By Flores H.B. No. 3688
Substitute the following for H.B. No. 3688:
By Wilson C.S.H.B. No. 3688
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authorization of satellite bingo games.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2, Bingo Enabling Act (Article 179d,
1-5 Vernon's Texas Civil Statutes), is amended by adding Subdivision
1-6 (30) to read as follows:
1-7 (30) "Satellite bingo game" means a single bingo game
1-8 in which players participate simultaneously at two or more
1-9 locations and for which there is a common prize pool and a common
1-10 selection of numbers or symbols conducted at a single location,
1-11 with the results of the selection transmitted electronically to
1-12 each participating location by satellite, telephone, or other
1-13 means.
1-14 SECTION 2. The Bingo Enabling Act (Article 179d, Vernon's
1-15 Texas Civil Statutes) is amended by adding Section 11b to read as
1-16 follows:
1-17 Sec. 11b. REGULATION OF SATELLITE BINGO. (a) Sections
1-18 11(e), (i), and (j) of this Act do not apply to a satellite bingo
1-19 game.
1-20 (b) The commission by rule may exempt a satellite bingo game
1-21 or a person conducting or participating in a satellite bingo game
1-22 or who holds a license under this Act from any other provision of
1-23 this Act if the commission determines the exemption is necessary to
1-24 facilitate the operation and administration of satellite bingo
2-1 games.
2-2 SECTION 3. The Bingo Enabling Act (Article 179d, Vernon's
2-3 Texas Civil Statutes) is amended by adding Section 13g to read as
2-4 follows:
2-5 Sec. 13g. SATELLITE BINGO SERVICE PROVIDER'S LICENSE. (a)
2-6 To provide satellite bingo services, in any manner, for the use of
2-7 licensed authorized organizations, a person must obtain a satellite
2-8 bingo service provider's license from the commission.
2-9 (b) An applicant for a license under this section must file
2-10 with the commission a written application that includes:
2-11 (1) the name and address of the applicant;
2-12 (2) if a noncorporate entity, the name and address of
2-13 each owner;
2-14 (3) if a corporation, the name and address of each
2-15 officer and director and each person owning 10 percent or more of
2-16 any class of stock in the corporation;
2-17 (4) information regarding whether the applicant or any
2-18 person who is required to be named in the application has been
2-19 convicted of a felony, criminal fraud, gambling or gambling-related
2-20 offense, or a crime of moral turpitude; and
2-21 (5) information regarding whether the applicant or any
2-22 person required to be named in the application is an owner,
2-23 officer, director, shareholder, agent, or employee of a commercial
2-24 lessor licensed under this Act.
2-25 (c) A person is not eligible for a license under this
2-26 section if:
2-27 (1) the person has been convicted of a felony,
3-1 criminal fraud, a gambling or gambling-related offense, or a crime
3-2 of moral turpitude and it has been less than 10 years since the
3-3 termination of the sentence, parole, or probation related to the
3-4 offense; or
3-5 (2) the person is an owner, officer, or director of a
3-6 holder of a commercial lessor licensed under this Act.
3-7 (d) The fee for a satellite bingo service provider's license
3-8 is $5,000 plus any cost incurred to conduct the criminal background
3-9 checks.
3-10 (e) A license for a satellite bingo service provider shall
3-11 be revoked if any disqualifications under this section occur within
3-12 the license period.
3-13 (f) A satellite bingo service provider may purchase goods or
3-14 services from a licensed manufacturer.
3-15 (g) The commission, on receipt of a complaint, may inspect
3-16 the satellite bingo service provider's services. The satellite
3-17 bingo service provider shall provide to the commission any
3-18 information requested that relates to the complaint. The executive
3-19 director of the bingo division of the commission shall establish
3-20 procedures for investigating and resolving complaints against a
3-21 satellite bingo service provider.
3-22 (h) A satellite bingo service provider shall be bonded in an
3-23 amount established by rule of the commission. The amount of the
3-24 bond may not be less than $50,000 or more than $250,000.
3-25 (i) A satellite bingo service provider shall establish a
3-26 bank account into which all proceeds from each satellite bingo game
3-27 shall be deposited, less any prizes paid. Only the following
4-1 disbursements may be made from the satellite bingo bank account:
4-2 (1) payment of prizes;
4-3 (2) payment of taxes and fees on prizes;
4-4 (3) allocation payments to participating licensed
4-5 authorized organizations;
4-6 (4) payments for facility access fees; and
4-7 (5) payments to a satellite bingo service provider for
4-8 operating costs.
4-9 (j) Allocation payments to a licensed authorized
4-10 organization participating in satellite bingo shall be made
4-11 monthly. An organization shall receive a portion of the satellite
4-12 bingo proceeds that is based on the number of satellite bingo
4-13 sessions the organization conducted at a particular facility that
4-14 month, divided by the total number of satellite bingo sessions
4-15 conducted in the facility that month. The total amount of
4-16 allocation payments made to all participating licensed authorized
4-17 organizations may not be less than 17.5 percent of the gross
4-18 receipts derived from satellite bingo games conducted in the
4-19 facility that month.
4-20 SECTION 4. The Bingo Enabling Act (Article 179d, Vernon's
4-21 Texas Civil Statutes) is amended by adding Section 19d to read as
4-22 follows:
4-23 Sec. 19d. FEES ON SATELLITE BINGO GAME. (a) Sections 19b
4-24 and 19c of this Act do not apply to a satellite bingo game.
4-25 (b) A satellite bingo service provider shall collect a fee
4-26 from each person who wins a prize in a satellite bingo game for
4-27 which that provider provides services.
5-1 (c) The fee imposed by this section is 10 percent of the
5-2 amount or value of the prize.
5-3 (d) Revenue collected by the commission under this section
5-4 shall first be used by the commission to offset the cost of
5-5 administering the provisions of this Act regulating satellite bingo
5-6 and satellite bingo games. The commission shall transfer any
5-7 revenue remaining after those administrative costs have been
5-8 recovered by the commission to the comptroller.
5-9 (e) On receipt of revenue collected by the commission under
5-10 this section, the comptroller shall transfer the revenue to a trust
5-11 fund established for the perpetual support and maintenance of a
5-12 veterans cemetery system, until the total amount of money in the
5-13 trust fund is $50 million. After the amount of money in the trust
5-14 fund first reaches $50 million, the comptroller shall transfer
5-15 revenue collected under this section to the general revenue fund.
5-16 SECTION 5. This Act takes effect October 1, 1999.
5-17 SECTION 6. The importance of this legislation and the
5-18 crowded condition of the calendars in both houses create an
5-19 emergency and an imperative public necessity that the
5-20 constitutional rule requiring bills to be read on three several
5-21 days in each house be suspended, and this rule is hereby suspended.