By Kubiak H.B. No. 2324
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to amending the bingo enabling act.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Amend Section 2, Bingo Enabling Act (Article
1-5 179d, Vernon's Annotated Civil Statutes), to read as follows:
1-6 Sec. 2. DEFINITIONS. In this Act:
1-7 (1) "Governing body" means the commissioner's court with
1-8 regard to a county or justice precinct or the city council or other
1-9 chief legislative body with regard to an incorporated city or town.
1-10 (2) "Bingo" or "game" means a specific game of chance,
1-11 commonly known as bingo or lotto, in which prizes are awarded on
1-12 the basis of designated numbers or symbols on a card conforming to
1-13 numbers or symbols selected at random.
1-14 (3) "Nonprofit organization" means an unincorporated
1-15 association or society or a corporation that is incorporated or
1-16 holds a certificate of authority under the Texas Non-Profit
1-17 Corporation Act, as amended (Article 1396- 1.01 et.seq., Vernon's
1-18 Texas Civil Statutes), that:
1-19 (A) does not distribute any of its income to its
1-20 members, officers, or governing body, other than as reasonable
1-21 compensation for services;
1-22 (B) for at least three years:
1-23 (i) has had a governing body or officers elected
2-1 by a vote of members or by a vote of delegates elected by the
2-2 members; or
2-3 (ii) has been affiliated with a state or
2-4 national organization organized to perform the same purposes; and
2-5 (C) has obtained a 501(c) exemption from the Internal
2-6 Revenue Service.
2-7 (4) "Fraternal organization" means:
2-8 (A) a nonprofit organization that is organized to
2-9 perform and engages primarily in performing charitable, benevolent,
2-10 patriotic, employment-related, or educational functions and that:
2-11 (i) has been organized within Texas for at least
2-12 three years;
2-13 (ii) during the three-year period has had a bona
2-14 fide membership actively and continuously engaged as an
2-15 organization in furthering its authorized purposes;
2-16 (iii) has not authorized any person on behalf of
2-17 its membership, governing body, or officers, to support or oppose a
2-18 particular candidate for public office by making political
2-19 speeches, passing out cards or other political literature, writing
2-20 letters, signing or circulating petitions, making campaign
2-21 contributions, or soliciting votes; and
2-22 (iv) is not an organization whose members are
2-23 predominantly veterans or dependents of veterans of the armed
2-24 services of the United States; or
2-25 (B) a nonprofit National Historical District
3-1 Association representing the owners and lessees of a majority of
3-2 the real property located within a "National Historical District"
3-3 so determined and designated by the National Register of Historic
3-4 Places, Heritage Conservation and Recreation Service (HCRS) of the
3-5 United States Department of the Interior, whose net proceeds as
3-6 herein defined are used for restoration, construction, maintenance
3-7 and security within the district, and which has been so designated
3-8 for at least five years.
3-9 (5) "Religious society" means a church, synagogue, or other
3-10 organization or association that is organized primarily for
3-11 religious purposes and that has been in existence within Texas for
3-12 at least 10 years.
3-13 (6) "Veterans organization" means a nonprofit organization
3-14 whose members are veterans or dependents of veterans of the armed
3-15 services of the United States and that is chartered by the United
3-16 States Congress and organized to advance the interests of veterans,
3-17 or active duty personnel of the armed forces of the United States
3-18 and their dependents.
3-19 (7) "Person" means an individual, partnership, corporation,
3-20 or other group, however, organized.
3-21 (8) "Volunteer fire department" means an association that:
3-22 (A) operates fire-fighting equipment;
3-23 (B) is organized primarily to provide and actively
3-24 provides fire-fighting services; and
3-25 (C) does not pay its members compensation other than
4-1 nominal compensation.
4-2 (9) "Charitable purposes" means one or more of the following
4-3 causes, deeds, or activities to which the net proceeds derived from
4-4 the playing of bingo are dedicated:
4-5 (A) those that benefit needy or deserving persons in
4-6 this state, indefinite in number, by enhancing their opportunity
4-7 for religious or educational advancement, by relieving them from
4-8 disease, suffering, or distress, or by contributing to their
4-9 physical well-being, by assisting them in establishing themselves
4-10 in life as worthy and useful citizens, or by increasing their
4-11 comprehension of and devotion to the principles on which this
4-12 nation was founded and enhancing their loyalty to their government;
4-13 (B) those that initiate, perform, or foster worthy
4-14 public works in this state or enable or further the erection or
4-15 maintenance of public structures in this state;
4-16 (10) "Net proceeds" means:
4-17 (A) in relation to the gross receipts from one or more
4-18 occasions of bingo, the amount that remains after deducting the
4-19 reasonable sums necessarily and actually expended for advertising,
4-20 security, repairs to premises and equipment, bingo supplies and
4-21 equipment, prizes, stated rental, or mortgage and insurance
4-22 expenses, if any, bookkeeping or accounting services, fees for
4-23 personnel as permitted under Subsection (c) of Section 19 of this
4-24 Act, janitorial services and utility supplies and services, if any,
4-25 license fees, and the gross receipts tax; and
5-1 (B) in relation to the gross rent or other
5-2 consideration received by an organization licensed to conduct bingo
5-3 for the use of its premises, fixtures, or equipment by another
5-4 licensee, the amount that remains after deducting the reasonable
5-5 sums necessarily and actually expended for janitorial services and
5-6 utility supplies directly attributable to the use of the premises,
5-7 fixtures, or equipment, if any.
