Texas 2017 - 85th Regular

Texas House Bill HB4136 Compare Versions

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11 85R9193 GCB-D
22 By: Gutierrez H.B. No. 4136
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the operation of casino games at 12 casinos in this
88 state by licensed persons in counties that have approved casino
99 gaming; requiring occupational licenses or certifications;
1010 creating criminal offenses and providing other penalties;
1111 authorizing fees.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Subtitle A, Title 13, Occupations Code, is
1414 amended by adding Chapter 2006 to read as follows:
1515 CHAPTER 2006. CASINO GAMING
1616 SUBCHAPTER A. GENERAL PROVISIONS
1717 Sec. 2006.001. DEFINITIONS. In this chapter:
1818 (1) "Casino game" means any game of chance, including
1919 a game of chance in which the outcome may be partially determined by
2020 skill or ability, that involves the making of a bet, as defined by
2121 Section 47.01, Penal Code.
2222 (2) "Casino gaming" means the conduct of casino games
2323 authorized under this chapter.
2424 (3) "Casino gaming manager" means a person certified
2525 under this chapter to manage casino gaming operations at a location
2626 authorized under this chapter to conduct casino gaming in this
2727 state.
2828 (4) "Commission" means the Texas Lottery Commission.
2929 (5) "Executive director" means the executive director
3030 of the commission.
3131 (6) "Gaming vendor" means a person licensed under this
3232 chapter to provide, maintain, manufacture, distribute, sell, or
3333 lease casino gaming equipment and services to a person authorized
3434 to operate casino gaming in this state.
3535 Sec. 2006.002. APPLICABILITY OF FEDERAL LAW. All shipments
3636 of casino gaming equipment and devices into, out of, or within this
3737 state in connection with casino gaming are legal shipments of the
3838 devices and are exempt from the provisions of 15 U.S.C. Sections
3939 1171-1178 prohibiting the transportation of gambling devices.
4040 SUBCHAPTER B. ADMINISTRATION
4141 Sec. 2006.051. POWERS AND DUTIES OF COMMISSION AND
4242 EXECUTIVE DIRECTOR. (a) The commission and executive director
4343 have broad authority and shall exercise strict control over and
4444 closely monitor casino gaming in this state to protect the public
4545 health, welfare, and safety and ensure integrity, security,
4646 honesty, and fairness in the conduct and administration of casino
4747 gaming.
4848 (b) The executive director may contract with or employ a
4949 person to perform a function, activity, or service in connection
5050 with casino gaming as prescribed by the executive director.
5151 (c) The commission shall as necessary to protect the public
5252 health and safety:
5353 (1) monitor casino gaming operations on a continuing
5454 basis;
5555 (2) establish standards for:
5656 (A) the operation of casino gaming;
5757 (B) the provision of casino gaming equipment and
5858 services; and
5959 (C) the establishment and maintenance of casino
6060 gaming facilities; and
6161 (3) inspect and examine all casino gaming facilities,
6262 equipment, services, records, and operations to ensure compliance
6363 with the standards established by the commission.
6464 Sec. 2006.052. RULES AND PROCEDURES. (a) The commission
6565 shall adopt all rules necessary to supervise casino gaming in this
6666 state, administer this chapter, and ensure the security of casino
6767 gaming operations in this state.
6868 (b) The commission shall establish procedures for the
6969 approval, monitoring, and inspection of casino gaming operations as
7070 necessary to protect the public health, welfare, and safety and the
7171 integrity of this state and to prevent financial loss to this state.
7272 Sec. 2006.053. FEES. The commission shall establish the
7373 application, certification, and certification renewal fees for
7474 each type of certification issued under this chapter in amounts
7575 reasonable and necessary to cover the state's costs incurred in the
7676 administration of this chapter and the regulation of casino gaming.
