By Kuempel H.B. No. 3021
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the definition and regulation of Bingo.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2 of the Bingo Enabling Act, Title 6,
1-5 Article 179d, is amended to read as follows:
1-6 Sec. 2. In this Act:
1-7 (1) "Governing body" means the commissioners court
1-8 with regard to a county or justice precinct or the city council or
1-9 other chief legislative body with regard to an incorporated city or
1-10 town.
1-11 (2) "Bingo" or "game" means a specific game of chance,
1-12 commonly known as bingo or lotto, in which prizes are awarded on
1-13 the basis of designated numbers or symbols <on a card> conforming
1-14 to numbers or symbols selected at random. "Bingo" includes pull
1-15 tabs, break open tickets and instant bingo tickets.
1-16 (3) "Nonprofit organization" means an unincorporated
1-17 association or society or a corporation that is incorporated or
1-18 holds a certificate of authority under the Texas Non-Profit
1-19 Corporation Act, as amended (Article 1396-1.01 et seq., Vernon's
1-20 Texas Civil Statutes), that:
1-21 (A) does not distribute any of its income to its
1-22 members, officers, or governing body, other than as reasonable
1-23 compensation for services;
2-1 (B) for at least three years:
2-2 (i) has had a governing body or officers
2-3 elected by a vote of members or by a vote of delegates elected by
2-4 the members; or
2-5 (ii) has been affiliated with a state or
2-6 national organization organized to perform the same purposes; and
2-7 (C) has obtained a 501(c) exemption from the
2-8 Internal Revenue Service.
2-9 (4) "Fraternal organization" means:
2-10 (A) a nonprofit organization that is organized
2-11 to perform and engages primarily in performing charitable,
2-12 benevolent, patriotic, employment-related, or educational functions
2-13 and that:
2-14 (i) has been organized within Texas for at
2-15 least three years;
2-16 (ii) during the three-year period has had
2-17 a bona fide membership actively and continuously engaged as an
2-18 organization in furthering its authorized purposes;
2-19 (iii) has not authorized any person on
2-20 behalf of its membership, governing body, or officers to support or
2-21 oppose a particular candidate for public office by making political
2-22 speeches, passing out cards or other political literature, writing
2-23 letters, signing or circulating petitions, making campaign
2-24 contributions, or soliciting votes; and
2-25 (iv) is not an organization whose members
3-1 are predominantly veterans or dependents of veterans of the armed
3-2 services of the United States; or
3-3 (B) a nonprofit National Historical District
3-4 Association representing the owners and lessees of a majority of
3-5 the real property located within a "National Historical District"
3-6 so determined and designated by the National Register of Historic
3-7 Places, Heritage Conservation and Recreation Service (HCRS) of the
3-8 United States Department of the Interior, whose net proceeds as
3-9 herein defined are used for restoration, construction, maintenance,
3-10 and security within the district, and which has been so designated
3-11 for at least five years.
3-12 (5) "Religious society" means a church, synagogue, or
3-13 other organization or association that is organized primarily for
3-14 religious purposes and that has been in existence within Texas for
3-15 at least 10 years.
3-16 (6) "Veterans organization" means a nonprofit
3-17 organization whose members are veterans or dependents of veterans
3-18 of the armed services of the United States and that is chartered by
3-19 the United States Congress and organized to advance the interests
3-20 of veterans, or active duty personnel of the armed forces of the
3-21 United States and their dependents.
3-22 (7) "Person" means an individual, partnership,
3-23 corporation, or other group, however organized.
3-24 (8) "Volunteer fire department" means an association
3-25 that:
4-1 (A) operates fire-fighting equipment;
4-2 (B) is organized primarily to provide and
4-3 actively provides fire-fighting services; and
4-4 (C) does not pay its members compensation other
4-5 than nominal compensation.
