Texas 2009 - 81st Regular

Texas Senate Bill SB2104 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R11666 YDB-D
2	2	By: Uresti S.B. No. 2104
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the operation of video lottery games by licensed
8	8	operators for certain veterans organizations; providing penalties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle A, Title 13, Occupations Code, is
11	11	amended by adding Chapter 2004 to read as follows:
12	12	CHAPTER 2004. VIDEO LOTTERY TO SUPPORT VETERANS
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 2004.001. DEFINITIONS. In this chapter:
15	15	(1) "Commission" means the Texas Lottery Commission.
16	16	(2) "Qualified veterans organization" means:
17	17	(A) the organization chartered by Congress known
18	18	as the Veterans of Foreign Wars; and
19	19	(B) the organization chartered by Congress known
20	20	as the American Legion.
21	21	(3) "Video lottery" means the conduct of video lottery
22	22	games as authorized under this chapter.
23	23	(4) "Video lottery distributor" means a person
24	24	licensed under this chapter to provide video lottery equipment and
25	25	services to a video lottery vendor or a qualified veterans
26	26	organization.
27	27	(5) "Video lottery game" means any game of chance,
28	28	including a game of chance in which the outcome may be partially
29	29	determined by skill or ability, that for consideration may be
30	30	played by an individual on an electronic machine or video display.
31	31	(6) "Video lottery vendor" means a person licensed
32	32	under this chapter to conduct video lottery games for a qualified
33	33	veterans organization.
34	34	Sec. 2004.002. APPLICABILITY OF OTHER LAW. All shipments of
35	35	video lottery machines or other gaming devices into, out of, or
36	36	within this state authorized under this chapter are legal shipments
37	37	of the devices and are exempt from the provisions of 15 U.S.C.
38	38	Sections 1171-1178 prohibiting the transportation of gambling
39	39	devices.
40	40	[Sections 2004.003-2004.050 reserved for expansion]
41	41	SUBCHAPTER B. ADMINISTRATION
42	42	Sec. 2004.051. POWERS AND DUTIES OF COMMISSION AND
43	43	EXECUTIVE DIRECTOR. (a) The commission and the executive director
44	44	of the commission have broad authority and shall exercise strict
45	45	control and close supervision over video lottery games operated in
46	46	this state to promote and ensure the integrity, security, honesty,
47	47	and fairness of video lottery.
48	48	(b) The executive director may contract with or employ a
49	49	person to perform a function, activity, or service in connection
50	50	with video lottery as prescribed by the executive director.
51	51	Sec. 2004.052. RULES. The commission shall adopt the rules
52	52	necessary to administer this chapter.
53	53	Sec. 2004.053. ANNUAL REPORT. The commission shall file an
54	54	annual report with the governor, the comptroller, and the
55	55	legislature regarding the collection and disposition of video
56	56	lottery revenue for the state fiscal year preceding the report. The
57	57	report must be in the form and reported in the time provided by the
58	58	General Appropriations Act.
59	59	Sec. 2004.054. INVESTIGATIONS. In addition to other state
60	60	or local officials, the attorney general may investigate a
61	61	violation or alleged violation of:
62	62	(1) this chapter by any person; or
63	63	(2) the penal laws of this state in connection with the
64	64	regulation of video lottery by the commission or its personnel or
65	65	the conduct of video lottery or related activity by a qualified
66	66	veterans organization, video lottery vendor, or video lottery
67	67	distributor.
68	68	[Sections 2004.055-2004.100 reserved for expansion]
69	69	SUBCHAPTER C. LICENSE AND CONTRACT REQUIREMENTS
70	70	Sec. 2004.101. LICENSE REQUIREMENTS. (a) A person may not
71	71	conduct video lottery in this state unless the person is a video
72	72	lottery vendor that conducts video lottery games on the premises of
73	73	a qualified veterans organization.
