16 Tex. Admin. Code § 402.603
Current through Register Vol. 49, No. 48, November 29, 2024
Section 402.603 - Bond or Other Security(a) Bond or Other Security Required. (1) An applicant for a regular license to conduct charitable bingo must submit security consistent with the provisions of this section. A licensed authorized organization must maintain the security until the organization ceases to conduct bingo and the license is relinquished or revoked. (A) Except as otherwise provided in this section, the security amount for a regular license to conduct charitable bingo is based on the license class. The security amount is: (vi) Class F - $1,800.00.(vii) Class G - $2,125.00.(viii) Class H - $2,675.00.(ix) Class I - $3,275.00.(B) If at any time a licensed authorized organization fails to fully pay its requisite prize fees by the due date and a jeopardy determination becomes final, then the organization's security amount may be calculated at three times its highest quarterly prize fee for the four most recent quarters or for the highest quarter filed if less than four.(C) If a licensed authorized organization has fully paid all prize fees and associated penalties, if any, prior to a final jeopardy determination for eight (8) consecutive quarters, the amount of the requisite security will be reduced to $100.00. If at any time an organization paying the reduced security amount fails to fully pay its requisite prize fees and any associated penalties and interest by the due date and a jeopardy determination becomes final, then the Commission may calculate the organization's security amount in accordance with § 402.603(a)(1)(A) or (B) of this chapter.(2) An applicant for a manufacturer's license must submit a cash bond or bond in the amount of $10,000 issued by a surety company chartered or authorized to do business in this state. A licensed manufacturer must maintain the bond until the license is relinquished or revoked.(3) Accounting Units. (A) An accounting unit may submit and maintain one bond or other security to cover each of the unit's member organizations. Except as otherwise provided in this section, the amount of the security shall be the aggregate of each unit member organization's security amount, as set in § 402.603(a)(1) of this chapter. If a unit member organization subsequently withdraws or is removed from the unit, that organization is responsible for obtaining and maintaining the requisite security.(B) If at any time an accounting unit fails to fully pay its requisite prize fees by the due date and a jeopardy determination becomes final, the unit's security amount may be calculated at three times the unit's highest quarterly prize fee liability for the four most recent quarters or for the highest quarter filed if less than four. The financial obligation for such security shall be divided equally among the organizations that were in the unit at the time of the prize fee delinquency. If a unit member organization withdraws or is removed from such a unit, that organization's security amount shall be equivalent to its share of the unit's security amount, and the unit's security amount may be reduced by an amount equivalent to the exiting organization's share. If another organization subsequently joins such a unit, the unit's security amount will increase by the amount of the newly-joined organization's security amount.(b) Types of bonds or other security. The Commission will accept only the following types of bonds or other security as security for the payment of prize fees: (1) Cash or check made payable to the state comptroller. Cash security will not earn interest for the licensee.(2) Irrevocable assignments of accounts, including certificates of deposit or certificates of savings, in banks, savings and loan institutions, and credit unions, whose deposits are insured by an agency of the United States government. This security must be executed on an assignment form approved by the Commission.(3) Letters of credit from financial institutions.(4) United States Treasury bonds, readily convertible to cash.(5) Surety bonds executed on a form approved by the Commission and issued only by a surety company chartered or authorized to do business in the State of Texas. The appointing instrument must be properly notarized and physically attached to the bond.(c) Forfeiture. (1) If a licensed authorized organization or accounting unit pays less than the total amount of prize fee due, the Commission shall notify the licensed authorized organization or accounting unit of the delinquency via the "Texas Notice of Fee Due and Jeopardy Determination" for the quarter in which the liability exists.(2) If the licensed authorized organization or accounting unit does not make the required payment by the date stated in the notice provided under subsection (c)(1), the Commission will demand the bond or other security or any part of the bond or other security from the holder of the bond or other security necessary to pay the amount of prize fee due.(3) The Commission will notify the licensed authorized organization or accounting unit and demand that a new or additional bond or other security for the specified amount be furnished within 20 days of the date of such notice. Failure to comply with the requirements of the notice within the 20 day period will result in the denial of an application for renewal or revocation of the license.(d) Release of Bond or Other Security. The Commission will release a bond or other security upon the relinquishment or revocation of the license for which the security was furnished, provided that the Commission determines that no prize fee, penalty, or interest remains due and payable. The Commission will notify the former licensee in writing that the security has been released. If an accounting unit maintains one bond or other security for its member organizations, and one or more of the unit member's licenses are relinquished or revoked, then the Commission will notify the accounting unit in writing that its security amount may be reduced to an amount sufficient to cover only current unit members.16 Tex. Admin. Code § 402.603
The provisions of this §402.603 adopted to be effective May 10, 2007, 32 TexReg 2467; Amended by Texas Register, Volume 41, Number 31, July 29, 2016, TexReg 5539, eff. 8/1/2016; Amended by Texas Register, Volume 42, Number 51, December 22, 2017, TexReg 7402, eff. 12/31/2017