Texas 2015 - 84th Regular

Texas House Bill HB3839 Compare Versions

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11 84R14311 YDB-D
22 By: Deshotel H.B. No. 3839
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the operation of casino gaming in this state by licensed
88 persons in certain areas of this state to provide additional money
99 for residual windstorm insurance coverage in the coastal areas;
1010 requiring occupational licenses or certifications; creating
1111 criminal offenses and providing other penalties; authorizing fees;
1212 imposing a tax.
1313 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1414 SECTION 1. Subtitle A, Title 13, Occupations Code, is
1515 amended by adding Chapter 2004 to read as follows:
1616 CHAPTER 2004. CASINO GAMING
1717 SUBCHAPTER A. GENERAL PROVISIONS
1818 Sec. 2004.001. DEFINITIONS. In this chapter:
1919 (1) "Casino game" means any game of chance, including
2020 a game of chance in which the outcome may be partially determined by
2121 skill or ability, that involves the making of a bet, as defined by
2222 Section 47.01, Penal Code.
2323 (2) "Casino gaming" means the conduct of casino games
2424 authorized under this chapter.
2525 (3) "Casino gaming manager" means a person certified
2626 under this chapter to manage casino gaming operations at a location
2727 authorized under this chapter to conduct casino gaming in this
2828 state.
2929 (4) "Commission" means the Texas Lottery Commission.
3030 (5) "Executive director" means the executive director
3131 of the commission.
3232 (6) "Gaming vendor" means a person licensed under this
3333 chapter to provide, maintain, manufacture, distribute, sell, or
3434 lease casino gaming equipment and services to a person authorized
3535 to operate casino gaming in this state.
3636 Sec. 2004.002. APPLICABILITY OF FEDERAL LAW. All shipments
3737 of casino gaming equipment and devices into, out of, or within this
3838 state in connection with casino gaming are legal shipments of the
3939 devices and are exempt from the provisions of 15 U.S.C. Sections
4040 1171-1178 prohibiting the transportation of gambling devices.
4141 SUBCHAPTER B. ADMINISTRATION
4242 Sec. 2004.051. POWERS AND DUTIES OF COMMISSION AND
4343 EXECUTIVE DIRECTOR. (a) The commission and executive director
4444 have broad authority and shall exercise strict control over and
4545 closely monitor casino gaming in this state to protect the public
4646 health, welfare, and safety and ensure integrity, security,
4747 honesty, and fairness in the conduct and administration of casino
4848 gaming.
4949 (b) The executive director may contract with or employ a
5050 person to perform a function, activity, or service in connection
5151 with casino gaming as prescribed by the executive director.
5252 (c) The commission shall as necessary to protect the public
5353 health and safety:
5454 (1) monitor casino gaming operations on a continuing
5555 basis;
5656 (2) establish standards for:
5757 (A) the operation of casino gaming;
5858 (B) the provision of casino gaming equipment and
5959 services; and
6060 (C) the establishment and maintenance of casino
6161 gaming facilities; and
6262 (3) inspect and examine all gaming facilities,
6363 equipment, services, records, and operations to ensure compliance
6464 with the standards established by the commission.
6565 Sec. 2004.052. RULES AND PROCEDURES. (a) The commission
6666 shall adopt all rules necessary to supervise casino gaming in this
6767 state, administer this chapter, and ensure the security of casino
6868 gaming operations in this state.
6969 (b) The commission shall establish procedures for the
7070 approval, monitoring, and inspection of casino gaming operations as
7171 necessary to protect the public health, welfare, and safety and the
7272 integrity of this state and to prevent financial loss to this state.
7373 Sec. 2004.053. FEES. The commission shall establish the
7474 application, certification, and certification renewal fees for
7575 each type of certification issued under this chapter in amounts
7676 reasonable and necessary to cover the state's costs incurred in the
7777 administration of this chapter and the regulation of casino gaming.
7878 Sec. 2004.054. ANNUAL REPORT. The commission shall make an
7979 annual report to the governor, the comptroller, and the legislature
8080 that provides a summary of casino gaming revenues and expenses for
8181 the state fiscal year preceding the report. The report must be in
8282 the form and reported at the time provided by the General
8383 Appropriations Act.
8484 Sec. 2004.055. INVESTIGATIONS. The commission may
8585 investigate a violation or alleged violation of:
8686 (1) this chapter by any person; or
8787 (2) the penal laws of this state in connection with the
8888 administration of this chapter, the regulation of casino gaming, or
8989 the conduct of casino gaming by a person authorized to operate
9090 casino gaming under this chapter.
