By: Lucio S.B. No. 432
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the regulation and operation of bingo.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 2, Bingo Enabling Act (Article 179d,
1-4 Vernon's Texas Civil Statutes), is amended by amending Subdivision
1-5 (20) and adding Subdivisions (26) through (29) to read as follows:
1-6 (20) "Commission" means the Texas Department of
1-7 Licensing and Regulation [Lottery Commission].
1-8 (26) "Instant bingo," "pull-tab bingo," and
1-9 "break-open bingo" means a form of bingo played using tickets with
1-10 perforated break-open tabs, made of paper or paper products, the
1-11 face of which is covered or otherwise hidden from view to conceal
1-12 numbers, letters, or symbols, some of which have been designated in
1-13 advance as prize winners.
1-14 (27) "Licensed authorized organization" means an
1-15 authorized organization that holds a license to conduct bingo games
1-16 as provided by this Act and the rules adopted by the commission.
1-17 (28) "Primary business office" means the location at
1-18 which all records relating to the primary purpose of a licensed
1-19 authorized organization are maintained in the ordinary course of
1-20 business.
1-21 (29) "Location," "place," or "premises" means the area
1-22 subject to the direct control of, and to actual use by, a licensed
1-23 authorized organization or group of licensed authorized
2-1 organizations for the purpose of conducting a game of bingo.
2-2 SECTION 2. Subsections (g), (k), (p), (q), (u), and (v),
2-3 Section 11, Bingo Enabling Act (Article 179d, Vernon's Texas Civil
2-4 Statutes), are amended to read as follows:
2-5 (g) A [person other than a] bona fide member of a licensed
2-6 authorized organization may [not] conduct, promote, or administer,
2-7 or assist in conducting, promoting, or administering, a bingo game.
2-8 (k) A game of chance other than bingo or a raffle conducted
2-9 under the Charitable Raffle Enabling Act (Article 179f, Revised
2-10 Statutes, as added by Chapter 957, Acts of the 71st Legislature,
2-11 Regular Session, 1989) may not be conducted or allowed during an
2-12 occasion when bingo is played. This subsection does not prohibit
2-13 the exhibition and play of an amusement machine that is not a
2-14 gambling device as defined by Section 47.01, Penal Code.
2-15 (p) No one other than a licensed authorized organization may
2-16 advertise [or promote] bingo. A licensed authorized organization
2-17 may [not] include in an advertisement or promotion the amount of a
2-18 prize or series of prizes offered at a bingo occasion.
2-19 (q) A licensed authorized organization or other person may
2-20 not award or offer to award a door prize having a value of more
2-21 than $250 [or other prize to persons present at a bingo occasion or
2-22 participating in a bingo occasion in addition to the prizes awarded
2-23 for winning the individual bingo games].
2-24 (u) Bingo may be played using a pull-tab bingo game, a
2-25 break-open bingo ticket, or an instant bingo ticket subject to the
3-1 rules of the commission. The commission by rule shall prohibit the
3-2 playing of bingo by use of a uniform product code bar coding device
3-3 or symbol.
3-4 (v) A person may not use a card-minding device:
3-5 (1) to generate or determine the random letters,
3-6 numbers, or other symbols used in playing the bingo card played
3-7 with the device's assistance;
3-8 (2) as a receptacle for the deposit of tokens or
3-9 money, including coins or paper currency, in payment for playing
3-10 the bingo card played with the device's assistance; or
3-11 (3) as a dispenser for the payment of a bingo prize,
3-12 including coins, paper currency, or any thing of value for the
3-13 bingo card played with the device's assistance. No more than 40
3-14 [30] percent of the individuals attending a [gross bingo game sales
3-15 at each] bingo occasion, based on the average of two previously
3-16 submitted quarterly reports, may use [can be on] electronic or
3-17 mechanical card-minding devices. This provision does not
3-18 include[,] pull-tabs, instant bingo tickets, or break-open bingo
3-19 games.
