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


Senate Research CenterC.S.S.B. 1720
77R13621 GJH-FBy: Cain
State Affairs
4-24-2001
Committee Report (Substituted)


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."  C.S.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 the play of a bingo game to also offer traditional
bingo cards for the play of the bingo game.  Deletes text that prohibits
more than 40 percent of individuals attending a bingo occasion from using
electronic or mechanical card-minding devices.  Deletes text providing that
this subsection does not apply to pull tab bingo. 

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

SUMMARY OF COMMITTEE CHANGES

Differs from As Filed version in SECTION 1 by rearranging text to conform
to legislative drafting style.