By: Cain S.B. No. 1309
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the definition and regulation of Bingo.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 2 of the Bingo Enabling Act, Title 6,
1-4 Article 179d, is amended to read as follows:
1-5 Sec. 2. In this Act:
1-6 (1) "Governing body" means the commissioners court
1-7 with regard to a county or justice precinct or the city council or
1-8 other chief legislative body with regard to an incorporated city or
1-9 town.
1-10 (2) "Bingo" or "game" means a specific game of chance,
1-11 commonly known as bingo or lotto, in which prizes are awarded on
1-12 the basis of designated numbers or symbols <on a card> conforming
1-13 to numbers or symbols selected at random. "Bingo" includes pull
1-14 tabs, break open tickets and instant bingo tickets.
1-15 (3) "Nonprofit organization" means an unincorporated
1-16 association or society or a corporation that is incorporated or
1-17 holds a certificate of authority under the Texas Non-Profit
1-18 Corporation Act, as amended (Article 1396-1.01 et seq., Vernon's
1-19 Texas Civil Statutes), that:
1-20 (A) does not distribute any of its income to its
1-21 members, officers, or governing body, other than as reasonable
1-22 compensation for services;
1-23 (B) for at least three years:
2-1 (i) has had a governing body or officers
2-2 elected by a vote of members or by a vote of delegates elected by
2-3 the members; or
2-4 (ii) has been affiliated with a state or
2-5 national organization organized to perform the same purposes; and
2-6 (C) has obtained a 501(c) exemption from the
2-7 Internal Revenue Service.
2-8 (4) "Fraternal organization" means:
2-9 (A) a nonprofit organization that is organized
2-10 to perform and engages primarily in performing charitable,
2-11 benevolent, patriotic, employment-related, or educational functions
2-12 and that:
2-13 (i) has been organized within Texas for at
2-14 least three years;
2-15 (ii) during the three-year period has had
2-16 a bona fide membership actively and continuously engaged as an
2-17 organization in furthering its authorized purposes;
2-18 (iii) has not authorized any person on
2-19 behalf of its membership, governing body, or officers to support or
2-20 oppose a particular candidate for public office by making political
2-21 speeches, passing out cards or other political literature, writing
2-22 letters, signing or circulating petitions, making campaign
2-23 contributions, or soliciting votes; and
2-24 (iv) is not an organization whose members
2-25 are predominantly veterans or dependents of veterans of the armed
3-1 services of the United States; or
3-2 (B) a nonprofit National Historical District
3-3 Association representing the owners and lessees of a majority of
3-4 the real property located within a "National Historical District"
3-5 so determined and designated by the National Register of Historic
3-6 Places, Heritage Conservation and Recreation Service (HCRS) of the
3-7 United States Department of the Interior, whose net proceeds as
3-8 herein defined are used for restoration, construction, maintenance,
3-9 and security within the district, and which has been so designated
3-10 for at least five years.
3-11 (5) "Religious society" means a church, synagogue, or
3-12 other organization or association that is organized primarily for
3-13 religious purposes and that has been in existence within Texas for
3-14 at least 10 years.
3-15 (6) "Veterans organization" means a nonprofit
3-16 organization whose members are veterans or dependents of veterans
3-17 of the armed services of the United States and that is chartered by
3-18 the United States Congress and organized to advance the interests
3-19 of veterans, or active duty personnel of the armed forces of the
3-20 United States and their dependents.
3-21 (7) "Person" means an individual, partnership,
3-22 corporation, or other group, however organized.
3-23 (8) "Volunteer fire department" means an association
3-24 that:
3-25 (A) operates fire-fighting equipment;
4-1 (B) is organized primarily to provide and
4-2 actively provides fire-fighting services; and
4-3 (C) does not pay its members compensation other
4-4 than nominal compensation.
