The bill, S.B. No. 2218, aims to regulate charitable bingo in Texas and introduces provisions for the establishment of a nonprofit corporation to promote and advertise charitable bingo activities. Key amendments include changes to Section 2001.407 of the Occupations Code, which now allows licensed distributors to receive bingo equipment or supplies from licensed authorized organizations under specific conditions, such as if the items are defective or not ordered. Additionally, the bill establishes a new Section 2001.4151, permitting a statewide organization to form a nonprofit corporation to assist various stakeholders in the charitable bingo sector, including licensed organizations and distributors.

Further amendments include the expansion of advertising rights for licensed organizations and the newly formed nonprofit corporation, allowing them to promote bingo events and prizes. The bill also raises the limit on operating capital that licensed organizations can retain in their bingo accounts from $50,000 to $75,000. Additionally, it modifies the fee structure for cash bingo prizes over $100, increasing the fee from 5% of the prize amount. The bill is set to take effect on September 1, 2025, with specific provisions taking effect earlier on October 1, 2025.

Statutes affected:
Introduced: Occupations Code 2001.407, Occupations Code 2001.415, Occupations Code 2001.451, Occupations Code 2001.502 (Occupations Code 2001)