7777 Sec. 2006.054. ANNUAL REPORT. The commission shall make an
7878 annual report to the governor, the comptroller, and the legislature
7979 that provides a summary of casino gaming revenues and expenses for
8080 the state fiscal year preceding the report. The report must be in
8181 the form and reported at the time provided by the General
8282 Appropriations Act.
8383 Sec. 2006.055. INVESTIGATIONS. The commission may
8484 investigate a violation or alleged violation of:
8585 (1) this chapter by any person; or
8686 (2) the penal laws of this state in connection with the
8787 administration of this chapter, the regulation of casino gaming, or
8888 the conduct of casino gaming by a person authorized to operate
8989 casino gaming under this chapter.
9090 SUBCHAPTER C. CASINO GAMING
9191 Sec. 2006.101. CASINO GAMING OPERATOR LICENSE. (a) A
9292 person may not conduct casino gaming in this state unless:
9393 (1) the person holds a casino gaming operator license
9494 issued under this chapter; and
9595 (2) the casino is in a county in which a majority of
9696 the voters of the county voted in favor of authorizing casino gaming
9797 in that county in accordance with Subchapter F of this chapter or
9898 Section 47a(b), Article III, Texas Constitution.
9999 (b) A person issued a casino gaming operator license under
100100 this chapter may operate only one casino under the license.
101101 (c) The commission may not issue more than 12 casino gaming
102102 operator licenses under this chapter as provided by Section 47a,
103103 Article III, Texas Constitution.
104104 Sec. 2006.102. CERTIFICATES REQUIRED. (a) A person may not
105105 provide, maintain, manufacture, distribute, sell, or lease casino
106106 games or casino gaming equipment or services for use in this state
107107 unless the person holds a gaming vendor certificate issued under
108108 this chapter.
109109 (b) A person may not act as a casino gaming manager for a
110110 gaming facility in this state unless the person holds a casino
111111 gaming manager certificate issued under this chapter.
112112 (c) Unless the person holds the required gaming employee
113113 certificate, a person may not act as a gaming employee in any gaming
114114 employee position for which the commission by rule requires a
115115 person to hold a certificate issued under this chapter.
116116 Sec. 2006.103. GAMING VENDOR CERTIFICATE. (a) The
117117 commission shall issue a gaming vendor certificate to an eligible
118118 person with the resources and experience required to provide casino
119119 games or casino gaming equipment and services for casino gaming
120120 operations authorized under this chapter.
121121 (b) The commission by rule shall establish the minimum
122122 qualifications for a gaming vendor certificate to ensure a
123123 competitive market for casino gaming equipment and services and the
124124 availability of reliable casino gaming equipment and services,
125125 consistent with the health and safety of the public.
126126 Sec. 2006.104. CASINO GAMING MANAGER CERTIFICATE. (a) The
127127 commission shall issue a casino gaming manager certificate to an
128128 eligible person with the qualifications and experience required to
129129 manage casino gaming operations under this chapter.
130130 (b) The commission by rule shall establish the minimum
131131 qualifications for a casino gaming manager certificate necessary to
132132 protect the health and safety of the public.
133133 Sec. 2006.105. GAMING EMPLOYEE CERTIFICATE. The commission
134134 by rule and as necessary to protect the health and safety of the
135135 public may establish other gaming employee positions that require a
136136 certificate issued under this chapter to act in those positions.
137137 Sec. 2006.106. BACKGROUND INVESTIGATIONS. Before issuing a
138138 certificate to a person under this chapter, the commission shall
139139 conduct a background investigation that includes obtaining
140140 criminal history record information of the person seeking the
141141 certificate to assist the commission in determining the person's
142142 eligibility or suitability for the certificate.
143143 SUBCHAPTER D. REVENUE
144144 Sec. 2006.151. STATE CASINO GAMING ACCOUNT. The state
145145 casino gaming account is a special account in the general revenue
146146 fund. The account consists of all revenue received by the
147147 commission from casino gaming, fees received under this chapter,
148148 and all money credited to the account from any other fund or source
149149 under law.
150150 SUBCHAPTER E. OFFENSES; PENALTIES
151151 Sec. 2006.201. MANIPULATION OR TAMPERING. (a) A person
152152 commits an offense if the person intentionally or knowingly
153153 manipulates the outcome of a casino game, the amount of a casino
154154 game prize, or the operation of a casino gaming device by physical,
155155 electronic, or other means, other than in accordance with
156156 commission rules.
