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1-15 withdrawn to determine the letters and numbers or other symbols to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.