4-5 (9) "Charitable purposes" means one or more of the
4-6 following causes, deeds, or activities to which the net proceeds
4-7 derived from the playing of bingo are dedicated: (A) those that
4-8 benefit needy or deserving persons in this state, indefinite in
4-9 number, by enhancing their opportunity for religious or educational
4-10 advancement, by relieving them from disease, suffering, or
4-11 distress, or by contributing to their physical well-being, by
4-12 assisting them in establishing themselves in life as worthy and
4-13 useful citizens, or by increasing their comprehension of and
4-14 devotion to the principles on which this nation was founded and
4-15 enhancing their loyalty to their government;
4-16 (B) those that initiate, perform, or foster
4-17 worthy public works in this state or enable or further the erection
4-18 or maintenance of public structures in this state;
4-19 (10) "Net proceeds" means:
4-20 (A) in relation to the gross receipts from one
4-21 or more occasions of bingo, the amount that remains after deducting
4-22 the reasonable sums necessarily and actually expended for
4-23 advertising, security, repairs to premises and equipment, bingo
4-24 supplies and equipment, prizes, stated rental, or mortgage and
4-25 insurance expenses, if any, bookkeeping, legal, or accounting
5-1 services, fees for personnel as permitted under Subsection (c) of
5-2 Section 19 of this Act, janitorial services and utility supplies
5-3 and services, if any, license fees, and the fee on prizes imposed
5-4 by Section 19b of this Act; and
5-5 (B) in relation to the gross rent or other
5-6 consideration received by an organization licensed to conduct bingo
5-7 for the use of its premises, fixtures, or equipment by another
5-8 licensee, the amount that remains after deducting the reasonable
5-9 sums necessarily and actually expended for janitorial services and
5-10 utility supplies directly attributable to the use of the premises,
5-11 fixtures, or equipment, if any.
5-12 (11) "Authorized organization" means a religious
5-13 society, a nonprofit organization (other than an organization whose
5-14 membership is predominantly veterans or their dependents organized
5-15 to advance the interests of veterans, active duty personnel, or
5-16 their dependents) whose predominant activities are for the support
5-17 of medical research or treatment programs, a fraternal or veterans
5-18 organization, or a volunteer fire department.
5-19 (12) "Authorized commercial lessor" means a person
5-20 eligible for a commercial license to lease bingo premises under
5-21 Section 13 of this Act.
5-22 (13) "Gross receipts" means the total amount received
5-23 from the sale, rental, transfer, or use of bingo cards and entrance
5-24 fees charged at locations in which bingo is conducted.
5-25 (14) "Municipal secretary" means the officer of a
6-1 municipality who performs the duties of city secretary, regardless
6-2 of the officer's title.
6-3 (15) "Municipality" means an incorporated city or
6-4 town.
6-5 (16) "Political subdivision" means a county, justice
6-6 precinct, or municipality.
6-7 (17) "Licensee" means the holder of an annual license,
6-8 commercial lessor's license, temporary license, or temporary
6-9 authorization issued under this Act.
6-10 (18) "Distributor" means a person who obtains by
6-11 purchase or other manner bingo equipment, devices, or supplies for
6-12 use in bingo games in this state and who sells or otherwise
6-13 furnishes those items to another person for use, resale, display,
6-14 or operation of the equipment, devices, or supplies.
6-15 (19) "Manufacturer" means:
6-16 (A) a person who assembles from raw materials or
6-17 subparts a completed piece of bingo equipment, devices, or supplies
6-18 for use in bingo games in this state; or
6-19 (B) a person who converts, modifies, adds to or
6-20 removes parts from any bingo equipment, item, device, or assembly
6-21 to further its promotion or sale for or use in a bingo game in this
6-22 state.
6-23 (20) "Commission" means the Texas Lottery Commission.
6-24 (21) "Substantial interest" means the interest a
6-25 person has in an organization, association, or business as follows:
7-1 (A) if, with respect to a sole proprietorship,
7-2 an individual or his marital community owns, operates, manages, or
7-3 conducts directly or indirectly any part of the organization,
7-4 association, or business;
7-5 (B) if, with respect to a partnership, the
7-6 individual or his marital community has a right to a share in any
7-7 of the profits or potential profits of the partnership activities;
7-8 (C) if, with respect to a corporation, an
7-9 individual or his spouse is an officer or director of or the
7-10 individual or his marital community is a holder directly or
7-11 beneficially of 10 percent or more of any class of stock of the
7-12 corporation;
7-13 (D) if, with respect to an organization not
7-14 covered by Paragraph (A), (B), or (C) of this subdivision, an
7-15 individual or his spouse is an officer in or manages the business
7-16 affairs of the organization or the individual or his marital
7-17 community owns or controls 10 percent or more of the assets of the
7-18 organization; or
7-19 (E) if an individual or his marital community
7-20 provides 10 percent or more of the capital, whether in cash, goods,
7-21 or services, for the operation of a business, association, or
7-22 organization during a calendar year.
