By Kuempel, Seidlits H.B. No. 3021
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of bingo; providing penalties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2, Bingo Enabling Act (Article 179d,
1-5 Vernon's Texas Civil Statutes), is amended by amending Subdivisions
1-6 (2), (5), and (22) and adding Subdivisions (24), (25), (26), and
1-7 (27) to read as follows:
1-8 (2) "Bingo" or "game" means a specific game of chance,
1-9 commonly known as bingo or lotto, in which prizes are awarded on
1-10 the basis of designated numbers or symbols <on a card> conforming
1-11 to numbers or symbols selected at random.
1-12 (5) "Religious society" means a church, synagogue, or
1-13 other organization or association that is organized primarily for
1-14 religious purposes and that has been in existence within Texas for
1-15 at least eight <10> years.
1-16 (22) "Bingo equipment" means equipment actually used,
1-17 made, or sold for the purpose of use in bingo games and includes
1-18 machines or other devices from which balls or other items are
1-19 withdrawn to determine the letters and numbers or other symbols to
1-20 be called, <the balls or items themselves,> bingo cards, and any
1-21 other device commonly used in the direct operation of the game.
1-22 "Bingo equipment" does not include:
1-23 (A) a bingo game set commonly manufactured and
2-1 sold as a child's game for a retail price of $20 or less unless the
2-2 set or a part of the set is actually used in a bingo game subject
2-3 to regulation under this Act; or
2-4 (B) commonly available component parts of bingo
2-5 equipment such as light bulbs, fuses, or bingo balls.
2-6 (24) "Card-minding device" means a computerized or
2-7 electronic device that:
2-8 (A) registers and verifies bingo winnings on a
2-9 bingo card played with the assistance of the device; and
2-10 (B) is interfaced with and audited by an
2-11 independent data processing device operated by the conductor.
2-12 (25) "Ticket or pull-tab dispenser" means an
2-13 electronic or mechanical device that dispenses a break-open bingo
2-14 ticket, an instant bingo ticket, or a pull-tab bingo game after a
2-15 person inserts money into the device.
2-16 (26) "System service provider" means a person who
2-17 holds a license to provide automated bingo services only to a
2-18 licensed authorized organization licensed to conduct bingo or a
2-19 group of licensed authorized organizations licensed to conduct
2-20 bingo.
2-21 (27) "Automated bingo services" means a computer
2-22 program or system for providing bingo sales, prizes, inventory and
2-23 prize fees, for generating required reports to the commission, and
2-24 for providing the conductor of a bingo game with other information
2-25 requested for accounting or other business purposes.
3-1 SECTION 2. Section 11, Bingo Enabling Act (Article 179d,
3-2 Vernon's Texas Civil Statutes), is amended by amending Subsections
3-3 (d), (k), (o), (p), (r), and (u) and adding Subsections (v), (w),
3-4 and (x) to read as follows:
3-5 (d) The net proceeds of any game of bingo and of any rental
3-6 of premises for bingo by a licensed authorized organization shall
3-7 be exclusively devoted to charitable purposes.
3-8 (k) A game of chance other than bingo may not be conducted
3-9 or allowed during an occasion when bingo is played. This
3-10 subsection does not prohibit the exhibition and play of an
3-11 amusement machine that is not a gambling device as defined by
3-12 Section 47.01, Penal Code.
3-13 (o) A licensed distributor may not furnish by sale, lease,
3-14 or any other manner bingo equipment, devices, or supplies to a
3-15 person other than a licensed authorized organization, another
3-16 licensed distributor, or a person authorized to conduct bingo under
3-17 Section 39(b)(3) or (4) of this Act. A sale of bingo equipment,
3-18 devices, or supplies authorized by this subsection must be made on
3-19 terms requiring immediate payment or requiring payment not later
3-20 than the 30th day after the date of actual delivery.
3-21 (p) No one other than a licensed lessor or a licensed
3-22 authorized organization may advertise <or promote> bingo. <A
3-23 licensed authorized organization may not include in an
3-24 advertisement or promotion the amount of a prize or series of
3-25 prizes offered at a bingo occasion.>
4-1 (r) A licensed distributor may not receive by purchase or
4-2 any other manner bingo equipment, devices, or supplies from a
4-3 person other than a licensed manufacturer or another licensed
4-4 distributor.
4-5 (u) Bingo may be played using a pull-tab bingo game, a
4-6 break-open bingo ticket, or an instant bingo ticket subject to the
4-7 rules of the commission <A licensed authorized organization may not
4-8 conduct a bingo game in which any player uses or is assisted by a
4-9 computerized or electronic device that is used instead of or in
4-10 conjunction with the player's traditional paper or nondisposable
4-11 bingo card>.
4-12 (v) A person may not use a card-minding device:
4-13 (1) to generate or determine the random letters,
4-14 numbers, or other symbols used in playing the bingo card played
4-15 with the device's assistance;
4-16 (2) as a receptacle for the deposit of tokens or
4-17 money, including coins or paper currency, in payment for playing
4-18 the bingo card played with the device's assistance; or
4-19 (3) as a dispenser for the payment of a bingo prize,
4-20 including coins, paper currency, or any thing of value for the
4-21 bingo card played with the device's assistance.
