0001
 1                      TRANSCRIPT OF PROCEEDINGS
 2                             BEFORE THE
 3                      TEXAS LOTTERY COMMISSION
 4                            AUSTIN, TEXAS
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      PUBLIC COMMENT HEARING ON 16 TAC §§ 402.102 (Bingo Advisory 
 6   Committee), 402.300 (Pull-Tab Bingo), and 
                   402.402 (Registry of Bingo Workers)
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11                             MAY 9, 2018
12                             10:00 A.M.
13                                 AT 
14                      TEXAS LOTTERY COMMISSION
                           611 East 6th Street
15                         Austin, Texas 78701
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                Proceedings reported by electronic sound recording;
22   transcript prepared by Verbatim Reporting & Transcription
      LLC. 
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0002
 1                             APPEARANCES
 2   GENERAL COUNSEL:                   Bob Biard
 3   ACTING DIRECTOR OF THE CHARITABLE
      BINGO OPERATIONS DIVISION:         Ed Rogers
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      WITNESSES:
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      TEXAS CHARITY ADVOCATES:           Tom Stewart 
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      TEXAS CHARITY ADVOCATES and
 7   BINGO INTEREST GROUP:              Stephen Fenoglio
 8   DEPARTMENT OF TEXAS, 
      VETERANS OF FOREIGN WARS:          Kimberly Kiplin
 9    (written statement)
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0003
 1                        P R O C E E D I N G S
 2                  MR. BIARD:  Okay.  Good morning.  We're on the
 3   record.  It is 10:02 on Wednesday, May 9th, 2018.  My name's
 4   Bob Biard, I'm the General Counsel of the Texas Lottery
 5   Commission, and with me today is Ed Rogers who's the acting
 6   Director of the Charitable Bingo's Operations Division.
 7                  The purpose of this hearing is to receive
 8   public comment on proposed amendments to the Chapter 402
 9   Bingo Rules, including 402.102, which is the Bingo Advisory
10   Committee rule, 402.300, which is the Pull-Tab Bingo rule,
11   and 402.402, which is the rule on the Registry of Bingo
12   Workers.  
13                  In addition to this public comment hearing,
14   the Commission is accepting written comments by mail, email
15   and facsimile.  Written comments should be submitted no later
16   than Tuesday, May 29th, 2018.  This hearing notice was
17   published in the Texas Register on Friday, April 27th, 2018. 
18   The proposals were published at 43 Texas Register 2509.
19                  The purpose of the proposed amendments to the
20   Bingo Advisory Committee rule is to update and streamline the
21   BAC member eligibility and appointment procedures and
22   procedural requirements regarding BAC meetings.  These
23   changes will provide greater flexibility to the Commission in
24   administering the BAC process through enhanced bingo industry
25   participation in advising the Commission on Charitable Bingo
0004
 1   regulatory issues. 
 2                  The purpose of the proposed amendments to the
 3   Pull-Tab Bingo rule is to remove an unnecessary provision
 4   requiring detailed information to be provided in a packing
 5   slip inside each deal of Pull-Tab bingo tickets.  These
 6   changes will reduce regulation of the manufacture of pull-
 7   tabs.
 8                  The purpose of the proposed amendments to the
 9   Registry of Bingo Workers rule is first, to remove a
10   requirement that a provisional employee of a licensed
11   authorized organization must indicate the playing locations
12   where they are provisionally employed on the application for
13   Registry of Approved Bingo Workers form submitted to the
14   Commission.  And second, to extend the length of time a
15   provisional employee who's not a resident of Texas may work
16   without being listed on the Bingo Registry from 45 days to 75
17   days. 
18                  At this time we have received two witness
19   affirmation forms.  If anyone has not turned in a form and
20   they wish to speak, you may submit a form now.  I don't see 
21   -- no one is coming forward to provide me additional forms,
22   so I think rather than go off the record, I think we'll just
23   proceed with comments.  
24                  I have two forms, one from Tom Stewart of
25   Texas Charity Advocates, and the other from Stephen Fenoglio,
0005
 1   also for Texas Charity Advocates.  And first, we'll take Mr.
 2   Stewart, Tom Stewart.  
 3                  MR. STEWART:  Great.  Thank you.  Good
 4   morning. 
 5                  MR. BIARD:  You're welcome.  
 6                  MR. STEWART:  Again, my name is Tom Stewart. 
 7   I serve as Executive Director of Texas Charity Advocates. 
 8   TCA is one of the largest, if not the largest, associations
 9   of charitable bingo operators in the state.  We have more
10   than 300 members all across the state of Texas, 90 percent of
11   those members are charitable operators.  And I'm here today
12   to speak on their behalf in support of the rule and the
13   proposed changes to the rules specifically in regard to the
14   Bingo Advisory Commission, Pull-Tabs and the Registry. 
15                  In particular, I just would add that we're
16   grateful and appreciative to the Commissioners and staff for
17   listening to our desire and to reestablish the Bingo Advisory
18   Committee.  We had supported legislation in 2017 that would
19   have mandated appointing the Committee, but we appreciate and
20   are grateful for the fact that the Commissioners have
21   listened and determined that it is worthwhile to reestablish
22   that committee.  So with that just restated we support all
23   the changes that are proposed here today.  
