74R11610 MWV-F
          By Kuempel, Seidlits                                  H.B. No. 3021
          Substitute the following for H.B. No. 3021:
          By Jones of Lubbock                               C.S.H.B. No. 3021
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of bingo.
    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) 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              (22)  "Bingo equipment" means equipment actually used,
   1-13  made,  or sold for the purpose of use in bingo games and includes
   1-14  machines or other devices from which balls or other items are
   1-15  withdrawn to determine the letters and numbers or other symbols to
   1-16  be called, <the balls or items themselves,> bingo cards, and any
   1-17  other device commonly used in the direct operation of the game.
   1-18  "Bingo equipment" does not include:
   1-19                    (A)  a bingo game set commonly manufactured and
   1-20  sold as a child's game for a retail price of $20 or less unless the
   1-21  set or a part of the set is actually used in a bingo game subject
   1-22  to regulation under this Act; or
   1-23                    (B)  commonly available component parts of bingo
    2-1  equipment such as light bulbs, fuses, or bingo balls.
    2-2              (24)  "Card-minding device" means a computerized or
    2-3  electronic device that:
    2-4                    (A)  registers and verifies bingo winnings on a
    2-5  bingo card played with the assistance of the device; and
    2-6                    (B)  is continuously interfaced with and audited
    2-7  by an independent data processing device.
    2-8              (25)  "Ticket or pull-tab dispenser" means an
    2-9  electronic or mechanical device that dispenses a break-open bingo
   2-10  ticket, an instant bingo ticket, or a pull-tab bingo game after a
   2-11  person inserts money into the device.
   2-12        SECTION 2.  Section 11, Bingo Enabling Act (Article 179d,
   2-13  Vernon's Texas Civil Statutes), is amended by amending Subsections
   2-14  (d), (k), (o), (p), (r), and (u) and adding Subsections (v), (w),
   2-15  and (x) to read as follows:
   2-16        (d)  The net proceeds of any game of bingo and of any rental
   2-17  of premises for bingo by a licensed authorized organization shall
   2-18  be exclusively devoted to charitable purposes.
   2-19        (k)  A game of chance other than bingo may not be conducted
   2-20  or allowed during an occasion when bingo is played.  This
   2-21  subsection does not prohibit the exhibition and play of an
   2-22  amusement machine that is not a gambling device as defined by
   2-23  Section 47.01, Penal Code.
   2-24        (o)  A licensed distributor may not furnish by sale, lease,
   2-25  or any other manner bingo equipment, devices, or supplies to a
    3-1  person other than a licensed authorized organization, another
    3-2  licensed distributor, or a person authorized to conduct bingo under
    3-3  Section 39(b)(3) or (4) of this Act.  A sale of bingo equipment,
    3-4  devices, or supplies authorized by this subsection must be made on
    3-5  terms requiring immediate payment or requiring payment not later
    3-6  than the 30th day after the date of actual delivery.
    3-7        (p)  No one other than a licensed lessor or a licensed
    3-8  authorized organization may advertise <or promote> bingo.  <A
    3-9  licensed authorized organization may not include in an
   3-10  advertisement or promotion the amount of a prize or series of
   3-11  prizes offered at a bingo occasion.>
   3-12        (r)  A licensed distributor may not receive by purchase or
   3-13  any other manner bingo equipment, devices, or supplies from a
   3-14  person other than a licensed manufacturer or another licensed
   3-15  distributor.
   3-16        (u)  Bingo may be played using a pull-tab bingo game, a
   3-17  break-open bingo ticket, or an instant bingo ticket subject to the
   3-18  rules of the commission <A licensed authorized organization may not
   3-19  conduct a bingo game in which any player uses or is assisted by a
   3-20  computerized or electronic device that is used instead of or in
   3-21  conjunction with the player's traditional paper or nondisposable
   3-22  bingo card>.
   3-23        (v)  A person may not use a card-minding device:
   3-24              (1)  to generate or determine the random letters,
   3-25  numbers, or other symbols used in playing the bingo card played
    4-1  with the device's assistance;
    4-2              (2)  as a receptacle for the deposit of tokens or
    4-3  money, including coins or paper currency, in payment for playing
    4-4  the bingo card played with the device's assistance; or
    4-5              (3)  as a dispenser for the payment of a bingo prize,
    4-6  including coins, paper currency, or any thing of value for the
    4-7  bingo card played with the device's assistance.
    4-8        (w)  A ticket or pull-tab dispenser may not be used:
    4-9              (1)  to generate or determine the random letters,
   4-10  numbers, or other symbols used in playing a bingo game;
   4-11              (2)  to affect the chances of winning at a bingo game;
   4-12  or
   4-13              (3)  as a dispenser for the payment of a bingo prize,
   4-14  including coins, paper currency, or any thing of value for the
   4-15  bingo game played.
   4-16        (x)  The price of a break-open bingo ticket, instant bingo
   4-17  ticket, or a pull-tab bingo game sold by a ticket or pull-tab
   4-18  dispenser may not exceed $1 for each break-open bingo ticket,
   4-19  instant bingo ticket, or pull-tab bingo game sold.
