H.B. 1317 78(R) BILL ANALYSIS H.B. 1317 By: Haggerty Licensing & Administrative Procedures Committee Report (Unamended) BACKGROUND AND PURPOSE Progressive bingo is a specific type of bingo game played in other states. In a progressive bingo game the player must achieve a specific pattern, by the time a specified number of bingo balls have been selected, in order to win the jackpot. If the player does not achieve the specific pattern within the specified number of numbers being called, the game is played until someone achieves a winning pattern. A consolation prize is awarded and the remainder of the advertised prize amount is carried over and added to the next progressive bingo game. This proposed legislation grants licensed organizations the authority to conduct progressive bingo games and sets forth regulations governing those progressive bingo games. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is expressly delegated to the Texas Lottery Commission in SECTION 2 (Sec.2001.421, Occupations Code) of this bill. ANALYSIS Amends Section 2001.002, Occupations Code (Bingo Enabling Act), by adding Subdivision (23-a) to define "progressive bingo." Amends Subchapter I, Chapter 2001, Occupations Code (Bingo Enabling Act), by adding Section 2001.421, to authorize a licensed organization to conduct a progressive bingo game; authorize only one progressive bingo game to be conducted during any one bingo occasion; provides that Section 2001.420(a) of this Act does not apply to a progressive bingo game and provides that the prizes awarded in a progressive bingo game do not count toward the total amount of prizes described by Section 2001.420(b) of this Act; prohibits the prize for the first bingo occasion of a progressive bingo game from exceeding $750 and authorizes the prize to be increased by no more than $500 on each successive bingo occasion until the progressive bingo game is won; requires the progressive bingo game to be continued at a future occasion until a winner is declared if the prize for a progressive bingo game is not awarded at a bingo occasion; authorizes a consolation prize of not more than $250 for a progressive bingo game to be awarded at each bingo occasion during which the game is played; provides that a licensed authorized organization that conducts a progressive bingo game must post the rules for that game as part of the organization's house rules prior to the start of the bingo occasion. Provides that those rules must remain in effect until a winner is declared for the progressive bingo game, except as otherwise ordered by the Texas Lottery Commission (commission); provides that if multiple licensed authorized organizations conduct bingo at the same location, each organization is responsible for its own progressive bingo games; provides that a licensed authorized organization conducting a progressive bingo game must maintain adequate records as specified by the commission, showing the development of the prize increase and accounting for all gross receipts taken in for that game; provides that Sections 2001.502 and 2001.503 of this Act apply to a prize awarded in a progressive bingo game, including a consolation prize; and requires the commission to adopt rules as necessary to implement this section. Requires the commission to adopt rules to administer a progressive bingo game by October 1, 2003. Prohibits the conduct of a progressive game until such rules are adopted. EFFECTIVE DATE Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2003.