7-23 (22) "Bingo equipment" means equipment actually used,
7-24 made, or sold for the purpose of use in bingo games and includes
7-25 machines or other devices from which balls or other items are
8-1 withdrawn to determine the letters and numbers or other symbols to
8-2 be called, the balls or items themselves, bingo cards, and any
8-3 other device commonly used in the direct operation of the game.
8-4 "Bingo equipment" does not include:
8-5 (A) a bingo game set commonly manufactured and
8-6 sold as a child's game for a retail price of $20 or less unless the
8-7 set or a part of the set is actually used in a bingo game subject
8-8 to regulation under this Act; or
8-9 (B) commonly available component parts of bingo
8-10 equipment such as light bulbs, fuses, or bingo balls.
8-11 (C) electronic or mechanical instant ticket
8-12 dispensers and card minding devices.
8-13 (23) "Bingo occasion" means all activities incident to
8-14 the conduct of a series of bingo games by a licensed authorized
8-15 organization. A bingo occasion begins when the bingo premises are
8-16 opened to the public and includes not only the organization's
8-17 licensed times but also those preparatory and concluding activities
8-18 incident to the conduct of bingo games. If two organizations are
8-19 licensed to conduct bingo at the same place on the same day, the
8-20 bingo occasion of one organization may overlap with the bingo
8-21 occasion of the other organization, but their bingo games must be
8-22 separated by the intermission required by Section 18 of this Act.
8-23 In that event, the intermission is considered part of each
8-24 organization's bingo occasion.
8-25 SECTION 2. Section 11 of the Bingo Enabling Act is amended
9-1 to read as follows:
9-2 Sec. 11. (a) The conduct of bingo games authorized under
9-3 this Act is subject to the restrictions prescribed by this section
9-4 regardless of whether the restrictions are contained in a local
9-5 ordinance.
9-6 (b) A person, other than a licensed authorized commercial
9-7 lessor or except a person who leases or otherwise makes available a
9-8 hall or other premises to an organization that has been issued a
9-9 temporary license, may not lease or otherwise make available for
9-10 conducting a bingo game subject to this Act a hall or other
9-11 premises for any consideration, direct or indirect.
9-12 (c) A bingo game may not be conducted on or within any
9-13 leased premises if rental under the lease is to be paid, in whole
9-14 or part, on the basis of a percentage of the receipts or net
9-15 proceeds derived from the operation of the game or by reference to
9-16 the number of people in attendance at a game.
9-17 (d) The net proceeds of any game of bingo and of any rental
9-18 of premises for bingo by an authorized organization shall be
9-19 exclusively devoted to charitable purposes.
9-20 (e) <A prize may not exceed the sum or value of $500 in any
9-21 single game of bingo.>
9-22 <(f)> (e) A series of prizes offered or awarded on any one
9-23 bingo occasion for bingo games other than instant bingo may not
9-24 aggregate more than $2,500.
9-25 <(g)> (f) A person other than a bona fide member of a
10-1 licensed authorized organization may not conduct, promote,
10-2 administer, or assist in conducting, promoting, or administering, a
10-3 bingo game.
10-4 <(h)> (g) A person may not be denied admission to a game or
10-5 the opportunity to participate in a game because of race, color,
10-6 creed, religion, national origin, sex, or handicap or because the
10-7 person is not a member of the licensed authorized organization that
10-8 is conducting the game.
10-9 <(i)> (h) Bingo games may not be conducted at more than one
10-10 location on property owned or leased by a licensed authorized
10-11 organization.
10-12 <(j)> (i) No more than two affiliated organizations may be
10-13 licensed to conduct bingo at the same location.
10-14 <(k)> (j) A game of chance other than bingo may not be
10-15 conducted or allowed during an occasion when bingo is played. This
10-16 section does not prohibit the exhibition for play of coin operated
10-17 amusement machines not defined as gambling devices.
10-18 <(l)> (k) A licensed authorized organization may not offer
10-19 or provide to a person the opportunity to play bingo without
10-20 charge. An organization conducting bingo must record all
10-21 transactions for which it receives bingo gross receipts on a cash
10-22 register, which must be in conformance with specifications
10-23 prescribed by rule of the commission.
