H.B. No. 3021
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) and (25) to read as
1-7 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1-19 withdrawn to determine the letters and numbers or other symbols to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, electronic or mechanical cardminding devices, pull-tab
1-21 or instant bingo dispensers, <the balls or items themselves,> bingo
1-22 cards, and any other device commonly used in the direct operation
1-23 of the game. "Bingo equipment" does not include:
2-1 (A) a bingo game set commonly manufactured and
2-2 sold as a child's game for a retail price of $20 or less unless the
2-3 set or a part of the set is actually used in a bingo game subject
2-4 to regulation under this Act; or
2-5 (B) commonly available component parts of bingo
2-6 equipment such as light bulbs, fuses, or bingo balls.
2-7 (24) "Ticket or pull-tab dispenser" means an
2-8 electronic or mechanical device that dispenses a break-open bingo
2-9 ticket, an instant bingo ticket, or a pull-tab bingo game after a
2-10 person inserts money into the device. A bingo game representation
2-11 or combination of bingo games must be shown on the ticket
2-12 dispensed.
2-13 (25) "Automated bingo services" means a computer
2-14 program or system for registering or accounting for bingo sales,
2-15 prizes, inventory, and prize fees, for generating required reports
2-16 to the commission, and for providing the conductor of a bingo game
2-17 with other information requested for accounting or other business
2-18 purposes.
2-19 SECTION 2. Section 11, Bingo Enabling Act (Article 179d,
2-20 Vernon's Texas Civil Statutes), is amended by amending Subsections
2-21 (d), (k), (o), (r), and (u) and adding Subsections (v), (w), (x),
2-22 (y), and (z) to read as follows:
2-23 (d) The net proceeds of any game of bingo and of any rental
2-24 of premises for bingo by a licensed authorized organization shall
2-25 be exclusively devoted to charitable purposes.
3-1 (k) A game of chance other than bingo may not be conducted
3-2 or allowed during an occasion when bingo is played. This
3-3 subsection does not prohibit the exhibition and play of an
3-4 amusement machine that is not a gambling device as defined by
3-5 Section 47.01, Penal Code.
3-6 (o) A licensed distributor may not furnish by sale, lease,
3-7 or any other manner bingo equipment, devices, or supplies to a
3-8 person other than a licensed authorized organization, another
3-9 licensed distributor, or a person authorized to conduct bingo under
3-10 Section 39(b)(3) or (4) of this Act. A sale of bingo equipment,
3-11 devices, or supplies authorized by this subsection must be made on
3-12 terms requiring immediate payment or requiring payment not later
3-13 than the 30th day after the date of actual delivery.
3-14 (r) A licensed distributor may not receive by purchase or
3-15 any other manner bingo equipment, devices, or supplies from a
3-16 person other than a licensed manufacturer or another licensed
3-17 distributor.
3-18 (u) Bingo may be played using a pull-tab bingo game, a
3-19 break-open bingo ticket, or an instant bingo ticket subject to the
3-20 rules of the commission <A licensed authorized organization may not
3-21 conduct a bingo game in which any player uses or is assisted by a
3-22 computerized or electronic device that is used instead of or in
3-23 conjunction with the player's traditional paper or nondisposable
3-24 bingo card>.
3-25 (v) A person may not use a card-minding device:
4-1 (1) to generate or determine the random letters,
4-2 numbers, or other symbols used in playing the bingo card played
4-3 with the device's assistance;
4-4 (2) as a receptacle for the deposit of tokens or
4-5 money, including coins or paper currency, in payment for playing
4-6 the bingo card played with the device's assistance; or
4-7 (3) as a dispenser for the payment of a bingo prize,
4-8 including coins, paper currency, or any thing of value for the
4-9 bingo card played with the device's assistance. No more than 30
4-10 percent of gross bingo game sales at each bingo occasion can be on
4-11 electronic or mechanical card-minding devices. This provision does
4-12 not include, pull-tabs, instant bingo tickets, or break-open bingo
4-13 games.
4-14 (w) A ticket or pull-tab dispenser may not be used:
4-15 (1) to generate or determine the random letters,
4-16 numbers, or other symbols used in playing a bingo game;
4-17 (2) to affect the chances of winning at a bingo game;
4-18 (3) as a dispenser for the payment of a bingo prize,
4-19 including coins, paper currency, or any thing of value for the
4-20 bingo game played.
4-21 (x) The price of a break-open bingo ticket, instant bingo
4-22 ticket, or a pull-tab bingo game sold by a ticket or pull-tab
4-23 dispenser may not exceed $1 for each break-open bingo ticket,
4-24 instant bingo ticket, or pull-tab bingo game sold. No more than
4-25 five pull-tab or instant bingo dispensers may be operated in any
5-1 bingo premises.