74	74	(b) A person may not provide video lottery equipment or
75	75	services for use in this state unless the person holds a license as
76	76	a video lottery distributor.
77	77	(c) A person may not display a video lottery machine for
78	78	operation in this state unless the machine is registered as
79	79	required by this chapter.
80	80	Sec. 2004.102. VIDEO LOTTERY VENDOR LICENSE. (a) On
81	81	application, the commission shall issue a video lottery vendor
82	82	license to a person who is not ineligible to hold the license under
83	83	another provision of this chapter or a commission rule.
84	84	(b) The commission by rule shall establish the minimum
85	85	qualifications for a video lottery vendor license to promote a
86	86	competitive market for video lottery games, consistent with the
87	87	health and safety of the public.
88	88	Sec. 2004.103. VIDEO LOTTERY DISTRIBUTOR LICENSE. (a) The
89	89	commission shall issue a video lottery distributor license to an
90	90	eligible person with the resources and experience required to
91	91	provide video lottery equipment and services to video lottery
92	92	vendors conducting video lottery under this chapter.
93	93	(b) The commission by rule shall establish the minimum
94	94	qualifications for a video lottery distributor license to promote a
95	95	competitive market for video lottery goods and services and the
96	96	availability of reliable video lottery equipment and services,
97	97	consistent with the health and safety of the public.
98	98	Sec. 2004.104. VIDEO LOTTERY MACHINE REGISTRATION. The
99	99	commission by rule shall establish procedures for a qualified
100	100	veterans organization or a video lottery vendor to register each
101	101	video lottery machine that the organization or vendor displays for
102	102	operation in this state.
103	103	Sec. 2004.105. DISCIPLINARY ACTION. (a) The commission
104	104	may refuse to issue a license or may revoke, suspend, or refuse to
105	105	renew a license or may reprimand a license holder for a violation of
106	106	this chapter, other state law, or a rule of the commission.
107	107	(b) If the commission proposes to take action against a
108	108	license holder or applicant under Subsection (a), the license
109	109	holder or applicant is entitled to notice and a hearing.
110	110	(c) The commission may place on probation subject to
111	111	reasonable conditions a person whose license is suspended.
112	112	(d) The commission may summarily suspend a license issued
113	113	under this chapter in the manner prescribed by Section 466.160,
114	114	Government Code, if the commission determines that the action is
115	115	necessary to maintain the integrity, security, or fairness of video
116	116	lottery.
117	117	(e) The commission by rule shall develop a system for
118	118	monitoring a license holder's compliance with this chapter.
119	119	[Sections 2004.106-2004.150 reserved for expansion]
120	120	SUBCHAPTER D. REVENUE
121	121	Sec. 2004.151. STATE SHARE OF REVENUE FROM VIDEO LOTTERY.
122	122	(a) At the times and in the manner prescribed by commission rule, a
123	123	qualified veterans organization shall pay to the commission a
124	124	percentage determined by the commission of the net terminal income
125	125	derived from video lottery games operated by a video lottery vendor
126	126	for the organization.
127	127	(b) The remainder of the net terminal income is the property
128	128	of the qualified veterans organization. The organization may use
129	129	that income:
130	130	(1) to support the organization, its programs, and any
131	131	auxiliary organizations; or
132	132	(2) to cover costs associated with the conduct of
133	133	video lottery, including salaries for employees of the organization
134	134	who conduct video lottery, and costs for equipment and services
135	135	provided by a video lottery vendor or video lottery distributor.
136	136	Sec. 2004.152. STATE VIDEO LOTTERY ACCOUNT; VETERANS MENTAL
137	137	HEALTH ASSISTANCE ACCOUNT. (a) The state video lottery account is
138	138	a special account in the general revenue fund. The account consists
139	139	of all revenue received by the commission from video lottery, fees
140	140	received under this chapter, and all money credited to the account
141	141	from any other fund or source under law.
