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TITLE 16ECONOMIC REGULATION
PART 9TEXAS LOTTERY COMMISSION
CHAPTER 402CHARITABLE BINGO OPERATIONS DIVISION
SUBCHAPTER DLICENSING REQUIREMENTS
RULE §402.404License and Registry Fees

(a) Definitions.

  (1) Application Escrow Account--A formal record of the debits and credits for application fees.

  (2) 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.

  (3) Regular License Fee Amount:

    (A) License to Conduct Bingo:

      (i) The annual fee for a license to conduct bingo that becomes effective before September 1, 2013, shall be an amount equal to the minimum license fee amounts based on annual gross receipts specified in Texas Occupations Code, §2001.104(a).

      (ii) The annual fee for a license to conduct bingo that becomes effective on or after September 1, 2013, 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) Commercial Lessor License:

      (i) The annual fee for a commercial lessor license that becomes effective before September 1, 2013, shall be an amount equal to the minimum license fee amounts based on annual gross rentals specified in Texas Occupations Code, §2001.158(a).

      (ii) The annual fee for a commercial lessor license that becomes effective on or after September 1, 2013 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) License to Conduct Charitable Bingo.

    (A) An initial license fee for an original license to conduct charitable bingo or an original license to lease bingo premises submitted by an authorized organization that does not have a license issued under the Bingo Enabling Act, must be paid from the organization's general fund bank account.

    (B) An applicant may be required to submit additional license fees if the estimated gross receipts used to calculate the license fee are not reasonable when compared to gross receipts of other organizations with the same number of occasions conducting bingo at the same bingo premises. If no such organizations exist, the Charitable Bingo Operations Division may use gross receipts amounts from organizations with the same number of occasions conducting bingo at similarly situated bingo premises. These amounts are used to establish the gross receipts amount upon which the applicant's license fee is based and must be submitted.

  (2) 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.

  (3) 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) Changes Within Six Months of a Licensed Authorized Organization's License Term.

  (1) An organization shall re-estimate its annual gross receipts and submit any balance due in license fee amount if there is an increase in the number of bingo occasions conducted within six months of the issuance of the original license to conduct bingo.

  (2) 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:

    (A) the number of organizations conducting bingo at a licensed location; and

    (B) 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 conduct bingo or 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 conduct bingo or license to lease bingo premises that is in administrative hold, the organization may submit a renewal fee of $132 in lieu of the recalculated fee amount from the preceding license period.

  (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;

    (B) rental amount per occasion; or

    (C) increase in the number of occasions bingo is conducted.

  (5) If an organization requests its license be placed in administrative hold upon the renewal of the license and submits an estimated Class A license fee, the Commission may require an organization to submit an additional license fee when it files an application to amend a license to conduct charitable bingo if the organization amends its license to begin conducting bingo within the first six months of the license term.

  (6) 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 an estimated Class A license fee, the Commission may require the commercial lessor or licensed authorized organization to submit an additional license fee when it files the application to amend a commercial license to lease bingo premises if the commercial lessor or licensed authorized organization amends its license to begin leasing bingo premises within the first six months of the license term.

(e) Two-Year License Fee Payments.

  (1) An applicant for a license issued under the Bingo Enabling Act 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)(3).

  (2) Two-Year License to Conduct Bingo or to Lease Bingo Premises Issued Before September 1, 2013:

    (A) To be timely received, the full license fee payment for the second year of a two year license must be postmarked no later than the first anniversary of the date the license became effective. A license fee payment bearing no legible postmark, postal meter date, or date of delivery to the common carrier may be considered to have been sent seven calendar days before receipt by the Agency, or on the date of the check, if the check date is less than seven days earlier than date of receipt. If the first anniversary of the date the license became effective falls on a Saturday, Sunday, or legal holiday, the payment will be due the next day which is not a Saturday, Sunday, or legal holiday.

    (B) An organization that places its license on administrative hold during the first year of a two year license period and elected to pay the second year by the first anniversary of the license effective date may pay an estimated license fee of $132 for the second year of the license period.

    (C) If the first anniversary of the date a two-year license became effective falls on or after September 1, 2013, the fee amount due for the second year of that license will be the amount set in §402.404(a)(3)(A)(ii) or §402.404(a)(3)(B)(ii).

(f) Regular License Fee Recalculation.

  (1) For the purpose of determining the license fee 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 fee recalculation for a two year license to conduct bingo or 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 fees. The annual gross receipts or gross rental income, as applicable, 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 fee apportioned to a unit member will be calculated by dividing the unit's gross receipts by the total number of members during the quarter unless the accounting unit bases its distribution of proceeds on the number of occasions.

  (4) For accounting units who base their distribution of proceeds on the number of occasions a member conducts, the gross receipts used to recalculate the license fee apportioned to a unit member will be calculated by dividing the unit's gross receipts by the total number of occasions conducted by all unit members and then multiplying by the number of occasions reported by the unit member.

  (5) If a quarterly return is due less than 50 days prior to a license expiration, the gross receipts or gross rental income reported on that return will not be available to be used to calculate the annual gross receipts or gross rental income. Instead, the gross receipts or gross rental income reported on the four immediately preceding quarterly returns, as applicable, will be used to recalculate the organization's license fee.

  (6) 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 estimate the quarterly gross receipts or gross rental income for the missing quarter(s) to recalculate the organization's license fee.

    (A) The estimated annual gross receipts are determined by calculating the average gross receipts per occasion reported on the returns filed for the license period and multiplying by the number of occasions licensed per week and then multiplying by 52.

    (B) The estimated gross rental income per quarter is determined by adding the gross rental income reported on the returns filed in the license period and dividing this number by the number of returns filed. The resulting number would then be multiplied by four to calculate the organization's license fee and to estimate the second year license fee of a two year license.

  (7) License no longer exists.

    (A) Notwithstanding the fact that an organization conducted bingo under a license that ceased to exist for whatever reason, the organization must submit the recalculated license fee for the period that the organization conducted bingo and collected gross receipts.

Cont'd...

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