Section 402.404 - License Classes and Fees(a) Definitions. (1) License period--For purposes of Texas Occupations Code § 2001.158, the term "license period" means the eight (8) full calendar quarters immediately preceding the license end date.(2) Regular License Classes and Applicable Fee Amount: (A) The annual fee for a commercial lessor license shall be as follows: (i) Class A (annual gross rentals from licensed organizations of not more than $12,000) - $132;(ii) Class B (annual gross rentals from licensed organizations of more than $12,000 but not more than $20,000) - $264;(iii) Class C (annual gross rentals from licensed organizations of more than $20,000 but not more than $30,000) - $396;(iv) Class D (annual gross rentals from licensed organizations of more than $30,000 but not more than $40,000) - $528;(v) Class E (annual gross rentals from licensed organizations of more than $40,000 but not more than $50,000) - $792;(vi) Class F (annual gross rentals from licensed organizations of more than $50,000 but not more than $60,000) - $1,188;(vii) Class G (annual gross rentals from licensed organizations of more than $60,000 but not more than $70,000) - $1,584;(viii) Class H (annual gross rentals from licensed organizations of more than $70,000 but not more than $80,000) - $1,980;(ix) Class I (annual gross rentals from licensed organizations of more than $80,000 but not more than $90,000) - $2,640;(x) Class J (annual gross rentals from licensed organizations of more than $90,000) - $3,300.(B) Manufacturer's License. The annual fee for a manufacturer's license shall be $3,000.(C) Distributor's License. The annual fee for a distributor's license shall be $1,000.(b) Original License Application. (1) Commercial License to Lease Bingo Premises.(A) License fees for an original license to lease bingo premises submitted by an authorized organization licensed to conduct bingo must be paid from the organization's bingo bank account.(B) An applicant may be required to submit additional license fees if the estimated gross rental income used to calculate the license fee is not reasonable when compared to the gross rental income at similarly situated bingo premises. These comparative amounts are used to establish the gross rental income amount upon which the applicant's license fee is based and must be submitted.(2) Understating the anticipated gross receipts or rental income from a licensed activity for any purpose by an applicant or licensed entity may be grounds for administrative disciplinary action against the licensee.(c) An organization shall re-estimate its annual gross rental income and submit any balance due in license fee amount if there is an increase within six months of the issuance of the original lessor license in: (1) the number of organizations conducting bingo at a licensed location; and(2) the number of bingo occasions conducted at the licensed location.(d) License Renewal Fee. (1) The amount of license fee to be paid upon renewal of a license to lease bingo premises is the recalculated license fee amount calculated for the preceding license period.(2) If the recalculation of the license fee amount for the previous license period reflects an underpayment of the license fee amount for that license period, the incremental difference must be submitted by the organization within 30 days of the license expiration date and before the license may be renewed.(3) Upon written request by an organization to renew its license to lease bingo premises that is in or going in administrative hold, the organization shall pay a Class A license renewal fee, plus any amount due under paragraph (2) of this subsection, in lieu of the recalculated fee amount from the preceding license period. There is no renewal license fee for an organization renewing its license to conduct bingo that is in or going in administrative hold, but the license-class-related amount used solely by the Commission to estimate the pro rata local share of prize fees related to a license to conduct bingo for such an organization is a Class A fee amount.(4) The Commission may require an amount of license fee in addition to the recalculated fee at renewal if there is a change in: (B) rental amount per occasion.(5) If a commercial lessor or a licensed authorized organization which leases bingo premises requests its license be placed in administrative hold upon the renewal of its lessor license and submits the requisite fee as set in paragraph (3) of this subsection, the Commission may require the commercial lessor to submit an additional license fee when it files the application to amend a commercial license to lease bingo premises, if the commercial lessor amends its license to begin leasing bingo premises within the first six months of the license term.(e) Two-Year License Fee Payments. An applicant for a commercial lessor license that is effective for two years must pay an amount equal to two times the amount of the annual license fee, as set in §402.404(a)(2).(f) Regular License Class Recalculation. (1) For the purpose of determining the license class recalculation for a license to conduct bingo or license to lease bingo premises, the annual gross receipts or gross rental income, as applicable, shall be based on the four consecutive quarterly returns due immediately prior to the license expiration date.(2) For the purposes of determining the license class recalculation for a two year license to lease bingo premises, each year of the license period shall be recalculated separately. The final recalculated fee will be the total of the yearly license classes and their associated fees. The annual gross rental income shall be based on the four consecutive quarterly returns due immediately prior to the first year period and the four consecutive quarterly returns due immediately prior to the license expiration date of the second year period.(3) For accounting units, gross receipts used to recalculate the license class apportioned to a unit member will be calculated by dividing the unit's gross receipts by the total number of members during the quarter.(4) If an organization fails to file a report for one or more quarter(s) of the license period, or if there are not four quarters available for any other reason, the Commission shall average the quarterly gross receipts or gross rental income for the quarter(s) reported to determine the organization's license class.