The Attorney General of Texas 

December 21, 1981 

MARK WHITE 

Attorney General 

supreme coull BulldIng 

P. 0. Box 12548 

AUSlkl. TX. 79711 

5121475.2501 

Telex 91018711397 

1ehcoplar 512147tx259 

1907 Main St.. Suite 1400 

Dallas, TX. 75201 

214l7428944 

4S24 AltatS Ave.. mte Is0 

El Pasc.0. TX. 79995 

91563344W 

1220 Dallas Ave.. Suite 202 

Houston, TX. 77002 

71- 

905 Broadway. Suite 312 

Lubbock. TX. 79491 

eml747.5239 

Uoo N. Tenth. Suite S 

MeAllen, TX. 7&X1 

512i8924547 

200 M&l Plaza. suite 400 

San Antonio. TX. 79295 

512l22!H191 

An Equal OpportunItyI 

Atflrmatlve Actlon Employer 

Eonorable Bob Bullock 

Comptroller of Public Accounts 

L.B.J. State Office Building 

Austin, Texas 70774 

opinion No. km-413 

Re: Interpretation of House 

Bill No. 3 relating to regulation and taxation of bingo 

games 

Dear Mr. Bullock: 

You have requested our opinion regarding certain provisions of 

House Bill No. 3, recently enacted by the Sixty-seventh Legislature. 

V.T.C.S. art. 179d. Acts 1981, 67th Leg., 1st C.S.. ch. 11, at 85. 

The statute authorizes various local jurisdictions to legalize bingo 

games for charitable purposes and to impose a two percent gross 

receipts tax thereon. You first inquire about an apparent conflict 

between sections 11 and 13, which provide, in pertinent part: 

Sec. 11. (a) The conduct of bingo games 

authorized under this Act is subject to the 

restrictions prescribed by this section regardless 

of ~whether the restrictions are contained in a 

local ordinance. 

. . . . 

(e) A prize may not exceed the sum or value 

of $500 in any single game of bingo. 

(f) A series of prizes on any one bingo 

occasion may not aggregate more than $2.500. 

. . . . 

Sec. 13. . . . . 

(b) The comptroller of public accounts shall 

issue to an applicant a license for the conduct of 

bingo, on payment of a $50 license fee, if the 

comptroller determines that: 

. . . . 

p. 1408 
Honorable Bob Bullock - Page 2 (Mu-413) 

(5) no prize will be offered or given in 

excess of the sum or value of $1.000 in any single 

game and that the aggregate of all prizes offered 

and given In all of the games conducted on a 

single occasion under the license will not exceed 

the sum or value of $5,000. 

Id. at 90. 92. You ask whether section 11 governs the limits under 

which a license may be issued. 

Section 11 imposes restrictions on the actual conduct of bingo 

games. among which are that a prize may not exceed the value of $500 

in any single game and that a series of prizes “on any one bingo 

occasion” may not exceed the value of $2500. Failure to comply with 

such restrictions is made an offense by section 36(a)(S) of the 

statute. Id. at 98-99. 

- 

Section 13. on the other hand. controls the.issuance bf a license 

for the conduct of bingo games. The comptroller is required to issue 

a license to an applscant. on payment of a $50 fee. If the comptroller 

determines, inter alla, that “the games are to be. conducted in 

accordance with this Act” and “no prize will be offered or given in 

excess~ of the sum or value of $1.000 in any single games and that the 

aggregate of all prizes... on a single occasion” will not exceed 

$5000. Section 13(b).(3), (5). 

Since section 11 controls the actual conduct of bingo games, and 

section 13 controls ,the Issuance of licenses, It is clear that the two 

sections serve different purposea. As a result, we do not believe 

that ~their provisions are necessarily In conflict. The comptroller 

should issue a license to any applicant whom he has determined has 

complied with the requirements of section 13. We note, moreover, that 

section 13(b)(3) requires the comptroller to determine that the games 

will be conducted in accordance with the act, including the section 11 

prize limitations. Games which comply with the section 11 limits will 

necessarily be within the limits stated in section 13(b)(5). 

