SRC-MAX H.B. 2086 75(R) BILL ANALYSIS Senate Research Center H.B. 2086 By: Palmer (Lucio) State Affairs 5-16-97 Engrossed DIGEST Charitable bingo operators do not have the resources to compete with the non-charitable operators. This bill sets forth provisions regarding the operation of charitable bingo games. PURPOSE As proposed, H.B. 2086 sets forth provisions regarding the operation of charitable bingo games. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Lottery Commission in SECTION 1 and 2 (Section 19(d) and 19a(k), Article 179d, V.T.C.S.) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 19(d), Article 179d, V.T.C.S. (Bingo Enabling Act), to require, rather than authorize, the Texas Lottery Commission to adopt rules restricting involvement in the conduct, promotion, or administration of bingo by certain persons. SECTION 2. Amends Section 19A, Article 179d, V.T.C.S., to set forth the calculation of adjusted gross receipts means gross receipts. Provides that the cost of goods sold by an organization is the cost of bingo, paper, instant bingo tickets, or pull tab bingo games purchased by the organization. Deletes a provision providing that adjusted gross receipts means gross receipts plus any consideration received form the rental of premises for bingo by the authorized organization. Requires the commission, by rule, to establish the maximum deduction for costs of goods sold. Authorizes a licensed authorized organization to obtain one commercial lessor license. Authorizes the license to lease bingo premises to be used in certain circumstances. SECTION 3. Amends Article 179d, V.T.C.S., by adding Section 44, as follows: Sec. 44. Prohibits the commission from requiring a person who has held license for a certain period of time from completing an application of the renewal of the license that is more than two pages in length. Requires the commission to adopt renewal forms that have been reasonably sized and reasonably sized print. SECTION 4. Makes application of this Act prospective to October 1, 1997. Requires the Texas Lottery Commission to adopt rules under Sections 19 and 19a, Article 179d, V.T.C.S., relating to the operation of bingo by bingo license holders and the distribution of proceeds for charitable purposes not later than October 1, 1997. SECTION 5. Emergency clause. Effective date: upon passage.