By Flores H.B. No. 3688
76R8475 AJA-F
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. Sections 11(e),
1-18 (i), and (j) of this Act do not apply to a satellite bingo game.
1-19 The commission by rule may exempt a satellite bingo game or a
1-20 person conducting or participating in a satellite bingo game or who
1-21 holds a license under this Act from any other provision of this Act
1-22 if the commission determines the exemption is necessary to
1-23 facilitate the operation and administration of satellite bingo
1-24 games.
2-1 SECTION 3. The Bingo Enabling Act (Article 179d, Vernon's
2-2 Texas Civil Statutes) is amended by adding Section 13g to read as
2-3 follows:
2-4 Sec. 13g. SATELLITE BINGO SERVICE PROVIDER'S LICENSE. (a)
2-5 To provide satellite bingo services, in any manner, for the use of
2-6 licensed authorized organizations, a person must obtain a satellite
2-7 bingo service provider's license from the commission.
2-8 (b) An applicant for a license under this section must file
2-9 with the commission a written application that includes:
2-10 (1) the name and address of the applicant;
2-11 (2) if a noncorporate entity, the name and address of
2-12 each owner;
2-13 (3) if a corporation, the name and address of each
2-14 officer and director and each person owning 10 percent or more of
2-15 any class of stock in the corporation;
2-16 (4) information regarding whether the applicant or any
2-17 person who is required to be named in the application has been
2-18 convicted of a felony, criminal fraud, gambling or gambling-related
2-19 offense, or a crime of moral turpitude; and
2-20 (5) information regarding whether the applicant or any
2-21 person required to be named in the application is an owner,
2-22 officer, director, shareholder, agent, or employee of a commercial
2-23 lessor licensed under this Act.
2-24 (c) A person is not eligible for a license under this
2-25 section if:
2-26 (1) the person has been convicted of a felony,
2-27 criminal fraud, a gambling or gambling-related offense, or a crime
3-1 of moral turpitude and it has been less than 10 years since the
3-2 termination of the sentence, parole, or probation related to the
3-3 offense; or
3-4 (2) the person is an owner, officer, or director of a
3-5 holder of a commercial lessor licensed under this Act.
3-6 (d) The fee for a satellite bingo service provider's license
3-7 is $5,000 plus any cost incurred to conduct the criminal background
3-8 checks.
3-9 (e) A license for a satellite bingo service provider shall
3-10 be revoked if any disqualifications under this section occur within
3-11 the license period.
3-12 (f) A satellite bingo service provider may purchase goods or
3-13 services from a licensed manufacturer.
3-14 (g) The commission, on receipt of a complaint, may inspect
3-15 the satellite bingo service provider's services. The satellite
3-16 bingo service provider shall provide to the commission any
3-17 information requested that relates to the complaint.
3-18 (h) A satellite bingo service provider shall be bonded in
3-19 the amount of $50,000.
3-20 (i) A satellite bingo service provider shall establish a
3-21 bank account into which all proceeds from each satellite bingo game
3-22 shall be deposited, less any prizes paid. Only the following
3-23 disbursements may be made from the satellite bingo bank account:
3-24 (1) payment of prizes;
3-25 (2) payment of taxes and fees on prizes;
3-26 (3) allocation payments to participating licensed
3-27 authorized organizations;
4-1 (4) payments for facility access fees; and
4-2 (5) payments to a satellite bingo service provider for
4-3 operating costs.
4-4 (j) Allocation payments to a licensed authorized
4-5 organization participating in satellite bingo shall be made
4-6 monthly. An organization shall receive a portion of the satellite
4-7 bingo proceeds that is based on the number of satellite bingo
4-8 sessions the organization conducted at a particular facility that
4-9 month, divided by the total number of satellite bingo sessions
4-10 conducted in the facility that month. The total amount of
4-11 allocation payments made to all participating licensed authorized
4-12 organizations may not be less than 17.5 percent of the gross
4-13 receipts derived from satellite bingo games conducted in the
4-14 facility that month.
4-15 SECTION 4. This Act takes effect September 1, 1999.
4-16 SECTION 5. The importance of this legislation and the
4-17 crowded condition of the calendars in both houses create an
4-18 emergency and an imperative public necessity that the
4-19 constitutional rule requiring bills to be read on three several
4-20 days in each house be suspended, and this rule is hereby suspended.