142	142	(b) Money in the state video lottery account may be used to
143	143	pay the costs incurred by the commission in the operation and
144	144	administration of video lottery. The remainder of the account
145	145	shall be deposited to the credit of the veterans mental health
146	146	assistance account, a special account in the general revenue fund.
147	147	Money in the account may only be used to provide mental health
148	148	services or other assistance for veterans identified by the Texas
149	149	Veterans Commission, in consultation with the advisory committee
150	150	created under Section 434.020, Government Code, and other agencies
151	151	as required under that section.
152	152	[Sections 2004.153-2004.200 reserved for expansion]
153	153	SUBCHAPTER E. OFFENSES; PENALTIES
154	154	Sec. 2004.201. MANIPULATION OR TAMPERING. (a) A person
155	155	commits an offense if the person intentionally or knowingly
156	156	manipulates the outcome of a video lottery game, the amount of a
157	157	video lottery game prize, or the operation of a video lottery
158	158	machine by physical, electronic, or other means, other than in
159	159	accordance with commission rules.
160	160	(b) An offense under this section is a felony of the third
161	161	degree.
162	162	Sec. 2004.202. SALE OF VIDEO LOTTERY GAME TO PERSON YOUNGER
163	163	THAN 18 YEARS OF AGE. (a) A person commits an offense if the person
164	164	intentionally or knowingly:
165	165	(1) sells or offers to sell a play of a video lottery
166	166	game to an individual the person knows is younger than 18 years of
167	167	age or permits the individual to purchase a play of a video lottery
168	168	game; or
169	169	(2) pays money or issues a video credit slip or other
170	170	winnings for a play of a video lottery game to an individual the
171	171	person knows is younger than 18 years of age.
172	172	(b) An individual who is younger than 18 years of age
173	173	commits an offense if the individual:
174	174	(1) purchases a play of a video lottery game;
175	175	(2) accepts money, a video credit slip, or other
176	176	payment of winnings for a play of a video lottery game; or
177	177	(3) falsely represents the individual to be 18 years
178	178	of age or older by displaying evidence of age that is false or
179	179	fraudulent or misrepresents in any way the individual's age in
180	180	order to purchase a play of a video lottery game.
181	181	(c) An offense under Subsection (a) is a Class B
182	182	misdemeanor.
183	183	(d) An offense under Subsection (b) is a misdemeanor
184	184	punishable by a fine not to exceed $250.
185	185	Sec. 2004.203. ADMINISTRATIVE PENALTY. The commission may
186	186	impose an administrative penalty against a person licensed under
187	187	this chapter who violates this chapter or a rule or order adopted
188	188	under this chapter.
189	189	Sec. 2004.204. CIVIL PENALTY. (a) A person who violates
190	190	this chapter or a rule adopted by the commission under this chapter
191	191	is liable to the state for a civil penalty not to exceed $5,000 for
192	192	each day of violation.
193	193	(b) At the request of the commission, the attorney general
194	194	shall bring an action to recover a civil penalty authorized by this
195	195	section. The attorney general may recover reasonable expenses,
196	196	including attorney's fees, incurred in recovering the civil
197	197	penalty.
198	198	SECTION 2. Subchapter A, Chapter 434, Government Code, is
199	199	amended by adding Section 434.020 to read as follows:
200	200	Sec. 434.020. VETERANS ASSISTANCE ADVISORY COMMITTEE;
201	201	IDENTIFICATION OF VETERANS REQUIRING ASSISTANCE. (a) The Texas
202	202	Veterans Commission shall establish a veterans assistance advisory
203	203	committee. The advisory committee, in consultation with the
204	204	Department of State Health Services and local mental health
205	205	authorities, shall assist the commission in identifying veterans in
206	206	this state who require mental health services and other assistance.
207	207	(b) Chapter 2110 does not apply to the advisory committee
208	208	created under this section.
