HBA-DMH C.S.H.B. 3234 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3234 By: Reyna, Arthur Licensing & Administrative Procedures 4/25/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Since the original enactment of the Bingo Enabling Act (Act), certain provisions of the Act have become obsolete, impractical, or archaic by virtue of industry or regulatory practices and the evolution of technology. C.S.H.B. 3234 modifies language in the Act to clarify practice and regulation issues and authorizes and provides regulations for multiorganization bingo games. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Lottery Commission in SECTION 5 (Section 2001.4075, Occupations Code) of this bill. ANALYSIS C.S.H.B. 3234 amends the Occupations Code to delete certain foreign and publicly traded corporations or entities and nonresident individuals from the list of persons or groups to which the Texas Lottery Commission (commission) is prohibited from issuing or renewing a commercial lessor license (Sec. 2001.154). The bill deletes from the information that a license to conduct bingo must include the specific purposes to which the net proceeds of bingo are to be devoted and a statement of whether a prize is to be offered and the amount of any authorized prize (Sec. 2001.106). The bill provides that an authorized organization that holds a commercial lessor license to lease a premises on which bingo is conducted may, rather than must, hold a license to conduct bingo at the same premises (Sec. 2001.161). The bill provides that a person does not commit an offense if the person is conducting, promoting, or administering bingo on behalf of any group conducting the game only for amusement, and sets forth restrictions for such games (Sec. 2001.551). The bill prohibits a bingo occasion from occurring at any time other than the time permitted in the commission's records, rather than providing that a bingo occasion begins when the premises are the requirements for collection of a prize fee, and the definition of "bingo occasion" and "fraternal organization" (Secs. 2001.002, 2001.409, and 2001.502). The bill repeals provisions relating to notice to local authorities of a license application (SECTION 11). The bill authorizes a licensed authorized organization that uses an automated bingo game to make payments from the bingo account by electronic transfer to the state and to the system service provider (Sec. 2001.452). The bill specifies that certain maximum prize award amounts do not apply to a bingo game conducted by use of an automated bingo service (Sec. 2001.420). Multiorganization Bingo Games The bill authorizes two or more licensed authorized organizations that are licensed to conduct bingo to conduct one or more multiorganization bingo games in which each organization participates using an automated bingo service. Each licensed organization that participates in a multiorganization game is responsible for its own bingo card sales and operating costs without regard to which organization conducts the bingo game. The bill authorizes the commission by rule to require a licensed authorized organization to provide to the commission telephone or other electronic access to an automated bingo service used by the organization (Sec. 2001.4075). The bill authorizes a person who otherwise qualifies to conduct a bingo game to conduct a bingo game for a licensed authorized organization other than a licensed authorized organization of which the person is a member if the organization for which the person is conducting bingo is conducting an authorized multiorganization bingo game in which the organization of which the person is a member is participating (Sec. 2001.411). The bill authorizes a multiorganization bingo game to be conducted during the authorized bingo occasions of each licensed authorized organization participating in the game (Sec. 2001.419). EFFECTIVE DATE October 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3234 differs from the original by adding provisions relating to conducting a multiorganization bingo game using an automated bingo service, including the authority of the Texas Lottery Commission by rule to require a licensed authorized organization to provide to the commission telephone or other electronic access to an automated bingo service used by the organization (Secs. 2001.4075, 2001.411, and 2001.419). The substitute also adds provisions regarding making payments from the bingo account by electronic transfer (Sec. 2001.452). The substitute modifies the applicability of certain maximum prize award amounts (Sec. 2001.420). The substitute modifies the definition of "automated bingo services" (Sec. 2001.002).