16 Tex. Admin. Code § 402.205

Current through Register Vol. 49, No. 48, November 29, 2024

Section 402.205 - Unit Agreements

(a) Definition. The following term, when used in this section, shall have the following meaning: Unit Agreement--A unit accounting agreement or a trust agreement forming a unit.

(b) A trust agreement forming a unit must contain all required elements of a unit accounting agreement as specified under §2001.431(3) of the Act.

(c) Prior to operating as a unit, the unit must submit to the Commission a Texas Notice of Unit Accounting form and a copy of the executed unit agreement.

(d) Organizations may not act as a unit until all member organizations are licensed.

(e) A designated agent or unit manager must submit a Texas Notice of Change for Accounting Unit form and an amended unit agreement to the Commission seven calendar days prior to the date of a change in unit management.

(f) A unit may appoint a designated agent who must be a natural person.

(1) A designated agent for a unit must be current in the training required under §2001.107 of the Act and § RSA 402.103 of this title (relating to Training Program).

(2) A bookkeeper may be a business contact for a commercial lessor and a designated agent for an accounting unit provided that the bookkeeper is not an employee of the commercial lessor.

(g) The original unit or trust agreement must contain the following information:

(1) the unit member's taxpayer name which is the name on the organization's organizing instrument or the name of the organization as stated on its license to conduct bingo;

(2) the eleven-digit taxpayer number on file with the Commission;

(3) the designated agent information;

(4) the trustee organization if a trust agreement;

(5) whether inventory was transferred to the unit;

(6) the street address where the records of a dissolved unit will be maintained for the required four year retention period unless the unit agreement specifies that each unit member will receive a copy of the unit records;

(7) the method by which net proceeds and charitable purpose disbursements will be apportioned among the members;

(8) the length of time allowed for the distribution of funds, records, and inventory and allocation of authorized expenses and liabilities on dissolution or withdrawal of a member of the unit;

(9) the method of determining the amount of payment for inventory or disposition of inventory for dissolution or withdrawal of a member of the unit; and

(10) a unit agreement must be signed by the unit member organization's bingo chairperson or other officer or director.

(h) An organization joining a unit and possessing inventory must provide to the Commission a complete list of the inventory it has transferred to the unit within thirty (30) calendar days of joining the unit. It is the responsibility of the organization to ensure that the Commission timely received the inventory list.

(i) A written inventory of bingo equipment and supplies must include the following:

Attached Graphic

(j) Amendment to a unit agreement must contain:

(1) name of the unit;

(2) effective date of the change;

(3) specific section of the unit agreement being changed;

(4) new terms of the agreement which are in compliance with the Act and the Rules;

(5) signature of the bingo chairperson or other officer or director for each of the current unit members; and

(6) statement which binds the amendment to the original unit agreement creating one document unless the entire unit agreement is re-stated.

(k) A unit must submit an amended unit agreement within thirty (30) calendar days of the effective date of any change to the Act or the Rules which would affect the agreement's compliance with the new Act or Rules.

(l) If a unit agreement or an amendment to a unit agreement is found not to be in compliance with the Act or the Rules, the unit will have thirty (30) calendar days after being notified by the Commission to provide a revised compliant unit agreement or compliant amendment to a unit agreement.

(m) At the time when only one unit member remains in the unit, the designated agent will dissolve the unit within thirty (30) calendar days or the Commission will dissolve the unit.

16 Tex. Admin. Code § 402.205

The provisions of this §402.205 adopted to be effective November 19, 2008, 33 TexReg 9223; amended to be effective April 24, 2011, 36 TexReg 2386; amended to be effective September 13, 2012, 37 TexReg 7094; Amended by Texas Register, Volume 41, Number 31, July 29, 2016, TexReg 5515, eff. 8/1/2016