You next ask: 

2. If a ‘justice precinct of a county 

legalires bingo but the county commissioners court 

does not impose the tax. may a municipality impose 

a tax on a portion of the justice precinct within 

the municipality? 

3. If a county legalizes bingo but the 

county cormmissioners court does not impose the 

tax. may a municipality impose a tax on that 

portion of the county within the municipality? 

p. 1409 
T Honorable Bob Bullock - Page 3 (Mu-413) 

4. If the answer to either 2 or 3 is ‘yes’, 

must the municipality hold an election to impose 

the tax? 

5. If the municipality imposes the tax. may 

the commissioners court thereafter impose the tax 

in the county or justice precinct? 

6. If the answer to (5) is ‘yes’. is the 

county then entitled to receive the 2% tax to the 

exclusion of the city? 

Section 3 provides: 

Sec. 3. (a) The commissioners court of a 

county that has voted to legalize bingo or in 

which a justice precinct has voted to legalize 

bingo by order may impose a two percent gross 

receipts tax on the conduct of bingo games within 

the county. 

(b) The governing body of a municipality 

that has voted to legalize bingo by ordinance may 

impose a two percent gross receipts tax on the 

conduct of bingo~games within the municipality. 

(c) Any municipality within which one or 

more justice precincts have voted to legalize 

bingo and which municipality has not voted to 

prohibit bingo may impose a two percent gross 

receipts tax on the conduct of bingo games within 

the municipality. 

(d) Any gross receipts otherwise subject to 

tax by a county are exempt from the municipal tax 

if a tax has been imposed on the gross receipts by 

a county. 

V.T.C.S. art..179d. )3. Acts 1981. 67th Leg., 1st C.S., ch. 11. at 87. 

Section 3(c) permits a municipality to impose the gross receipts 

tax In those justice precincts within the municipality that have voted 

to legalfze bingo. provided the municipality itself has not voted to 

prohibit bingo. If the county has legalized bingo but the 

commissioners court has not imposed the tax, the municipality may 

impose the tax in that portion of the county within the municipality, 

provided again that the municipality has not voted to prohibit bingo. 

The municipality is not required to hold an election to impose the tax 

under these conditions. 

If the municipality imposes the tax, the commissioners court may 

later impose the tax In the entire county or within one or more 

p. 1410 
Honorable Bob Bullock - Page 4 (MW-413) 

justice precincts. provided the county or the particular justice 

precinct has acted to legalize bingo. Section 3(a). Under such 

circumstances, all gross receipts are exempted from the municipal tax, 

and the county is thus entitled to receive the tax to the exclusion of 

the city. Section 3(d). 

Your last question is whether an authorized organization located 

outside an area which has legalized bingo csn qualify for a license 

within the legalized area. Section 12 of the statute prescribes the 

requirements for a license application and section 13 describes the 

conditions under which the comptroller must issue a license. No 

provision thereof would prevent an authorized organization which is 

otherwise qualified from obtaining a license merely because it is 

located outside an area which has legalized bingo. 

SUMMARY 

Prior to issuing a license to conduct bingo 

games, the comptroller must determine that the 

applicant will comply with the provisions of 

section 11 of House Bill No. 3. If a justice 

precinct of a county legalizes bingo but the 

commissioners court does not impose the tax, the 

municipality may impose a tax on the portion of 

the precinct in the city without holding an 

election. If the county legalizes bingo but does 

not impose the tax, the city may impose the tax on 

the portion of the county within the municipality 

without holding an election. If the municipality 

imposes the tax, the commissioners court may later 

impose the tax in the entire county or within one 

or more justice precincts. An authorized 

organization located outside an area which is 

legalized may obtain a license. 

zg 

MARK WHITE 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Rick Gilpin 

Assistant Attorney General 

p. 1411 
Honorable Bob Bullock - Page 5 (MU-413) 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Rick Gilpin 

Sherrita Lee 

. Jim Moellinger 

p. 1412