BILL ANALYSIS
H.B. 3021
By: Kuempel (Cain)
State Affairs
5-25-95
Senate Committee Report (Unamended)
BACKGROUND
Currently, the Texas Lottery Commission regulates bingo.
PURPOSE
As proposed, H.B. 3021 amends the provisions of the Bingo Enabling
Act.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the Texas Lottery Commission in SECTION 5 (Section 16(j),
Article 179d, V.T.C.S.) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 2, Article 179d, V.T.C.S. (Bingo Enabling
Act), by amending Subdivisions (2), (5), and (22) and adding
Subdivisions (24)-(27), to redefine "bingo," "game," "religious
society," and "bingo equipment" and defines "card-minding device,"
"ticket or pull-tab dispenser," "system service provider," and
"automated bingo services."
SECTION 2. Amends Section 11, Article 179d, V.T.C.S., by amending
Subsections (d), (k), (o), (p), (r), and (u) and adding Subsections
(v), (w), and (x), as follows:
(d) Requires the net proceeds of any game of bingo and of any
rental of premises for bingo by a licensed authorized
organization to be exclusively devoted to charitable purposes.
(k) Provides that this subsection does not prohibit the
exhibition and play of an amusement machine that is not a
gambling device as defined by Section 47.01, Penal Code.
(o) Provides that the lease of bingo equipment is subject to
the provisions of sale or supply of bingo equipment.
(p) Deletes the provision which prohibits a licensed
authorized organization from including in an advertisement or
promotion the amount of a prize or series of prizes offered at
a bingo occasion.
(r) Prohibits a licensed distributer from receiving bingo
equipment or supplies from a person other than a licensed
manufacturer or another licensed distributor.
(u) Authorized bingo to be played using a pull-tab bingo
game, a break-open bingo ticket, or an instant bingo ticket
subject to the rules of the Texas Lottery Commission
(commission). Deletes existing Subsection (u).
(v) Sets forth the conditions in which a person is prohibited
from using a card-minding device.
(w) Sets forth the conditions in which a person is prohibited
from using a ticket or pull-tab dispenser.
(x) Prohibits the price of a break-open bingo ticket, instant
bingo ticket, or a pull-tab bingo game sold by a ticket or
pull-tab dispenser from exceeding $1 for each item sold.
SECTION 3. Amends Section 13, Article 179d, V.T.C.S., by amending
Subsections (b) and (j) and adding Subsections (s)-(u), as follows:
(b) Requires the commission, if a license is not issued or
denied before the 31st day after the date of the filing of an
application for a license, the payment of the proper license
fee, the filing of a copy of a valid Section 501(c) exemption
statement issued by the IRS, if required, and the completion
of a criminal background investigation has been completed, to
issue a temporary authorization for the activity requested
that is valid, subject to automatic revocation if a denial
letter is issued, for not more than 60 days.
(j) Provides that a license may only be transferred to a
corporation formed by a current licensee or to a corporation
owned by a licensee.
(s) Provides that it is an offense for a person not licensed
under this Act to sell or attempt to induce the sale of bingo
equipment or supplies to a person licensed to conduct bingo
games.
(t) Prohibits a system service provider from providing these
services to anyone other than a licensed authorized
organization or a group of licensed authorized organizations
to conduct bingo. Provides that it is an offense for a system
service provider to provide these services to anyone other
than a licensed authorized organization to conduct bingo.
(u) Provides that an offense under Subsection (s) or (t) is
a Class A misdemeanor.
SECTION 4. Amends Article 179d, V.T.C.S., by adding Section 13e,
as follows:
Sec. 13e. SYSTEM SERVICE PROVIDER'S LICENSE. (a) Requires
each system service provider to obtain a license from the
commission in order to sell or supply automated bingo services
for the use of licensed authorized organizations.
(b) Sets forth the contents an applicant for a license is
required to include in the filed written application.
(c) Sets forth the conditions in which a person is not
eligible for a license under this section.
(d) Provides that the fee for a system service provider
license is $1,000 plus any cost incurred to conduct the
criminal background checks.
(e) Prohibits a system service provider from holding
another license under this Act.
(f) Requires a license for a system service provider to be
revoked if within the license period any disqualifications
under this section occur.
(g) Provides that a system service provider is subject to
the same license provisions for manufacturers and
distributors as stated in Sections 13a(a) and 13b(b) of this
Act.
(h) Authorizes the commission upon receipt of a complaint
to inspect the system service provider services. Requires
the system service provider to provide sufficient
information to the commission in regards to a complaint.
SECTION 5. Amends Section 16(j), Article 179d, V.T.C.S., to
authorize, rather than require, the commission to adopt rules
establishing the number and types of bingo games to be played
during an occasion.
SECTION 6. Amends Section 17(a), Article 179d, V.T.C.S., to make
a nonsubstantive change.
SECTION 7. Amends Section 18, Article 179d, V.T.C.S., to provide
that during a bingo occasion an intermission of at least 10, rather
than 30 minutes must occur between games. Deletes the provision
which prohibits a game conducted under a temporary license from
being conducted in violation of this section.
SECTION 8. Amends Section 19a, Article 179d, V.T.C.S., by amending
Subsections (d) and (k) and adding Subsections (l) and (m), as
follows:
(d) Requires payment for services provided by a system
service provider, which may be paid from gross receipts as
defined in this Act to be paid from the organization's bingo
account.
(k) Requires each licensed authorized organization to
disburse for charitable purposes all of the net proceeds from
the preceding quarter. Deletes all language to the contrary.
(l) Defines "net proceeds from the preceding quarter."
(m) Authorizes a licensed authorized organization to retain
$10,000 or less in the organization's bingo account as a
reserve for expenditures authorized under Section 19(c) of
this Act.
SECTION 9. Repealer: Sections 11(e) and 19(b), Article 179d,
V.T.C.S. (Restrictions on Bingo Games-Persons Operating and
Conducting Games; Equipment; Expenses; Compensation).
SECTION 10. Effective date: September 1, 1995.
SECTION 11. Emergency clause.