(a) Definitions. The following words or terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
  (1) Force majeure--Some unforeseen event beyond the control of the licensed authorized organization or unit that results in non-compliance with specific sections of the Act or Rules.
  (2) Request to exceed the operating capital limit--An application to the Bingo Operations Director in accordance with §2001.451(h)(2)(B) and (j) of the Act to increase the retained operating capital limit for one organization or unit.
  (3) Retained operating capital--The amount of operating capital the licensed authorized organization or unit retains in the organization's or unit's bingo account.
(b) Applying for a Request to Exceed Operating Capital Limit.
  (1) A licensed authorized organization or unit requesting to increase its operating capital limit must submit a written request prior to the end of the quarter for which the increase in its retained operating capital limit is being requested.
  (2) The retained operating capital limit may not be increased for the purpose of decreasing a licensed authorized organization's or unit's disbursement of net proceeds for charitable purposes.
  (3) A request to exceed the operating capital limit must include the following:
    (A) the total amount of retained operating capital requested;
    (B) the reason for the request;
    (C) the period for the increase; and
    (D) either of the following:
      (i) a credible business plan; or
      (ii) if the request is due to force majeure, documentation from outside sources supporting force majeure or evidence of circumstances beyond the control of the organization. Examples of acceptable documents include newspaper articles, copies of local ordinance changes, police or fire department reports, notification of road construction, or photographs.
  (4) A credible business plan for the organization's bingo operation may include the following:
    (A) the stated project goal of the organization as it applies to the request;
    (B) a detailed description of the charitable activities of the organization for the four quarters immediately preceding the request;
    (C) a detailed description of the proposed charitable activities for the time period of the request;
    (D) a cost for the project goal; and
    (E) the period of time required to accomplish the project goal.
(c) An organization that has been licensed to conduct bingo for less than one year may provide a detailed explanation of why the increase in the operating capital limit is necessary in lieu of a credible business plan.
(d) The Commission may request additional information or documentation as needed to consider the request to exceed the operating capital limit.
(e) The licensed authorized organization or unit must provide all information or documentation requested by the Commission within 21 calendar days of notice from the Commission. Failure to provide information or documentation requested by the Commission within the time frame indicated may result in disapproval of the request.
(f) Criteria for Approval. The Commission shall consider the following in the approval of requests to exceed the operating capital limit:
  (1) the reason or circumstances beyond the control of the organization, including force majeure, that necessitates the increase in retained operating capital;
  (2) the project goal and eventual charitable use of bingo proceeds applicable to the organization's charitable purposes as defined in §2001.454 of the Act;
  (3) the necessity of the project goal;
  (4) the amount of net proceeds from the licensed authorized organization's or unit's bingo operations during the past one or more years; and
  (5) the length of time the organization has conducted bingo and compliance history.
(g) Within 21 calendar days of receipt of the written request to exceed the operating capital limit and all required attachments and documentation, the Commission will notify the organization or unit in writing of the decision to approve or disapprove the request.
(h) An organization or unit may not increase its retained operating capital until it is notified by the Commission of the approval of the request.
(i) An organization or unit whose circumstances or credible business plan changes may submit a new request.

Source Note: The provisions of this §402.453 adopted to be effective July 5, 2010, 35 TexReg 5823; amended to be effective February 3, 2013, 38 TexReg 372