1-1 By: Kuempel, Seidlits (Senate Sponsor - Cain) H.B. No. 3021
1-2 (In the Senate - Received from the House May 15, 1995;
1-3 May 16, 1995, read first time and referred to Committee on State
1-4 Affairs; May 24, 1995, reported favorably by the following vote:
1-5 Yeas 8, Nays 1; May 24, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the regulation of bingo; providing penalties.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 2, Bingo Enabling Act (Article 179d,
1-11 Vernon's Texas Civil Statutes), is amended by amending Subdivisions
1-12 (2), (5), and (22) and adding Subdivisions (24), (25), (26), and
1-13 (27) to read as follows:
1-14 (2) "Bingo" or "game" means a specific game of chance,
1-15 commonly known as bingo or lotto, in which prizes are awarded on
1-16 the basis of designated numbers or symbols <on a card> conforming
1-17 to numbers or symbols selected at random.
1-18 (5) "Religious society" means a church, synagogue, or
1-19 other organization or association that is organized primarily for
1-20 religious purposes and that has been in existence within Texas for
1-21 at least eight <10> years.
1-22 (22) "Bingo equipment" means equipment actually used,
1-23 made, or sold for the purpose of use in bingo games and includes
1-24 machines or other devices from which balls or other items are
1-25 withdrawn to determine the letters and numbers or other symbols to
1-26 be called, <the balls or items themselves,> bingo cards, and any
1-27 other device commonly used in the direct operation of the game.
1-28 "Bingo equipment" does not include:
1-29 (A) a bingo game set commonly manufactured and
1-30 sold as a child's game for a retail price of $20 or less unless the
1-31 set or a part of the set is actually used in a bingo game subject
1-32 to regulation under this Act; or
1-33 (B) commonly available component parts of bingo
1-34 equipment such as light bulbs, fuses, or bingo balls.
1-35 (24) "Card-minding device" means a computerized or
1-36 electronic device that:
1-37 (A) registers and verifies bingo winnings on a
1-38 bingo card played with the assistance of the device; and
1-39 (B) is interfaced with and audited by an
1-40 independent data processing device operated by the conductor.
1-41 (25) "Ticket or pull-tab dispenser" means an
1-42 electronic or mechanical device that dispenses a break-open bingo
1-43 ticket, an instant bingo ticket, or a pull-tab bingo game after a
1-44 person inserts money into the device.
1-45 (26) "System service provider" means a person who
1-46 holds a license to provide automated bingo services only to a
1-47 licensed authorized organization licensed to conduct bingo or a
1-48 group of licensed authorized organizations licensed to conduct
1-49 bingo.
1-50 (27) "Automated bingo services" means a computer
1-51 program or system for providing bingo sales, prizes, inventory and
1-52 prize fees, for generating required reports to the commission, and
1-53 for providing the conductor of a bingo game with other information
1-54 requested for accounting or other business purposes.
1-55 SECTION 2. Section 11, Bingo Enabling Act (Article 179d,
1-56 Vernon's Texas Civil Statutes), is amended by amending Subsections
1-57 (d), (k), (o), (p), (r), and (u) and adding Subsections (v), (w),
1-58 and (x) to read as follows:
1-59 (d) The net proceeds of any game of bingo and of any rental
1-60 of premises for bingo by a licensed authorized organization shall
1-61 be exclusively devoted to charitable purposes.
1-62 (k) A game of chance other than bingo may not be conducted
1-63 or allowed during an occasion when bingo is played. This
1-64 subsection does not prohibit the exhibition and play of an
1-65 amusement machine that is not a gambling device as defined by
1-66 Section 47.01, Penal Code.
1-67 (o) A licensed distributor may not furnish by sale, lease,
1-68 or any other manner bingo equipment, devices, or supplies to a
2-1 person other than a licensed authorized organization, another
2-2 licensed distributor, or a person authorized to conduct bingo under
2-3 Section 39(b)(3) or (4) of this Act. A sale of bingo equipment,
2-4 devices, or supplies authorized by this subsection must be made on
2-5 terms requiring immediate payment or requiring payment not later
2-6 than the 30th day after the date of actual delivery.
2-7 (p) No one other than a licensed lessor or a licensed
2-8 authorized organization may advertise <or promote> bingo. <A
2-9 licensed authorized organization may not include in an
2-10 advertisement or promotion the amount of a prize or series of
2-11 prizes offered at a bingo occasion.>
2-12 (r) A licensed distributor may not receive by purchase or
2-13 any other manner bingo equipment, devices, or supplies from a
2-14 person other than a licensed manufacturer or another licensed
2-15 distributor.
2-16 (u) Bingo may be played using a pull-tab bingo game, a
2-17 break-open bingo ticket, or an instant bingo ticket subject to the
2-18 rules of the commission <A licensed authorized organization may not
2-19 conduct a bingo game in which any player uses or is assisted by a
2-20 computerized or electronic device that is used instead of or in
2-21 conjunction with the player's traditional paper or nondisposable
2-22 bingo card>.
