77R13183 GJH-F
By Reyna of Bexar H.B. No. 3234
Substitute the following for H.B. No. 3234:
By Goolsby C.S.H.B. No. 3234
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of bingo.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 2001.002(3), (6), and (11), Occupations
1-5 Code, are amended to read as follows:
1-6 (3) "Automated bingo services" means a computer
1-7 program or system for:
1-8 (A) registering and tracking bingo play and [or]
1-9 accounting for bingo sales, prizes, inventory, and prize fees;
1-10 (B) generating required reports to the
1-11 commission; and
1-12 (C) providing the conductor of a game with other
1-13 information requested for accounting or other business purposes.
1-14 (6) "Bingo occasion" means the period during which
1-15 bingo games are conducted beginning when the first number or symbol
1-16 is selected or the first pull-tab ticket is sold, whichever occurs
1-17 first [all activities incident to the conduct of a series of bingo
1-18 games by a licensed authorized organization, including the
1-19 organization's licensed times and any preparatory or concluding
1-20 activities incident to the conduct of bingo].
1-21 (11) "Fraternal organization" means[:]
1-22 [(A)] a nonprofit organization organized to
1-23 perform and engaged primarily in performing charitable, benevolent,
1-24 patriotic, employment-related, or educational functions that meet
2-1 the other requirements of this chapter[; or]
2-2 [(B) a nonprofit National Historical District
2-3 Association representing the owners and lessees of a majority of
2-4 the real property located in a National Historical District
2-5 designated for not less than five years by the National Register of
2-6 Historic Places, Heritage Conservation and Recreation Service of
2-7 the United States Department of the Interior, if the association's
2-8 net proceeds are used for restoration, construction, maintenance,
2-9 and security in the district]. The term "fraternal organization"
2-10 does not include an organization whose members are predominantly
2-11 veterans or dependents of veterans of the armed services of the
2-12 United States.
2-13 SECTION 2. Section 2001.106, Occupations Code, is amended to
2-14 read as follows:
2-15 Sec. 2001.106. FORM AND CONTENTS OF LICENSE. A license to
2-16 conduct bingo must include:
2-17 (1) the name and address of the license holder;
2-18 (2) the names and addresses of the member or members
2-19 of the license holder under whom the bingo will be conducted; and
2-20 (3) an indication of the premises where and the time
2-21 when bingo is to be conducted[;]
2-22 [(4) the specific purposes to which the net proceeds
2-23 of bingo are to be devoted; and]
2-24 [(5) a statement of whether a prize is to be offered
2-25 and the amount of any authorized prize].
2-26 SECTION 3. Section 2001.154(a), Occupations Code, is amended
2-27 to read as follows:
3-1 (a) The commission may not issue a commercial lessor license
3-2 to or renew a commercial lessor license of:
3-3 (1) a person convicted of a felony, criminal fraud, a
3-4 gambling or gambling-related offense, or a crime of moral turpitude
3-5 if less than 10 years has elapsed since termination of a sentence,
3-6 parole, mandatory supervision, or community supervision served for
3-7 the offense;
3-8 (2) a public officer who receives any consideration,
3-9 direct or indirect, as owner or lessor of premises offered for
3-10 conducting bingo;
3-11 (3) a person who extends credit to, loans money to, or
3-12 pays or provides for the payment of license fees for an authorized
3-13 organization;
3-14 (4) a distributor or manufacturer; or
3-15 (5) a person in which a person covered by Subdivision
3-16 (1), (2), (3), or (4) or a person married or related in the first
3-17 degree by consanguinity or affinity, as determined under Chapter
3-18 573, Government Code, to one of those persons has greater than a 10
3-19 percent proprietary, equitable, or credit interest or in which one
3-20 of those persons is active or employed[;]
3-21 [(6) a foreign corporation or other foreign legal
3-22 entity;]
3-23 [(7) an individual who is not a resident of this
3-24 state;]
3-25 [(8) a corporation or other legal entity owned or
3-26 controlled by:]
3-27 [(A) a foreign corporation; or]
4-1 [(B) an individual who is not a resident of this
4-2 state; or]
4-3 [(9) a corporation or other legal entity:]
4-4 [(A) whose shares are publicly traded; or]
4-5 [(B) owned or controlled by a corporation whose
4-6 shares are publicly traded].
4-7 SECTION 4. Section 2001.161(a), Occupations Code, is amended
4-8 to read as follows:
4-9 (a) An authorized organization that holds a commercial
4-10 lessor license to lease a premises on which bingo is conducted may
4-11 [must] hold a license to conduct bingo at the same premises.