10-24 <(m)> (l) An authorized organization may conduct bingo only
10-25 in the county where the organization is principally located. For
11-1 purposes of this subsection, an organization is principally located
11-2 in the county within which it has its primary business office. If
11-3 the organization has no business office, the organization is
11-4 principally located in the county of the principal residence of its
11-5 chief executive officer.
11-6 <(n)> (m) A licensed manufacturer may furnish by sale or any
11-7 other manner bingo equipment, devices, or supplies to a licensed
11-8 distributor, but may not furnish by sale or any other manner bingo
11-9 equipment, devices, or supplies to any other person.
11-10 <(o)> (n) A licensed distributor may not furnish by sale or
11-11 any other manner bingo equipment, devices, or supplies to a person
11-12 other than a licensed authorized organization, another licensed
11-13 distributor, or a person authorized to conduct bingo under Section
11-14 39(b)(3) or (4) of this Act. A sale of bingo equipment, devices,
11-15 or supplies authorized by this subsection must be made on terms
11-16 requiring immediate payment or requiring payment not later than the
11-17 30th day after the date of actual delivery.
11-18 <(p)> (o) No one other than a licensed lessor or licensed
11-19 authorized organization may advertise <or promote> bingo. <A
11-20 licensed authorized organization may not include in an
11-21 advertisement or promotion the amount of a prize or series of
11-22 prizes offered at a bingo occasion.>
11-23 <(q)> (p) A licensed authorized organization or other person
11-24 may not award or offer to award a door prize or other prize to
11-25 persons present at a bingo occasion or participating in a bingo
12-1 occasion in addition to the prizes awarded for winning the
12-2 individual bingo games.
12-3 <(r)> (q) A licensed distributor may not receive by purchase
12-4 or any other manner bingo equipment, devices, or supplies from a
12-5 person other than a licensed manufacturer or another licensed
12-6 distributor.
12-7 <(s)> (r) Except for a purchase made by a licensed
12-8 authorized organization under Subsection (t) of this section, a
12-9 licensed authorized organization or a person authorized to conduct
12-10 bingo under Section 39(b)(3) or (4) of this Act may not obtain by
12-11 purchase or any other manner bingo equipment, devices, or supplies
12-12 from a person other than a licensed distributor.
12-13 <(t)> (s) With the prior written consent of the commission,
12-14 a licensed authorized organization may make an occasional sale of
12-15 bingo cards or of a used bingo flashboard or blower to another
12-16 licensed authorized organization.
12-17 <(u) A licensed authorized organization may not conduct a
12-18 bingo game in which any player uses or is assisted by a
12-19 computerized or electronic device that is used instead of or in
12-20 conjunction with the player's traditional paper or nondisposable
12-21 bingo card.>
12-22 SECTION 3. Section 13 of the Bingo Enabling Act is amended
12-23 to read as follows:
12-24 Sec. 13. Investigation; issuance of license; fees; duration
12-25 of license. (a) The commission shall investigate the
13-1 qualifications of each applicant and the merits of each application
13-2 promptly after the filing of the application.
13-3 (b) <On preliminary approval of an application> After an
13-4 application for license has been filed together with all required
13-5 documentation and payment of the proper license fee, the commission
13-6 <may> shall issue a temporary authorization for the activity
13-7 requested for <any> a period of not more than 60 days. The
13-8 effective period may be extended by the commission on written
13-9 request filed before the end of the period of temporary
13-10 authorization except as limited by Subsection (h) of this section.
