SRC-BWC S.B. 1720 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1720
By: Cain
State Affairs
4/12/2001
As Filed


DIGEST AND PURPOSE 

In 1995, the Legislature authorized the use of electronic bingo
card-minding devices by charities conducting bingo, but limited its use to
30 percent of gross revenues.  In 1997, the Legislature changed the
limitation to 40 percent of attendance based on attendance in prior
calendar quarters, which became known as the "40 percent Rule."  As a
result of increased use of card-minding devices, charitable proceeds have
grown and the wholesale cost of the devices to the charities has decreased.
The "40 percent Rule" places charities in the position of telling customers
it cannot sell an otherwise legal product.  Because of the 40 percent
attendance limit, based on attendance in prior calendar quarters does not
correspond to current attendance patterns, it is more difficult for
charities to comply with and for the Texas Lottery Commission to enforce
the rule.  In addition, the Bingo Advisory Committee has recommended the
repeal of the "40 percent Rule."  As proposed, S.B. 1720 repeals the
provision that limits the use of card-minding devices to 40 percent of
attendance.   

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2001.409(b), Occupations Code, to require a
licensed authorized organization that offers electronic or mechanical
card-minding devices for use in bingo to also offer regular bingo cards for
use in bingo.  Deletes text that applied a restriction to the number of
individuals who could use a electronic or mechanical card-minding device. 

SECTION 2.  Effective date: upon passage or September 1, 2001.