   4-20        SECTION 3.  Sections 13(b) and (j), Bingo Enabling Act
   4-21  (Article 179d, Vernon's Texas Civil Statutes), are amended to read
   4-22  as follows:
   4-23        (b)  If a license is not issued or denied before the 31st day
   4-24  after the date of the filing of an application for a license, the
   4-25  payment of the proper license fee, the filing of a copy of a valid
    5-1  Section 501(c) exemption statement issued by the Internal Revenue
    5-2  Service, if required, and the completion of a criminal background
    5-3  investigation has been completed <On preliminary approval of an
    5-4  application>, the commission shall <may> issue a temporary
    5-5  authorization for the activity requested that is valid, subject to
    5-6  automatic revocation if a denial letter is issued, for <any period
    5-7  of> not more than 60 days.  The effective period may be extended by
    5-8  the commission on written request filed before the end of the
    5-9  period of temporary authorization except as limited by Subsection
   5-10  (h) of this section.
   5-11        (j)  A license may not be transferred by a licensee, except
   5-12  that<, in accordance with commission rules,> a licensed commercial
   5-13  lessor <who is an individual> may transfer a <the individual's>
   5-14  license held by the licensee to a corporation formed by the
   5-15  licensee or from one corporation owned by the licensee to another
   5-16  corporation owned by the licensee <individual>.
   5-17        SECTION 4.  Section 16(j), Bingo Enabling Act (Article 179d,
   5-18  Vernon's Texas Civil Statutes), is amended to read as follows:
   5-19        (j)  The commission by rule may <shall> establish the number
   5-20  and type of bingo games that may be played during an occasion.
   5-21        SECTION 5.  Section 17(a), Bingo Enabling Act (Article 179d,
   5-22  Vernon's Texas Civil Statutes), is amended to read as follows:
   5-23        (a)  A person under the age of 18 years may not play a game
   5-24  of bingo conducted under a license issued under this Act unless the
   5-25  person is accompanied by his parent or guardian, except that a
    6-1  licensee may prohibit all persons under the age of 18 or an age
    6-2  younger than 18 years of age as determined by the licensee from
    6-3  entering the licensed premises by posting a written notice to that
    6-4  effect at the place where the game is conducted.
    6-5        SECTION 6.  Section 18, Bingo Enabling Act (Article 179d,
    6-6  Vernon's Texas Civil Statutes), is amended to read as follows:
    6-7        Sec. 18.  Frequency and Times of Games.  A game of bingo may
    6-8  not be conducted under any license issued under this Act more often
    6-9  than three days per calendar week, not to exceed four hours per
   6-10  occasion <24-hour period>.  Only one bingo occasion per day may be
   6-11  conducted under each license issued under this Act.  No more than
   6-12  two organizations may conduct a game of bingo in one place on one
   6-13  day.  If two organizations conduct games of bingo in one place on
   6-14  one day, these occasions must be announced separately, and an
   6-15  intermission of at least 10 <30> minutes must occur between the
   6-16  games.  <A game conducted under a temporary license may not be
   6-17  conducted in violation of this section.>
   6-18        SECTION 7.  Section 19a, Bingo Enabling Act (Article 179d,
   6-19  Vernon's Texas Civil Statutes), is amended by amending Subsection
   6-20  (k) and adding Subsections (l) and (m) to read as follows:
   6-21        (k)  Before the end of each quarter, each licensed authorized
   6-22  organization shall disburse for charitable purposes all of the net
   6-23  proceeds from the <an amount not less than 35 percent of the
   6-24  organization's adjusted gross receipts from the last> preceding
   6-25  quarter<, less the amount of authorized expenses not to exceed six
    7-1  percent of the gross receipts.  For purposes of this subsection,
    7-2  adjusted gross receipts means gross receipts plus any consideration
    7-3  received from the rental of premises for bingo by the authorized
    7-4  organization, less the amount of prizes paid in the preceding
    7-5  quarter.  If a licensed authorized organization fails to meet the
    7-6  requirements of this subsection for a quarter, the commission in
    7-7  applying appropriate sanctions may consider whether, taking into
    7-8  account the amount required to be distributed during that quarter
    7-9  and the three preceding quarters and the charitable distributions
   7-10  for each of those quarters, the organization has distributed a
   7-11  total amount sufficient to have met the 35 percent requirement for
   7-12  that quarter and the three preceding quarters combined>.
   7-13        (l)  In Subsection (k) of this section, "net proceeds from
   7-14  the preceding quarter" means an amount equal to the sum of the
   7-15  organization's gross sales and the organization's rental income
   7-16  related to bingo purposes minus the expenses allowed under Section
   7-17  19(c) of this Act incurred during the preceding quarter.
   7-18        (m)  Notwithstanding Subsection (k) of this section, a
   7-19  licensed authorized organization may retain $4,000 or less in the
   7-20  organization's bingo account as a reserve for expenditures
   7-21  authorized under Section 19(c) of this Act.
   7-22        SECTION 8.  Sections 11(e) and 19(b), Bingo Enabling Act
   7-23  (Article 179d, Vernon's Texas Civil Statutes), are repealed.
   7-24        SECTION 9.  This Act takes effect September 1, 1995.
   7-25        SECTION 10.  The importance of this legislation and the
    8-1  crowded condition of the calendars in both houses create an
    8-2  emergency and an imperative public necessity that the
    8-3  constitutional rule requiring bills to be read on three several
    8-4  days in each house be suspended, and this rule is hereby suspended.