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.