Regular Session
Texas Lottery Commission • Charitable Bingo Operations Division
Key implementation requirements and action items for compliance with this legislation
The statute allows the Bingo Operations Director to authorize amounts exceeding $100,000 "on request" but fails to define the standard of proof for approval. Until the Texas Lottery Commission publishes specific rules, the definition of "necessity" remains subjective. Organizations filing for an exception before rulemaking is complete should over-document their liquidity needs to avoid rejection.
Our government affairs experts can walk you through this bill's specific impact on your operations.
Schedule ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
BILL ANALYSIS |
| C.S.H.B. 2820 |
| By: Louderback |
| Licensing & Administrative Procedures |
| Committee Report (Substituted) |
| BACKGROUND AND PURPOSE Currently, a licensed authorized charitable bingo organization is only allowed to maintain a maximum of $50,000 in operating capital in the organization's bingo account. The bill author has informed the committee that the $50,000 maximum was implemented by the 81st Legislature in 2009 and that inflationary pressures have increased immensely since that time, putting a strain on the ability of these organizations to operate their businesses. C.S.H.B. 2820 seeks to address this issue by increasing the maximum amount of operating capital that a licensed authorized charitable bingo organization may retain from $50,000 to $100,000.
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| CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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| RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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| ANALYSIS C.S.H.B. 2820 amends the Occupations Code to increase from $50,000 to $100,000 the maximum amount of operating capital a licensed authorized charitable bingo organization or a unit of such an organization is authorized to retain in the organization's or unit's bingo account for a single organization or for each member of a unit, except as otherwise provided by the Texas Lottery Commission or the bingo operations director.
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| EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
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| COMPARISON OF INTRODUCED AND SUBSTITUTE C.S.H.B. 2820 differs from the introduced only by amending the caption.
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| H.B. No. 2820 | ||
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| relating to the maximum amount of operating capital retained in a | ||
| licensed authorized organization's charitable bingo account. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 2001.451(h), Occupations Code, is | ||
| amended to read as follows: | ||
| (h) Except as provided by Subsection (j), a licensed | ||
| authorized organization or a unit of licensed authorized | ||
| organizations may retain operating capital in the organization's or | ||
| unit's bingo account in an amount that: | ||
| (1) is equal to the organization's or unit's actual | ||
| average bingo expenses per quarter based on the preceding license | ||
| period, excluding prizes paid; and | ||
| (2) does not exceed a total of $100,000 [ |
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| single organization or $100,000 [ |
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| unless: | ||
| (A) the commission by rule establishes a higher | ||
| amount for all organizations or units or one or more classes of | ||
| organizations or units; or | ||
| (B) the bingo operations director, on request, | ||
| raises the operating capital limit for one organization or unit as | ||
| necessary to facilitate the operation of the organization or unit. | ||
| SECTION 2. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2025. | ||
| TO: | Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | HB2820 by Louderback (Relating to the limits on the amount of operating capital by a charitable bingo organization.), As Introduced |
| Source Agencies: | 304 Comptroller of Public Accounts, 362 Texas Lottery Commission |
| LBB Staff: | JMc, TUf, JBel |
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Common questions about HB2820
Effective June 20, 2025, HB2820 amends the Texas Occupations Code to double the maximum operating capital retained in charitable bingo accounts from $50,000 to $100,000. This change applies immediately to all Licensed Authorized Organizations and Bingo Units, relieving liquidity pressure but creating an immediate gap in fidelity insurance coverage that must be closed. Implementation Timeline Effective Date: June 20, 2025 (Immediate).
HB2820 was authored by Texas Representative AJ Louderback during the Regular Session.
HB2820 was signed into law by Governor Greg Abbott on June 20, 2025.
HB2820 is enforced by Texas Lottery Commission and Charitable Bingo Operations Division.
The compliance urgency for HB2820 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of HB2820 is estimated as "low". This may vary based on industry and implementation requirements.
HB2820 addresses topics including amusements, games, sports, charitable & nonprofit organizations, bingo and lottery commission, texas.
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