By Gray H.B. No. 2946
74R7904 MWV-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the conduct of a bingo game by the use of electronic
1-3 devices.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2, Bingo Enabling Act (Article 179d,
1-6 Vernon's Texas Civil Statutes), is amended by amending Subdivisions
1-7 (2) and (22) and adding Subdivisions (24), (25), and (26) to read
1-8 as follows:
1-9 (2) "Bingo" or "game" means a specific game of chance,
1-10 commonly known as bingo, or lotto, in which prizes are awarded on
1-11 the basis of designated numbers or symbols on a card conforming to
1-12 numbers or symbols selected at random and reflected on a cardboard,
1-13 paper, or electronically produced card.
1-14 (22) "Bingo equipment" means equipment actually used,
1-15 made, leased, or sold for the purpose of use in bingo games and
1-16 includes machines or other devices from which balls or other items
1-17 are withdrawn to determine the letters and numbers or other symbols
1-18 to be called, the balls or items themselves, bingo cards, and any
1-19 other device commonly used in the direct operation of the game.
1-20 "Bingo equipment" does not include:
1-21 (A) a bingo game set commonly manufactured and
1-22 sold as a child's game for a retail price of $20 or less unless the
1-23 set or a part of the set is actually used in a bingo game subject
1-24 to regulation under this Act; or
2-1 (B) commonly available component parts of bingo
2-2 equipment such as computers, light bulbs, fuses, or bingo balls.
2-3 (24) "Computer" means an electronic, magnetic,
2-4 optical, electrochemical, or other high-speed data processing
2-5 device that performs logical, arithmetic, or memory functions by
2-6 the manipulation of electronic or magnetic impulses and includes
2-7 all input, output, processing, storage, or communication facilities
2-8 that are connected or related to the device.
2-9 (25) "Network service provider" means a person who
2-10 holds a license to provide bingo network services.
2-11 (26) "Bingo network services" means:
2-12 (A) services provided to a licensed authorized
2-13 organization or a group of licensed authorized organizations to
2-14 conduct the activities permitted by Section 11b; or
2-15 (B) arranging for licensed authorized
2-16 organizations to form groups for sharing services, expenses, and
2-17 revenues under Section 11b.
2-18 SECTION 2. Sections 11(e) and (f), Bingo Enabling Act
2-19 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
2-20 as follows:
2-21 (e) Except for games conducted under Section 11b of this
2-22 Act, a <A> prize may not exceed the sum or value of $500 in any
2-23 single game of bingo.
2-24 (f) Except for games conducted under Section 11b of this
2-25 Act, a <A> series of prizes offered or awarded on any one bingo
2-26 occasion for bingo games other than instant bingo may not aggregate
2-27 more than $2,500.
3-1 SECTION 3. The Bingo Enabling Act (Article 179d, Vernon's
3-2 Texas Civil Statutes) is amended by adding Section 11b to read as
3-3 follows:
3-4 Sec. 11b. COMPUTER NETWORK GAMES. (a) Notwithstanding any
3-5 other provision of this Act, a licensed authorized organization
3-6 may:
3-7 (1) use a computer to conduct an on-premise bingo game
3-8 that provides each player with an equal opportunity to play and
3-9 win; and
3-10 (2) simultaneously conduct an on-premise bingo game
3-11 and, using a computer network, an off-premise bingo game in which
3-12 prizes are awarded from a pool based on the number of players.
3-13 (b) A licensed authorized organization conducting a game
3-14 under this section shall award to the participants in the game
3-15 prizes totaling at least 65 percent of the gross receipts from that
3-16 game.
3-17 (c) A licensed authorized organization may contract with
3-18 another licensed authorized organization to share revenues and
3-19 expenses and, individually or jointly, may obtain services from a
3-20 network service provider.
3-21 SECTION 4. Section 13c, Bingo Enabling Act (Article 179d,
3-22 Vernon's Texas Civil Statutes), is amended by amending Subsections
3-23 (a), (e), and (g) to read as follows:
3-24 (a) A license issued under Section 13a, <or> 13b, or 13g of
3-25 this Act is subject to the restrictions prescribed by this section.
3-26 (e) It is an offense for an unlicensed person to sell or
3-27 attempt to induce the sale of bingo equipment, devices, or supplies
4-1 or to provide or attempt to induce the provision of bingo network
4-2 services to a person licensed to conduct bingo games.
4-3 (g) The commission may deny an application for a license or
4-4 renewal of a license issued under Section 13a, <or> 13b, or 13g of
4-5 this Act for any cause that would permit or require the suspension
4-6 or revocation of a license issued under the applicable section.
4-7 SECTION 5. The Bingo Enabling Act (Article 179d, Vernon's
4-8 Texas Civil Statutes) is amended by adding Section 13g to read as
4-9 follows:
4-10 Sec. 13g. (a) A person must hold a bingo network service
4-11 provider license issued by the commission to provide bingo network
4-12 services.