4-6 (9) "Charitable purposes" means one or more of the
4-7 following causes, deeds, or activities to which the net proceeds
4-8 derived from the playing of bingo are dedicated: (A) those that
4-9 benefit needy or deserving persons in this state, indefinite in
4-10 number, by enhancing their opportunity for religious or educational
4-11 advancement, by relieving them from disease, suffering, or
4-12 distress, or by contributing to their physical well-being, by
4-13 assisting them in establishing themselves in life as worthy and
4-14 useful citizens, or by increasing their comprehension of and
4-15 devotion to the principles on which this nation was founded and
4-16 enhancing their loyalty to their government;
4-17 (B) those that initiate, perform, or foster
4-18 worthy public works in this state or enable or further the erection
4-19 or maintenance of public structures in this state;
4-20 (10) "Net proceeds" means:
4-21 (A) in relation to the gross receipts from one
4-22 or more occasions of bingo, the amount that remains after deducting
4-23 the reasonable sums necessarily and actually expended for
4-24 advertising, security, repairs to premises and equipment, bingo
4-25 supplies and equipment, prizes, stated rental, or mortgage and
5-1 insurance expenses, if any, bookkeeping, legal, or accounting
5-2 services, fees for personnel as permitted under Subsection (c) of
5-3 Section 19 of this Act, janitorial services and utility supplies
5-4 and services, if any, license fees, and the fee on prizes imposed
5-5 by Section 19b of this Act; and
5-6 (B) in relation to the gross rent or other
5-7 consideration received by an organization licensed to conduct bingo
5-8 for the use of its premises, fixtures, or equipment by another
5-9 licensee, the amount that remains after deducting the reasonable
5-10 sums necessarily and actually expended for janitorial services and
5-11 utility supplies directly attributable to the use of the premises,
5-12 fixtures, or equipment, if any.
5-13 (11) "Authorized organization" means a religious
5-14 society, a nonprofit organization (other than an organization whose
5-15 membership is predominantly veterans or their dependents organized
5-16 to advance the interests of veterans, active duty personnel, or
5-17 their dependents) whose predominant activities are for the support
5-18 of medical research or treatment programs, a fraternal or veterans
5-19 organization, or a volunteer fire department.
5-20 (12) "Authorized commercial lessor" means a person
5-21 eligible for a commercial license to lease bingo premises under
5-22 Section 13 of this Act.
5-23 (13) "Gross receipts" means the total amount received
5-24 from the sale, rental, transfer, or use of bingo cards and entrance
5-25 fees charged at locations in which bingo is conducted.
6-1 (14) "Municipal secretary" means the officer of a
6-2 municipality who performs the duties of city secretary, regardless
6-3 of the officer's title.
6-4 (15) "Municipality" means an incorporated city or
6-5 town.
6-6 (16) "Political subdivision" means a county, justice
6-7 precinct, or municipality.
6-8 (17) "Licensee" means the holder of an annual license,
6-9 commercial lessor's license, temporary license, or temporary
6-10 authorization issued under this Act.
6-11 (18) "Distributor" means a person who obtains by
6-12 purchase or other manner bingo equipment, devices, or supplies for
6-13 use in bingo games in this state and who sells or otherwise
6-14 furnishes those items to another person for use, resale, display,
6-15 or operation of the equipment, devices, or supplies.
6-16 (19) "Manufacturer" means:
6-17 (A) a person who assembles from raw materials or
6-18 subparts a completed piece of bingo equipment, devices, or supplies
6-19 for use in bingo games in this state; or
6-20 (B) a person who converts, modifies, adds to or
6-21 removes parts from any bingo equipment, item, device, or assembly
6-22 to further its promotion or sale for or use in a bingo game in this
6-23 state.
6-24 (20) "Commission" means the Texas Lottery Commission.
6-25 (21) "Substantial interest" means the interest a
7-1 person has in an organization, association, or business as follows:
7-2 (A) if, with respect to a sole proprietorship,
7-3 an individual or his marital community owns, operates, manages, or
7-4 conducts directly or indirectly any part of the organization,
7-5 association, or business;
7-6 (B) if, with respect to a partnership, the
7-7 individual or his marital community has a right to a share in any
7-8 of the profits or potential profits of the partnership activities;
7-9 (C) if, with respect to a corporation, an
7-10 individual or his spouse is an officer or director of or the
7-11 individual or his marital community is a holder directly or
7-12 beneficially of 10 percent or more of any class of stock of the
7-13 corporation;
7-14 (D) if, with respect to an organization not
7-15 covered by Paragraph (A), (B), or (C) of this subdivision, an
7-16 individual or his spouse is an officer in or manages the business
7-17 affairs of the organization or the individual or his marital
7-18 community owns or controls 10 percent or more of the assets of the
7-19 organization; or
7-20 (E) if an individual or his marital community
7-21 provides 10 percent or more of the capital, whether in cash, goods,
7-22 or services, for the operation of a business, association, or
7-23 organization during a calendar year.
