ment Records Requirements, Required Inventory Records, and Elec-
tronic Fund Transfers. Subchapter F (Payment of Taxes, Prize Fees
and Bonds) sets forth rules relating to Bingo Reports, Interest on Delin-
quent Tax, Waiver of Penalty, Settlement of Prize Fees, Rental Tax,
Penalty and/or Interest, Bond or Other Security, and Delinquent Pur-
chaser. Subchapter G (Compliance and Enforcement) sets forth rules
relating to Denials; Suspensions; Revocations; Hearings, Investigation
of Applicants for Licenses, Books and Records Inspection, Tax Review
Inspection, Standard Administrative Penalty Guideline, Expedited Ad-
ministrative Penalty Guideline, Dispute Resolution, Corrective Action,
and Compliance Audit.
As a result of the Commission's rule review, the Commission has
concluded that some of the rules in Chapter 402 need to be amended
in order to reflect current legal and policy considerations, and current
procedures of the Commission. Specifically, the sections of Chapter
402 that need to be amended are: 402.100 (Definitions), 402.103
(Training Program), 402.200 (General Restrictions on the Conduct of
Bingo), 402.202 (Transfer of Funds), 402.203 (Unit Accounting),
402.204 (Prohibited Price Fixing), 402.205 (Unit Agreements),
402.303 (Pull-tab or Instant Bingo Dispensers), 402.400 (Gen-
eral Licensing Provisions), 402.402 (Registry of Bingo Workers),
402.420 (Qualifications and Requirements for Conductor's Li-
cense), 402.450 (Request for Waiver), 402.451 (Operating Capital),
402.452 (Net Proceeds), 402.453 (Request for Operating Capital
Increase), 402.503 (Bingo Gift Certificates), 402.600 (Bingo Re-
ports), 402.603 (Bond or Other Security), 402.701 (Investigation of
Applicants for Licenses), 402.706 (Standard Administrative Penalty
Guideline), 402.707 (Expedited Administrative Penalty Guideline),
and 402.708 (Dispute Resolution). The Commission will propose the
amendments to each of these rules in separate rulemaking actions.
Also as a result of the Commission's rule review, staff has concluded
that the reasons for adopting 402.703 (Books and Records Inspec-
tion), 402.704 (Tax Review Inspection), and 402.715 (Compliance Au-
dit) no longer exist. Section 402.703 and 402.704 are no longer nec-
essary because the activities contained in these two rules are no longer
performed by the Charitable Bingo Operations Division as a result of
a change in audit methodology. Finally, 402.715 is no longer nec-
essary because the new audit methodology has changed the processes
contained in this rule.
This review and readoption has been conducted in accordance with
Texas Government Code 2001.039. The Commission received no
comments on the proposed review, which was published in the August
26, 2011, issue of the Texas Register (36 TexReg 5417).
This concludes the review of 16 TAC Chapter 402.
Kimberly L. Kiplin
Texas Lottery Commission
Filed: October 20, 2011
RULE REVIEW November 4, 2011 36 TexReg 7573
Texas. Secretary of State. Texas Register, Volume 36, Number 44, Pages 7417-7610, November 4, 2011. Austin, Texas. The Portal to Texas History. http://texashistory.unt.edu/ark:/67531/metapth193249/. Accessed December 25, 2014.