13-11 (c) The commission shall issue to an applicant a license for
13-12 the conduct of bingo, or a license renewal, on payment of a license
13-13 fee in accordance with Subdivision (1) of Subsection (d) of this
13-14 section, if the commission determines that:
13-15 (1) the member or members of the applicant designated
13-16 in the application to conduct bingo are active members of the
13-17 applicant;
13-18 (2) no person under whose name the game or games of
13-19 bingo will be conducted, and no person who will work at the
13-20 proposed bingo games, has been convicted of a felony, gambling
13-21 offense, criminal fraud, or a crime of moral turpitude for which
13-22 less than 10 years have elapsed since termination of any sentence,
13-23 parole, mandatory supervision, or probation served for the offense;
13-24 (3) the games are to be conducted in accordance with
13-25 this Act;
14-1 (4) the proceeds of the games are to be disposed of as
14-2 provided by this Act;
14-3 (5) the applicant has made and can demonstrate
14-4 significant progress toward the accomplishment of the purposes of
14-5 the organization during the 12-month period preceding the date of
14-6 application for a license or license renewal; and
14-7 (6) all persons who will conduct, promote, or
14-8 administer the proposed bingo games are active, bona fide members
14-9 of the applicant organization and all other persons who will assist
14-10 in conducting, promoting, or administering the proposed bingo games
14-11 are persons authorized to do so by Section 19 of this Act.
14-12 (d) The fees for a license to conduct bingo and a commercial
14-13 license to lease bingo premises shall be set by the commission in
14-14 an amount reasonable to defray administrative costs, but not less
14-15 than the following:
14-16 (1) license to conduct bingo:
14-17 (A) Class A (annual gross receipts of $25,000 or
14-18 less)--$100;
14-19 (B) Class B (annual gross receipts of more than
14-20 $25,000 but not more than $50,000)--$200;
14-21 (C) Class C (annual gross receipts of more than
14-22 $50,000 but not more than $75,000)--$300;
14-23 (D) Class D (annual gross receipts of more than
14-24 $75,000 but not more than $100,000)--$400;
14-25 (E) Class E (annual gross receipts of more than
15-1 $100,000 but not more than $150,000)--$600;
15-2 (F) Class F (annual gross receipts of more than
15-3 $150,000 but not more than $200,000)--$900;
15-4 (G) Class G (annual gross receipts of more than
15-5 $200,000 but not more than $250,000)--$1,200;
15-6 (H) Class H (annual gross receipts of more than
15-7 $250,000 but not more than $300,000)--$1,500;
15-8 (I) Class I (annual gross receipts of more than
15-9 $300,000 but not more than $400,000)--$2,000; and
15-10 (J) Class J (annual gross receipts of more than
15-11 $400,000)--$2,500; and
15-12 (2) Commercial license to lease bingo premises:
15-13 (A) Class A (annual gross rentals from licensed
15-14 organizations of not more than $12,000)--$100;
15-15 (B) Class B (annual gross rentals from licensed
15-16 organizations of more than $12,000 but not more than
15-17 $20,000)--$200;
15-18 (C) Class C (annual gross rentals from licensed
15-19 organizations of more than $20,000 but not more than
15-20 $30,000)--$300;
15-21 (D) Class D (annual gross rentals from licensed
15-22 organizations of more than $30,000 but not more than
15-23 $40,000)--$400;
15-24 (E) Class E (annual gross rentals from licensed
15-25 organizations of more than $40,000 but not more than
16-1 $50,000)--$600;
16-2 (F) Class F (annual gross rentals from licensed
16-3 organizations of more than $50,000 but not more than
16-4 $60,000)--$900;
16-5 (G) Class G (annual gross rentals from licensed
16-6 organizations of more than $60,000 but not more than
16-7 $70,000)--$1,200;
16-8 (H) Class H (annual gross rentals from licensed
16-9 organizations of more than $70,000 but not more than
16-10 $80,000)--$1,500;
16-11 (I) Class I (annual gross rentals from licensed
16-12 organizations of more than $80,000 but not more than
16-13 $90,000)--$2,000; and
16-14 (J) Class J (annual gross rentals from licensed
16-15 organizations of more than $90,000)--$2,500.
16-16 (e) At the end of the license period, a recapitulation shall
16-17 be made between the licensee and the commission in respect of the
16-18 gross receipts or gross rentals actually recorded during the
16-19 license period and the fee paid, and any deficiency of fee shown to
16-20 be due shall be paid by the licensee and any excess of fee shown to
16-21 have been paid shall be credited to the licensee in a manner
16-22 prescribed by the commission by rule.
16-23 (f) A person who leases premises on which bingo is conducted
16-24 is not required to be a licensed commercial lessor unless the
16-25 person leases directly to a licensed authorized organization.