7-24 (22) "Bingo equipment" means equipment actually used,
7-25 made, or sold for the purpose of use in bingo games and includes
8-1 machines or other devices from which balls or other items are
8-2 withdrawn to determine the letters and numbers or other symbols to
8-3 be called, the balls or items themselves, bingo cards, and any
8-4 other device commonly used in the direct operation of the game.
8-5 "Bingo equipment" does not include:
8-6 (A) a bingo game set commonly manufactured and
8-7 sold as a child's game for a retail price of $20 or less unless the
8-8 set or a part of the set is actually used in a bingo game subject
8-9 to regulation under this Act; or
8-10 (B) commonly available component parts of bingo
8-11 equipment such as light bulbs, fuses, or bingo balls.
8-12 (C) electronic or mechanical instant ticket
8-13 dispensers and card minding devices.
8-14 (23) "Bingo occasion" means all activities incident to
8-15 the conduct of a series of bingo games by a licensed authorized
8-16 organization. A bingo occasion begins when the bingo premises are
8-17 opened to the public and includes not only the organization's
8-18 licensed times but also those preparatory and concluding activities
8-19 incident to the conduct of bingo games. If two organizations are
8-20 licensed to conduct bingo at the same place on the same day, the
8-21 bingo occasion of one organization may overlap with the bingo
8-22 occasion of the other organization, but their bingo games must be
8-23 separated by the intermission required by Section 18 of this Act.
8-24 In that event, the intermission is considered part of each
8-25 organization's bingo occasion.
9-1 SECTION 2. Section 11 of the Bingo Enabling Act is amended
9-2 to read as follows:
9-3 Sec. 11. (a) The conduct of bingo games authorized under
9-4 this Act is subject to the restrictions prescribed by this section
9-5 regardless of whether the restrictions are contained in a local
9-6 ordinance.
9-7 (b) A person, other than a licensed authorized commercial
9-8 lessor or except a person who leases or otherwise makes available a
9-9 hall or other premises to an organization that has been issued a
9-10 temporary license, may not lease or otherwise make available for
9-11 conducting a bingo game subject to this Act a hall or other
9-12 premises for any consideration, direct or indirect.
9-13 (c) A bingo game may not be conducted on or within any
9-14 leased premises if rental under the lease is to be paid, in whole
9-15 or part, on the basis of a percentage of the receipts or net
9-16 proceeds derived from the operation of the game or by reference to
9-17 the number of people in attendance at a game.
9-18 (d) The net proceeds of any game of bingo and of any rental
9-19 of premises for bingo by an authorized organization shall be
9-20 exclusively devoted to charitable purposes.
9-21 (e) <A prize may not exceed the sum or value of $500 in any
9-22 single game of bingo.>
9-23 <(f)> (e) A series of prizes offered or awarded on any one
9-24 bingo occasion for bingo games other than instant bingo may not
9-25 aggregate more than $2,500.
10-1 <(g)> (f) A person other than a bona fide member of a
10-2 licensed authorized organization may not conduct, promote,
10-3 administer, or assist in conducting, promoting, or administering, a
10-4 bingo game.
10-5 <(h)> (g) A person may not be denied admission to a game or
10-6 the opportunity to participate in a game because of race, color,
10-7 creed, religion, national origin, sex, or handicap or because the
10-8 person is not a member of the licensed authorized organization that
10-9 is conducting the game.
10-10 <(i)> (h) Bingo games may not be conducted at more than one
10-11 location on property owned or leased by a licensed authorized
10-12 organization.
10-13 <(j)> (i) No more than two affiliated organizations may be
10-14 licensed to conduct bingo at the same location.
10-15 <(k)> (j) A game of chance other than bingo may not be
10-16 conducted or allowed during an occasion when bingo is played. This
10-17 section does not prohibit the exhibition for play of coin operated
10-18 amusement machines not defined as gambling devices.
10-19 <(l)> (k) A licensed authorized organization may not offer
10-20 or provide to a person the opportunity to play bingo without
10-21 charge. An organization conducting bingo must record all
10-22 transactions for which it receives bingo gross receipts on a cash
10-23 register, which must be in conformance with specifications
10-24 prescribed by rule of the commission.