3-20 SECTION 3. Subsection (a), Section 11a, Bingo Enabling Act
3-21 (Article 179d, Vernon's Texas Civil Statutes), is amended to read
3-22 as follows:
3-23 (a) The rent charged by a licensed authorized commercial
3-24 lessor to a licensed authorized organization to conduct bingo may
3-25 not exceed $450 [$600] for each bingo occasion conducted on the
4-1 premises, unless the lessee licensed authorized organization
4-2 subleases the premises to one or more other licensed authorized
4-3 organizations to conduct bingo, in which event the rent charged by
4-4 the authorized commercial lessor may not exceed $450 [$600] for
4-5 each day.
4-6 SECTION 4. Section 12, Bingo Enabling Act (Article 179d,
4-7 Vernon's Texas Civil Statutes), is amended by amending Subsection
4-8 (d) and adding Subsection (g) to read as follows:
4-9 (d) In addition to the bingo occasions otherwise authorized
4-10 by this Act, a licensed [An] authorized organization may [receive a
4-11 temporary license for the] conduct [of] bingo games for special
4-12 events at its licensed location on 12 bingo occasions during a
4-13 calendar year after [on] filing with the commission a written
4-14 notice. The notice may be transmitted to the agency by facsimile.
4-15 The licensed authorized organization shall transmit the notice to
4-16 the commission before the third day preceding the date of the
4-17 special event. The approval to conduct bingo during the special
4-18 event is a ministerial act by the commission [an application, on a
4-19 form prescribed by the commission, accompanied by a $25 license
4-20 fee]. A special event authorization [temporary license] is valid
4-21 for four hours during any one day. [An organization may receive no
4-22 more than six temporary licenses in a calendar year.] An
4-23 organization operating under a special event authorization
4-24 [temporary license] is subject to the taxes and fees authorized or
4-25 imposed by this Act and the other provisions of this Act to the
5-1 extent they can be made applicable. Notwithstanding the purposes
5-2 of a licensed authorized organization, 30 percent of the net
5-3 proceeds from a special event bingo occasion shall be dedicated for
5-4 reading and literacy programs in the county where the authorized
5-5 organization conducts bingo.
5-6 (g) For purposes of Subsection (a)(1) of this section:
5-7 (1) a copy of the Internal Revenue Service letter that
5-8 grants approval of an organization's Section 501(c) exemption is
5-9 adequate evidence of the validity of the organization's tax exempt
5-10 status; and
5-11 (2) a letter of good standing from a parent
5-12 organization that holds a Section 501(c) exemption for both the
5-13 parent organization and its affiliate is adequate evidence of the
5-14 affiliate organization's Section 501(c) exemption.
5-15 SECTION 5. Section 13, Bingo Enabling Act (Article 179d,
5-16 Vernon's Texas Civil Statutes), is amended by amending Subsections
5-17 (f) and (j) and adding Subsections (p) and (v) to read as follows:
5-18 (f) A person who leases premises on which bingo is conducted
5-19 is [not] required to be a licensed commercial lessor if [unless]
5-20 the person leases directly to a licensed authorized organization.
5-21 An authorized organization that holds a commercial license to lease
5-22 premises on which bingo is conducted must be licensed to conduct
5-23 bingo at the same premises.
5-24 (j) A license may not be transferred by a licensee[,] except
5-25 as provided by this subsection.
6-1 (1) A commercial license to lease bingo premises may
6-2 be transferred to another person with the prior approval of the
6-3 commission.
6-4 (2) A [that a] licensed commercial lessor may transfer
6-5 a license held by the licensee to a corporation formed by the
6-6 licensee or from one corporation owned by the licensee to another
6-7 corporation owned by the licensee.