4-22 (w) A ticket or pull-tab dispenser may not be used:
4-23 (1) to generate or determine the random letters,
4-24 numbers, or other symbols used in playing a bingo game;
4-25 (2) to affect the chances of winning at a bingo game;
5-1 or
5-2 (3) as a dispenser for the payment of a bingo prize,
5-3 including coins, paper currency, or any thing of value for the
5-4 bingo game played.
5-5 (x) The price of a break-open bingo ticket, instant bingo
5-6 ticket, or a pull-tab bingo game sold by a ticket or pull-tab
5-7 dispenser may not exceed $1 for each break-open bingo ticket,
5-8 instant bingo ticket, or pull-tab bingo game sold.
5-9 SECTION 3. Section 13, Bingo Enabling Act (Article 179d,
5-10 Vernon's Texas Civil Statutes), is amended by amending Subsections
5-11 (b) and (j) and adding Subsections (s), (t), and (u) to read as
5-12 follows:
5-13 (b) If a license is not issued or denied before the 31st day
5-14 after the date of the filing of an application for a license, the
5-15 payment of the proper license fee, the filing of a copy of a valid
5-16 Section 501(c) exemption statement issued by the Internal Revenue
5-17 Service, if required, and the completion of a criminal background
5-18 investigation has been completed <On preliminary approval of an
5-19 application>, the commission shall <may> issue a temporary
5-20 authorization for the activity requested that is valid, subject to
5-21 automatic revocation if a denial letter is issued, for <any period
5-22 of> not more than 60 days. The effective period may be extended by
5-23 the commission on written request filed before the end of the
5-24 period of temporary authorization except as limited by Subsection
5-25 (h) of this section.
6-1 (j) A license may not be transferred by a licensee, except
6-2 that<, in accordance with commission rules,> a licensed commercial
6-3 lessor <who is an individual> may transfer a <the individual's>
6-4 license held by the licensee to a corporation formed by the
6-5 licensee or from one corporation owned by the licensee to another
6-6 corporation owned by the licensee <individual>.
6-7 (s) It is an offense for a person not licensed under this
6-8 Act to sell or attempt to induce the sale of bingo equipment,
6-9 devices, supplies, or automated bingo services to a person licensed
6-10 to conduct bingo games.
6-11 (t) A system service provider shall not provide these
6-12 services to anyone other than a licensed authorized organization or
6-13 a group of licensed authorized organizations to conduct bingo. It
6-14 is an offense for a system service provider to provide these
6-15 services to anyone other than a licensed authorized organization or
6-16 a group of licensed authorized organizations to conduct bingo.
6-17 (u) An offense under Subsection (s) or (t) is a Class A
6-18 misdemeanor.
6-19 SECTION 4. The Bingo Enabling Act (Article 179d, Vernon's
6-20 Texas Civil Statutes), is amended by adding Section 13e to read as
6-21 follows:
6-22 Sec. 13e. SYSTEM SERVICE PROVIDER'S LICENSE. (a) To sell
6-23 or supply, in any manner, automated bingo services for the use of
6-24 licensed authorized organizations, each system service provider
6-25 must obtain a license from the commission.
7-1 (b) An applicant for a license must file with the commission
7-2 a written application that includes:
7-3 (1) the name and address of the applicant;
7-4 (2) if a noncorporate entity, the name and address of
7-5 each owner;
7-6 (3) if a corporation, the name and address of each
7-7 officer and director and each person owning 10 percent or more of
7-8 any class of stock in the corporation;
7-9 (4) information regarding whether the applicant or any
7-10 person who is required to be named in the application has been
7-11 convicted of a felony, criminal fraud, gambling, or gambling
7-12 related offense, or a crime of moral turpitude; and
7-13 (5) information regarding whether the applicant or any
7-14 person required to be named in the application is an owner,
7-15 officer, director, shareholder, agent, or employee of a commercial
7-16 lessor licensed under this Act.
7-17 (c) A person is not eligible for a license under this
7-18 section if:
7-19 (1) the person has been convicted of a felony,
7-20 criminal fraud, a gambling offense, a gambling related offense, or
7-21 a crime of moral turpitude and it has been less than 10 years since
7-22 the termination of the sentence, parole, or probation related to
7-23 the offense; or
7-24 (2) the person is an owner, officer, or director of a
7-25 holder of a commercial lessor licensed under this Act.
8-1 (d) The fee for a system service provider license is $1,000
8-2 plus any cost incurred to conduct the criminal background checks.
8-3 (e) A system service provider shall not hold another license
8-4 under this Act.
8-5 (f) A license for a system service provider shall be revoked
8-6 if within the license period any disqualifications under this
8-7 section occur.