10-25 <(m)> (l) An authorized organization may conduct bingo only
11-1 in the county where the organization is principally located. For
11-2 purposes of this subsection, an organization is principally located
11-3 in the county within which it has its primary business office. If
11-4 the organization has no business office, the organization is
11-5 principally located in the county of the principal residence of its
11-6 chief executive officer.
11-7 <(n)> (m) A licensed manufacturer may furnish by sale or any
11-8 other manner bingo equipment, devices, or supplies to a licensed
11-9 distributor, but may not furnish by sale or any other manner bingo
11-10 equipment, devices, or supplies to any other person.
11-11 <(o)> (n) A licensed distributor may not furnish by sale or
11-12 any other manner bingo equipment, devices, or supplies to a person
11-13 other than a licensed authorized organization, another licensed
11-14 distributor, or a person authorized to conduct bingo under Section
11-15 39(b)(3) or (4) of this Act. A sale of bingo equipment, devices,
11-16 or supplies authorized by this subsection must be made on terms
11-17 requiring immediate payment or requiring payment not later than the
11-18 30th day after the date of actual delivery.
11-19 <(p)> (o) No one other than a licensed lessor or licensed
11-20 authorized organization may advertise <or promote> bingo. <A
11-21 licensed authorized organization may not include in an
11-22 advertisement or promotion the amount of a prize or series of
11-23 prizes offered at a bingo occasion.>
11-24 <(q)> (p) A licensed authorized organization or other person
11-25 may not award or offer to award a door prize or other prize to
12-1 persons present at a bingo occasion or participating in a bingo
12-2 occasion in addition to the prizes awarded for winning the
12-3 individual bingo games.
12-4 <(r)> (q) A licensed distributor may not receive by purchase
12-5 or any other manner bingo equipment, devices, or supplies from a
12-6 person other than a licensed manufacturer or another licensed
12-7 distributor.
12-8 <(s)> (r) Except for a purchase made by a licensed
12-9 authorized organization under Subsection (t) of this section, a
12-10 licensed authorized organization or a person authorized to conduct
12-11 bingo under Section 39(b)(3) or (4) of this Act may not obtain by
12-12 purchase or any other manner bingo equipment, devices, or supplies
12-13 from a person other than a licensed distributor.
12-14 <(t)> (s) With the prior written consent of the commission,
12-15 a licensed authorized organization may make an occasional sale of
12-16 bingo cards or of a used bingo flashboard or blower to another
12-17 licensed authorized organization.
12-18 <(u) A licensed authorized organization may not conduct a
12-19 bingo game in which any player uses or is assisted by a
12-20 computerized or electronic device that is used instead of or in
12-21 conjunction with the player's traditional paper or nondisposable
12-22 bingo card.>
12-23 SECTION 3. Section 13 of the Bingo Enabling Act is amended
12-24 to read as follows:
12-25 Sec. 13. Investigation; issuance of license; fees; duration
13-1 of license. (a) The commission shall investigate the
13-2 qualifications of each applicant and the merits of each application
13-3 promptly after the filing of the application.
13-4 (b) <On preliminary approval of an application> After an
13-5 application for license has been filed together with all required
13-6 documentation and payment of the proper license fee, the commission
13-7 <may> shall issue a temporary authorization for the activity
13-8 requested for <any> a period of not more than 60 days. The
13-9 effective period may be extended by the commission on written
13-10 request filed before the end of the period of temporary
13-11 authorization except as limited by Subsection (h) of this section.