6-8 (3) Subject to Subdivisions (4) and (5) of this
6-9 subsection, if an individual who holds a commercial license to
6-10 lease bingo premises dies, or becomes incapacitated as determined
6-11 by a court of this state, the individual's license is part of the
6-12 individual's estate and is subject to the laws governing the
6-13 disposition and control of property under the circumstances. Under
6-14 such circumstances, the license is not considered to have been
6-15 transferred, subject to compliance with Subdivision (6) of this
6-16 subsection. The individual's estate may take any action with
6-17 respect to the individual's license that the individual could have
6-18 taken while the individual was alive.
6-19 (4) Unless an injunction is issued under this section,
6-20 a licensed authorized organization that conducts bingo lawfully at
6-21 any location that is the subject of a license to which Subdivision
6-22 (3) of this subsection applies may continue conducting bingo at the
6-23 location following the death or incapacity of the individual
6-24 license holder.
6-25 (5) On a showing of good cause by the commission, a
7-1 district court having jurisdiction in the county for which a
7-2 commercial lessor license was issued may temporarily or permanently
7-3 enjoin the conduct of bingo at any location that is the subject of
7-4 a license to which Subdivision (3) of this subsection applies. For
7-5 purposes of this section, "good cause" means any cause that would
7-6 be sufficient for the commission to obtain a suspension under
7-7 Section 16(e) of this Act.
7-8 (6) The estate or guardian of an individual to whom
7-9 Subdivision (3) of this section applies shall notify the commission
7-10 within one year of the date the individual dies or is determined to
7-11 be incapacitated by a court of this state. The estate or guardian
7-12 and the heir or heirs or other appropriate person under the
7-13 circumstances shall promptly take all necessary steps to complete a
7-14 transfer of the license to the heir or heirs or other appropriate
7-15 person under the circumstances. A transfer of a license under this
7-16 subsection requires the prior approval of the commission. The
7-17 commission shall approve the transfer if the person to whom the
7-18 license will be transferred otherwise meets the requirements for
7-19 the license.
7-20 (p) Notwithstanding Subsection (n) of this section, the
7-21 commission may not issue a commercial license to lease bingo
7-22 premises to a licensed authorized organization unless the
7-23 commission receives evidence that the commission considers to be
7-24 adequate indicating that the licensed authorized organization is
7-25 able to:
8-1 (1) furnish the premises with furniture, fixtures, and
8-2 equipment as provided by rules adopted by the commission;
8-3 (2) provide utilities to the premises as provided by
8-4 rules adopted by the commission; and
8-5 (3) purchase the premises or renovate the premises as
8-6 provided by rules adopted by the commission.
8-7 (v)(1) Except as provided by this subsection, no more than
8-8 one bingo location may exist under a common roof or over a common
8-9 foundation.
8-10 (2) Subdivision (1) of this subsection does not apply
8-11 where more than one bingo location lawfully existed under a common
8-12 roof or over a common foundation as of January 1, 1997, and the
8-13 commission shall renew any license at such location that is
8-14 otherwise in compliance with this Act.
8-15 (3) Subdivision (2) of this subsection applies if one
8-16 or more of the bingo locations under a common roof or over a common
8-17 foundation ceases to lawfully exist.
8-18 SECTION 6. Subsection (i), Section 13c, Bingo Enabling Act
8-19 (Article 179d, Vernon's Texas Civil Statutes), is amended to read
8-20 as follows:
8-21 (i) All sales of bingo cards, supplies, devices, or
8-22 equipment to licensees must be on terms of immediate payment or on
8-23 terms requiring payment not later than the 30th day following the
8-24 date of actual delivery. If any payment is not made when due, the
8-25 seller shall notify the commission immediately and the commission
9-1 shall notify all manufacturers and distributors licensed in the
9-2 state of the default. In that event, another licensed distributor
9-3 [a person] may not sell or transfer any bingo equipment, devices,
9-4 or supplies to the purchaser in default on any terms other than
9-5 [immediate] payment on delivery and [until otherwise authorized by]
9-6 the commission may not issue a license amendment or license renewal
9-7 to the purchaser in default until the delinquent charges have been
9-8 paid. A licensed distributor shall notify the commission of a
9-9 payment received from a purchaser in default not later than the
9-10 second day after the date the payment for the delinquent amount is
9-11 received. The commission shall allow the purchaser to purchase
9-12 products from any licensed distributor after the payment of all
9-13 delinquent amounts by a purchaser in default.
