1 | 1 | | 84R14311 YDB-D |
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2 | 2 | | By: Deshotel H.B. No. 3839 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the operation of casino gaming in this state by licensed |
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8 | 8 | | persons in certain areas of this state to provide additional money |
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9 | 9 | | for residual windstorm insurance coverage in the coastal areas; |
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10 | 10 | | requiring occupational licenses or certifications; creating |
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11 | 11 | | criminal offenses and providing other penalties; authorizing fees; |
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12 | 12 | | imposing a tax. |
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13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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14 | 14 | | SECTION 1. Subtitle A, Title 13, Occupations Code, is |
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15 | 15 | | amended by adding Chapter 2004 to read as follows: |
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16 | 16 | | CHAPTER 2004. CASINO GAMING |
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17 | 17 | | SUBCHAPTER A. GENERAL PROVISIONS |
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18 | 18 | | Sec. 2004.001. DEFINITIONS. In this chapter: |
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19 | 19 | | (1) "Casino game" means any game of chance, including |
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20 | 20 | | a game of chance in which the outcome may be partially determined by |
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21 | 21 | | skill or ability, that involves the making of a bet, as defined by |
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22 | 22 | | Section 47.01, Penal Code. |
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23 | 23 | | (2) "Casino gaming" means the conduct of casino games |
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24 | 24 | | authorized under this chapter. |
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25 | 25 | | (3) "Casino gaming manager" means a person certified |
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26 | 26 | | under this chapter to manage casino gaming operations at a location |
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27 | 27 | | authorized under this chapter to conduct casino gaming in this |
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28 | 28 | | state. |
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29 | 29 | | (4) "Commission" means the Texas Lottery Commission. |
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30 | 30 | | (5) "Executive director" means the executive director |
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31 | 31 | | of the commission. |
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32 | 32 | | (6) "Gaming vendor" means a person licensed under this |
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33 | 33 | | chapter to provide, maintain, manufacture, distribute, sell, or |
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34 | 34 | | lease casino gaming equipment and services to a person authorized |
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35 | 35 | | to operate casino gaming in this state. |
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36 | 36 | | Sec. 2004.002. APPLICABILITY OF FEDERAL LAW. All shipments |
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37 | 37 | | of casino gaming equipment and devices into, out of, or within this |
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38 | 38 | | state in connection with casino gaming are legal shipments of the |
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39 | 39 | | devices and are exempt from the provisions of 15 U.S.C. Sections |
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40 | 40 | | 1171-1178 prohibiting the transportation of gambling devices. |
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41 | 41 | | SUBCHAPTER B. ADMINISTRATION |
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42 | 42 | | Sec. 2004.051. POWERS AND DUTIES OF COMMISSION AND |
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43 | 43 | | EXECUTIVE DIRECTOR. (a) The commission and executive director |
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44 | 44 | | have broad authority and shall exercise strict control over and |
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45 | 45 | | closely monitor casino gaming in this state to protect the public |
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46 | 46 | | health, welfare, and safety and ensure integrity, security, |
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47 | 47 | | honesty, and fairness in the conduct and administration of casino |
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48 | 48 | | gaming. |
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49 | 49 | | (b) The executive director may contract with or employ a |
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50 | 50 | | person to perform a function, activity, or service in connection |
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51 | 51 | | with casino gaming as prescribed by the executive director. |
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52 | 52 | | (c) The commission shall as necessary to protect the public |
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53 | 53 | | health and safety: |
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54 | 54 | | (1) monitor casino gaming operations on a continuing |
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55 | 55 | | basis; |
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56 | 56 | | (2) establish standards for: |
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57 | 57 | | (A) the operation of casino gaming; |
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58 | 58 | | (B) the provision of casino gaming equipment and |
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59 | 59 | | services; and |
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60 | 60 | | (C) the establishment and maintenance of casino |
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61 | 61 | | gaming facilities; and |
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62 | 62 | | (3) inspect and examine all gaming facilities, |
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63 | 63 | | equipment, services, records, and operations to ensure compliance |
