By Palmer                                       H.B. No. 2086

      75R7847 CAG-D                           

                                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.  (a)  This Act applies to the operation of a bingo

2-21     game, the disbursement of funds for a charitable purpose, and the

2-22     adjusted gross receipts received by a licensed authorized

2-23     organization on or after October 1, 1997.  The law in effect before

2-24     October 1, 1997, is continued in effect for the purposes of the

2-25     calculation and distribution of funds and the operation of a bingo

2-26     game by a licensed authorized organization before October 1, 1997.

2-27           (b)  Not later than October 1, 1997, the Texas Lottery

 3-1     Commission shall adopt rules under Sections 19 and 19a, Bingo

 3-2     Enabling Act (Article 179d, Vernon's Texas Civil Statutes), as

 3-3     amended by this Act, relating to the operation of bingo by  bingo

 3-4     license holders and the distribution of proceeds for charitable

 3-5     purposes.

 3-6           SECTION 4.  The importance of this legislation and the

 3-7     crowded condition of the calendars in both houses create an

 3-8     emergency and an imperative public necessity that the

 3-9     constitutional rule requiring bills to be read on three several

3-10     days in each house be suspended, and this rule is hereby suspended,

3-11     and that this Act take effect and be in force from and after its

3-12     passage, and it is so enacted.