9191 SUBCHAPTER C. CASINO GAMING
9292 Sec. 2004.101. CASINO GAMING OPERATOR LICENSE. A person
9393 may not conduct casino gaming in this state unless the person holds
9494 a casino gaming operator license issued under this chapter.
9595 Sec. 2004.102. ALLOCATION OF CASINO GAMING OPERATOR
9696 LICENSES. The commission shall award not more than nine casino
9797 gaming operator licenses to applicants as follows:
9898 (1) one license in each of the counties of Galveston,
9999 Jefferson, and Nueces, provided the license issued in Jefferson
100100 County is for a location on a dredge spoil island at least 18 miles
101101 in length that is accessible by a public road with one or more
102102 bridges;
103103 (2) three licenses in Bexar and Harris Counties to
104104 persons who are licensed to conduct pari-mutuel wagering on horse
105105 and greyhound races in one of those counties, provided not more than
106106 two licenses are awarded in either county; and
107107 (3) one license in each of three first tier coastal or
108108 second tier coastal counties, as those terms are defined by Section
109109 2210.003, Insurance Code, to persons who are licensed to conduct
110110 pari-mutuel wagering on horse and greyhound races in one of those
111111 counties.
112112 Sec. 2004.103. CERTIFICATES REQUIRED. (a) A person may not
113113 provide, maintain, manufacture, distribute, sell, or lease casino
114114 games or casino gaming equipment or services for use in this state
115115 unless the person holds a gaming vendor certificate issued under
116116 this chapter.
117117 (b) A person may not act as a casino gaming manager for a
118118 gaming facility in this state unless the person holds a casino
119119 gaming manager certificate issued under this chapter.
120120 (c) Unless the person holds the required gaming employee
121121 certificate, a person may not act as a gaming employee in any gaming
122122 employee position for which the commission by rule requires a
123123 person to hold a certificate issued under this chapter.
124124 Sec. 2004.104. GAMING VENDOR CERTIFICATE. (a) The
125125 commission shall issue a gaming vendor certificate to an eligible
126126 person with the resources and experience required to provide casino
127127 games or casino gaming equipment and services for casino gaming
128128 operations authorized under this chapter.
129129 (b) The commission by rule shall establish the minimum
130130 qualifications for a gaming vendor certificate to ensure a
131131 competitive market for casino gaming equipment and services and the
132132 availability of reliable casino gaming equipment and services,
133133 consistent with the health and safety of the public.
134134 Sec. 2004.105. CASINO GAMING MANAGER CERTIFICATE. (a) The
135135 commission shall issue a casino gaming manager certificate to an
136136 eligible person with the qualifications and experience required to
137137 manage casino gaming operations under this chapter.
138138 (b) The commission by rule shall establish the minimum
139139 qualifications for a casino gaming manager certificate necessary to
140140 protect the health and safety of the public.
141141 Sec. 2004.106. GAMING EMPLOYEE CERTIFICATE. The commission
142142 by rule and as necessary to protect the health and safety of the
143143 public may establish other gaming employee positions that require a
144144 certificate issued under this chapter to act in those positions.
145145 Sec. 2004.107. BACKGROUND INVESTIGATIONS. Before issuing a
146146 certificate to a person under this chapter, the commission shall
147147 conduct a background investigation that includes obtaining
148148 criminal history record information of the person seeking the
149149 certificate to assist the commission in determining the person's
150150 eligibility or suitability for the certificate.
151151 SUBCHAPTER D. REVENUE
152152 Sec. 2004.151. STATE CASINO GAMING ACCOUNT. The state
153153 casino gaming account is a special account in the general revenue
154154 fund. The account consists of all revenue received by the
155155 commission from casino gaming, fees received under this chapter,
156156 and all money credited to the account from any other fund or source
157157 under law.
158158 Sec. 2004.152. CASINO GAMING TAX. (a) A casino gaming tax
159159 in an amount equal to 18 percent of the gross gaming revenue is
160160 imposed on each holder of a casino gaming operator's license.
161161 (b) The comptroller shall allocate the revenue from the tax
162162 imposed under this section as follows:
163163 (1) the comptroller shall transfer to the catastrophe
164164 reserve trust fund established under Subchapter J, Chapter 2210,
165165 Insurance Code, in an amount sufficient to ensure that the premium
166166 and other revenue of the Texas Windstorm Insurance Association
167167 together with the money allocated under this section equals the
168168 insured losses and operating expenses of the association each state
169169 fiscal year; and
170170 (2) after making a transfer as required by Subdivision
171171 (1), the comptroller shall transfer the remainder of the tax
172172 revenue to the general revenue fund.