17-1 (g) The commission shall issue a license permitting a
17-2 commercial lessor applicant to lease premises for the conduct of
17-3 bingo to an authorized organization or organizations specified in
17-4 the application during the period specified in the application or
17-5 such shorter period as the commission determines, but not to exceed
17-6 one year, on payment of a license fee in accordance with Subsection
17-7 (d)(2) of this section if the commission determines that:
17-8 (1) the applicant seeking to lease a hall or premises
17-9 for the conduct of bingo to an authorized organization is qualified
17-10 to be licensed under this Act;
17-11 (2) the applicant satisfies the requirements for an
17-12 authorized commercial lessor as prescribed by this section;
17-13 (3) the rent to be charged is fair and reasonable and
17-14 will be charged and collected in compliance with Section 11a of
17-15 this Act;
17-16 (4) there is no diversion of the funds of the proposed
17-17 lessee from the lawful purposes as prescribed by this Act;
17-18 (5) the person whose signature or name appears in the
17-19 application is in all respects the real party in interest and is
17-20 not an undisclosed agent or trustee for the real party in interest;
17-21 and
17-22 (6) the leasing of a hall or premises for the conduct
17-23 of bingo is to be in accordance with this Act.
17-24 (h) A license issued under this Act may not be effective for
17-25 more than one year. A temporary authorization issued under
18-1 Subsection (b) of this section may not be effective for more than
18-2 one year from its original issuance date.
18-3 (i) When a license is issued by the commission, a copy of
18-4 the license shall immediately be sent by the licensee to the
18-5 appropriate governing body for filing in a central file containing
18-6 each license issued under this Act. In addition, the licensee
18-7 must, within 10 days, give written notice of the issuance of the
18-8 license to the police department of the city or town in which bingo
18-9 is to be conducted, if it is to be conducted within a city or town,
18-10 or to the sheriff of the county in which bingo is to be conducted,
18-11 if it is to be conducted outside a city or town. A bingo game may
18-12 not be commenced until the notification has been made in accordance
18-13 with this subsection.
18-14 (j) A license may not be transferred by a licensee, except
18-15 that, <in accordance with commission rules,> a licensed commercial
18-16 lessor <who is an individual> may transfer <the individual's> it's
18-17 license to a corporation formed by the <individual> licensee or
18-18 from one corporation owned by the licensed lessor to another
18-19 corporation wholly owned by the lessor licensee.
18-20 (k) The issuance of a license or temporary authorization by
18-21 the commission does not grant a vested right in the license, the
18-22 temporary authorization, or the privileges conferred.
18-23 (l) The commission may not issue a license to an authorized
18-24 organization to conduct bingo if an officer of the organization has
18-25 been convicted of a felony, criminal fraud, gambling or
19-1 gambling-related offense, or crime of moral turpitude, if less than
19-2 10 years have elapsed since the termination of any sentence,
19-3 parole, mandatory supervision, or probation served for the offense.
19-4 (m) The commission may deny an application for a license or
19-5 renewal of a license issued under this section for any cause that
19-6 would permit or require the suspension or revocation of a license
19-7 issued under this section.
19-8 (n) A commercial license to lease bingo premises to a
19-9 licensed authorized organization may be issued only to:
19-10 (1) an authorized organization licensed to conduct
19-11 bingo that owns or leases premises on which bingo is or will be
19-12 conducted or an association of authorized organizations licensed to
19-13 conduct bingo that jointly own or lease premises on which bingo is
19-14 or will be conducted and that the organization or association
19-15 leases or offers for lease to one or more other authorized
19-16 organizations to conduct bingo;
19-17 (2) a person who leases premises to a single licensed
19-18 authorized organization that subleases or will sublease the
19-19 premises to one or more other licensed authorized organizations to
19-20 conduct bingo on the premises; or
19-21 (3) a person who leases premises for the total control
19-22 and exclusive use of only one licensed organization as that
19-23 organization's primary business office.
19-24 (o) Notwithstanding Subsection (n) of this section, a person
19-25 who was licensed as a commercial lessor on June 10, 1989, whose
20-1 license has been kept in effect since that date, and who is
20-2 otherwise eligible for the license may renew the license as a
20-3 commercial lessor of bingo premises.