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64 | 64 | | with the standards established by the commission. |
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65 | 65 | | Sec. 2004.052. RULES AND PROCEDURES. (a) The commission |
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66 | 66 | | shall adopt all rules necessary to supervise casino gaming in this |
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67 | 67 | | state, administer this chapter, and ensure the security of casino |
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68 | 68 | | gaming operations in this state. |
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69 | 69 | | (b) The commission shall establish procedures for the |
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70 | 70 | | approval, monitoring, and inspection of casino gaming operations as |
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71 | 71 | | necessary to protect the public health, welfare, and safety and the |
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72 | 72 | | integrity of this state and to prevent financial loss to this state. |
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73 | 73 | | Sec. 2004.053. FEES. The commission shall establish the |
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74 | 74 | | application, certification, and certification renewal fees for |
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75 | 75 | | each type of certification issued under this chapter in amounts |
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76 | 76 | | reasonable and necessary to cover the state's costs incurred in the |
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77 | 77 | | administration of this chapter and the regulation of casino gaming. |
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78 | 78 | | Sec. 2004.054. ANNUAL REPORT. The commission shall make an |
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79 | 79 | | annual report to the governor, the comptroller, and the legislature |
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80 | 80 | | that provides a summary of casino gaming revenues and expenses for |
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81 | 81 | | the state fiscal year preceding the report. The report must be in |
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82 | 82 | | the form and reported at the time provided by the General |
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83 | 83 | | Appropriations Act. |
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84 | 84 | | Sec. 2004.055. INVESTIGATIONS. The commission may |
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85 | 85 | | investigate a violation or alleged violation of: |
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86 | 86 | | (1) this chapter by any person; or |
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87 | 87 | | (2) the penal laws of this state in connection with the |
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88 | 88 | | administration of this chapter, the regulation of casino gaming, or |
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89 | 89 | | the conduct of casino gaming by a person authorized to operate |
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90 | 90 | | casino gaming under this chapter. |
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91 | 91 | | SUBCHAPTER C. CASINO GAMING |
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92 | 92 | | Sec. 2004.101. CASINO GAMING OPERATOR LICENSE. A person |
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93 | 93 | | may not conduct casino gaming in this state unless the person holds |
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94 | 94 | | a casino gaming operator license issued under this chapter. |
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95 | 95 | | Sec. 2004.102. ALLOCATION OF CASINO GAMING OPERATOR |
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96 | 96 | | LICENSES. The commission shall award not more than nine casino |
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97 | 97 | | gaming operator licenses to applicants as follows: |
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98 | 98 | | (1) one license in each of the counties of Galveston, |
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99 | 99 | | Jefferson, and Nueces, provided the license issued in Jefferson |
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100 | 100 | | County is for a location on a dredge spoil island at least 18 miles |
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101 | 101 | | in length that is accessible by a public road with one or more |
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102 | 102 | | bridges; |
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103 | 103 | | (2) three licenses in Bexar and Harris Counties to |
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104 | 104 | | persons who are licensed to conduct pari-mutuel wagering on horse |
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105 | 105 | | and greyhound races in one of those counties, provided not more than |
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106 | 106 | | two licenses are awarded in either county; and |
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107 | 107 | | (3) one license in each of three first tier coastal or |
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108 | 108 | | second tier coastal counties, as those terms are defined by Section |
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109 | 109 | | 2210.003, Insurance Code, to persons who are licensed to conduct |
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110 | 110 | | pari-mutuel wagering on horse and greyhound races in one of those |
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111 | 111 | | counties. |
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112 | 112 | | Sec. 2004.103. CERTIFICATES REQUIRED. (a) A person may not |
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113 | 113 | | provide, maintain, manufacture, distribute, sell, or lease casino |
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114 | 114 | | games or casino gaming equipment or services for use in this state |
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115 | 115 | | unless the person holds a gaming vendor certificate issued under |
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116 | 116 | | this chapter. |
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117 | 117 | | (b) A person may not act as a casino gaming manager for a |
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118 | 118 | | gaming facility in this state unless the person holds a casino |