157157 (b) An offense under this section is a felony of the third
158158 degree.
159159 Sec. 2006.202. SALE OF CASINO GAME TO PERSON YOUNGER THAN 18
160160 YEARS OF AGE. (a) A casino gaming manager or an employee or agent
161161 of a casino gaming manager commits an offense if the person
162162 intentionally or knowingly:
163163 (1) sells or offers to sell a play of a casino game to
164164 an individual the person knows is younger than 18 years of age or
165165 allows the individual to purchase a play of a casino game; or
166166 (2) pays money or issues a credit slip or other
167167 winnings for a play of a casino game to an individual the person
168168 knows is younger than 18 years of age.
169169 (b) An individual who is younger than 18 years of age
170170 commits an offense if the individual:
171171 (1) purchases a play of a casino game;
172172 (2) accepts money, a credit slip, or other payment of
173173 winnings for play of a casino game; or
174174 (3) falsely represents the individual to be 18 years
175175 of age or older by displaying evidence of age that is false or
176176 fraudulent or misrepresents in any way the individual's age in
177177 order to purchase a play of a casino game.
178178 (c) An offense under Subsection (a) is a Class B
179179 misdemeanor.
180180 (d) An offense under Subsection (b) is a misdemeanor
181181 punishable by a fine not to exceed $250.
182182 Sec. 2006.203. DISCIPLINARY ACTION. (a) The commission
183183 may refuse to issue a license or certificate or may revoke, suspend,
184184 or refuse to renew a license or certificate or may reprimand a
185185 license or certificate holder for a violation of this chapter,
186186 other state law, or a commission rule.
187187 (b) If the commission proposes to take action against a
188188 license or certificate holder or applicant under Subsection (a),
189189 the license or certificate holder or applicant is entitled to
190190 notice and a hearing.
191191 (c) The commission may place on probation subject to
192192 reasonable conditions a person whose license or certificate is
193193 suspended under this section.
194194 (d) The commission may summarily suspend a license or
195195 certificate issued under this chapter in the same manner as the
196196 commission is authorized to suspend a license under Section
197197 466.160, Government Code, if the commission determines that the
198198 action is necessary to maintain the integrity, security, or
199199 fairness of casino gaming.
200200 (e) The commission by rule shall develop a system for
201201 monitoring a license or certificate holder's compliance with this
202202 chapter.
203203 Sec. 2006.204. ADMINISTRATIVE PENALTY. (a) The commission
204204 may impose an administrative penalty against a person who violates
205205 this chapter or a rule or order adopted by the commission under this
206206 chapter in the same manner as the commission is authorized to impose
207207 an administrative penalty under Subchapter M, Chapter 2001.
208208 (b) The amount of the administrative penalty may not exceed
209209 $1,000 for each violation. Each day a violation continues or occurs
210210 may be considered a separate violation for purposes of imposing a
211211 penalty.
212212 (c) In determining the amount of the penalty, the executive
213213 director shall consider:
214214 (1) the seriousness of the violation, including the
215215 nature, circumstances, extent, and gravity of the violation;
216216 (2) the history of previous violations;
217217 (3) the amount necessary to deter future violations;
218218 (4) efforts to correct the violation; and
219219 (5) any other matter that justice may require.
220220 (d) The notice, hearing, and appeal for an administrative
221221 penalty assessed under this section shall be provided or conducted
222222 in the same manner as notice, hearing, and appeals are provided or
223223 conducted under Subchapter M, Chapter 2001.
224224 Sec. 2006.205. CIVIL PENALTY. (a) A person who violates
225225 this chapter or a rule adopted by the commission under this chapter
226226 is liable to the state for a civil penalty not to exceed $5,000 for
227227 each day of violation.
228228 (b) At the request of the commission, the attorney general
229229 shall bring an action to recover a civil penalty authorized by this
230230 section. The attorney general may recover reasonable expenses,
231231 including attorney's fees, incurred in recovering the civil
232232 penalty.