209	209	SECTION 3. Section 466.024(b), Government Code, is amended
210	210	to read as follows:
211	211	(b) The commission shall adopt rules prohibiting the
212	212	operation of any game using a video lottery machine or machine,
213	213	except in accordance with Chapter 2004, Occupations Code.
214	214	SECTION 4. Section 47.02(c), Penal Code, is amended to read
215	215	as follows:
216	216	(c) It is a defense to prosecution under this section that
217	217	the actor reasonably believed that the conduct:
218	218	(1) was permitted under Chapter 2001, Occupations
219	219	Code;
220	220	(2) was permitted under Chapter 2002, Occupations
221	221	Code;
222	222	(3) was permitted under Chapter 2004, Occupations
223	223	Code;
224	224	(4) consisted entirely of participation in the state
225	225	lottery authorized by [the State Lottery Act (]Chapter 466,
226	226	Government Code[)];
227	227	(5) [(4)] was permitted under the Texas Racing Act
228	228	(Article 179e, Vernon's Texas Civil Statutes); or
229	229	(6) [(5)] consisted entirely of participation in a
230	230	drawing for the opportunity to participate in a hunting, fishing,
231	231	or other recreational event conducted by the Parks and Wildlife
232	232	Department.
233	233	SECTION 5. Section 47.09, Penal Code, is amended by
234	234	amending Subsection (a) and adding Subsection (c) to read as
235	235	follows:
236	236	(a) It is a defense to prosecution under this chapter that
237	237	the conduct:
238	238	(1) was authorized under:
239	239	(A) Chapter 2001, Occupations Code;
240	240	(B) Chapter 2002, Occupations Code; [or]
241	241	(C) Chapter 2004, Occupations Code; or
242	242	(D) the Texas Racing Act (Article 179e, Vernon's
243	243	Texas Civil Statutes);
244	244	(2) consisted entirely of participation in the state
245	245	lottery authorized by Chapter 466, Government Code; or
246	246	(3) was a necessary incident to the operation of the
247	247	state lottery and was directly or indirectly authorized by:
248	248	(A) Chapter 466, Government Code;
249	249	(B) the lottery division of the Texas Lottery
250	250	Commission;
251	251	(C) the Texas Lottery Commission; or
252	252	(D) the director of the lottery division of the
253	253	Texas Lottery Commission.
254	254	(c) Subsection (a)(1)(C) applies to a person manufacturing,
255	255	possessing, or operating a gambling device under a license or other
256	256	authorization of the Texas Lottery Commission under Chapter 2004,
257	257	Occupations Code.
258	258	SECTION 6. Chapter 47, Penal Code, is amended by adding
259	259	Section 47.095 to read as follows:
260	260	Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
261	261	a defense to prosecution under this chapter that a person sells,
262	262	leases, transports, possesses, stores, or manufactures a gambling
263	263	device with the authorization of the Texas Lottery Commission under
264	264	Chapter 2004, Occupations Code, for transportation in interstate or
265	265	foreign commerce.
266	266	SECTION 7. As soon as practicable after the effective date
267	267	of this Act, the Texas Lottery Commission shall adopt the rules
268	268	necessary to implement Chapter 2004, Occupations Code, as added by
269	269	this Act.
270	270	SECTION 8. The change in law made by this Act applies only
271	271	to an offense committed on or after the effective date of this Act.
272	272	An offense committed before the effective date of this Act is
273	273	covered by the law in effect when the offense was committed, and the
274	274	former law is continued in effect for that purpose. For purposes of
275	275	this section, an offense was committed before the effective date of
276	276	this Act if any element of the offense was committed before that
277	277	date.
278	278	SECTION 9. This Act takes effect immediately if it receives
279	279	a vote of two-thirds of all the members elected to each house, as
280	280	provided by Section 39, Article III, Texas Constitution. If this
281	281	Act does not receive the vote necessary for immediate effect, this
282	282	Act takes effect September 1, 2009.