20-4 (p) (q) The following persons are not eligible for a
20-5 commercial license to lease bingo premises to a licensed authorized
20-6 organization:
20-7 (1) a person convicted of a felony, criminal fraud,
20-8 gambling or gambling-related offense, or crime of moral turpitude,
20-9 if less than 10 years have elapsed since the termination of any
20-10 sentence, parole, mandatory supervision, or probation served for
20-11 the offense;
20-12 (2) a public officer who receives any consideration,
20-13 direct or indirect, as owner or lessor of premises offered for the
20-14 purpose of conducting bingo;
20-15 (3) a person who extends credit to, loans money to, or
20-16 pays or provides for the payment of license fees for an authorized
20-17 organization;
20-18 (4) a distributor or manufacturer; or
20-19 (5) a person, firm, or corporation in which a person
20-20 covered by Subdivision (1), (2), (3), or (4) of this subsection or
20-21 a person married or related in the first degree by consanguinity or
20-22 affinity, as determined under Article 5996h, Revised Statutes, to
20-23 one of those persons has greater than a 10 percent proprietary,
20-24 equitable, or credit interest or in which one of those persons is
20-25 active or employed.
21-1 (r) Subsection (q)(5) of this section does not prevent any
21-2 authorized organization, person, firm, or corporation that is not
21-3 organized for pecuniary profit and no part of the net earnings of
21-4 which inure to the benefit of any individual, member, or
21-5 shareholder from being licensed as a commercial lessor solely
21-6 because a public officer or a person married or related in the
21-7 first degree by consanguinity or affinity to a public officer is a
21-8 member of, active in, or employed by the authorized organization,
21-9 person, firm, or corporation.
21-10 SECTION 4. Section 16 of the Bingo Enabling Act is amended
21-11 to read as follows:
21-12 Sec. 16. Control and supervision; suspension of licenses;
21-13 inspection of premises. (a) The commission shall administer this
21-14 Act. The commission has broad authority and shall exercise strict
21-15 control and close supervision over all games of bingo conducted in
21-16 this state to the end that the games are fairly conducted and the
21-17 proceeds derived from the games are used for the purposes
21-18 authorized in this Act. The commission's authority under this Act
21-19 is executed through a division established by the administrator of
21-20 the commission to administer this Act. The administrator shall
21-21 employ a director of bingo operations to administer the division
21-22 under the direction of the commission and administrator. The
21-23 commission may adopt rules for the enforcement and administration
21-24 of this Act.
21-25 (b) The commission shall provide to any person on request a
22-1 printed copy of this Act and any rules applicable to the
22-2 enforcement of this Act. The commission may impose a reasonable
22-3 charge for a copy of an item provided under this subsection.
22-4 (c) The face of every disposable bingo card and each instant
22-5 bingo ticket or pull tab sold or otherwise furnished in this state
22-6 shall bear an impression of the seal of the State of Texas, the
22-7 name of the manufacturer or a trade name or trademark which has
22-8 been filed with the commission.
22-9 On the effective date of this section, all licensed
22-10 manufacturers, distributors and conductors shall report to the
22-11 commission a complete list of all disposable and instant bingo
22-12 cards in their inventory. The list must contain a description of
22-13 all disposable cards including cut, collation, color and serial
22-14 numbers and shall designate which cards or instant bingo tickets
22-15 bear the seal of prior regulatory agencies previously required.
22-16 After filing this inventory with the commission the licensee
22-17 may continue to sell and use the listed inventory until it is
22-18 depleted, abandoned, or destroyed in accordance with generally
22-19 recognized business practices.
22-20 (d) The commission by rule shall provide procedures for the
22-21 approval of bingo cards. A licensee may not use or distribute a
22-22 bingo card unless it has been approved by the commission. The
22-23 commission may set the price or adopt one or more schedules of
22-24 prices at which bingo cards may be sold or otherwise furnished by a
22-25 licensed authorized organization. A licensed authorized
23-1 organization may not sell or otherwise furnish a bingo card at a
23-2 price other than a price authorized by the commission under this
23-3 subsection <or> by a schedule adopted under this subsection. The
23-4 commission may establish procedures requiring a licensed authorized
23-5 organization to notify the commission of the price or price
23-6 schedule for bingo cards the organization will use <for one or more
23-7 reporting periods>. The licensed conductor shall file a schedule
23-8 of prices it will charge for bingo cards. For each price filed,
23-9 the cards to be sold must be identified by the cut, color, code, or
23-10 collation. This schedule may be changed each thirty days and will
23-11 remain in effect until modified or cancelled by the conductor. The
23-12 schedule may be filed by facsimile electronic transmission, or by
23-13 regular mail.