4-12 SECTION 5. Subchapter I, Chapter 2001, Occupations Code, is
4-13 amended by adding Section 2001.4075 to read as follows:
4-14 Sec. 2001.4075. MULTIORGANIZATION BINGO. (a) Two or more
4-15 licensed authorized organizations that are licensed to conduct
4-16 bingo may conduct one or more multiorganization bingo games in
4-17 which each organization participates using an automated bingo
4-18 service.
4-19 (b) Each licensed authorized organization that participates
4-20 in a multiorganization game under this section is responsible for
4-21 its own bingo card sales and operating costs without regard to
4-22 which organization conducts the bingo game.
4-23 (c) The commission by rule may require a licensed authorized
4-24 organization to provide to the commission telephone or other
4-25 electronic access to an automated bingo service used by the
4-26 organization.
4-27 SECTION 6. Section 2001.409, Occupations Code, is amended to
5-1 read as follows:
5-2 Sec. 2001.409. CARD-MINDING DEVICES. [(a)] A person may not
5-3 use a card-minding device:
5-4 (1) to generate or determine the random letters,
5-5 numbers, or other symbols used in playing the bingo card played
5-6 with the device's assistance;
5-7 (2) as a receptacle for the deposit of tokens or money
5-8 in payment for playing the bingo card played with the device's
5-9 assistance; or
5-10 (3) as a dispenser for the payment of a bingo prize,
5-11 including coins, paper currency, or a thing of value for the bingo
5-12 card played with the device's assistance.
5-13 [(b) Not more than 40 percent of the individuals attending a
5-14 bingo occasion, based on the average of two previously submitted
5-15 quarterly reports, may use electronic or mechanical card-minding
5-16 devices. This subsection does not apply to pull-tab bingo.]
5-17 SECTION 7. Section 2001.411, Occupations Code, is amended by
5-18 adding Subsection (e) to read as follows:
5-19 (e) A person who otherwise qualifies to conduct a bingo game
5-20 may conduct a bingo game for a licensed authorized organization
5-21 other than a licensed authorized organization of which the person
5-22 is a member if the organization for which the person is conducting
5-23 bingo is conducting a multiorganization bingo game authorized by
5-24 Section 2001.4075 in which the organization of which the person is
5-25 a member is participating.
5-26 SECTION 8. Section 2001.414(b), Occupations Code, is amended
5-27 to read as follows:
6-1 (b) An organization conducting bingo must record [on a cash
6-2 register] all transactions for which it receives bingo gross
6-3 receipts in conformance with commission rules relating to
6-4 transaction recording specifications.
6-5 SECTION 9. Section 2001.419, Occupations Code, is amended by
6-6 amending Subsections (a) and (e) and adding Subsection (f) to read
6-7 as follows:
6-8 (a) A bingo occasion may not occur at any time other than
6-9 the time permitted in the commission's records [begins when the
6-10 premises are opened to the public].
6-11 (e) If two licensed authorized organizations are authorized
6-12 to conduct bingo at the same premises on the same day, [the bingo
6-13 occasion of one organization may overlap with the bingo occasion of
6-14 the other organization, but] their games must be separated by the
6-15 intermission required under Subsection (d). In that event, the
6-16 intermission is considered part of each organization's bingo
6-17 occasion.
6-18 (f) A multiorganization bingo game conducted under Section
6-19 2001.4075 may be conducted during the authorized bingo occasions of
6-20 each licensed authorized organization participating in the game.
6-21 SECTION 10. Sections 2001.420(a) and (b), Occupations Code,
6-22 are amended to read as follows:
6-23 (a) For a bingo game other than a bingo game conducted by
6-24 use of an automated bingo service, a [A] bingo prize may not have a
6-25 value of more than $750 for a single game.
6-26 (b) For bingo games other than pull-tab bingo or bingo games
6-27 conducted by use of an automated bingo service, a person may not
7-1 offer or award on a single bingo occasion prizes with an aggregate
7-2 value of more than $2,500.
7-3 SECTION 11. Section 2001.451(b), Occupations Code, is amended
7-4 to read as follows:
7-5 (b) A licensed authorized organization shall deposit in the
7-6 bingo account all funds derived from the conduct of bingo, less the
7-7 amount awarded as cash prizes [under Sections 2001.420(a) and (b)].
7-8 A deposit must be made not later than the next business day after
7-9 the day of the bingo occasion on which the receipts were obtained.
7-10 SECTION 12. Section 2001.452, Occupations Code, is amended by
7-11 amending Subsection (a) and adding Subsection (d) to read as
7-12 follows:
7-13 (a) Except as provided by Subsection (d), funds [Funds] from
7-14 the bingo account must be withdrawn by preprinted, consecutively
7-15 numbered checks or withdrawal slips, signed by an authorized
7-16 representative of the licensed authorized organization and made
7-17 payable to a person. A check or withdrawal slip may not be made
7-18 payable to "cash," "bearer," or a fictitious payee. The nature of
7-19 the payment made must also be noted on the face of the check or
7-20 withdrawal slip.
