16 Tex. Admin. Code § 402.203 - Unit Accounting
(a) The
provisions of this rule relate only to the accounting, reporting and operation
of units in accordance with the Bingo Enabling Act and this chapter. Nothing in
this rule shall be construed as a grant of authority or waiver of
responsibility under federal law, including tax law, and other state
law.
(b) Definitions. In addition
to the definitions provided in §
402.100 of this chapter, and
unless the context in this section otherwise requires, the following
definitions apply:
(1) Default--The term used
to describe the status of a licensed authorized organization that does not
timely pay for the sale or lease of bingo supplies or equipment as provided in
Occupations Code, §
2001.218.
(2) Net proceeds--The unit's gross receipts
from bingo and gross rental income, if applicable, less prizes awarded and
authorized expenses.
(c)
Each unit will be assigned an identification number by the
Commission.
(d) If a unit dissolves
and starts another unit with the same organizations, for all intent and
purposes, it is the same unit and is responsible for all liabilities and
distributions owed by the prior unit.
(e) Unit Representation.
(1) All units, with the exception of a unit
with a Unit Manager, must name a designated agent who is responsible for
providing the Commission access to all inventory and financial records of the
unit on request by the Commission.
(2) It is the responsibility of the unit's
designated agent to provide information to the Commission on:
(A) the unit agreement or trust
agreement;
(B) submission of all
required forms;
(C) unit Quarterly
Report; and
(D) unit's bingo
records.
(3) The
designated agent will make available all unit accounting records to any member
of a licensed authorized organization whose organization is a member of the
accounting unit within thirty (30) calendar days of the request.
(4) The designated agent will provide a copy
of all unit accounting records to the bingo chairperson of a licensed
authorized organization whose organization was a member of the accounting unit
within thirty (30) calendar days of the date of separation.
(f) Unit's Use of Proceeds.
(1) All distributions of net proceeds of the
unit shall be paid from the unit's bingo account to the account designated by
the unit member. Each unit member is required to maintain adequate records
establishing that the use of such net proceeds is in accordance with
Occupations Code §
2001.454.
(2) All prize fees collected in accordance
with Occupation Code, §2001.502 must be deposited in the unit's bingo
account and paid from the unit's bingo account.
(g) Unit Transactions.
(1) Upon prior written consent by the
Commission:
(A) a licensed authorized
organization may make a sale of bingo cards, a used bingo flash board or blower
to a unit;
(B) a unit may make a
sale of bingo cards, a used bingo flash board or blower to a licensed
authorized organization; or
(C) a
unit may make a sale of bingo cards, a used bingo flash board or blower to
another unit.
(2) Within
thirty (30) calendar days of initially joining a unit, the licensed authorized
organization shall notify the Commission of the bingo cards and pull-tab bingo
tickets transferred to the unit.
(3) If a member of a unit is in default, a
person may not sell or transfer bingo equipment or supplies to the unit on
terms other than immediate payment on delivery.
(h) Unit Recordkeeping.
(1) Each unit must file a quarterly report
and any required supplements on forms prescribed by the Commission and maintain
records to substantiate the contents of the reports.
(2) The unit must adhere to all applicable
recordkeeping requirements in the Bingo Enabling Act and Charitable Bingo
Administrative Rules.
(3) A member
of a unit which is also licensed as a commercial lessor must report its rental
income on the unit quarterly report.
(4) Each unit must maintain a log for each
bingo occasion indicating the following:
(A)
date of the occasion;
(B) licensed
authorized organization conducting the bingo occasion; and
(C) operator on
duty.
(i) Unit
Bingo Account.
(1) The unit must establish
and maintain one checking account designated as the "bingo account." The unit
must maintain the "bingo account" in compliance with the same provisions of the
Bingo Enabling Act and Charitable Bingo Administrative Rules applicable to a
licensed authorized organization.
(2) The face of the checks must list the name
of the unit, the words "Bingo Account", and the unit's identification
number.
(3) Only the following may
be deposited into the unit's bingo account:
(A) proceeds from the conduct of
bingo;
(B) rent payments received
by a unit member that is also a licensed commercial lessor; and
(C) funds transferred by new members or funds
transferred in accordance with §
402.202 of this subchapter
(relating to Transfer of Funds).