9-14 SECTION 7. Section 14, Bingo Enabling Act (Article 179d,
9-15 Vernon's Texas Civil Statutes), is amended by amending Subsection
9-16 (b) and adding Subsections (d) and (e) to read as follows:
9-17 (b) A license issued under this Act may be amended on
9-18 application to the commission, and on payment of a $10 [$25] fee,
9-19 if the subject matter of the proposed amendment could lawfully and
9-20 properly have been included in the original license. A licensee
9-21 may not change the location [or times] of its bingo games until it
9-22 has surrendered its original license and received an amended
9-23 license from the commission.
9-24 (d) A licensee shall notify the commission before changing
9-25 the time or date of a bingo game. A licensee may provide notice to
10-1 the commission regarding the change of the time or date of a bingo
10-2 game by use of telephone or facsimile.
10-3 (e) The commission by rule shall provide a method by which a
10-4 licensee may pay the amendment fee required by this section.
10-5 SECTION 8. Section 16, Bingo Enabling Act (Article 179d,
10-6 Vernon's Texas Civil Statutes), is amended to read as follows:
10-7 Sec. 16. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES;
10-8 INSPECTION OF PREMISES. (a) The commission shall administer this
10-9 Act. The commission has broad authority and shall exercise strict
10-10 control and close supervision over all games of bingo conducted in
10-11 this state to the end that the games are fairly conducted and the
10-12 proceeds derived from the games are used for the purposes
10-13 authorized in this Act. The commission's authority under this Act
10-14 is executed through a division established by the [administrator of
10-15 the] commission to administer this Act. The commission
10-16 [administrator] shall employ a director of bingo operations to
10-17 administer the division under the direction of the commission [and
10-18 administrator]. The commission may adopt rules for the enforcement
10-19 and administration of this Act.
10-20 (b) The commission shall provide to any person on request a
10-21 printed copy of this Act and any rules applicable to the
10-22 enforcement of this Act. The commission may impose a reasonable
10-23 charge for a copy of an item provided under this subsection.
10-24 (c) [(d)] The commission by rule shall provide procedures
10-25 for the approval of bingo cards. A licensee may not use or
11-1 distribute a bingo card unless it has been approved by the
11-2 commission. The commission may set the price or adopt one or more
11-3 schedules of prices at which bingo cards may be sold or otherwise
11-4 furnished by a licensed authorized organization. A licensed
11-5 authorized organization may not sell or otherwise furnish a bingo
11-6 card at a price other than a price authorized by the commission
11-7 under this subsection or by a schedule adopted under this
11-8 subsection. The commission may establish procedures requiring a
11-9 licensed authorized organization to notify the commission of the
11-10 price or price schedule for bingo cards the organization will use
11-11 for one or more reporting periods. The commission shall issue a
11-12 temporary approval to a manufacturer for distribution of instant
11-13 bingo tickets not later than the fifth day after the date the
11-14 manufacturer submits acceptable instant bingo tickets to the
11-15 commission or not later than the seventh day, if the only change to
11-16 a previously approved ticket is the amount of any prize or the
11-17 number of winning tickets. The commission shall issue a temporary
11-18 approval to a manufacturer for distribution of a bingo product
11-19 other than instant bingo tickets not later than the 30th day after
11-20 the date that the manufacturer submitted the bingo product to the
11-21 commission. If the commission has not completed testing the
11-22 instant bingo tickets or other bingo product within the time as
11-23 provided by this section, the commission shall issue to the
11-24 manufacturer of the product a temporary license to sell the
11-25 untested instant bingo tickets or other bingo product in this
12-1 state. If the commission disapproves any bingo product issued
12-2 temporary approval under this section, the manufacturer of the
12-3 product shall remove, at the manufacturer's expense, the product
12-4 from the premises of any license holder not later than the seventh
12-5 day after the date the manufacturer is notified of the product's
12-6 disapproval.
