This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.
Amend CSHB 3 by adding a new appropriately numbered ARTICLE
to read as follows:
ARTICLE ___. CHARITABLE BINGO
SECTION __.01. Section 2001.002, Occupations Code, is
amended by amending Subdivision (5) and adding Subdivisions (9-a),
(9-b), (9-c), (20-a), (20-b), and (26-a) to read as follows:
(5) "Bingo equipment" means equipment used, made, or
sold for the purpose of use in bingo. The term:
(A) includes:
(i) a machine or other device from which
balls or other items are withdrawn to determine the letters and
numbers or other symbols to be called;
(ii) an electronic or mechanical
cardminding device;
(iii) a pull-tab dispenser;
(iv) a bingo card;
(v) a bingo ball; [and]
(vi) an electronic monitoring terminal;
(vii) a site controller; and
(viii) any other device commonly used in
the direct operation of a bingo game; and
(B) does not include:
(i) a bingo game set commonly manufactured
and sold as a child's game for a retail price of $20 or less unless
the set or a part of the set is used in bingo subject to regulation
under this chapter; or
(ii) a commonly available component part of
bingo equipment such as a light bulb or fuse.
(9-a) "Electronic monitoring terminal" means a
computer or other electronic terminal with input capabilities and
touch screen or other video monitors that may be used to play
electronic pull-tab bingo. The term includes a portable, upright,
or tabletop terminal.
(9-b) "Electronic pull-tab bingo" means an electronic
version of pull-tab bingo that is played on a card-minding device or
electronic monitoring terminal using electronic pull-tab bingo
tickets.
(9-c) "Electronic pull-tab bingo ticket" means an
electronic ticket used in electronic pull-tab bingo that is issued
from a finite deal of tickets in which some of the tickets have been
designated in advance as winning tickets.
(20-a) "Player account card" means a plastic, magnetic
stripe, paper, or smart card that may be used to:
(A) enable or track the play of bingo games;
(B) track and record customer account data,
including electronic credits purchased, played, won, or otherwise
available for participating in bingo games; or
(C) redeem credits purchased, played, or won
through a cashier or other point-of-sale station or redemption
system.
(20-b) "Point-of-sale station" includes a cashier or a
terminal that accepts or dispenses player account cards, debit
cards, or cash.
(26-a) "Site controller" means computer hardware or
software that:
(A) stores and distributes electronic pull-tab
bingo tickets for display on electronic monitoring terminals or
card-minding devices; and
(B) is located on the premises of a licensed
authorized organization.
SECTION __.02. Section 2001.054, Occupations Code, is
amended to read as follows:
Sec. 2001.054. RULEMAKING AUTHORITY. (a) The commission may
adopt rules to enforce and administer this chapter.
(b) The commission has broad authority to adopt rules to
administer and ensure compliance with Sections 2001.409(b) and
2001.4091-2001.4094.
SECTION __.03. Sections 2001.407(b), (d), and (f),
Occupations Code, are amended to read as follows:
(b) A licensed distributor may not furnish by sale, lease,
or otherwise, bingo equipment or supplies to a person other than a
licensed authorized organization, another licensed distributor, or
a person authorized to conduct bingo under Section 2001.551(b)(3)
or (4). A sale or lease of bingo equipment or supplies authorized
by this section must be made on terms requiring immediate payment or
payment not later than the 30th day after the date of actual
delivery.
(d) A licensed authorized organization may lease or
purchase bingo equipment or supplies [electronic or mechanical
card-minding devices, pull-tab dispensers, bingo machines,
consoles, blowers, and flash boards] directly from a licensed
distributor.
(f) With the prior written consent of the commission, a
licensed authorized organization may make an occasional sale of
bingo [cards or of a used bingo flash board or blower] equipment or
supplies to another licensed authorized organization.
SECTION __.04. Section 2001.408, Occupations Code, is
amended to read as follows:
Sec. 2001.408. OTHER METHODS FOR PLAYING BINGO. (a)
Subject to the commission's rules, bingo may be played using a
pull-tab bingo ticket or an electronic pull-tab bingo ticket.
(b) All prize limitations and exemptions applicable to
pull-tab bingo under Section 2001.420 are also applicable to
electronic pull-tab bingo.
SECTION __.05. Section 2001.409, Occupations Code, is
amended by amending Subsection (a) and by adding Subsection (b) to
read as follows:
(a) [A person may not use a card-minding device:
(1) to generate [or determine] the random letters,
numbers, or other symbols used in playing the bingo card played with
the device's assistance;
(2) as a receptacle for the deposit of tokens or money
in payment for playing the bingo card played with the device's
assistance; or
(3) as a dispenser for the payment of a bingo prize,
including coins, paper currency, or a thing of value for the bingo
card played with the device's assistance.] A person may use a
card-minding device:
(1) to account for credits purchased, played, or won
by playing electronic bingo games authorized by this chapter;
(2) to display and exchange credits described by
Subdivision (1) for electronic bingo cards or electronic pull-tab
bingo tickets that may be played by the person during a bingo
occasion;
(3) to read a player account card;
(4) for purchasing, marketing, and playing electronic
bingo games authorized by this chapter; and
(5) to display graphics and animation that correspond
to or represent, in an entertaining manner, the outcome of an
approved electronic pull-tab bingo ticket or game.