5-8 (11) "Authorized organization" means a religious society, a
5-9 nonprofit organization (other than an organization whose membership
5-10 is predominantly veterans or their dependents organized to advance
5-11 the interests of veterans, active duty personnel, or their
5-12 dependents) whose predominant activities are for the support of
5-13 medical research or treatment programs, a fraternal or veterans
5-14 organization, or a volunteer fire department.
5-15 (12) "Authorized commercial lessor" means a person eligible
5-16 for a commercial license to lease bingo premises under Section 13
5-17 of this Act.
5-18 (13) "Gross receipts" means the total amount received from
5-19 the sale, rental, transfer, or use of bingo cards and entrance fees
5-20 charged at locations in which bingo is conducted.
5-21 (14) "Municipal secretary" means the officer of a
5-22 municipality who performs the duties of city secretary, regardless
5-23 of the officer's title.
5-24 (15) "Municipality" means an incorporated city or town.
5-25 (16) "Political subdivision" means a county, justice
6-1 precinct, or municipality.
6-2 (17) "Licensee" means the holder of an annual license,
6-3 commercial lessor's license, temporary license, or temporary
6-4 authorization issued under this Act.
6-5 (18) "Distributor" means:
6-6 (A) a person who obtains by purchase or other manner
6-7 bingo equipment, devices, or supplies for use in bingo games in
6-8 this state and who sells or otherwise furnishes those items to
6-9 another person for use, resale, display, or operation of the
6-10 equipment, devices, or supplies.
6-11 (B) a person who converts, modifies, adds to or
6-12 removes parts from any bingo equipment, item, device, or assembly
6-13 to further its promotion or sale for or use in a bingo game in this
6-14 state.
6-15 (19) "Manufacturer" means:
6-16 (A) a person who assembles from raw materials or
6-17 subparts a completed piece of bingo equipment, devices, or supplies
6-18 for use in bingo games in this state; or
6-19 (B) a person who converts, modifies, adds to or
6-20 removes parts from any bingo equipment, item, device, or assembly
6-21 to further its promotion or sale for or use in a bingo game in this
6-22 state.
6-23 (20) "Commission" means the Texas Alcoholic Beverage
6-24 Commission.
6-25 (21) "Substantial interest" means the interest a person has
7-1 in an organization, association, or business as follows:
7-2 (A) if, with respect to a sole proprietorship, an
7-3 individual or his marital community owns, operates, manages, or
7-4 conducts directly or indirectly any part of the organization,
7-5 association, or business;
7-6 (B) if, with respect to a partnership, the individual
7-7 or his marital community has a right to a share in any of the
7-8 profits or potential profits of the partnership activities;
7-9 (C) if, with respect to a corporation, an individual
7-10 or his spouse is an officer or director of or the individual or his
7-11 marital community is a holder directly or beneficially of 10
7-12 percent or more of any class of stock of the corporation;
7-13 (D) if, with respect to an organization not covered by
7-14 Paragraph (A), (B), or (C) of this subdivision, an individual or
7-15 his spouse is an officer in or manages the business affairs of the
7-16 organization or the individual or his marital community owns or
7-17 controls 10 percent or more of the assets of the organization; or
7-18 (E) if an individual or his marital community provide
7-19 10 percent or more of the capital, whether in cash, goods, or
7-20 services, for the operation of a business, association, or
7-21 organization during a calendar year.
7-22 (22) "Bingo equipment" means equipment actually used, made,
7-23 or sold for the purpose of use in bingo games and includes machines
7-24 or other devices from which balls or other items are withdrawn to
7-25 determine the letters and numbers or other symbols to be called,
8-1 the balls or items themselves, bingo cards, and any other device
8-2 commonly used in the direct operation of the game. "Bingo
8-3 equipment" does not include a bingo game set commonly manufactured
8-4 and sold as a child's game for a retail price of $20 or less unless
8-5 the set or a part of the set is actually used in a bingo game
8-6 subject to regulation under this Act.
8-7 (23) "Bingo occasion" means all activities incident to the
8-8 conduct of a series of bingo games by a licensed authorized
8-9 organization. A bingo occasion includes not only the
8-10 organization's licensed times but also those preparatory and
8-11 concluding activities incident to the conduct of bingo games. If
8-12 two organizations are licensed to conduct bingo at the same place
8-13 on the same day, the bingo occasion of one organization may overlap
8-14 with the bingo occasion of the other organization, but their bingo
8-15 games must be separated by the intermission required by Section 18
8-16 of this Act. In that event, the intermission is considered part of
8-17 each organization's bingo occasion.
8-18 SECTION 2. Amend Section 11, Bingo Enabling Act, (Article
8-19 179d, Vernon's Annotated Civil Statutes), to read as follows:
8-20 Sec. 11. RESTRICTIONS ON BINGO GAMES. (a) The conduct of
8-21 bingo games authorized under this Act is subject to the
8-22 restrictions prescribed by this section regardless of whether the
8-23 restrictions are contained in a local ordinance.
8-24 (b) A person, other than a licensed authorized commercial
8-25 lessor or except a person who leases or otherwise makes available a
9-1 hall or other premises to an organization that has been issued a
9-2 temporary license, may not lease or otherwise make available for
9-3 conducting a bingo game subject to this act a hall or other
9-4 premises for any consideration, direct or indirect.