5-2 (y) A licensed authorized organization may lease or purchase
5-3 electronic or mechanical card-minding devices, pull-tab or instant
5-4 bingo ticket dispensers, bingo machines, consoles, blowers, and
5-5 flashboards directly from licensed distributors.
5-6 (z) The toll-free "800" number operated by the Problem
5-7 Gamblers' HelpLine of the Texas Council on Problem and Compulsive
5-8 Gambling must be prominently displayed on each card-minding device
5-9 and ticket or pull-tab dispenser.
5-10 SECTION 3. Section 13, Bingo Enabling Act (Article 179d,
5-11 Vernon's Texas Civil Statutes), is amended by amending Subsections
5-12 (b) and (j) and adding Subsections (s), (t), and (u) to read as
5-13 follows:
5-14 (b) If a license is not issued or denied before the 31st day
5-15 after the date of the filing of an application for a license, the
5-16 payment of the proper license fee, the filing of a copy of a valid
5-17 Section 501(c) exemption statement issued by the Internal Revenue
5-18 Service, if required, and the completion of a criminal background
5-19 investigation has been completed <On preliminary approval of an
5-20 application>, the commission shall <may> issue a temporary
5-21 authorization for the activity requested that is valid, subject to
5-22 automatic revocation if a denial letter is issued, for <any period
5-23 of> not more than 60 days. The effective period may be extended by
5-24 the commission on written request filed before the end of the
5-25 period of temporary authorization except as limited by Subsection
6-1 (h) of this section.
6-2 (j) A license may not be transferred by a licensee, except
6-3 that<, in accordance with commission rules,> a licensed commercial
6-4 lessor <who is an individual> may transfer a <the individual's>
6-5 license held by the licensee to a corporation formed by the
6-6 licensee or from one corporation owned by the licensee to another
6-7 corporation owned by the licensee <individual>.
6-8 (s) It is an offense for a person not licensed under this
6-9 Act to sell or attempt to induce the sale of bingo equipment,
6-10 devices, supplies, or automated bingo services to a person licensed
6-11 to conduct bingo games.
6-12 (t) A system service provider shall not provide these
6-13 services to anyone other than a licensed authorized organization or
6-14 a group of licensed authorized organizations to conduct bingo. It
6-15 is an offense for a system service provider to provide these
6-16 services to anyone other than a licensed authorized organization or
6-17 a group of licensed authorized organizations to conduct bingo.
6-18 (u) An offense under Subsection (s) or (t) is a Class A
6-19 misdemeanor.
6-20 SECTION 4. The Bingo Enabling Act (Article 179d, Vernon's
6-21 Texas Civil Statutes) is amended by adding Section 13e to read as
6-22 follows:
6-23 Sec. 13e. SYSTEM SERVICE PROVIDER'S LICENSE. (a) To sell
6-24 or supply, in any manner, automated bingo services for the use of
6-25 licensed authorized organizations, each system service provider
7-1 must obtain a license from the commission.
7-2 (b) An applicant for a license must file with the commission
7-3 a written application that includes:
7-4 (1) the name and address of the applicant;
7-5 (2) if a noncorporate entity, the name and address of
7-6 each owner;
7-7 (3) if a corporation, the name and address of each
7-8 officer and director and each person owning 10 percent or more of
7-9 any class of stock in the corporation;
7-10 (4) information regarding whether the applicant or any
7-11 person who is required to be named in the application has been
7-12 convicted of a felony, criminal fraud, gambling, or gambling
7-13 related offense, or a crime of moral turpitude; and
7-14 (5) information regarding whether the applicant or any
7-15 person required to be named in the application is an owner,
7-16 officer, director, shareholder, agent, or employee of a commercial
7-17 lessor licensed under this Act.
7-18 (c) A person is not eligible for a license under this
7-19 section if:
7-20 (1) the person has been convicted of a felony,
7-21 criminal fraud, a gambling offense, a gambling related offense, or
7-22 a crime of moral turpitude and it has been less than 10 years since
7-23 the termination of the sentence, parole, or probation related to
7-24 the offense; or
7-25 (2) the person is an owner, officer, or director of a
8-1 holder of a commercial lessor licensed under this Act.
8-2 (d) The fee for a system service provider license is $1,000
8-3 plus any cost incurred to conduct the criminal background checks.
8-4 (e) A system service provider shall not hold another license
8-5 under this Act.