13-12 (c) The commission shall issue to an applicant a license for
13-13 the conduct of bingo, or a license renewal, on payment of a license
13-14 fee in accordance with Subdivision (1) of Subsection (d) of this
13-15 section, if the commission determines that:
13-16 (1) the member or members of the applicant designated
13-17 in the application to conduct bingo are active members of the
13-18 applicant;
13-19 (2) no person under whose name the game or games of
13-20 bingo will be conducted, and no person who will work at the
13-21 proposed bingo games, has been convicted of a felony, gambling
13-22 offense, criminal fraud, or a crime of moral turpitude for which
13-23 less than 10 years have elapsed since termination of any sentence,
13-24 parole, mandatory supervision, or probation served for the offense;
13-25 (3) the games are to be conducted in accordance with
14-1 this Act;
14-2 (4) the proceeds of the games are to be disposed of as
14-3 provided by this Act;
14-4 (5) the applicant has made and can demonstrate
14-5 significant progress toward the accomplishment of the purposes of
14-6 the organization during the 12-month period preceding the date of
14-7 application for a license or license renewal; and
14-8 (6) all persons who will conduct, promote, or
14-9 administer the proposed bingo games are active, bona fide members
14-10 of the applicant organization and all other persons who will assist
14-11 in conducting, promoting, or administering the proposed bingo games
14-12 are persons authorized to do so by Section 19 of this Act.
14-13 (d) The fees for a license to conduct bingo and a commercial
14-14 license to lease bingo premises shall be set by the commission in
14-15 an amount reasonable to defray administrative costs, but not less
14-16 than the following:
14-17 (1) license to conduct bingo:
14-18 (A) Class A (annual gross receipts of $25,000 or
14-19 less)--$100;
14-20 (B) Class B (annual gross receipts of more than
14-21 $25,000 but not more than $50,000)--$200;
14-22 (C) Class C (annual gross receipts of more than
14-23 $50,000 but not more than $75,000)--$300;
14-24 (D) Class D (annual gross receipts of more than
14-25 $75,000 but not more than $100,000)--$400;
15-1 (E) Class E (annual gross receipts of more than
15-2 $100,000 but not more than $150,000)--$600;
15-3 (F) Class F (annual gross receipts of more than
15-4 $150,000 but not more than $200,000)--$900;
15-5 (G) Class G (annual gross receipts of more than
15-6 $200,000 but not more than $250,000)--$1,200;
15-7 (H) Class H (annual gross receipts of more than
15-8 $250,000 but not more than $300,000)--$1,500;
15-9 (I) Class I (annual gross receipts of more than
15-10 $300,000 but not more than $400,000)--$2,000; and
15-11 (J) Class J (annual gross receipts of more than
15-12 $400,000)--$2,500; and
15-13 (2) Commercial license to lease bingo premises:
15-14 (A) Class A (annual gross rentals from licensed
15-15 organizations of not more than $12,000)--$100;
15-16 (B) Class B (annual gross rentals from licensed
15-17 organizations of more than $12,000 but not more than
15-18 $20,000)--$200;
15-19 (C) Class C (annual gross rentals from licensed
15-20 organizations of more than $20,000 but not more than
15-21 $30,000)--$300;
15-22 (D) Class D (annual gross rentals from licensed
15-23 organizations of more than $30,000 but not more than
15-24 $40,000)--$400;
15-25 (E) Class E (annual gross rentals from licensed
16-1 organizations of more than $40,000 but not more than
16-2 $50,000)--$600;
16-3 (F) Class F (annual gross rentals from licensed
16-4 organizations of more than $50,000 but not more than
16-5 $60,000)--$900;
16-6 (G) Class G (annual gross rentals from licensed
16-7 organizations of more than $60,000 but not more than
16-8 $70,000)--$1,200;
16-9 (H) Class H (annual gross rentals from licensed
16-10 organizations of more than $70,000 but not more than
16-11 $80,000)--$1,500;
16-12 (I) Class I (annual gross rentals from licensed
16-13 organizations of more than $80,000 but not more than
16-14 $90,000)--$2,000; and
16-15 (J) Class J (annual gross rentals from licensed
16-16 organizations of more than $90,000)--$2,500.
16-17 (e) At the end of the license period, a recapitulation shall
16-18 be made between the licensee and the commission in respect of the
16-19 gross receipts or gross rentals actually recorded during the
16-20 license period and the fee paid, and any deficiency of fee shown to
16-21 be due shall be paid by the licensee and any excess of fee shown to
16-22 have been paid shall be credited to the licensee in a manner
16-23 prescribed by the commission by rule.
16-24 (f) A person who leases premises on which bingo is conducted
16-25 is not required to be a licensed commercial lessor unless the
17-1 person leases directly to a licensed authorized organization.