9-5 (c) A bingo game may not be conducted on or within any
9-6 leased premises if rental under the lease is to be paid, in whole
9-7 or in part, on the basis of a percentage of the receipts or net
9-8 proceeds derived from the operation of the game or by reference to
9-9 the number of people in attendance at a game.
9-10 (d) The net proceeds of any game of bingo and of any rental
9-11 of premises for bingo shall be exclusively devoted to charitable
9-12 purposes.
9-13 (e) A prize may not exceed the sum or value of $500 in any
9-14 single game of bingo.
9-15 (f) A series of prizes offered or awarded on any one bingo
9-16 occasion for bingo games other than instant bingo may not aggregate
9-17 more than $2,500. A series of prizes offered or awarded on any
9-18 one bingo occasion for games of instant bingo <may not aggregate
9-19 more than $1,500> shall be unlimited.
9-20 (g) A person other than a bona fide member of a licensed
9-21 authorized organization may not conduct, promote, administer, or
9-22 assist in conducting, promoting, or administering, a bingo game.
9-23 (h) A person may not be denied admission to a game or the
9-24 opportunity to participate in a game because of race, color, creed,
9-25 religion, national origin, sex, or handicap or because the person
10-1 is not a member of the licensed authorized organization that is
10-2 conducting the game.
10-3 (i) Bingo games may not be conducted at more than one
10-4 location on property owned or leased by a licensed authorized
10-5 organization.
10-6 (j) No more than two affiliated organizations may be
10-7 licensed to conduct bingo at the same location.
10-8 (k) A game of chance other than bingo may not be conducted
10-9 or allowed during an occasion when bingo is played.
10-10 (l) A licensed authorized organization may not offer or
10-11 provide to a person the opportunity to play bingo without charge.
10-12 An organization conducting bingo must record all transactions for
10-13 which it receives bingo gross receipts on a cash register, which
10-14 must be in conformance with specifications prescribed by rule of
10-15 the commission.
10-16 (m) An authorized organization may conduct bingo only in the
10-17 county where the organization is principally located. For purposes
10-18 of this subsection, an organization is principally located in the
10-19 county within which it has its primary business office. If the
10-20 organization has no business office, the organization is
10-21 principally located in the county of the principal residence of its
10-22 chief executive officer.
10-23 (n) A licensed manufacturer may furnish by sale or any other
10-24 manner bingo equipment, devices, or supplies to a licensed
10-25 distributor, but may not furnish by sale or any other manner bingo
11-1 equipment, devices, or supplies to any other person.
11-2 (o) A licensed distributor may not furnish by sale or any
11-3 other manner bingo equipment, devices, or supplies to a person
11-4 other than a licensed authorized organization, another licensed
11-5 distributor, or a person authorized to conduct bingo under Section
11-6 39(b) (3) or (4) of this Act. A sale of bingo equipment, devices,
11-7 or supplies authorized by this subsection must be made on terms
11-8 requiring immediate payment or requiring payment no later than the
11-9 30th day after the date of actual delivery. A sale of bingo
11-10 equipment may be made no later than the 30th day after the date of
11-11 actual delivery or on terms specified on the original invoice.
11-12 (p) No one other than a licensed authorized organization and
11-13 licensed lessor may advertise or promote bingo. A licensed
11-14 authorized organization may <not> include in an advertisement or
11-15 promotion the amount of a prize or series of prizes offered at a
11-16 bingo occasion.
11-17 (q) A licensed authorized organization or other person may
11-18 not award or offer to award a door prize or other prize to persons
11-19 present at a bingo occasion or participating in a bingo occasion in
11-20 addition to the prizes awarded for winning the individual bingo
11-21 games.
11-22 (r) A licensed distributor may not receive by purchase or
11-23 any other manner bingo equipment, devices, or supplies from a
11-24 person other than a licensed manufacturer.
11-25 (s) Except for a purchase made by a licensed authorized
12-1 organization under Subsection (t) of this section, a licensed
12-2 authorized organization or a person authorized to conduct bingo
12-3 under Section 39(b) (3) or (4) of this Act may not obtain by
12-4 purchase or any other manner bingo equipment, devices, or supplies
12-5 from a person other than a licensed distributor.
12-6 (t) With the prior written consent of the commission, a
12-7 licensed authorized organization may make an occasional sale of a
12-8 used bingo flashboard or blower to another licensed authorized
12-9 organization.
12-10 (u) A licensed authorized organization may not conduct a
12-11 bingo game in which any player uses or is assisted by a
12-12 computerized or electronic device that is used instead of or in
12-13 conjunction with the player's traditional paper or nondisposable
12-14 bingo card.
12-15 SECTION 3. Amend Section 11a, Bingo Enabling Act, (Article
12-16 179d, Vernon's Annotated Civil Statutes), to read as follows:
12-17 Sec. 11a. RESTRICTIONS ON RENT FOR BINGO PREMISES. (a) The
12-18 rent charged by a licensed authorized commercial lessor to a
12-19 licensed authorized organization to conduct bingo may not exceed
12-20 $600 for each bingo occasion conducted on the premises, unless the
12-21 lessee licensed authorized organization subleases the premises to
12-22 one or more other licensed authorized organizations to conduct
12-23 bingo, in which event the rent charged by the authorized commercial
12-24 lessor may not exceed $600 for each day that bingo is conducted at
12-25 that location.
13-1 (b) Rent for premises used for the conduct of bingo must be
13-2 paid in a lump sum that includes all expenses authorized by Section
13-3 19(c) of this Act that are paid by the licensed authorized
13-4 organization to the lessor in connection with the use of the
13-5 premises.
