By: Lucio S.B. No. 1735
A BILL TO BE ENTITLED
AN ACT
relating to the authorization of satellite bingo games.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2001.002, Occupations Code, is amended
by adding Subdivision (30) to read as follows:
(30) "Satellite bingo game" means a single bingo game
in which players participate simultaneously at two or more
locations and for which there is a common prize pool and a common
selection of numbers or symbols conducted at a single location,
with the results of the selection transmitted electronically to
each participating location by satellite, telephone, or other
means.
SECTION 2. Subchapter I, Chapter 2001, Occupations Code, is
amended by adding Section 2001.421 to read as follows:
Sec. 2001.421. REGULATION OF SATELLITE BINGO.
(a) Sections 2001.402 and 2001.420 do not apply to a satellite
bingo game.
(b) The commission by rule may exempt a satellite bingo game
or a person conducting or participating in a satellite bingo game or
who holds a license under this Act from any other provision of this
Act if the commission determines the exemption is necessary to
facilitate the operation and administration of satellite bingo
games.
SECTION 3. Subchapter C, Chapter 2001, Occupations Code, is
amended by adding Section 2001.108 to read as follows:
Sec. 2001.108. SATELLITE BINGO SERVICE PROVIDER'S LICENSE.
(a) To provide satellite bingo services, in any manner, for the
use of licensed authorized organizations, a person must obtain a
satellite bingo service provider's license from the commission.
(b) An applicant for a license under this section must file
with the commission a written application that includes:
(1) the name and address of the applicant;
(2) if a noncorporate entity, the name and address of
each owner;
(3) if a corporation, the name and address of each
officer and director and each person owning 10 percent or more of
any class of stock in the corporation;
(4) information regarding whether the applicant or any
person who is required to be named in the application has been
convicted of a felony, criminal fraud, gambling or gambling-related
offense, or a crime of moral turpitude; and
(5) information regarding whether the applicant or any
person required to be named in the application is an owner, officer,
director, shareholder, agent, or employee of a commercial lessor
licensed under this Act.
(c) A person is not eligible for a license under this
section if:
(1) the person has been convicted of a felony,
criminal fraud, a gambling or gambling-related offense, or a crime
of moral turpitude and it has been less than 10 years since the
termination of the sentence, parole, or probation related to the
offense; or
(2) the person is an owner, officer, or director of a
holder of a commercial lessor licensed under this Act.
(d) The fee for a satellite bingo service provider's license
is $5,000 plus any cost incurred to conduct the criminal background
checks.
(e) A license for a satellite bingo service provider shall
be revoked if any disqualifications under this section occur within
the license period.
(f) A satellite bingo service provider may purchase goods or
services from a licensed manufacturer.
(g) The commission, on receipt of a complaint, may inspect
the satellite bingo service provider's services. The satellite
bingo service provider shall provide to the commission any
information requested that relates to the complaint. The executive
director of the bingo division of the commission shall establish
procedures for investigating and resolving complaints against a
satellite bingo service provider.
(h) A satellite bingo service provider shall be bonded in an
amount established by rule of the commission. The amount of the
bond may not be less than $50,000 or more than $250,000.
(i) A satellite bingo service provider shall establish a
bank account into which all proceeds from each satellite bingo game
shall be deposited, less any prizes paid. Only the following
disbursements may be made from the satellite bingo bank account:
(1) payment of prizes;
(2) payment of taxes and fees on prizes;
(3) allocation payments to participating licensed
authorized organizations;
(4) payments for facility access fees; and
(5) payments to a satellite bingo service provider for
operating costs.
(j) Allocation payments to a licensed authorized
organization participating in satellite bingo shall be made
monthly. An organization shall receive a portion of the satellite
bingo proceeds that is based on the number of satellite bingo
sessions the organization conducted at a particular facility that
month, divided by the total number of satellite bingo sessions
conducted in the facility that month. The total amount of
allocation payments made to all participating licensed authorized
organizations may not be less than 17.5 percent of the gross
receipts derived from satellite bingo games conducted in the
facility that month.
SECTION 4. Subchapter K, Chapter 2001, Occupations Code, is
amended by adding Section 2001.516 to read as follows:
Sec. 2001.516. FEES ON SATELLITE BINGO GAME. (a) Sections
2001.502, 2001.503, and 2001.504, do not apply to a satellite bingo
game.
(b) A satellite bingo service provider shall collect a fee
from each person who wins a prize in a satellite bingo game for
which that provider provides services.
(c) The fee imposed by this section is 10 percent of the
amount or value of the prize.
(d) Revenue collected by the commission under this section
shall first be used by the commission to offset the cost of
administering the provisions of this Act regulating satellite bingo
and satellite bingo games. The commission shall transfer any
revenue remaining after those administrative costs have been
recovered by the commission to the comptroller.
(e) On receipt of revenue collected by the commission under
this section, the comptroller shall transfer the revenue to an
account in the general revenue fund dedicated to the County
Indigent Healthcare program under the Texas Department of Health.
SECTION 5. This Act takes effect October 1, 2003.