Texas § OC.2001.560 - EXAMINATION OF RECORDS

§ OC.2001.560. EXAMINATION OF RECORDS

EXAMINATION OF RECORDS; DISCLOSURE OF INFORMATION. (a) The governing body of the appropriate political subdivision or the attorney general may: (1) examine or cause to be examined the records of an authorized organization that is or has been licensed to conduct bingo, to the extent the organization's activities relate to bingo, including the maintenance, control, and disposition of net proceeds derived from bingo or from the use of its premises for bingo; and (2) examine a manager, officer, director, agent, member, or employee of the organization under oath regarding: (A) the conduct of bingo under a license; (B) the use of premises; or (C) the disposition of proceeds derived from bingo. (b) The governing body of the appropriate political subdivision or the attorney general may: (1) examine or cause to be examined the records of a licensed commercial lessor if the activities of the lessor may relate to leasing premises for bingo; and (2) examine the lessor or a manager, officer, director, agent, or employee of the lessor under oath regarding the leasing. (c) The department or a person authorized in writing by the department may examine the books, papers, records, equipment, and place of business of a license holder and may investigate the character of the license holder's business to verify the accuracy of a return, statement, or report made, or, if no return is made by the license holder, to ascertain and determine the amount required to be paid. (c-1) The commission by rule shall develop a policy for auditing license holders. The department shall use audit risk analysis procedures established by the commission to: (1) annually identify the license holders most at risk of violating this chapter or rules adopted under this chapter, including consideration of license holder compliance history in the identification; and (2) develop a plan for auditing the identified license holders that includes: (A) a schedule for the audits of the identified license holders; (B) procedures to annually update the plan based on successive risk analyses; and (C) a completion date for each audit that is not later than the fifth anniversary of the date the license holder was identified as a candidate for audit. (c-2) The department shall provide to the commission a copy of the auditing plan developed under Subsection (c-1). (d) The commission may set and charge to the license holder a fee in an amount reasonably necessary to recover the cost of an authorized investigation or audit authorized under this chapter. (e) If the department determines that a person is not complying with this chapter, the department shall notify the attorney general and the governing body of the appropriate political subdivision. Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 993 (H.B. 2197 ), Sec. 40, eff. September 1, 2013. Acts 2025, 89th Leg., R.S., Ch. 1160 (S.B. 3070 ), Sec. 73, eff. June 20, 2025.