By Palmer H.B. No. 2086
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of charitable bingo games.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 19(d), Bingo Enabling Act (Article 179d,
1-5 Vernon's Texas Civil Statutes), is amended to read as follows:
1-6 (d) The commission shall [may] adopt rules restricting
1-7 involvement in the conduct, promotion, or administration of bingo
1-8 by a licensed authorized commercial lessor, by a person having an
1-9 interest in or who is active in a licensed authorized commercial
1-10 lessor, or by a person related in the first degree by consanguinity
1-11 or affinity, as determined under Article 5996h, Revised Statutes,
1-12 to a person having an interest in or active in a licensed
1-13 authorized commercial lessor, without regard to a person's
1-14 membership status in a licensed authorized organization.
1-15 SECTION 2. Section 19a, Bingo Enabling Act (Article 179d,
1-16 Vernon's Texas Civil Statutes), is amended by amending Subsection
1-17 (k) and by adding Subsection (l) to read as follows:
1-18 (k) Before the end of each quarter, each licensed authorized
1-19 organization shall disburse for charitable purposes an amount not
1-20 less than 35 percent of the organization's adjusted gross receipts
1-21 from the last preceding quarter, less the amount of authorized
1-22 expenses not to exceed six percent of the gross receipts. For
1-23 purposes of this subsection, adjusted gross receipts means gross
1-24 receipts [plus any consideration received from the rental of
2-1 premises for bingo by the authorized organization,] less the
2-2 amount of cost of goods sold by an organization and prizes paid in
2-3 the preceding quarter. For purposes of this subsection, cost of
2-4 goods sold by an organization is the cost of bingo paper, instant
2-5 bingo tickets, or pull tab bingo games purchased by the
2-6 organization. The commission by rule shall establish the maximum
2-7 deduction for cost of goods sold. If a licensed authorized
2-8 organization fails to meet the requirements of this subsection for
2-9 a quarter, the commission in applying appropriate sanctions may
2-10 consider whether, taking into account the amount required to be
2-11 distributed during that quarter and the three preceding quarters
2-12 and the charitable distributions for each of those quarters, the
2-13 organization has distributed a total amount sufficient to have met
2-14 the 35 percent requirement for that quarter and the three preceding
2-15 quarters combined.
2-16 (l) A licensed authorized organization may obtain only one
2-17 commercial lessor license. The license to lease bingo premises may
2-18 only be issued for the same premise, place, or location where the
2-19 authorized organization is licensed to conduct its bingo games.
2-20 SECTION 3. The Bingo Enabling Act (Article 179d, Vernon's
2-21 Texas Civil Statutes) is amended by adding Section 44 to read as
2-22 follows:
2-23 Sec. 44. The commission may not require a person who has
2-24 held a license for five or more years to complete an application
2-25 for the renewal of the license that is more than two pages in
2-26 length. The commission shall adopt renewal forms that have
2-27 reasonably sized pages and reasonably sized print.
3-1 SECTION 4. (a) This Act applies to the operation of a bingo
3-2 game, the disbursement of funds for a charitable purpose, and the
3-3 adjusted gross receipts received by a licensed authorized
3-4 organization on or after October 1, 1997. The law in effect before
3-5 October 1, 1997, is continued in effect for the purposes of the
3-6 calculation and distribution of funds and the operation of a bingo
3-7 game by a licensed authorized organization before October 1, 1997.
3-8 (b) Not later than October 1, 1997, the Texas Lottery
3-9 Commission shall adopt rules under Sections 19 and 19a, Bingo
3-10 Enabling Act (Article 179d, Vernon's Texas Civil Statutes), as
3-11 amended by this Act, relating to the operation of bingo by bingo
3-12 license holders and the distribution of proceeds for charitable
3-13 purposes.
3-14 SECTION 5. The importance of this legislation and the
3-15 crowded condition of the calendars in both houses create an
3-16 emergency and an imperative public necessity that the
3-17 constitutional rule requiring bills to be read on three several
3-18 days in each house be suspended, and this rule is hereby suspended,
3-19 and that this Act take effect and be in force from and after its
3-20 passage, and it is so enacted.