Relating to the maximum amount of operating capital retained in a licensed authorized organization's charitable bingo account.

Contracts

• Unit Agreements: Review all Unit Agreements immediately. If your agreement explicitly caps retained capital at "$50,000," it is now obsolete. Execute an addendum replacing the specific dollar amount with "the maximum amount permitted by Section 2001.451(h), Occupations Code" to prevent future misalignment.
• Engagement Letters: Notify external CPAs and bookkeepers of the statutory change to prevent audit flags regarding "excess cash" balances.

Hiring/Training

• Accounting Protocols: Instruct internal accounting staff and Unit Managers to suspend automatic fund "sweeps" or distributions triggered at the $50,000 threshold.
• Calculation Adjustments: Train staff to calculate retention based on the *lesser* of $100,000 or the actual quarterly average bingo expenses (excluding prizes).

Reporting & Record-Keeping

• Exception Requests: If your organization requires operating capital in excess of $100,000, you must prepare a formal request to the Bingo Operations Director.
• Substantiation: Compile cash flow statements and quarterly expense reports to prove that $100,000 is insufficient for operations (e.g., due to bulk paper inventory purchases).

Fees & Costs

• Insurance Premiums: There are no new state fees. However, operational costs will increase slightly due to higher premiums for Crime/Fidelity insurance. You must increase coverage limits to match the new $100,000 cash-on-hand reality.