By Lucio S.B. No. 432
75R3355 MWV-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation and operation of bingo.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2(20), Bingo Enabling Act (Article 179d,
1-5 Vernon's Texas Civil Statutes), is amended to read as follows:
1-6 (20) "Commission" means the Texas [Lottery] Commission
1-7 of Licensing and Regulation.
1-8 SECTION 2. Section 11, Bingo Enabling Act (Article 179d,
1-9 Vernon's Texas Civil Statutes), is amended by amending Subsections
1-10 (f), (g), (k), (p), (q), and (u) to read as follows:
1-11 (f) A licensed authorized organization may offer or award a
1-12 series of prizes [offered or awarded] on not more than [any] one
1-13 bingo occasion each week as provided by rules adopted by the
1-14 commission [for bingo games other than instant bingo may not
1-15 aggregate more than $2,500].
1-16 (g) A [person other than a] bona fide member of a licensed
1-17 authorized organization may [not] conduct, promote, or administer,
1-18 or assist in conducting, promoting, or administering, a bingo game.
1-19 (k) A game of chance other than bingo or a raffle conducted
1-20 under the Charitable Raffle Enabling Act (Article 179f, Revised
1-21 Statutes) may not be conducted or allowed during an occasion when
1-22 bingo is played. This subsection does not prohibit the exhibition
1-23 and play of an amusement machine that is not a gambling device as
1-24 defined by Section 47.01, Penal Code.
2-1 (p) A licensed distributor, licensed manufacturer, licensed
2-2 authorized commercial lessor, or [No one other than a] licensed
2-3 authorized organization may advertise or promote bingo. A licensed
2-4 distributor, licensed manufacturer, or licensed authorized
2-5 commercial lessor may not obtain reimbursement for advertising
2-6 expenses from a licensed authorized organization. _A person
2-7 [licensed authorized organization] may not include in an
2-8 advertisement or promotion the amount of a prize or series of
2-9 prizes offered at a bingo occasion.
2-10 (q) A licensed authorized organization or other person:
2-11 (1) may not award a door prize, except for a door
2-12 prize donated to the organization to be awarded as a bingo door
2-13 prize; and
2-14 (2) may not award or offer to award a door prize or
2-15 other prize having a value of more than $1,000 [to persons present
2-16 at a bingo occasion or participating in a bingo occasion in
2-17 addition to the prizes awarded for winning the individual bingo
2-18 games].
2-19 (u) Bingo may be played using a pull-tab bingo game, a
2-20 break-open bingo ticket, or an instant bingo ticket subject to the
2-21 rules of the commission. The commission by rule shall prohibit the
2-22 playing of bingo by use of a uniform product code bar coding device
2-23 or symbol.
2-24 SECTION 3. Section 11a(a), Bingo Enabling Act (Article 179d,
2-25 Vernon's Texas Civil Statutes), is amended to read as follows:
2-26 (a) The rent charged by a licensed authorized commercial
2-27 lessor to a licensed authorized organization to conduct bingo may
3-1 not exceed $450 [$600] for each bingo occasion conducted on the
3-2 premises, unless the lessee licensed authorized organization
3-3 subleases the premises to one or more other licensed authorized
3-4 organizations to conduct bingo, in which event the rent charged by
3-5 the authorized commercial lessor may not exceed $450 [$600] for
3-6 each day.
3-7 SECTION 4. Section 13, Bingo Enabling Act (Article 179d,
3-8 Vernon's Texas Civil Statutes), is amended by adding Subsection (p)
3-9 to read as follows:
3-10 (p) Notwithstanding Subsection (n) of this section, the
3-11 commission may not issue a commercial license to lease bingo
3-12 premises to a licensed authorized organization unless the
3-13 commission receives evidence that the commission considers to be
3-14 adequate indicating that the licensed authorized organization is
3-15 able to:
3-16 (1) furnish the premises with furniture, fixtures, and
3-17 equipment as provided by rules adopted by the commission;
3-18 (2) provide utilities to the premises as provided by
3-19 rules adopted by the commission; and
3-20 (3) purchase the premises or renovate the premises as
3-21 provided by rules adopted by the commission.
3-22 SECTION 5. Section 14, Bingo Enabling Act (Article 179d,
3-23 Vernon's Texas Civil Statutes), is amended by amending Subsection
3-24 (b) and adding Subsections (d) and (e) to read as follows:
3-25 (b) A license issued under this Act may be amended on
3-26 application to the commission, and on payment of a $10 [$25] fee,
3-27 if the subject matter of the proposed amendment could lawfully and
4-1 properly have been included in the original license. A licensee
4-2 may not change the location [or times] of its bingo games until it
4-3 has surrendered its original license and received an amended
4-4 license from the commission.
4-5 (d) A licensee shall notify the commission before changing
4-6 the time or date of a bingo game. A licensee may provide notice to
4-7 the commission regarding the change of the time or date of a bingo
4-8 game by use of telephone or facsimile.
4-9 (e) The commission by rule shall provide a method by which a
4-10 licensee may pay the amendment fee required by this section.