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119 | 119 | | gaming manager certificate issued under this chapter. |
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120 | 120 | | (c) Unless the person holds the required gaming employee |
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121 | 121 | | certificate, a person may not act as a gaming employee in any gaming |
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122 | 122 | | employee position for which the commission by rule requires a |
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123 | 123 | | person to hold a certificate issued under this chapter. |
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124 | 124 | | Sec. 2004.104. GAMING VENDOR CERTIFICATE. (a) The |
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125 | 125 | | commission shall issue a gaming vendor certificate to an eligible |
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126 | 126 | | person with the resources and experience required to provide casino |
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127 | 127 | | games or casino gaming equipment and services for casino gaming |
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128 | 128 | | operations authorized under this chapter. |
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129 | 129 | | (b) The commission by rule shall establish the minimum |
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130 | 130 | | qualifications for a gaming vendor certificate to ensure a |
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131 | 131 | | competitive market for casino gaming equipment and services and the |
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132 | 132 | | availability of reliable casino gaming equipment and services, |
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133 | 133 | | consistent with the health and safety of the public. |
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134 | 134 | | Sec. 2004.105. CASINO GAMING MANAGER CERTIFICATE. (a) The |
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135 | 135 | | commission shall issue a casino gaming manager certificate to an |
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136 | 136 | | eligible person with the qualifications and experience required to |
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137 | 137 | | manage casino gaming operations under this chapter. |
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138 | 138 | | (b) The commission by rule shall establish the minimum |
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139 | 139 | | qualifications for a casino gaming manager certificate necessary to |
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140 | 140 | | protect the health and safety of the public. |
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141 | 141 | | Sec. 2004.106. GAMING EMPLOYEE CERTIFICATE. The commission |
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142 | 142 | | by rule and as necessary to protect the health and safety of the |
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143 | 143 | | public may establish other gaming employee positions that require a |
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144 | 144 | | certificate issued under this chapter to act in those positions. |
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145 | 145 | | Sec. 2004.107. BACKGROUND INVESTIGATIONS. Before issuing a |
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146 | 146 | | certificate to a person under this chapter, the commission shall |
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147 | 147 | | conduct a background investigation that includes obtaining |
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148 | 148 | | criminal history record information of the person seeking the |
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149 | 149 | | certificate to assist the commission in determining the person's |
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150 | 150 | | eligibility or suitability for the certificate. |
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151 | 151 | | SUBCHAPTER D. REVENUE |
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152 | 152 | | Sec. 2004.151. STATE CASINO GAMING ACCOUNT. The state |
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153 | 153 | | casino gaming account is a special account in the general revenue |
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154 | 154 | | fund. The account consists of all revenue received by the |
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155 | 155 | | commission from casino gaming, fees received under this chapter, |
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156 | 156 | | and all money credited to the account from any other fund or source |
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157 | 157 | | under law. |
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158 | 158 | | Sec. 2004.152. CASINO GAMING TAX. (a) A casino gaming tax |
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159 | 159 | | in an amount equal to 18 percent of the gross gaming revenue is |
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160 | 160 | | imposed on each holder of a casino gaming operator's license. |
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161 | 161 | | (b) The comptroller shall allocate the revenue from the tax |
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162 | 162 | | imposed under this section as follows: |
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163 | 163 | | (1) the comptroller shall transfer to the catastrophe |
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164 | 164 | | reserve trust fund established under Subchapter J, Chapter 2210, |
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165 | 165 | | Insurance Code, in an amount sufficient to ensure that the premium |
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166 | 166 | | and other revenue of the Texas Windstorm Insurance Association |
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167 | 167 | | together with the money allocated under this section equals the |
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168 | 168 | | insured losses and operating expenses of the association each state |
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169 | 169 | | fiscal year; and |
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170 | 170 | | (2) after making a transfer as required by Subdivision |
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171 | 171 | | (1), the comptroller shall transfer the remainder of the tax |