24                  MR. BIARD:  Thank you.  Any questions?  Thank
25   you, Tom.  Stephen Fenoglio, you're up next. 
0006
 1                  MR. FENOGLIO:  Thank you.  Appreciate the
 2   opportunity to be here.  I want to first read a statement
 3   from Kimberly Kiplin who is former General Counsel of the
 4   Lottery Commission whose husband died unexpectedly and cannot
 5   be here.  She represents the Veterans of Foreign Wars Texas
 6   and it is the oldest Major Veterans Service Organization in
 7   the United States.  
 8                  The mission of the VFW is to support the
 9   veterans and their families.  The 2.4-million members of the
10   VFW and its Auxiliaries are located in 8,500 VFW Posts around
11   the world.  While the VFW is a national organization, the
12   work of the VFW is conducted through its local posts and
13   programs to support veteran service members and their
14   families.  
15                  In Texas, the VFW has 330 local posts that
16   serve the mission of the VFW.  Of those 330 local posts, over
17   70 Posts conduct charitable bingo.  The Texas VFW supports
18   the proposed amendments to §§402.102, 402.300 and 402.402. 
19   The VFW looks forward to working with the Commission on this
20   matter and other matters that impact the VFW's bingo
21   charitable fundraising activities and I provided a written
22   copy of that statement. 
23                  I'm also appearing on behalf of the Bingo
24   Interest Group who enthusiastically supports the three rule
25   amendment proposals.  Bingo Interest Group is a group of
0007
 1   commercial lessors engaged in the for profit activities of
 2   organizing and leasing space for charitable bingo.  Their
 3   members are in the Dallas/Fort Worth area, Austin, Houston,
 4   East Texas and West Texas and South Texas, and they have
 5   worked with us to support these rule amendments. 
 6                  Finally, I would be remiss if I didn't point
 7   out that the two bingo halls in Texarkana, Super Bingo and
 8   Super Bingo II, enthusiastically support the rule amendments
 9   and especially the amendment concerning worker registry. 
10   They regularly employ individuals from Arkansas and Louisiana
11   and the out of state worker registry approval process has
12   been difficult to obtain approval within the required period
13   of time, so we appreciate the -- they appreciate the extended
14   period found in the rule and also the elimination of
15   identifying a particular hall that you have to identify for a
16   temporary registry.
17                  Coincidentally, I'm also a Board Member of TCA
18   and its members do, as Mr. Stewart stated, enthusiastically
19   support the rule amendments.  And we'll be happy to work with
20   the Commission on -- assuming the Commission chooses to adopt
21   the rule amendments.  A number of our members at TCA have
22   expressed an interest in putting their name out for
23   submission as a BAC member, so we think you'll have a robust
24   group of individuals -- or the Commission will have a group
25   of robust individuals to consider for appointment to the BAC.
0008
 1                  Be happy to answer any questions.  
 2                  MR. BIARD:  Any questions?  Is there anyone
 3   else present who would like to comment on any of these three
 4   rules?  Okay.  If there are no more witnesses, I'd like to
 5   thank everyone for attending today's hearing, for offering
 6   comments, and we will include Ms. Kiplin's statement into the
 7   record, thank you, and we send Kim our condolences.  
 8                  So if there are no more witnesses, then we
 9   will conclude this hearing.  The time is -- I can't see --
10   10:10, and we stand adjourned.  Thank you.
11                  The public comment session is closed.
12             (Adjourned and concluded at 10:10 a.m.)
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0009
 1                        C E R T I F I C A T E
 2   STATE OF TEXAS      )
 3   COUNTY OF HARRIS    )
 4             I, Kimberly C. McCright, Certified Vendor and
 5   Notary in and for the State of Texas, do hereby certify that
 6   the above-mentioned matter occurred as hereinbefore set out.
 7             I FURTHER CERTIFY THAT the proceedings of such were
 8   reported by me or under my supervision, later reduced to
 9   typewritten form under my supervision and control and that
10   the foregoing pages are a full, true and correct
11   transcription of the original notes.
12             IN WITNESS WHEREOF, I have hereunto set my hand and
13   seal this 14th day of May, 2018.
14   
15                       /s/ Kimberly C. McCright 
                          Kimberly C. McCright
16                       Certified Vendor and Notary Public
17                       Verbatim Reporting & Transcription, LLC
                          1322 Space Park Drive, Suite C165
18                       Houston, Texas 77058
                          281.724.8600
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