2-23 (v) A person may not use a card-minding device:
2-24 (1) to generate or determine the random letters,
2-25 numbers, or other symbols used in playing the bingo card played
2-26 with the device's assistance;
2-27 (2) as a receptacle for the deposit of tokens or
2-28 money, including coins or paper currency, in payment for playing
2-29 the bingo card played with the device's assistance; or
2-30 (3) as a dispenser for the payment of a bingo prize,
2-31 including coins, paper currency, or any thing of value for the
2-32 bingo card played with the device's assistance.
2-33 (w) A ticket or pull-tab dispenser may not be used:
2-34 (1) to generate or determine the random letters,
2-35 numbers, or other symbols used in playing a bingo game;
2-36 (2) to affect the chances of winning at a bingo game;
2-37 or
2-38 (3) as a dispenser for the payment of a bingo prize,
2-39 including coins, paper currency, or any thing of value for the
2-40 bingo game played.
2-41 (x) The price of a break-open bingo ticket, instant bingo
2-42 ticket, or a pull-tab bingo game sold by a ticket or pull-tab
2-43 dispenser may not exceed $1 for each break-open bingo ticket,
2-44 instant bingo ticket, or pull-tab bingo game sold.
2-45 SECTION 3. Section 13, Bingo Enabling Act (Article 179d,
2-46 Vernon's Texas Civil Statutes), is amended by amending Subsections
2-47 (b) and (j) and adding Subsections (s), (t), and (u) to read as
2-48 follows:
2-49 (b) If a license is not issued or denied before the 31st day
2-50 after the date of the filing of an application for a license, the
2-51 payment of the proper license fee, the filing of a copy of a valid
2-52 Section 501(c) exemption statement issued by the Internal Revenue
2-53 Service, if required, and the completion of a criminal background
2-54 investigation has been completed <On preliminary approval of an
2-55 application>, the commission shall <may> issue a temporary
2-56 authorization for the activity requested that is valid, subject to
2-57 automatic revocation if a denial letter is issued, for <any period
2-58 of> not more than 60 days. The effective period may be extended by
2-59 the commission on written request filed before the end of the
2-60 period of temporary authorization except as limited by Subsection
2-61 (h) of this section.
2-62 (j) A license may not be transferred by a licensee, except
2-63 that<, in accordance with commission rules,> a licensed commercial
2-64 lessor <who is an individual> may transfer a <the individual's>
2-65 license held by the licensee to a corporation formed by the
2-66 licensee or from one corporation owned by the licensee to another
2-67 corporation owned by the licensee <individual>.
2-68 (s) It is an offense for a person not licensed under this
2-69 Act to sell or attempt to induce the sale of bingo equipment,
2-70 devices, supplies, or automated bingo services to a person licensed
3-1 to conduct bingo games.
3-2 (t) A system service provider shall not provide these
3-3 services to anyone other than a licensed authorized organization or
3-4 a group of licensed authorized organizations to conduct bingo. It
3-5 is an offense for a system service provider to provide these
3-6 services to anyone other than a licensed authorized organization or
3-7 a group of licensed authorized organizations to conduct bingo.
3-8 (u) An offense under Subsection (s) or (t) is a Class A
3-9 misdemeanor.
3-10 SECTION 4. The Bingo Enabling Act (Article 179d, Vernon's
3-11 Texas Civil Statutes), is amended by adding Section 13e to read as
3-12 follows:
3-13 Sec. 13e. SYSTEM SERVICE PROVIDER'S LICENSE. (a) To sell
3-14 or supply, in any manner, automated bingo services for the use of
3-15 licensed authorized organizations, each system service provider
3-16 must obtain a license from the commission.
3-17 (b) An applicant for a license must file with the commission
3-18 a written application that includes:
3-19 (1) the name and address of the applicant;
3-20 (2) if a noncorporate entity, the name and address of
3-21 each owner;
3-22 (3) if a corporation, the name and address of each
3-23 officer and director and each person owning 10 percent or more of
3-24 any class of stock in the corporation;
3-25 (4) information regarding whether the applicant or any
3-26 person who is required to be named in the application has been
3-27 convicted of a felony, criminal fraud, gambling, or gambling
3-28 related offense, or a crime of moral turpitude; and
3-29 (5) information regarding whether the applicant or any
3-30 person required to be named in the application is an owner,
3-31 officer, director, shareholder, agent, or employee of a commercial
3-32 lessor licensed under this Act.
3-33 (c) A person is not eligible for a license under this
3-34 section if:
3-35 (1) the person has been convicted of a felony,
3-36 criminal fraud, a gambling offense, a gambling related offense, or
3-37 a crime of moral turpitude and it has been less than 10 years since
3-38 the termination of the sentence, parole, or probation related to
3-39 the offense; or
3-40 (2) the person is an owner, officer, or director of a
3-41 holder of a commercial lessor licensed under this Act.
3-42 (d) The fee for a system service provider license is $1,000
3-43 plus any cost incurred to conduct the criminal background checks.
3-44 (e) A system service provider shall not hold another license
3-45 under this Act.
3-46 (f) A license for a system service provider shall be revoked
3-47 if within the license period any disqualifications under this
3-48 section occur.
