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.