17-2 (g) The commission shall issue a license permitting a
17-3 commercial lessor applicant to lease premises for the conduct of
17-4 bingo to an authorized organization or organizations specified in
17-5 the application during the period specified in the application or
17-6 such shorter period as the commission determines, but not to exceed
17-7 one year, on payment of a license fee in accordance with Subsection
17-8 (d)(2) of this section if the commission determines that:
17-9 (1) the applicant seeking to lease a hall or premises
17-10 for the conduct of bingo to an authorized organization is qualified
17-11 to be licensed under this Act;
17-12 (2) the applicant satisfies the requirements for an
17-13 authorized commercial lessor as prescribed by this section;
17-14 (3) the rent to be charged is fair and reasonable and
17-15 will be charged and collected in compliance with Section 11a of
17-16 this Act;
17-17 (4) there is no diversion of the funds of the proposed
17-18 lessee from the lawful purposes as prescribed by this Act;
17-19 (5) the person whose signature or name appears in the
17-20 application is in all respects the real party in interest and is
17-21 not an undisclosed agent or trustee for the real party in interest;
17-22 and
17-23 (6) the leasing of a hall or premises for the conduct
17-24 of bingo is to be in accordance with this Act.
17-25 (h) A license issued under this Act may not be effective for
18-1 more than one year. A temporary authorization issued under
18-2 Subsection (b) of this section may not be effective for more than
18-3 one year from its original issuance date.
18-4 (i) When a license is issued by the commission, a copy of
18-5 the license shall immediately be sent by the licensee to the
18-6 appropriate governing body for filing in a central file containing
18-7 each license issued under this Act. In addition, the licensee
18-8 must, within 10 days, give written notice of the issuance of the
18-9 license to the police department of the city or town in which bingo
18-10 is to be conducted, if it is to be conducted within a city or town,
18-11 or to the sheriff of the county in which bingo is to be conducted,
18-12 if it is to be conducted outside a city or town. A bingo game may
18-13 not be commenced until the notification has been made in accordance
18-14 with this subsection.
18-15 (j) A license may not be transferred by a licensee, except
18-16 that, <in accordance with commission rules,> a licensed commercial
18-17 lessor <who is an individual> may transfer <the individual's> it's
18-18 license to a corporation formed by the <individual> licensee or
18-19 from one corporation owned by the licensed lessor to another
18-20 corporation wholly owned by the lessor licensee.
18-21 (k) The issuance of a license or temporary authorization by
18-22 the commission does not grant a vested right in the license, the
18-23 temporary authorization, or the privileges conferred.
18-24 (l) The commission may not issue a license to an authorized
18-25 organization to conduct bingo if an officer of the organization has
19-1 been convicted of a felony, criminal fraud, gambling or
19-2 gambling-related offense, or crime of moral turpitude, if less than
19-3 10 years have elapsed since the termination of any sentence,
19-4 parole, mandatory supervision, or probation served for the offense.
19-5 (m) The commission may deny an application for a license or
19-6 renewal of a license issued under this section for any cause that
19-7 would permit or require the suspension or revocation of a license
19-8 issued under this section.
19-9 (n) A commercial license to lease bingo premises to a
19-10 licensed authorized organization may be issued only to:
19-11 (1) an authorized organization licensed to conduct
19-12 bingo that owns or leases premises on which bingo is or will be
19-13 conducted or an association of authorized organizations licensed to
19-14 conduct bingo that jointly own or lease premises on which bingo is
19-15 or will be conducted and that the organization or association
19-16 leases or offers for lease to one or more other authorized
19-17 organizations to conduct bingo;
19-18 (2) a person who leases premises to a single licensed
19-19 authorized organization that subleases or will sublease the
19-20 premises to one or more other licensed authorized organizations to
19-21 conduct bingo on the premises; or
19-22 (3) a person who leases premises for the total control
19-23 and exclusive use of only one licensed organization as that
19-24 organization's primary business office.
19-25 (o) Notwithstanding Subsection (n) of this section, a person
20-1 who was licensed as a commercial lessor on June 10, 1989, whose
20-2 license has been kept in effect since that date, and who is
20-3 otherwise eligible for the license may renew the license as a
20-4 commercial lessor of bingo premises.