8-6 (f) A license for a system service provider shall be revoked
8-7 if within the license period any disqualifications under this
8-8 section occur.
8-9 (g) A system service provider is subject to the same
8-10 licensing provisions for manufacturers and distributors as stated
8-11 in Sections 13a(a) and 13b(b) of this Act.
8-12 (h) The commission upon receipt of a complaint may inspect
8-13 the system service provider services. The system service provider
8-14 shall provide sufficient information to the commission in regards
8-15 to a complaint.
8-16 SECTION 5. Section 16(j), Bingo Enabling Act (Article 179d,
8-17 Vernon's Texas Civil Statutes), is amended to read as follows:
8-18 (j) The commission by rule may <shall> establish the number
8-19 and type of bingo games that may be played during an occasion.
8-20 SECTION 6. Section 17(a), Bingo Enabling Act (Article 179d,
8-21 Vernon's Texas Civil Statutes), is amended to read as follows:
8-22 (a) A person under the age of 18 years may not play a game
8-23 of bingo conducted under a license issued under this Act unless the
8-24 person is accompanied by his parent or guardian, except that a
8-25 licensee may prohibit all persons under the age of 18 or an age
9-1 younger than 18 years of age as determined by the licensee from
9-2 entering the licensed premises by posting a written notice to that
9-3 effect at the place where the game is conducted.
9-4 SECTION 7. Section 18, Bingo Enabling Act (Article 179d,
9-5 Vernon's Texas Civil Statutes), is amended to read as follows:
9-6 Sec. 18. FREQUENCY AND TIMES OF GAMES. An occasion <A game>
9-7 of bingo may not be conducted under any license issued under this
9-8 Act more often than three days per calendar week, not to exceed
9-9 four hours per 24-hour period. A licensed organization may conduct
9-10 two occasions per 24-hour period. <Only one bingo occasion per day
9-11 may be conducted under each license issued under this Act.> No
9-12 more than two organizations may conduct a game of bingo in one
9-13 place on one 24-hour period <day>. If two organizations conduct
9-14 games of bingo in one place on one 24-hour period <day>, these
9-15 occasions must be announced separately, and an intermission of at
9-16 least 10 <30> minutes must occur between the games. No more than
9-17 two bingo occasions per day may be conducted at any location except
9-18 that a third occasion per day may be conducted at any location
9-19 except that a third occasion may be conducted under a temporary
9-20 license held by a licensed authorized organization at that
9-21 location. No more than seven licensed authorized organizations may
9-22 conduct bingo at any bingo premises. <A game conducted under a
9-23 temporary license may not be conducted in violation of this
9-24 section.>
9-25 SECTION 8. Section 19a, Bingo Enabling Act (Article 179d,
10-1 Vernon's Texas Civil Statutes), is amended by amending Subsection
10-2 (d) to read as follows:
10-3 (d) The following items of expense incurred or paid by an
10-4 organization in connection with bingo must be paid from the
10-5 organization's bingo account:
10-6 (1) advertising;
10-7 (2) security during a bingo occasion;
10-8 (3) the purchase and repair of bingo supplies and
10-9 equipment;
10-10 (4) prizes, other than authorized cash prizes;
10-11 (5) stated rental;
10-12 (6) bookkeeping, legal, or accounting services;
10-13 (7) fees for callers, cashiers, and ushers;
10-14 (8) license fees; <and>
10-15 (9) janitorial services; and
10-16 (10) payment for services provided by a system service
10-17 provider, which may be paid from gross receipts as defined in this
10-18 Act.
10-19 SECTION 9. Section 19(b), Bingo Enabling Act (Article 179d,
10-20 Vernon's Texas Civil Statutes), is repealed.
10-21 SECTION 10. Nothing in this Act shall be construed as
10-22 authorizing any game using a video lottery machine or machines. In
10-23 this section "video lottery machine" or "machine" means any
10-24 electronic video game machine that, upon insertion of cash, is
10-25 available to play or simulate the play of a video game, including
11-1 but not limited to video poker, keno, and blackjack, utilizing a
11-2 video display and microprocessor in which the player may receive
11-3 free games or credits that can be redeemed for cash, coins, or
11-4 tokens or that directly dispenses cash, coins, or tokens.
11-5 SECTION 11. This Act takes effect September 1, 1995.
11-6 SECTION 12. The importance of this legislation and the
11-7 crowded condition of the calendars in both houses create an
11-8 emergency and an imperative public necessity that the
11-9 constitutional rule requiring bills to be read on three several
11-10 days in each house be suspended, and this rule is hereby suspended.