4-11 SECTION 6. Section 16, Bingo Enabling Act (Article 179d,
4-12 Vernon's Texas Civil Statutes), is amended to read as follows:
4-13 Sec. 16. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES;
4-14 INSPECTION OF PREMISES. (a) The commission shall administer this
4-15 Act. The commission has broad authority and shall exercise strict
4-16 control and close supervision over all games of bingo conducted in
4-17 this state to the end that the games are fairly conducted and the
4-18 proceeds derived from the games are used for the purposes
4-19 authorized in this Act. The commission's authority under this Act
4-20 is executed through a division established by the [administrator of
4-21 the] commission to administer this Act. The commission
4-22 [administrator] shall employ a director of bingo operations to
4-23 administer the division under the direction of the commission [and
4-24 administrator]. The commission may adopt rules for the enforcement
4-25 and administration of this Act.
4-26 (b) The commission shall provide to any person on request a
4-27 printed copy of this Act and any rules applicable to the
5-1 enforcement of this Act. The commission may impose a reasonable
5-2 charge for a copy of an item provided under this subsection.
5-3 (c) [(d)] The commission by rule shall provide procedures
5-4 for the approval of bingo cards. A licensee may not use or
5-5 distribute a bingo card unless it has been approved by the
5-6 commission. The commission may set the price or adopt one or more
5-7 schedules of prices at which bingo cards may be sold or otherwise
5-8 furnished by a licensed authorized organization. A licensed
5-9 authorized organization may not sell or otherwise furnish a bingo
5-10 card at a price other than a price authorized by the commission
5-11 under this subsection or by a schedule adopted under this
5-12 subsection. The commission may establish procedures requiring a
5-13 licensed authorized organization to notify the commission of the
5-14 price or price schedule for bingo cards the organization will use
5-15 for one or more reporting periods.
5-16 (d) [(e)] After a hearing, the commission may suspend or
5-17 revoke any license issued under this Act for failure to comply with
5-18 this Act or a rule adopted by the commission under this Act, or for
5-19 any reason that would allow or require the commission to refuse to
5-20 issue or renew a license of the same class.
5-21 (e) The commission may temporarily [summarily] suspend a
5-22 license issued under this Act for failure to comply with this Act
5-23 or a rule adopted by the commission under this Act. Before
5-24 temporarily suspending a license issued under this Act, the
5-25 director of bingo operations must follow any prehearing rules
5-26 adopted by [if] the commission to determine if [determines that]
5-27 the licensee's continued operation may constitute an immediate
6-1 threat to the health, safety, morals, or welfare of the public.
6-2 Chapter 2001, Government Code, [The Administrative Procedure and
6-3 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
6-4 Statutes)] does not apply to the director of bingo operations or to
6-5 the commission in the enforcement and administration of a temporary
6-6 [summary] suspension under this section.
6-7 (f) A proceeding to temporarily [summarily] suspend a
6-8 license issued under this Act is initiated by the director of bingo
6-9 operations [commission] by serving notice to the licensee
6-10 informing the licensee of the rules adopted by the commission
6-11 regarding the prehearing temporary suspension process and [it] of
6-12 the licensee's right to a hearing before the commission. The notice
6-13 must be personally served on an officer, operator, or agent of the
6-14 licensee or sent by certified or registered mail, return receipt
6-15 requested, to the licensee's mailing address as it appears on the
6-16 commission's records. The notice must state the alleged violations
6-17 that constitute grounds for temporary [summary] suspension.
6-18 (g) If a notice of temporary [summary] suspension is served
6-19 on a licensee, the director of bingo operations [commission] shall
6-20 simultaneously serve notice of a hearing, to be held within 10 days
6-21 after the date the notice is served, at which the licensee shall
6-22 show cause why the license should not be temporarily [summarily]
6-23 suspended on the 10th day after the date the notice is served. A
6-24 final hearing on the suspension or revocation of the license shall
6-25 be held, if requested by the licensee, within 30 days after the
6-26 date the commission receives written notice of the request. A
6-27 final hearing on suspension or revocation is governed by the same
7-1 rules as a hearing on any other suspension or revocation under this
7-2 Act.
7-3 (h) The commission may employ officers or investigators as
7-4 the commission considers necessary to administer this Act.
7-5 (i) The commission or the commission's officers or agents
7-6 and state, city, or county peace officers may enter and inspect the
7-7 contents of premises where a game of bingo is being conducted or
7-8 where it is intended that a game is to be conducted, or where any
7-9 equipment used or intended for use in the conduct of a game is
7-10 found.
7-11 (j) The commission by rule may establish the number and type
7-12 of bingo games that may be played during an occasion.
7-13 SECTION 7. Sections 19b(a) and (b), Bingo Enabling Act
7-14 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
7-15 as follows:
7-16 (a) An authorized organization licensed to conduct bingo
7-17 shall collect a fee from each person who wins a prize having a
7-18 value of more than $250 in a bingo game.
7-19 (b) The fee imposed by this section is five percent of the
7-20 amount computed by subtracting $250 from the amount or value of the
7-21 prize.