(4) A separate deposit must be made for each
bingo occasion conducted. Additionally, all sales and prizes must be recorded
in accordance with the rules.
(5)
All prize fees must be paid from the unit bingo account.
(j) Transfer of Funds to the Unit Account by
new Members.
(1) A licensed authorized
organization joining a unit may transfer funds from its previous bingo account
into the unit bingo account at the time:
(A)
the unit is formed;
(B) within 60
days of joining an existing unit;
(2) Any additional funds transferred to the
unit bingo account must comply with §
402.202 of this
subchapter.
(3) Funds previously
reported on a bingo quarterly report as charitable distributions may not be
transferred to the unit bingo account.
(4) All net proceeds remaining in the
organization's former bingo account at the time it joins a unit must:
(A) be disbursed by the last day of the
quarter following the date the organization joined the unit; or
(B) transferred to the unit bingo account in
accordance with paragraph (1) of this subsection.
(5) At the time an organization joins a unit,
all of its bingo expenses must be paid from the unit bingo account including
outstanding bingo expenses and subsequent expenses. The total amount of
outstanding bingo expenses should be included in the amount of funds
transferred at the time the unit is formed or at the time of joining an
existing unit.
(6) If a unit member
does not have sufficient funds to cover outstanding bingo expenses or the
amount required to join the unit, the unit member's portion of the charitable
distribution may be reduced until these obligations have been satisfied. This
business practice may be used provided that:
(A) the exact terms are reflected in the unit
agreement;
(B) a copy of the unit
agreement is provided to the Commission; and
(C) the unit meets the charitable
distribution requirement.
(7) If the organization transferred funds
from its previous bingo account into the unit bingo account, the funds must be
reported on the unit's "Texas Bingo Quarterly Report" for the quarter they were
transferred and on the last "Texas Bingo Quarterly Report" the organization
filed as a non-unit member.
(8) An
organization that is required to file a Texas Bingo Quarterly Report for a
period prior to joining a unit must file a Final Disposition of Bingo Proceeds
in Bank Account reporting the final disposition of all proceeds in its bingo
account. The form must be submitted with the unit's "Texas Bingo Quarterly
Report" for that quarter and would be subject to all "Texas Bingo Quarterly
Report" filing deadlines, requirements and penalties.
(k) Distribution of Funds Upon Withdrawal or
Dissolution.
(1) An organization receiving a
distribution of funds from the unit's bingo account upon leaving the unit, must
classify the distribution as a charitable distribution on the unit's "Texas
Bingo Quarterly Report".
(2) Funds
distributed as a charitable distribution must be used for the charitable
purpose of the organization in accordance with the Bingo Enabling Act and
Charitable Bingo Administrative Rules and may not be used to join another
unit.
(3) A licensed authorized
organization joining or withdrawing from a unit at any time other than at the
beginning or ending of a reporting quarter is responsible for filing a separate
quarterly report for bingo activities conducted apart from the
unit.
(l) Responsibilities
of Unit Members.
(1) Each unit member
organization is responsible for administering its own bingo occasions and for
any violations of the Bingo Enabling Act or Charitable Bingo Administrative
Rules that may take place.
(2) Each
unit member organization is responsible for maintaining and retaining the bingo
records relating to all aspects of its occasions up to and including the point
at which the deposit is made into the unit's bingo account.
(3) Each unit member organization is liable
for any bingo cash shortages, inventory shortages, or missing or deficient
occasion deposits occurring in association with its bingo occasion
conducted.
(4) Each unit member
organization is responsible for distributing the bingo proceeds received from
the unit for its authorized charitable purposes.
(5) If a unit demonstrates that a violation
of this subchapter or commission rules is wholly attributable to a specific
licensed authorized organization member or members of the unit, a penalty for
the violation may not be imposed on a unit member to which the violation is not
attributable and the penalty imposed on a unit member to which the violation is
attributable may not be in an amount greater than the amount initially assessed
against each unit member.
Notes
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