23-14 (e) After a hearing, the commission may suspend or revoke
23-15 any license issued under this Act for failure to comply with this
23-16 Act or a rule adopted by the commission under this Act, or for any
23-17 reason that would allow or require the commission to refuse to
23-18 issue or renew a license of the same class. The commission may
23-19 summarily suspend a license issued under this Act for failure to
23-20 comply with this Act or a rule adopted by the commission under this
23-21 Act if the commission determines that the licensee's continued
23-22 operation may constitute an immediate threat to the health, safety,
23-23 morals, or welfare of the public. The Administrative Procedure and
23-24 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
23-25 Statutes) does not apply to the commission in the enforcement and
24-1 administration of a summary suspension under this section.
24-2 (f) A proceeding to summarily suspend a license issued under
24-3 this Act is initiated by the commission by serving notice to the
24-4 licensee informing it of the right to a hearing before the
24-5 commission. The notice must be personally served on an officer,
24-6 operator, or agent of the licensee or sent by certified or
24-7 registered mail, return receipt requested, to the licensee's
24-8 mailing address as it appears on the commission's records. The
24-9 notice must state the alleged violations that constitute grounds
24-10 for summary suspension.
24-11 (g) If a notice of summary suspension is served on a
24-12 licensee, the commission shall simultaneously serve notice of a
24-13 hearing, to be held within 10 days after the date the notice is
24-14 served, at which the licensee shall show cause why the license
24-15 should not be summarily suspended on the 10th day after the date
24-16 the notice is served. A final hearing on the suspension or
24-17 revocation of the license shall be held, if requested by the
24-18 licensee, within 30 days after the date the commission receives
24-19 written notice of the request. A final hearing on suspension or
24-20 revocation is governed by the same rules as a hearing on any other
24-21 suspension or revocation under this Act.
24-22 (h) The commission may employ officers or investigators as
24-23 the commission considers necessary to administer this Act.
24-24 (i) The commission or the commission's officers or agents
24-25 and state, city, or county peace officers may enter and inspect the
25-1 contents of premises where a game of bingo is being conducted or
25-2 where it is intended that a game is to be conducted, or where any
25-3 equipment used or intended for use in the conduct of a game is
25-4 found.
25-5 (j) The commission by rule <shall> may establish the number
25-6 and type of bingo games that may be played during an occasion.
25-7 SECTION 5. Amend section 17 of the Bingo Enabling Act to
25-8 read as follows:
25-9 Sec. 17. Participation by Persons Under 18. (a) A person
25-10 under the age of 18 years may not play a game of bingo conducted
25-11 under a license issued under this Act unless the person is
25-12 accompanied by his parent or guardian, except that a licensee may
25-13 prohibit all persons under the age of 18 or any lesser specified
25-14 age from entering the licensed premises by posting a written notice
25-15 to that effect at the place where the game is conducted.
25-16 (b) A person under the age of 18 years may not conduct or
25-17 assist in the conduct of any game of bingo conducted under any
25-18 license issued under this Act.
25-19 SECTION 6. Amend Section 18 of the Bingo Enabling Act, Title
25-20 6 Art. 179d Revised Civil Statutes to read as follows:
25-21 Sec. 18. Frequency and Times of Games. A game of bingo may
25-22 not be conducted under any license issued under this Act more often
25-23 than three days per calendar week, not to exceed four hours per
25-24 24-hour period. Only one bingo occasion per day may be conducted
25-25 under each license issued under this Act. No more than two
26-1 organizations may conduct a game of bingo in one place on one day.
26-2 If two organizations conduct games of bingo in one place on one
26-3 day, these occasions must be announced separately, and an
26-4 intermission of at least <30> 10 minutes must occur between the
26-5 games. A game conducted under a temporary license may not be
26-6 conducted in violation of this section.
26-7 SECTION 7. The importance of this legislation and the
26-8 crowded condition of the calendars in both houses create an
26-9 emergency and an imperative public necessity that the
26-10 constitutional rule requiring bills to be read on three several
26-11 days in each house be suspended, and this rule is hereby suspended.