13-6 (c) This section does not apply to the rent charged under a
13-7 lease or other contract in existence on May 31, 1989, and on file
13-8 with the comptroller on that date, but does apply to the renewal or
13-9 extension of such a lease or other contract. This section does not
13-10 apply under the Texas Constitution or the Constitution of the
13-11 United States.
13-12 SECTION 4. Amend Section 13, Bingo Enabling Act, (Article
13-13 179d, Vernon's Annotated Civil Statutes), to read as follows:
13-14 Sec. 13. INVESTIGATION OF LICENSE; FEE; DURATION OF LICENSE.
13-15 (a) The commission shall investigate the qualifications of each
13-16 applicant and the merits of each application promptly after the
13-17 filing of the application.
13-18 (b) On preliminary approval of an application, the
13-19 commission may issue a temporary authorization for the activity
13-20 requested for any period of not more than 60 days. The effective
13-21 period may be extended by the commission on written request filed
13-22 before the end of the period of temporary authorization except as
13-23 limited by Subsection (h) of this section.
13-24 (c) The commission shall issue to an applicant a license for
13-25 the conduct of bingo, or a license renewal, on payment of a license
14-1 fee in accordance with Subdivision (1) of Subsection (d) of this
14-2 section, if the commission determines that:
14-3 (1) the member or members of the applicant designated
14-4 in the application to conduct bingo are active members of the
14-5 applicant;
14-6 (2) no person under whose name the game or games of
14-7 bingo will be conducted, and no person who will work at the
14-8 proposed bingo games, has been convicted of a felony, gambling
14-9 offense, criminal fraud, or a crime of moral turpitude for which
14-10 less than 10 years have elapsed since termination of any sentence,
14-11 parole, mandatory supervision, or probation served for the offense;
14-12 (3) the games are to be conducted in accordance with
14-13 this Act;
14-14 (4) the proceeds of the games are to be disposed of as
14-15 provided by this Act;
14-16 (5) no prize will be offered or given in excess of the
14-17 limits set by Section 11(e) of this Act in any single game and that
14-18 the aggregate of all prizes offered and given in all of the games
14-19 conducted on a single occasion under the license will not exceed
14-20 limits set by Section 11(f) of this Act;
14-21 (6) the applicant has made and can demonstrate
14-22 significant progress toward the accomplishment of the purposes of
14-23 the organization during the 12-month period preceding the date of
14-24 application for a license or license renewal; and
14-25 (7) all persons who will conduct, promote, or
15-1 administer the proposed bingo games are active, bona fide members
15-2 of the applicant organization and all other persons who will assist
15-3 in conducting, promoting or administering the proposed bingo games
15-4 are persons authorized to do so by Section 19 of this Act.
15-5 (d) The fees for a license to conduct bingo and a commercial
15-6 license to lease bingo premises shall be set by the commission in
15-7 an amount reasonable to defray administrative cost, but not less
15-8 than the following:
15-9 (1) license to conduct bingo:
15-10 (A) Class A (annual gross receipts of $25,000 or
15-11 less) - $100;
15-12 (B) Class B (annual gross receipts of more than
15-13 $25,000 but not more than $50,000) - $200;
15-14 (C) Class C (annual gross receipts of more than
15-15 $50,000 but not more than $75,000) - $300;
15-16 (D) Class D (annual gross receipts of more than
15-17 $75,000 but not more than $100,000) - $400;
15-18 (E) Class E (annual gross receipts of more than
15-19 $100,000 but not more than $150,000) - $600;
15-20 (F) Class F (annual gross receipts of more than
15-21 $150,000 but not more than $200,000) - $900;
15-22 (G) Class G (annual gross receipts of more than
15-23 $200,000 but not more than $250,000) - $1,200;
15-24 (H) Class H (annual gross receipts of more than
15-25 $250,000 but not more than $300,000) - $1,500;
16-1 (I) Class I (annual gross receipts of more than
16-2 $300,000 but not more than $400,000) - $2,000; and
16-3 (J) Class J (annual gross receipts of more than
16-4 $400,000) - $2,500; and
16-5 (2) commercial license to lease bingo premises:
16-6 (A) Class A (annual gross rentals from licensed
16-7 organization of not more than $12,000) - $100;
16-8 (B) Class B (annual gross rentals from licensed
16-9 organizations of not more than $12,000 but not more than $20,000) -
16-10 $200;
16-11 (C) Class C (annual gross rentals from licensed
16-12 organizations of not more than $20,000 but not more than $30,000) -
16-13 $300;
16-14 (D) Class D (annual gross rentals from licensed
16-15 organizations of more than $30,000 but not more than $40,000) -
16-16 $400;
16-17 (E) Class E (annual gross rentals from licensed
16-18 organization of more than $40,000 but not more than $50,000) -
16-19 $600;
16-20 (F) Class F (annual gross rentals from licensed
16-21 organizations of more than $50,000 but not more than $60,000) -
16-22 $900;
16-23 (G) Class G (annual gross rentals from licensed
16-24 organizations of more than $60,000 but not more than $70,000) -
16-25 $1,200;
17-1 (H) Class H (annual gross rentals from licensed
17-2 organizations of more than $70,000 but not more than $80,000) -
17-3 $1,500;
17-4 (I) Class I (annual gross rentals from licensed
17-5 organizations of more than $80,000 but not more than $90,000) -
17-6 $2,000;
17-7 (J) Class J (annual gross rentals from licensed
17-8 organizations of more than $90,000) - $2,500.