7-21 (d) A licensed authorized organization that uses an
7-22 automated bingo service may make payments from the bingo account by
7-23 electronic transfer to the state and to the system service
7-24 provider.
7-25 SECTION 13. Section 2001.458(a), Occupations Code, is amended
7-26 to read as follows:
7-27 (a) An item of expense may not be incurred or paid in
8-1 connection with the conduct of bingo except those expenses that are
8-2 reasonable and necessarily expended for:
8-3 (1) advertising;
8-4 (2) security;
8-5 (3) repairs to premises and equipment;
8-6 (4) bingo supplies and equipment;
8-7 (5) prizes;
8-8 (6) stated rental or mortgage and insurance expenses;
8-9 (7) bookkeeping, legal, or accounting services related
8-10 to bingo;
8-11 (8) fees in amounts authorized by the commission for
8-12 operators, callers, cashiers, ushers, janitorial services, and
8-13 utility supplies and services; and
8-14 (9) license fees.
8-15 SECTION 14. Section 2001.502, Occupations Code, is amended
8-16 to read as follows:
8-17 Sec. 2001.502. PRIZE FEE. A licensed authorized organization
8-18 shall collect from a person who wins a bingo prize in an amount or
8-19 with a value of at least $5 a fee in the amount of five percent of
8-20 the amount or value of the prize.
8-21 SECTION 15. Section 2001.551, Occupations Code, is amended
8-22 by amending Subsections (b) and (e) and adding Subsection (g) to
8-23 read as follows:
8-24 (b) A person conducting, promoting, or administering bingo
8-25 commits an offense if the person conducts, promotes, or administers
8-26 bingo other than:
8-27 (1) under a license issued under this chapter;
9-1 (2) within the confines of a home for purposes of
9-2 amusement or recreation when:
9-3 (A) no player or other person furnishes anything
9-4 of more than nominal value for the opportunity to participate;
9-5 (B) participation in the game does not exceed 15
9-6 players; and
9-7 (C) the prizes awarded or to be awarded are
9-8 nominal;
9-9 (3) on behalf of an organization of individuals 60
9-10 years of age or over, a senior citizens' association, a senior
9-11 citizens' community center program operated or funded by a
9-12 governmental entity, the patients in a hospital or nursing home,
9-13 residents of a retirement home, or the patients in a Veteran's
9-14 Administration medical center or a military hospital, solely for
9-15 the purpose of amusement and recreation of its members, residents,
9-16 or patients, when:
9-17 (A) no player or other person furnishes anything
9-18 of more than nominal value for the opportunity to participate; and
9-19 (B) the prizes awarded or to be awarded are
9-20 nominal; [or]
9-21 (4) on behalf of a business conducting the game for
9-22 promotional or advertising purposes if:
9-23 (A) the game is conducted by or through a
9-24 newspaper or a radio or television station;
9-25 (B) participation in the game is open to the
9-26 general public and is not limited to customers of the business;
9-27 (C) playing materials are furnished without
10-1 charge to a person on request; and
10-2 (D) no player is required to furnish anything of
10-3 value for the opportunity to participate; or
10-4 (5) on behalf of any group conducting the game only
10-5 for amusement.
10-6 (e) A game exempted under Subsection (b)(2), (3), [or] (4),
10-7 or (5) is not required to be licensed under this chapter.
10-8 (g) A game exempted under Subsection (b)(5) is subject to
10-9 the following restrictions:
10-10 (1) a participant may not be required to pay anything
10-11 of value, including money, as an admission fee;
10-12 (2) a participant may not be charged more than 25
10-13 cents to purchase a bingo card or sheet or another device used to
10-14 play bingo, including objects to cover spaces;
10-15 (3) each prize awarded must consist of tangible goods
10-16 or an entitlement to tangible goods;
10-17 (4) the total retail value of all prizes awarded
10-18 during a period of games may not exceed $100;
10-19 (5) all money charged for items described by
10-20 Subdivision (2) may be used only to provide the prizes described by
10-21 Subdivision (3) or refreshments for participants; and
10-22 (6) all persons conducting or assisting in the
10-23 conducting of the game must be volunteers.
10-24 SECTION 16. Section 2001.305, Occupations Code, is repealed.
10-25 SECTION 17. (a) This Act takes effect October 1, 2001.
10-26 (b) The change in law made by this Act does not affect an
10-27 offense committed before the effective date of this Act. An
11-1 offense committed before the effective date of this Act is covered
11-2 by the law in effect when the offense was committed, and the former
11-3 law is continued in effect for that purpose.