4-13 (b) Each applicant must file with the commission a written
4-14 application on a form prescribed by the commission, duly executed
4-15 and verified, that includes the following information:
4-16 (1) the full name and address of the applicant;
4-17 (2) the name and address of each location operated by
4-18 the applicant from which bingo network services are to be provided;
4-19 (3) if a noncorporate applicant, the name and home
4-20 address of each owner;
4-21 (4) if a corporate applicant, the name and home
4-22 address of each officer or director and of each person that owns at
4-23 least 10 percent of any class of stock in the corporation;
4-24 (5) if a foreign corporation, the name, business name
4-25 and address, and home address of its registered agent for service
4-26 in this state;
4-27 (6) a full description of each type of network service
5-1 that the applicant intends to provide in this state;
5-2 (7) the name and address of each manufacturer,
5-3 supplier, distributor, or network service provider in which the
5-4 applicant has a financial interest and the details of that
5-5 financial interest, including an indebtedness between the applicant
5-6 and the manufacturer, supplier, distributor, or network service
5-7 provider of $500 or more;
5-8 (8) whether the applicant or any person required to be
5-9 named in the application has been convicted in this state or any
5-10 other state of a felony, criminal fraud, gambling or
5-11 gambling-related offense, or crime of moral turpitude;
5-12 (9) whether the applicant or any person required to be
5-13 named in the application is an owner, officer, director,
5-14 shareholder, agent, or employee of a commercial lessor,
5-15 distributor, supplier, manufacturer, or network service provider
5-16 licensed under this Act, or conducts, promotes, administers, or
5-17 assists in conducting, promoting, or administering bingo games for
5-18 which a license is required under this Act;
5-19 (10) whether the applicant or any person required to
5-20 be named in the application is a public officer or public employee
5-21 in this state;
5-22 (11) the name of each state in which the applicant is
5-23 or has been licensed to manufacture, distribute, or supply bingo
5-24 equipment, devices, or supplies, or provide bingo network services
5-25 each license number, the period licensed under each license, and
5-26 whether or not a license was revoked, suspended, withdrawn,
5-27 canceled, or surrendered, and, if so, the reasons for the action
6-1 taken;
6-2 (12) whether the applicant or any person required to
6-3 be named in the application is or has been a professional gambler
6-4 or gambling promoter;
6-5 (13) the name and address of each manufacturer,
6-6 supplier, or distributor of bingo equipment, devices, or supplies
6-7 or network service provider in which the applicant or a person
6-8 required to be named in the application is an owner, officer,
6-9 shareholder, director, agent, or employee; and
6-10 (14) any other information the commission requests.
6-11 (c) The following persons are not eligible for a license
6-12 under this section:
6-13 (1) a person convicted of a felony, criminal fraud,
6-14 gambling or gambling-related offense, or crime of moral turpitude,
6-15 if less than 10 years have elapsed since the termination of any
6-16 sentence, parole, mandatory supervision, community supervision or
6-17 probation served for the offense;
6-18 (2) a person who is or has been a professional gambler
6-19 or gambling promoter;
6-20 (3) an elected or appointed public officer or a public
6-21 employee;
6-22 (4) an owner, officer, director, shareholder, agent,
6-23 or employee of a commercial lessor licensed under this Act;
6-24 (5) a person who conducts, promotes, or administers,
6-25 or assists in conducting, promoting, or administering bingo games
6-26 for which a license is required by this Act;
6-27 (6) a manufacturer required to be licensed under this
7-1 Act;
7-2 (7) a person whose license to manufacture, distribute,
7-3 or supply bingo equipment, devices, or supplies or to provide bingo
7-4 network services has been revoked within the past year by any other
7-5 state;
7-6 (8) an owner, officer, director, shareholder, or
7-7 person having an equitable or credit interest in another
7-8 manufacturer, distributor, or network service provider licensed or
7-9 required to be licensed under this Act; or
7-10 (9) a person, firm, or corporation:
7-11 (A) in which a person described by Subdivision
7-12 (1), (2), (3), (4), (5), (6), (7), or (8) of this subsection or in
7-13 which a person married or related in the first degree by
7-14 consanguinity or affinity, as determined under Subchapter B,
7-15 Chapter 573, Government Code, to one of those persons has greater
7-16 than a 10 percent proprietary, equitable, or credit interest or in
7-17 which one of those persons is active or employed; or
7-18 (B) in whose application a person described by
7-19 Subdivision (1), (2), (3), (4), (5), (6), (7), or (8) of this
7-20 subsection is required to be named.
7-21 (d) The fee for a network service provider's license is
7-22 $1,000. In addition to the license fee, the commission may require
7-23 an additional fee in an amount necessary to defray the cost of a
7-24 background investigation of the applicant, including the inspection
7-25 of operating locations. The commission may establish by rule the
7-26 conditions and procedure for payment of the additional fee.
7-27 SECTION 6. Section 19(b), Bingo Enabling Act (Article 179d,
8-1 Vernon's Texas Civil Statutes), is amended to read as follows:
8-2 (b) A game of bingo may <not> be conducted only with <any>
8-3 equipment <except> that is owned or leased by the licensed
8-4 authorized organization <or used without payment of any
8-5 compensation therefor by the licensee>.
8-6 SECTION 7. Sections 11(p) and (u), Bingo Enabling Act
8-7 (Article 179d, Vernon's Texas Civil Statutes), are repealed.
8-8 SECTION 8. This Act takes effect September 1, 1995.
8-9 SECTION 9. The importance of this legislation and the
8-10 crowded condition of the calendars in both houses create an
8-11 emergency and an imperative public necessity that the
8-12 constitutional rule requiring bills to be read on three several
8-13 days in each house be suspended, and this rule is hereby suspended.