7-22 SECTION 8. Section 20, Bingo Enabling Act (Article 179d,
7-23 Vernon's Texas Civil Statutes), is amended to read as follows:
7-24 Sec. 20. REPORTING AND DUE DATE OF TAXES AND FEES. (a) A
7-25 [The taxes and fees authorized or imposed by this Act are due and
7-26 payable by the] licensee or any person conducting bingo games
7-27 without a license shall report to the comptroller [state treasurer]
8-1 quarterly on or before the 15th day of the month succeeding each
8-2 calendar quarter the taxes and fees authorized or imposed by this
8-3 Act. The report must be filed under oath on forms prescribed by
8-4 the commission.
8-5 (b) The taxes and fees authorized by this Act are due and
8-6 payable, by the licensee or a person conducting bingo games without
8-7 a license, to the comptroller semimonthly. Before the 19th day of
8-8 each month, the taxpayer shall pay the tax that is due and payable
8-9 for the part of that month ending on the 15th day of the month.
8-10 The taxpayer shall pay the tax that is due and payable for the
8-11 second half of the month before the fourth day of the succeeding
8-12 month.
8-13 (c) The commission shall adopt rules regarding payment of
8-14 taxes and fees.
8-15 SECTION 9. The Bingo Enabling Act (Article 179d, Vernon's
8-16 Texas Civil Statutes) is amended by adding Sections 44 and 45 to
8-17 read as follows:
8-18 Sec. 44. TRAINING PROGRAM. (a) The person designated by
8-19 the licensed authorized organization under Section 12(a)(7) of this
8-20 Act shall annually complete 15 hours of training as provided by the
8-21 rules of the commission.
8-22 (b) A program approved by the commission must include
8-23 training on:
8-24 (1) conducting a bingo game;
8-25 (2) administering and operating a bingo game; and
8-26 (3) promoting a bingo game.
8-27 (c) The commission by rule shall establish:
9-1 (1) the content of training courses under this
9-2 section;
9-3 (2) information concerning training to be reported to
9-4 the commission; and
9-5 (3) other training program requirements that the
9-6 commission determines to be necessary to promote the fair conduct
9-7 of bingo games and compliance with this Act.
9-8 Sec. 45. OTHER POWERS AND DUTIES OF COMMISSION. The powers
9-9 and duties of the commission under this Act are in addition to the
9-10 powers and duties of the commission under Article 9100, Revised
9-11 Statutes.
9-12 SECTION 10. The following sections of the Bingo Enabling Act
9-13 (Article 179d, Vernon's Texas Civil Statutes) are repealed:
9-14 (1) Section 11(e); and
9-15 (2) Section 25.
9-16 SECTION 11. (a) The powers and duties of the Texas Lottery
9-17 Commission with regard to regulation of the playing of bingo in
9-18 this state are transferred to the Texas Commission of Licensing and
9-19 Regulation.
9-20 (b) The Texas Commission of Licensing and Regulation assumes
9-21 the position of the Texas Lottery Commission in relation to any
9-22 liability, obligation, agreement, or contract of the Texas Lottery
9-23 Commission for the regulation of bingo.
9-24 (c) On the effective date of this Act:
9-25 (1) the Texas Lottery Commission shall transfer the
9-26 records and other property used for the regulation of bingo to the
9-27 Texas Commission of Licensing and Regulation; and
10-1 (2) any unexpended and unobligated appropriation to
10-2 the Texas Lottery Commission for the regulation of bingo shall be
10-3 transferred to the Texas Commission of Licensing and Regulation.
10-4 (d) A rule applicable to the regulation of bingo adopted by
10-5 the Texas Lottery Commission that is in effect immediately before
10-6 the effective date of this Act becomes a rule of the Texas
10-7 Commission of Licensing and Regulation and remains in effect until
10-8 amended or repealed by the Texas Commission of Licensing and
10-9 Regulation.
10-10 (e) The validity of actions taken by the Texas Lottery
10-11 Commission, including the issuance of a license, is not affected by
10-12 this Act. To the extent those actions continue to have any effect
10-13 on or after September 1, 1997, they are considered to be the
10-14 actions of the Texas Commission of Licensing and Regulation.
10-15 SECTION 12. This Act takes effect September 1, 1997, and
10-16 applies to a game played, bingo occasion conducted, prize awarded,
10-17 or other action taken on or after that date. A game played, bingo
10-18 occasion conducted, prize awarded, or other action taken before
10-19 that date is governed by the law in effect at the time the game was
10-20 played, bingo occasion was conducted, prize was awarded, or other
10-21 action was taken, and that law is continued in effect for that
10-22 purpose.
10-23 SECTION 13. The Texas Legislative Council shall prepare a
10-24 nonsubstantive revision of the Bingo Enabling Act (Article 179d,
10-25 Vernon's Texas Civil Statutes) for consideration by the 76th
10-26 Legislature at its regular session in 1999.
10-27 SECTION 14. The importance of this legislation and the
11-1 crowded condition of the calendars in both houses create an
11-2 emergency and an imperative public necessity that the
11-3 constitutional rule requiring bills to be read on three several
11-4 days in each house be suspended, and this rule is hereby suspended.