§ 2001.407 — EQUIPMENT AND SUPPLY TRANSACTIONS.

Texas § 2001.407

• Jurisdiction: Texas
• Code OC: Occupations Code

Text

Sec. 2001.407. EQUIPMENT AND SUPPLY TRANSACTIONS. (a) A licensed manufacturer may furnish, by sale or otherwise, bingo equipment or supplies to a licensed distributor. A licensed manufacturer may not furnish, by sale or otherwise, bingo equipment or supplies to a person other than a licensed distributor.
(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 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.
(c) Except as provided by Subsection (c-1), a licensed distributor may not receive by purchase or otherwise bingo equipment or supplies from a person other than a licensed manufacturer or another licensed distributor.
(c-1) A licensed distributor may receive bingo equipment or supplies from a licensed authorized organization if:
(1) the distributor delivered the equipment or supplies to the organization; and
(2) the equipment or supplies were:
(A) defective;
(B) not ordered by the organization; or
(C) delivered in a quantity that exceeds the quantity the organization ordered.
(c-2) A licensed authorized organization that returns bingo equipment or supplies to the licensed distributor as provided by Subsection (c-1) shall:
(1) maintain a record specifying for each returned equipment or supply:
(A) a reason for the return from the reasons listed in Subsection (c-1)(2); and
(B) the quantity returned; and
(2) provide a copy of the record to the distributor.
(c-3) A licensed distributor that receives returned equipment or supplies from a licensed authorized organization as provided by Subsection (c-1) shall:
(1) maintain a record showing receipt of the returned equipment or supplies; and
(2) provide a copy of the record to the organization.
(c-4) A licensed authorized organization may transfer a card-minding device from the premises of the organization to the premises of another licensed authorized organization if each licensed authorized organization agrees to the transfer.
(d) A licensed authorized organization may lease or purchase electronic or mechanical card-minding devices, pull-tab dispensers, bingo machines, consoles, blowers, and flash boards directly from a licensed distributor.
(e) Except for a purchase made by a licensed authorized organization under Subsection (f), a licensed authorized organization or a person authorized to conduct bingo under Section 2001.551 (b)(3) or (4) may not obtain by purchase or otherwise bingo equipment or supplies from a person other than 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 to another licensed authorized organization.

Legislative History

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999. Amended by: Acts 2009, 81st Leg., R.S., Ch. 636 (H.B. 1474 ), Sec. 26, eff. October 1, 2009. Acts 2025, 89th Leg., R.S., Ch. 1160 (S.B. 3070 ), Sec. 70, eff. June 20, 2025.