17-9 (e) At the end of the license period, a recapitulation shall
17-10 be made between the licensee and the commission in respect of the
17-11 gross receipts or gross rentals actually recorded during the
17-12 license period and the fee paid, and any deficiency shown to be due
17-13 shall be paid by the licensee and any excess of fee shown to have
17-14 been paid shall be credited to the licensee in a manner prescribed
17-15 by the commission by rule.
17-16 (f) The commission may not issue a license to an applicant
17-17 seeking to conduct bingo on the premises of a licensed commercial
17-18 lessor if the premises presently owned or occupied by the applicant
17-19 are adequate and suitable for conducting bingo games. The burden
17-20 is on the applicant to establish by clear and convincing proof that
17-21 the premises it presently owns or occupies are not adequate and
17-22 suitable for conducting games. It is the intent of this subsection
17-23 to encourage licensed organizations to use their own facilities if
17-24 possible, to discourage the commercialization of bingo, and to
17-25 maximize the availability of bingo proceeds for application by an
18-1 authorized organization to its authorized purposes.
18-2 (g) The commission shall issue a license permitting a
18-3 commercial lessor applicant to lease premises for the conduct of
18-4 bingo to an authorized organization or organizations specified in
18-5 the application during the period specified in the application or
18-6 such shorter period as the commission determines, but not to exceed
18-7 one year, on payment of a license fee in accordance with Subsection
18-8 (d)(2) of this section if the commission determines that:
18-9 (1) the applicant seeking to lease a hall or premises
18-10 for the conduct of bingo to an authorized organization is qualified
18-11 to be licensed under this Act;
18-12 (2) the applicant satisfies the requirements for an
18-13 authorized commercial lessor as prescribed by this section;
18-14 (3) the rent to be charged is fair and reasonable and
18-15 will be charged and collected in compliance with Section 11a of
18-16 this Act;
18-17 (4) there is no diversion of the funds of the proposed
18-18 lessee from the lawful purposes as prescribed by this Act;
18-19 (5) the person whose signature or name appears in the
18-20 application is in all respects the real party in interest and is
18-21 not an undisclosed agent or trustee for the real party in interest;
18-22 and
18-23 (6) the leasing of a hall or premises for the conduct
18-24 of bingo is to be in accordance with this Act.
18-25 (h) A license issued under this Act may not be effective for
19-1 more than one year. A temporary authorization issued under
19-2 Subsection (b) of this section may not be effective for more than
19-3 one year from its original issuance date.
19-4 (i) When a license is issued by the commission, a copy of
19-5 the license shall immediately be sent by the licensee to the
19-6 appropriate governing body for filing in a central file containing
19-7 each license issued under this Act. In addition, the licensee
19-8 must, within 10 days, give written notice of the issuance of the
19-9 license to the police department of the city or town in which bingo
19-10 is to be conducted, if it is to be conducted within a city or town,
19-11 or to the sheriff of the county in which bingo is to be conducted,
19-12 if it is to be conducted outside a city or town. A bingo game may
19-13 not be commenced until the notification has been made in accordance
19-14 with this subsection.
19-15 (j) a license may not be transferred by a licensee.
19-16 (k) The issuance of a license or temporary authorization by
19-17 the commission does not grant a vested right in the license, the
19-18 temporary authorization, or the privileges conferred.
19-19 (l) The commission may not issue a license to an authorized
19-20 organization to conduct bingo if an officer of the organization has
19-21 been convicted of a felony, criminal fraud, gambling or
19-22 gambling-related offense, or crime of moral turpitude, if less than
19-23 10 years have elapsed since the termination of any sentence,
19-24 parole, mandatory supervision, or probation served for the offense.
19-25 (m) The commission may deny an application for a license or
20-1 renewal of a license issued under this section for any cause that
20-2 would permit or require the suspension or revocation of a license
20-3 issued under this section.
20-4 (n) A commercial license to lease bingo premises to a
20-5 licensed authorized organization may be issued only to:
20-6 (1) an authorized organization licensed to conduct
20-7 bingo that owns, co-owns, <or> leases, or co-leases premises on
20-8 which bingo is or will be conducted and that the organization
20-9 leases, co-leases or offers for lease or co-leases to one or more
20-10 other authorized organizations to conduct bingo;
20-11 (2) a person who leases premises to a single licensed
20-12 authorized organization that subleases or will sublease the
20-13 premises to one or more other licensed authorized organizations to
20-14 conduct bingo on the premises; or
20-15 (3) a person who leases premises for the total control
20-16 and exclusive use of only one licensed organization as that
20-17 organization's primary business office.
20-18 (o) Notwithstanding Subsection (n) of this section, a person
20-19 who was licensed as a commercial lessor on June 10, 1989 whose
20-20 license has been kept in effect since that date, and who is
20-21 otherwise eligible for the license may renew the license as a
20-22 commercial lessor of bingo premises according to the terms of the
20-23 license as those terms existed on June 10, 1989.
20-24 (p) <A commercial lessor covered by Subsection (o) of this
20-25 section may renew the license to provide for not more than the same
21-1 number of licensed authorized organizations to conduct bingo on the
21-2 premises as whether those organizations are the same as the
21-3 organizations covered by the license on that date.> A commercial
21-4 lessor covered by Subsection (o) of this section may renew the
21-5 license for a different location <if the location of the premises
21-6 covered by the license on the date this subsection took effect
21-7 becomes unavailable to the commercial lessor for reasons beyond the
21-8 commercial lessor's control>.