20-5 (p) (q) The following persons are not eligible for a
20-6 commercial license to lease bingo premises to a licensed authorized
20-7 organization:
20-8 (1) a person convicted of a felony, criminal fraud,
20-9 gambling or gambling-related offense, or crime of moral turpitude,
20-10 if less than 10 years have elapsed since the termination of any
20-11 sentence, parole, mandatory supervision, or probation served for
20-12 the offense;
20-13 (2) a public officer who receives any consideration,
20-14 direct or indirect, as owner or lessor of premises offered for the
20-15 purpose of conducting bingo;
20-16 (3) a person who extends credit to, loans money to, or
20-17 pays or provides for the payment of license fees for an authorized
20-18 organization;
20-19 (4) a distributor or manufacturer; or
20-20 (5) a person, firm, or corporation in which a person
20-21 covered by Subdivision (1), (2), (3), or (4) of this subsection or
20-22 a person married or related in the first degree by consanguinity or
20-23 affinity, as determined under Article 5996h, Revised Statutes, to
20-24 one of those persons has greater than a 10 percent proprietary,
20-25 equitable, or credit interest or in which one of those persons is
21-1 active or employed.
21-2 (r) Subsection (q)(5) of this section does not prevent any
21-3 authorized organization, person, firm, or corporation that is not
21-4 organized for pecuniary profit and no part of the net earnings of
21-5 which inure to the benefit of any individual, member, or
21-6 shareholder from being licensed as a commercial lessor solely
21-7 because a public officer or a person married or related in the
21-8 first degree by consanguinity or affinity to a public officer is a
21-9 member of, active in, or employed by the authorized organization,
21-10 person, firm, or corporation.
21-11 SECTION 4. Section 16 of the Bingo Enabling Act is amended
21-12 to read as follows:
21-13 Sec. 16. Control and supervision; suspension of licenses;
21-14 inspection of premises. (a) The commission shall administer this
21-15 Act. The commission has broad authority and shall exercise strict
21-16 control and close supervision over all games of bingo conducted in
21-17 this state to the end that the games are fairly conducted and the
21-18 proceeds derived from the games are used for the purposes
21-19 authorized in this Act. The commission's authority under this Act
21-20 is executed through a division established by the administrator of
21-21 the commission to administer this Act. The administrator shall
21-22 employ a director of bingo operations to administer the division
21-23 under the direction of the commission and administrator. The
21-24 commission may adopt rules for the enforcement and administration
21-25 of this Act.
22-1 (b) The commission shall provide to any person on request a
22-2 printed copy of this Act and any rules applicable to the
22-3 enforcement of this Act. The commission may impose a reasonable
22-4 charge for a copy of an item provided under this subsection.
22-5 (c) The face of every disposable bingo card and each instant
22-6 bingo ticket or pull tab sold or otherwise furnished int his state
22-7 shall bear an impression of the seal of the State of Texas, the
22-8 name of the manufacturer or a trade name or trademark which has
22-9 been filed with the commission.
22-10 On the effective date of this section, all licensed
22-11 manufacturers, distributors and conductors shall report to the
22-12 commission a complete list of all disposable and instant bingo
22-13 cards in their inventory. The list must contain a description of
22-14 all disposable cards including cut, collation, color and serial
22-15 numbers and shall designate which cards or instant bingo tickets
22-16 bear the seal of prior regulatory agencies previously required.
22-17 After filing this inventory with the commission the licensee
22-18 may continue to sell and use the listed inventory until it is
22-19 depleted, abandoned, or destroyed in accordance with generally
22-20 recognized business practices.
22-21 (d) The commission by rule shall provide procedures for the
22-22 approval of bingo cards. A licensee may not use or distribute a
22-23 bingo card unless it has been approved by the commission. The
22-24 commission may set the price or adopt one or more schedules of
22-25 prices at which bingo cards may be sold or otherwise furnished by a
23-1 licensed authorized organization. A licensed authorized
23-2 organization may not sell or otherwise furnish a bingo card at a
23-3 price other than a price authorized by the commission under this
23-4 subsection <or> by a schedule adopted under this subsection. The
23-5 commission may establish procedures requiring a licensed authorized
23-6 organization to notify the commission of the price or price
23-7 schedule for bingo cards the organization will use <for one or more
23-8 reporting periods>. The licensed conductor shall file a schedule
23-9 of prices it will charge for bingo cards. For each price filed,
23-10 the cards to be sold must be identified by the cut, color, code, or
23-11 collation. This schedule may be changed each thirty days and will
23-12 remain in effect until modified or cancelled by the conductor. The
23-13 schedule may be filed by facsimile electronic transmission, or by
23-14 regular mail.
