SB 2218

relating to regulating charitable bingo and authorizing the
establishment of a nonprofit corporation to advertise and promote
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 2001.407, Occupations Code, is amended
by amending Subsection (c) and adding Subsections (c-1), (c-2), and
(c)  Except as provided by Subsection (c-1), a [A] licensed
distributor may not receive by purchase or otherwise bingo
equipment or supplies from a person other than a licensed
manufacturer or another licensed distributor.
(c-1)  A licensed distributor may receive bingo equipment or
supplies from a licensed authorized organization if:
(1)  the distributor delivered the equipment or
supplies to the organization; and
(2)  the equipment or supplies were:
(B)  not ordered by the organization; or
(C)  delivered in a quantity that exceeds the
quantity the organization ordered.
(c-2)  A licensed authorized organization that returns bingo
equipment or supplies to the licensed distributor as provided by
(1)  maintain a record specifying for each returned
(A)  a reason for the return from the reasons
listed in Subsection (c-1)(2); and
(B)  the quantity returned; and
(2)  provide a copy of the record to the distributor.
(c-3)  A licensed distributor that receives returned
equipment or supplies from a licensed authorized organization as
provided by Subsection (c-1) shall:
(1)  maintain a record showing receipt of the returned
(2)  provide a copy of the record to the organization.
SECTION 2.  Section 2001.415, Occupations Code, is amended
Sec. 2001.415.  ADVERTISEMENTS.  (a)  A person other than a
licensed authorized organization, licensed commercial lessor,
nonprofit corporation formed under Section 2001.4151, or the
commission may not advertise bingo.
(b)  A licensed authorized organization, licensed commercial
lessor, nonprofit corporation formed under Section 2001.4151, or
the commission may include in an advertisement or promotion:
(1)  the total amount of bingo prizes offered
(2)  the amount of a prize or series of prizes offered
SECTION 3.  Subchapter I, Chapter 2001, Occupations Code, is
amended by adding Section 2001.4151 to read as follows:
Sec. 2001.4151.  ESTABLISHMENT OF NONPROFIT CORPORATION.
(a)  A statewide organization in existence before January 1, 2024,
that as of that date has as its principal purpose assisting licensed
authorized organizations, units as defined by Subchapter I-1,
licensed commercial lessors, and licensed bingo distributors and
licensed bingo manufacturers in furthering the interests of
charitable bingo may form a nonprofit corporation governed by
Chapter 22, Business Organizations Code, to carry out the purposes
described in this section. For purposes of this subsection, an
organization is a statewide organization if the organization's
membership includes multiple licensed authorized organizations
that collectively have primary business offices in at least 15
(b)  A nonprofit corporation formed under this section may
accept money remitted to the corporation by a licensed authorized
organization under Section 2001.502(b-1).
(c)  Subject to Subsection (d), a nonprofit corporation
formed under this section may spend money accepted under Subsection
(1)  advertising and promotional activities to inform
the public about charitable bingo, including:
(A)  the purposes for which charitable bingo is
(B)  the types of charities benefiting from
(C)  the locations where and times when charitable
(D)  the types of games conducted at charitable
(E)  the amount of a prize or series of prizes that
may be offered at a bingo occasion;
(2)  legal and accounting services;
(6)  other necessary expenses related to the purposes
(d)  A nonprofit corporation formed under this section:
(1)  may only spend money under this section in
accordance with the plan adopted by the board of the corporation
(2)  may not spend any money until the date the
corporation provides the notice required by Subsection (j).
(e)  At least annually, the board of a nonprofit corporation
formed under this section shall adopt a plan for the corporation to
(f)  A nonprofit corporation established under this section
(1)  Chapter 151, Tax Code; and
(g)  A nonprofit corporation formed under this section may
not use money accepted under Subsection (b) to make:
(1)  a campaign contribution, as defined by Section
(2)  a direct campaign expenditure, as defined by
Section 251.001, Election Code;
(3)  a political expenditure, as defined by Section
(4)  an expenditure for political advertising, as
defined by Section 251.001, Election Code; or
(5)  an expenditure to influence legislative subject
matter or administrative action as described in Chapter 305,
(A)  to compensate or reimburse a person required
to register under Section 305.003, Government Code; or
(B)  for legislative advertising, as defined by
Section 305.027, Government Code.
