| (a) Definitions. The following words or terms, when
used in this chapter, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Average unit member operating capital--An amount
equal to the allowable retained operating capital of the unit divided
by the number of unit members.
(2) Bingo account--The bingo checking account, bingo
savings account, and petty cash if bingo funds, of a licensed authorized
organization or unit.
(3) Quarterly report--The Texas Bingo Quarterly Report.
(4) Retained operating capital limit--The maximum amount
of funds that may be retained in the bingo account of a licensed authorized
organization or unit, which is equal to the organization's or unit's
actual quarterly average bingo expenses, excluding prizes paid, for
the preceding license period but does not exceed $50,000 per organization.
(b) The bingo account balance of a licensed authorized
organization, reconciled to include outstanding checks and deposits
in transit, on the last day of each calendar quarter may not exceed
the total of:
(1) the organization's or unit's retained operating
capital limit;
(2) prize fees held in the bingo account to be paid
to the Commission and local governments, or to be retained under Bingo
Enabling Act §2001.502(b)(3); and
(3) net proceeds from the conduct of bingo for the
current quarter.
(c) Bingo account funds may be transferred between
the bingo checking account, bingo savings account, and petty cash,
where applicable. All funds from the bingo checking account, bingo
savings account, and petty cash shall be included in the bingo account
balance reported on the quarterly report on the last day of each calendar
quarter, including funds in transit between the various accounts.
(d) Licensed Authorized Organization's Calculations.
(1) The retained operating capital limit for a licensed
authorized organization with a regular license will be calculated
for each 12-month period of the license.
(2) The retained operating capital limit for a licensed
authorized organization submitting the first renewal of its license
to conduct bingo will be calculated based on the quarterly reports
for the three (3) calendar quarters immediately preceding the license
start date.
(3) The retained operating capital limit is effective
for the four (4) calendar quarters beginning on the first day of the
calendar quarter immediately following the license start date.
(e) Accounting Unit's Calculations.
(1) The retained operating capital limit for an accounting
unit will be calculated based on the quarterly reports for the four
(4) quarter period beginning October 1 through September 30 of each
year.
(2) The retained operating capital limit for an accounting
unit is effective from January 1 through December 31 of each year.
(f) A licensed authorized organization's or unit's
most recent quarterly report information at the time of the calculation
will be used to calculate its retained operating capital limit. Prize
fees are not included in calculation of operating capital if they
are held in escrow for remittance to the commission or local governments
or retained by a licensed organization under Bingo Enabling Act §2001.502(b)(3).
(g) Retained Operating Capital Limits.
(1) The retained operating capital in the bingo account
of a licensed authorized organization may not exceed a total of $50,000
for the first year of licensure.
(2) The retained operating capital in the bingo account
of a newly formed unit may not exceed the total of the retained operating
capital limits of all the licensed authorized organizations forming
the unit.
(3) If a licensed authorized organization joins a unit,
the retained operating capital in the unit's bingo account may be
increased by an amount that is equal to the average unit member operating
capital, not to exceed a total of $50,000.
(4) If a licensed authorized organization withdraws
from a unit and will no longer utilize unit accounting, its retained
operating capital limit will be equal to the average unit member operating
capital of the unit prior to withdrawal, not to exceed a total of
$50,000.
(5) Upon withdrawal of a unit member, the retained
operating capital in the bingo account of a unit must be decreased
by an amount that is equal to the average unit member operating capital
by the last day of the calendar quarter immediately following the
unit member's withdrawal date.
(h) Recalculation of Operating Capital.
(1) A licensed authorized organization or unit that
files an original or amended quarterly report for a period used to
calculate its retained operating capital limit may submit a written
request to the Commission to re-calculate the limit.
(2) A request to re-calculate a retained operating
capital limit must include:
(A) the reason for the request identifying the specific
quarter that the original or amended quarterly report was filed; and
(B) the signature of the bingo chairperson if the request
is submitted by a licensed authorized organization, the unit manager
if the unit is managed by a unit manager, or the designated agent
if the unit is not managed by a unit manager.
(i) A licensed authorized organization or unit may
apply for an increase in its retained operating capital limit.
(j) The failure of a licensed authorized organization
or unit to receive notification from the Commission of its retained
operating capital limit by the effective date does not relieve the
organization or unit from complying with the retained operating capital
limit.
(k) All net proceeds in excess of the retained operating
capital limit must be disbursed in accordance with the Act and Rules.
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| Source Note: The provisions of this §402.451 adopted to be effective July 5, 2010, 35 TexReg 5820; amended to be effective August 1, 2016, 41 TexReg 5505; amended to be effective October 22, 2020 45 TexReg 7414; amended to be effective January 4, 2024, 48 TexReg 8369 |