12-7 (d) [(e)] After a hearing, the commission may suspend or
12-8 revoke any license issued under this Act for failure to comply with
12-9 this Act or a rule adopted by the commission under this Act, or for
12-10 any reason that would allow or require the commission to refuse to
12-11 issue or renew a license of the same class.
12-12 (e) The commission may temporarily [summarily] suspend a
12-13 license issued under this Act for failure to comply with this Act
12-14 or a rule adopted by the commission under this Act. Before
12-15 temporarily suspending a license issued under this Act, the
12-16 director of bingo operations must follow any prehearing rules
12-17 adopted by [if] the commission to determine if [determines that]
12-18 the licensee's continued operation may constitute an immediate
12-19 threat to the health, safety, morals, or welfare of the public.
12-20 Chapter 2001, Government Code, [The Administrative Procedure and
12-21 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
12-22 Statutes)] does not apply to the director of bingo operations or to
12-23 the commission in the enforcement and administration of a temporary
12-24 [summary] suspension under this section.
12-25 (f) A proceeding to temporarily [summarily] suspend a
13-1 license issued under this Act is initiated by the director of bingo
13-2 operations [commission] by serving notice to the licensee informing
13-3 the licensee of the rules adopted by the commission regarding the
13-4 prehearing temporary suspension process and [it] of the licensee's
13-5 right to a hearing before the commission. The notice must be
13-6 personally served on an officer, operator, or agent of the licensee
13-7 or sent by certified or registered mail, return receipt requested,
13-8 to the licensee's mailing address as it appears on the commission's
13-9 records. The notice must state the alleged violations that
13-10 constitute grounds for temporary [summary] suspension.
13-11 (g) If a notice of temporary [summary] suspension is served
13-12 on a licensee, the director of bingo operations [commission] shall
13-13 simultaneously serve notice of a hearing, to be held within 10 days
13-14 after the date the notice is served, at which the licensee shall
13-15 show cause why the license should not be temporarily [summarily]
13-16 suspended on the 10th day after the date the notice is served. A
13-17 final hearing on the suspension or revocation of the license shall
13-18 be held, if requested by the licensee, within 30 days after the
13-19 date the commission receives written notice of the request. A
13-20 final hearing on suspension or revocation is governed by the same
13-21 rules as a hearing on any other suspension or revocation under this
13-22 Act.
13-23 (h) The commission may employ officers or investigators as
13-24 the commission considers necessary to administer this Act.
13-25 (i) The commission or the commission's officers or agents
14-1 and state, city, or county peace officers may enter and inspect the
14-2 contents of premises where a game of bingo is being conducted or
14-3 where it is intended that a game is to be conducted, or where any
14-4 equipment used or intended for use in the conduct of a game is
14-5 found.
14-6 (j) The commission by rule may establish the number and type
14-7 of bingo games that may be played during an occasion.
14-8 SECTION 9. Section 20, Bingo Enabling Act (Article 179d,
14-9 Vernon's Texas Civil Statutes), is amended to read as follows:
14-10 Sec. 20. REPORTING AND DUE DATE OF TAXES AND FEES. (a) The
14-11 taxes and fees authorized or imposed by this Act are due and
14-12 payable by the licensee [or any person conducting bingo games
14-13 without a license] to the commission [state treasurer] quarterly on
14-14 or before the 15th day of the month succeeding each calendar
14-15 quarter. The report must be filed under oath on forms prescribed
14-16 by the commission.