21-9 (q) The following persons are not eligible for a commercial
21-10 license to lease bingo premises to a licensed authorized
21-11 organization:
21-12 (1) A person convicted of a felony, criminal fraud,
21-13 gambling or gambling-related offense, or crime of moral turpitude,
21-14 if less than 10 years have elapsed since the termination of any
21-15 sentence, parole, mandatory supervision, or probation served for
21-16 the offense;
21-17 (2) a public officer who receives any consideration,
21-18 direct or indirect, as owner or lessor of premises offered for the
21-19 purpose of conducting bingo;
21-20 (3) a person who extends credit to, loans money to, or
21-21 pays or provides for the payment of license fees for an authorized
21-22 organization;
21-23 (4) a distributor or manufacturer; or
21-24 (5) a person, firm, or corporation in which a person
21-25 covered by Subdivision (1), (2), (3), or (4) of this subsection or
22-1 a person married or related in the first degree by consanguinity or
22-2 affinity to one of those persons has greater than a 10 percent
22-3 proprietary, equitable, or credit interest or in which one of those
22-4 persons is active or employed.
22-5 (r) Subsection (q)(5) of this section does not prevent any
22-6 authorized organization, person, firm, or corporation that is not
22-7 organized for pecuniary profit and no part of the net earnings of
22-8 which insure to the benefit of any individual, member, or
22-9 shareholder from being licensed as a commercial lessor solely
22-10 because a public officer or a person married or related in the
22-11 first degree by consanguinity or affinity to a public officer is a
22-12 member of, active in, or employed by the authorized organization,
22-13 person, firm, or corporation.
22-14 SECTION 5. Amend Section 15, Bingo Enabling Act, (Article
22-15 179d, Vernon's Annotated Civil Statutes), to read as follows:
22-16 Sec. 15. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
22-17 (a) Each license to conduct bingo shall include:
22-18 (1) the name and address of the licensee and the names
22-19 and addresses of the member or members of the licensee under whom
22-20 the game will be conducted;
22-21 (2) and indication of the place where and the time
22-22 when the games are to be conducted<;> .
22-23 <(3) the specific purposes to which the net proceeds
22-24 of the games are to be devoted; and>
22-25 <(4) a statement of whether any prize is to be offered
23-1 and the amount of any authorized prize.>
23-2 (b) Each license issued for the conduct of any game shall be
23-3 conspicuously displayed at the place where the game is conducted at
23-4 all times during the conduct of the game.
23-5 (c) Each license to lease premises for conducting bingo
23-6 shall contain a statement of the name and address of the licensee
23-7 and the address of the premises, and each license shall be
23-8 conspicuously displayed on the premises at all times during the
23-9 conduct of bingo.
23-10 (d) Each location must be separately licensed.
23-11 SECTION 6. Amend Section 16, Bingo Enabling Act, (Article
23-12 179d, Vernon's Annotated Civil Statutes), to read as follows:
23-13 Sec. 16. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES;
23-14 INSPECTION OF PREMISES. (a) The commission shall administer this
23-15 Act. The commission has broad authority and shall exercise strict
23-16 control and close supervision over all games of bingo conducted in
23-17 this state to the end that the games are fairly conducted and the
23-18 proceeds derived from the games are used for the purposes
23-19 authorized in this Act. The commission's authority under this Act
23-20 is executed through a division established by the administrator of
23-21 the commission to administer this Act. The administrator shall
23-22 employ a director of bingo operations to administer the division
23-23 under the direction of the commission and administrator. The
23-24 commission may adopt rules for the enforcement and administration
23-25 of this Act.
24-1 (b) The commission shall provide to any person on request a
24-2 printed copy of this Act and any rules applicable to the
24-3 enforcement of this Act. The commission may impose a reasonable
24-4 charge for a copy of an item provided under this subsection.
24-5 (c) The commission shall establish a toll-free wide area
24-6 telephone service (WATS) number to provide access to the office of
24-7 the bingo division in Austin for receiving information requests or
24-8 taking complaints from persons relating to bingo games. To enable
24-9 both the general public and a person or entity regulated under this
24-10 Act to locate the telephone numbers of the division easily,
24-11 including the toll-free number, the commission shall take the
24-12 actions necessary to ensure that the bingo division is separately
24-13 listed, with the toll-free number, in the telephone directories for
24-14 any city or area in which a local office of the division is
24-15 established and that the toll-free number and the telephone numbers
24-16 of the local offices of the division are made available to callers
24-17 using information operators.
24-18 (d) The commission by rule shall provide procedures for the
24-19 approval of bingo cards. A licensee may not use or distribute a
24-20 bingo card unless it has been approved by the commission. The
24-21 commission may set the price or adopt one or more schedules of
24-22 prices at which bingo cards may be sold or otherwise furnished by a
24-23 licensed authorized organization. A licensed authorized
24-24 organization may not sell or otherwise furnish a bingo card at a
24-25 price other than a price authorized by the commission under this
25-1 subsection or by a schedule adopted under this subsection. The
25-2 commission may establish procedures requiring a licensed authorized
25-3 organization to notify the commission of the price or price
25-4 schedule for bingo cards the organization will use for one or more
25-5 reporting periods.