3-49 (g) A system service provider is subject to the same
3-50 licensing provisions for manufacturers and distributors as stated
3-51 in Sections 13a(a) and 13b(b) of this Act.
3-52 (h) The commission upon receipt of a complaint may inspect
3-53 the system service provider services. The system service provider
3-54 shall provide sufficient information to the commission in regards
3-55 to a complaint.
3-56 SECTION 5. Section 16(j), Bingo Enabling Act (Article 179d,
3-57 Vernon's Texas Civil Statutes), is amended to read as follows:
3-58 (j) The commission by rule may <shall> establish the number
3-59 and type of bingo games that may be played during an occasion.
3-60 SECTION 6. Section 17(a), Bingo Enabling Act (Article 179d,
3-61 Vernon's Texas Civil Statutes), is amended to read as follows:
3-62 (a) A person under the age of 18 years may not play a game
3-63 of bingo conducted under a license issued under this Act unless the
3-64 person is accompanied by his parent or guardian, except that a
3-65 licensee may prohibit all persons under the age of 18 or an age
3-66 younger than 18 years of age as determined by the licensee from
3-67 entering the licensed premises by posting a written notice to that
3-68 effect at the place where the game is conducted.
3-69 SECTION 7. Section 18, Bingo Enabling Act (Article 179d,
3-70 Vernon's Texas Civil Statutes), is amended to read as follows:
4-1 Sec. 18. Frequency and Times of Games. A game of bingo may
4-2 not be conducted under any license issued under this Act more often
4-3 than three days per calendar week, not to exceed four hours per
4-4 occasion <24-hour period>. Only one bingo occasion per day may be
4-5 conducted under each license issued under this Act. No more than
4-6 two organizations may conduct a game of bingo in one place on one
4-7 day. If two organizations conduct games of bingo in one place on
4-8 one day, these occasions must be announced separately, and an
4-9 intermission of at least 10 <30> minutes must occur between the
4-10 games. <A game conducted under a temporary license may not be
4-11 conducted in violation of this section.>
4-12 SECTION 8. Section 19a, Bingo Enabling Act (Article 179d,
4-13 Vernon's Texas Civil Statutes), is amended by amending Subsections
4-14 (d) and (k) and adding Subsections (l) and (m) to read as follows:
4-15 (d) The following items of expense incurred or paid by an
4-16 organization in connection with bingo must be paid from the
4-17 organization's bingo account:
4-18 (1) advertising;
4-19 (2) security during a bingo occasion;
4-20 (3) the purchase and repair of bingo supplies and
4-21 equipment;
4-22 (4) prizes, other than authorized cash prizes;
4-23 (5) stated rental;
4-24 (6) bookkeeping, legal, or accounting services;
4-25 (7) fees for callers, cashiers, and ushers;
4-26 (8) license fees; <and>
4-27 (9) janitorial services; and
4-28 (10) payment for services provided by a system service
4-29 provider, which may be paid from gross receipts as defined in this
4-30 Act.
4-31 (k) Before the end of each quarter, each licensed authorized
4-32 organization shall disburse for charitable purposes all of the net
4-33 proceeds from the <an amount not less than 35 percent of the
4-34 organization's adjusted gross receipts from the last> preceding
4-35 quarter<, less the amount of authorized expenses not to exceed six
4-36 percent of the gross receipts. For purposes of this subsection,
4-37 adjusted gross receipts means gross receipts plus any consideration
4-38 received from the rental of premises for bingo by the authorized
4-39 organization, less the amount of prizes paid in the preceding
4-40 quarter. If a licensed authorized organization fails to meet the
4-41 requirements of this subsection for a quarter, the commission in
4-42 applying appropriate sanctions may consider whether, taking into
4-43 account the amount required to be distributed during that quarter
4-44 and the three preceding quarters and the charitable distributions
4-45 for each of those quarters, the organization has distributed a
4-46 total amount sufficient to have met the 35 percent requirement for
4-47 that quarter and the three preceding quarters combined>.
4-48 (l) In Subsection (k) of this section, "net proceeds from
4-49 the preceding quarter" means an amount equal to the sum of the
4-50 organization's gross sales and the organization's rental income
4-51 related to bingo purposes minus the expenses allowed under Section
4-52 19(c) of this Act incurred during the preceding quarter.
4-53 (m) Notwithstanding Subsection (k) of this section, a
4-54 licensed authorized organization may retain $10,000 or less in the
4-55 organization's bingo account as a reserve for expenditures
4-56 authorized under Section 19(c) of this Act.
4-57 SECTION 9. Sections 11(e) and 19(b), Bingo Enabling Act
4-58 (Article 179d, Vernon's Texas Civil Statutes), are repealed.
4-59 SECTION 10. This Act takes effect September 1, 1995.
4-60 SECTION 11. The importance of this legislation and the
4-61 crowded condition of the calendars in both houses create an
4-62 emergency and an imperative public necessity that the
4-63 constitutional rule requiring bills to be read on three several
4-64 days in each house be suspended, and this rule is hereby suspended.
4-65 * * * * *