(b) The display of graphics and animation used to correspond
to, display, or represent the outcome of an approved electronic
pull-tab bingo ticket or electronic bingo card may not be the basis
of a requirement that a card-minding device that has previously
been approved for the play of electronic pull-tab bingo be retested
or re-approved.
SECTION __.06. Subchapter I, Chapter 2001, Occupations
Code, is amended by adding Sections 2001.4091-4001.4094 to read as
follows:
Sec. 2001.4091. SITE CONTROLLERS. (a) A site controller
may be used to:
(1) create, shuffle, store, and configure electronic
pull-tab bingo tickets;
(2) distribute electronic pull-tab bingo tickets to
electronic monitoring terminals or card-minding devices;
(3) account for, through a means that may include a
player account card, electronic credits purchased, played, or won
by playing electronic bingo games authorized by this chapter;
(4) exchange credits described by Subdivision (3) for
electronic bingo cards or electronic pull-tab bingo tickets that
may be played by a person during a bingo occasion; or
(5) play electronic bingo games authorized by this
chapter.
(b) The creation or distribution of electronic pull-tab
bingo tickets or electronic bingo cards by or through a site
controller or other method may not be the basis of a requirement
that a pre-approved site controller be retested or re-approved.
(c) A person who sells or supplies a site controller or
other equipment used to play electronic pull-tab bingo is not
required to hold a system service provider license, and the
functions performed by a site controller or other equipment related
to electronic pull-tab bingo may not be construed as the provision
of automated bingo services governed by Subchapter F.
(d) A site controller used for electronic pull-tab bingo
must be manufactured in accordance with the standards provided by
this chapter and is subject to testing by the commission or by an
independent testing facility reasonably acceptable to the
commission.
(e) The commission may inspect a site controller.
(f) The manufacturer of a site controller shall maintain a
central communications system or facility to provide the commission
with the ability to review and audit electronic pull-tab bingo
sales data.
(g) A site controller must provide a physical and electronic
means, by use of a password or other method specified by commission
rule, for securing:
(1) electronic pull-tab bingo tickets created,
shuffled, stored, and configured by the site controller; and
(2) accounting system data.
(h) Nothing in this chapter requires the use of a site
controller to play electronic pull-tab bingo or prohibits the use
of other means of creating, shuffling, storing, configuring, or
distributing electronic pull-tab bingo tickets.
Sec. 2001.4092. ELECTRONIC MONITORING TERMINALS. (a) A
person may use an electronic monitoring terminal:
(1) to insert or read a player account card;
(2) to display or exchange credits purchased, won, or
otherwise available for play of electronic bingo games authorized
by this chapter; or
(3) as a device capable of purchasing, marketing, and
playing electronic bingo games authorized by this chapter.
(b) Nothing in this chapter prohibits an electronic
monitoring terminal from generating or creating graphics and
animation to correspond to, display, or represent, in an
entertaining manner, the outcome of an approved electronic pull-tab
bingo ticket or electronic bingo cards. The generation or creation
of the graphics and animation may not be the basis of a requirement
that a pre-approved electronic monitoring terminal be retested or
re-approved.
Sec. 2001.4093. USE OF CARD-MINDING DEVICES OR ELECTRONIC
MONITORING TERMINALS IN ELECTRONIC BINGO. (a) A card-minding
device, site controller, or an electronic monitoring terminal used
for electronic pull-tab bingo:
(1) must be manufactured in accordance with the
standards provided under this chapter; and
(2) is subject to testing by the commission or by an
independent testing facility reasonably acceptable to the
commission.
(3) must be approved by the commission prior to use.
All requests for an approval of bingo equipment under this section,
that are received within 30 days after the date of adoption of a
rule establishing the standards for such approval, and that satisfy
all requirements applicable to such equipment, shall be approved on
the same date, which shall be no later than 120 days after the date
of adoption of such standards. Similar deadlines may be
established for future approvals of new card-minding devices, site
controllers, or electronic monitoring terminals.
(b) The commission may audit data relating to the sale,
exchange, inventory, or play of electronic pull-tab bingo tickets.
(c) The commission may inspect a card-minding device or
electronic monitoring terminal.
Sec. 2001.4094. AUDIT AND COMPLIANCE OF ELECTRONIC PULL-TAB
BINGO.
(a) The commission may adopt rules governing:
(1) the central communications system or facility
required to be maintained by the manufacturer of a site controller
to provide the commission with the ability to review and audit
electronic pull-tab bingo sales data;
(2) the recording and reporting of:
(A) revenue generated from the play of electronic
pull-tab bingo;
(B) all stored but un-played electronic pull-tab
bingo tickets or prizes; and
(C) all electronic pull-tab bingo tickets played
and total prizes awarded;
(3) if a player account card is used, the recording and
tracking of player account information, including electronic
credits purchased, played, won, or otherwise available for play for
electronic bingo games authorized by this chapter and electronic
credits redeemed for cash; and
(4) the retention of data necessary for audit
compliance under this chapter, including a requirement that the
data be retained electronically for one year.
