| (a) Definition. The following word or term, when used
in this chapter, shall have the following meaning, unless the context
clearly indicates otherwise: Detrimental charitable purpose waiver
(waiver)--A determination by the Commission authorized under §2001.451(k)
of the Act to exempt a licensed authorized organization from the
requirements of §2001.451 or §2001.457 of the Act because
compliance with the requirement(s) of these sections is detrimental
to the organization's existing or planned charitable purposes.
(b) Detrimental Charitable Purpose Waiver.
(1) A licensed authorized organization may submit to
the Commission an Application for Waiver to be exempt from the requirements
that:
(A) bingo operations must result in net proceeds over
the organization's license period; or
(B) a licensed authorized organization must disburse
the required amount of net proceeds for charitable purposes for a
specific calendar quarter.
(2) An application for a waiver under subsection (b)(1)
must include the following:
(A) the reason for the request;
(B) an explanation of how compliance with the requirement
is detrimental to the organization's existing or planned charitable
purposes;
(C) the specific calendar quarter or license year for
which the waiver is being requested, as applicable; and
(D) either of the following:
(i) a credible business plan for the organization's
conduct of bingo or the organization's existing or planned charitable
activities; or
(ii) if the request is due to force majeure as defined
in §402.453 of this subchapter, documentation from outside sources
supporting force majeure. Examples of acceptable documentation include
newspaper articles, copies of local ordinance changes, police or fire
department reports, notification of road construction, or photographs.
(3) A Credible Business Plan may, but is not required
to include the following:
(A) the specific activity or activities the organization
intends to undertake as they apply to the reason for the application
for waiver, including:
(i) a timeline for undertaking the activities that
is reasonable in light of the requested waiver period;
(ii) the cost of undertaking the activities and how
those costs will be managed;
(iii) whether the activity or activities may reasonably
be expected to increase the revenues of the organization;
(B) a description of the expenses, if any, that would
be avoided or reduced during the period for which the waiver would
be applicable; and
(C) an explanation of how the proposed activity or
activities will allow the organization to correct its financial difficulties
to ensure the bingo operations result in positive net proceeds.
(c) The Commission may request additional information
or documentation as needed to consider the application for a waiver.
(d) The licensed authorized organization or unit must
provide all information or documentation requested by the Commission
within 21 calendar days of notice from the Commission. Failure to
provide information or documentation requested by the Commission within
the time frame indicated may result in disapproval of the application.
(e) Criteria for Approval of Waiver Applications. The
Commission may consider the following in the approval of waiver applications:
(1) the credible business plan or force majeure that
necessitates the organization's not meeting the requirements of §2001.451
or §2001.457 of the Act;
(2) the amount of net proceeds from licensed authorized
organization's or unit's bingo operations during the past two years;
(3) the length of time the organization has conducted
bingo;
(4) the organization's history of compliance during
the two-year period prior to the application for the waiver; and
(5) other information that is relevant to a decision
whether to grant the application.
(f) Within 21 calendar days of receipt of the written
application for waiver and all required attachments and documentation,
the Commission will notify the organization or unit in writing of
its decision to approve or disapprove the application for a waiver.
(g) A business plan described by subsection (b)(3)
shall be presumed credible if:
(1) the application is the organization's first application
for a waiver of the net proceeds requirement in the three-year period
prior to the application, not including waiver requests made due to
force majeure; and
(2) the application is complete and sufficiently detailed
to allow the commission to evaluate whether administration of the
plan is reasonably within the organization's capabilities.
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| Source Note: The provisions of this §402.450 adopted to be effective July 5, 2010, 35 TexReg 5819; amended to be effective February 3, 2013, 38 TexReg 371; amended to be effective October 22, 2020, 45 TexReg 7414 |