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172 | 172 | | revenue to the general revenue fund. |
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173 | 173 | | (c) The comptroller by rule shall adopt a schedule for the |
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174 | 174 | | collection of the tax imposed under this section and the transfer of |
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175 | 175 | | tax revenue under Subsection (b). |
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176 | 176 | | (d) Title 2, Tax Code, applies to the tax imposed under this |
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177 | 177 | | section. |
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178 | 178 | | SUBCHAPTER E. OFFENSES; PENALTIES |
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179 | 179 | | Sec. 2004.201. MANIPULATION OR TAMPERING. (a) A person |
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180 | 180 | | commits an offense if the person intentionally or knowingly |
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181 | 181 | | manipulates the outcome of a casino game, the amount of a casino |
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182 | 182 | | game prize, or the operation of a casino gaming device by physical, |
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183 | 183 | | electronic, or other means, other than in accordance with |
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184 | 184 | | commission rules. |
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185 | 185 | | (b) An offense under this section is a felony of the third |
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186 | 186 | | degree. |
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187 | 187 | | Sec. 2004.202. SALE OF CASINO GAME TO PERSON YOUNGER THAN 18 |
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188 | 188 | | YEARS OF AGE. (a) A casino gaming manager or an employee or agent |
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189 | 189 | | of a casino gaming manager commits an offense if the person |
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190 | 190 | | intentionally or knowingly: |
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191 | 191 | | (1) sells or offers to sell a play of a casino game to |
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192 | 192 | | an individual the person knows is younger than 18 years of age or |
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193 | 193 | | permits the individual to purchase a play of a casino game; or |
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194 | 194 | | (2) pays money or issues a credit slip or other |
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195 | 195 | | winnings for a play of a casino game to an individual the person |
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196 | 196 | | knows is younger than 18 years of age. |
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197 | 197 | | (b) An individual who is younger than 18 years of age |
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198 | 198 | | commits an offense if the individual: |
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199 | 199 | | (1) purchases a play of a casino game; |
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200 | 200 | | (2) accepts money, a credit slip, or other payment of |
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201 | 201 | | winnings for play of a casino game; or |
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202 | 202 | | (3) falsely represents the individual to be 18 years |
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203 | 203 | | of age or older by displaying evidence of age that is false or |
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204 | 204 | | fraudulent or misrepresents in any way the individual's age in |
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205 | 205 | | order to purchase a play of a casino game. |
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206 | 206 | | (c) An offense under Subsection (a) is a Class B |
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207 | 207 | | misdemeanor. |
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208 | 208 | | (d) An offense under Subsection (b) is a misdemeanor |
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209 | 209 | | punishable by a fine not to exceed $250. |
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210 | 210 | | Sec. 2004.203. DISCIPLINARY ACTION. (a) The commission |
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211 | 211 | | may refuse to issue a license or certificate or may revoke, suspend, |
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212 | 212 | | or refuse to renew a license or certificate or may reprimand a |
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213 | 213 | | license or certificate holder for a violation of this chapter, |
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214 | 214 | | other state law, or a rule of the commission. |
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215 | 215 | | (b) If the commission proposes to take action against a |
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216 | 216 | | license or certificate holder or applicant under Subsection (a), |
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217 | 217 | | the license or certificate holder or applicant is entitled to |
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218 | 218 | | notice and a hearing. |
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219 | 219 | | (c) The commission may place on probation subject to |
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220 | 220 | | reasonable conditions a person whose license or certificate is |
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221 | 221 | | suspended under this section. |
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222 | 222 | | (d) The commission may summarily suspend a license or |
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223 | 223 | | certificate issued under this chapter in the same manner as the |
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224 | 224 | | commission is authorized to suspend a license under Section |
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225 | 225 | | 466.160, Government Code, if the commission determines that the |
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226 | 226 | | action is necessary to maintain the integrity, security, or |
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227 | 227 | | fairness of casino gaming. |
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228 | 228 | | (e) The commission by rule shall develop a system for |