8-8 (g) A system service provider is subject to the same
8-9 licensing provisions for manufacturers and distributors as stated
8-10 in Sections 13a(a) and 13b(b) of this Act.
8-11 (h) The commission upon receipt of a complaint may inspect
8-12 the system service provider services. The system service provider
8-13 shall provide sufficient information to the commission in regards
8-14 to a complaint.
8-15 SECTION 5. Section 16(j), Bingo Enabling Act (Article 179d,
8-16 Vernon's Texas Civil Statutes), is amended to read as follows:
8-17 (j) The commission by rule may <shall> establish the number
8-18 and type of bingo games that may be played during an occasion.
8-19 SECTION 6. Section 17(a), Bingo Enabling Act (Article 179d,
8-20 Vernon's Texas Civil Statutes), is amended to read as follows:
8-21 (a) A person under the age of 18 years may not play a game
8-22 of bingo conducted under a license issued under this Act unless the
8-23 person is accompanied by his parent or guardian, except that a
8-24 licensee may prohibit all persons under the age of 18 or an age
8-25 younger than 18 years of age as determined by the licensee from
9-1 entering the licensed premises by posting a written notice to that
9-2 effect at the place where the game is conducted.
9-3 SECTION 7. Section 18, Bingo Enabling Act (Article 179d,
9-4 Vernon's Texas Civil Statutes), is amended to read as follows:
9-5 Sec. 18. Frequency and Times of Games. A game of bingo may
9-6 not be conducted under any license issued under this Act more often
9-7 than three days per calendar week, not to exceed four hours per
9-8 occasion <24-hour period>. Only one bingo occasion per day may be
9-9 conducted under each license issued under this Act. No more than
9-10 two organizations may conduct a game of bingo in one place on one
9-11 day. If two organizations conduct games of bingo in one place on
9-12 one day, these occasions must be announced separately, and an
9-13 intermission of at least 10 <30> minutes must occur between the
9-14 games. <A game conducted under a temporary license may not be
9-15 conducted in violation of this section.>
9-16 SECTION 8. Section 19a, Bingo Enabling Act (Article 179d,
9-17 Vernon's Texas Civil Statutes), is amended by amending Subsections
9-18 (d) and (k) and adding Subsections (l) and (m) to read as follows:
9-19 (d) The following items of expense incurred or paid by an
9-20 organization in connection with bingo must be paid from the
9-21 organization's bingo account:
9-22 (1) advertising;
9-23 (2) security during a bingo occasion;
9-24 (3) the purchase and repair of bingo supplies and
9-25 equipment;
10-1 (4) prizes, other than authorized cash prizes;
10-2 (5) stated rental;
10-3 (6) bookkeeping, legal, or accounting services;
10-4 (7) fees for callers, cashiers, and ushers;
10-5 (8) license fees; <and>
10-6 (9) janitorial services; and
10-7 (10) payment for services provided by a system service
10-8 provider, which may be paid from gross receipts as defined in this
10-9 Act.
10-10 (k) Before the end of each quarter, each licensed authorized
10-11 organization shall disburse for charitable purposes all of the net
10-12 proceeds from the <an amount not less than 35 percent of the
10-13 organization's adjusted gross receipts from the last> preceding
10-14 quarter<, less the amount of authorized expenses not to exceed six
10-15 percent of the gross receipts. For purposes of this subsection,
10-16 adjusted gross receipts means gross receipts plus any consideration
10-17 received from the rental of premises for bingo by the authorized
10-18 organization, less the amount of prizes paid in the preceding
10-19 quarter. If a licensed authorized organization fails to meet the
10-20 requirements of this subsection for a quarter, the commission in
10-21 applying appropriate sanctions may consider whether, taking into
10-22 account the amount required to be distributed during that quarter
10-23 and the three preceding quarters and the charitable distributions
10-24 for each of those quarters, the organization has distributed a
10-25 total amount sufficient to have met the 35 percent requirement for
11-1 that quarter and the three preceding quarters combined>.
11-2 (l) In Subsection (k) of this section, "net proceeds from
11-3 the preceding quarter" means an amount equal to the sum of the
11-4 organization's gross sales and the organization's rental income
11-5 related to bingo purposes minus the expenses allowed under Section
11-6 19(c) of this Act incurred during the preceding quarter.
11-7 (m) Notwithstanding Subsection (k) of this section, a
11-8 licensed authorized organization may retain $10,000 or less in the
11-9 organization's bingo account as a reserve for expenditures
11-10 authorized under Section 19(c) of this Act.
11-11 SECTION 9. Sections 11(e) and 19(b), Bingo Enabling Act
11-12 (Article 179d, Vernon's Texas Civil Statutes), are repealed.
11-13 SECTION 10. This Act takes effect September 1, 1995.
11-14 SECTION 11. The importance of this legislation and the
11-15 crowded condition of the calendars in both houses create an
11-16 emergency and an imperative public necessity that the
11-17 constitutional rule requiring bills to be read on three several
11-18 days in each house be suspended, and this rule is hereby suspended.