25-6 (e) The commission may adopt a civil penalty system, suspend
25-7 or revoke any license issued under this Act for failure to comply
25-8 with this Act or a rule adopted by the commission under this Act,
25-9 or for any reason that would allow or require the commission to
25-10 refuse to issue or renew a license of the same class. The
25-11 commission may summarily suspend a license issued under this Act
25-12 for failure to comply with this Act or a rule adopted by the
25-13 commission under this Act if the commission determines that the
25-14 licensee's continued operation may constitute an immediate threat
25-15 to the health, safety, morals, or welfare of the public. The
25-16 Administrative Procedure and Texas Register Act (Article 6252-13a,
25-17 Vernon's Texas Civil Statutes) does not apply to the commission in
25-18 the enforcement and administration of a summary suspension under
25-19 this section.
25-20 (f) A proceeding to summarily suspend a license issued under
25-21 this Act is initiated by the commission by serving notice to the
25-22 licensee informing it of the right to a hearing before the
25-23 commission. The notice must be personally served on an officer,
25-24 operator, or agent of the licensee or sent by certified or
25-25 registered mail, return receipt requested, to the licensee's
26-1 mailing address as it appears on the commission's records. The
26-2 notice must state the alleged violations that constitute grounds
26-3 for summary suspension.
26-4 (g) If a notice of summary suspension is served on a
26-5 licensee, the commission shall simultaneously serve notice of a
26-6 hearing, to be held within 10 days after the date the notice is
26-7 served, at which the licensee shall show cause why the license
26-8 should not be summarily suspended on the 10th day after the date
26-9 the notice is service. A final hearing on the suspension or
26-10 revocation of the license shall be held, if requested by the
26-11 licensee, within 30 days after the date the commission receives
26-12 written notice of the request. A final hearing on suspension or
26-13 revocation is governed by the same rules as a hearing on any other
26-14 suspension or revocation under this Act.
26-15 (h) The commission may employ officers or investigators as
26-16 the commission considers necessary to administer this Act.
26-17 (i) The commission or the commission's officers or agents
26-18 and state, city, or county peace officers may enter and inspect the
26-19 contents of premises where a game of bingo is being conducted or
26-20 where it is intended that a game is to be conducted or where any
26-21 equipment used or intended for use in the conduct of a game is
26-22 found.
26-23 (j) The commission by rule shall establish the number and
26-24 type of bingo games that may be played during an occasion.
26-25 SECTION 7. Amend Section 19, Bingo Enabling Act, (Article
27-1 179d, Vernon's Annotated Civil Statutes), to read as follows:
27-2 Sec. 19. PERSONS OPERATING AND CONDUCTING GAMES; EQUIPMENT;
27-3 EXPENSES; COMPENSATION. (a) Only an active <and> or bona fide
27-4 member of a licensed authorized organization may be an operator
27-5 responsible for conducting, promoting, or administering a game of
27-6 bingo. A person may not assist in conducting, promoting or
27-7 administering a game of bingo except:
27-8 (1) an active member of an organization to which a
27-9 license has been issued;
27-10 (2) a member of an organization that is an auxiliary
27-11 to the licensee;
27-12 (3) a member of an organization of which the licensee
27-13 is an auxiliary;
27-14 (4) a member of an organization that is affiliated
27-15 with the licensee by being, with it, auxiliary to another
27-16 organization; and
27-17 (5) bookkeepers, accountants, cashiers, ushers, or
27-18 callers.
27-19 (b) A game of bingo may not be conducted with any equipment
27-20 except that owned by the licensed authorized organization or used
27-21 without payment of any compensation therefore by the licensee.
27-22 (c) Items of expense may not be incurred or paid in
27-23 connection with the conduct of any game of bingo under any license
27-24 issued under this Act except those that are reasonable and are
27-25 necessarily expended for advertising, security, repairs to premises
28-1 and equipment, bingo supplies and equipment, prizes, stated rental
28-2 or mortgage and insurance expenses, if any, bookkeeping, legal, or
28-3 accounting services related to bingo, fees in amounts authorized by
28-4 the commission for callers, cashiers, and ushers, janitorial
28-5 services and utility supplies and services, if any, and license
28-6 fees.
28-7 (d) A person may not be an operator for more than one
28-8 licensed authorized organization, without regard to the person's
28-9 membership status in licensed authorized organizations. The
28-10 commission may adopt rules restricting involvement in the conduct,
28-11 promotion, or administration of bingo by a licensed authorized
28-12 commercial lessor, by a person having an interest in or who is
28-13 active in a licensed authorized commercial lessor, or by a person
28-14 having an interest in or who is active in a licensed authorized
28-15 commercial lessor, or by a person related in the first degree by
28-16 consanguinity or affinity to a person having an interest in or
28-17 active in a licensed authorized commercial lessor, without regard
28-18 to a person's membership status in a licensed authorized
28-19 organization.
28-20 SECTION 8. Amend Section 19a, Bingo Enabling Act, (Article
28-21 179d, Vernon's Annotated Civil Statutes), to read as follows:
28-22 Sec. 19a. BINGO ACCOUNTS AND PROCEEDS. (a) An organization
28-23 licensed to conduct bingo shall establish and maintain one regular
28-24 checking account designated the "bingo account" and may also
28-25 maintain an interest-bearing savings account designated the "bingo
29-1 savings account." All funds derived from the conduct of bingo,
29-2 less the amount awarded as cash prizes under Section 11(e) of this
29-3 Act, shall be deposited in the bingo account. A licensed
29-4 organization may lend money from its general fund to its bingo
29-5 account if the organization requests and receives the prior
29-6 approval of the commission. No other funds may be deposited in the
29-7 bingo account. Deposits must be made no later than the next
29-8 business day following the day of the bingo occasion on which the
29-9 receipts were obtained. All accounts must be maintained in a
29-10 financial institution in Texas.