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229 | 229 | | monitoring a license or certificate holder's compliance with this |
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230 | 230 | | chapter. |
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231 | 231 | | Sec. 2004.204. ADMINISTRATIVE PENALTY. (a) The commission |
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232 | 232 | | may impose an administrative penalty against a person who violates |
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233 | 233 | | this chapter or a rule or order adopted by the commission under this |
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234 | 234 | | chapter in the same manner as the commission is authorized to impose |
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235 | 235 | | an administrative penalty under Subchapter M, Chapter 2001. |
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236 | 236 | | (b) The amount of the administrative penalty may not exceed |
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237 | 237 | | $1,000 for each violation. Each day a violation continues or occurs |
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238 | 238 | | may be considered a separate violation for purposes of imposing a |
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239 | 239 | | penalty. |
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240 | 240 | | (c) In determining the amount of the penalty, the executive |
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241 | 241 | | director shall consider: |
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242 | 242 | | (1) the seriousness of the violation, including the |
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243 | 243 | | nature, circumstances, extent, and gravity of the violation; |
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244 | 244 | | (2) the history of previous violations; |
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245 | 245 | | (3) the amount necessary to deter future violations; |
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246 | 246 | | (4) efforts to correct the violation; and |
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247 | 247 | | (5) any other matter that justice may require. |
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248 | 248 | | (d) The notice, hearing, and appeal for an administrative |
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249 | 249 | | penalty assessed under this section shall be provided or conducted |
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250 | 250 | | in the same manner as notice, hearing, and appeals are provided or |
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251 | 251 | | conducted under Subchapter M, Chapter 2001. |
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252 | 252 | | Sec. 2004.205. CIVIL PENALTY. (a) A person who violates |
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253 | 253 | | this chapter or a rule adopted by the commission under this chapter |
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254 | 254 | | is liable to the state for a civil penalty not to exceed $5,000 for |
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255 | 255 | | each day of violation. |
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256 | 256 | | (b) At the request of the commission, the attorney general |
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257 | 257 | | shall bring an action to recover a civil penalty authorized by this |
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258 | 258 | | section. The attorney general may recover reasonable expenses, |
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259 | 259 | | including attorney's fees, incurred in recovering the civil |
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260 | 260 | | penalty. |
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261 | 261 | | SECTION 2. Section 411.108(a-1), Government Code, is |
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262 | 262 | | amended to read as follows: |
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263 | 263 | | (a-1) The Texas Lottery Commission is entitled to obtain |
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264 | 264 | | from the department criminal history record information maintained |
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265 | 265 | | by the department that relates to: |
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266 | 266 | | (1) a person licensed under Chapter 2001, Occupations |
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267 | 267 | | Code, or described by Section 2001.3025, Occupations Code; or |
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268 | 268 | | (2) a person holding or applying for a license or |
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269 | 269 | | certificate under Chapter 2004, Occupations Code. |
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270 | 270 | | SECTION 3. Section 466.024(b), Government Code, is amended |
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271 | 271 | | to read as follows: |
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272 | 272 | | (b) The commission shall adopt rules prohibiting the |
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273 | 273 | | operation of any game using a video lottery machine or video gaming |
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274 | 274 | | machine, except in accordance with Chapter 2004, Occupations Code. |
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275 | 275 | | SECTION 4. Section 47.02(c), Penal Code, is amended to read |
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276 | 276 | | as follows: |
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277 | 277 | | (c) It is a defense to prosecution under this section that |
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278 | 278 | | the actor reasonably believed that the conduct: |
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279 | 279 | | (1) was permitted under Chapter 2001, Occupations |
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280 | 280 | | Code; |
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281 | 281 | | (2) was permitted under Chapter 2002, Occupations |
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282 | 282 | | Code; |
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283 | 283 | | (3) was permitted under Chapter 2004, Occupations |
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284 | 284 | | Code; |
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285 | 285 | | (4) consisted entirely of participation in the state |