(h)  Nothing in this section prohibits a nonprofit
corporation formed under this section from accepting and spending
money from sources other than bingo prize fees.
(i)  A nonprofit corporation formed under this section shall
maintain books and records as required by state and federal law.
(j)  A nonprofit corporation formed under this section
commences business on the date the corporation's board adopts an
initial annual plan under Subsection (e). On that date, the
corporation shall provide notification of the corporation's
(2)  each licensed authorized organization that
remitted money to a county or municipality under Section
(k)  A nonprofit corporation formed under this section may
(2)  as a commercial lessor, bingo distributor, or
SECTION 4.  Section 2001.451(h), Occupations Code, is
(h)  Except as provided by Subsection (j), a licensed
authorized organization or a unit of licensed authorized
organizations may retain operating capital in the organization's or
unit's bingo account in an amount that:
(1)  is equal to the organization's or unit's actual
average bingo expenses per quarter based on the preceding license
period, excluding prizes paid; and
(2)  does not exceed a total of $75,000 [$50,000] for a
single organization or $75,000 [$50,000] for each member of a unit
(A)  the commission by rule establishes a higher
amount for all organizations or units or one or more classes of
(B)  the bingo operations director, on request,
raises the operating capital limit for one organization or unit as
necessary to facilitate the operation of the organization or unit.
SECTION 5.  Section 2001.502, Occupations Code, is amended
by amending Subsections (a) and (b) and adding Subsection (b-1) to
(a)  A licensed authorized organization or unit as defined by
(1)  collect from a person who wins a cash bingo prize
of more than $100 [$5] a fee in the amount of five percent of the
(2)  except as otherwise provided by this section,
remit to the commission the amount of the fee collected under
(b)  Notwithstanding Subsection (a)(2) and subject to
Subsection (b-1), each quarter, a licensed authorized organization
or unit that collects a prize fee under Subsection (a) for a bingo
game conducted in a county or municipality that was entitled to
receive a portion of a bingo prize fee as of January 1, 2019, shall
remit 50 percent of the amount collected as the prize fee to the
commission and shall remit or deposit the remainder of the amount
collected as the prize fee as follows:
(1)  if the county in which the bingo game is conducted
voted before November 1, 2019, to impose the prize fee and the
location at which the bingo game is conducted:
(A)  is not within the boundaries of a
municipality, remit 50 percent of the amount collected as the prize
(B)  is within the boundaries of a municipality
(i)  voted before November 1, 2019, to
impose the prize fee, remit 50 percent of the amount collected as
the prize fee in equal shares to the county and municipality; or
(ii)  did not vote before November 1, 2019,
to impose the prize fee, remit 25 percent of the amount collected as
the prize fee to the county and deposit the remaining amount in the
manner described by Subdivision (3);
(2)  if the county in which the bingo game is conducted
did not vote before November 1, 2019, to impose the prize fee and
the location at which the bingo game is conducted is within the
boundaries of a municipality that voted before November 1, 2019, to
(A)  remit 25 percent of the amount collected as
the prize fee to the municipality; and
(B)  deposit the remaining amount in the manner
described by Subdivision (3); and
(3)  if neither the county or municipality in which the
bingo game is conducted voted before November 1, 2019, to impose the
prize fee, deposit the remainder of the amount collected as the
prize fee in the general charitable fund of the organization or on a
pro rata basis to the general funds of the organizations comprising
the unit, as applicable, to be used for the charitable purposes of
the organization or organizations.
(b-1)  A licensed authorized organization or unit that
collects a prize fee under Subsection (a) for a bingo game conducted
in a county or municipality entitled to receive a portion of a bingo
prize fee as of January 1, 2019, may reduce the amount remitted
under Subsection (b)(1) or (2) by an amount not to exceed 15 percent
of the total amount remitted to the applicable county or
municipality by the licensed authorized organization or unit in
2023. The licensed authorized organization or unit shall remit the
amount remaining after the remittance to the applicable county or
municipality to, and the amount remaining may be accepted by, a
nonprofit corporation formed under Section 2001.4151. If the
nonprofit corporation does not accept the amount remitted under
this subsection, the licensed authorized organization or unit shall
remit the amount in the manner provided by Subsection (b).
SECTION 6.  (a) Except as provided by Subsection (b), this
Act takes effect September 1, 2025.
(b)  Section 5 of this Act takes effect October 1, 2025.