(5) License no longer exists.(A) Notwithstanding the fact that an organization which leased bingo premises under a license that ceased to exist for whatever reason, the organization must submit the recalculated license fee for the period that the organization leased the premises and collected gross rental income.(B) If an organization ceases to be licensed for whatever reason, all gross receipts or gross rental income collected (from the period after the last quarterly return used to recalculate the license class for the prior year) is used to recalculate the final license class, and if appropriate, any fee due. If the organization fails to file a return for any required period(s), an estimated return will be used. The organization shall submit any balance due after license class recalculation.(6) The Commission may recalculate license classes for up to four consecutive immediately preceding license periods if a change in an organization's reported gross receipts or gross rental income occurs as a result of an audit, or if the original recalculation was determined by using estimated gross receipts or gross rental income.(7) If there is a change in an organization's reported gross receipts or gross rental income, the organization may submit a written request to the Charitable Bingo Operations Division to recalculate its license class for up to four immediately preceding license periods.(g) Overpayment of License Fee. (1) An overpayment of a commercial lessor's annual license fee may occur either through a recalculation of the license fee pursuant to subsection (f) of this section, or if a licensee mistakenly submits more money than is actually required for the license fee(s). An overpayment of a manufacturer's or distributor's annual license fee occurs if a licensee mistakenly submits more money than is actually required for the license fee(s). The Commission will determine whether an overpayment has occurred on a case by case basis.(2) Upon a determination that an overpayment of an annual license fee has occurred, the Charitable Bingo Operations Division shall credit the overpayment to the licensee. Overpayments credited to a licensee may be used for the licensee's outstanding bingo liabilities, including subsequent license fees, but the credits must be used within four years of the latest date on which the annual license fee was due. Overpayments credited to a licensee remain eligible for refund under subsection (h) of this section until the credits are used or the four year refund period expires, whichever comes first.(3) Overpayments of annual license fees must either be used as credit or claimed for refund within four years of the latest date on which the annual license fees were due. If a licensee fails to use the credits or request a refund within this time period, the overpayments will be retained by the Commission.(h) Refunds. (1) An applicant or licensee may request a refund of the fee for an initial or renewal commercial lessor's license, initial or renewal distributor's license, or initial or renewal manufacturer's license if they request withdrawal of the application before the license is issued. Upon such a request, the Commission will retain the lesser of 50 percent of the fee or $150 and refund the rest of the fee within 30 days of receiving the request.(2) If the Commission denies an initial or renewal commercial lessor license application, initial or renewal distributor's license application, or initial or renewal manufacturer's license application, it will retain the lesser of 50 percent of the fee or $150 and refund the rest of the fee within 30 days of denying the application.(3) A current or former licensee that submits an overpayment of a regular license fee may be eligible to receive a refund of that overpayment, provided that the licensee or former licensee:(A) submits a complete written request for a refund to the Commission within four years of the latest date the regular license fees were due;(B) does not have any other outstanding bingo liabilities to the State; and(C) if applicable, files all necessary quarterly reports.(4) Upon the receipt and review of a timely and sufficient refund request, the Commission may either deny the refund request or certify to the Comptroller of Public Accounts that a refund is warranted. Pursuant to Government Code § RSA 403.077, if the Commission certifies to the Comptroller of Public Accounts that a refund is warranted, the ultimate decision on whether to grant the refund will still be made by the Comptroller of Public Accounts.(i) Transfer of Commercial License to Lease Bingo Premises. (1) All gross rental income collected in connection with a license to lease bingo premises that has been transferred during the term of the license shall be used to recalculate the license fee.(2) A license fee credit in connection with a license to lease bingo premises that was transferred during the term of the license shall be credited to the current license holder at the time of license renewal.(3) A license fee balance due for a license to lease bingo premises that was transferred during the term of the license shall be the liability of the current license holder at the time of license renewal.(j) Temporary Authorization to Conduct Bingo.(1) The amount of gross receipts collected in connection with a temporary authorization is used to calculate the regular license class.(2) An organization conducting bingo pursuant to a temporary authorization must comply with the same statutory and administrative rule requirements and quarterly return filing requirements as an organization which has a regular license to conduct bingo.16 Tex. Admin. Code § 402.404
The provisions of this §402.404 adopted to be effective March 21, 2005, 30 TexReg 1630; amended to be effective May 2, 2010, 35 TexReg 3253; amended to be effective July 31, 2013, 38 TexReg 4744; amended to be effective December 31, 2013, 38 TexReg 9538; Amended by Texas Register, Volume 40, Number 08, February 20, 2015, TexReg 815, eff. 2/25/2015; Amended by Texas Register, Volume 41, Number 31, July 29, 2016, TexReg 5529, eff. 8/1/2016; Amended by Texas Register, Volume 42, Number 51, December 22, 2017, TexReg 7393, eff. 12/31/2017; Amended by Texas Register, Volume 45, Number 42, October 16, 2020, TexReg 7417, eff. 10/22/2020; Amended by Texas Register, Volume 48, Number 52, December 29, 2023, TexReg 8370, eff. 1/4/2024