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286 | 286 | | lottery authorized by [the State Lottery Act (]Chapter 466, |
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287 | 287 | | Government Code[)]; |
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288 | 288 | | (5) [(4)] was permitted under the Texas Racing Act |
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289 | 289 | | (Article 179e, Vernon's Texas Civil Statutes); or |
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290 | 290 | | (6) [(5)] consisted entirely of participation in a |
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291 | 291 | | drawing for the opportunity to participate in a hunting, fishing, |
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292 | 292 | | or other recreational event conducted by the Parks and Wildlife |
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293 | 293 | | Department. |
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294 | 294 | | SECTION 5. Section 47.09, Penal Code, is amended by |
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295 | 295 | | amending Subsection (a) and adding Subsection (c) to read as |
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296 | 296 | | follows: |
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297 | 297 | | (a) It is a defense to prosecution under this chapter that |
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298 | 298 | | the conduct: |
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299 | 299 | | (1) was authorized under: |
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300 | 300 | | (A) Chapter 2001, Occupations Code; |
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301 | 301 | | (B) Chapter 2002, Occupations Code; [or] |
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302 | 302 | | (C) Chapter 2004, Occupations Code; or |
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303 | 303 | | (D) the Texas Racing Act (Article 179e, Vernon's |
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304 | 304 | | Texas Civil Statutes); |
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305 | 305 | | (2) consisted entirely of participation in the state |
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306 | 306 | | lottery authorized by Chapter 466, Government Code; or |
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307 | 307 | | (3) was a necessary incident to the operation of the |
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308 | 308 | | state lottery and was directly or indirectly authorized by: |
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309 | 309 | | (A) Chapter 466, Government Code; |
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310 | 310 | | (B) the lottery division of the Texas Lottery |
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311 | 311 | | Commission; |
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312 | 312 | | (C) the Texas Lottery Commission; or |
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313 | 313 | | (D) the director of the lottery division of the |
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314 | 314 | | Texas Lottery Commission. |
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315 | 315 | | (c) Subsection (a)(1)(C) applies to a person manufacturing, |
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316 | 316 | | possessing, or operating a gambling device under a license or |
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317 | 317 | | certificate under Chapter 2004, Occupations Code. |
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318 | 318 | | SECTION 6. Chapter 47, Penal Code, is amended by adding |
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319 | 319 | | Section 47.095 to read as follows: |
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320 | 320 | | Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is |
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321 | 321 | | a defense to prosecution under this chapter that a person sells, |
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322 | 322 | | leases, transports, possesses, stores, or manufactures a gambling |
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323 | 323 | | device with the authorization of the Texas Lottery Commission under |
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324 | 324 | | Chapter 2004, Occupations Code, for transportation in interstate or |
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325 | 325 | | foreign commerce. |
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326 | 326 | | SECTION 7. (a) As soon as practicable after the effective |
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327 | 327 | | date of this Act, the Texas Lottery Commission shall adopt the rules |
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328 | 328 | | necessary to implement casino gaming in accordance with Chapter |
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329 | 329 | | 2004, Occupations Code, as added by this Act. |
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330 | 330 | | (b) The Texas Lottery Commission may adopt initial rules for |
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331 | 331 | | purposes of implementing casino gaming in accordance with Chapter |
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332 | 332 | | 2004, Occupations Code, as added by this Act, that expire not later |
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333 | 333 | | than May 1, 2016. Chapter 2001, Government Code, does not apply to |
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334 | 334 | | the adoption of those rules. This subsection expires June 1, 2016. |
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335 | 335 | | SECTION 8. This Act takes effect December 1, 2015, but only |
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336 | 336 | | if the constitutional amendment authorizing the legislature to |
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337 | 337 | | authorize the operation of casino games in certain areas of this |
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338 | 338 | | state by licensed persons to provide additional money for residual |
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339 | 339 | | windstorm insurance coverage in the coastal areas is approved by |
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340 | 340 | | the voters. If that amendment is not approved by the voters, this |
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341 | 341 | | Act has no effect. |
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