(b) The commission may investigate a violation or alleged
violation of this chapter.
SECTION __.07. Subchapter I, Chapter 2001, Occupations Code,
is amended by adding Sections 2001.421 and 2001.422 to read as
follows:
Sec. 2001.421. PRIZE FEE, PAYOUT PERCENTAGE AND REVENUE
DEDICATION FOR ELECTRONIC PULL-TAB BINGO. (a) A licensed authorized
organization shall collect from a person who wins a an electronic
pull-tab bingo prize of more than $5 a fee in the amount of five
percent of the amount or value of the prize and shall remit a fee in
the amount of five percent for all prizes awarded as a result of an
electronic pull-tab bingo game.
(b) The prize payout percentage for an electronic pull-tab
bingo game may not be less than the prize payout percentage
established for a paper pull-tab bingo game.
(c) The revenue received by the state from the fee imposed
by Subsection (a) shall be used to finance the public primary and
secondary schools of this state or to reduce public school property
taxes, or both, as provided by the general appropriations act or
other law.
Sec. 2001.422. NO EXCLUSIVE VENDOR FOR ELECTRONIC PULL-TAB
BINGO. The commission may not require that electronic pull-tab
bingo be provided by a single vendor.
SECTION __.08. Subchapter I, Chapter 2001, Occupations
Code, is amended by adding Section 2001.423 to read as follows:
Sec. 2001.423. (a) In addition to the other provisions
contained in this chapter, electronic pull-tab bingo may be allowed
only under the following circumstances:
(1) at a location authorized by the commission as of
January 1, 2005, that is owned by a governmental agency where bingo
is conducted;
(2) at a location that was owned by a licensed
authorized organization where bingo was authorized to be conducted
on January 1, 2005; and
(3) under a license held by a licensed commercial
lessor whose license was in effect as of January 1, 2005, and whose
license has been in effect continuously since that date.
SECTION __.09. The Legislature finds and declares the
following:
(1) In light of the State's need to reduce school
property taxes and finance the public schools, the Texas Lottery
Commission must be authorized to commence implementation and
authorization of electronic pull-tab bingo games in accordance with
changes to Chapter 2001, Occupations Code, as amended by this
article, at the earliest possible date, consistent with legislative
directive.
(2) The implementation of electronic pull-tab bingo
described as authorized by Chapter 2001, Occupations Code, as
amended by this article, may require significant time, including
analysis and testing of electronic monitoring terminals,
electronic pull-tab bingo tickets, site controllers, point-of-sale
stations, and card-minding devices in order to establish the
electronic pull-tab bingo system.
(3) The State's public school finance and property tax
reduction program constitute an imminent peril to the public
welfare, requiring the adoption of rules and authorization for the
Texas Lottery Commission to conduct certain pre-implementation
activities related to regulating an electronic pull-tab bingo
system to ensure:
(A) that the increase in state revenue from the
prize fees derived from the conduct of electronic pull-tab bingo
games is realized as soon as possible to further the public interest
in reforming the public school finance system and property tax
reduction; and
(B) that bingo is fairly conducted and the
proceeds derived from bingo are used for an authorized purpose, and
to promote and ensure the integrity, security, honesty, and
fairness of the electronic pull-tab bingo system.
(4) In order to commence operation of electronic
pull-tab bingo, as authorized by the amendments in this article to
Chapter 2001, Occupations Code, the Texas Lottery Commission may
conduct limited pre-implementation acts as necessary to ensure the
prompt approval of the electronic pull-tab bingo equipment after
the effective date of this article.
(5) Before the effective date of the changes made in
this article to Chapter 2001, Occupations Code, the Texas Lottery
Commission may request and receive information related to
applications for licensing and testing of electronic pull-tab bingo
components as authorized under Chapter 2001, Occupations Code, as
amended by this article.
SECTION __.10. The Texas Lottery Commission may expend
money from the Commission's appropriations for the 2006-2007
biennium for purposes of conducting pre-implementation activities
to implement the changes made by this article in Subchapter I,
Chapter 2001, Occupations Code, including the development and
approval of forms for applications for licensing and testing of
electronic pull-tab bingo equipment authorized under Chapter 2001,
Occupations Code, as amended by this article.
SECTION __.11. (a) Not later than November 1, 2005, the
Texas Lottery Commission shall adopt rules necessary to implement
the changes in law made to Chapter 2001, Occupations Code, by this
article.
(b) Notwithstanding any other law, the following provisions
apply to the procedures for adoption of the rules required by
Subsection (a):
(1) The Commission shall give at least 15 days' notice
of its intention to adopt a rule before it adopts the rule pursuant
to this section.
(2) A rule adopted pursuant to this section takes
effect on the date it is filed in the office of the secretary of
state.
(3) The Commission shall notify all holders of a
manufacturer's license of the adoption of a rule pursuant to this
section within 10 days of adoption.
(4) To the extent the provisions of this section are
inconsistent with Chapter 2001, Subchapter B, Government Code, this
section prevails.