BILL ANALYSIS
C.S.H.B. 3021
By: Kuempel
4-24-95
Committee Report (Substituted)
BACKGROUND
In years past, the regulation of Bingo has been transferred from
the Office of the Comptroller to the Texas Alcoholic Beverage
Commission (1990), and finally to the Texas Lottery Commission
(1994). The transfer legislation provided that the Lottery
Commission review the existing rules, and regulations for possible
adoption, amendment or deletion. Many feel that there is a need to
make changes in the Enabling Act to enhance the income to the
charities, fraternal, and Veterans organizations and others
authorized to conduct bingo. In addition, to the need for
amendments designed to simplify and speed up the licensing process.
PURPOSE
CSHB 3021 would add to the definition of bingo, pull tabs, break
open tickets and instant bingo tickets. Would also permit use of
a "card minding device". Would also allow a lessor to advertise
and prohibit the advertisement of amounts of prizes. CSHB 3021
would also require the issuance of a temporary authorization for
organizations complying with provisions of the bill. Would also
allow a commercial lessor to transfer a license. Allows a licensee
to prohibit any specified age person from entering the premises
where a game of bingo is being conducted.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill grants additional
rulemaking authority to the Texas Lottery Commission in SECTION 2
and SECTION 4 of the bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 2, Bingo Enabling Act (Art. 179d,
V.T.C.S.). DEFINITIONS, adds pull tabs, break open tickets and
instant bingo tickets to the definition of Bingo, also adds card
minding devices to the definition of bingo equipment.
SECTION 2. Amends Section 11, Bingo Enabling Act (Art. 179d,
V.T.C.S.). Requires that the net proceeds of any game and rental
by a licensed authorized organization to be devoted to charitable
purposes. Clarifies that an amusement machine that is not a
gambling device is not prohibited from premises. Prohibits the
sale or lease of bingo equipment to any person other than a person
licensed under this act. Adds that a licensed lessor may
advertise. Adds licensed distributor to list of persons from whom
equipment may be received or purchased. States that bingo may be
played using pull-tab bingo, break-open bingo, or instant bingo
tickets. Prohibits certain types of card-minding devices. Limits
the price of a break-open, instant, or pull-tab ticket to a maximum
of $1.
SECTION 3. Amends Section 13, Bingo Enabling Act (Art. 179d,
V.T.C.S.).
(b) Requires the granting of temporary authorization to a license
applicant for a period not to exceed 60 days if all required fees
have been paid and all required documents have been filed, and
provides for an automatic revocation is application is denied.
Would permittee transfer of a license by a commercial lessor to a
corporation formed by the licensee or from one corporation owned by
the licensee to another corporation owned by the licensee.
SECTION 4. Amends Section 16, Bingo Enabling Act (Art. 179d,
V.T.C.S.).
Allows the commission by rule to establish the number and types of
bingo games that may be played during an occasion.
SECTION 5. Amends Section 17, Bingo Enabling Act (Art. 179d,
V.T.C.S.).
Allows licensee to prohibit persons under the age of 18 from the
premises.
SECTION 6. Amends Section 18, Bingo Enabling Act (Art. 179d,
V.T.C.S.). Reduces the mandatory minimum waiting period between
bingo occasions from 30 minutes to 10 minutes.
SECTION 7. Amends Section 19a, Bingo Enabling Act (Art. 179d,
V.T.C.S.). Requires that at end of each quarter, licensed
organizations must disburse all of the net proceeds from the
preceding quarter. Defines net proceeds as an amount equal to the
sum of the organization's gross sales and rental income related to
bingo purposes minus expenses. Permits a licensed organization to
retain $4,000 or less in reserve for expenditures authorized under
the Bingo act.
SECTION 8. Repeals Sections 11(e) and 19(b), Bingo Enabling Act
(Art. 179d, V.T.C.S.).
SECTION 10. Emergency Clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The original did not provide for use of a "card-minding device" and
the substitute adds this and defines "card-minding device". The
substitute added language in SECTION 3 regarding the issuance of a
temporary license that makes issuance of a temporary subject to
automatic revocation if the permanent license is denied. The
original did not provide for this. The original contained language
regarding the appearance of the state seal on bingo paper. The
substitute does not contain this language. The original also
contained language requiring organizations to file a schedule of
prices with the Lottery Commission. The substitute does not
contain this provision. The substitute also adds language
permitting the lease of bingo equipment, that was not provided for
in the original. The substitute also added language specifying
that all net bingo proceeds are to be dispersed for charitable
purposes, and permits an organization to retain up to $4,000 in
reserve for expenditures authorized under the act.
SUMMARY OF COMMITTEE ACTION
HB 3021 was heard in a Public Hearing on April 5, 1995. The Chair
laid out HB 3021 and recognized the author Rep. Kuempel to explain
the bill. Rep. Jones offered a complete committee substitute, and
moved adoption. There was no objection. The Chair recognized the
following persons to testify in favor of the bill:
Mr. Robert Hughes, Bingo Charities and Bingo Distributors
Assn.;
The Chair recognized the following persons to testify on,
registering neutral on the bill:
Ms. Deborah D. Tucker, Chair, Bingo Is Good for Non-Profit
Organizations;
Mr. Dan Martin, Texans Against Gambling;
The Chair recognized Rep. Kuempel to close. HB 3021 was left
pending in committee. There was no objection. HB 3021 was
considered in a Formal Meeting on April 24, 1995. The Chair laid
out CSHB 3021 which was pending in committee. There was no
objection. Rep. Torres moved that the full committee adopt HB 3021
as substituted, and that it be reported favorably to the full House
with the recommendation that it do pass and be printed. The motion
prevailed by the following vote: AYES: 9, NAYS: 0, ABSENT: 0.