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.