Bingo Advisory Committee Minutes Bingo Advisory Sub-Committee Meeting, October 10, 2000, Austin, Texas I. THE BINGO ADVISORY COMMITTEE CHAIR WILL CALL THE MEETING TO ORDER. Fabian Hoffner called the meeting to order at 10:06 a.m. Sub-committee members present: William Neinast, Suzanne Taylor, Saleem Tawil, Fabian Hoffner, Louie George, and David Castillo. II. REPORT, POSSIBLE DISCUSSION AND/OR ACTION, INCLUDING RECOMMENDATIONS TO THE TEXAS LOTTERY COMMISSION, ON PROPOSED LEGISLATION RELATING TO BINGO IN CONNECTION WITH THE 77TH LEGISLATURE. SPECIFICALLY; EXPANSION OF THE TIME AND LOCATION WHERE PULL-TABS CAN BE SOLD MOTION: To recommend to the Advisory Committee to approve the proposal to expand the hours for pull-tab sales by organizations at all locations at which bingo operations are conducted. VOTE: 6 Approve 0 Oppose REPEAL OF SECTION 2001.409(B) 40% LIMIT ON CARD-MINDERS Billy Atkins, Director of the Charitable Bingo Operations Division, reviewed the 40% rule on electronics with the sub-committee. Currently, no more than 40% of the individuals attending a bingo occasion, based on the average of two previously submitted quarterly reports, may use electronic or mechanical card-minding devises. This is difficult to enforce, especially with new organizations and those organizations moving to a new location. Billy suggested that the market place set the number of card-minders for sale. PUBLIC COMMENT: Scott Ingerman, representing organizations operating bingo sessions at Ten Cent Bingo and Las Vegas Bingo in San Antonio, told sub-committee members that he has been active in bingo in Texas for eighteen years. He felt that increasing the hours allowed for bingo sessions would be beneficial for all halls, including those that do not sell pull-tabs. He also told members that card-minders are great for larger halls, but not for smaller halls, he requested the sub-committee to look for ways to help the smaller halls as well as the larger halls. Scott also requested that the sub-committee look at legislation to exempt prizes of $50.00 or less from prize fees. Billy A. responded that the staff is looking at the bingo picture as a whole; they are not trying to give the larger halls any advantage over the small halls. MOTION by Louie G. that the sub-committee recommends to the Advisory Committee the repeal of Section 2001.409(b), seconded by David C. VOTE: 6 Approve 0 Oppose ALLOW FOR PROGRESSIVE BINGO GAMES OUTSIDE CURRENT PRIZE LIMITS Billy A. suggested that progressive games be allowed up to $10,000.00. The sub-committee discussed aggregate games, and a progressive game all the organizations at the hall could participate in. MOTION by William N. for the sub-committee to recommend to the Advisory Committee to forward to the Texas Lottery Commission the recommendation for legislation to allow for progressive games, seconded by Louie G. VOTE: 6 Approve 0 Oppose ALLOW FOR SUMMARY SUSPENSION AUTHORITY AND SUBPOENA POWER PUBLIC COMMENT: Knowles Cornwell, from K & B Sales (Goodtime Bingo), told the sub-committee that he does not recommend summary suspension over any violation of the act or rule; this could be detrimental to bingo. Billy A. responded that summary suspension power would move up the time clock to the hearing on the violation within ten days. MOTION by Suzanne T. that the sub-committee forward the recommendation to the Advisory Committee to recommend summary suspension authority for licensees delinquent for taxes or prize fees only. Motion died for lack of a second. MOTION by William N. for the sub-committee to recommend to the Advisory Committee to forward to the Texas Lottery Commission to propose legislation to allow for summary suspension authority and subpoena power over any violation. VOTE: 5 Approve 1 Oppose (Suzanne T.) ALLOW TO CHARGE FOR THE COST OF THE OPERATOR TRAINING PROGRAM Billy A. told the sub-committee that no provision in the budget was made for the money needed to carry out the operator training. There are costs such as travel, printing, and employee salaries. The Texas Lottery Commission feels the need for a cost recovery fee because this program has already cost the division $35,000.00. The estimated cost recovery would be $25 to $35 per person. William N. responded that he considered this to be an unfounded mandate and that the bingo division should have a line item to cover this cost and it should not be passed on to those required to attend the training. MOTION by David C. to recommend to the BAC the approval of the proposal to allow the TLC to charge for the cost of the training, motion died for lack of a second. Louis G. asked if the price for the training would go up. Billy A. responded that the fee would be set by rule and would be locked in for one year. He told sub-committee members that the first phase from March 2000 to September 2000 has cost a total of $31,000.00 and the start up cost was $1,100.00 plus travel and employee time. MOTION by David C. recommend to the BAC the approval of the proposal to allow the TLC to charge for the cost of the training, seconded by Louie G. VOTE: 2 Approve 3 Oppose THE FOLLOWING TWO ISSUES WERE ALSO DISCUSSED: 1. Sales Tax on Bingo Supplies This matter will be placed before the full committee for consideration. PUBLIC COMMENT: Chuck Bertaini told committee members that sales tax on bingo supplies does not make sense. Bill Puett will provide information on this topic to the committee at the next meeting. 2. Prize Fees on prizes $50.00 and under PUBLIC COMMENT: Scott Ingerman requested that this topic be addressed. He does not have information for the committee at this time as he was unaware of the meeting in enough time to put anything together. Billy A. responded that the meeting dates are posted in the Texas Register, on the website, and in the Bingo Bulletin. William N. told the sub-committee that he wants to set a specific date in each quarter for the BAC meetings and this will be an agenda item at the next BAC meeting. William N. also requested a history of prize fees from Billy A. Billy told members that originally there was a gross receipts tax, which was tax on the total gross receipts. A large number of charities claimed the tax was killing bingo games. This tax was later repealed and replaced with a prize fee imposed on the bingo players. This tax goes into the general revenue. MOTION: to address this item at the next BAC meeting when the full committee is present and there are more figures. VOTE: 6 Approve 0 Oppose MOTION: by Suzanne T. to request the staff to compile figures of the effect of imposing no prize fees on prizes of $50.00 and under, seconded by Louis G. VOTE: 6 Approve 0 Oppose The date for the next BAC meeting will be November 1, 2000. ADJOURNMENT Meeting adjourned at 12:40 p.m. by William N. Minutes as prepared by Suzanne Taylor, BAC Recorder.