233233 SUBCHAPTER F. LOCAL OPTION ELECTIONS
234234 Sec. 2006.251. ORDERING LOCAL OPTION ELECTION. The
235235 commissioners court of a county may at any time order an election to
236236 legalize casino gaming under this chapter in that county. The
237237 commissioners court shall order and hold an election to legalize
238238 casino gaming under this chapter in the county if the commissioners
239239 court is presented with a petition that meets the requirements of
240240 Section 2006.252 and is certified as valid under Section 2006.253.
241241 Sec. 2006.252. PETITION REQUIREMENTS. (a) A petition for a
242242 legalization election must include a statement substantially as
243243 follows before the space reserved for signatures on each page:
244244 "This petition is to require that an election be held in (name of
245245 county) to legalize casino gaming in (name of county)."
246246 (b) A petition is valid only if it is signed by registered
247247 voters of the county in a number that is not less than three percent
248248 of the total number of votes cast for governor by qualified voters
249249 of the county in the most recent gubernatorial general election.
250250 (c) Each voter must enter beside the voter's signature the
251251 date the voter signs the petition. A signature may not be counted
252252 as valid if the date of signing is earlier than the 90th day before
253253 the date the petition is submitted to the commissioners court.
254254 (d) Each voter must provide on the petition the voter's
255255 current voter registration number, printed name, and residence
256256 address, including zip code.
257257 Sec. 2006.253. VERIFICATION. (a) Not later than the fifth
258258 day after the date a petition for an election under this chapter is
259259 received in the office of the commissioners court, the
260260 commissioners court shall submit the petition for verification to
261261 the county clerk.
262262 (b) The county clerk shall determine whether the petition is
263263 signed by the required number of registered voters of the county.
264264 Not later than the 30th day after the date the petition is submitted
265265 to the clerk for verification, the clerk shall certify in writing to
266266 the commissioners court whether the petition is valid or invalid.
267267 If the clerk determines that the petition is invalid, the clerk
268268 shall state the reasons for that determination.
269269 Sec. 2006.254. ORDERING ELECTION. If the county clerk
270270 certifies that a petition is valid, not later than the 30th day
271271 after the date of certification, the commissioners court shall
272272 order that an election be held in the county on the next uniform
273273 election date under Section 41.001, Election Code, that allows
274274 sufficient time to comply with applicable provisions of law,
275275 including Section 3.005, Election Code. The commissioners court
276276 shall state in the order the issue to be voted on in the election.
277277 The county clerk shall notify the commission by certified mail,
278278 return receipt requested, that an election has been ordered.
279279 Sec. 2006.255. BALLOT PROPOSITION. The ballot in a
280280 legalization election shall be printed to provide for voting for or
281281 against the proposition: "Legalizing casino gaming within (name of
282282 county)."
283283 Sec. 2006.256. ELECTION RESULTS. (a) If the majority of
284284 the votes cast in a legalization election favor the legalization of
285285 casino gaming, casino gaming authorized under this chapter is
286286 authorized within the county holding the election effective on the
287287 10th day after the date of the election.
288288 (b) The commissioners court of a county in which a
289289 legalization election has been held shall give written notice of
290290 the results of the election to the commission not later than the
291291 third day after the date the election is canvassed.
292292 (c) If less than a majority of the votes cast in a
293293 legalization election in any county are cast in favor of the
294294 legalization of casino gaming, casino gaming is not authorized in
295295 the county, and a subsequent election on the issue may not be held
296296 in the county before the corresponding uniform election date one
297297 year after the date of the election.
298298 (d) If less than a majority of the votes cast in two
299299 consecutive legalization elections within any county are cast in
300300 favor of the legalization of casino gaming, casino gaming is not
301301 authorized in the county, and a subsequent election on the issue may
302302 not be held in the county before the corresponding uniform election
303303 date five years after the date of the second election.
304304 SECTION 2. Section 411.108(a-1), Government Code, is
305305 amended to read as follows:
306306 (a-1) The Texas Lottery Commission is entitled to obtain
307307 from the department criminal history record information maintained
308308 by the department that relates to:
309309 (1) a person licensed under Chapter 2001, Occupations
310310 Code, or described by Section 2001.3025, Occupations Code; or
311311 (2) a person holding or applying for a license or
312312 certificate under Chapter 2006, Occupations Code.