173173 (c) The comptroller by rule shall adopt a schedule for the
174174 collection of the tax imposed under this section and the transfer of
175175 tax revenue under Subsection (b).
176176 (d) Title 2, Tax Code, applies to the tax imposed under this
177177 section.
178178 SUBCHAPTER E. OFFENSES; PENALTIES
179179 Sec. 2004.201. MANIPULATION OR TAMPERING. (a) A person
180180 commits an offense if the person intentionally or knowingly
181181 manipulates the outcome of a casino game, the amount of a casino
182182 game prize, or the operation of a casino gaming device by physical,
183183 electronic, or other means, other than in accordance with
184184 commission rules.
185185 (b) An offense under this section is a felony of the third
186186 degree.
187187 Sec. 2004.202. SALE OF CASINO GAME TO PERSON YOUNGER THAN 18
188188 YEARS OF AGE. (a) A casino gaming manager or an employee or agent
189189 of a casino gaming manager commits an offense if the person
190190 intentionally or knowingly:
191191 (1) sells or offers to sell a play of a casino game to
192192 an individual the person knows is younger than 18 years of age or
193193 permits the individual to purchase a play of a casino game; or
194194 (2) pays money or issues a credit slip or other
195195 winnings for a play of a casino game to an individual the person
196196 knows is younger than 18 years of age.
197197 (b) An individual who is younger than 18 years of age
198198 commits an offense if the individual:
199199 (1) purchases a play of a casino game;
200200 (2) accepts money, a credit slip, or other payment of
201201 winnings for play of a casino game; or
202202 (3) falsely represents the individual to be 18 years
203203 of age or older by displaying evidence of age that is false or
204204 fraudulent or misrepresents in any way the individual's age in
205205 order to purchase a play of a casino game.
206206 (c) An offense under Subsection (a) is a Class B
207207 misdemeanor.
208208 (d) An offense under Subsection (b) is a misdemeanor
209209 punishable by a fine not to exceed $250.
210210 Sec. 2004.203. DISCIPLINARY ACTION. (a) The commission
211211 may refuse to issue a license or certificate or may revoke, suspend,
212212 or refuse to renew a license or certificate or may reprimand a
213213 license or certificate holder for a violation of this chapter,
214214 other state law, or a rule of the commission.
215215 (b) If the commission proposes to take action against a
216216 license or certificate holder or applicant under Subsection (a),
217217 the license or certificate holder or applicant is entitled to
218218 notice and a hearing.
219219 (c) The commission may place on probation subject to
220220 reasonable conditions a person whose license or certificate is
221221 suspended under this section.
222222 (d) The commission may summarily suspend a license or
223223 certificate issued under this chapter in the same manner as the
224224 commission is authorized to suspend a license under Section
225225 466.160, Government Code, if the commission determines that the
226226 action is necessary to maintain the integrity, security, or
227227 fairness of casino gaming.
228228 (e) The commission by rule shall develop a system for
229229 monitoring a license or certificate holder's compliance with this
230230 chapter.
231231 Sec. 2004.204. ADMINISTRATIVE PENALTY. (a) The commission
232232 may impose an administrative penalty against a person who violates
233233 this chapter or a rule or order adopted by the commission under this
234234 chapter in the same manner as the commission is authorized to impose
235235 an administrative penalty under Subchapter M, Chapter 2001.
236236 (b) The amount of the administrative penalty may not exceed
237237 $1,000 for each violation. Each day a violation continues or occurs
238238 may be considered a separate violation for purposes of imposing a
239239 penalty.
240240 (c) In determining the amount of the penalty, the executive
241241 director shall consider:
242242 (1) the seriousness of the violation, including the
243243 nature, circumstances, extent, and gravity of the violation;
244244 (2) the history of previous violations;
245245 (3) the amount necessary to deter future violations;
246246 (4) efforts to correct the violation; and
247247 (5) any other matter that justice may require.
248248 (d) The notice, hearing, and appeal for an administrative
249249 penalty assessed under this section shall be provided or conducted
250250 in the same manner as notice, hearing, and appeals are provided or
251251 conducted under Subchapter M, Chapter 2001.
252252 Sec. 2004.205. CIVIL PENALTY. (a) A person who violates
253253 this chapter or a rule adopted by the commission under this chapter
254254 is liable to the state for a civil penalty not to exceed $5,000 for
255255 each day of violation.