14-17 (b) The commission shall adopt rules regarding payment of
14-18 taxes and fees.
14-19 SECTION 10. The Bingo Enabling Act (Article 179d, Vernon's
14-20 Texas Civil Statutes) is amended by adding Sections 44 and 45 to
14-21 read as follows:
14-22 Sec. 44. TRAINING PROGRAM. (a) The person designated by
14-23 the licensed authorized organization under Section 12(a)(7) of this
14-24 Act shall annually complete eight hours of training as provided by
14-25 the rules of the commission.
15-1 (b) A program approved by the commission must include
15-2 training on:
15-3 (1) conducting a bingo game;
15-4 (2) administering and operating a bingo game; and
15-5 (3) promoting a bingo game.
15-6 (c) The commission by rule shall establish:
15-7 (1) the content of training courses under this
15-8 section;
15-9 (2) information concerning training to be reported to
15-10 the commission; and
15-11 (3) other training program requirements that the
15-12 commission determines to be necessary to promote the fair conduct
15-13 of bingo games and compliance with this Act.
15-14 Sec. 45. OTHER POWERS AND DUTIES OF COMMISSION. The powers
15-15 and duties of the commission under this Act are in addition to the
15-16 powers and duties of the commission under Article 9100, Revised
15-17 Statutes.
15-18 SECTION 11. Section 25, Bingo Enabling Act (Article 179d,
15-19 Vernon's Texas Civil Statutes), is repealed.
15-20 SECTION 12. (a) The powers and duties of the Texas Lottery
15-21 Commission with regard to regulation of the playing of bingo in
15-22 this state are transferred to the Texas Department of Licensing and
15-23 Regulation.
15-24 (b) The Texas Department of Licensing and Regulation assumes
15-25 the position of the Texas Lottery Commission in relation to any
16-1 liability, obligation, agreement, or contract of the Texas Lottery
16-2 Commission for the regulation of bingo.
16-3 (c) On the effective date of this Act:
16-4 (1) the Texas Lottery Commission shall transfer the
16-5 records and other property used for the regulation of bingo to the
16-6 Texas Department of Licensing and Regulation; and
16-7 (2) any unexpended and unobligated appropriation to
16-8 the Texas Lottery Commission for the regulation of bingo shall be
16-9 transferred to the Texas Department of Licensing and Regulation.
16-10 (d) A rule applicable to the regulation of bingo adopted by
16-11 the Texas Lottery Commission that is in effect immediately before
16-12 the effective date of this Act becomes a rule of the commissioner
16-13 of licensing and regulation and remains in effect until amended or
16-14 repealed.
16-15 (e) The validity of actions taken by the Texas Lottery
16-16 Commission, including the issuance of a license, is not affected by
16-17 this Act. To the extent those actions continue to have any effect
16-18 on or after September 1, 1997, they are considered to be the
16-19 actions of the Texas Department of Licensing and Regulation.
16-20 SECTION 13. This Act takes effect September 1, 1997, and
16-21 applies to a game played, bingo occasion conducted, prize awarded,
16-22 or other action taken on or after that date. A game played, bingo
16-23 occasion conducted, prize awarded, or other action taken before
16-24 that date is governed by the law in effect at the time the game was
16-25 played, bingo occasion was conducted, prize was awarded, or other
17-1 action was taken, and that law is continued in effect for that
17-2 purpose.
17-3 SECTION 14. The Texas Legislative Council shall prepare a
17-4 nonsubstantive revision of the Bingo Enabling Act (Article 179d,
17-5 Vernon's Texas Civil Statutes) for consideration by the 76th
17-6 Legislature at its regular session in 1999.
17-7 SECTION 15. The importance of this legislation and the
17-8 crowded condition of the calendars in both houses create an
17-9 emergency and an imperative public necessity that the
17-10 constitutional rule requiring bills to be read on three several
17-11 days in each house be suspended, and this rule is hereby suspended.