29-11 (b) Funds from the bingo account must be withdrawn by
29-12 preprinted, consecutively numbered checks or withdrawal slips,
29-13 signed by a duly authorized representative of the licensed
29-14 organization and made payable to a person or organization. Checks
29-15 must be imprinted with the words "Bingo Account" and must contain
29-16 the organization's bingo license number on the face of the check.
29-17 There must also be noted on the face of the check or withdrawal
29-18 slip the nature of the payment made. No check or slip may be made
29-19 payable to "cash", "bearer", or a fictitious payee. All checks,
29-20 including voided checks and slips, must be kept and accounted for.
29-21 (c) Checks may be drawn on the bingo account only for one or
29-22 more of the following purposes:
29-23 (1) the payment of necessary and reasonable bona fide
29-24 expenses permitted under Subsection (c) of Section 19 of this Act
29-25 incurred and paid in connection with the conduct of bingo;
30-1 (2) the payment of necessary and reasonable
30-2 compensation incurred and paid in connection with the conduct of
30-3 bingo for personnel permitted under Subsection (c) of Section 19 of
30-4 this Act;
30-5 (3) the disbursement of net proceeds derived from the
30-6 conduct of bingo to charitable purposes; and
30-7 (4) the transfer of net proceeds derived from the
30-8 conduct of bingo to the bingo savings account pending a
30-9 disbursement to a charitable purpose.
30-10 (d) The following items of expense incurred or paid by an
30-11 organization in connection with bingo must be paid from the
30-12 organization's bingo account;
30-13 (1) advertising;
30-14 (2) security during a bingo occasion;
30-15 (3) the purchase and repair of bingo supplies and
30-16 equipment;
30-17 (4) prizes, other than authorized cash prizes;
30-18 (5) stated rental;
30-19 (6) bookkeeping, legal, or accounting services;
30-20 (7) fees for callers, cashiers, and ushers;
30-21 (8) license fees; and
30-22 (9) janitorial services.
30-23 (e) The disbursement of net proceeds on deposit in the bingo
30-24 saving account to a charitable purpose must be made by transferring
30-25 the intended disbursement back into the bingo account and then
31-1 withdrawing the amount by a check drawn on that account as
31-2 prescribed in this section.
31-3 (f) Proceeds given to a person or an organization for a
31-4 charitable purpose may not be used by the donee:
31-5 (1) to pay for services rendered or materials
31-6 purchased in connection with the conducting of bingo by the donor
31-7 organization; or
31-8 (2) for a cause, a deed, or an activity that would not
31-9 constitute a charitable purpose if the activity were conducted by
31-10 the donor organization.
31-11 (g) Gross receipts derived from the conduct of bingo may not
31-12 be commingled with other funds of the licensed organization.
31-13 Except as permitted by Subdivisions (3) and (4) of Subsection (c)
31-14 of this section, gross receipts may not be transferred to another
31-15 account maintained by the licensed organization.
31-16 (h) A licensed organization that has ceased to conduct bingo
31-17 for any reason and has unexpended bingo funds shall disburse those
31-18 funds to charitable purposes before the end of the next calendar
31-19 quarter following the calendar quarter in which the organization
31-20 ceases to conduct bingo.
31-21 (i) Net proceeds may not be used directly or indirectly by a
31-22 licensed authorized organization to support or oppose a candidate
31-23 or slate of candidates for public office, to support or oppose a
31-24 measure submitted to a vote of the people, or to influence or
31-25 attempt to influence legislation.
32-1 (j) The commission by rule may provide for different
32-2 record-keeping procedures for licensees by class based on the
32-3 amount of gross receipts of licensees.
32-4 (k) Before the end of each quarter, each licensed authorized
32-5 organization shall disburse for charitable purposes an amount not
32-6 less than 15 <35> percent of the organization's adjusted gross
32-7 receipts from the last preceding quarter, <less the amount of any
32-8 credits allowed by rule for bingo gross receipts taxes and
32-9 authorized expenses>. For purposes of this subsection, adjusted
32-10 gross receipts means gross receipts plus any consideration received
32-11 from the rental of premises for bingo by the authorized
32-12 organization, less the amount of prizes paid in the preceding
32-13 quarter, and less rental expenses for the charity lessor paid in
32-14 the preceding quarter. If a licensed authorized organization fails
32-15 to meet the requirements of this subsection for a quarter, the
32-16 commission in applying appropriate sanctions may consider whether,
32-17 taking into account the amount required to be distributed during
32-18 that quarter and the three preceding quarters and the charitable
32-19 distributions for each of those quarters, the organization has
32-20 distributed a total amount sufficient to have met the 15 <35>
32-21 percent requirement for that quarter and the three preceding
32-22 quarters combined.
32-23 SECTION 9. EMERGENCY CLAUSE. The importance of this
32-24 legislation and the crowded condition of the calendars in both
32-25 houses create an emergency and an imperative public necessity that
33-1 the constitutional rule requiring bills to be read on three several
33-2 days in each house be suspended, and this rule is hereby suspended.