313313 SECTION 3. Section 466.024(b), Government Code, is amended
314314 to read as follows:
315315 (b) The commission shall adopt rules prohibiting the
316316 operation of any game using a video lottery machine or video gaming
317317 machine, except in accordance with Chapter 2006, Occupations Code.
318318 SECTION 4. Section 47.02(c), Penal Code, is amended to read
319319 as follows:
320320 (c) It is a defense to prosecution under this section that
321321 the actor reasonably believed that the conduct:
322322 (1) was permitted under Chapter 2001, Occupations
323323 Code;
324324 (2) was permitted under Chapter 2002, Occupations
325325 Code;
326326 (3) was permitted under Chapter 2004, Occupations
327327 Code;
328328 (4) was permitted under Chapter 2006, Occupations
329329 Code;
330330 (5) consisted entirely of participation in the state
331331 lottery authorized by the State Lottery Act (Chapter 466,
332332 Government Code);
333333 (6) [(5)] was permitted under the Texas Racing Act
334334 (Article 179e, Vernon's Texas Civil Statutes); or
335335 (7) [(6)] consisted entirely of participation in a
336336 drawing for the opportunity to participate in a hunting, fishing,
337337 or other recreational event conducted by the Parks and Wildlife
338338 Department.
339339 SECTION 5. Section 47.09, Penal Code, is amended by
340340 amending Subsection (a) and adding Subsection (c) to read as
341341 follows:
342342 (a) It is a defense to prosecution under this chapter that
343343 the conduct:
344344 (1) was authorized under:
345345 (A) Chapter 2001, Occupations Code;
346346 (B) Chapter 2002, Occupations Code;
347347 (C) Chapter 2004, Occupations Code; [or]
348348 (D) Chapter 2006, Occupations Code; or
349349 (E) the Texas Racing Act (Article 179e, Vernon's
350350 Texas Civil Statutes);
351351 (2) consisted entirely of participation in the state
352352 lottery authorized by Chapter 466, Government Code; or
353353 (3) was a necessary incident to the operation of the
354354 state lottery and was directly or indirectly authorized by:
355355 (A) Chapter 466, Government Code;
356356 (B) the lottery division of the Texas Lottery
357357 Commission;
358358 (C) the Texas Lottery Commission; or
359359 (D) the director of the lottery division of the
360360 Texas Lottery Commission.
361361 (c) Subsection (a)(1)(D) applies to a person manufacturing,
362362 possessing, or operating a gambling device under a license or
363363 certificate under Chapter 2006, Occupations Code.
364364 SECTION 6. Chapter 47, Penal Code, is amended by adding
365365 Section 47.095 to read as follows:
366366 Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
367367 a defense to prosecution under this chapter that a person sells,
368368 leases, transports, possesses, stores, or manufactures a gambling
369369 device with the authorization of the Texas Lottery Commission under
370370 Chapter 2006, Occupations Code, for transportation in interstate or
371371 foreign commerce.
372372 SECTION 7. (a) As soon as practicable after the effective
373373 date of this Act, the Texas Lottery Commission shall adopt the rules
374374 necessary to implement casino gaming in accordance with Chapter
375375 2006, Occupations Code, as added by this Act.
376376 (b) The Texas Lottery Commission may adopt initial rules for
377377 purposes of implementing casino gaming in accordance with Chapter
378378 2006, Occupations Code, as added by this Act, that expire not later
379379 than May 1, 2018. Chapter 2001, Government Code, does not apply to
380380 the adoption of those rules. This subsection expires June 1, 2018.
381381 SECTION 8. This Act takes effect December 1, 2017, but only
382382 if the constitutional amendment authorizing the legislature to
383383 authorize the operation of casino games at 12 casinos in this state
384384 by licensed persons in counties that have approved casino gaming is
385385 approved by the voters. If that amendment is not approved by the
386386 voters, this Act has no effect.