23-15 (e) After a hearing, the commission may suspend or revoke
23-16 any license issued under this Act for failure to comply with this
23-17 Act or a rule adopted by the commission under this Act, or for any
23-18 reason that would allow or require the commission to refuse to
23-19 issue or renew a license of the same class. The commission may
23-20 summarily suspend a license issued under this Act for failure to
23-21 comply with this Act or a rule adopted by the commission under this
23-22 Act if the commission determines that the licensee's continued
23-23 operation may constitute an immediate threat to the health, safety,
23-24 morals, or welfare of the public. The Administrative Procedure and
23-25 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
24-1 Statutes) does not apply to the commission in the enforcement and
24-2 administration of a summary suspension under this section.
24-3 (f) A proceeding to summarily suspend a license issued under
24-4 this Act is initiated by the commission by serving notice to the
24-5 licensee informing it of the right to a hearing before the
24-6 commission. The notice must be personally served on an officer,
24-7 operator, or agent of the licensee or sent by certified or
24-8 registered mail, return receipt requested, to the licensee's
24-9 mailing address as it appears on the commission's records. The
24-10 notice must state the alleged violations that constitute grounds
24-11 for summary suspension.
24-12 (g) If a notice of summary suspension is served on a
24-13 licensee, the commission shall simultaneously serve notice of a
24-14 hearing, to be held within 10 days after the date the notice is
24-15 served, at which the licensee shall show cause why the license
24-16 should not be summarily suspended on the 10th day after the date
24-17 the notice is served. A final hearing on the suspension or
24-18 revocation of the license shall be held, if requested by the
24-19 licensee, within 30 days after the date the commission receives
24-20 written notice of the request. A final hearing on suspension or
24-21 revocation is governed by the same rules as a hearing on any other
24-22 suspension or revocation under this Act.
24-23 (h) The commission may employ officers or investigators as
24-24 the commission considers necessary to administer this Act.
24-25 (i) The commission or the commission's officers or agents
25-1 and state, city, or county peace officers may enter and inspect the
25-2 contents of premises where a game of bingo is being conducted or
25-3 where it is intended that a game is to be conducted, or where any
25-4 equipment used or intended for use in the conduct of a game is
25-5 found.
25-6 (j) The commission by rule <shall> may establish the number
25-7 and type of bingo games that may be played during an occasion.
25-8 SECTION 5. Amend section 17 of the Bingo Enabling Act to
25-9 read as follows:
25-10 Sec. 17. Participation by Persons Under 18. (a) A person
25-11 under the age of 18 years may not play a game of bingo conducted
25-12 under a license issued under this Act unless the person is
25-13 accompanied by his parent or guardian, except that a licensee may
25-14 prohibit all persons under the age of 18 or any lesser specified
25-15 age from entering the licensed premises by posting a written notice
25-16 to that effect at the place where the game is conducted.
25-17 (b) A person under the age of 18 years may not conduct or
25-18 assist in the conduct of any game of bingo conducted under any
25-19 license issued under this Act.
25-20 SECTION 6. Amend section 18 of the Bingo Enabling Act, Title
25-21 6 Art. 179d Revised Civil Statutes to read as follows:
25-22 Sec. 18. Frequency and Times of Games. A game of bingo may
25-23 not be conducted under any license issued under this Act more often
25-24 than three days per calendar week, not to exceed four hours per
25-25 24-hour period. Only one bingo occasion per day may be conducted
26-1 under each license issued under this Act. No more than two
26-2 organizations may conduct a game of bingo in one place on one day.
26-3 If two organizations conduct games of bingo in one place on one
26-4 day, these occasions must be announced separately, and an
26-5 intermission of at least <30> 10 minutes must occur between the
26-6 games. A game conducted under a temporary license may not be
26-7 conducted in violation of this section.
26-8 SECTION 7. The importance of this legislation and the
26-9 crowded condition of the calendars in both houses create an
26-10 emergency and an imperative public necessity that the
26-11 constitutional rule requiring bills to be read on three several
26-12 days in each house be suspended, and this rule is hereby suspended.