256256 (b) At the request of the commission, the attorney general
257257 shall bring an action to recover a civil penalty authorized by this
258258 section. The attorney general may recover reasonable expenses,
259259 including attorney's fees, incurred in recovering the civil
260260 penalty.
261261 SECTION 2. Section 411.108(a-1), Government Code, is
262262 amended to read as follows:
263263 (a-1) The Texas Lottery Commission is entitled to obtain
264264 from the department criminal history record information maintained
265265 by the department that relates to:
266266 (1) a person licensed under Chapter 2001, Occupations
267267 Code, or described by Section 2001.3025, Occupations Code; or
268268 (2) a person holding or applying for a license or
269269 certificate under Chapter 2004, Occupations Code.
270270 SECTION 3. Section 466.024(b), Government Code, is amended
271271 to read as follows:
272272 (b) The commission shall adopt rules prohibiting the
273273 operation of any game using a video lottery machine or video gaming
274274 machine, except in accordance with Chapter 2004, Occupations Code.
275275 SECTION 4. Section 47.02(c), Penal Code, is amended to read
276276 as follows:
277277 (c) It is a defense to prosecution under this section that
278278 the actor reasonably believed that the conduct:
279279 (1) was permitted under Chapter 2001, Occupations
280280 Code;
281281 (2) was permitted under Chapter 2002, Occupations
282282 Code;
283283 (3) was permitted under Chapter 2004, Occupations
284284 Code;
285285 (4) consisted entirely of participation in the state
286286 lottery authorized by [the State Lottery Act (]Chapter 466,
287287 Government Code[)];
288288 (5) [(4)] was permitted under the Texas Racing Act
289289 (Article 179e, Vernon's Texas Civil Statutes); or
290290 (6) [(5)] consisted entirely of participation in a
291291 drawing for the opportunity to participate in a hunting, fishing,
292292 or other recreational event conducted by the Parks and Wildlife
293293 Department.
294294 SECTION 5. Section 47.09, Penal Code, is amended by
295295 amending Subsection (a) and adding Subsection (c) to read as
296296 follows:
297297 (a) It is a defense to prosecution under this chapter that
298298 the conduct:
299299 (1) was authorized under:
300300 (A) Chapter 2001, Occupations Code;
301301 (B) Chapter 2002, Occupations Code; [or]
302302 (C) Chapter 2004, Occupations Code; or
303303 (D) the Texas Racing Act (Article 179e, Vernon's
304304 Texas Civil Statutes);
305305 (2) consisted entirely of participation in the state
306306 lottery authorized by Chapter 466, Government Code; or
307307 (3) was a necessary incident to the operation of the
308308 state lottery and was directly or indirectly authorized by:
309309 (A) Chapter 466, Government Code;
310310 (B) the lottery division of the Texas Lottery
311311 Commission;
312312 (C) the Texas Lottery Commission; or
313313 (D) the director of the lottery division of the
314314 Texas Lottery Commission.
315315 (c) Subsection (a)(1)(C) applies to a person manufacturing,
316316 possessing, or operating a gambling device under a license or
317317 certificate under Chapter 2004, Occupations Code.
318318 SECTION 6. Chapter 47, Penal Code, is amended by adding
319319 Section 47.095 to read as follows:
320320 Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
321321 a defense to prosecution under this chapter that a person sells,
322322 leases, transports, possesses, stores, or manufactures a gambling
323323 device with the authorization of the Texas Lottery Commission under
324324 Chapter 2004, Occupations Code, for transportation in interstate or
325325 foreign commerce.
326326 SECTION 7. (a) As soon as practicable after the effective
327327 date of this Act, the Texas Lottery Commission shall adopt the rules
328328 necessary to implement casino gaming in accordance with Chapter
329329 2004, Occupations Code, as added by this Act.
330330 (b) The Texas Lottery Commission may adopt initial rules for
331331 purposes of implementing casino gaming in accordance with Chapter
332332 2004, Occupations Code, as added by this Act, that expire not later
333333 than May 1, 2016. Chapter 2001, Government Code, does not apply to
334334 the adoption of those rules. This subsection expires June 1, 2016.
335335 SECTION 8. This Act takes effect December 1, 2015, but only
336336 if the constitutional amendment authorizing the legislature to
337337 authorize the operation of casino games in certain areas of this
338338 state by licensed persons to provide additional money for residual
339339 windstorm insurance coverage in the coastal areas is approved by
340340 the voters. If that amendment is not approved by the voters, this
341341 Act has no effect.