,
as set in §402.404(a)(2).
(f) Regular License Class Recalculation.
(1) For the purpose of determining the license class
recalculation for a license to conduct bingo or license to lease bingo
premises, the annual gross receipts or gross rental income, as applicable,
shall be based on the four consecutive quarterly returns due immediately
prior to the license expiration date.
(2) For the purposes of determining the license class
recalculation for a two year license to lease bingo premises, each
year of the license period shall be recalculated separately. The final
recalculated fee will be the total of the yearly license classes and
their associated fees. The annual gross rental income shall be based
on the four consecutive quarterly returns due immediately prior to
the first year period and the four consecutive quarterly returns due
immediately prior to the license expiration date of the second year
period.
(3) For accounting units, gross receipts used to recalculate
the license class apportioned to a unit member will be calculated
by dividing the unit's gross receipts by the total number of members
during the quarter.
(4) If an organization fails to file a report for one
or more quarter(s) of the license period, or if there are not four
quarters available for any other reason, the Commission shall average
the quarterly gross receipts or gross rental income for the quarter(s)
reported to determine the organization's license class.
(5) License no longer exists.
(A) Notwithstanding the fact that an organization which
leased bingo premises under a license that ceased to exist for whatever
reason, the organization must submit the recalculated license fee
for the period that the organization leased the premises and collected
gross rental income.
(B) If an organization ceases to be licensed for whatever
reason, all gross receipts or gross rental income collected (from
the period after the last quarterly return used to recalculate the
license class for the prior year) is used to recalculate the final
license class, and if appropriate, any fee due. If the organization
fails to file a return for any required period(s), an estimated return
will be used. The organization shall submit any balance due after
license class recalculation.
(6) The Commission may recalculate license classes
for up to four consecutive immediately preceding license periods if
a change in an organization's reported gross receipts or gross rental
income occurs as a result of an audit, or if the original recalculation
was determined by using estimated gross receipts or gross rental income.
(7) If there is a change in an organization's reported
gross receipts or gross rental income, the organization may submit
a written request to the Charitable Bingo Operations Division to recalculate
its license class for up to four immediately preceding license periods.
(g) Overpayment of License Fee.
(1) An overpayment of a commercial lessor's annual
license fee may occur either through a recalculation of the license
fee pursuant to subsection (f) of this section, or if a licensee mistakenly
submits more money than is actually required for the license fee(s).
An overpayment of a manufacturer's or distributor's annual license
fee occurs if a licensee mistakenly submits more money than is actually
required for the license fee(s). The Commission will determine whether
an overpayment has occurred on a case by case basis.
(2) Upon a determination that an overpayment of an
annual license fee has occurred, the Charitable Bingo Operations Division
shall credit the overpayment to the licensee. Overpayments credited
to a licensee may be used for the licensee's outstanding bingo liabilities,
including subsequent license fees, but the credits must be used within
four years of the latest date on which the annual license fee was
due. Overpayments credited to a licensee remain eligible for refund
under subsection (h) of this section until the credits are used or
the four year refund period expires, whichever comes first.
(3) Overpayments of annual license fees must either
be used as credit or claimed for refund within four years of the latest
date on which the annual license fees were due. If a licensee fails
to use the credits or request a refund within this time period, the
overpayments will be retained by the Commission.
(h) Refunds.
(1) An applicant or licensee may request a refund of
the fee for an initial or renewal commercial lessor's license, initial
or renewal distributor's license, or initial or renewal manufacturer's
license if they request withdrawal of the application before the license
is issued. Upon such a request, the Commission will retain the lesser
of 50 percent of the fee or $150 and refund the rest of the fee within
30 days of receiving the request.
(2) If the Commission denies an initial or renewal
commercial lessor license application, initial or renewal distributor's
license application, or initial or renewal manufacturer's license
application, it will retain the lesser of 50 percent of the fee or
$150 and refund the rest of the fee within 30 days of denying the
application.
(3) A current or former licensee that submits an overpayment
of a regular license fee may be eligible to receive a refund of that
overpayment, provided that the licensee or former licensee:
(A) submits a complete written request for a refund
to the Commission within four years of the latest date the regular
license fees were due;
(B) does not have any other outstanding bingo liabilities
to the State; and
(C) if applicable, files all necessary quarterly reports.
(4) Upon the receipt and review of a timely and sufficient
refund request, the Commission may either deny the refund request
or certify to the Comptroller of Public Accounts that a refund is
warranted. Pursuant to Government Code §403.077, if the Commission
certifies to the Comptroller of Public Accounts that a refund is warranted,
the ultimate decision on whether to grant the refund will still be
made by the Comptroller of Public Accounts.
(i) Transfer of Commercial License to Lease Bingo Premises.
(1) All gross rental income collected in connection
with a license to lease bingo premises that has been transferred during
the term of the license shall be used to recalculate the license fee.
(2) A license fee credit in connection with a license
to lease bingo premises that was transferred during the term of the
license shall be credited to the current license holder at the time
of license renewal.
(3) A license fee balance due for a license to lease
bingo premises that was transferred during the term of the license
shall be the liability of the current license holder at the time of
license renewal.
(j) Temporary Authorization to Conduct Bingo.
(1) The amount of gross receipts collected in connection
with a temporary authorization is used to calculate the regular license
class.
(2) An organization conducting bingo pursuant to a
temporary authorization must comply with the same statutory and administrative
rule requirements and quarterly return filing requirements as an organization
which has a regular license to conduct bingo.
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| Source Note: The provisions of this §402.404 adopted to be effective March 21, 2005, 30 TexReg 1630; amended to be effective May 2, 2010, 35 TexReg 3253; amended to be effective July 31, 2013, 38 TexReg 4744; amended to be effective December 31, 2013, 38 TexReg 9538; 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 |
